Energy Efficiency in Saudi Cement Industry

Saudi Arabia is the largest construction market in the Middle East, with large development projects under way and many more in the planning stage. The cement industry in the country is evolving rapidly and is expected to reach annual clinker production of 70 million tonnes in 2013 from current figure of 60 million tonnes per year. The cement industry is one of the highest energy-intensive industries in the world, with fuel and energy costs typically representing 30-40% of total production costs. On an average, the specific electrical energy consumption typically ranges between 90 and 130 kWh per tonne of cement. Keeping in view the huge energy demand of the cement industry, the Saudi Arabian government has been making efforts to reduce the energy consumption in the country towards a more sustainable.

Energy Demand in Cement Production

The theoretical fuel energy demand for cement clinker production is determined by the energy required for the chemical/mineralogical reactions (1,700 to 1,800 MJ/tonne clinker) and the thermal energy needed for raw material drying and pre-heating. Modern cement plants which were built within the last decade have low energy consumption compared to older plants.  The actual fuel energy use for different kiln systems is in the following ranges (MJ/tonne clinker):

  • 3,000 – 3,800 for dry process, multi-stage (3 – 6 stages) cyclone preheater and precalcining kilns,
  • 3,100 – 4,200 for dry process rotary kilns equipped with cyclone preheaters,
  • 3,300 – 4,500 for semi-dry/semi-wet processes (e.g. Lepol-kilns),
  • Up to 5,000 for dry process long kilns,
  • 5,000 – 6,000 for wet process long kilns and
  • 3,100–6,500 for shaft kilns.

Energy Efficiency in Cement Industry

With new built, state-of-the-art cement plants, usually all technical measures seem to be implemented towards low energy consumption. So, how to reduce it further?

Energy efficiency is based on the following three pillars

  • Technical optimization
  • Alternative raw materials for cement and clinker production
  • Alternative fuels

In Europe, the new energy efficiency directive from 2011 intends to reduce the energy consumption of the overall industry by 20%, achieving savings of 200billion Euros at the energy bill and with the goal to create 2 million new jobs within Europe. This approach will have a significant influence also on the cement industry. Saving 20% of the energy consumption is a challenging goal, especially for plants with state-of-the-art technology.

In older plants modernizations in the fields of grinding, process control and process prediction can, if properly planned and installed, reduce the electricity consumption – sometimes in a two digit number.

Alternative Fuels

Alternative fuels, such as waste-derived fuels or RDF, bear further energy saving potential. The substitution of fossil fuel by alternative sources of energy is common practice in the European cement industry.The German cement industry, for example, substitutes approximately 61% of their fossil fuel demand. The European cement industry reaches an overall substitution rate of at least ca. 20%.

Typical “alternative fuels” available in Saudi Arabia are municipal solid wastes, agro-industrial wastes, industrial wastes and some amount of crop residues. To use alternative or waste-derived fuels, such as municipal solid wastes, dried sewage sludges, drilling wastes etc., a regulatory base has to be developed which sets

  • Types of wastes/alternative fuels,
  • Standards for the production of waste-derived fuels,
  • Emission standards and control mechanism while using alternative fuels and
  • Standards for permitting procedures.

Alternative Raw Materials

The reduction of clinker portion in cement affords another route to reduce energy consumption. In particular, granulated blast furnace slags or even limestone have proven themselves as substitutes in cement production, thus reducing the overall energy consumption.

To force the use of alternative raw materials within the cement industry, also – and again –standards have to be set, where

  • Types of wastes, by-products and other secondary raw materials are defined,
  • Standards for the substitution are set,
  • Guidelines for processing are developed,
  • Control mechanisms are defined.

Conclusions

To reduce the energy consumption, an energy efficiency program, focusing on “production-related energy efficiency” has to be developed. Substantial potential for energy efficiency improvement exists in the cement industry and in individual plants. A portion of this potential will be achieved as part of (natural) modernization and expansion of existing facilities, as well as construction of new plants in particular regions. Still, a relatively large potential for improved energy management practices exists and can be exhausted by determined approaches.

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Saudi Arabia’s Road to Fuel Economy

Saudi Arabia is a private car-oriented society, and has one of the world’s highest per capita fuel consumption in the transportation sector. This is primarily due to lack of efficient public transportation and current fuel subsidy policy. The country is witnessing an escalating demand on its domestic energy needs and it is imperative on policymakers to devise policies for conservation of energy resources and reduction of GHGs emissions in the transportation sector. Adapting energy-efficient fuel standards will help Saudi Arabia country to bridge the gap with the developed countries. The enforcement mechanism for the establishment of Saudi fuel economy standards will lead to achievement of strategic energy conservation objectives.

Energy intensity in Saudi Arabia has set high records reflecting the growth of the economy and the increasing demand on fossil energy in the domestic use and heavy industries operations. Energy intensity in the Kingdom was twice the world average in 2010 and with unbalanced growth between energy use and economy, this should rang the bell for the Saudi government to adapt a bundle of energy policies that curtail the increasing growth of energy demand domestically.

CAFE Standards

Corporate Average Fuel Efficiency standard (CAFE) was first enacted after the Energy Policy and Conservation Act of 1975 in the USA. That policy was due to energy security concerns and environmental objectives. The USA current standard is 27.5 mpg for passenger’s vehicle and 20.7mpg for light trucks. Similarly to the USA CAFE objectives, the Kingdom approach is to reduce gasoline consumption and induce conservation and increasing efficiency of the light-duty vehicles (LDV).The proposed standard mandates require that all new and used passenger vehicles and light trucks either imported or locally manufacture should comply with new fuel standards. The framework for this law to be effective will start by January 1, 2016 and fully phased out by December 31, 2025. The Saudi Energy Efficiency Center (SEEC) and other entities including the Saudi Standards, Metrology and Quality Organization, Saudi Customs, and Ministry of Commerce and Industry have been asked to monitor the implementation of the CAFE standards.

The purpose of the fuel standards is to commit the light-duty vehicle manufactures sell their cars in the kingdom and comply with the Saudi CAFE. This standard has a double dividends from the automobile manufacturer side its incentivize them to introduce the up-to-date efficiency technologies and cut the supply the low-efficient technologies to the Saudi market. The Saudi CAFE standard targets an improving in the overall fuel economy with an average of 4% annually. This would lift up the Kingdom’s fuel economy LDVs from its current level of 12 km per liter to 19 km per liter by 2025.

The Saudi CAFE standard shows a focused strategy to setting long-term standards over the course of a given time frame and its committed efforts to manage both newly imported or used LDVs. According to Prince Abdulaziz bin Salman al-Saud, the Saudi transportation sector consumes about 23 percent of the total energy in the kingdom and about 12 million vehicles consume about 811,000 barrels of gasoline and diesel per day. Moreover, there are 7 LDVs entering the market every year with a forecast to reach 20 million by 2030.

Conclusion

Saudi Arabia’s CAFE standard is a means to stimulate energy efficiency and encourage resource conservation and contribute to the environment. This will enable consumers to save money, reduce fossil fuel consumption and strengthen the Kingdom’s role in the fight against climate change.

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Energy Conservation in Bahrain

bahrain-energyBahrain has one of the highest energy consumption rates in the world. The country uses almost three times more energy per person than the world average. Based on 2014 statistics, the country consumes 11,500 kWh of energy per capita compared with the global average of 3,030 kWh. The country is witnessing high population growth rate, rapid urbanization, industrialization and commercialization with more visitors coming in, causing fast growing domestic energy demand and is posing a major challenge for energy security.

The Government is aware of this challenging task and is continuously planning and implementing projects to enhance the energy production to meet with the growing demand. The issue of efficient use of energy, its conservation and sustainability, use of renewable and non-renewable resources is becoming more important to us. The increasing temperatures and warming on the other hand are also causing more need of air-conditioning and use of electrical appliances along with water usage for domestic and industrial purposes. This phenomenon is continuing in Bahrain and other GCC countries since past two decades with high annual electricity and water consumption rates compared with the rest of the world.

Bahrain’s energy requirement is forecast to more than double from the current energy use. The peak system demand will rise from 3,441 MW to around 8,000 MW. While the concerned authorities are planning for induction of more sustainable renewable energy initiatives, we need to understand the energy consumption scenario in terms of costs. With the prices of electricity and water going up again from March 2017 again, it is imperative that we as consumers need to think and adopt small actions and utilize practices that can conserve energy and ultimately cost.

The country has already embarked on the Energy Efficiency Implementation Program to address the challenge of curbing energy demand in the country over the next years. The National Energy Efficiency Action Plan and the National Renewable Energy Action Plan (NREAP) have already been endorsed. The NREAP aims to achieve long-term sustainability for the energy sector by proposing to increase the share of renewable energy to 5 percent by 2020 and 10 percent by 2030.

Per capita energy consumption in Bahrain is among the highest worldwide

Per capita energy conservation in Bahrain is among the highest worldwide

As individuals, we need to audit how much energy we are using and how we can minimize our usage and conserve it. Whenever we save energy, we not only save money, but also reduce the demand for such fossil fuels as coal, oil, and natural gas. Less burning of fossil fuels also means lower emissions of carbon dioxide (CO2), the primary contributor to global warming, and other pollutants. Energy needs to be conserved not only to cut costs but also to preserve the resources for longer use.

Here are few energy conservation tips we need to follow and adopt:

  • Turning off the lights, electrical and electronic gadgets when not in use.
  • Utilizing energy efficient appliances like LED lights, air conditioners, freezers and washing machines.
  • Service, clean or replace AC filters as recommended.
  • Utilizing normal water for washing machine. Use washing machine and dish washer only when the load is full. Avoid using the dryer with long cycles.
  • Select the most energy-efficient models when replacing your old appliances.
  • Buy the product that is sized to your actual needs and not the largest one available.
  • Turn off AC in unoccupied rooms and try to keep the room cool by keeping the curtains.
  • Make maximum use of sunlight during the day.
  • Water heaters/ Geysers consume a lot of energy. Use them to heat only the amount of water that is required.
  • Unplug electronic devices and chargers when they are not in use. Most new electronics use electricity even when switched off.
  • Allow hot food to cool off before putting it in the refrigerator

Sustainability in MENA Cement Industry

The population in the MENA countries has doubled during the last 30 years (from ca. 110m in 1980 to almost 220m in 2010). As per conservative estimates, the rate of urbanisation in the MENA countries will exceed 70% five years from today (average for all developing countries: 54%). The proceeding urbanisation and the population increase involve several problems and challenges for the national governments and also for the cement industry. The cement production of countries in the MENA region has almost tripled during the last 15 years up to approximately 500m tons  Since the start of national revolts and demonstrations in MENA countries in 2011 the problems of especially young Arabs have attracted the attention worldwide.

Environmental problems that accompany a fast growing population and increasing urbanisation are, among others, increasing consumption of energy and raw materials, increasing land use in order to satisfy the increasing food demand, infrastructure development, disposal of increasing amounts of waste and development of sewage systems. Solving these generation spanning problems is a challenging task for the national governments.

Naturally, such high growth rates also affect the cement industry. In the MENA countries it consists of various companies, part of them listed on the stock exchange. A number of cement companies has, partly for cost aspects, responded to the negative consequences of the rapid population growth. The following paragraphs describe the cement industry’s approaches to push a sustainable development in certain sectors. They are partly driven by own responsibility and partly by regulations of the national governments. In this context it should be mentioned that the growth of the cement industry is already partly limited by factors that are directly connected with sustainability and raw material supply.

Although the factors differ from country to country and cannot be generalised, there are a few major concerns, for example:

  • Fuel shortage
  • Dependence on oil
  • Lack of investment in innovations

Let’s have a closer look on the limiting factors and innovation potential based on practical examples.

Saudi Arabia

In many industrialised countries the continuous and tailored supply of the industry with fossil fuels is only a question of price.  But the fact that of all countries, it was cement plants in the own country that repeatedly reported shortages of fossil fuel supply (heavy fuel oil), was certainly an important reason for the government to get closely involved in this matter.

Cement producers in the Kingdom of Saudi Arabia obtain state-subsidised natural gas at a price of US$ 0.75/mmbtu from the state-owned oil company “Saudi Aramco”. Formerly, the cement production costs resulting thereof were on average US$ 28.8/ton of cement (costs in neighbouring countries: Kuwait US$ 59.2/ton, UAE US$ 47.8/ton, Oman US$ 37.0/ton) which made it redundant to deal with the topic of energy. In India, a country with one of the highest energy costs in the world, the production of one ton of cement costs US$ 70.0/ton in 2010.

Due to such low energy prices and a steadily growing demand the production capacities grew constantly. Currently, the industry accounts for approximately 40% of the overall energy demand of the country. Analysts estimate that this demand will even double within the next 15 years. However, it is planned to reduce this disproportionate energy demand of the industry.

Under the patronage of HRH Prince Abdulaziz bin Salman, the state-owned oil company “Saudi Aramco” is developing a so-called “Mandatory Energy Efficiancy Program” (MEEP) for the entire Saudi-Arabian industry. The plan of MEEP is to “establish mandatory policies and regulations with the objective of reducing existing and future energy consumption levels in the industrial sector”.

For the national cement industry this approach implies investments in energy-saving measures. Key points for an energy-efficient industry are identified as

  • Use of alternative raw materials
  • Use of alternative fuels
  • Training and education in energy efficiency

As the use of alternative fuels and raw materials is not yet common in the Kingdom of Saudi Arabia, guidelines and a regulatory framework have to be defined which set standards for the use of alternative or waste-derived fuels like municipal solid wastes, dried sewage sludge, drilling wastes and others. It has to include:

  • Types of wastes and alternative fuels that may be used by the cement industry
  • Standards for the production of waste-derived fuels
  • Emission standards and control mechanisms while using alternative fuels
  • Standards for permitting procedures

Appropriate standards also need to be established for alternative raw materials that are to be used for clinker and cement production. In order to achieve an energy-efficient production special education, further training and workshops for the involved staff have to be carried out.

Egypt

The current political developments in Egypt influence the local cement industry significantly. The government expects additional sources of revenue on the one hand from selling licences for the construction of new cement plants and on the other hand from a reduction of subsidies for fossil fuels. Since these news are not a surprise for the local cement plants, they started to invest in the implementation of alternative – mostly biomass-derived fuels. One of them is CemexAssiut that not only started using different kinds of biomass, but also, most notably and exemplary, established plantations for the production of biomass (here: “Casuarina”) that are irrigated with pretreated sewage water from the city Assiut.

Egypt is the 14th biggest rice producer in the world and the 8th biggest cotton producer in the world. Egypt produced about 5.67 million tons of rice and 635,000 tons of cotton in 2011. The area of cotton crop cultivation accounts for about 5% of the cultivated area in Egypt. The total amount of crop residues is about 16 million tons of dry matter per year. Cotton residues represent about 9% of the total amount of residues. Such high production rates should be welcomed by the cement industry since these materials comprise cotton stalks, rice husks and rice straw which serve ideally as alternative fuels.

The use of waste-derived alternative fuels is, however, more complicated. Although for example Cairo produces some 15,000 tons of waste each day, it is not easy for the cement plants to obtain this waste since they are in direct competition with the informal sector that controls approx. 60% of the local waste total. So-called Zabbaleen or scavengers – mostly young people who do not have other options – make their living by collecting and selling waste-derived recyclables.

Tunisia

Some years ago, Tunisia already invested in the establishment of an organised waste management system in form of a state-owned agency named “ANGED”. Funded by the national German KfW development bank, numerous waste collection points as well as organised landfills have been built. Additionally, a special collection centre for hazardous waste was erected in Jradou. This centre was operated by MVW Lechtenberg’s Partner Nehlsen AG, the German Waste Management Group, collecting and processing wastes like used oils and solvents. Such wastes are ideal alternative fuels. A fact that is also known to the local cement companies that planned to use them in their plants. Unfortunately, due to public opposition the centre was closed and the projects for the processing of alternative fuels have been suspended since then.

Tunisia is one of the biggest producers and exporters of olive oil in the world. It also exports dates and citrus fruits that are grown mostly in the northern parts of the country. It seems paradox that for example olive kernels – the waste from Tunisian olive production – is exported to European power plants in order to save fossil fuel-derived CO2 emissions there, while Tunisia imports approximately 90% of its energy demand, consisting of fossil fuel.

Morocco

The Moroccan cement industry has already achieved a greater success regarding the use of alternative fuels. Cement plants, mostly owned by the international companies Lafarge, Cimpor, Holcim and Italcimenti, already invested years ago in the environmentally friendly use of alternative fuels and alternative raw materials due to the development of world market prices. Also the only local competitor, CIMAT, has started preparing for the implementation of alternative fuels immediately after completion of its new plant (a 5-stage double string calciner from Polysius) in Ben Ahmed, near Casablanca.

In the year 2003 an agreement on the use and import of alternative fuels (used tyres at the time) was made between the Association Professionelle de Ciment and Moroccan government. Since last year attempts are being made to agree on an industry regulation that sets standards for the use of all appropriate special waste available in Morocco.

United Arab Emirates

The United Arab Emirates, represented by Dr. Rashid Ahmad Bin Fahd, Minister of Environment and Water, recently issued a decision streamlining the activities of cement plants all over the country. The resolution will affect all existing and new cement factories across the country. Its provisions obligate the industry to prepare a report assessing the impact of cement plants on the environment.

According to the decision, this report has to be prepared by a consulting firm having expert knowledge regarding environmental protection in the cement industry. This is certainly the first step to evaluate the current situation which will be followed by an investigation of alternatives towards a sustainable development. Interest in the implementation of alternative fuels already exists among the national cement industry which is proven not least by the numerous planned investment projects.

Conclusions

The cement industry in the MENA region will change significantly within the next years. This change will focus on the improvement of energy efficiency and on the increased use of alternative raw materials and alternative fuels. This will include high investments in technology and in the human resources sector where the creation of new jobs, especially in the field of environmentally friendly and sustainable development, provides a perspective for the growing, young population of the MENA countries.

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Environmental Best Practices for MENA Cement Industry

Cement production in MENA region has almost tripled during the last 15 years, mainly on account of high population growth rate, rapid urbanization, increasing industrialization and large-scale infrastructural development. The growth of cement industry in MENA is marked by factors that are directly connected with sustainability, energy efficiency and raw material supply. Although the factors differ from country to country and cannot be generalized, there are major concerns regarding shortage of raw materials, GHG emissions, dependence on fossil fuels and lack of investment in technological innovations.

For the MENA cement sector, key points for an environment-friendly industry are use of alternative raw materials and alternative fuels, energy-efficient equipment and green technologies. As the use of alternative fuels and raw materials is still uncommon in the Middle East, guidelines and regulatory framework have to be defined which can set standards for the use of alternative or waste-derived fuels like municipal solid wastes, dried sewage sludge, agricultural wastes, drilling wastes etc.

Sewage Sludge

An attractive disposal method for sewage sludge is to use it as alternative fuel source in a cement kiln. Dried sewage sludge with high organic content possesses a high calorific value. Due to the high temperature in the kiln the organic content of the sewage sludge will be completely destroyed. The resultant ash is incorporated in the cement matrix. Infact, several European countries, like Germany and Switzerland, have already started adopting this practice for sewage sludge management.

The MENA region produces huge quantity of municipal wastewater which represents a serious problem due to its high treatment costs and risk to environment, human health and marine life. Sewage generation across the region is rising by an astonishing rate of 25 percent every year. Municipal wastewater treatment plants in MENA produce large amounts of sludge whose disposal is a cause of major concern.

For example, Kuwait has 6 wastewater treatment plants, with combined capacity of treating 12,000m³ of municipal wastewater per day, which produce around 250 tons of sludge daily. Similarly Tunisia has approximately 125 wastewater treatment plants which generate around 1 million tons of sewage sludge every year. Currently most of the sewage is sent to landfills. Sewage sludge generation is bound to increase at rapid rates in MENA due to increase in number and size of urban habitats and growing industrialization.

The use of sewage sludge as alternative fuel is a common practice in cement plants around the world, Europe in particular. It could be an attractive business proposition for wastewater treatment plant operators and cement industry in the Middle East to work together to tackle the problem of sewage sludge disposal, and high energy requirements and GHGs emissions from the cement industry.

Use of sludge in cement kilns will led to eco-friendly disposal of municipal sewage

Use of sludge in cement kilns will led to eco-friendly disposal of municipal sewage

Sewage sludge has relatively high net calorific value of 10-20 MJ/kg as well as lower carbon dioxide emissions factor compared to coal when treated in a cement kiln. Use of sludge in cement kilns can also tackle the problem of safe and eco-friendly disposal of sewage sludge. The cement industry accounts for almost 5 percent of anthropogenic CO2 emissions worldwide. Treating municipal wastes in cement kilns can reduce industry’s reliance on fossil fuels and decrease greenhouse gas emissions.

Municipal Solid Wastes and Biomass

Alternative fuels, such as refuse-derived fuels or RDF, have very good energy-saving potential. The substitution of fossil fuel by alternative sources of energy is common practice in the European cement industry. The German cement industry, for example, substitutes approximately 61% of their fossil fuel demand. Typical alternative fuels available in MENA countries are municipal solid wastes, agro-industrial wastes, industrial wastes and crop residues.

The gross urban waste generation quantity from Middle East countries has crossed 150 million tons per annum. Bahrain, Saudi Arabia, UAE, Qatar and Kuwait rank in the top-ten worldwide in terms of per capita solid waste generation. Solid waste disposal is a big challenge in almost all MENA countries so conversion of MSW to RDF will not ease the environmental situation but also provide an attractive fuel for the regional cement industry. Tens of millions of tyres are discarded across the MENA region each year. Scrap tyres are are an attractive source of energy and find widespread use in countries around the world.

Agriculture plays an important role in the economies of most of the countries in the Middle East and North Africa region.  Despite the fact that MENA is the most water-scarce and dry region in the world, many countries in the region, especially those around the Mediterranean Sea, are highly dependent on agriculture. Egypt is the 14th biggest rice producer in the world and the 8th biggest cotton producer in the world. Similarly Tunisia is one of the biggest producers and exporters of olive oil in the world. Such high biomass production rates should be welcomed by the cement industry since these materials comprise cotton stalks, rice husks and rice straw which serve ideally as alternative fuels. However it is ironical that olive kernels – the waste from Tunisian olive production – is exported to European power plants in order to save fossil fuel-derived CO2 emissions there, while Tunisia imports approximately 90% of its energy demand, consisting of fossil fuels.

Drilling Wastes as Alternative Raw Material

The reduction of clinker portion in cement affords another route to reduce energy consumption. In particular, granulated blast furnace slags or even limestone have proven themselves as substitutes in cement production, thus reducing the overall energy consumption. The Middle East oil and gas industry has made a lot of effort in order to reduce the environmental impact of their activities. The use of drilling wastes and muds is preferable in cement kilns, as a cement kiln can be an attractive, less expensive alternative to a rotary kiln. In cement kilns, drilling wastes with oily components can be used in a fuel-blending program to substitute for fuel that would otherwise be needed to fire the kiln.

Conclusions

The cement industry can play a significant role in the sustainable development in the Arab countries, e.g. by reducing fossil fuel emissions with the use of refused derived fuels (RDF) made from municipal solid waste or biomass pellets. The cement companies in the Middle East can contribute to sustainability also by improving their own internal practices such as improving energy efficiency and implementing recycling programs. Businesses can show commitments to sustainability through voluntary adopting the concepts of social and environmental responsibilities, implementing cleaner production practices, and accepting extended responsibilities for their products.  

The major points of consideration are types of wastes and alternative fuels that may be used, standards for production of waste-derived fuels, emission standards and control mechanisms, permitting procedures etc. Appropriate standards also need to be established for alternative raw materials that are to be used for clinker and cement production.

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Energy Management in the Middle East

Managing and reducing energy consumption not only saves money but also helps in mitigating climate change and enhancing corporate reputation. The primary objective of energy management is to achieve and maintain optimum energy procurement and utilisation, throughout the organisation which may help in minimizing energy costs and mitigating environmental effects. Infact, energy management is widely acknowledged as the best solution for direct and immediate reduction of energy consumption.

Importance of Energy Management

Energy should be regarded as a business cost, like raw material or labour. Companies can achieve substantial reduction in energy bills by implementing simple housekeeping measures. Reduction and control of energy usage is vital for an organization as it:

  • Reduces costs: Reducing cost is the most compelling reason for saving energy. Most organisations can save up to 20% on their fuel cost by managing their energy use;
  • Reduces carbon emissions: Reducing energy consumption also reduces carbon emissions and adverse environmental effects. Reducing your organisation’s carbon footprint helps build a ‘green’ image thereby generating good business opportunities; and
  • Reduce risk: Reducing energy use helps reduce risk of energy price fluctuations and supply shortages.

Regulatory requirements aiming to reduce carbon emissions and energy use require accurate energy data collection and effective management systems. Good energy management practices are compliant with these requirements and help fulfil regulatory obligations. Businesses worldwide are showing interest in appointment of a formal/informal energy manager to coordinate energy management activities. The main task of an energy manager is to set up a system to collect, analyse and report on energy consumption and costs which may involve reading electricity meters regularly and analysis of utility bills.

Carbon emissions from energy use dominate the total greenhouse gas emissions of most organisations. Sound energy management is rapidly emerging as an integral part of carbon management which in turn helps organisations in effective overall environmental management. In addition to financial benefits, energy management has other significant advantages for an organisation such as:

  • Organisations achieve stronger market position by demonstrating ‘green’ credentials. Energy management improves competitive advantage as most consumers prefer to source from socially responsible businesses;
  • Organisations adopting energy management systems can influence supply chains by preferring suppliers who adopt environment management practices; and
  • Energy management creates a better workplace environment for employees by improving working conditions.

Energy Management in the Middle East

In recent years, energy consumption in the Middle East is rising exponentially due to rapid industrialization and high population growth rate. Infact, the level of primary energy consumption in MENA region is one of the highest worldwide.  However, the efficiency of energy production and consumption patterns in the region requires improvement. Though the per capita energy consumption in the GCC sub-region are among the world’s top list, more than 40 percent of the Arab population in rural and urban poor areas do not have adequate access to energy services.

The Middle East is making a steady change towards energy efficiency and alternative sources of energy. Several declarations have been issued in recent years emphasizing concerns and commitment of regional powers to achieve sustainable development. Energy Strategy 2030 introduced by Dubai aims to reduce energy demand and carbon dioxide emissions by 30% by the year 2030 through secure energy supply and efficient energy use while meeting environmental and sustainability objectives. Simalarly Saudi Arabia and Qatar are seriously pursuing the use of alternative energy in power generation. This is an attractive driver for businesses to adopt solutions that reduce overall energy consumption. 

Considering the rapid rise in power demand in the region, governments are now looking to diversify their energy mix from their primary energy source to a greater reliance on renewable energy. Middle East energy efficiency ranking is expected to get a major boost due to the development of large renewable energy projects in UAE, Saudi Arabia, Jordan etc. Balanced approaches are being employed to drive feasible clean energy projects while developing the regulatory framework and adaptation of energy efficient technologies.

Many businesses in the Middle East have set dynamic strategic direction to achieve immediate reduction in energy consumption. The trend towards energy efficiency will only continue to grow to sustain this demand. With increasing environmental awareness, there is significant room for growth and leadership within the Middle East for the adoption of energy optimisation, introduction of specialised energy-saving systems and implementation of sustainable energy technologies.

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Energy Efficiency Perspectives for MENA

MENA countries are facing an increasing challenge in reducing greenhouse gas emissions from the energy sector. Qatar, Kuwait, UAE, Bahrain and Saudi Arabia figure among the world’s top-10 per capita carbon emitters. In case of business-as-usual scenario, GHGs emissions from the energy sector will continue to rise throughout the region. According to a recent report by International Energy Agency (IEA), energy intensity demand in MENA is mainly driven by population and economic growth and reliance of heavy industries on generous energy subsidy. It is projected that primary energy demand in the region will be doubled by 2030 and the region’s share in global oil production will increase from 35% now to 44% in 2030. MENA countries together have 840 billion barrels of proven crude oil reserves (57% of world’s oil) and 80 trillion cubic meters of proven gas reserves (41% of world’s natural gas). Population growth and economic expansion have increased energy demand significantly over the past decade; between 2000 and 2011, domestic consumption almost doubled in Oman and tripled in Qatar. 

Growth in energy demand is driven across the end-use sectors: in the residential sector through increased use of air conditioning and cooling units; in the transportation sector through rising vehicle ownership; and in the industrial sector from greater industrial activity, hydrocarbon production and refining, and energy-intensive desalination plants. One of the central reasons for increased GHG emissions from MENA energy sector is the low efficiency of energy resource consumption. The energy intensity (energy use per unit of GDP) is very high which drives up atmospheric GHG emissions. However it is important to highlight the difference among MENA countries regarding carbon intensity levels where GCC nations are rank higher compared to energy-importing MENA nations like Jordan, Egypt, Lebanon etc. All these facts stress the urgent need to increase energy efficiency in order to precipitate decline in energy intensity and thus reduce GHG emissions.

There is a wide array of measures on both supply side and demand side, to boost MENA energy efficiency levels by promoting stringent environmental, energy saving policies to combat climate change.  Formal energy efficiency programs and voluntary measures combined will help the region to maintain its economic strength. Energy conservation programs in residential, commercial and industrial sectors can significantly reduce carbon emissions and augment energy supply in the MENA region. A robust regulatory and institutionalized framework can help to achieve a reduction in GHG emissions through a bundle of non-market based and market-based instruments.

Also known as command and control instruments (CAC), these regulations focus on preventing environmental externalities which is achieved through auditing and monitoring/inspection program and performance-oriented regulations to limit air pollutants. Here are some examples of command and control instruments:

  • Awareness and information campaigns
  • Labeling & training programs to engage end-users to reduce their emissions voluntarily.
  • Information-based programs to spread awareness and encourage efficient consumption patterns.
  • Establishing minimum energy performance standards for appliances, equipment and vehicles as a complement to labelling methods.
  • Building codes and insulation to save the energy loss.
  • Smart reductions such as smart meters, energy audit, energy saving plans etc.
  • Phasing out of inefficient lighting like incandescent bulbs and CFLs.

Market-based instruments are defined as a policy instrument that use market, price to provide incentives for polluters to reduce or eliminate their emissions (negative environmental externality). Building regional cap, carbon trading platform and grants/rebates/tax exemption/rewards to encourage efficiency measures are good examples of market-based incentive program that may be implemented in the Middle East.

Conclusion

On account of its huge fossil fuel reserves, MENA has a great role to play in the international efforts towards green economy and sustainable development. Recently, the GCC has embarked on ambitious policies and projects across different sectors which may, explicitly or implicitly, mitigate impacts of GHG on their economies and development priorities. 

Adoption of energy efficiency-based energy policies in commercial, industrial and domestic sectors is integral to climate change mitigation in the MENA region. It is imperative on MENA governments to create an environment that rewards energy-efficient choices and encourages innovation for all kinds of energy users. The Middle East electricity market is growing at a rapid pace due to higher consumption rates in the domestic, commercial and industrial sectors which underlines the need for a successful implementation strategy that can bridge the gap between the current supply and increasing demand.

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Combined Heat and Power Systems

Combined Heat and Power (CHP), or Cogeneration, is the sequential or simultaneous generation of multiple forms of useful energy (usually mechanical and thermal) in a single, integrated system. In conventional electricity generation systems, about 35% of the energy potential contained in the fuel is converted on average into electricity, whilst the rest is lost as waste heat.

CHP systems uses both electricity and heat and therefore can achieve an efficiency of up to 90%, giving energy savings between 15-40% when compared with the separate production of electricity from conventional power stations and of heat from boilers.

CHP systems consist of a number of individual components—prime mover (heat engine), generator, heat recovery, and electrical interconnection—configured into an integrated whole. The type of equipment that drives the overall system (i.e., the prime mover) typically identifies the CHP unit. 

Prime movers for CHP units include reciprocating engines, combustion or gas turbines, steam turbines, microturbines, and fuel cells. These prime movers are capable of burning a variety of fuels, including natural gas, coal, oil, and alternative fuels to produce shaft power or mechanical energy.

CHP Technology Options

Reciprocating or internal combustion engines (ICEs) are among the most widely used prime movers to power small electricity generators. Advantages include large variations in the size range available, fast start-up, good efficiencies under partial load efficiency, reliability, and long life.

Steam turbines are the most commonly employed prime movers for large power outputs. Steam at lower pressure is extracted from the steam turbine and used directly or is converted to other forms of thermal energy. System efficiencies can vary between 15 and 35% depending on the steam parameters.

Co-firing of biomass with coal and other fossil fuels can provide a short-term, low-risk, low-cost option for producing renewable energy while simultaneously reducing dependence on fossil fuels. Biomass can typically provide between 3 and 15 percent of the input energy into the power plant. Most forms of biomass are suitable for co-firing. 

Steam engines are also proven technology but suited mainly for constant speed operation in industrial environments. Steam engines are available in different sizes ranging from a few kW to more than 1 MWe.

A gas turbine system requires landfill gas, biogas, or a biomass gasifier to produce the gas for the turbine. This biogas must be carefully filtered of particulate matter to avoid damaging the blades of the gas turbine.  

Stirling engines utilize any source of heat provided that it is of sufficiently high temperature. A wide variety of heat sources can be used but the Stirling engine is particularly well-suited to biomass fuels. Stirling engines are available in the 0.5 to 150 kWe range and a number of companies are working on its further development.

A micro-turbine recovers part of the exhaust heat for preheating the combustion air and hence increases overall efficiency to around 20-30%. Several competing manufacturers are developing units in the 25-250kWe range. Advantages of micro-turbines include compact and light weight design, a fairly wide size range due to modularity, and low noise levels. 

Saudi ARAMCO's CHP Initiatives

Recently ARAMCO announced the signing of agreements to build and operate cogeneration plants at three major oil and gas complexes in Saudi Arabia. These agreements demonstrate ARAMCO's commitment to pursue energy efficiency in its operation. Upon completion, the cogeneration plants will meet power and heating requirements at Abqaiq, Hawiya and Ras Tanura plants. These plants are expected to generate a total on 900MW of power and 1,500 tons of steam per hour when they come onstream in 2016.

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Smart Grid – Key to Managing Energy Demand in Saudi Arabia

Electricity consumption in the Kingdom of Saudi Arabia has been climbing steadily for the past few decades. Saudi electricity market is growing at an accelerating rate due to higher consumption rates in the private, commercial and industrial sectors. Current domestic energy consuming behaviors pose unescapable fatal consequences that affect both the Kingdom’s production and export levels. Therefore, an urgent action is needed to curb the increasing electricity demand and promote energy conservation. Smart grid is a dynamic solution which can bridge the gap between the current supply and increasing demand in Saudi Arabia.

What is Smart Grid?

A smart grid network makes for the ideal bridge where the goals of modernization can meet those of a reliable public infrastructure. Smart grid is a computerized technology, based on remote control network, aiming to completely alter the existing electric infrastructure and modernize the national power grid. This is through empowering the demand response which alerts consumers to reduce energy use at peak times. Moreover, demand response prevents blackouts, increases energy efficiency measures and contributes to resource conservation and help consumers to save money on their energy bills. Smart grid technology represents an advanced system enabling two way communications between energy provider and end users to reduce cost save energy and increase efficiency and reliability.

Advantages of Smart Grid

The beauty of adapting this technology will spread to not only utility but to all utility users including consumers and government.

Active Role of Consumers

The beauty of smart grid is that it provides consumers with the ability to play an active role in the country’s electricity grid. This is through a regulated price system where the electricity rate differsaccording to peak hours and consequently consumers cut down their energy use at those high stress times on the grid. Thus, smart grid offers consumers more choices over their energy use needs. 

Upgrading the Existing Grid

Utilities benefit from improving the grid’s power quality and reliability as mentioned through an integrated communication system with end users with more control over energy use. This is through decreasing services rates and eliminating any unnecessary energy loss in the network. Thus, all these positive advantages will make smart grid technology a smart and efficient tool for utilities.

Contributing to Energy Efficiency

The government of Saudi Arabia is already taking bold steps to adapt new energy efficiency standards as a national plan to reduce domestic energy consumption. For that, adapting and deploying smart grid will enable the kingdom to modernize the national grid. With the time the government will build efficient and informed consumers as a backbone in its current energy policy. Moreover, this advanced technology will help with electricity reduction targets and contribute to lowering the carbon dioxide emissions. Thus, this is a great opportunity for the kingdom to mitigate with the climate change measures.

A Dynamic Approach

Adoption of smart grid systems will help Saudi Arabia in increasing the efficiency of utilities as well as improving the ability of consumers to control their daily energy use. Smart grid technology offers a unique engagement that benefits consumers, utilities and government to become part of the solution. In addition, a smart grid technology is a viable option to enhance the value people receive from the national grid system. This smart transition will give the Saudi government a policy option to reduce drastically its domestic energy use, leveraging new technology through empowering the role of consumers’ active participants on the country’s grid.

As peak electricity demand grows across the country, it is important for KSA to make large-scale investment in smart grid solutions to improve energy efficiency and manage increasing energy demand. Undoubtedly, smart grid is more intelligent, versatile, decentralized, secure, resilient and controllable than conventional grid. However, to reap the benefits of smart grid systems, utilities in Saudi Arabia need to make major changes in their infrastructure and revolutionize the manner in which business is conducted.

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Peak Oil: Perspectives for Saudi Arabia

PeakOil-SaudiArabiaThe term ‘peak oil’ is ominous to the Middle East, as most of the countries in the region are heavily dependent on oil and natural gas for industrial, economic and social development. Petroleum is considered one of the world’s most important sources of energy generation, after uranium, of course. Many other substances have been tested in order to be used as alternatives to petroleum, but none have hitherto been successful. Scientific research illustrates how the world is facing catastrophe if it doesn’t find an alternative to oil, as it is currently impossible for the global economy to grow without sufficient amounts of energy which are adapted to the demands of this growth. There is more discussion now than ever before about how the world is definitely starting to approach a stage of peak oil.

What is Peak Oil

Peak oil is a termed coined by the renowned American geologist King Hubbert in the fifties. He managed to predict an oil peak in several regions in America which would occur in the seventies; and exactly what this scientist predicted did in fact happen. For when oil extraction reaches extreme levels it begins to decline and gradually ends. Oil is considered a finite resource, or one which isn’t renewed as it is used up.

This theory confirms that global oil production has reached its peak today and has started declining inexorably now that 50% of the world’s oil reserves have been consumed. This proves that oil could be on the brink of depletion if clear and serious plans are not put in place to guide consumption and therefore encourage using provisional reserves in the best way. However, this theory is not accepted by many or by those who continue to focus on how large the earth’s oil reserves are, and how they only need investment so that they can be drilled.

Peak Oil Scenario for Saudi Arabia

Saudi Arabia is considered one of the largest global oil exporters and the only one able to regulate and stabilise the global oil market, thanks to its reserve stocks. These reserves are calculated to be at 265.4 billion barrels, or what is enough to last, at the current level of production, for more than 72 years. According to ARAMCO reports, there are around a trillion barrels that will be discovered in the future and will satisfy global demands, despite current consumption, for one whole century.

 Saudi Arabia is currently focussing its efforts on drilling and extracting natural gas, as it doesn’t import it but depends on domestic production. Alongside this, the Saudi Kingdom is currently making huge investments in nuclear energy and solar power.

But can natural gas and renewable energy be relied upon as alternatives to oil in order to satisfy Saudi Arabia’s domestic needs, which are rapidly growing each day? According to a recent report by America’s Energy Information Administration (EIA), Saudi Arabia is the largest oil-consuming nation in the Middle East. Saudi Arabia consumed 2.9 million barrels per day of oil in 2013, almost double the consumption in 2000, because of strong industrial growth and subsidised prices. One important contributor to Saudi oil demand is the direct crude oil burn for power generation. There is not just enough fuel oil and natural gas to meet the demand and hence the resorting to crude oil.

Has peak oil really arrived? If not today, then when? And how will it look, especially for countries totally dependent on oil? Will its consequences be different for both developed and under-developed nations?  Given that global demand for oil will only grow to exceed 100 million barrels a day after 2020, according to the most extreme estimates, I believe that the time may have come for the Kingdom of Saudi Arabia to start planning for what follows the oil era.

Despite looming threat of peak oil, power generation capacity in KSA is expected to rise from current level of 58GW to 120GW by 2032, however Saudi Arabia cannot afford to burn rising crude oil volumes for power generation. In spite of the fifth largest natural gas reserves in the world, it does not produce sufficient gas for power generation and for its vast petrochemical industry. The only solution at this point of time is transition to low-carbon economy whereby Saudi Arabia make use of its massive solar energy potential, implement effective measures for improving energy efficiency in the industrial sector and remove huge energy subsidies for industrial and domestic users.

 

Note: The article has been translated from Arabic by Katie Holland who graduated from Durham University in 2015 with a degree in Arabic and French, having also studied Persian. Currently working in London, she hopes to develop a career that uses her knowledge of Arabic and the Middle East, alongside pursuing her various interests in the arts. 

Trends in Sustainable Housing

There has been large-scale proliferation in construction of buildings worldwide due to population growth, economic development, urbanization and migration. According to UN Habitat, there has been a migration of the world's population from rural areas to cities or smaller urban areas. In fact, this trend is expected to continue and cities within the developed as well as developing nations are expected to grow in terms of population. As a result all forms of construction activities are expected to become more intense than ever in the years to come.

Usually the development of urban areas suffers from weak process of planning and control which lead to bad housing conditions, poor sanitation system, limited electricity and water supply, and often poverty.  These issues coupled with high population growth rate, environmental degradation, global warming and limited non-renewable resources highlights the importance of sustainable housing for the survival of humankind.

Sustainability in Buildings

Building construction and operation have extensive direct and indirect impacts on the environment. Buildings use resources such as energy, water and raw materials, generate a variety of wastes and emit potentially harmful gases. Basically the environmental impacts of buildings take place within six stages of building lifecycle:

  • Design process
  • Material or product manufacture
  • Distribution
  • Construction phase
  • Operation
  • Refurbishment or demolition

In terms of energy consumption, 60 percent of the world’s electricity is consumed by residential and commercial building. Space heating accounts for 60 percent of residential energy consumption and water heating for 18 percent in developed countries. Therefore radical changes must be made in design and performance of the buildings to reduce energy consumption and its corresponding environmental impact.

In many countries, sustainable construction methods are being adopted to lead the building industry towards sustainable development and provide better quality living environment. Basically sustainable building design and construction intend to diminish environmental impacts of building over its entire lifetime by paying attention to environmental, socio-economic and cultural issues.

Trends Around the World

The developed and developing world is facing sustainable housing and urbanization challenge in different ways.  Currently industrialized countries are the highest contributor in CO2 emissions. However it is expected that developing countries will take the lead in global warming in the near future. Developing countries are experiencing fast-paced urbanization and at the same time slums and informal settlements are also expanding rapidly which makes development of sustainable housing a difficult proposition.

Countries around the world are taking steps towards implementing sustainable design in the building sector. However most of them are still far from reaching the intended targets.  The major barriers in implementing energy efficiency in the building sector include:

  • Economic and financial issues;
  • Structural characteristics of political, economic and energy system; and
  • Lack of awareness and information

However different countries adopt different approaches for sustainable construction and set different priorities, depending on their economic condition. Nations with high economic growth are developing sustainable buildings making use of latest technologies and innovations. In case of developing countries, social equality and economic sustainability are foremost considerations. In fact, developing countries are moving slowly or even negative towards adopting sustainable housing strategies.

As far as Middle East is concerned, economic considerations dominate for oil and gas-rich GCC countries as they protect their oil and gas export reserves by investing in new ways to boost energy efficiency and lower energy consumption. However for less-affluent countries, such as Jordan, lack of indigenous energy resources and high energy costs are the primary reasons for implementation of sustainable design strategies in buildings.

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District Cooling Perspectives for the Middle East

District cooling produces chilled water in a centralized location for distribution to buildings like offices and factories through a network of insulated underground pipes. The chilled water travels to different buildings, where the water circulates through refrigeration coils or uses absorption technology to enter the air-conditioning system. During winter, the source for the cooling can often be sea water, so it is a cheaper resource than using electricity to run compressors for cooling.

What is District Cooling

District cooling provides effective control over internal temperature of a building, requires less maintenance than a standalone air-conditioning system, consumes lesser space and reduces noise pollution. The effect of district cooling systems on the environment is minimal because of the reduction in carbon dioxide emissions, use of eco-friendly refrigerants and implementation of rigorous health and safety standards.

The Helsinki district cooling system in Finland uses waste heat from CHP power generation units to run absorption refrigerators for cooling during summer time, greatly reducing electricity usage. In winter time, cooling is achieved more directly using sea water. The adoption of district cooling is estimated to reduce the consumption of electricity for cooling purposes by as much as 90 percent. The idea is now being adopted in other Finnish cities.

The use of district cooling is also growing rapidly in Sweden and in a similar way. District cooling is very widespread in Stockholm, the capital of Sweden. In fact, approx. 7 million square meters of commercial space in Stockholm is connected to the district cooling grid. The Stockholm district cooling grid currently consists of different systems with capacities ranging from 3 MW to 228 MW. The district cooling network in Stockholm is currently 76 kilometers long.

District Cooling Prospects in the Middle East

There is tremendous potential for the utilization of district cooling systems in the Middle East. The constant year-round heat coupled with expensive glass exteriors for hotel, airports and offices etc result in very high indoor temperatures. The combination of distributed generation of power and utilization of waste heat can provide a sustainable solution to meet the high demand for refrigeration in the region. District cooling systems can provide cooling solutions to commercial buildings, hotels, apartment blocks, shopping malls etc.

The world’s largest district cooling plant, Integrated District Cooling Plant (IDCP), was installed in The Pearl-Qatar in 2010. IDCP will service more than 80 apartment towers, beachfront villas, townhouses, shopping complexes, offices, schools and hotels throughout the Island, ultimately supplying more than 130,000 tons of refrigeration to the Island’s estimated 50,000 residents.

Despite paramount importance of air conditioning in Middle East countries, regional governments have failed to incorporate it in policy and planning which has lead to the evolution of an unregulated market for cooling systems.  Most of the cooling methods employed nowadays are based on traditional window units or central air cooling systems where consume copious amount of power and also damage the environment.

District cooling has the potential to provide a viable solution to meet air conditioning requirements in the Middle East. Low energy requirement, peak saving potential, eco-friendliness and cost-effectiveness are major hallmarks of district cooling networks. District cooling can play a vital role in fostering sustainable development in Middle East nations. Apart from providing cooling needs, district cooling can reduce the need for new power plants, slash fossil fuel requirements and substantially reduce greenhouse gas emissions from the region.   

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