Energy management in the Jordanian cement industry

Abstract

Energy is essential to economic prosperity and quality of life. However it can have detrimental effects on the environment if not used properly. Moreover, if energy resources are scarce in a given country, then its use will impose economic and financial burdens on the national economy. The cement industry is energy-intensive, which adds a micro dimension to the macro issues mentioned above. Reducing energy consumption without due consideration to production requirements is not an optimal situation. What is needed is to arrive at a situation whereby energy is used rationally. The concept of rational use of energy has two embedded principles. The first is increased energy-use efficiency and the second is environmental protection. Jordan Cement Factories (JCF), located in a developing country where energy resources are not indigenously available and, therefore, costly energy requirements are imported, have realised the importance of addressing the energy management and conservation issues. This thesis describes the efforts initiated and conducted by the author, to address the research problem of improving energy usage through the application of effective management techniques aimed at reducing energy consumption per unit of cement produced. This present research has been concerned with energy management and efficient use of energy. The Jordan Cement Factories were used as a vehicle to demonstrate the proposed research methodology that aimed at improving energy consumption and thus operational efficiency. The methodology is based on establishing statistically significant relationships between interacting problem factors, and assessing the economic impact of improving these factors. Economic evaluation entailed the development of economic models and an application methodology combined with illustrative case studies. Consequently, the problem of energy management has been presented in a wider perspective that addressed the whole management system at the organisation. Towards that end, it was first necessary to show the significance of energy cost with respect to the overall manufacturing costs. The analysis of production costs, which demonstrated the significance of energy costs, was followed by the investigation and examination of the basic management factors that have direct impact on energy consumption at the JCF. Among these factors are, for instance, production line availability, production rate, average number of stoppages, and average duration of stoppages. These factors were determined using preliminary data analysis and the experience and technical knowledge of the researcher. The statistical analysis proved the existence of strong relationships between energy consumption and management factors. Several models were developed for a set of selected production lines, in the JFC at Fuhais and Rashadiya plants. These statistical models were generated using actual data for electrical energy and fuel consumption. The derived models have demonstrated the existence of strong relationships between energy consumption and management control factors; for instance, the values of R2 range from 60% to 90%. This implies that an equivalent percentage of the variations in energy consumption can be attributed to the selected management factors. The economic model developed in this research is concerned with demonstrating that effective management practices associated with proper maintenance and housekeeping can result in highly significant savings in energy usage. Although a simplistic methodology was used to evaluate the economic impact of any improvement programme, the economic treatment showed that the cost of improvement is actually negligible compared to the realisable savings in energy usage. The research has dealt with the details of developing a coherent energy management model whose objective is to establish transformational management processes of certain high-level management factors into daily operations and controls. The high-level management .factors are the same factors used as independent variables in the statistical and economic models, which statistically proved to be the major factors affecting the energy consumption at JCF. The research has also presented a detailed analysis of the organisational and procedural aspects of energy management with concentration on management functions, especially planning, controlling, executing, organising, and auditing. A detailed mapping and analysis of these functions as the main components of an Energy Management System (EMS) resulted in establishing job descriptions, organisational charts, work instructions and procedures for all-important functions of the EMS. The type of work described in this thesis could be extrapolated for application in other industries, particularly energy-intensive ones, to arrive at the objective of rational use of energy at the national and international levels. Comprehensive studies would need to be carried out for each type of industry prior to implementation. The cost benefit analysis presented in this research proved, beyond any doubt, the importance of implementing the EMS in JCF. As a result of this implementation it is demonstrated that huge annual savings were realised. Finally, as a result of improving energy control factors, introducing energy conservation measures and employing management techniques at JCF to guarantee the effectiveness of all such activities, resulted in an annual savings amount to about USS 3.5 million. Therefore, if the same or similar actions are undertaken by all cement, or other highly energy intensive industries then the savings could reach billions of dollars.