A1258568566AuOkB

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Small and Medium Scale Industries (SMIs) in Asia
A Study of Selected Technologies and Policy
Options
C. Visvanathan S. Kumar Asian Regional
Research Programme in Energy, Environment and
Climate (ARRPEEC) Asian Institute of Technology,
Thailand
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Small and Medium Scale Industries (SMIs) in Asia
Energy, Environment and Climate Interrelations

• Coordination
• AIT Asian Institute of Technology, Thailand.
• National Research Institutes
• China CESTT (Center for Environ. Sound
  Technology Transfer).
• India PSG (PSG College of Technology).
• Philippines ITDI (Industrial Technology
  Development Institute).
• Sri Lanka ISB (Industrial Services Bureau).
• Vietnam NEDCEN (Non-state Economic Development
  Centre).

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Presentation Overview

1. Project Objective.
2. Selected industrial sub-sectors.
3. Major research findings.
4. Achievements/impacts of the project.

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• Project Objective
• Promotion of activities to mitigate GHG emission
  and other pollution by SMIs

• Research Themes
• Analysis of production processes, energy use and
  pollution in selected industrial sectors.
• Identify energy efficient and environmentally
  sound technologies and processes (E3ST).
• Review existing policies and develop scenarios
  for sustainable promotion of E3ST.
• Capacity mobilization and enhancement to
  introduce E3ST in selected industrial sectors.

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2. Selected Industrial Sub-sectors

• Five industrial sub-sectors were selected across
  five participating countries.

Countries Industrial Sub-Sectors
China Textile, Foundry, Tea
India Textile, Foundry, Tea, Brick
Philippines Desiccated Coconut, Foundry, Brick, Ceramic
Sri Lanka Tea, Ceramic, Desiccated Coconut, Brick and Tile
Vietnam Tea, Textile, Brick, Ceramic

• Rationale for selection
• Energy intensive and/or highly polluting.
• Commonality across the countries.
• Economic importance in the countries.

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3. Major Research Findings

• Theme 1 Analysis of Energy use and Pollution
  Load
• Impacts are individually small, but collectively
  high
• Low energy efficiency
• Policies are not specific to SMI
• Lack of information on technologies.

• Theme 2 Identification of E3ST
• Lack of awareness and information on E3ST
• Lack of technical know-how/capacity to implement
  E3ST
• Access to loan is not easy
• Lack of links between E3ST developer and SMI

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3. Major Research Findings (..cont)

• Theme 3 Review, Analysis Recommendation of
  Energy and Environmental Policies
• No specific energy and environmental policies for
  SMIs.
• Most of the environmental policies (regulations)
  are based on end of pipe treatment.
• There is no market based strategy.
• Role of financial institutions in promoting E3ST
• - Financial intermediations.
• - Financial packages.

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3. Project Outputs

• Five Sector Reports (Tea, DC, Brick, Foundry, and
  Textile) illustrating production processes,
  energy use, pollution and E3ST options
  Benchmarking/References to be published Peer
  Review by Sector Experts.
• One cross country Policy Report on SMI with
  policy options to promote E3STs.
• Various Capacity Mobilization and Strengthening
  programs.
• Identification of E3STs Technology Fact Sheets
  (39 nos.) prepared for dissemination.
• Regular Newsletter (hardcopy Website).
• Publications (Journal, Conference, and other
  articles).
• Road Map CD.

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3. Sector Report Tea Sector

• ? Highlights of the Report
• Basic production processes are same across the
  countries, but the degree of modernization vary.
• Energy and environmental audits conducted show
  low energy efficiency and use of outdated
  technologies (Vietnam has the lowest energy
  efficiency).
• GHG emission results in two ways combustion of
  fossil fuels, and electricity use.

• ? Impacts
• Serves as a reference giving detailed information
  on tea sector.
• Participating countries learned from each other,
  realized their key differences (in energy use and
  pollution) to address them.
• E3ST suitable for tea sector were identified.

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Tea Sector
Automated material handling systems
Direct Oil-fired Heater for Withering and Drying
of Tea
Energy Efficient Motors
Tea manufacturing process
Sector Report on Tea
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3. Sector Report Desiccated Coconut Sector

• ? Highlights of the Report
• Focuses on two countries Philippines and Sri
  Lanka.
• Production process varies a great deal between
  the two countries - Philippines use
  continuous mechanized mills.
• - Sri Lanka use mechanized, semi-mechanized
  and traditional.
• Audits show drying process consumes about 66 of
  the total energy used.
• CO2 is emitted mainly from combustion of fuels
  (fossil and biomass) to produce heat.
• Mills using biomass have lower efficiency.
• Another major source of pollution is the
  discharge of highly organic (BOD) wastewater.

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Desiccated Coconut Sector
Dome Type Kiln for Coconut Shell Carbonizing
Screening, Grading and Packaging
Sector Report on Desiccated Coconut
DC production process
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Report on Policy

• ? Highlights
• A cross country comparison of national policies
  on economy, energy and environment SMI- Energy
  and Environment.
• Most policies across the countries are focused on
  high energy consuming industries, and little or
  no consideration is given in the SMI sectors.
• Policy options are presented for promotion of
  E3STs in the five countries.

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3. Capacity Mobilization and Strengthening

• ? Activities
• A number of capacity strengthening programs were
  conducted key actors involved in SMIs took part.
  The activities include
• Trainings by AIT and NRIs.
• Seminars in participating countries.
• Workshops at AIT and NRIs.
• Fellowships at AIT.

• In total, 13 nos. of trainings were conducted, in
  which 276 participants took part
• The trainings covered the areas such as energy
  and environmental audits, environmental
  management, boiler operation, effluent treatments
  etc.
• ? Impacts
• Personal are trained in energy and environmental
  auditing (all NRIs).
• Awareness on environmental management is
  developed at managerial level (India,
  Sri Lanka).
• Operational level people were trained on energy
  efficiency and environmental protection (Sri
  Lanka).
• Awareness developed for political leaders (Sri
  Lanka).

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Capacity Mobilization
SMI Review Workshop at Coimbatore, India
Training course on Effective Energy Management,
Philippines.
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3. Capacity Mobilization and Strengthening
(..contd)

• ? Fellowships
• 17 fellowships were provided (total of 26 man
  months) , and each fellow studied different
  industrial sub-sectors and policy.
• ? Impacts
• Developed common audit methodology and reporting
  mechanism of technical data.
• Researchers enhanced their technical and
  analytical competence, and reporting.
• Fellows from India were able to continue their
  work to initiate new projects.

Country No. of Fellows Man month
China 2 3
India 3 5
Philippines 4 6
Sri Lanka 6 9
Vietnam 2 3
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3. Capacity Mobilization and Strengthening
(..cont)
? Networking A SMI network established links
the research institutes, industrial associations,
government and NGOs across the five participating
countries.

• ? Impacts
• Exchange of information on technology made
  possible.
• Facilitated Sri Lankan participants visit to
  Indian industries.

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3. SMI Newsletter
? Objective To disseminate information about the
SMI project and other relevant information on
E3ST from other sources ? Target groups
industrial associations, policy makers, financial
institutions, government departments, NGOs,
academic institutions, R D organizations. ?
Total No of Issues 13 (so far) plus a ? Special
Issue Desiccated coconut ? Website
http//www.serd.ait.ac.th/smi2/smi2.html Exit
Strategy PSG (India) has now taken over the
publishing task of SMI Newsletter.
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SMI Newsletters
http//www.serd.ait.ac.th/smi2/smi2.html
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3. Road Map CD

• ? Objective
• To provide a comprehensive information about
  outputs of the SMI project (Reports,
  Publications, TFSs, Success Stories, Web sites,
  etc.) in a most convenient format for wider
  dissemination.
• ? The CD contains

• Information about the SMI project.
• Sector reports (Tea, DC, Brick, Foundry and
  Textile).
• Policy report.
• Technology Fact Sheets (E3ST).
• All publications (journal papers, articles).
• SMI Newsletters.
• Success Stories.
• Web links.

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Road Map CD
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4. Achievements/Impacts of the SMI Project
? Establishment of specific energy consumption
and pollution loads of selected industrial sub
sectors. ? Data/Information on energy-environmenta
l issues related to SMIs of the studied
sectors. ? Options for improvement of SMIs
energy-environmental status E3STs, policy
options. ? Increased awareness of related
actors/beneficiaries about energy-environmental
issues in SMIs. ? Capacity of NRIs and national
partners strengthened research and technical
capacity. ? Capacity of SMIs strengthened
energy-environmental Audit / management skills. ?
Networking established cooperation and
information exchange among partners in each
country and among participating countries. ?
Developing a technology for environmentally
friendly coconut shell carbonization (Sri
Lanka). ? Developing a low cost treatment
technique for coconut waste water (Sri Lanka). ?
Acquisition of measuring and monitoring equipment
(for emission and ambient air quality).
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4. Achievements/Impacts of the SMI Project
? Improved recognition by State, Private sector
and international development agencies (ADB
funded Cleaner Production and USAID funded ESCO
development projects) as a major player in energy
and environmental matters. ? Creation of wider
business interests focused on the field on energy
and environment. ? SLParticipating in national
steering committees on CP and CDM. ? SL
Entrusting the task of writing the chapter on
Environmentally Sound Technology Transfer for
Sustainable Development for the national report
for Rio10 world summit. ? NRI (Sri Lanka) is
selected as a partner organization under State of
Arizona (USA) Environmental Partnership Programme
under USAEP. ? Off-shoot project in Vietnam
improvement of withering trough in tea
processing. ? Offshoot of this project in India
PSG (Indian NRIs) has started a masters and PhD
programme in energy engineering and its energy
audit team has got Government approval to carry
out energy audit and certify the SMIs. ? PSG
(Indian NRI) has established contacts with Centre
for Environmental Education, which is
collaborating with UNIDO in Tirupur and USAID
project on Reduction of GHG Potential of
Knitwear Industry at Tirupur coordinated by
Ecosmart India.
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Thank You.
Any Questions and Comments