NEDO and three collaborators exceed efficiency targets in China energy scheme using energy management system and energy-saving equipment

With a view to promoting and disseminating energy technologies and systems around the world, the New Energy and Industrial Technology Development Organization (NEDO), Yokogawa Electric Corporation, the Japan Research Institute, Limited (JRI) and Tokyo Electric Power Company Holdings, Incorporated (TEPCO), conducted an energy efficiency demonstration project in Guangdong Province, China, from October 2017 to March 2021. As a result of implementing a unique energy management system (EMS) and installing new, energy-efficient equipment, 11,432 kiloliters of crude oil equivalent was saved per year, exceeding the target amount. It was also revealed on March 23 that the project also achieved a reduction of 30,781 tons of CO₂ emissions. Improvements to the production process also accounted for cost savings of 206.4 million yen annually.

The four entities not only replaced some equipment in China's biggest textile spinning mill factory and one of its largest aluminum product factories with more energy-efficient devices, they also implemented, tested and proved the effectiveness of their EMS in the factories. The EMS controls energy demand and supply and improves energy efficiency, leading to significant energy savings.

Based on the findings of the demonstration project, NEDO will advance the promotion of energy technologies and systems in China and support further energy savings and productivity improvements.

Having reached the status of the world's No. 1 energy consumer, China has now made energy conservation a top priority policy. The policy is highly influential, with the National Development and Reform Commission already setting high energy-efficiency targets for energy-intensive players such as heavy and chemical industries like petrochemicals, papermaking and textiles, manufacturers such as metalworking, electronics and car makers, and operators of buildings such as hospitals.

Given the surging concern for energy conservation in China, NEDO has enlisted the assistance of foreign government and public organizations to launch projects to demonstrate the effectiveness of Japanese energy-saving technologies and systems in the country. It aims to promote them overseas on behalf of Japanese companies.

As part of this initiative, NEDO and three private sector entities - Yokogawa Electric Corporation, the JRI and TEPCO - launched a project with two Guangdong Province factories, Pacific Textiles Holdings Limited (textiles) and Guangdong Huachang Aluminum Co., Ltd. (aluminum products), to replace some of their existing equipment with highly efficient new equipment. They would also implement, test and validate the Factory Energy Management Platform (FEMP), a concept developed by the JRI to control energy supply and demand, such as factory electricity and steam to achieve significant energy savings and productivity improvement. The demonstration project began in 2017.

In terms of energy savings, the project saved 11,432 kiloliters of crude oil equivalent per year, exceeding the target by 3.4%. It also resulted in reducing 30,781 tons of CO₂ emissions, 5.4% over the target.

Pacific Textiles then optimized its operations in line with operating guidance from August 1, 2020, achieving an annualized CO₂ emission reduction of 11,228 tons by October 20. In crude oil equivalent, the company achieved a reduction of 3,407 kiloliters. The factory achieved follow-up rate of 90% or more during the period when the optimal operations was set to 100%.

Furthermore, from July to August 2020, Pacific Textiles embarked on updating its production processes based on analysis of their energy consumption in order to maximize production efficiency. By thoroughly sharing task know-how and preemptively eliminating equipment defects, a total saving of 12.9% was achieved. The production process improvements equated to 12.9 million RMB/year, or around 206.4 million yen/year (1 RMB=16 yen).

Yokogawa Electric, JRI and TEPCO will conduct seminars and tours of the demonstration sites in an effort to promote the introduction of the EMS in China.

NEDO will also support initiatives to commercialize the technology in China, by hosting exhibits about the demonstration project at technology shows and holding briefings on the results.