CSR-Environment

>CSR>Environment>Energy and Resources Management
Energy and Resources Management
  • Energy Management and Energy Task Force
  • Energy and Resource Reduction Goal
  • Energy Conservation Special Budget
  • Energy Conservation and Carbon Reduction
  • Energy Consumption
  • Water Resource Management

Energy Management

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

  • Establish a designated unit responsible for energy management and hold regular meetings for follow up and review.
  • Build systems for energy management and set energy conservation goals.
  • Set plans and procedures in place for energy conservation and carbon reduction.
  • Enhance awareness of energy conservation through publications and case studies on energy conservation and discussions with experts.
  • Track the performance of energy conservation projects, which will be references for compensation and incentives.
  • Promote certification related to energy management.

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.

Energy Task Force

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.

►Energy Task Force Structure and Duty

能源小組架構圖
Note: The issues and projects managed by Energy Task Force include energy, water resources and wastes.

►Energy and Resource Reduction Goal


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.

►2019 Special Energy-Saving Budget and Performance 

Energy and Resource Budget (NT$ million) Annual Performance (NT$ million) Percentage
Electricity 390 90 64%
Fuel 90 30 21% 
Other 390 20 15% 
Total 870 140 100%

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.

►2018 Energy Conservation and Carbon Reduction Projects

►2018 Energy Conservation and Carbon Reduction Performance

Performance Energy Conservation
(TJ)
 
GHG Emission Avoidance  (t-CO2e)
Type Scope 1 Scope 2
Project Improvement on
Production Process
230  6,641  17,181 
Improvement on
Equipment
337  98  50,878 
Energy Management 92  14,397 
Business Petrochemical 57  9,602 
Polyester 385  1,311  58,029 
Textile 217  5,428  14,825 
Total   659  6,739  82,456 

Note:

  1. Performance on energy conservation is an estimate derived from comparison to pre-project energy conservation with original production process and equipment.
  2. The calculation of heating value is based on the heating value coefficients from all production sites
  3. GHG emission factors: GHG emission factors in Taiwan are based on “GHG Emission Factors” version 6.0.3 from Bureau of Energy, MOEA and Environmental Protection Administration. GHG emission factor for electricity is 0.554 t-CO2e/1000 kWh and 0.1518 t-CO2e/t for steam. Calculation of GHG emission factors for electricity in China is based on the local electrical grid. The remaining calculation is based on “Guidelines on Accounting and Reporting Greenhouse Gas Emissions – China Petrochemical Enterprises (Trial)”. The GHG emission factor in Vietnam is 0.57 t-CO2e/1000 kWh
  4. Scope 1 includes diesel, natural gas and coal water slurry; Scope 2 includes purchased electricity and purchased steam.
  5. GHG includes CO2、CH4、N2O、PFCs、HFCs和SF3

►Energy Conservation and Carbon Reduction Performance

Year 2016  2017  2018 
Category
Actual Investment(NT$1,000) 384,486  239,134  454,498 
Savings(NT$1,000) 156,618  106,466  143,379 
Energy Conservation(TJ) 1,193  1,422  659 
GHG Emission Avoidance(t-CO2e) 166,252  153,751  89,195 

 

 Simplified High Viscosity Solid State Polymerization System

To produce polyester chip products at Hsinpu Chemical Fiber Plant, reheating was required in the original manufacturing process to increase viscosity for solid state polymerization. To conserve energy, Hsinpu Chemical Fiber Plant optimized the reactor design and dramatically increased the viscosity of the melts, while changing the pellet form and maintaining the temperature of the finished product. This modification in the manufacturing process was launched in 2018. The energy required for reheating is no longer required after this modification. The new process saves 10,861,000 kWh/year in electricity, and reduces GHG emission by approximately 6,017 t-CO2e per year.

Note:The emission factor for the calculation of GHG emission of electricity is 0.554t-CO2e/1,000 kWh.

 

 Recycling and Reusing Excess Heat from Production

The steam boiler at OPTC creates high pressure steam, which is used toward tail gas oxidation and preheating the slurry purification system. To reduce energy consumption for the steam boiler, OPTC utilizes excess heat from the manufacturing process to increase tail gas temperature and effectively allocate thermal energy to reduce energy consumption. This project saves 1,800 cubic meters of natural gas per year, and NT$13.93 million in costs per year.

 

 Pressure Filter Tail Gas Capture Project

In the past, OPTC discharged the tail gas from pressure filters directly into the atmosphere, which generates massive amount of pressurized (3 barg) tail gas and noises. Another equipment, the oxidation dryer, requires large amount of low-pressure (1 barg) tail gas to convey the products after drying. Typically, this process involves depressurizing high-pressure (7.5 barg) tail gas to serve the purpose. However, if the tail gas from pressure filters can be captured and reused, the high pressure tail gas can be conserved generate power for the expander, which reduces costs and minimizes waste of resources.

Hence, OPSC devised an innovative approach to recover the tail gas, which is to install de-watering purification system onto the pressure filter and send the tail gas to the air supply of oxidation dryer after cooling, de-watering and drying. This design also reduces air and noise pollution, fulfilling the goals of energy conservation, recycling as well as reusing resources. The project saved approximately 3 million kWh of electricity per year, reduced 2,415 t-CO2e in GHG emission per year, and saved NT$10.2 million in annual costs.

Note:The emission factor for the calculation of GHG emission of electricity is 0.805t-CO2e/1,000 KWh.

 

 Installing Permanent-Magnet Synchronous Motor on Fan Coil Unit and Return Air Fan

The fan coil unit/return air fan at Hukou Mill had been running for nearly 30 years. The motor is operating on low efficiency with high power consumption. In 2018, the plant replaced all of the 138 motors with permanent-magnet synchronous motor (PMSM). The replacement reduces energy consumption by 10%, which translates to approximately 1.16 million kWh in energy conservation and GHG emission reduction by approximately 642 t-CO2e/year with a decrease in costs by NT$2.55 million per year.

Note:The emission factor for the calculation of GHG emission of electricity is 0.554t-CO2e/1,000 KWh.

 

►Energy Consumption in 2018

►Energy Consumption

Unit:TJ 
Business Petrochemical Polyester Textile Total
Year 2016 2017 2018  2016  2017  2018  2016  2017  2018  2016  2017  2018 
Energy Type
Purchased Power 1,006  1,046  875  2,839  2,841  2,965  2,033  2,081  1,938  5,878  5,968  5,778 
Purchased Green Power
Self-generated
Green Power
19  30  24  34 
Electricity 1,006  1,046  875  2,841  2,847  2,970  2,040  2,100  1,968  5,887  5,993  5,813 
Natural Gas 2,770  2,913  3,264  1,225  1,396  1,341  1,158  1,146  810  5,183  5,455  5,415 
Heavy Oil 250  284  397  44  57  72  294  341  469 
Fuel Oil
Coal 1,048  990  1,071  91  81  77  1,139  1,071  1,148 
Coal Water Mixture 63  28  11  2,389  2,212  2,285 104  140  107  2,556  2,380  2,403 
Ethylene Tar  0  0 0
Purchased Stream 331  393  337  443  424  400  774  817  737 
Total 3,839  3,987  4,150  8,114  8,122  8,401  3,880  3,954  3,434  15,833  16,063  15,985 

Note:

  1. Above figures are energy consumption for production procedure.
  2. Heating value is based on heating value coefficient at each production site.
  3. Energy consumption outside of the organization is not included.

►Energy Consumption per Unit of Production

Unit:GJ/metric ton of product

平均能源密集度

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.

►Water Withdrawal in 2018

►Water Withdrawal

Unit:1,000 kL 
Business Petrochemical Polyester Textile Total
Year 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018
Type
Tap Water 7,483  7,099  6,340  1,853  1,735  1,880  1,462  1,407  1,249  10,799  10,241  9,469 
River, Lake and
Creek Water
1,406  1,316  3,467  840  880  1,027  2,792  2,388  1,802  5,038  4,584  6,295 
Well Water and
Groundwater
15  1,814  1,516  1,682  309  257  201  2,123  1,774  1,898 
Rainwater 209  22  64  48  133  64  257  155 
Total 8,889  8,624  9,844  4,507  4,131  4,589  4,627  4,100  3,385  18,023  16,855  17,818 

►Water Withdrawal per Unit of Production

Unit: kL/metric ton of product

平均水密集度

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.

►Outcome of Water Saving Project in 2018

Outcome Investment
(NT 1,000)
Water Saved
(kL/year)
Percentage to Water Withdrawal
Business
Petrochemical 99,830 843,636 9%
Polyester 3,750 135,660 3%
Textile 274,769 821,292 24%
The Company 378,349 1,800,588 10%

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

 
Year 2016 2017 2018
Business
Petrochemical 98% 98% 98%
Polyester 99% 99% 99%
Textile 86% 91% 92%
The Company 98% 98% 98%

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)

 
Year 2016 2017 2018
Business
Petrochemical 17% 17% 18%
Polyester 17% 18% 16%
Textile 49% 55% 59%
The Company 29% 31% 31%

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%

 

 Installing De-Fogging System on Cooling Tower

The cooling tower at OPTC generates white fog during the cooling process. The fog is especially noticeable when the atmospheric temperature drops. The public often misconstrues the innocuous vapor as pollutants, and therefore views OPTC through a negative lens. Aside from the negative impression, the vapor could have been recycled and reused. Not pursuing such option would result in the waste of water resources.

In light of this, OPTC installed the de-fogging system for the cooling tower to collect and conserve water. By drilling holes on the wall, the system introduces cold air that mixes with hot air to form droplets and reduces the moisture content in the air, thereby preventing fogging. The condenser then collects the droplets to be reused. The system was installed on one cooling tower in 2018, and has collected 42,336 kL of water in one year, which is 8% recycling rate. The system also reduced fogging by 50%. Five additional towers will be equipped with the de-fogging system in 2019


De-fogging System (left) on the cooling tower reduced the white fog.

 

 Replacing Underground Pipes with Exposed Pipes to Minimize Leakage

OTIZ was originally built with underground pipes. Over the years, because of sedimentation and aging infrastructure, the occurrences of leakage are often undetected until damages are done because the pipes are buried underground. In September 2018, OTIZ replaced 2,100 meters of underground pipes with exposed pipes. Once installed, the new pipes saved approximately 24,000 kL/year, which translates to a saving of NT$690,000 in costs.

 

Contact Information

TOP