sectoral economic costs and benefits of ghg mitigation - IPCC

Energy Intensive Industries
Environmental performance
There are two major sources for CO 2 emissions in the sector. These are: (1) emissions from
primary fuels for production of steam and captive power, and (2) emission at the central power
stations for generating the grid electricity consumed by the sector. The total estimated CO 2
emissions from the pulp and paper industry is shown in table 1.
Table 1 CO 2 emissions from the pulp and paper industry
Year
Emission
from coal
Emission form
imported electricity
(ktonne)
Total
emission
(ktonne)
Production
(million
tonne )
Specific CO 2
emission(t/t)
1981-82 4662.29 2645.63 7307.92 1.70 4.30
1982-83 5359.45 2125.18 7484.63 1.84 4.08
1983-84 5446.60 2472.15 7918.74 1.98 3.99
1984-85 5599.10 3014.29 8613.39 2.14 4.02
1985-86 6165.55 3161.45 9327.00 2.31 4.03
1986-87 5795.18 2992.60 8787.78 2.50 3.52
1987-88 5773.39 2645.63 8419.02 2.70 3.12
1988-89 6143.76 2298.66 8442.42 2.91 2.90
1989-90 7211.95 1863.32 9075.27 3.23 2.81
1990-91 6949.86 2142.98 9092.84 3.30 2.76
1991-92 6734.17 2081.81 8815.98 3.36 2.62
1992-93 6515.00 1934.63 8449.62 3.55 2.38
1993-94 6689.51 2362.99 9052.50 3.79 2.39
Costs and benefits of CO 2 mitigation
The energy and the environment performance of the Indian pulp and paper industry do not
compare well with the world standards. The specific energy use is 50% more compared to
Japanese industry, which has a similar pulp to paper ratio. Hence, the sector offers huge potential
for energy saving vis-à-vis CO 2 reduction opportunities through adoption of modern technologies
and processes. The technological options, however, are highly capital intensive, more so keeping
in view the financial health of the industry sector in general. The sector offers enormous potential
to global players to invest and reap significant returns through introduction of latest process
technologies. Table 2 gives the energy savings possibility in the sector by the adoption of such
measures. The CO 2 emission reduction and the cost per tonne of CO 2 abated are also presented in
the table.
The following main observations can be made from table 3.
• The total energy saving by adopting all the measures is 16.06 PJ, which is 22% of the total
energy consumed by the sector.
• The CO 2 avoided by adoption of above measures is 1901.34 ktonne, which is 21% of the
total CO 2 emissions from primary energy sources.
• For some measures like installation of DC drives in place of steam turbines, installation of
variable speed drives etc., there is a negative cost per tonne of CO 2 abated due to high energy
savings which offsets the annualised capital and maintenance costs.
Case study II
Cement industry
Indian cement industry is the 4 th largest in the world. Around 87% of the total installed capacity
of 109 million tonnes is made up by plants which are having capacities of more than 600 tpd. The
average capacity utilisation of plants stands at 82%. Technology for cement manufacture has
undergone a sea change over the last few decades. The plants, which were predominantly wet
process based in the 1960s, have changed to modern dry process with suspension preheater and
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