sectoral economic costs and benefits of ghg mitigation - IPCC

Energy Intensive Industries
13% to as high as 25%, as against an achievable figure of 9-10%. Meaningful comparison of
performance of the industry with their counterparts in industrialised nations is not possible
because of such differences as the scale of operations, the quality of coke etc. The technological
backwardness has resulted in inefficient resource use leading to increase in production cost and
reduced profits for the small-scale foundry units.
Environment performance
It is estimated that the industry emits about 431.9 ktonne of CO 2 annually. Improving the coke
use efficiency could reduce a sizeable proportion of this emission. In addition, many clusters of
foundry industry are also being faced with the pressure to comply with statutory environmental
standards. The majority of the clusters evolved in pre-independence period and at a time when
environmental concerns were not woven into production process. However, over a period of
time, consciousness has gradually built up about environment in general and the pollution
generated by industrial activities in particular. The problem presently being faced by the industry
is that there are no off-the-shelf pollution control systems that guarantee meeting the statutory
standards. The industry, not being aware of the most techno-economically viable solutions to
comply with the standards, is left at the mercy of unscrupulous local consultants who some time
misguide the enterprise leading to very high cost ineffective solutions.
Costs and benefits of CO 2 mitigation
For the small-scale foundry industry, a detailed list of various options is not presented as the
implementability of any option in the small-scale foundry industry is difficult and depends on
factors like acceptability of the option by the industry (through proven results, generally through
a demonstration project), ability of the industry to manage and adapt the technological change
etc., which are more of a problem in small-scale owing to their lack of knowledge and awareness.
The technological option presented in this paper (which has a pronounced effect on both energy
efficiency and CO 2 reduction) is based on the findings of an action research project being
undertaken by TERI in the sector. The option presented is based on an extensive analysis of the
sector, and a discussion with various stakeholders regarding the applicability of this option.
The initiative undertaken by TERI in the foundry sector includes design development and
demonstration of an improved melting furnace (cupola) and pollution control system. The
technological option pursued is the divided blast cupola (DBC), which is the most attractive
option for obtaining economic operation from a modest investment. Results indicate that the
demonstration cupola was significantly more energy efficient with coke savings ranging from
33% to 65% compared to average small-scale foundry units in India. The cost and benefits of the
demonstrated technology are presented in table 5.
Table 5 Cost and benefit of the demonstrated technology
Technological option
Properly designed divided blast
cupola (DBC)
Specific
cost
($/GJ
Energy
savings
(PJ)
CO 2
avoided
(ktonne)
Cost of CO 2 avoided
($/ton of CO 2 )
-2.66 5.27 501.1 -28
Conclusions
The Indian industry sector is highly energy intensive and offers huge potential for energy
efficiency improvement. The sector is an ideal candidate where, through rational use of energy,
substantial CO 2 abatement is possible. Among large/medium sized industries, the industries that
are most energy intensive are: cement, pulp and paper, fertiliser, textiles, iron and steel,
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