SDG13-Climate Action outlined by the UN specifies that emergency measures must be taken to cope with global and entrepreneurial sustainability risk due to climate change. Hence, FENC takes energy issues seriously. The Company takes active approach in responding to the public energy policies, dedicates itself to improving energy efficiency, promotes measures of energy conservation and carbon reduction, and gradually lower energy consumption to mitigate global climate change.
Energy management methods
The power conservation rate at FENC production sites in Taiwan reached 1.9% in 2015, 2.3% in 2016, 2.0% in 2017 and 2.0% in 2018, which surpasses the power conservation target of 5% in 5 years set by the government. Based on the overall energy policy, the Polyester Business established 4 task forces (production procedure, water resources management, power management, and resource and reuse). Each task force will recruit members according to the area of focus and report progress to the main contact for the project in order to enhance the overall management capacity.
All production sites are introducing ISO 50001 Energy Management System, and 4 have passed the certification. OPSC and FEIS are on track to introduce the system in 2019, and WHFE in 2020.
Considering operating risks posed by insufficient power supply from Taipower, all production sites in Taiwan have evaluated corresponding strategies against electricity rationing. For instance, Hsinpu Chemical Fiber Plant, Kuanyin Chemical Fiber Plant and FEFC use diesel for power generation; OPTC utilizes excess heat from natural gas boiler. In addition, Hsinpu Chemical Power Plant invested in cogeneration system, applying the fuel generated thermal energy for steam and power generation to increase fuel efficiency. The co-generation system is expected to launch in the second quarter of 2019, and another co-generation plant at OPTC is under evaluation.
FENC established the intercompany and interdepartmental “Energy Task Force” in 2010. The task force establishes energy-saving goals, conducts regular meetings to review energy consumption and direction for energy saving, tracts performance of energy conservation projects and reports to the governing entity on a regular basis. The task force also organizes technical conferences on energy conservation to explore opportunities for improvements on energy conservation and to enhance the efficiency of energy consumption. All production sites have formulated applicable guidelines and regulations in accordance with the policies established by the Energy Task Force, and fully implemented the required measures. During the monthly meetings, internal staff with the expertise also review energy consumption and propose improvements. Energy conservation audit is conducted in conjunction with energy inspection by the governing authority or customers, and the staff also provide the Energy Task Force with information to the assessment of relevant projects.
Note: The issues and projects managed by Energy Task Force include energy, water resources and wastes.
Note：2017 is the base year
In 2018, FENC set short-term (2020), mid-term (2025) and long-term (2030) goals for energy consumption per unit of production, water consumption per unit of production, as well as reduction in total waste and air pollutant emission with 2017 as the base year. In order to effectively track project progress, the Energy Task Force introduced the framework for “Review Meeting on Energy Conservation, Carbon Reduction and Circular Economy”, which includes water resources and waste management under issues to be addressed to expand the current management system. In addition, data on water resources and waste have been systemized and uploaded to “Online Smart Energy Management Platform”. The platform was later optimized and renamed “Management Platform of Energy Conservation, Carbon Reduction and Circular Economy”, which was launched in January 2019.
The Energy Task Force promotes cross communication among all production sites, providing professional expertise and resources on management to foster the synergy. For instance, the Company established electricity advisory group to provide diagnosis on energy consumption at various production sites while providing knowledge on electricity conservation, increasing reasonable use of electricity and improving awareness on conserving electricity. Members of the Energy Task Force held system training and served as instructors for courses on “Management Platform of Energy Conservation, Carbon Reduction and Circular Economy”. They coach colleagues on how to use the platform and assist highlevel managers to take advantage of the results of data analysis. Each year, the Energy Task Force holds cross-strait technological exchange meetings, inviting industry experts to share their experience on energy conservation and the latest trends.
The energy conservation tasks have been ongoing for years. Those with high performance and short payback period have largely been implemented. In 2010, NT$2 billion was appropriated for special energy-saving budget. In 2017, another NT$2 billion was appropriated with the aim to move beyond technological bottleneck to seek higher performance on energy conservation. After budget review, a total of NT$380 million was approved for 113 energy conservation projects in 2018; NT$870 million was budgeted for 2019, including projects without any expenditure in 2018. The estimated annual performance is approximately NT$140 million.
|Energy and Resource||Budget (NT$ million)||Annual Performance (NT$ million)||Percentage|
Note：The "Other" category includes water resources, wastes, nitrogen and compressed air system
FENC continues to promote various energy conservation and carbon reduction measures with 95 projects implemented in 2018. Improvement on the equipment is the main focus for energy conservation, with electricity as the priority for energy conservation. Investment in carbon reduction saw a yearly increase of NT$220 million in 2018. The main reason is the replacement of conventional dyeing machine with low liquor ratio dyeing machine for the Textile Business.
|GHG Emission Avoidance （t-CO2e）|
|Type||Scope 1||Scope 2|
|GHG Emission Avoidance（t-CO2e）||166,252||153,751||89,195|
|Purchased Green Power||0||0||0||1||1||1||0||0||0||1||1||1|
|Coal Water Mixture||63||28||11||2,389||2,212||2,285||104||140||107||2,556||2,380||2,403|
►Energy Consumption per Unit of Production
|Unit：GJ/metric ton of product|
Note：The Textile Business does not include FEAZ and FEAV.
Total energy consumption dropped during 2018. The main factors are the closing of FEIZ and decrease in spun yarn production. OPTC and Hsinpu Chemical Fiber Plant increased production lines and therefore increased energy consumption. An analysis of the energy consumption per unit of production indicates that energy consumption per unit of production increased in Polyester Business mainly because of Hsinpu Chemical Fiber Plant, where the new production line yet to be optimized for energy consumption. Adjustments made in product mix at Hsinpu Chemical Fiber Plant and FEIS are also contributing factors. The Petrochemical and Textile Businesses saw an increase in the efficiency of energy usage, and decrease in energy consumption per unit of production.
FENC is vastly concerned about water resources management. In 2018, the Company established water withdrawal reduction goal and adopted various measures for water resources management, including the review of water resources efficiency for daily operation. In addition to documenting the meter readings on a daily basis, the Company also evaluates and examines water withdrawal and water conservation during monthly meetings, and devises solutions and improvement plans to fully utilize water resources information and reduce unnecessary waste. The Company also conducts regular maintenance, adopts new manufacturing technology, increases recycling and reuse of water resources, and documents water related statistics in detail in order to lower the consumption of water resources and continuously enhancing the management of water resources.
FENC takes the governmental policies, corporate development and industry changes into consideration when planning for water resources consumption. In addition, the Company also takes into account neighboring residents’ needs for water resources to reasonably and effectively allocate and management the use of water resources. The water withdrawal and the approach used pose no negative effects to the neighboring residents and the natural habitat near the water source.
While conducting environmental impact assessment prior to plant construction, the second plant of OPTC made the commitment of treating domestic reclaimed water as one of the major water sources once Taoyuan Reclaimed Water project is completed in 2024. This plant is the first in Taiwan to make such commitment, and the use of reclaimed water will reduce operating risks associated with water shortage.
In 2018, FEDZ and Kuanyin Dyeing and Finishing Plant replaced a total of 29 conventional dyeing machines with low liquor ratio dyeing machine, which account for 22% of the total makeup. The replacement will conserve approximately 657,000 kL of water per year, and minimize the environmental impact from the dyeing process. This plant adopts the latest green production process and recycles wastewater, reducing water consumption by approximately 771,000 kL per year.
|River, Lake and
|Well Water and
►Water Withdrawal per Unit of Production
Unit: kL/metric ton of product
Note：The Textile Business does not include FEAZ and FEAV
Water withdrawal for Petrochemical Business and Polyester Business increased in 2018 mainly because of increased production capacity at OPTC and Hsinpu Chemical Fiber Plant. An analysis indicates that water withdrawal per unit of production at OPTC decreased due to the water conservation effect of the new production process. Water withdrawal per unit of production for Polyester Business saw an increase, which is mainly because of changes in product mix at Hsinpu Chemical Fiber Plant.
|Percentage to Water Withdrawal|
Note：Water saved is calculated by before the project with the same facility and same production procedure.
In 2018, the main focus of water conservation for the Textile Business is at FEDZ and Kuanyin
Dyeing and Finishing Plant. The conventional dyeing machine were replaced with low liquor ratio dyeing machine in both plants, and Kuanyin Dyeing and Finishing Plant purchased the water free dyeing machine. For the Petrochemical Business, the second plant of OPTC launched the wastewater recycling and reuse campaign.
►Percentage of Water Recycled and Reused
Note：Percentage of water recycled and reused = total water recycled and reused ÷ (total water withdrawal + total water recycled and reused) ×100%
►Percentage of Water Recycled and Reused (Excluding Circulating Water)
Note：Percentage of water recycled and reused (excluding from circulating water) = (total water recycled and reused – circulating water ) ÷ (total water withdrawal + total water recycled and reused – circulating water)×100%