The overall energy consumption at FENC dropped by 12% from the previous year and the energy consumption per unit of production fell by 8%. The significant decrease is a testimony to the success in energy management at FENC, which implemented a total of 113 projects for the year to improve energy efficiency. The projects include production improvement, equipment enhancement and energy management. The Company will extend this approach, maximizing energy efficiency through a mix of energy conservation projects.

Energy Management System and Establishment

Energy Consumption in 2023

FENC’s total renewable energy use in 2023 amounts to 939 TJ, which accounts for 5% of its total energy consumption during the year. Of the total electricity consumption, 11.1% is renewable electricity. At the Textile Business, this percentage goes up to 18.6%.

Energy Consumption per Unit of Production

Unit: GJ / metric ton of production

Energy Consumption

Unit: TJ

Internal Energy-Saving Incentives

1. Far Eastern Energy Award
   To excel further in energy management, FENC is aware of the need to encourage collaboration among its affiliates. By learning from one another, these corporate entities may acquire energy conservation approaches that will inspire technological advancement and increase energy efficiency. Since 2005, the Far Eastern Group has been presenting Far Eastern Energy Awards to encourage and recognize excellence in improving energy conservation technologies and practices. In 2023, FENC submitted 21 projects, accounting for 39% of the total entries. Among them, the Energy Conservation Improvement of Tire Cord Fabric Production from OTIZ under FENC’s Textile Business was recognized by Far Eastern Group with the award as a project of excellence.
2. Incorporation of Energy-Saving Performance Into Remuneration
   Starting in 2016, a number of production sites have established Regulations Governing Energy Efficiency Rewards, which officially incorporates energy conservation performance into the evaluation criteria in the bonus system.

Incorporation of Innovative Technology and Equipment

1. Apply AI in Energy Management
   As the 5G and AI technologies flourish and the world races towards net zero emissions, digital transformation and smart evolution are inevitable paths ahead of the manufacturing industry. FENC has committed tremendous energy into the development and application of such development. With digital transformation as the strategy, FENC production sites have gradually incorporated Industry 4.0 and used AIoT to elevate the efficiency of quality forecast and energy management to build smart factories.

Smart Manufacturing

Avid Support for Governmental Policies

FENC production sites in Taiwan subject to the 1% energy reduction mandates for energy-heavy industries from the MOEA have been reporting energy conservation rates on a regular basis. The policy period is extended to 2024. In the past nine years, all production sites have delivered higher energy-saving rates than the regulatory requirements.

Energy-Saving Rate at Production Sites in Taiwan

Note: Since 2015, the annual electricity saving rate has exceeded 1%.