joint UNDP/World Bank Energy Sector Management Assistance Program KENYA ENERGY EFFICIENCY I N THE TEA INDUSTRY VOLUME I A REPORT BY CONSULTANTS MAY 1987 Household Energy Division Energy Department The World Bank Washington, D.C. 20433 FOREWORD The Energy Assessment report on Kenya, A/ issued in May 1982, identified the country's dependence on costly imported energy as one of two major issues in the energy sector, the other being deforestation and the consequent decline in fuelwood supply. Subsequently, the Government of Kenya requested assistance from the Joint UNDP/World Bank Energy Sector Management Assistance Program (EsMAP) to evaluate the potential for increasing the efficiency of energy use in the industrial sector and in the tea industry, two major consumers of imported fuels. This evaluation was to include both measures to conserve on the use of energy and to substitute less costly fuels, including imported coal and indigenous biomass fuels. This report, and a companion document, " ~ e n ~ a : Coal Conversion, Energy Conservation and Substitution Action plan", present the results of that evaluation. The report was prepared by a team of consultants, led by the firm of Macdonald Wagner, in association with Merz and McLellan and Partners, Gavan McDonell and Company, Coopers and Lybrand W.D. Scott, Forestry Technical Services Pty. Ltd., and I.A. Gilmour of the University of Canterbury, New Zealand. Funding for the bulk of the consultants' services was provided by a grant from the Australian Development Assistance Bureau. The consultants were supervised jointly by ESMAP staff and the Government of Kenya. Two points should be noted about the report. First, it is based on analyses of energy conservation and substitution options performed in 1985, prior to the collapse in world oil prices. Second, average biomass fuel costs, not location-specific supply and cost estimates, were used for the prefeasibility analysis of potential biomass substitution projects. The consultants' findings therefore must be interpreted carefully before projects are selected for feasibility analysis. This requires: (a) use of the report's fuel price sensitivity tests and economic fuel cost analysis to screen potential conservation and substitution investment projects for consistency with expected future energy prices and economic costs; and (b) identification and costing of specific fuelwood and/or other biomass fuel supplies for any project involving the substitution of fuelwood or other biomass for conventional fuels. The report presents the consultants' findings and does not necessarily represent the views of either the Government of Kenya, the UNDP, or the World Bank. It has been distributed to the Kenyan authorities and to selected donor agencies. Further copies of the report are available on request. -1/ IIKenya: Issues and Options in the Energy Sector," Report No. 3800KE of the Joint UNDP/World Bank Energy Sector Assessment Program, May 1982. TABLE OF CONTENTS VOLUME I Page GLOSSARY OF TERMS........................................i EXECUTIVE SUMMARY.......................................1-1 1.1 Overview ...........................................1-1 1.2 Introduction and Energy Cost Background in Kenya...1-2 1.3 Principal Findings.................................1-5 1.4 Recommended Action Plan............................1-7 INTRODUCTION............................................2-1 2.1 Objectives and Terms of Reference..................2-1 2.2 Relationship to Kenya Coal Conversion Action Plan Project.....................................2-2 2.3 Acknowledgements...................................2-2 TEA INDUSTRY BACKGROUND.................................3-1 3.1 The Kenyan Tea Industry............................3-1 3.2 The Kenya Tea Development Authority................3-3 3.3 The Private Sector.................................3-8 ENERGY AUDIT PROGRAM....................................4-1 4.1 Approach and Methodology...........................4-1 4.2 Factory Officers' Seminar..........................4-2 4.3 Work Program.......................................4-3 POTENTIAL FOR ENERGY CONSERVATION.......................5-1 5.1 The Pattern of Energy Consumption in the Industrial Sector................................5-1 5.2 The Energy Supply Position.........................5-2 5.3 Energy Demand Policy...............................5-8 5.4 Delivered Energy Costs.............................5-15 5.5 Energy Conservation Potential......................5-15 ENERGY EFFICIENCY IMPROVEMENTS..........................6-1 6.1 Target 1 Setting...................................6-1 6.2 Target 2 Setting...................................6-4 6.3 Withering and Drying...............................6-5 6.4 Electricity ........................................6-9 6.5 Green Leaf Collection..............................6-12 6.6 Made Tea Packaging. Transport and Marketing ........6-16 Page POTENTIAL FOR SUBSTITUTION OF OIL BY INDIGENOUS ENERGY RESOURCES ...................................... 7.1 Environment and Incentives .........................7-1 7-1 7.2 Biomass (~uelwood)as an Energy Source .............7-1 7.3 Biomass Residues ...................................7-3 7.4 Biomass Combustion .................................7-4 7.5 Hydroelectricity ...................................7-6 7.6 Solar Energy .......................................7-6 FUNDABLE PROJECTS .......................................8-1 8.1 Introduction .......................................8-1 8.2 Methodology for Initial Financial Analysis .........8-1 8.3 Projects Identified ................................8-2 8.4 Sensitivity Testing ................................8-7 8.5 Implementation of Recommended Projects .............8-18 ACTION PLAN .............................................9-1 9.1 Energy Management Program ..........................9-1 9.2 Achieving the Targets ..............................9-6 9.3 Model Tea Factory ..................................9-9 APPENDIX A . ExecutiveSummariesfromIndividualAuditReports Chebut Tea Factory Co . Ltd..............................A-2 Chinga Tea Factory Co . Ltd..............................A-10 Gathuthi Tea Factory Co Ltd ............................A-18 Githongo Tea Factory Co Ltd .. ............................A-26 Ikumbi Tea Factory Co Ltd . ..............................A-34 Iriaini Tea Factory Co Ltd Kambaa Tea Factory Co..Ltd..............................A-50 .............................A-42 Kanyenyaini Tea Factory Co . Ltd.........................A-57 Kapset Tea Factory Co. Ltd. ..............................A-64 Kiamokama Tea Factory Co Ltd ...........................A-72 Kimunye Tea Factory Co.Ltd.............................A-80 Kinoro Tea Factory Co Ltd Litein Tea Factory Co Ltd Mataara Tea Factory Co Ltd Mungania Tea Factory Co Ltd .... ..............................A-88 ..............................A-96 .............................A-103 ............................A-111 Ndima Tea Factory Co Ltd . ...............................A-118 N~ansiongoTea Factory Co Ltd ................................ ..........................A-125 Tegat Tea Factory Co Ltd . Thumaita Tea Factory Co Ltd . ............................A-133A-142 VOLUME I1 (bound separately) APPENDICES Glossary of Terms.......................................A-1 Tea Industry Energy Usage Data Base.....................B-1 Biomass as an Energy Source for the Tea Industry........C-1 Supplies and Prices of Fuels............................D-1 Indigenous and Byproduct Fuels..........................E-1 Initial Evaluation of Projects..........................F-1 Biomass and Wood Firing Technology Review...............G-1 Oil Firing Technology Review............................H-1 Operation and Maintenance of Steam Systems..............1-1 Tea Factory Audit Program...............................J-1-1 Energy Survey Questionnaire.............................J-2-1 Factory officers' Seminar...............................J-3-1 Units used throughout tkis report &om to the Systan Internationale (SI)using the following standard abbreviations and conversion factors. Where other units are used they are explained in the text. Abbreviations Meaninq GOK Govemnt of Kenya ADAl3 Australian Developt-ent Assistance Bureau IBRD World Bank (International Bank for Reconstruction and Developmt) IEA International Energy Agency IFC International Finance Corporation IMF International Monetary F'und KPLC Kenya PokRr and Lighting Ccanpany KTm Kenya Tka Eevelo~tAuthority MOERD Ministry of Energy and Regional Developnent UNDP United Nations Developtlent Prqramw Consultants Macdonald Wagner Pty Ltd inassociationwith Merz & McLellan & Partners, Gavan McDonnell and Cchnpany, Coopers & Lybrand W D Scott (formerlyW D Scott & Co), Forestry Technical Services Pty Ltd, and I.A. GiImour, University of Cante.rkry, N.Z. Target 1 Energy savings target achievable,based on (ShortTkm) conservation measures which could be taken a h s t imrrediately with minimum engineering input and, in general, minimum capital investment. Typically, such measures muld shm a sinple payback of under one year and d include basic hause-keeping and correct operating and maintenance practices. Target 2 Energy savings target achievable based on (LongTknn) conservationm s m s which could be taken, w i t happropriate planning and engineering input and the expectation of capital invesmt in new or imp- plant or pmcesses or a mre econanic energy source, and which muld give an acceptable econanic and financial rate of retum, (i.e.greater than 15% real). Energy Intensity The ratio of energy munnption to production, typically expressed in units of gigajdes per tonne of product (GJ/t). Also referred to as specific energy consumption. GSE Gross Specific Energy, msured in W/t. GSE is used throughout this report. Net Specific Energy may be obtained by subtracting the latent heat of vaporisation of water formed in the canbustion reaction, which is a function of the hydrogen cantent of the unbumt fuel. Typically, the ratio Net/Gross Specific Energy is about 0.94 for RFO and 0.98 for coal. Financial Year (1 July 1984 - 30 June 1985). Calendar Year (1 J a n q 1985 - 31 Decendser 1985). lbistm content m t basis Air- Terms Meaninq Fuelmod Any cdustible d y material, e.g. from trees, shrubs, coffee husks, etc. wood Fuelwood from trees Load factor Ratio of average electricity demand to maxirmrm demand. Maximum demnd, expressed as kVA, is the highest rate of electricity energy usage in any twenty minute interval during the meter reading period, which is typically 30 days. Maji Abiria Moisture entering with dryer inlet air and causing a loss of efficiency, literally meaning in Kiswahili "a passenger". (Normal English usage - "trampmoisture".) Hewa Abiria Air leakage into a furnace which serves no purpose and causes a loss of efficiency. Made tea, i.e. final product. Green leaf, as plucked and sold to the factory . LPG Liquified Petroleum Gas GLN Gasoline (petrol) ID0 Industrial Diesel Oil RFO Residual Fuel Oil GAO Gas Oil FBD Fluidised bed dryer ECD Extended Chain dryer, or tray dryer. Units Meaninq A Amps (electricalcurrent v Volts (electricalpressure) kV W Watt (electricpower) Units kilowatts = 10% kilovolt Amp kilovolt Amp (reactive) kilokatt h m = 3-6MJ Megawatt hours = 103 kWh = 3.6 GJ bar bar (pressure) kPa kilopascals (pressure) Joule (energy)= 1W.s kilojoule = 103 Joules Megajoule = 106 Joules 9 Gigajoule = 10 Joules = 278 kWh 'Erajoule = 1012 Joules kilogram (miss) tonne = 103 kg Litre (velum) kilolitre = 103 L = Im3 Megalitre = 10 L = 1000 m3 6 centipise (viscosity) second (time) min minute = 60 s hour = 60 min mum (year)= 8760 h metre square metre cubic metre Units EEE@ h kilanetre h2 square kilanetre ha hectare 0 C degrees Centigrade toe tames of oil equivalent ( = 41.868 GJ) IEA Standard tce tonnes of coal equivalent ( = 23.446 GJ) IEA Standard Msaninq Kenya Shillings kKSh Thousands of Kenya Shillings = 103 XSh MKSh Millions of Kenya Shillings = 106 XSh $ United States ~ o l l a r s $A Australian Dollars Conversion Factors - Imp=rial to SI (metric) Imperial Conversion Quantity EE!ixI Units Imperial to S I A r e a square foot it2 0.092 903 m2 sq~arew Yd2 0.836 127 m2 Density p o u n d s p e r c u . f t . l b / f t 3 16.0185kg.m-3 mergY B r i t i s h Thermal Btu 1.055 06 kJ Unit Flow gallon per minute gpn 0.075 768 L.s-' Heat value Btu per cu.ft. mu/ft3 37.258 9 m.m3 B t U Per pound Btu/h 2326 ~ . k g - l Heat flow Btu per hour Btu/h 0.293 071 W Conversion Factors - Inwerial to SI (metric) (Cont'd) -Vm inch in 0.0254m foot ft 0.304 8m Mass Mass flow pounds per hour lb/h 0.000 126 kg.s-' Pressure bar bar 100 kPa pmds per sq. in. lb/sq.in 6894.76 Pa inch of water "F3 248.642 Pa inch of mercury "W 3386.39 Pa Refrigeration capacity tan Wnprature degree Fahrenheit OF 1273 + 0.556 (F-32)]OK Volm~ cubic foot ft3 0.028 316 8m3 cubic yard Yd3 0.764 555 m3 gallon gal 4.546 litres Velocity foot per sec ft/s 0.304 8 m.sel miles per hour @ 1.609 34 km.h-l Enerqy Conversion Factors meqy Source Gross Specific Density m e s of Oil m e w 3 Fquivalent kg/m toe Coal 1130 Charcoal NA *Wood 20% mm7b 496 (solid) 30% " 527 (solid) 40% " 565 (solid) 50% " 609 (solid) 60% " 661 (solid) 70% " 722 (solid) Animal waste NA Bagasse (30%misture) 115 Coffee husk NA Cotton seed husk NA Flax NA Jute sticks NA Leather shavings NA Maize cobs NA Municipal waste NA Nut shells NA Palm shell NA Palm shell & fibre NA Palm stalk NA Rice husks NA Spent tan bark NA Straw NA Sunflower husk NA Liquified Petroleum Gas (LPG)- Propane Petrol (GLN) Kerosene/jet fuel (DPK) Gas oil (GAO) Industrial diesel (ID01 Fuel oil (RED) Electricity 1 MWh * Note 1 cubic metre stacked mod 0.6 cubic mtre solid volume. : = 1.1 Overview Tea production represents a very significant part of the Kenyan economy, with 55 percent of total production of made tea caning from 36 tea factories operated by a small number of major corporations in the private sector while the balance of 45 percent derives f m over 150,000 smallholder growers who collectively form the Kenya Tea Developwnt Authority (KTDA) which oversees the operations of 39 factories. The KTDA, which is the subject of this report, is regarded as one of the most successful smallholder operations in the mrld. It has a high standard of management, both central and at factory level, and its achievemnts in its short life are impressive. However, its energy performance is belaw what could be achieved in the light of today's fuel prices and energy managanent practices. The KTDA exists alongside the older established private sector estates which, on the whole, occupy the better tea growing land. KTDA's tea growing and collection practices, based on smallholder operation, differ considerably from those of the large estates although tea processing techniques are essentially similar. However the KTDA aims for the lower yielding but higher quality sector of the market. The older of the KTIIA's 39 factories were in general built when fuel costs were low, capital was scarce, and extra expenditure on energy efficiency measures was unwarranted. Instrumentation and control in energy systems were, and still are, the exception rather than the rule. Although the situation on energy pricing and availability in the last 15 years has changed dramatically, attitudes on the whole have not. However, as shmn in this report and the associated energy audit reports, opportunities for energy conservation are substantial. Although a few of the KTDA factories rely on wood, which is almost universal in the private sector, the majority use fuel oil. Current land and supply pressures are such that conversion f m fuel oil to fuelwood has not been an easy problem to address. This report presents the overall econdc findings together with the results of same 19 energy audit reports and associated prefeasibility studies identifying potentially profitable investment projects to improve the efficiency of energy use. The projects are categorised and, in general, can be applied appropriately to virtually all factories. A particular requirement of the brief was the examination of the potential not only for reducing energy use, but also for substituting indigenous biomass resources for imported fuel oil. Although there are expected to be considerable difficulties in securing assured supplies of fuel- for same factories, attractive opportunities do exist using either existing forestry resources or essentially purpose grown plantations plus the output from extended smallholder activity. There is also potential for the effective use of biomass residues such as sawdust, coffee husks and even forest thinnings. For fuelwood supplies to be enhanced, however, significant government stimulus, forestry management effort and fuelmod pricing policies need to be considered. Nevertheless it should be noted that the demand for fuel by the tea industry is a very small fraction of the werall demand (for fuelwood) in Kenya frum the domestic sector. The energy audit reports have identified energy savings under two broad headings, Target 1 - short term, representing improvements that can be made with limited investment and short pay back periods, and Target 2 - long term, representing energy saving investments in imprwed plant and processes. Conservatively, some 17% of KTRA's energy could be saved under the Target 1 progrm showing paybacks averaging betwen 1 and 2 months. The majority of the funding for this programne wuld be expected to be sourced £rum the normal factory operating and maintenance budgets. The simple economic paybacks for the various Target 2 projects identified by the prefeasibility studies range frum 0.3 years to 3 years. Taking all the recamnended T2 projects together, the simple economic payback is 1.3 years. These quick payback periods indicate that the mre rigorous financial and economic rates of return analyses required at the full feasibility level are unlikely to exclude any of the projects proposed and may, in fact, identify additional projects. The individual projects proposed are of low risk, although same of the fuelwood conversion projects naturally depend upon obtaining assured supplies. As described in the canpanion report entitled "Kenya Coal Conversion, Energy Conservation and Substitution Action Plan", the Ministry of Energy and Regional Developnent (MOERD)is encouraged to continue developnent of the Kenya Industrial Energy Management Progrm (KIEMP). One of the strongest recmdations of this report is that the KTDA, within the broad guidelines of the KIEMP and with assistance fram the MOERD, establish the KTIlA Energy Management Pmgramne. Even though same outside assistance and energy management experience is warranted in support of the KTDA's efforts, the establishment of its own vigorous and self managed program will be essential to enable the KTDAto achieve its energy targets and, mre importantly, train its own generation of ccunpetent and mtivated energy managers. 1.2 Introduction and Enemy Cost Background in Kenya 1.2.1 Project Report This report on Energy Efficiency in the Tea Industry is in 21 volumes consisting of: Volume 1 - this document which contains 9 chapters volume 2 - which contains 11 appendices, and . 19 energy audit reports which are individually bound. The report was prepared during 1985, covering the field wrk phase, and 1986, the analysis phase, by the consulting team under the direction of the UNDP/World Bank Energy Sector Management Assistance Programne (ESMAP). The Bank prepared the Activity Initiation Brief for the project which was, in large part, funded by the Australian Developnent Assistance Bureau (-1. 1.2.2 Project Objectives The primry objectives of the project ere to identify the potential for and the means to achieve meaningful reductions in energy consumption and economic inter-fuel substitutions in the existing and planned KTIlA factories. Associated objectives included advice on the impact of improved feeder roads and on transportation, containerisation and bulk handling options available to the Authority, and identification of associated policy and investment issues to be addressed by the Government of Kenya. 1.2.3 Kenyan Tea Production Kenya produces approximately 130,000 tonnes annually of mde tea. As noted earlier, just under half is grown by mre than 150,000 small fanners and processed through 39 factories operated by the KlDA while the balance is grown by large, generally internationally owned, tea estates. In the KTDA system green leaf is picked by the growler, transported quickly to the factory to avoid premature fermentation, withered to reduce misture content, cut finely, fermented, dried, sorted and packed. The main energy using processes in the production of mde tea are withering and drying after ferntation. The principal sources of factory energy are electricity, fuel oil and fuelwood. Electricity is used for drives, lighting and small per. Fuel oil is used in boilers or air heaters for drying in 18 factories and jointly with fuel- in a further 14; while fuelwood alone is used in the remaining 7 where typically it is fired in thermally inefficient, reconditioned locomotive boilers. Total energy consumption in these 39 factories was estimated to be 1440 terajoules per annun (TJ/a)in 1985. 1.2.4 The Potential for Substitution of Fuel Oil by Fuelwood It was felt at the time of the audits in 1985 - and at the oil prices then prevailing - that the main and seemingly mst attractive fuel substitution option for KTDA would be, wherever possible, to substitute fuelwood for fuel oil in those factories which burned fuel oil alone. This was despite the quite strongly held view that the conversion of those factories would be particularly difficult due to increasing shortages of fuelmod in Kenya. It was recognised in the Brief - and later confirmed by the study - that such further conversions would, in m y cases, be both viable and attractive at w k e t prices ruling in 1985. It was further recognised, however, that if such conversions were to proceed, a high lwel of political and managerial determination on the part of the Government, the Forest Department and the KTDA would be necessary to overcame same very real current constraints. These constraints, which are particularly severe in same Districts, reflected difficulties associated with availability of existing fuelmod resources, land ownership and utilisation, transport infrastructure, and limited access to modern fuel- preparation and canbustion technology. 1.2.5 Fuel Prices Since the early 1980's and especially during the period of this study there have been substantial nuvements in the relative prices of industrial fuels. World oil prices have fallen and future fuel oil prices are for same years expected to remain below those obtained in 1985; furthennore,because fuel is a surplus refinery product, its economic cost is expected to remain below its financial cost in Kenya for saw tim. World coal prices have risen slightly. Usage of fuelwood has begun to outstrip yield froan annual growth and prices are expected to rise. In addition, the rising cost of additional pmer generation capacity has led to the situation where electricity tariffs in Kenya are less than half the economic costs of electricity supply despite recent increases. Since the project investment recammdations made in this study depend for their viability upon future energy prices which are highly uncertain, emphasis has been placed upon testing all nccmnendations for their sensitivity to a wide range of fuel price variations, both financial and economic. 1.2.6 Enerqy Conservation Tarqets and the Audit Reports The technical groundmrk upon which the report and its findings are based lies in each of the 19 energy audit reports. Taken at its simplest, the reports ask, and provide anmrs to, just three questions on energy usage in each factory: . How much energy is being used now, and where is it being used? . What savings in energy can be achieved with the present plant and processes? (Defined as Target 1 or T1 - Short tern savings). . What further savings energy can be achieved with i m p h methods or processes? (Definedas Target 2 or T2 - Long term savings). 1.2.7 Fuel Supply Policies There is little more that Kenya can do to influence the supply of imported fuels. A surplus of residual fuel oil is produced in Kenya as a result of refining sufficient crude to met d m d s higher transport fuels. Supply of indigenous fuels could be impraTed through the darelopent of supply institutions and by the relaxation of price control on derived fuels such as charcoal. There are sources of added indigenous supplies but all involve substantial new managerial and institutional efforts. The aim should be to establish reliable supplies of uniform quality fuels £ram variable quantities and qualities of biamass and byproducts as -11 as plantation products. 1.3 Principal Findinqs The principal findings of the study can be sumnarised as follows: 1.3.1 Tarqet 1 - Potential for the 19 Audited Factories In cammn with experience worldwide, considerable industrial energy savings can be made in the Kenya Tea Developnent Authority tea factories in the short tern by introducing energy managemnt practices at very little cost. These imnediate or short tern actions include imp& insulation, reduction of heat loss, impruved canbustion control, reduction of mixing of hot and cold air, better electrical demand and power factor control and improved lighting. These measures are identified as Target 1 (TI)and estimated total energy savings could reach around 17 percent of total KTDA usage. Of the 19 factories audited, eneryy savings of 250 TJ can be made at an estimated capital cost of KSh 1 million ($US 0.05 million), saving KSh 9 million ($US 0.5 million) per m u m at 1985 financial prices. In general these savings arise frcan changes in the eneryy management practices and improved housekeeping at the factories. The means of achieving them are described in the audit reports and are generally, though not always, within the capability of the individual factory managements as part of normal housekeeping and plant maintenance programes. 1.3.2 Tarqet 1 - Potential for all 39 KTDA Factories As the 19 audited factories consume about half the energy used in the total of 39 KTDA factories, this suggests that Target 1 savings appmaching KSh 18 million ($US 1.1 million) per annum could be achiwed for a total investment of around KSh 2 million ($US 0.1 million), based on 1985 financial prices. Moreover these .savingscan be achieved by innnediate action in many cases, drawing particularly on ideas developed during the audit programne. 1.3.3 Tamet 2 - Potential for the 19 Audited Factories Further substantial savings can be realised in the longer tern by implementing a range of viable project investments at factories, primrily directed at factory refurbishrrrent and mdernisation, imp- combustion equipnt, fuel substitution, and electricity co-generation. If all the projects identified at the 19 audited factories were to proceed, additional savings of KSh 12 million ($US 0.7 million) per annum could be achieved through a range of investments totalling around KSh 16 million ($US 1 million), again based on fuel prices mining at 1985 levels in real terms. These longer tern inves.tments are identified as Target 2 (T2) and, in general, will require external engineering,management and financial support. 1.3.4 Tarset 2 - Potential for all 39 KTDA Factories Since the 19 audited factories consume about half the energy used in the total of 39 KTDA factories, this suggests that Target 2 savings approaching KSh 25 million ($US 1.5 million per annum could be achieved for a total investment of around KSh 32 million ($US 1.9 million), based on 1985 financial prices. 1.3.5 Potential for Reducinq Electrical Load Growth Both the T1 and T2 investments, extended across all FIDA factories, will help to reduce the rate of electricity demand growth, and so defer or reduce investmnt in planned public electricity generating capacity. A saving of saw 20 MW below present forecasts is estimated by 1995, based on the potential for reduced demand by all of Kenyan industry arising fram effective energy conservation and demand management. The reduction should, in national terms, offset same portion of the cost of investments in energy conservation. 1.3.6 Reconanendations Unchanqed by Fuel Prices The gains to be made f m energy source substitution will be influenced by the relative prices of fuels, especially fuel oil and fuel-. However sensitivity analysis has sham that, even under a wide range of financial and econmic prices, very substantial savings can still be achieved by implementing the mxameded neasures. It is therefore appropriate to ccanplete the engineering and econcmic feasibility studies for the projects reccmtnended and shortlisted in the report; and to mnitor the fuel price position closely and continuously so as to be able to include other prospects as further opportunities merge. 1.3.7 Fuel Substitution Potential and Policies Much of the saving in fuel substitution is anticipated to result f m the substitution of fuel- or biomass residues for residual fuel oil. In this context it should be noted that the fuel demand of the tea industry represents a very small fraction of the werall demand for fuelwood in Kenya which is dominated by the damestic sector. Nwertheless recamnendations to impme the supply of indigenous fuels have been made in this report. These include the establishment of dedicated fuelmod plantations, policies to raise the price of fuelwood towards the cost of replacemnt, and policies to encourage the dweloprrent of enterprises specialising in the provision of coarmercial fuels based on bimass or biomass residues. Of prime importance to the tea industry is the need to ensure secure econanic supplies. This will require the establishmnt, where appropriate, of dedicated fuelmod plantations to offset prospective fuelwood shortages which have been forecast; to guarantee security of supply for the tea factories concerned; and to reduce haulage distances and hence transport costs which might otherwise render fuel- uneconanic. Fuel& delivery distances over 50 Ian currently approach the limits of viability. Where fuelwood substitutions are viable, the use of reconditioned locamotive boilers, as at present, is not nxmmended unless substantial modifications are effected to improve overall heat mcmery and hence them1 efficiency. Although they involve a low initial cost they are not, in their 'as found' condition, thermally efficient and so waste a precious resource. Moreover, even where conversion is effected, it is reccsmnended that pmision be retained for fuel oil firing. Further fuel substitution potential in the KTDA exists in the form of the substantial volume of unused but available bicanass and bicanass residues, including the possibility of generating carmrercial fuel- from forest thinnings. The gnergent but prwen canbustion technologies proposed for these forms of fuel are described in the audit reports, and a trial and demonstration project is -ded to introduce and prave such technologies in the Kenyan envimmt. At 1985 financial price differentials between fuel oil and them1 coal, with the landed cost of the latter esthted at about 80 percent of that of oil, there was absolutely no justification for coal substitution to meet the energy requirements of industry including the tea industry, particularly when the extra costs of haulage are considered. The 1986 econanic price canparison indicates even less potential for coal. Under the forecast price ranges for both these fuels it is not anticipated that opportunities for coal substitution will emerge within the 10 year time horizon of the Action Plan. 1.3.8 Enem Manaqemnt Awareness In c m n with experience in many countries, there is limited but growing energy managewnt amreness in industry (including the tea industry), and accordingly training for energy management in Kenya is still at an early stage. Action should be taken to further develop this awareness, and to foster increasing energy savings for Kenya's tea industry. This is envisaged as including such measures as energy management and education pmgramnes, publicity and awards for perfo m c e. 1.4 Recamnended Action Plan In order to ensure that the =tun from this study continues and that Kenya gains from the opportunities which have been identified, the follawing specific recmdations are made, some of which have been foreshadowed in the findings above. 1.4.1 Foxmulation of Enem Policy Overall energy policy in Kenya should be directed to include the areas identified in this report and should continue to be guided and overseen by the Ministerial Energy Planning Camnittee. The Ministry of Energy and Regional Developnent (MOERD) should continue to develop the Kenya Industrial Energy Managemnt Pxvgramne (KIEMP), guided by the findings of this report and the mrk of the Kenya/Canada Advisory Project. Within the overall policy guidelines of the KIEMP, the KTIlA should initiate and manage the KTDA Energy Managexrent Programne. 1.4.3 The KTDA Enemy Manaqement Proqram The objective of this Programne, inter alia, should be to achieve the T1 and T2 target energy intensities (GJ/t)at every KTDA factory. The Progr- should have lwels of activity: the first central, located at and controlled by KTIlA Head Office, and the second regional, controlled at district factory level by regional or district Energy Officers. The central level of activity should include setting up a small KTDA Energy Managmt Group. Qualified Kenyan staff should be appointed to the senior positions at both lwels but, in the early years, experienced expatriate support muld be beneficial. In the initial stages the advice and guidance of the MOERD should be sought, and thereafter close cooperation maintained with the conduct of and experience gained from the KIEMP. 1.4.4 Demonstration P r o q r m A demnstration programe, ccanprising the T2 projects noted below and which are described in more detail in the reports, is strongly reconnnended. This approach is to ensure that: Limited technical and financial resources are not over extended; . Financial risk is minimised, for example in the event of major fuel price movements; . Understanding of the sanetimes new technologies is achieved, provided the projects selected are made fully visible and accessible so as to facilitate maxirmrm technology transfer to Kenyan engineers; Individual projects are s h m to be attractive to both the World Bank and other werseas aid energy investment programs. 1.4.5 Recmnded Tarqet 2 Investment Projects Swen projects to convert from fuel oil to fuelwood should now be encouraged to undergo full feasibility analysis. One project to generate electricity for use in withering is also rec-ded, while a further three should be considered whenever electricity tariffs rise. A project to upgrade an oil burner at Mataara and another project to install a heat exchanger at Tegat are also recmmmded. These ten projects, examined only to preliminary feasibility level, should now proceed to full feasibility study covering engineering, econcmic, funding and implementation issues. 1.4.6 The Model Tea Factory One of the 10 KTnA factories predicted to be built in the years ahead should be a Model Tea Factory, operated as a production factory but controlled by the Tea Research Institute on behalf of the Kenyan tea industry as a whole. The Model Factory,which would be designed inter alia to be highly energy efficient, would serve to dauonstrate and transfer both new and existing technologies throughout the-wholeof the tea industry. In this way it would help to set up and maintain achievable industry energy utilisation standards, support staff training schemes and generally provide a centre for industry research and developuent in all aspects of tea manufacture £ram green leaf to delivered product. Before any camitment is made a full site specific feasibility study should be undertaken. 1.4.7 F u e l d and Biornass Residues for KTDA Factories Fuelwocd and/or biornass residue substitution for fuel oil, although attractive at prices prevailing at the time of the 1985 audit programne, is -red in KTRA by perceptions of non availability. Indigenous fuelwocd,particularly of the l m r grades unsuited to prime use, together with available biamass residues such as sawdust and coffee husks, represent an important but as yet under managed and inefficiently utilised national resource in Kenya. Significant attention and further resource evaluation studies in this vital area are recmnded, notably in relation to reported supply comnitments to KTIlA by the Forest Department. A range of supply options identified in the report requires further and more detailed econdc asses-t as well as evaluation of transportation, distribution, delivery and storage methods. These options include: Forest Department lands. Unused roadside areas and other public lands available for fu e l d. Future surplus in private tea estate plantations arising f m improved factory energy efficiency. Smallholder woodlot potential. Crop residues. Sawdust fram sawnilling operations. In addition a pilot dauonstration project to evaluate means of enhancing the production and distribution of purpose grown plantation f u e l d is reconmended to establish methodology, costs and opportunities. The fuel- supply problem is again addressed in the companion report Kenya Coal Conversion, Eslergy Conservation and Substitution Action Plan, and also in the forthcoming UNDPIWorld Bank ESMAP Peri-Urban Fuelwocd Study. 1.4.8 Pricinq Policy Issues In relation to pricing policy it is reconmended that more realistic charges should be made for fuel- to reflect land and stumpage costs, thereby lifting fuelwood prices towards the cost of replacement and encouraging fuelmod developnent. Attention should also continue to be given to the relatively low level of electricity tariffs - currently the subject of review - and the pricing of residual fuel oil where the econcanic value appears most closely related to export parity levels, under the existing refinery operating rule. 1.4.9 Tea Industry Eneruy Usaqe Database The Tea Industry Energy Usage Database, which gives the e n e b performance reported and targets set for all KTDA factories, should be upiated annually by ongoing use of the proforma factory energy usage questionnairedeveloped for the project. This would help foster energy awareness and understanding at factory level. The monitoring of individual factory energy performance or energy intensity (GJ/t), as derived in this report, should be included as part of the report of the KTDA Energy Management Group and presented as an important section of the KTDA Annual Report and Accounts, just as green leaf yield and percentage out-turn are naw recorded. An Energy Managemat Award for the best or most improved energy performance in the year is recomnended. 1.4.10 Tea Road Policy Reconmendations As regards transport, it was noted that the quality of finished tea depends upon the time which elapses between green leaf plucking and the camencement of factory processing - with poor feeder roads contributing to this delay. Selective impmvmmts in feeder road serviceability appear warranted by benefits to growrs. Impmvawnts should include raised road levels, culverts, and the re-gravelling of selected short lengths of road. It is recormended that action be taken to effect these improvements in the areas where needed. 1.4.11 Packaqinq Recomnendations It was also noted that a change in packaging methods f m tea chests to bags would make more efficient use of modern materials and be in line with the industry trend. The image of quality and the preferences of many factory managers could be served by packaging in robust, moisture proof, non-tainting bags and further trial conversions are recarmended. 1.4.12 KTDAAction Plan In sumnary, therefore, the Consultants recamend that a practical and potentially highly beneficial action plan, with particular emphasis on energy conservation and substitution, be now formally carried forward by the KTDA through the Gwenunent of Kenya with the appropriate financial support from bilateral and multilateral funding sources. 2.1 Objectives and Texms of Reference The objectives of the Kenya mergy Efficiency in the Wa Industry project w e r e to evaluate the potential for improving energy efficiency and to examine the econmics of inter-fuel substitution in the existing and planned Kenya Tea Developrent Authority (KTI1A) factories. It was required primarily to identify masures to impruve the energy perfommnce in the withering and drying processes, which are the main energy consun~rs in the tea industry,and in addition to review prospects for reducing the energy rqubments for mtive pocll~arin factories (i.e. electrical energy), and for improving the energy efficiency of transportation, packaging and handling green leaf into the tea factories, and mde tea £ram the factories to the point of delivery. The main thrusts of the project team's efforts towards improving energy efficiency viere therefore: lb identify the short term means of achieving Taryet 1 (TI) energy intensity, To identify the mans of achieving the longer term Target 2 (T2)energy intensity,and To identify the potential and econmic viability of substitute fuels to replace the use of imported fuel oil. In addition to the abve, the study m s to include a review of possible imprmmmts to transportation, handling and storage methods, the impact of imp- feeder roads, containerisation and other h l k handling options available to the industry. Finally, the terms of reference covered identification of policy and investmnt issues to be addressed by the Governmnt. It was felt at that tire, and at the oil prices then prevailing, that the main fuel substitution option for KElA, and seemingly the mst attractive,would be herever possible to substitute fuelmod for fuel oil in those factories which burned fuel oil alone. Despite the quite strongly held view that the conversion of mre KTDA factories £ranoil to fuelmod m l d be particularly difficult due to increasing shortages of fuelmod in Kenya, it was nevertheless recognised in the Brief (and later confirmxi by the Consultants) that such further canversims wmld inm y cases,particularly in the better forested areas and here the pressures on land tenure were less acute, be both viable and attractive at m k e t prices ruling in 1985. If such canversions were to pmced, however, it was recognised that a high level of political and managerial determination on the part of the Gwenrment, the Forest Departrrrent and the KITlA d d be necessary to overcame the very real current constraints, in scm Districts particularly, of availability of existing fuelmod resources, land ownership and utilisation, transport infrastructure,and limited access to mxlern fuelmod preparation and ombustion technology. The project Activity Initiation Brief (theBrief) set out the following four min tasks: Task I - Data Collection, Ehergy Audits, and Transport Infrastructure Task I1 - Energy Efficiency Imprmm-mt Task 111- Fuel Substitution Task IV - Preparationof an Action Plan 2.2 Relationship to Kenya Coal Conversion Action Plan Project ming the first wsek in Kenya on the Coal Canversion Action Plan project, the Wrld Bank Mission drew attention to the proposed Study of Energy Efficiency in the Tea Industry. Shortly thereafter it was reccgnised by the Mission and the Consultants that the opportunities for conversion f m oil to coal as a mjor energy source in industry apipeared limited. Haever, great scope existed for energy conservation and there were possibilities for indigenous fuel substitution. With the agreanent of the Wrld Bank and the mjor funding agency, the Australian DaTeloprrent Assistance Bureau, the Consultants for the Coal Conversion project were appointed to carry out the Tea Industry study concurrentlywith the second phase of the Coal Conversion project. The coupling of the two projects, although costed and reported separately, created opportunities for cost savings, mre efficient project managglrent and consistency in the use of econQnic and financial databases, in the approach to energy audit procedures and in the presentation of reports and remmedations to the Govenrment of Kenya. Three econQnic papers prepred by the Consultants are camrm to both projects and are included in the Appendices to each report,viz: m d i x D - Supplies and Prices of Fuels E - Indigenous and Byproduct Fuels Appendix F - Project Ebaluation The Consultants wish to ahowledge the continuing and willing moperation given by the Ministry of Ehergy and Regional Develapnent, especially the Project Manager, Mr S.A.R. Bagha, and the Xenya Tea Developm~tAuthority, particularly Mr Peter Njoroge, Factories Operations Manager; Mr Richard Cheruiyot, Deputy Factories Operations Manager; Mr John Karungu, Assistant Factories Operations Manager; and Mr David Chanzu, Forestry Officer. Valuable cooperation was also obtained £ran the UNDPMrld Bank ESMAP Peri-Urban Fuelmod Study team led by Mr Robert Dewar and his staff, and by the World Bank Regional Office, particularly Mr Alistair Macneil Wilson, who not only prwided significant input to the initial terms of reference but also gave friendly guidance to the Consultants as their mrk progressed. The co-operation of the Kenya/Canada Advisory Project team was also valuable and appreciated. Help in the field on m y aspects of forestry and fuelwood canbustion was given by the managaent and staff of a number of estates in the private sector. Valuable conclusions have been drawn fran the data and opinions given, but requests for individual confidentiality have naturally been res-ed. Lastly, special thanks must be given to all of the mny KTDA Factory Officers and their staff who invariably gave willingly and courteously of time and enthusiasm to assist the audit teams in their mrk. The project mrk was characterised throughout by harmony and goodwill which the Consultants found rewarding and stimulating. It is hoped that the encouramt and support of all those mmtioned above, together with m y others too numerous to add, is reflected in the findings of the report and of mre importance in the determination of the Govenrment and Kenya Tea Develmt Authority to follow up the -tions with vigour, to achieve the targets which have been identified,and to reap the consequent rewax&. 3.1 The Kenyan Tba Industry The Kenyan Tba Industry in Financial Year 1985 produced a total of nearly 130,000 tonnes of made tea prhmrily frwn the Kericho and Limuru areas but also £ram as far *st as Kisii, frwn the eastern slopes of the Aberdare Range and frwn the southern and eastern slopes of Mt Kenya. As is seen frwn Map 1 these regions are smtimes loosely described as east or *st of the Rift Valley. Tba gruws in high country which is *ll mterd, typically 2,000 metres or mre above sea level. Kenyan teas are traditionally of high quality and as such generally com~ndhigh prices on the world mket. Kenya's approximate 130,000 tonne annual production of made tea which typically sells at around KSh 35/kg based on KTIZA'S results for FY 1985, yields a gross revenue in the order of KSh 4.5 billion. This figure can vary significantly, based on international prices which fluctuate considerably (KSh 18/kg to KSh 51/kg in recent years). Scane 55 percent of the tea produced is grown by the large tea estates, mainly privately owned by major international ccanpanies,who process their own tea and have the land, financial and staff resources to grow or procure fuel- and to implgclent and maintain energy efficiency impmvments. The remaining 45 percent is grown by mre than 150,000 small farmers on tea-holdingswhich average only 0.38 ha each. A parastatal, the Kenya Tka Developm~tAuthority (KTDA),m s established in the early 1960's to assist in producing, processing, mketing and financing the smallholders' tea crop. The Activity Initiation Brief for this study required that the Consultants address particularly the energy efficiency in the public or smallholder sector of the Kenyan tea industry mnaged by the KTRA. The Consultants did examine saane aspects of the operation of the private sector (the tea estates) and, where appropriate, reference is made thereto in this report. That the KTDA is an gninently successful organisation producing high quality teas is beyond doubt. It has achieved this in just over 20 years which indicates determination and managanent of a high order; indeed, the KTDA is regarded world wide as one of the mst successful smallholder operations and is rightly regarded by m y as a &el of such organisations in developing countries. W a n n and wholehearted cooperation exists be- the private estates and the KTDA, despite their mkedly differing histories, policies and &es of operation. In a world in which it is ccsrrrrm to discredit the actions of large groups and govemts, it is particularly encouraging to see private enterprise mrking hanmniausly and profitably alongside a sesni-govemt organisation to the benefit of the Kenyan people. KENYA SMALLHOLDER TEA GROWING AREAS 8. K.T.D.A FACTORIES MT ELGON o XI Y) m m m Kllomolres 0 . 1 . ' I l . 1 . t 3.2 The Kenya Tea DevelopnentAuthority 3.2.1 Background The Kenya Tea Developnent Authority (KTI1A) in the financial year 1985 (FY 1985) handled about 63,000 tonnes of quality tea and pmvided mnagement services to 39 processing plants or factories. Of these, 18 factories currently use fuel oil, 14 have dual-fuel (fueloil/fuel&) fired drying equipent, and the 7 have been converted to fuel- by retrofittingwith reconditioned locamtive boilers. It is estimted that 25 to 27 million litres (ML) of fuel oil are consumed annually by K!TDA factories for tea drying and processing at a delivered cost at 1985 prices of about $US 4.5M or KSh 77,000,000. KTDAhas plans to improve tea yields, which muld create the need over the next 8 years for 10 new factories at 1.8 Mkg/a (1800W / a ) capacity each. KTI1A's energy requFranentswill rise accordingly. An energy efficiency p r o g r m to identify the optiml fuel choice and to assure fuel supplies for these 10 planned new factories should therefore be designed nuw, which is one of the reasons for which this study w s camnissioned . The essential industry statistics frnm the KITXI Annual Report for FY 1985,with fuel statistics frnm the Energy Audit Questionnaires, are as follows: Mrmber of KTaA factories in operation, July 1985 39 KTDA factories burning oil 32 KTaA factories burning mod 7 N u m b e r o f K T D A v 150,088 Area planted for KtTXmnaged factories 56,497 ha Average KTaA plot size 0.38 ha ?lotalgreen leaf collected by KTDA 283,203 t Production of made tea by KTDA 63,645 t Yield 1,127 kg/ha Pgprox. value of KTTlA production ex factory 1,980,000,000KSh Approx. value of oil cons& by KTDA 77,000,000 KSh Approx. value of all energy consumed by K!TDA 110,000,000KSh By caparison, statistics for the private sector give annual production a little higher than KTaA, but with made tea yield per hectare considerably higher approaching 2400 kg/ha, mre than twice that for KTDA. This is to be expected; the private estates are very larye, occupy pr- gracing areas and are adjacent to their factories. The KTaA srnallholdings are much srnaller and generally rerrrote frnm their factories. While the yield trend is to be expected, it does not point to any dramatic shortcaning on the part of smallholders, (althoughthey do have mre limited access to modern agricultural techniques), but rather to the declared K!TRA green leaf policy of plucking only "tm leaves and a bud". This policy, while limiting volume of green leaf per hectare, ensures that KTDA teas are of the highest quality and as such ccn-mnd premium mrld m k e t prices, generally higher than obtained by the higher output private estates. 3.2.2 KTDA Factories Annex 3.1, sets out a full list of the tea factories managed by the KTI1A, together with essential production and plant data. Map 1 shows where these factories are located in Kenya. All KIDA factories are typically rated at either 1.2 or 1.8M kg of mde tea per annum (1200or 1800 W / a ) capacity. The overall naninal production capacity is 62.6 M kg of mde tea per annum. While the process flow sheet of all factories is essentially similar, each layout is invariably purpose designed for the site and the particular plant lzqlbmats. Alternative types of air heater and alternative fuel arrangemnts are tm aspects which especially dictate layout. Basically, there are tm rnethcds of heating the air used for drying tea: Boilers generate steam which is fed to point of use radiators through which ambient air is blown by fans. This air serves the withering troughs and the drying chanbrs. Air is indirectly heated in fired heaters and blown by fans via hot air ducting to the withering troughs and drying c-rs . A third rnethod, that of gasifying mod and using the products of ccmbustion dLrect as the heating ruedium, has been used in the private sector but is presently not used by KTDA. With either of the preferred arrangements, the heating device (i.e. boiler or air heater) is fired by oil or mod or scretines both. Haever, in Kenya there are as yet no d fired indirect air heaters and those steam boilers which are mod finxi are typically reconditioned loccarrotive boilers obtained f m Kenya Railways. The apparent attraction of these l m t i v e boilers is their cheapness and robustness. Haever, they are by no mans ideal for the purpose of land based steam raising and are generally themlly inefficient, i.e. they consume mre fuelmod than is required for the task. Furthermore, fuelmod preparation is typically minimal and hand firing through open furnace doors on to fixed grate bars with very limited control of the fire box conditions appears standard practice. As a result, there is often considerable excess air (the audit team msured m y very low carbon dioxide readings)which contributes yet further to the very low canbustion efficiencies recorded. Despite the apparent low first cost the use of loccxmtive boilers is not recmmmded. Rigorous life cycle costing with fuelmai, given its true econcanic value, muld be likelyto indicate the considerable importance of gnploying -11 designed, high efficiency fuel preparation and ccanbustion equipnent, either new or retrofit, as further described in detail in the individual Ehergy Audit Reports. Each factory caprises three sections: Withering, Green leaf processing, and Tea winq 3.2.3.1 Witherinq Green leaf of approximtely 3 kg/cu.m bulk density is received by truck f m the buying centres (leafbases), wighed and laid out by hand in withering troughs in which the initial misture content of the leaf is reduced to around 68%. This process is electrical energy intensive due to the requFrements of the fans and the long withering periods for which they are required to operate. Additional heat is saetims provided. While this uses mre 'low grade' energy, it can shorten withering tims and reduce consmption of the 'high grade' and expensive electrical energy used for the fans. 3.2.3.2 Green Leaf Processinq This is a mxhanical and chmical operation. Processing is not particularly energy intensive, gnbodying el1 proven and standardised items of plant such as Rotovanes and the process (cut,tear and curl) CIC which reduces the withered whole leaf to the final small 'tea leaf' size. This is followed by fenwntation, after which the fen-ented leaf is convey& forwad for drying. 3.2.3.3 Tea Dryinq This stage is significantly energy intensive as it is here that the reMining misture of the tea leaf, approximately 66%, is mnmed under controlled drying canditims using a strong flow of heated air. The drying process is either in an endless chain pressure or tray dryer (ECD),thetraditionalmthod,or ina fluidisedbed dryer (FBD) which represents mre recently introduced technology. 3.2.4 Eneruy Supplies and Utilisation 3.2.4.1 Fllel Oil Of the KTaA factories operating in 1985, 32 rely on oil fuel, all of which is obtained f m the petroleum refinery at Mmbasa and delivered generally by road to the factory. It is understood that long term contracts at agreed prices are negotiated by KTEA on behalf of each factory. However, experience has shown that oil deliveries are not always reliable or consistent. As will be discussed in later chapters, fuel oil utilisation in boilers and air heaters is for a variety of reasans by no mans as efficient as it could or should be. These reasons are properly the subject of the individual Energy Audit Reports, although the general findings of these reports are surmrarised in Chapter 5. 3.2.4.2 Fuelmod and Biarnass Residues The raMining 7 KL'DA factories use fuel&, generally inefficiently, in locamtive boilers and further conversions to dual fuel firing (fuel- or oit)' are in hand. Fuel& is typically made available from forests cordrolled by the Forest Departnrent in the Ministry of Envimnmnt ,and Natural Resources and in no instances do any KTaA factories have self-owned or self-controlled fuelmod plantations or any other secure sources of fuel- supply. This problem restricts the KTDA as it strives to reduce dependence on fuel oil. The issue of fuel& supply potential for KTaA is discussed in Appendix C - Biarnass as an Energy Source for the Tka Industry,prepared by Forestry Technical Services. This Appendix reviews the existing fuel- supply situation and the potential for enhancmentwith relevance to the tea industry. The fuel& position varies from district to district. In the Kisii district e l y heavy pressures of agriculture and population limit fuel- supplies. If fuel- is to displace oil, adequate land wuld be needed for developwnt of the necessary fuelmod plantations but this is unlikely. Elsehere, on the eastern and southern slopes of Mt Kenya and eastern slopes of the &dare Range, in addition to existing forestry resources, biarnass residues such as sawdust or rice husks could be available from reasonably nearby sources for use as fuels. It is clear that before any factory converts to fuel- or biarnass residues it is essential to have in place contracts and long term assured supply positions, preferably under KL'DA mership or control, to ensure a reliable supply of fuel- both hmdiately following conversion and well into the future. Oil storage and canbustion equiprent should be retained to cater for fuelmod supply problem or changing fuel supply econcsnics. F'urthenmre, with improving them1 efficiency in the private estates, it is possible that an errerying surplus of fuelmod may be available to the KTKA in the short term, although in the long term the opportunity exists for the private estates to p t their existing fuelmod plantation land i&ich is surplus to their m needs to alternative use, particularly the production of mre green leaf. 3.2.5 The Existinq Pattern of Enerqy Consumption The pattern of Energy Consumption in the Kenyan Tea Industry has been established through a specially prepared Tea Industry Energy Usage Database included as Agpmdix B. The Database covers all 39 KlDl tea factories. ?his Database is a sub-set of the Industrial Energy Usage Database prepared for the whole of Kenyan industry, and which forms part of the Consultants' cQnpanion report on the Kenya Coal Conversion Action Plan. The catplete Database, which includes energy in£ormation frcm the private sector of the Kenyan tea industry, appears as Appendix C of that report. The Tea Industry Energy Usage Database was prepanxi using data pmvided in the Energy Survey Questionnaires for all 39 KTIlA factories, whether or not they were audited. For both audited and non audited factories, the information was corrected, in several cases, following review with Factory Officers at the tirrre of audit or subsequently through KTIZA, but the corrections and clarifications on the whole viere minor. The jointly with IQDA plans to continue to build up the Database to include routine annual energy reports frcm both KTllA and private sector factories, so as to develop a proper understanding of energy targets which could be achieved throughout the tea industry. These targets m l d act as benchmrks against which Factory Officers could set their perfomce standards. For the K!IDA, the targets muld pmvide lueasures of the perfomce of all KTDA factories for which energy costs raMin a significant proportion of expenditure; and represent a basis against which to monitor the progressive imp-ts following the mrk of this report and the continuing efforts of the m. Table 5.6 records current en- consumption in each tea factory. This shuws that total energy consumption in 1985 m t e d to 1440 TJ costing KShllO million. 3.2.6 The Future Pattern of Enerqy Consmtion The Database in its present form will pmvide an ongoing frammrk for continuing MOERD energy usage surveys. Database software has been handed over to the IvOERD, and it is nxammded that the industrial energy survey beccxm an bi-annual exercise to be run by the MlERD, with input on tea factories being pmvided by the KTIZA. Further mrk may be requFred on the Energy Survey Questionnaire design, but this is simply a matter of progressive developllent. Indeed, it is feasible for the survey questionnaires to beccatle ccanputer generated such that data which is consistent frcm year to year, for example particulars of plant and equipnent, names and addresses, etc , are held on Database and are . presented each year simply for the purposes of review by the Factory Officer. In this way, the annual effort of catpilation of Energy Survey Questionnaires should be considerably less labmious and probably more accurate than the first run. F'wthemre, the regular response to such surveys is, in the opinion of the Consultants, one of the more effective ways of heightening pexfomce awareness. The Consultants go further to nxammd that energy perfomce be recorded each year in the KtDA Annual Report, just as production perfomce is now recorded. The Database was prepared anplaying the Lotus 1-2-3 spreadsheet program^ using the project micro ccmputer. The overall objective was to determine not only the existing pattem of energy consumption in the tea industry, but also to set taryets and to determine the potential outcarre of an effective energy consemation and fuel substitution programt~. The results based on the 19 factory energy audits undertaken, but extrapolated carefully to set taryets for all KTDA factories. The design of the Database permits the setting of projected growth rates within the industry to be added or changed as desired. To indicate the trend in energy d d , an assessment was made based on each existing KTDA factory increasing its production by 3 percent per year, with the KTDA additionally constructing and ~Qlmissioningone new fuel- fired factory of 1.8 Mkg made tea per annum capacity every second year camwcing in 1987. The Brief indicated that 10 new factories were planned to be constructed during the next 8 years. The Consultants, after discussims with the KTDA and reviews in the field, believe that one new factory every 2 years muld be a more realistic basis upon which to estimte future energy -ts. This provided a conservative estimte of the future d d for fuel oil and fuel- by the KTRA, although it has to be arp?hasised that these estimtes are very preliminary and are included only to generate discussion towards longer term strategic planning. The Database gives the existing and future pattern of overall energy consumption in KTDA for the years 1985, 1990 and 1995. It is seen that, providing the short and long term measures xecaweded in this report are adopted, the total energy consumed in 1990 should be the s e as in 1985, despite the construction of 2 to 3 new factories. Pbreover, the addition of 3 to 4 new factories f m 1990 to 1995 (atotal 15 percent increase in factory numbers fm 1985) should show only a 5% increase in energy consumption over 1985 (and 1990). The additional factories proposed by KTllAmuld continue to anploy current energy mnagement and design practices unless careful attention is given to the problan. If the problan was not addressed the future energy consumption could graw instead of falling as efficiency impIwed. Qle of the new factories FJould becane the W e 1 Wa Factory if the Consultants' mccmedation is adopted. 3.3 The Private Sector 3.3.1 Background The private estates of Kenya currently produce about 65,000 tonnes of good quality tea per year f m about 36 factories. Virtually all of these factories use fuel& fired drying equipnent, soarre in purpose designed boilers and others in reconditioned l m t i v e boilers. As earlier noted the private sector average yield of made tea per hectare is significantlymore than twice that of ICI'DA. There are t m reasms for this. Firstly, the private estates occupy the p r w growing country and the plantings cover very large and continuous areas, particularly in the high lands around Kericho. Given the high quality land, good access roads, and the cmpactness which permits excellent agricultural procedures and mnagamimt, it is hardly surprising that yields are higher. Furthenmre, the private estates have been operating for a much longer time and, being consolidated into larye areas, are able to focus their specialised expertise and agricultural knowledge on the task of growing the tea to a considerably greater extent than is possible for isolated mllholders. The second factor is that the private estates generally do not adopt the "twoleaves and a bud" plucking policy of I(TI1A.Accordingly, plucking is mre intense, yields are greater, but to scare extent quality is sacrificed. While the quality difference might not be readily noticeable to the layman, it is reflected in tea prices. Although the Consultants did not obtain detailed data on product pricing, they were given to understand that the prices obtained for KTDA tea are generally above the averages obtained by the private sector. 3.3.2 Private Sector Factories Annex 3.2 sets out a listing of the tea factoriesmanaged by private interests, together with essential production and plant data. The plant and equipnant used and the process flows of the private sector factories are essentially similar to those of KTDA. There are no dramtic differences in technical approach, although on the whole the private tea factories have experimented with sarrre of the nwer techniques, for example the gasification of mod. 3.3.3 merqy Supplies and Utilisation As is seen f m Annex 3.2, very nearly all the private sector factories are supplied by modfuel, with oil the exception. F'urthenmre, very nearly all rely for their fuel- on their own plantations which are generally adjacent to the factories they serve. The fuel- plantations have been in existence since the land wis first turned to tea production and many fuelwood estates have mture stands of wood which have run to two or mre harvesting cycles over their lives. Typically, sarrre 200 ha of fuel- plantation are required to serve one factory. Currently, with the increasing pressure on land resources, considerable agro-research has been and is being undertaken tuwards improved fuel- yields per hectare of plantation. New species, for example Eucalyptus saligna, and new methods of agriculture are being evaluated. Brazilian experience, for example, suggests that fuel- yields per hectare can be considerably improved. At the sarrre t h , fuel- canbustion efficiency has been impming progressively. Those estates with conventional steam raising boiler plant &tor their ccanhrustion perfomce with considerable care, keeping indices of perfomce (generallykilograms or cubic metres of fuel- per kilogram of mde tea) so that perfomce aberrations are recognised quickly. These approaches have mde operators particularly conscious of fuel- carbustion efficiency and as a result canbustion practices in the older factories,given the plant installed, are generally as good as can realistically be expected. As a guide, figures of 1 kg mcd per kg mde tea (i.e. about 15 GJ/t energy intensity) represent good practice. However, figures of up to 1.8 kg of mod per kg made tea and higher ere observed, usually associated with canbustion in loccrmtive boilers. Same of the private estates have, however, taken the route of locamtive boiler utilisation and so have experienced the attendant problans of poor efficiency. Recognising this, a numker of innovative heat recovery mdifications, such as air heaters and econamisers, have been developed which are helping to lift theml efficiencies towards those which muld be expected frun purpose designed boilers. Several factories have experimmted with fuel& gasifiers and, while considerable problans still rerrrain in their use (notablyproblans with turndown, load following, spark and ash carryover and consistency of operation), there is no doubt that quite high theml efficiencies are being achieved. This is to be expected as the products of cambustion frun a gasifier are used for direct drying of the tea without an intermdiary heat transfer step to clean air, or to steam then to clean air. It was outside the Consultants' brief or expertise to caamu3nt on whether claims of inferior tasting tea were valid or otherwise; the opinions received ere conflicting and various. Nevertheless, £run the fuel efficiency point of view, fuel- gasifiers, despite sane difficult operational problans, do represent a themally efficient route frun fuelmd to mde tea. The consequence of progressively impming fuel efficiency in the private sector, regardless of the particular canbustion equipent used, has led to the challenging situation of sane private factories being faced with the potential of a fuel& surplus. This leads to three possible lines of opportunity: To reduce fuel& plantation areas and plant the freed land with tea, To add plant to cogenerate electricity and process heat, a mve that m l d probably absorb the 'surplus 'fuel-, To mke available any surplus fuel- on the open mrket, for example on long tern contract for the use of the KTDA. Notwithstanding the seening attraction of the third alternative of selling surplus fuelmod to KTDA, the private estates wuld be unlikely to cantanplate this unless a sufficiently attractive and aoquFred lmg term mrket were to exist. Short of imwdiate action, firstly by KTDA towards conversion to fuelmod of appropriately located famries, or secolldly by g o v e m t intervention, it is unlikely that this m e muld currently be entertained by the estates. A preliminary review of these alternatives suggested that the mst attractive to the owners in financial tern at present tea prices appeared to be that of turning over the land to further tea plantings. The next alternative, although a technology not well understood by the estates, muld be cogeneration, i.e. the cmbined production of electricity and process heat. In any situation where there is a substantial need for 'lw grade' heat as we11 as electricity, there always exists the opportunity to cogenerate f m a single self-controlled energy source rather than rely on external supplies of both fuel and electricity. The tea industry, both KTRA and the private sear, is no exception; and these opportunities should,where shown to be econ&c, be exploited as representing the proper and efficient use of Kenya's indigenous energy resources. LISTING OF KTIlA TEA FACIORIFS CAPACITY IXE OF RADIATOR WOOD OR FACrORY DISTFUCT MADE TEA OPERATION OR AIR OIL FUEL MILLION KG HEATER clEBUI'* NAND1 1.2 JULY 1972 STEAM W D C H I Z A * NYERI 1.2 DEC. 1963 STEAM OIL * NYERI 1.2 NOV. 1977 STEAM WOOD GATmaRU r4URAEA'A 1.8 OCT. 1981 HEATER OIL GITUCI NYERI 1.8 JAN. 1984 HEATER OIL GITHAMBO IWRAlGA'A 1.2 AUG. 1977 HEATER OIL GI- * MERU 1.2 JAN. 1976 STEAM F300D IKUMBI * MURAEJGA'A 1.2 SEPT 1971 STEAM OIL IMEwI MERU 1.8 MAR. 1971 STEAM wxm IRIAINI * NYERI 1.8 JAN. 1981 HEATER OIL KAMBAA * KIAMBU 1.8 MAY 1975 HEATER OIL KAbGzUTA KIRINYAGA 2.0 DEC. 1965 STEAM WoD KANYEYAINI * l4snwwl'A 1.8 MAY 1974 HEATER OIL KAPKOROS KERICHO 1.2 MAR. 1976 HEATER OIL W S E 2 * KERICHO 1.8 MAR. 1981 HEATER OIL KEBIRIGO KISII 1.8 MAR. 1971 HEATER OIL KIAMOKAMA * KISII 1.2 JUNE 1976 HEATER OIL KAGWE KIAMBU 1.8 FEB. 1984 HEATER OIL KIEX;OI MERU 1.8 NW. 1982 HEATER OIL m* KIRINYAGA 1.2 OCT. 1979 HEATER OIL KRJORO * MERU 1.8 FEB. 1984 HEATER OIL LITEIN * KERICHO 1.8 MAR. 1966 HEATER OIL MAK- BTURAGA'A 1.8 SEPT1981 HEATER OIL MATAARA* KIAMBU 1.2 APR. 1964 STEN4 OIL MOGOSOSIEK KERICHO 1.8 MAR. 1984 HEATER OIL I'dUGANIA* EMBU 1.8 APR. 1980 HEATER OIL NDIMA * NYERI/KIRINYPGA 1.8 SEPT 1981 HEATER OIL WAMACHE KISII 1.2 AUG. 1979 HEATER OIL NYANKOBA KISII 1.8 MAR. 1966 HEATER OIL WANSIONGO * KISII 1.8 APR. 1974 HEATER OIL NJUNU l+lmvma'A 1.2 JUL. 1979 HEATER OIL OGEMBO KISII 1.8 JUL. 1984 HEATER OIL RAGATI NYERI 1.8 JUL. 1951 SIWJM F300D RUKURIRI EMBU 1 . 8 APR. 1984 HEATER OIL SANGANYI KISII 1.8 AUG. 1981 HEATER OIL TM;AT* KERICHO 1.8 MAR. 1971 HEXER OIL THE;TA KIAMBU 1 . 8 JAN. 1981 HEATER OIL THUMAITA * KIRIWAGA 1.2 NW. 1975 STEW4 WM=O TDmE KISII 1.8 NW. 1982 HEATER OIL 'NYl%LCAPACITY 62.6 * Field Audit by Consultants Septmber/October 1985. F-Y STEAM NUMBER OF CAPACITY RADIATOR NIODOR FzlCmRIES DISTRICT MADE TEA OR AIR OIL FUEL MILLION KG HEATER NAND1 NYERI Km OIL OIL 5 HEATER OIL 1 m OIL MERU 2 STEAM Km 2HEATER OIL KIAMBU OIL OIL KIRINYAGA 2 STEAM P m D 1 HEATER OIL KERICHO OIL KISII 8 HEATER OIL EMBU 2 HEATER NYERImIRINYAEA 1HEATER OIL 39 !lm!?&CAPACITY 62.6 ANNM 3.2 L I S T S OF PRIVATE s m TEA F m E S FACrORY STEm CAPACITY DATE OF RADIAIlOR hWD OW FACrORY D I S T R I m MADE TEA OPERATIm OR AIR OIL FUEL M I L L I m KG HEATER cH?!mm KERICHO SmAM rn KrMLm KERICHO STEAM rn KERICHO KERICHO STEAM KOD TFGABI KERICHO STEAM rn JAMKI KERICHO STEAM KOD KORUMA KERICHO STEAM ham KIRIMA KERICHO STEAM FXSOD c2mGoI KERICHO HEATER WOOD MAU FOREST KERICHO STEm r n D KAISIX;U KERICHO - - C H m N D A y KERICHO HEATER ham KITUMBE KERICHO HEATER WOD SQASA KERICHO STEAM AND KXlD HEATER c3-mmwl KERICHO STEAM AND FXSOD HEATER IcyMuLm KERICHO STEAM FXSOD MARAMARA KERICHO STEAM WOOD& L I T l Z E OIL S n KERICHO KERIrnR SOTIK KIPKEBE S m I K SOTIK HIGH- LANDS m I K SOTIK TEA CO. SOTIK S A M NANDI PRE 1963 HEATER m KEFcHOklO NANDI PRE 1963 HEATER rn (3IEM(%rlI NANDI PRE 1963 2lTEml m KIPKOIMEC NANDI PRE 1963 SmAM WoD KAPSUMBEIWE NANDI PRE 1963 STEAM WOOD K A I M E I NANDI 1960 HEATER WOOD K A F a m U A NANDI 1957 HEATER m KIm1 NANDI N/A N/A N/A NANDI TEA NANDI N/A N/A N/A s m NANDI N/A N/A N/A T I N D r n NANDI N/A N/A N/A ,slmWDG NAND1 ANNEX 3.2 (CONT'D) FACTORY STEAM CAPACITY DATE OF RADIATOR hWD OR FACTORY DIS'rRICI' MADE TEA OPERATION OR AIR OIL FUEL MILLION KG HEATER MABROUKlE KIAMBU 4.1 1938 STEAM WDOD KARIRANA KIAMBU 1.2 1962 I-DnTER bD3D IQ3xONX IUAmU 1.2 N/A N/A OIL MICHIMUKLJRU MERU 2.0 PRE 1963 HJ3ATER hWD & OIL SUBUKIA MORO 0.1 N/A N/A N/A TUCAL m N A L CAPACITY 73.2 2/ -/ 1 Rebuilt and camnissioned 1974. - 2/ Full infonrration is not available in respect of 8 factories having a total capacity of 8.7 million kg. Of the balance 64.5 million capacity, only one factory (1.2 million capacity) uses woai fuel and a little oil. The private sector has to larye degree already changed over to fuel-. 4. ENERGY AUDIT PROGRAMME 4.1 Approach and Methcdoloqy A total of 19 KTDA tea factories =re selected for energy audit reports. At least tm tea factories r e selected from each tea district, one using indirect steam air heating technology, the other using direct air heating technology. The initial selectionwas mde by the Consultants and discussions =re then held with the KTDAto select the actual factories for audit. The initial selectionwas M f i e d to suit operational constraints and requirerrrents identified by KTDA, and also to direct the Consultants' attention to particular areas of perceived need. The final listing was jointly agreed with both the KTDA and the MOERD, and the progrm for energy audits prepred. The tea factory audits had to be very tightly programned and controlled, with each audit only involving one day of an individual Consultant's progrm and, for the mst part, the tm energy audit Consultants on the team mrking independently. Pgpendix J.l sets out the mrk progrm which was drawn up, agreed with KTDA, and essentially followxi. The tm energy audit Consultants carried out the first three audits as a joint team in order to establish a ccamrm audit mthodology and prwide preliminary -9 to the counterpart engineers assigned by MOERD to the project. Each audit team of one or sanet3.m~ tm of the young counterpart engineers prmrided by the MOERD. Each Consultant was equipped with appropriate audit instmmmtation, particularly high tanperature pyrcaneters, flue gas analysers, high temperature thenmneters, hygmmters, draft gauges, electrical measuring instruments and the like. The planned audit progrm was adhered to with minor changes only to cater for particular operational problems experienced by Factory Officers in the field. This delayed but did not otherwise reduce the overall objective of carrying out the 19 audits thoroughly and to a predetemined plan and methodology. 4.1.2 Audit Data Collection and Recordinq In order to assist in data collection, an Energy Survey Questionnaire was prepared by the Consultants and distributed in advance. A typical copy is included as Appendix 5.2. Ccmpleted questionnaires for each factory appear as m d i x B of the individual Energy Audit Reports. An early policy decision was taken that Energy Survey Questionnaires be sent to all 39 KTDA factories, rather than to only the 19 to be audited. It was felt firstly that Factory Officers of the 20 non-audited factories muld feel involved in the energy efficiency exercise and have saatle preliminary understanding of the r k being undertaken, and hence have greater interest in the results and opportunities identified. Secondly, and mre importantly, it enabled preparation of a roanplete database of energy consmption and utilisation covering all KllllA factories. This served to provide a mre acmate and canprehensive perfomce trerrcd for all factories and so highlighted individual perfomces both abave'andbelow the mean for any type of factory and plant configuration. This decision has been justified by the results which appear in Chapter 5 of this report, and which are summrised in Appendix B - ?rea Industry Energy Usage Database. Prior to the c m m m m t of the audits, an Energy Audit Sheet as drawn up for field collection of essential mrking information on factory configuration, together with the leading parameters of f l m , volurnes, temperatures, outputs and the like to enable the preliminary mrk of analysis to start in advance of receipt of the full questionnaires. These Energy Audit Sheets, which bere only prepared for the 19 factories audited, are included as Appendix A in each Energy Audit Report. Moreover, a &el Energy Audit Reprt format was drawn up to enable the Consultants to indicate to each Factory Officer the type of information being sought,the m e r in which it muld be used, and the form in which useful conclusions muld be drawn. The &el form served as an effective checklist in the fast ming audit progrm. 4.1.3 Transportation and Forestry Data Collection The Energy Survey Questionnaires bere extended beyond the requirements for plant and fuel particulars to gather data on the transportation and packaging systans in use at each factory, including questions on collection and mmment of green leaf to the factory and made tea £ran the factory. Each questionnaire also included a cmprehensive section calling for forestry and fuel- data fran those factories burning mcd or with the prospect of burning mcd. As reported elsewfiere, given the lack of forestry information £ran KTDA factories, the necessary infomtion which was gained £ran the private estates has proved to be invaluable. 4.2 Factory Officers' Saninar After the methcdology was established in the first two days following the arrival of the Consultants' team in Nairobi a Seminar was designed and munted for KTaA Factory Officers. This one day Sgninar, oryanised by the MOERD and the Consultants,was held in Nairobi on 16 Septmber 1985. The Sgninar was attended by the Factory Officers of all 19 factories to be audited, a mst encouraging response. The Sgninar was led by the Consultants insofar as it was used to explain and illustrate to Factory Officers exactly the methcdology of the Consultants' approach, the timing and importance of the information sought in the Energy Survey Questionnaires, and the technical issues to be addressed. The Seminar program^, attached as Appndix 5.3, included addresses by individuals froan each of the above groups, each of hm had an important role to play in the successful conduct of the study. Firstly, the PlIOERD set the overall scene, clearly establishing and emphasising the Governmnt's key thrusts towards energy conservation and fuel oil substitution and the vital role of the KTlX in these areas. Next, the representatives of the KTlX spoke, essentially addressing their am staff, on the vital financial importance to KTDA of improved energy mnagmsnt, cartbustion practices and the like, and expressed their ccanplete and holehearted support for the mrk of the Consultant team. These opening addresses WXE follmd up by technical papers froan each of the Consultants in their particular sphere of interest and canpetence. 'Ibpics covered ere oil and fuelwood cahstion, fluidised bed drying, forestry and fuelwood availability, and the conduct and methodology of audit reports. Considerable opportunity was given to the Factory Officers to express their own views, to ask questions and to becaane thoroughly familiarised with the intended approach to the study objectives. Valuable personal relationships WXE established, and vent far tuwards helping in the orderly and cooperative conduct of the audits. The Sesninar, undertaken at the initiative of the MOERD, was a notable success and achieved its objectives. Subsequentmrk in the field was facilitated by the introduction of K!IDA's key staff to the requirements and objectives of the energy efficiency study at an early stage. 4.3 Work Proq-ramne The audit mrk was executed by five teams mrking in parallel. The mrk of these teams, identified as A, B, C, D and E, hose mrk is described belm. Audit Teams A and B, each consisting of the Audit Team Mder, a counterpart engineer f m the PlIOERD and a driver, mrked together for the first t m or three audits for the purposes of exchanging and standaxtising methodology and approach. Thereafter the teams operated indepemiently with the Team Mders, meeting only at weekends and tawards the end of the fieldmrk period to canpare findings. Audit Team D, led by the mergy Audit mgineer responsible for the audits of the parallel industrial progrm undertook the final two audits as the leaders for A and B had to return to Australia before it was possible to undertake this mrk. The detailed mrk of the energy audit progrm appears in the 19 individual mergy Audit Reports, each of which has been published separately. 4.3.2 Forestry (TeamC) The mrk of the Forestry Consultant was not dixectly related to that of the energy audit teams and accordingly, acccmpanied by the KTDA Forestry Officer, he fad Team C and operated independently. The Forestry Consultant's program was divided a h s t equally into t m phases. The first or data collection phase was nearly a l l based in Nairobi, visiting key data sources, notably the KTDA, the Forest m t and a n d r of private sector tea ccxnpany head offices. The second phase involved field studies, visits to KTlX tea factories, field departments of the Forest Deparhmt and to private sector estates. Data was also obtained by inclusion in the Energy Survey Questionnaire (SeeAppendix 5.2) of Question 18, a question which each of the respanding Factory Officers addressed in saane detail. The Forestry Consultant's field mrk was ccsnpleted in Nairobi with data cansolidation exchange and ccmparison of data with the Peri-Urban Fuel- study team. The input of the private sector estates and the Peri-Urban Fuelwood st* team was invaluable in view of the very short t h permitted in the field for the Forestry Consultant. The detailed mrk of the Forestry Consultant appears in this report as Appendix C - B i m s s as an Energy Source for the Tba Industry. 4.3.3 Transport and Packaqinq (Team E) The mrk of those mrs of the Consultant's team examining the transport and packaging aspects of the Brief was also not directly related to the mrk of the energy audit teams and, accordingly, they too mrked independently. Data collection was handled primarily by inclusion in the Energy Survey Questionnaire tSee Agpmdix 5.2) of Question 16 on transport, and Question 17 on packaging. -r, the Consultants visited several of the KIDA tea estates, notably those to the north of Nairobi, for face to face discussions on the issues with Factory Officers . Discussions wxe also held with KTDA officers in Nairobi. Their detailed mrk appears as Chapter 6 of this report. 5. pcmNTIAL FOR ENERGY CONSERVATION 5.1 The Pattern of Enemv Consumption in the Industrial Sector The major energy using mufacturing industries in Kenya are food and beverages, cement and ceramics, and paper manufacturing. In aggregate, industry in Kenya used 25 petajoules (PJ) of energy of all types in 1983 with these three industry groups using a b s t 86% of this total. Tables 5.1 and 5.2 below give the werall existing and projected future pattern of energy consumption in Kenya in the industrial sector, firstly by ISIC grouping and, secondly, by energy source for the years 1983-1995 inclusive at five year intervals. F m these data it will be seen that total industrial energy consumption in 1995, the end of the study period, is predicted as 47 PJ, with allowance made for the effect of reductions due to this report's proposed energy management measures of 2% per annum for the years 1986-1989, and 1% per annum for the years 1990-1995. These energy management targets are achievable, being broadly consistent with results achieved by energy management progrannnes in other industrialised countries. TABLE 5.1: ENERGY CONSUMPTION BY ISIC GROUPING 1983 - 1995 ....................................................................... Assumed SHARE % Petajoules (PJ) Growth ISIC INDUSTRY GROUPING (1983) 1983 1985 1990 1995 Rate from 1985 ( % I ....................................................................... 31 Food,drinkandtobacco 45.4 11.4 15.7 19.9 26.3 7.7 32 Clothing and fo o t m 4.1 1.0 1.2 1.7 2.6 8.5 33 Wood products 1.3 0.3 0.4 0.5 0.6 4.5 34 Paper products 10.9 2.7 2.8 3.4 4.2 6.0 35 Chemical products 6.3 1.6 1.3 1.5 1.8 5.5 36 Ceramic products 29.5 7.4 7.3 8.5 10.2 9.0 37 Basic metal industries 0.0 0.0 0.0 0.0 0.0 8.0 38 Metal products 2.1 0.5 0.5 0.7 0.9 7.5 39 Other products 0.4 0.1 0.3 0.3 0.4 10.0 'IWTAL ENERGY CONSUMPTION 100.0 25.0 29.5 36.5 47.0 5.1.1 Scope for Industrial Enemy Conservation in Kenya To provide same dimension to this potential, total industrial energy usage in 1984 was in the region of 28 PJ/a. The industrial energy audits, undertaken during the ccanpanion study "Kenya - Coal Conversion and Energy Conservation and Substitution Action Plan" which covered approximately 50% of this total industrial energy useage, identified the potential for Target 1 plus Target 2 savings of same KSh 290,000,000 (US$17,000,000)per year even excluding possible savings in transportation. Consequently the potential saving for all Kenyan industry may conservatively be estimated as having a value at the point of use approaching KSh 600,000,000 (US$35,000,000) per year at typical 1985 energy prices. Very importantly, such savings would add directly to industry profit, and in most cases increased profits would be easier to achieve from energy conservation than say from increased sales. In 1985 that "half"of the Tea Industry represented by the KlDA was characterised by a total energy consumption of 1,440 TJ (1.44PJ). with this study identifying opportunities for reducing this to potentially 1,160 TJ (1.16PJ). 5.2 The Enerqy Supply Position 5.2.1 The Current Position The industrial energy situation in Kenya is characterised by the heavy use of fuel oil, bagasse and fuelwood, these accounting for more than 80% of industrial energy use. By far the largest industrial energy source in Kenya is residual fuel oil (RFO), delivered throughout Kenya from Mcanbasa where it is refined from imported crude. It amounted to 38.5% of the total energy consumed in 1983 and around 35% in 1985, as shown in Table 5.2. Fuel oil is £011- closely by bagasse, used a W s t exclusively by the sugar industry which crushes the cane and , though highly energy intensive, draws little upon imported fuels other than fuel-. Fuelwwd is used quite widely in the tea industry, especially in its private sector, but to date to no great extent in general industry. It is h m r the dcnninant fuel in the domestic sector. The general perception of Kenyan government, industry and the caamnurity is that, apart from favoured locations, fuelwood cannot be considered seriously as an industrial fuel on the grounds of security or adequacy of supply, or future price perceptions, or both. In other sections of this report and the canpanion report entitled Kenya Coal Conversion and Energy Conservation and Substitution Action Plan the potential for supply and price of f u e l d is examined. At the time of preparation of this report the ESMAP Peri-Urban Fuel- Study was in hand and, in due course, its findings will be of considerable importance in furthering bowledge of f u e l d potential in Kenya. Coal with about a 10% share in 1983 increasing to about 15% in 1985 provides a substantial component of Kenyan industrial energy but is used only in the cement industry and then in only one of the two plants. This is the Bamburi Portland Cement plant, located near the port of m s a . The coal now used is imported from Swaziland and, while low in volatiles, is high in carbon and ash which are of benefit to cement production. These characteristics are, however, generally unsuitable in thermal coal for steam raising. Electricity provides about 8% of industrial energy use, but in terms of cost of energy to industry is much nearer one third. 5.2.2 Scope for Beneficial Ehem Supply Policies The major indigenous energy resources of Kenya, if properly developed and managed, could provide a substantially greater share of the energy demands of the industrial sector than is the case at the present time. Homver, as indicated in the following, the scope for policy to expand energy supplies in Kenya is restricted by the limited extent of indigenous energy resources and by Kenya's inability to exert a significant influence over imported supplies. MOERD and other GOK departments are we11 aware of the quite severe supply and cost constraints upon the developnent of indigenous energy resources: electricity from hydro and geothermal sources, biomass f m forests or agricultural wastes, and the small but not unimportant sources such as solar and wind. Unfortunately for Kenya, to date at least, no fossil fuels can be included in the list of indigenous energy resources. TABLE 5.2: ENERGY CONSUMPTION BY ENERGY SOURCE 1983 - 1995 SHARE % Petajoules (PJ) ENERGY SOURCE (1983) 1983 1985 1990 1995 Petroleum derivatives LPG (LiquidPetroleum Gas) 0.2 0.05 0.04 0.05 0.07 GAO (GasOil) 0.2 0.04 0.54 0.68 0.89 ID0 (IndustrialDiesel Oil) 0.8 0.21 0.40 0.50 0.65 RFO (Residual Fuel Oil) 38.5 9.61 10.27 12.57 16.09 Electricity 8.3 2.08 1.84 2.30 3.00 Coal 9.5 2.37 4.92 5.85 7.25 Biomass fuels wood Bagasse Other Tcn'AL ENERGY 100.0 25.00 29.50 36.50 47.00 5.2.3 Position with Individual Fuels 5.2.3.1 Residual Fuel Oil (RFO) The RFO used in industry in Kenya is refined f m crude oil at the Kenya Petroleum Refineries Limited refinery in Mcanbasa. Present policy is to operate this refinery to produce Kenya's requirements for motor spirit and gas oil (the "whiteoil" rule) and under these circumstances appro-tely twice as much RFO is produced as is required for Kenya's own use. The surplus is exported at spot market prices which are relatively low because the product is heavy, of variable quality and already plentiful on world markets. The potential for mdifying the refinery to achieve a range of end products more suited to Kenya's needs has been the subject of separate study and lies outside the scope of this report. It is understood, however, that these modifications could involve such a substantial investment that no early change can be anticipated in the RFO supply position. While Kenya's refinery continues to be operated as currently there appears to be little scope for change without indigenous oil. 5.2.3.2 Coal Kenya has no coarmercial indigenous coal mines; the only coal used in Kenya is imported by Bamburi Cement for use in its own kilns. As noted in Section 5.2.1 this imported fuel is not suitable for general use in boilers. No price control is applied to this fuel although there is an import duty. There is little scope for Kenya to benefit £rum alternative coal supply policies. 5.2.3.3 Electricity Electricity supplies in Kenya are characterised by the use of hydro and geothermal sources for base load. Water storage capacity has been limited and a share of Kenya's hydro power is also imported from Uganda. Thermal power plants have been used for peaking and for drought years. The low cost of base load hydro has had an effect in reducing the operating cost savings available froan off peak cogeneration. There are plans for additional supplies of centrally generated electricity. A programne of investment in water storage is underway which will help this position. H m e r , the capital cost will be high and will contain a significant import cmpnent. As regards other £ o m of supply there is limited scope for such developent except through cogeneration and, as noted, this is likely to be restricted by the low marginal generating cost of Kenya's base load sources. In the Tea Industry one of the significant energy sources, currently and potentially, is fuelwood. Fuelwood policies in Kenya are affected by the very large shortfall projected between existing supply frcan forest yield and demand for the large quantities used for charcoal and fuelmod for urban household use. There is a very large number of existing and potential suppliers ranging from land clearance through agroforestry to Government plantation forests. However, supplies are uncertain and organisation is limited. Moreover much industrial fuelwood cames f m Government forests at prices which do not recover the costs of growing. In order to overcame the uncertainty, this report recamnends that industrial use of fuel- be considered only where the user is confident of a secure supply. In same instances this would require the user to invest in a fuelmod plantation, as is the case of the private sector of the tea industry, or to contract with a carnnercial source of fuelwood. Moreover all fuel- recamendations include the proviso that existing fuel oil combustion facilities be retained to enable consumers to respond to price changes in the future. The selected fuelmod technologies are designed to pemit this flexibility. In order to meet growing demands, fuel& consumed will need to be replaced by plantation or other forestry activity. Various sources were considered, including the thinning of existing forests to stimulate their growth while supplying current fuelwood. Agroforestry was also considered, attention being given to the arguments of agroforesters that wood could be made available frcan wasteland using underutilised resources (whileat the same time taking into account the aryuments of other observers that adequate land could not be freed in Kenya for intensive forestry or fuel- production). Kenya has attractive opportunities to benefit from untapped sources of fuel& in the form of corrunercial or plantation forests which are not currently being thinned. When forests are not thinned, they produce less timber of marketable size - which in Kenya means less marketable timber for sawmilling or paper manufacture and lost forest revenue. It has been reported that cannercia1 forests are often not thinned because there are no funds available for the Forest D e w t t to hire the workers required. H w e r , in countries like Kenya where there is a market for the thinnings frcan the forest, thinning is often carried out at no cost to the forest owner by camnercial organisations who pay the forest owner to gain access to the thinnings. This practice is widespread where there is an integrated forest industry which manufactures chipboard and particle board from the m l l sized thinnings product. Many plantation forests in Australia and New Zealand are thimed camnercially and similar practices are followed in Europe. In Kenya, thinnings could be used as industrial fuel with the fuelwood ccanbustion technologies proposed, and this mrket might rdce camnercial thinning of s m forests viable. As noted in Appedix E, there are substantial volumes of forest thinnings available although there are significant costs of thinning and moving fuel- f m the forest to the user. The feasibility will depend upon fuelwood prices and costs of extraction. Thinnings could add f m 25,000 to 400,000 tomes per year to fuelwood supplies. Appendix C examines the scope for additional supplies of fuelwood f m Forest De-t lands, plantations and unused roadside areas and other available public areas, and f m smallholder woodlots. It seems very likely that those lands could yield f m 25,000 to 50,000 tonnes per year of additional supplies of hardmod fuels. Forest Department lands could also provide up to 140,000 tonnes per year of conifer fuelmod f m existing pulpwood resources although there are implicit difficulties. Plantations on public lands could supply a further 10,000 to 25,000 tonnes per year of fuelmod with a high probability of success'. Moreover allholder &lots could bring a further 50,000 to 100,000 tomes per year to fuelwood supplies with medium to high probability of success. Policy masures to develop fuelwood, which could also develop biwass fuels, are described in Section 5.2.3 following the discussion of the scope for biwass residues which follows. 5.2.3.5 Biamass Residues Only limited attention has yet been given to exploiting the indigenous biarnass energy potential of Kenya to meet the needs of industry. At least in the short tern, howwer, it appears that there are saw considerable difficulties - technical, econdc and infrastructural - in achieving any substantial substitution for imported fuels. To clarify the position a general biarnass resource review, based on the literature available supported by an interview progrm, was carried out and appears as Appendix C - Biarnass as an mergy Source for the Tea Industry and, as Appendix E -Indigenous and Byproduct Fuels. This review has been based on all readily available written data (e.g. the Beijer report et all, the questioning of authorities and enterprises with information on bimss resources (e.g. the sugar, sawmilling, rice, sunflwer, coffee, cashewnut, and forestry industries), and user information gained during conduct of both the coal and tea audit progr-s* At 1985 prices, substitution of biarnass, or mre particularly bimss residues having no other established mrket, appears to be a possibility for the displacement of fuel oil, and same plants have successfully mde this substitution. Secure supplies at attractive prices muld be required and are likely to be feasible in selected locations, with coffee husks, rice husks, sawdust, cashewnuts and bagasse being same examples. The potential scope for additional supplies were seen to include over 60,000 tonnes per year of sawdust, 50,000 tonnes per year of bran, 25,000 tonnes per year of coffee husk, 13,000 tonnes of sisal f l w ~ run, 8,000 tonnes of rice husk, 60,000 tonnes of pineapple waste, 20,000 tomes of coconut waste and 150,000 tomes of papyrus. Prices vary, fuels are localised and same of the fuels require quite specialised combustion equipnt and practices. 5.2.4 A Fuelwood and Biomass Residue Fuel Developnt Policy By definition, byproducts are produced incidentally in the manufacture of other products. If byproducts are to substitute for cananercial fuels, they must be reliably available in uniform quality. At the present time, however, the institutions to achieve this are not in place in Kenya, although substantial volumes of fuel m y be available. Institutional options to achiwe the requisite uniformity and availability include: fuel users, who muld oryanise their cwn supplies; suppliers, who muld mount a fuel marketing system; private traders who would arrange to purchase surplus and sell on to users; a para statal organisation subject to the Ministry of Eneryy and Regional Developnent, and/or other Ministries. Whichever of these options is chosen, a programne of demonstration and institution building appears necessary if byproducts are to be mobilised as fuels in Kenya. A number of policy choices are available. One which appears attractive is to identify potential users of fuel and to license a number of businesses to supply selected users. Whether the institution takes the form of a Kenyan fuel d e v e l o ~ t corporation, or a range of individual licensed businesses, it would contract to purchase fuels and sell them on to users. Fuels could cme f m any or all of the sources noted above, including smallholder &lots, forest thinners and producers of byproduct wastes. Fuels would need to be delivered to specific users in uniform quality and this would be the special ccsnpetence of the organisation. Fuelwmd from thinnings provides an example of the type of policy dwelopnent which would be necessary. Implementation would require policy co-ordination between the Ministries of Energy and Regional Developnent, Industry and C~rmerce, Agriculture and Livestock Developnent and Environment and Natural Resources (ForestDepartment) to develop the institutional f r m r k to allow emrgence of a profitable camnercial thinning and fuelwood supply sector. The Forest Departmmt could license a limited number of carmrercial operators to thin forests following an appropriate schedule. The Minis- of Energy and Regional Developnent could license these same operators as fuel& suppliers to industry. Both Ministries would be responsible for ensuring satisfactory performance of the relevant operations of thinning and of delivery of fuel. The Ministry of Ehergy and Regional Developmmt could assist with technical support for fuel& production and use. This could extend to comnercial charcoal production for more distant markets. The Forest Department could assist with thinning schedules which ensure that reliable supplies continue to be available within a reasonable distance of users. The Ministry of Industry and Carnnerce could foster the entrance of investors into the new industry and possibly seek to develop an associated integrated forest industry producing a range of other products such as chip board, particle board and even charcoal. This proposal is presented in outline only and would require the attention of the Ministries concerned - for instance, to consider the levying of licence charges for thinning in forests which are very near to a market, thereby encouraging thinning of more remote forests. The proposal brings together the objective of maximising the use of available indigenous fuels with the need to thin plantation forests to obtain maximum forest product. It also represents a rural based employment opportunity while at the same time complementing proposals to invest in the substitution of fuel- for fuel oil in industry. Policies and approaches such as those described above for generating additional fuelwood and mobilising thinnings would alluw the developnent of a profitable bicnnass fuels supply sector, licensed to collect and sell bicnnass and wood for use as industrial fuels. The contribution to indigenous fuel supply in Kenya f m such policy developnents could be substantial and could significantly and beneficially re-shape the overall pattern of energy supply. 5.3 Enerqy Demand Policy 5.3.1 Enerqy Conservation Awareness 5.3.1.1 Government The Government of Kenya (GOK), particularly through its Ministry of Energy and Regional Developnent (MDERD), is very conscious of the importance of minimising the utilisation of imported petroleum derived fuels in every consuming sector: industrial, camnercial, transportation and domestic. 5.3.1.2 Industry in General At present, Kenyan industry has a limited but increasing awareness of the benefits to be achieved frwn industrial energy conservation. Few companies have an energy management programne; of the 21 industrial enterprises audited during the ccanpanion project "KenyaCoal Conversion and Energy Conservation and Substitution Action Plan" less than 25% had such an energy managemmt programre in place. Few only had achieved a measurable result f m energy conservation efforts. A high proportion had little idea of the cost of energy either in total or as a percentage of production costs. Notable exceptions existed; often, though not always, in those ccanpanies with access to the energy management programnes of their overseas parent ccanpanies. While the audit teams were always accepted with courtesy and willing cooperation, it was felt that there was sametimes little awareness of the benefits to be gained - a factor which led to the delayed completion in same cases of the Energy Sumey Questionnaire which formed an essential part of every energy audit report. Moreover, in many cases, the questionnaires revealed that the basic recording of energy usage data was sometimes minimal, and its value probably not recognised. Given this situation, it was not surprising that industrial energy conservation was not recognised as providing one of the better opportunities to enhance company profit and to achieve the werall national objective of minimising dependence on foreign oil imports. Nevertheless experience in various International Energy Agency (IEA) member countries shows that gains f m energy conservation efforts occur slowly but surely. Such gains can also be achieved by Kenyan industry. 5.3.1.3 Overseas Industrial Enerqy Conservation Experience The scope for energy savings in industry worldwide has been highlighted by a wealth of published studies carried out in nearly all industrialised countries. These generally indicate the achievanent of short tern energy saving targets (Target 1, or T1) of between 15% and 25% per unit of industrial output through impraved energy utilisation and conservation. In the longer tern these targets should be exceeded with investment in appropriate new technologies associated with appropriate fuel and equipnent substitution (Target 2, or T2). Many industries have initiated energy management programnes within the last fifteen years and almost always the energy savings achieved have matched or exceeded initial expectations. Moreover, the reductions have often led either to deferment or even cancellation of proposed capital expenditure on additional energy consuming plant, or resulted in the closing down of costly and outdated facilities long thought to be indispensible. It has also been found that, apart f m additional profit to the enterprise, energy conservation can yield valuable benefits by way of reduced d m d growth. For example, based on broad figures applicable to the typical current cost per installed kilowatt of hydro capacity in Kenya, KPLC has assessed that each kilowatt saving in electrical demand can save fixed capital of around KSh 25,000 in generating, transmitting and distributing plant and equipnent in the form of dams, F r stations and transmission lines, not to mention the associated investment of human and environmntal resources. These figures are canparable with overseas experience. For these reasons, in some countries energy management services are provided free of charge, with government support, to reduce investment in energy producing and distributing plant and equipnent that m y not be needed. On the technological side, one of the more encouraging and significant overseas developnents is in the field of pmgrammble electronic energy manage~llent systems (EEMS), where the increasing capability and decreasing cost of computer technology based control equiprent are beginning to be appreciated. Appearing on the market is a range of inswtation, measurement, and control systems which can be prograrrcned for a wide variety of input variables and output c ~ d s , reports and analysis. For example, a number of buildings or industrial energy consuming processes can be centrally connected to a ccmpter which measures and controls energy expenditure on lighting, air conditioning, electrical maxirmrm demand and the like, taking into account the whole range of relevant variables. Such systems are still relatively in their infancy in Kenya and it may be some time before the market develops. Nevertheless they have a strong future and are already showing remarkable savings. Their rate of developrent and application is quite dramatic. The worldwide energy management industry is cohesive, cooperative and liberal with information. It is strongly reconmended that Kenya makes maxirmrm use of the very extensive experience in industrial energy management in other countries available through the International mergy Agency, and through informal linkages with national Departments of mergy. 5.3.1.4 Current Enerqy Conservation and Substitution Efforts in Kenyan Industry Although the cost of energy has risen sharply in the last decade (except for the 1986 which sharp decline in crude oil prices), the energy conservation potential of Kenyan industry has only just begun to be realised. Among other considerations it was in recognition of the potential for industrial energy conservation in Kenya that the Ministry of mergy and Regional Developrent (MOERD)was established. Since its formation the MOERD has embarked upon an intensive campaign of public and industry education, including the Kenya Renewable Energy Developnent Programne (KREDP)and the establishment of a national industrial energy use survey. Continuation of these efforts as is now in hand will produce progressive increases in awareness. An action plan for KTDA is described in some detail, and recumnendations mde, in Chapter 9. As regards results achieved in Kenya, most case studies have confimd that it is not unduly difficult to achieve savings between 15% and 25% of current energy costs through fuel substitution as ell as direct energy conservation. In Kenya much has already been done in the Target 1 area of industrial 'first aid', i.e. maintenance of steam traps, replacement of faulty or inadequate insulation, the repair of leaky valves and joints and so on, although this is essentially only proper maintenance. As yet, there has been little longer tern 'themdynamic restructuring' or Target 2 work in industry, i.e. the critical overview of the role of energy in a total integrated operation w i t h high grade energy used only where appropriate, and with low grade or 'waste' heat recovered and re-employed wherever possible. It seems that present day managements in Kenya, as is the case in industry worldwide, still concentrate investment mre on production increase than waste reduction, wen where conservation invesbnents can show demonstrably higher rates of return at lower risk. Such invesbnents are, however, less visible and hence seemingly less attractive. 5.3.2 The Enerqy Pricinq Environment and Incentive Framemrk 5.3.2.1 Introduction The 1985 position with the principal fuels and their prices is described below while possible future variations in those prices are treated in Chapter 8, each fuel being cwered under its respective heading. Table 5.3 sumnarises the economic and financial prices of fuels in Kenya while Table 8.2 presents the ranges of prices used for the testing of project results, the ranges being designed to test scare extreme conditions as ell as prospective fuel price levels wer future years. It should be noted that the analysis of fuel prices, including those for fuel oil, was completed during the fieldmrk period in 1985 when world prices appeared stable. Subsequent to that work, in 1986, world prices for crude oil fell dramtically causing various authorities, including the World Bank, to revise oil price forecasts downwards. Because of the diversity of views about the future price of oil, this matter has been cwered fully later in Chapter 8 and in Appendix D, using sensitivity analysis to provide a basis for relating investment decisions to expected prices. TABLE 5.3 - KENYA: MIONMIC AND FINANCIAL PRICES OF FUELS (KSh/GJ) December, 1985 Gross Economic Price Market Price Delivery Specific Charge to Fuel Energy GJ/tonne KTDA Factories Imported Fuels C.I.F. Mcanbasa C.I.F. Mcanbasa Economic Financial RFO 280 CST 42.9 25 21 19 Thermal Coal 26.8 42 20* 18* B *To Nairobi Only At mill or edge At mill or edge Delivery Charge Untraded Fuels of forest of forest 50h Radius Fuelwood (30%)14.2 36 Inch Sawdust (50%)10.2 10 mcbw Grain By- product 13.9 7 Electricity n.a. 392 164 n.a. n.a. .............................................................................. Source: Appendix D - Economic and Financial Prices of Fuels. Table D.ll Note: Econcmic price is border price or opportunity cost. Financial price includes duties and charges. This table includes foreign exchange cost adjustment. Delivery charges for Untraded Fuels can be pro-rated for different distances. 5.3.2.2 Eherqy Pricinq Principles mergy pricing policy aims to discourage the wasteful use of scarce fuel resources. Efficient pricing ensures that the highest available return is obtained froan the fuel and energy resources used. Pricing policy has effects on the allocation of fuels be- different purposes, on investment in and the expansion of fuel supply capacity, and on financial flows between user and supplier. As a result it has a widespread influence and a complete appraisal requires consideration of many factors including: simplicity, public acceptability and feasibility; stability of price level and of revenue yield adequate to meet supplier requirements; fairness betseen different users and between different fuel types. In application, a fuel pricing policy should: reflect marginal costs of supply to consumers to discourage wasteful use; provide adequate revenues to suppliers to encourage capacity adjustments; distribute benefits and costs equitably between suppliers of different fuels and different classes of users; provide an incentive to suppliers and to users to carefully select and fully exploit efficient technological alternatives for energy supply and use. The current application of these principles to each of the four major industrial fuels in Kenya is discussed in tum under the following headings. 5.3.2.3 Refined Oil Products Residual fuel oil pricing in Kenya is inextricably tied to refining policy because the pattern of demand for the different refined products results in a substantial surplus of residual fuel oil when local demand for lighter refined fuels is met through local refining. Thus the policy of refining lighter fractions locally makes it necessary to export surplus residual fuel oil at prices which are we11 below CIF import costs. Pricing seeks to recover the costs of imported crude and of refinery operation while discouraging transport use of fuel and avoiding consumer price increases which wuld flow from industrial fuel prices through the existing price control system. Transport fuels are priced above estimated import parity lwels while doanestic kerosene and fuel oil are priced below estimated import parity. In general this system reflects marginal costs and apparently provides adequate operating revenues. However, it mitigates against the efficient selection and use of technology by industrial fuel users. Despite the reported depletion of forest resources, fuelwood prices in Kenya have s h m little tendency to rise in relation to other fuels. Industrial users report very low prices and soane difficulties in obtaining increased quantities. These low prices reflect stumpage charges which are below econdc cost. Direct use of fuelwood is mre ccamaon in rural areas and prices for privately collected or gruwn fuelwood are not controlled. Price controls have however been applied to charcoal although the benefit to urban households has been eroded by repackaging. Much of the fuelwood used to produce charcoal is reported to come frcarl land clearance and there are no charges levied for clearance of fuelwood. The pricing of public forest fuelwood supplies in Kenya does not reflect the marginal costs of supply, does not provide adequate revenues to the public forests, is inequitable to private and public growers of fuelwood, and reduces the incentive to use technology to improve use efficiency or to improve supply gruwth. Other observers have suggested the ned for higher stumpage charges; it is suggested that supplies could be expanded through encouraging the sale of thinnings as fuelwood, provided that fuelwood stumpage charges ere higher. Price control on charcoal also understates the marginal costs of supply, provides inadequate revenues to attract large scale investIwr~t, is inequitable to rural households and suppliers of charcoal and reduces the incentive to use more efficient charcoal burning and production devices. It would not be practical to charge stumpage for land clearance (with the aim of encouraging inveswt in plantations for the production of fuelwood and charcoal). On the other hand, higher stumpage charges £ram government forests and -a1 of price control on charcoal are recamended since these actions would encourage investment in fuelwood supply and more efficient use of fuelwood in industry and household - and m e market prices more in line with the economic costs of supply. 5.3.2.5 Electricity As indicated earlier, electricity supply in Kenya is marked by the large share of hydroelectric capacity in total generating capacity, limited water storage capacity restricting hydro flexibility and consequently the use of thermal plant for peaking supply. Electricity pricing policies have been subjected to direct price control with a view to limiting the impact of price increases on consumers. The tariff outcomes appear to have been directed to the recurrent revenue requirements of the supply authority. This has had the effect of averaging the low present costs of earlier capacity decisions with the high current costs of expansion. As a result tariffs have fallen below the marginal costs of supply and there has been a reduced incentive to users to conserve or cogenerate, and to the supply authority to expand. There has been an inequity between consumers with access to electricity and those without and an associated pressure to expand electrification. Meanwhile tariff policies have been under review and it is recamended that significant tariff increases be made in order to reduce the problems noted here. 5.3.2.6 Coal Coal pricing policies appear to meet the required principles of reflecting the marginal costs of supply, providing adequate revenues to suppliers, allowing for equity and giving an incentive to efficient use of technology in combustion and in coal supply. 5.4 Delivered E n e m Costs For the purposes of the audit programbe and audit reports, the delivered costs of each energy source appropriate to each factory were taken frarn individual factory cost records current at the time of the audit and sum~risedin the questionnaire response appearing in each individual report. The costs which embrace fuel oil, electricity and fuel- are surra~lcisedin Annex 5.1 - 1985 Delivered Energy Costs at Factory. For the purposes of subsequent financial and econdc analysis averages were derived based on this data, as explained in Sections 5.2 and 8.4. 5.5 Enerqy Conservation Potential in the Tea Industry The energy conservation potential in the tea industry can be expressed, for simplicity, in terms of achievable targets for energy use per unit of production, typically gigajoules per tonne (GJ/t). For the various tea factories in Kenya these energy intensity targets were defined at t w levels, being: Target 1 Energy savings target achiwable, based on (ShortTerm) conservation measures which could be taken almost inanediately with minimum engineering input and, in general, minimum capital investment. Typically, such measures would show a simple payhck of under one year and would include basic housekeeping and correct operating and maintenance practices. Target 2 Energy savings target achievable, based on (mng~ n n ) conservation measures which could be taken, with appropriate planning and engineering input and the expectation of capital investment in new or improved plant or processes or a more econcanic energy source, and which would give an acceptable econcanic and financial rate of return, (i.e.greater than 15% real). Energy intensity targets were set in accordance with: The preliminary results of the tea factory audit progrm, Internationally accepted energy intensity standards for the tea industry, suitably modified for Kenyan conditions and the factory concerned, and Experience in similar work in the tea industry. The energy conservation potential and the fuel substitution potential can be factored into the Database as appropriate for each individual factory and each energy source. For the factories which were not audited, target energy intensities*re selected based on comparable plant configurations and energy performances of the audited factories. The Database therefore enables the consequences of energy conservation and fuel substitution to be assessed in national energy consumption forecasts. The Database and energy intensity target settings therefore *re used to establish existing and future factory energy consumptions and to compute the energy conservation and cost saving potential for the tea industry. Table 5.4 below sumnarises in energy and financial terms these major Target 1 and Target 2 conservation potentials identified by the audit program and extrapolated for the whole of the KTDA. The achievement of these conservation gains would represent significant levels in the national economy, with notable rewards to the KTDA and its m y smallholders. As sham in Table 5.5 for Target 1, careful energy conservation measures, without substantial investment or engineering input could reduce present energy consumption by around 250 TJ/annum saving tat 1985 prices) MKSh 18 (MSUS1.1)per annum for a capital cost of little more than MKSh 2 (MSUSO.l), based on an estimte of just wer MKSh 1 for the 19 audited factories. As also seen from Table 5.6 for Target 2, additional investment and engineering could further reduce energy consumption by 33 TJ/annum, saving (at 1985 prices) MKSh 25 (MSUS1.5) per annum through investment projects and fuel substitutions costing (alsoat 1985 prices) approximately MKSh 32 (MSUS1.9). TABLE 5.4 : OVERVIEW OF ENERGY CONSERVATION POTENTIAL (All 39 KTDA Factories) Target Energy Saving Financial Saving Investment % TJ/a % M KSh/a SUS/a M.KSh MSUS ........................................................................ ........................................................................ TWlY%TS/WEIGHTED 19.6 282.2 39.1 43.2 2.6 34.4 2.0 AVERAGE ........................................................................ Note: Exchange Rate adopted - $US = 17 KSh The base for the above overview of energy conservation potential in the KTDA is given in Tables 5.5 and 5.6 which surr~narisethe Target 1 and Target 2 savings for each of the KTDA factories. These tables are described below. It should be noted, hawever, that subsequent to developing these proposed targets, there was a marked drop in the international price of oil. As discussed later in Chapter 8 and in Appendix D, these projects were then in 1986 subjected to sensitivity analysis and, in a number of instances,were found to be unattractive at the new low price levels. Furthemre, government policy of not making fuelmod available for industry in peri-urban areas, notwithstanding the apparent financial attraction in same instances, was taken into account. This led to the dropping from further attention of s m 5 or 6 projects earlier identified in the individual audit reports. Subsequent financial and economic analysis at 1986 energy prices sh& that the decline in oil price and, in particular, the perceived increase in fuel- price, had affected project viabilities, as would be expected. The results of these analyses are also discussed in Chapter 8. Nevertheless the balance of projects, attractive at 1985 energy prices, (refer Annex 5.1) have still been presented in this report so as to document areas of prospective opportunity should oil prices rise as forecast, and should fuel price differentials return to around the 1985 levels. 5.5.1 Enerqy Conservation Potential - Tarqet 1 As already defined, Target 1 (ShortTern) energy savings could be taken a m s t imnediately with minimurn engineering input and, in general, with minimum capital investment. In other words, the achievement of Target 1 would not require any major change to the existing factory plant configuration or method of operation, but rather attention to a wide variety of items. Each of the individual Energy Audit Reports sets out for the factory concerned the specific recmdatians appropriate to its own situation and its own energy conservation potential. Chapter 6 gives an overview of the Target 1 rec-dations . Table 5.5 below, which draws upon data given in Pspendix B - Tea Industry Energy Usage Database, sets out in sumnary form the Target 1 energy conservation potential for all of the KTDA factories,whether audited or not. As stated in Appendix B, the procedure for non-audited factories, all of which provided ccarrpleted Energy Survey Questionnaires, was to make an assumption of achievable Target 1 perfolmance based on the average of audited factories of ccanparable performance, plant layout and fuel type. 5.5.2 Enerqy Conservation Potential - Tarqet 2 Target 2 (mng Tern) energy savings have been defined as those achievable based on conservation measures which could be taken with appropriate planning, engineering input and capital investment in new processes or a substitute energy source. Thus, the achievement of Target 2 muld require, or muld be likely to require, same major change in the existing factory plant configuration and method of operation. Each of the individual Energy Audit Reports sets out for the factory concerned the specific recormendations appropriate to its own situation and its own energy conservation potential. Chapter 6 gives an overview of the Target 2 rec~ndationswhile Chapter 8 develops them as fundable projects. Table 5.6 below, which draws upon data given in Appendix B - Tea Industry Energy Usage Database, sets out in surra~lryform the Target 2 energy conservation potential for those KTDA factories which were audited. As the Target 2 recomnendations are notably factory specific, it is not practical to develop to a close estirnate at this stage for non-audited factories. Haever, it may reasonably be assumed that on balance the results obtained in the 19 factories audited, representing virtually half (46% of ncaninal production capacity) of the KTRA factories, are likely to represent the typical results achievable for the remainder. Accordingly, for aggregate estimating purposes, the totals have simply been pro-rated by the ratio 39:19. As noted above the fuel prices used in these evaluations were as reported in 1985 at the time of the audit. Hmever, the results, particularly for Target 2, are sensitive to changes in the relative prices of fuelwood, fuel oil and electricity, and accordingly sensitivity tests on these projects were ccanpleted for a range of prices - with the results being detailed in Chapter 8. +cJc Y r s EMBU 0.29 EMBU KEXIm KEXIm 0.04 mm 0.24 mm KEXIm 0.04 KIIlMBU IcwBu 0.49 KrAMw 0.15 KIAMEU lcKmxa IcDmmm 0.25 IclRnWm 0.50 KISII KISII 0.06 KISII KISII KISII 0.24 KISII KISII KISII MEIiIJ 0.20 MERU Mmu Mmu 0.15 MLJRma'A MUWAN;A'A MURANSA' A 0.08 m A 0.28 MLWANSA' A MUWAEI;A'A NAND1 0.40 NYERI 0.10 NYERI 1.00 NYERI NYEIU 0.10 NYERI 0.10 NYEFU EEnmmmD SAVINGS Ihits Esrlmnm S A m % NYI'E: -tidl savings am hsed on Arrnex 5.1 - 1985 Deliverd Casts at Fa-. EMERT EMERT KERIQD KERIQD KERIQD K E R I m K E R I m KIAMWJ KIAMBU KLllMBU KIAMWJ KlRmuGl lzmmwGi KlRmwa KISII KISII KISII KISII KISII KISII KISII KISII MERU MERU MERU MERU MUWANSA'A MUWANSA'A MLwNx'A MUWANSA'A MLPUSfJ3A'A MURANSA' A m 1 NYERI NYERI NYERI NYERI NYERI NYERI L Z Q ~ :Y = Yes N = M * = A d i t e d FacAmries cnly NXE: FWmtial savings a m hsd cn AXEX5.1 - 1985 Delivexd Eheqy Costs at Factmy. Fbr se-sitivities nmamts in errerqy axts 8. NWardIRRofinlividual~jectsaze~m in 6. ENERGY EFFICIENCY IMPROVEMENIS 6.1 Tarqet 1 Settinq The thermxtynamics of tea processing and drying indicates that a minimum energy input of soane 5 GJ/tMT is mqurd simply to evaporate the misture in the leaf, plus around 2 GJ/W for electrical energy - required mainly for the withering fans, but also for the conveying and processing systems and general electrical services and lighting loads. Clearly, it is not possible to achieve 100% efficiency in using the energy in the primry fuel (fueloil or fuel&) to dry tea. Haever, wrld wide experience and the continued striving tmards energy efficiency have established achievable targets which take into account reasonable allowances for the inevitable thenmdymmic losses inherent in any energy conversion process. It is not suggested that Kenya should autoa~tically adopt energy consumption standards and targets obtained in other tea making countries. Clitmtic differences such as haurs of sunshine, average humidity, rainfall and elevation have a mked effect on both the them1 and electrical (withering)loads of any tea factory - with even the withering and drying daMnds of the factories east of Kenya's Rift Valley expcted to be rather higher than those to the west. The approach was therefore to draw on overseas results but to set targets appropriate to Kenya and to each individual factory, based upon experience gained in the Kenyan energy audit progrm. Following analysis of the results of each energy audit an evaluation was made of the appropriate Target 1 setting for each factory and its particular fuel and plant configuration. Understandably, not all Target 1 settings were the m. SQW factories inherently had less themlly efficient plant than others and hence could not be exptxted to met as damnding a target as a new factory with modern high efficiency plant, although they often did. Engineering and statistical analyses, hocll~ver,enabled a band of taryets to be defined and which are believed to be achievable for the various plant configurations encountered. FIGURE 6.1 : KTOA ENERGY USAGE AND INFENSITIES 1985 ANNUAL PRODUCTION - TONNES OF MADE TEA (FY la851 FACTORY I D E N T I F I C A T I O N 1 1 THETA 2 1 SANCANY I 2 RUKURIR~ 1 2 KANGAITA 22 TOJIBE 3 KAPKOROS 1 3 K I M U N Y E 23 CITHONCO 4 KAPSET 1 4 THUMAlTA 2 4 K l E G O l 5 L I T E i N I5 KEBlRlCO 25 KINORO STEAM CYCLE 6 MOCOCOSEiK 1 6 KlAMOKAMA 26 CATUNGURU A I R HEATER CYCLE 7 TECAT 1 7 NYP.MACHE 2 7 C I T H A H B O 8 KAHBhA 10 NYANKOBA 28 lKUtlBl 9 KACHE 1 9 NYANSIONCO 29 KANYENYAlNl 1 0 HATAARA 20 OcEneo 3 0 MAKOtlBOKl KTDA ENERGY USAGE AND INTENSITIES 1985 FIGURE 6.1 FIGURE 6.2 : KIlX TAW;EI' ENERX INIENSITIES ANNUAL PRODUCTIDN - TDNNES DF MADE TEA FACTORY l D E N T l F I C A T l O N 1 HUNCANIA 1 1THETA 21 ShNChNYl 31 NJUNU 2 RUKURlRl I2 KhNCAITA 2 2 TOHBE 3 2 CHEBUT 3 KAPKOROS 13 KlHUNYE 2 3 ClTHONCO 33 CHlNCA 4 KAPSET 14 THUUAlTA 24 KIECOI 3 4 CATHUTHI 5 LITEIN IS KEBlRlCO 25 KlNORO 35 ClTUCl STEAM CYCLE 6 HOCOCOSElK 16 KIAHOKhHA 26 CATUNCURU 36 IHENTI AIR HEATER CYCLE 7 TECAT 17 NYAUACHE 27 CITHhHBO 37 IRIAINI 0 KhPBAA 18 NYhNKOBA 2 8 IKUHBI 38 NOIHA 9 KACUE 19 NYANSlONCO 29 KANYENYAIN 39 RACATl 10 HAThARA 20 OCEHBO 30 HAKOUBOKI KTDA TARGET ENERGY INTENSITIES FIGURE 6.2 Figure 6.1 shows the range of energy intensities (GJ/tKF)achieved by all of the K ! factories in FY1985. The first striking factor is the wide scatter of results be- factories, far beyond that which could reasonably be expcted from the relatively m l l individual differences in factory design. Figure 6.2 illustrates the best estdtes of Target 1 settings for all of the factories audited, and the inferred Target 1 settings for the non-audited factories based on the canparability of plant, equipmt and fuel type. Figure 6.2 indicates that typical Target 1 energy cons~tionsfor a KTDA factory should lie in the region of 15 - 17 GJ/tKC (gigajoules per tonne of made tea). Figures of 14 GJ/tM!T, and even 13 GJ/tMT, have been and can be achieved. But the objective of this study was to set realistic targets which could reasonably be achieved, rather than targets which might be beyond the financial and technical capability of KTDA Factory Officers in the early years. If the Target 1 energy intensity points shown on Figure 6.2 for each factory are taken as achievable, the difference between Figures 6.1 and 6.2 indicates the quite substantial opportunities for energy conservation which exist in the majority of KTIlA factories, both audited and non-audited. The preceding chapter sumnarises that potential. Identification of the Target 1 savings is only the first step in their actual achievement. In each Ehergy Audit Report technical recmmendations have been lMde tcmads that achievement. These could readily be extended to the non-audited factories,given similarity of plant configurations and fuel supply. The achi-t of Target 1 in all factories muld require a very substantial ~~nagemmtprogramne which would involve considerable and dedicated technical and financial support from the KTDA Head Office. Not all factories have available the resources, instnmuzmtation, technological knowledge, or financial ability to carry out the mrk unaided. The ~~nagcmmtapproach to the achievement of Target 1 savings is addressed in Chapter 9 - Action Plan. Taryet 2 (IAng tern) energy savings are those achievable with conservation and fuel substitution rrreasures which could be taken with appropriate planning and engineering input and the expectation of capital investrent in new or i m p h plant or a mre econcanic energy source. The significant areas for Target 2 invesmts found to be in substitution f m fuel oil to fuel&, i m p h fuel& preparation and canbustion techniques, and in satle cases the d i n e d generation of electricity with process heat, usually known as cogeneration. The individual mergy Audit Reports show that Target 2 energy intensity settings =re typically much the same as Target 1. Howzver, achievement of Target 2 wuld yield further substantial cost savings, as surmrarised in the precdhg chapter. Each of the Taryet 2 pmposals is discussed in the individual mergy Audit Reports, and a brief discussion on each project category is set out below. 6.3 Witherinq and Dryinq 6.3.1 Basic Enerqy Relationships The withering and drying processes are the min consumers of energy, both theml and electric pier. Often there is a relationship betseen the t m when, for exmple, withering t h s can be reducd to save expensive electricity if a small armunt of relatively cheap theml energy is used. The balance betmen inc-tal savings and costs call for careful mgement. Pdequate instrumntation and praper interpretationof process energy parameters can help to avoid excessive losses in the processes. During the audits, several dryers were found to be operating with too high an air flow which caused both l m r theml efficiency and additional electricity usage. m a costs for both fuel and electricity ere therefore incurred. A typical energy intensity pattern (GJ/t)for a 1200 tomes of lMde tea per year factory was found to be : Process Them1 Electricity mtal GJ/t GJ/t GJ/t Withering 1.98 0.62 2.60 Green Isaf Processing Nil 0.45 0.45 -9 17.85 0.82 18.67 ----- ---- ----- 'lmBLs 19.83 1.89 21.72 GJ/W ----- ---- ----- Note: 20 GJ/tonne MT for the theml load is equivalent to 496 litres of fuel oil per 1000 kgMl' for an oil fired factory, or 1330 kg of md of 30% mcbw per 1000 kgMT for a md fired factory. It is seen that withering and drying account for 98% of the energy usage. 6.3.2 Witherinq Clhtic conditions at each factory dictated whether th-1 energy was needed to supplanent the natural drying action of ambient air. However, electric pomr for the withering air fans was continuous during the withering process. The options for reducing the energy costs for withering wauld include: rtleasurwnent of kWh to withering house and daily logging against green leaf throughput to check consmption index (kWh or GJ per tonne of green leaf ; minimisation of the withering period by closer control using an electmnic hyynretric recorder with inlet/outlet sampling switches and ports at each trough; further minimisation of the withering period, and hence fan electrical consmption,by the application of low grade heat to the withering air flow; investigation of electrical energy costs incurred with non-symnetrical fan impellers used on reversing duty with replacemnt if necessary (aresearch project); installation of continuous burner mxiulating controls on all oil-fired air heaters and boilers (adopta KTnA standard); establishment of efficient firing conditions, especially at oil-fired air-heaters and boilers, which m y involve the rep1a-t of existing burners or their nvxLification to air-atanisation; reduction of the fouling of heat transfer surfaces by fireside deposits by the imp-t of draught conditions in conjunctionwith the abwementioned burner imp-ts; substitution where available of a 1- cost fuel such as fuelwmd or biass residues to replace fuel oil, at least on a dual-fuel basis; installation, where a steam supply is available, of a steam driven AC generator to supply the withering fans with exhaust steam being used to mmwithering air using the cogeneration system described below. The efficiency of soarrewithering houses of old design was found ,to be doubtful. Particularlywhen the primary energy source is fuel oil, these houses require special attention. Naturally any of the abave mxiifications which impact directly on the withering process must be evaluated in conjunction with those responsible for ensuring tea quality. Each Energy Audit Report includes a mss flow and a Sankey heat diagram based on the results of tests mde on dryers during the audit visits. These test analyses have s h m that the energy consmption amponents in the drying process after ferntation were: evaporation of misture f m the product (the process objective ; radiation losses f m the dryer and its associated casing and ducting; sensible heat in the exhaust air; heat in the superheated vapour exhaust which often was found to re-enter with the drier ambient inlet air supply "Maji ( Abiria"); "MajiAbiria" is important not only because it is a source of energy loss, but it raises the absolute humidity in the drying zone and requires the tea to reach a higher tgnperature in order to ccmplete the drying process. Thermal efficiencies obtained by tests at several sites varied f m 25% to 75%, due laryely to this problm. In order to conserve energy in drying, attention would be required to: avoid "cross-mixing"situations*ere the humid dryer exhaust re-enters and so degrades the inlet air ("MajiAbiria"); achieve correct tuning of the air flow conditions (this is especially important for the new fluidised bed dryers now entering service in K!IWl factories); repair h g e d dryer trays and casings to avoid leakage and by-passing of heated air; operate steam radiators on saturated steam with correctly designed and mintdined trapping and condensate return syst- ; train staff to manitor, record and interpret dryer instrumentation readings, including making prwision for new measwerents such as mde tea m a t u r e , air flow and absolute humidity at inlets and exhausts; establish efficient firing and cahstion conditions, especially at oil-fired air heaters and boilers (this may involve the replacement of existing burners or their modification to air-atmisation); substitute a a 1- cost fuel to replace fuel oil, at least on a dual-fuel basis; specify the factory's -ts for energy efficient operation &en calling tenders for new air-heaters and boilers. Recently installed oil canbustion systans for air heaters and boilers in sarrre factories had deficiencies which made it difficult for factory staff to save fuel. The Consultants cancluded that there was a need for mre rigorous specifications for tendering purposes for new equipnent wherein the tea industry's -ts for energy efficiency be stated mre clearly than had been the practice previousiy. The qhasis in existing mod fired factories,muld need to be on the use of smaller size fuelwood billets to obtain rated output. Furnace suction pressure and flue gas outlet temperature should be indicated and mnitored as a standard mqainmmt in all factories. It was observed that those factories qloying l m t i v e boilers, in general exhibited l w themml efficiencies, not only arising f m unsuitable fuel preparation and firing arrangements, but perhaps more particularly f m the lack of sufficient heat exchange capacity in the convection passes of the boilers. This is an inevitable and inherent widmess of locarmotive boilers, designed in the main for steady state operation at relatively light lmd having limited heat exchange surface adequate for the task of nonnal haulage at mderate thennal efficiency. . The generally short tern tasks of train acceleration and hill climbing, for which the full boiler maximum continuous rating (KR)is needed, is inherently inefficient but regarded as of such short duration that the extra wsight penalty in the boiler necessary to provide the full heating surface is not warranted by the short tem loss of efficiency. In a tea factory boiler MCR represents,haever, the nonnal operating condition and therefore inevitably suffers the resultant inefficiency which cannot be tolerated if attractive life cycle costing is to be achieved. Several factory visits, in both the KTRA and the private sector, showed that l m t i v e boiler exhaust temperatures were generally abnonnally high. Although not investigated in detail there is clearly rocm for the developwrit of extended heat exchange surface in locamtive boiler applications, either as air heating surface (for the preheating of canbustion air) or econamiser surface (for the pre-heating of feedwater). The whole question of impmving the efficiency of converted locaarrotive boilers operating on modfuel is of considerable significance to Kenya where fuelmod supplies are both scarce and increasing in cost. Engineering design attention to this problem is warranted. Since fuelwood at 1985 costs appeared considerably cheaper to purchase than fuel oil, additional control and instrumntation for withering and drying muld be harder to justify. Ihever, as noted elsehere the price differentials could change substantially;mreaver, the national interest requFres substantially mre efficient firing of bia~ssand this call for a progressive imp-t in fuelmod prepration, firing techniques and operator control. The tray dryers in use could be made to operate quite efficiently with constant rmintenance and good housekeeping. The optimum air flw rate seemed to be in the order of 20 tames per hour hence it a d be mrthwhile installing saw air flw guide for the factory staff, such as differential pressure recording across the radiator or p e r into the fan drive mtor, for example. The general impression that fluidised bed dryers are inherentlymre themlly efficient than tray dryers was not borne out by the 1985 audits. A satisfactory thermal efficiency can cmly be achieved with this type of dryer if very careful attention is given to tuning each stage correctly, pruviding adequate lagging, and avoiding "cross mixing". ("Maji Abiria" effects ina fluidised bed dryer are particularly severe.1 6.4 Electricity 6.4.1 Public Supplies mst of KTDA factories purchase electricity £ran Kenya m r and Lighting Ccanpany (KPLC1 primarily for industrial and process drives within the factory, and secondly for service n q k m m ~ t ssuch as lighting and small power. Electricity in Kenya is expensive, although sold well below the true econanic cost, reflecting Kenya's shortage of indigenous fuels suitable for power generation, the relatively low base load and the very larye distances over which the load m t be transmitted. As Kenya becanes progressively mre industrialised,its population will mtoelectricityrather than or oil for cooking, heating and lighting. The distribution systanwill be progressively strengthened and extended. Later generations will enjoy the benefits of the substantial capital now being invested in base load generation, both hydro and geotheml, on mjor transmission and distribution systarr; and on rural electrification. Haever, in the period cavered by this study, no reduction in the real cost of electricity to mnsumrs is foreseen, and there is likely to be pressure on energy planners in Kenya to IMximise the application of cogeneration schems where these are appropriate and econdc. Cogeneration is the term used to describe a d i n e d cycle where the energy in steam is extracted in t w stages: firstly at high pressure to generate electricity and then at a lmer pressure to deliver process heat as the steam condenses and gives up its latent heat. Plate 6-1 shows diagramtically the principles involved in a typical cogeneration schem which would be appropriate for a tea factory. The numbers in the heat flow arrows represent naninal units with the heat input in fuel being 100. KTDA tea factories are well suited for cogeneration because the withering electrical load and the steam required for tea drying are generally in the correct relationship for the typical steam canditirms. The strong incentive to find alternatives to purchased electricity for withering fans in the face of the upward trend in KETC tariff rates will make cogeneration an increasingly attractive financial option. F'urthermsre, the yet higher econcanic cost of electricity will make such projects even mre attractive in emmanic texms . A typical configurationwould be a smll steam engine or back-pressure turbine taking steam at 690Wa (6.7bar) dry saturated,driving an AC generator of say lOOkW rating, and supplying electricity to the withering house at an energy cost of around KSh 0.4/kWh (oil-fired boiler . Even after allowance for new equiprrent costs this capares favourablywith the present Krm7. energy charge of about KSh 0.7/kWh. At &-fired factories, the energy cost muld be in the order of KSh 0.15/kWh. Careful operation and control should also provide the opportunity for a further annual lMxirmrm d m d saving in the order of KSh 40,000. The exhaust steam,which m l d be in the order of 3 t/h, at lOOkPa (1bar), muld be supplied to withering and dryer radiators, thus achieving a high overall energy efficiency. Steam engine and/or back pressure turbine operation and mintenance is a factor but it is =ll within the technological capabilities of the Kenyan people. It is understood that the original KlIA factory at Chinga used steam engine generation of electric m r . Also Kenya sugar factories use cogeneration extensively. Perhaps the Mumias sugar factory is one of the best examples of the national significance of this option. As is seen f m Plate 6-1, it is not envisaged at this stage that a tea factory cogeneration scheme muld operate in parallel with the KPLC grid, and certainly no electricity m l d be exported. Hawa~erthe cogeneration scheme could assist in continuing factory operations during any supply failures without use of a mre costly diesel pak~red standby set. Electricity generation for self use by the NDA muld represent a saving to the nation. In effect KTDA generating capacity, costing incmtally around 4 000 KSh/kW, could displace or defer the need for KPLC to pruvide equivalent capacity f m its own resources; capacity which typically costs in the region of KSh 25 000/kW installed. With the d m d of a typical KTDA factory in the region of 200 to 300kW, same MKSh 5.0 to MKSh ,7.5of public funds have to be incurred to pruvide for the electricity supply systen of any one factory. If all or a proportion of these funds could be released at considerably l m r investment costs there muld be a clear financial attraction to KTDA and an econcanic attraction to the nation. ??urthenmre, the Consultants =re led to understand that the econcanic cost of electricity=ll ex& 1985 KPT? tariffs. Accordingly, cogeneration in appropriate locations forms put of the overall reammendations put fad by the Consultants as warranting further study to full feasibility level. PLATE 6-1 CO-GENERATION LAYOUT AND HEAT F7lX D m 12 CYCLONIC COMBUSTOR (FUEL HOOD1 DUAL FUEL FIRING EMERGENCY D l ESEL J GENERATOR KPLC SUPPLY SUPPLY OIL BURNER \' l r 4 1 9 SHlTCHBOhRO r - - - 7 STEAM ENGiNE IOR TURBINE1 J 3THER WITHERING FEED FACTORY HOUSE FANS PUMP LOADS WITHERING HOUSE CONDENSATE RAOl hTORS FSDM FACTORY I BO! LER LOSSES 20 T/G EFFECTIVE 100 80 70 HEAT TO PROCESS CONDENSATE 15 C O - G E N E R A T I O N P L A N T L A Y O U T A N D H E A T F L O W D I A G R A M F L A T E 6-1 6.5 Green Leaf Collection 6.5.1 Sources of Information Of the 39 factory questionnaires received, 29 gave details of leaf collection vehicles and 25 gave sms degree of detail of the road systems serving their factories. Sources of information supplied by ==re :- 1983/84 and 1984/85 Annual Reports. Green Leaf Collections, 1984/85 (listingpercentage of losses by leaf base). Tea Roads - Draft Proposals for Rehabilitation (1985). Information on road mintenance was obtained fnan the Ministry of Transport and Caamolnications. 6.5.2 Grok~rs'Deliveries Each tea factory collects green leaf f m up to 30 buying centres (leaf bases), the gmwsrs delivering their leaf to the buying centres in hessian bags. 'Teais generally collected fnan the buying centres on five days in each week. The a m m t of leaf presented by gmmrs can vary widely f m day to day, as a result of the graers' personal preferences, though this variation does not appear to cause undue difficulties in the factory operations. Receivals of leaf during the mnths of July and August are always significantly below the average mnthly average receival rate. In any other mnth, receivals can vary up to 50 percent above the mthly average. High receival rates (the "flush") frequently coincide with periods of high rainfall and, thus, periods of mrst road condition. The quality of finished tea is significantly dependent upon the time lapse be- plucking and mmrmcenent of processing in the factory and downgrading or even total loss of leaf can occur if withering camences in the hessian bags. Each leaf base is connect& to its buying centres by a road system divided into 5 to 8 routes, the number of routes depending upon the layout of the road systm and the nLrmber of trucks available. The total length of route serving each leaf base is of the order of 60 to 150 km, with the exception of the special case of the Chebut factory which takes leaf f m as far afield as Kitale, a road distance of sane 120 km f m the factory. The total length of road in Kenya used by tea collection vehicles is in excess of 4,000 km, the tea vehicles contributing the nnjor part of traffic carried by mst of that road length. Only 425 km of road is classified as Special Purpose (Tea) Road constructed for the Ministry of Agriculture. 6.5.3 Collection Vehicles Collection of leaf f m buying centres is generally by means of Bedford J6-70 trucks fitted with f r m s which pennit carriage of 2.4 t of leaf. These trucks are be- 5 and 10 years old, diesel pwered, and ell mintained. Most factories are served by betwen 5 and 8 of these trucks, the total KJDA fleet in 1983/84 being 272 trucks. This muld appear to be the minimum number of trucks with which the system could operate with reasonable efficiency, given the disruptions caused by the occurrence of bad rmd conditions concux-rently with high leaf receival rates. The distance covered by each truck can range f m 8,000 to 30,000 km annually, 16,000 km being the average figure. KTDA is currently introducing SAME 4WD Centurion 75 tractors to the factories. These are being supplied with trailers with the intention of using them as leaf collection vehicles, though it appears that the tractors are frequently used only for debogging trucks. The factory questionnaires indicated that 24 tractors *re in operation at the end of 1985, being located at 14 factories, and that mst of the tractors had had only very limited utilisation. This could indicate that the tractor/trailerunits had not been used, as intended, for collection of leaf f m areas served by exceptionally bad roads, being kept in reserve for debogging of trucks. %%ever, the tractors were only being introduced during 1985, so the apparently low utilisation of tractors of s m factories might merely be the reporting of a part year of operation. There is no clear correlation between the nmbers of tractors at particular leaf bases and the loss rates suffered by them. The Consultants *re unable to form definite conclusions with regard to vehicle operating costs f m the infomtion contained in the factory questionnaires, though there is no indication that they are exceptionally high. 6.5.4 Condition of Roads All respondents to the factory questionnaire reported unfamurably on the condition of roads serving their factories. Fraan their own observations, the Consultants share the view that the rmds are generally in poor condition and receive totally inadequate mintenance. It is only the high levels of skill and dedication on the part of the drivers which allows the systm to operate without higher losses of green leaf and vehicle costs hut, if the roads are allowed to continue to deteriorate, even those qualities will be insufficient to maintain the high level of efficiency which the KTaA has achieved. The cadition of individual sections of road vary throughout their length,mainly in relation to the effectiveness of drainage in various locations. The proportions of total lengths of road falling into various classifications reported by the respondents to the questionnaires were as follows :- Bad (Roadimpassable to trucks in wst weather without towing by tractor) 33% Poor (Roadpassable to trucks only with difficultyand delays) 30% Fair (Roadpassable to trucks at reduced speed) 25% Good 12% Only nine respondents to questionnaires stated that new bridges or major culverts wsre required &I their areas. The KTDA Draft Proposals for Tea Road Rehabilitation stated that 3,500 km of road *re in need of rehabilitationand that 11 smll bridges and 15 culverts *re required to bring the tea roads to reasonable condition. The KtDA 1983/84 Report indicated that the proportions of collected crop lost in 1982/83 and 1983/84 were 0.38% and 0.28% respectively. The KTDA Green Leaf Collection figures for 1984/85 showed that the average loss in that year had increased to 0.52%. The distribution of losses between leaf bases was as £011- :- Range of Lasses ( % ) Number of Leaf Bases Zero - 0.10 0.10 - 0.20 0.20 - 0.30 0.30 - 0.40 0.40 - 0.50 0.50 - 0.60 0.60 - 0.70 0.70 - 0.80 0.80 - 0.90 0.90 - 1-00 1.00 - 1.20 1.20 - 1.30 1.30 - 1.40 Betseen 2.00 and 3.00% It is seen that the distribution is skew&, with 7 of the 42 leaf bases accounting for 39%of the losses. KlTN advised that the Githongo factory in Igembe Division was forced to close for 3 wdcs in 1983/84 as a result of mads being impassable (Page 15 of the KTDAReport for 1983/84). The loss rate reported for that factory was not exceptionally high, so presurrrably gmwers did not present mrketable tea to the buying centres during the period of factory closure. This d d constitute a loss to the grok~lrs and to Kenya, if not to the KlTN. The losses suffered by leaf bases with the shorter route lengths are sanewhat less than those applying to the leaf bases with more scattered buying centres, as d d be expected given the shorter transport tirne. Referring to the geographic distribution of losses as set out in the K m report:- Kitale and Kakamga leaf bases suffer high losses, as expected in relation to the distance to the Chebut factory. Leaf bases in Muranga'a District appear to suffer losses twice the average. Leaf bases in Kirinyaga District suffer losses at only half the average. Leaf bases in other districts suffer losses close to average. Based on the FY1985 KTDA collection of 283,203t of green leaf, at an average value of KSh 5.75/kg, a green leaf loss rate of 0.52% represents a value of lost green leaf of KSh 8.5 million per annum, which is a direct loss to the growers. The equivalent value of lost mde tea is appmximtely KSh 11.5 million. W l e not all of that loss can be attributed to the poor condition of mads, there are other significant unquantified costs arising f m mad conditions, including :- Dawngrading of quality of finished leaf as a result of withering coarmencing in bagged tea during delays. Reduced life, increased mintenance costs and increased fuel consmption of vehicles. Extended factory working haurs necessitated by late arrivals of green leaf. -st farm production of other craps caused by delays to fanmrs at leaf collection centres. Clearly, the total cost of poor tea roads'toKenya and to m e of the nation's mst productive industries is significant and, allowing that the cost of application of rr;urrum (gravel) to roads might be of the order of KSh 100,000 to KSh 200,000 per lun, hence even a d e s t increase in expenditure on tea road maintenance muld represent a mrthwhile investm?nt. Impmvaents in road serviceability could be realised by raising mad levels and installing culverts or causways and re-gravelling over a large number of relatively -11 lengths of mad. It is strongly -ed that annual expenditure on tea mad upgrading and miintenance be increased and that the Ministry of Agriculture be rqumdto make funds available formintenance of the Special Purpose (Tea)Roads, again on an annual basis in accordance with a clearly established rehabilitation progrm. 6.6 Made Tea Packaqinq,Transport and Marketinq 6.6.1 General All respondents to the factory questionnaires gave details of tea packaging and despatch, m y with considered c-ts and suggestions. 32 respondents indimted a belief that packing in tea chests is an outdated practice, is already too costly, and that costs will continue to increase with increasing scarcity of Kenyan timber and increasing costs of imported ccmpnents of chests. Indeed it is understood that the continuing buyer preference for tea chests may stan mre f m the blenders' investxm-ks in autamtic handling equiprent than f m any perceived quality advantage. Most respondents indicated a preference for bags for despatch of tea fr a ntheir factories. Scm? respondents mntioned the possibility of packing tea in containers at the factories, though they appeared to recognise the difficulties inherent in this approach, as discussed in Section 6.6.4. Tea for export is transported f m all factories to M s a by road at an average cost of KSh 0.45/kg. Saaoe respondents indicated a preference for transporting tea by rail fm the nearest railhead, but recognised the difficulties of the limited capacity of the Kenya Railways and the disadvantage of the longer transport time which muld probably be involved. 6.6.2 Packaqinq and Transport Locally sold teas are packed and transported to Kericho in transportable canvas bags. All tea for export is packed in chests which generally measure 4Ox50x6Ocm, weigh 5.6 kg and have a capacity of 50 kg. They are supplied in pieces and assanbled in the factory. In Kenya they currently cost KSh 55 - KSh 60. which represents a significant figure of KSh l.O/kg of made tea and due to the significant timber content cost is certain to increase with time. m e tare weight of chests is 10 percent of the weight of tea transported and thus is significant in transport costs. Chests are loaded at the factory by hand on to trucks and transported to Mcanbasa. The cost of road transportation of tea to Mcmbasa appears to be quite reasonable, as might be w e d given the ccmpetitive nature of Kenya's trucking industry. In view of the present difficulties experienced by Kenya Railways in making l m t i v e s available and achieving reasonable turnamund times of wagons and the hprtance of tea exports to Kenya, it is not considered that any benefit a d accrue to Kenya at the present time through attmpting to save fuel by attmpting to transport tea to Mmbasa by rail. Research Report 41 prepared by the Transport and Road Research Laboratory of the U.K. (1983) concluded for mya that "fuel savings resulting frwn transferring goods frwn road to rail by norm1 rrrarket forces wuld be dest, the realistic maximum being a saving of only one or t w o percent of national consumption of diesel oil."Hcwaer, in the long tern, the upgrading of the railways is essential to the whole transport econ~ny of Kenya at which tim the transport of made tea to Mmbasa by rail should be examined. 6.6.3 Storaqe at MQnbasa At Mmbasa the chests are stored in g o d m awaiting sale and/or approval of samples by the purchasers. S a w g o d m are owned by KtDA and same are rented. The average quantity in store at Mcsnbasa over the year might be 50,000 chests (2500t) which represents 5% of annual pduction of abut 50,000 t. The quantity in store, haever, can be as high as 200,000 chests (10,000t). These quantities of stored tea do include sold tea awaiting shipping. 6.6.4 Samplinq and Marketinq KIDA tea is sold as follows :- 10% - 15% Ixal Sales (packedat Kericho). 30% - 40% Bcprts, sold ex factory warehouse. 50% - 55% Bcprts, auctioned at Mcsnbasa gcdm. All export teas are sold "Subjectto Approval of Sample". Tea is packed at the factories in lots related to Invoice Nm&ers, the usual quantity related to an invoice being 1 tome (20chests) or 2 tonnes (40chests). Very often tea of a particular grade is sold in lots much greater than 2 tonnes, h t the 1 tonne or 2 tome lots are seen as being the laryest at which the samples can be considered by KTDA to be truly representative of a lot of tea mufactwed over a certain period of time. Lots of tea are frequently rejected by buyers after tasting of the samples and, if the invoice numbers w=re related to lots of, say, 20 tomes, then the potential losses to KTDA through downgrading of teas wuld be increased. Samples of 5009 are taken in the factory at the time of packing of the tea, are given the invoice nurmber of the lot of tea, and are made available to the prospective buyers for tasting. The minimum sale quantity is usually 1 tonne. After sale and approval of samples by the prchaser the lots of tea, represented by particular invoice numbers, are packed in shipping containers and despatched. 40 ft (121111containers are frequently sent to the U.S.A., but 20 ft (6m) containers are norm1 for other destinations. The lots of tea in a container might be all of one grade or of several grades, depending on the purchaser's -ts. The chests are palletised, 20 chests to a pallet, and loaded into the containers with fork lift trucks. There appears to be no pressure f m buyers of export teas to change f m &en tea chests. It is understood that there have been trials in Sri Lanka of bags and cardboard cartons, with varying results with regard to damage and resulting losses. HacllRver, given firstly that Kenya is an expanding exporter of quality teas, and secondly that the mjority of factory mmagers responding to the questionnaires have indicated a strong preference for packaging in bags, it is -ed that the selection of a robust, cheap, watertight and non-tainting bag mterial be undertaken and that trial conversions to bag packaging for export, already being undertaken by s a factories, be rigorously evaluated by KTDA. KTDA has considered loading the tea grades sold in high volumes into the shipping containers at the factories. It is not considered that this systanwould prove to be advantageous,as :- At present, teas loaded into a container for one purchaser might be drawn f m several factories. Establishmnt of centralised container filling depots would involve additional capital and operating costs. KlDA has tried filling the containers at Embakasi but, to be an effective option, a warehouse m l d be required there. Under the systen of selling "subjectto A p p m l of Sample",a purchaser might reject only one Invoice Number lot and it would then be necessary to unpack containers at Mcsnbasa to remve rejected lots. Tea is transported to Mmbasa by contract trucking ccmpanies. The need to bring empty shipping containers to the growing areas would eliminate the possibility of profitable back loading and thus could cause an increase in transport charges. Adoption of returnable 'chests' of 1 tome capacity is also considered to be unlikely to be advantageous, as each factory would then require a forklift truck or crane. &xemer a very large number of these large chests d d be required, as their turnaround time muld be m y nun*. 7. PUlXKFIAI; FOR SuBSTITUl'ION OF OIL BY IND1GEEK)USENERGY I3ESOLRCES 7.1 Environment and Incentives The result of the Energy Survey Questionnaires indicated that in FY 1985 26.5 ML of fuel oil at a cost to KIDA at the pint of delivery of about MKSh 77 was consumed. Fuel oil was then mre costly than fuel& and, at 1985 prices on an equivalent delivered to factory energy basis, indigenous fuelmod had a financial price advantage of around 3 to 1 in respect of fuel oil. Thus there was an incentive in 1985 to substitute fuel- for fuel oil. These relativities do, however, alter and will continue to change f m time to time, as is we11 widence by the dramatic decline in oil prices in early 1986. Before proceeding further, it is useful to refer the reader to background mterial on the supplies and prices of fuels and the availability of bimss residues, and for this purpose mterial has been drawn f m the ccanpanion report on the Kenya Coal Conversion Action Plan which deals prhgrily with energy conservation in industry. Specific reference should be'mde to: Apper&x C - Bimss as an Energy Source for the Tka I*W, A p p d i x D - Supplies and Prices of Fuels, and Appndix E - Indigenous and Byproduct Fuels. Appendices D and E have been taken directly f m the aforementioned ccmpanion report. 7.2 Bimss (Fuelmod)as an Enerqy Saurce Based upn a review both in the field and of the available literature, the Consultants are of the opinion that, with sane exceptions, and at market price relativities existing at the tire of the energy audits, fuelwood supplies could be mde econcmically available to the mjority of KTDA factories currently operating on fuel oil. The central part of Kenya is richly endowed with a climte and landform which is suitable for the efficient production of fuelmod which, ca-bined with efficient canbustion techniques, need not place an undue M e n u p the nation's land resources other than in areas of very heavy population density and prior claims on land arising f m housing, subsistence fanning and grazing. Indeed, the total KI'DA requirertlent for fuelmod, should all msdning factories be converted,muld be less than 100,000 t/a and could be mde available f m no mre than 4,500 hectares of land. This amnmts to less than one half of one percent (0.4%)of the total demand for fuelmod in Kenya, which is dminated by danestic demand. A report on the options available for the supply of KTDA's fuelmod needs was prepared by the Consultant team's Forester and is included as m d i x C - Bimss as an Energy Source for the 'I& ..In Industry. brief, the conclusion reached is that, with appropriate forest resource management and re-afforestation policies which would enable fuelmod resources to be allocated to KTDA, a number of factories outside the sparsely forested high population density areas could be converted to operate on fuel&. Standby operation on fuel oil d d be retained as back-up in the event of any problems in fuelwood supply or cclmbustion plant, or of changing supply econcanics. It is not the purpose of this study to investigate means by which the daroestic fuel& or charcoal d m d could be controlled with a rapidly growing population. But the short tenn options would appear to be imp- efficiency in charcoal making (a project which is already in hand, follmd by progressively i m p d efficiency in user equipmnt, mainly cooking stoves) and progressive urban electrification so that in time the inner city and suburban demand is catered for by plentiful indigenous electricity rather than scarce indigenous fuelmod. Pdditionally kerosene is expected to play an increasing role as fuelmod becaroes scarce, and hence mre costly,while oil products find new and 1-r price levels in the market place. At the sam tirne as taking policy steps to reduce dependence on indigenous fuel&, and so release it for mre attractive uses such as those opportunities offered by KTllA which include cogeneration, steps should also be taken to increase or at the very least maintain existing supplies. Frm the infomtion presented in Appendix C, and f m other authorities, there appears to be insufficient roarmitment or planning at present towards orderly re-afforestation and the setting aside of fuel& plantations specifically for the purpose of providing the needs of industry and the daroestic sector. In these circumstances, market forces will play their part and fuel& prices must rise. This will in turn create the market climte which will encourage increased fuel& production. One of Kenya's mst valuable energy assets is her renewable energy resource in the form of f u e l d and her quite extensive bimss residues. Fuel& and bimss residues have m y attractions, we11 recognised throughout the history of nearly all developing countries. Fuelwood is visually attractive and environmntally sound. It is relatively easy to harvest and process for further use, albeit quite labour intensive. With proper fuel preparation and canbustion practices, discussed later, both fuel& and bimss residues are particularly attractive energy sources. They carry their own supply of oqyen and have m k a b l y little ash or any other of the undesirable pollutants characteristic of fuel oil or coal. The efficient production of fuelmod calls for growing and harvesting techniques which are quite different f m those necessary for a construction timber and telegraph poles where the forest or plantation timbers are allowed to g r m to maturity. It is suggested the f u e l d be g r u m in such a way that, with fast growing species, the timber size at the time of harvesting would be no mre than say the thickness of an am, with the mod still relatively soft. If this fuelmod was harvested using the coppicing technique, regrawth d d cmmnce almst imnediately. The timber stands then harvested muld be typically straight and easy to handle and prepare. The tophamer, as now, would be left on the forest floor either as natural fertiliser or as potential fuel- for infoml collection by villagers. The resultant fuel- would be taken by truck to the factories and stacked in cut lengths for drying as is present practice. Fuelmod is certainlymre expensive to transport per energy unit than fuel oil, having only about one third the energy value per unit of might as cQnpared to oil (about 15 GJ/t for mcd as against 42 GJ/t for oil) and a l m r bulk density. This is significantwhere transport distances are great. For the tea gracing districts fuel oil already has to carry the burden of transportationover 400 km or mre f m the Mmbasa refinery, ignoring the transportation task to Mcsnbasa, while fuel- m y be available at distances up to say only 10 km f m plantation to factory. If the fuel- situation is to be i m p d , the will and ccannitment of Govenmrant, through the Forest Department, would have to be considerably enhanced. This will certainly represent a substantial step in developing Gavenurent policy. It will involve the acquisition and retention of land for fuel- purposes; the training and developnent of foresters capable of managing fuelmod plantations as distinct £ran native forests; the develowt of harvesting techniques based on coppicing of relatively imMture timber better suited to ccanbustion, rather than of heavy stands of mture timber mre suited to construction purposes; the developnent of transportation, storage, handling and marketing infrastructure for the efficient mmmsnt of fuel- f m point of grwwth to point of use; and the developuent of skills in efficient 11~3tha.kof fuel preparation and canbustion. These issues are covered in mre detail in Appendix C. The problen of creating a mre efficient production and usage cycle for fuel- has also been addressed in the parallel Peri-Urban Fuelmod Study in respct of supplies to the suburban and dmstic sector of Nairobi and the larger cities. It is expected that s m of the recarendations of that report, and its proposals for institutional and infrastructure establishmnt, will be no less appropriate to the provision of long tenn secwe fuelmod resources for the use of the Kenyan tea industry. 7.3 Bimss Residues Fgpendix E - Indigenous and Byproduct Fuels, prepared as part of the canpanion study, the Kenyan -1 Conversion Action Plan, sets out the results of a literature and field survey of the indigenous bimss residue potential of Kenya. As is seen, the residues are quite extensive in occurrence but are sanswhat localised. Therefore, they cannot be considered as a universal solution to the biamss shortage problem. Rather, they should be looked at on a specific opportunity basis which, for KTDA, d d mean an individual factory or district basis. Hem canbustion and fuel prepration equipnent is available to prwide a dual-fuel capability at tea factorieswith the opportunity to take advantage of lover cost biamss residues even on an intennittentbasis. Cne of the more important and widespread of the biamss residues is sawdust frcm saw milling operations. Saw milling should raMin a stable industry and sawdust itself is a quite excellent fuel. It is currently used either as a l w grade fertiliser or as a relatively cheap fuel for damestic purposes. A typical tea factory of 1.8M kc$W./a capacity and say a taryet energy intensity of 15 GJ/t muld require one tome of sawdust per tome of mde tea, that is 1,800 tonnes of sawdust in a year. This muld mean quite a sinp?le handling task for one of the many mllhaulage contractors. m d i x E indicates that sane 42,000 tonnes of sawdust are estimated to be available, of which reasonable quantities occur in the tea growing Districts of Kericho (3,600t/a), Nyeri (4,500t/a) and Meru (1,300t/a). The delivered cost is estimted at around KSh 27/GJ, which muld be ccsnpetitive with fuel oil. Fdditionally, sane 6,000 t/a of rice husks m y be available froan the M e a mill,. although the delivered cost m y be slightly higher and the canbustion problems sasoewhat more difficult. It is beyond the scope of this study to do more than identify the opportunity that exists; suffice to say that the investigations of the Consultants have indicated that the opportunities are real. Typically, a tea factory in say the Kericho or Nyeri Districtsmight find its needs capable of being totally supplied by the sawdust make of say two or three sawmills. It is envisaged that long term or renewable contracts could be let with the sawmills at a price which m l d be both attractive-to the mill and to the factory, and that a further cantract might be let to a local haulage contractor to mintain supplies of sawdust to the tea factory throughout the year. The organisation of this type of contract is el1 within the capacity of the KTIZA, given that the cmhstion equivt is in place. The sawdust transport task d d be but a fraction of the considerably more canplex task of collecting green leaf. Indeed, the existing oryanisational arrangerents of the green leaf collection deprim=nts of KTDA could be extended to include fuelmcd collection; haever, E!lDimnagmmt considered this and rejected it. 7.4 Bica~ssCombustion present bi-ss ccanbustion practices in Kenya are not very satisfactory. The Consultants in their audit visits observed many examples of poor canbustion practices, both in the private sector and in the KTDA, and have addressed these mtters at length in the individual audit reports. Regardless of the fuel saurce, inefficient carbustion practices are an added invisible cost of considerable substance as wll as adding a needless extra demand on the limited fuel- resource. It would appear that present practice in fuel- canbustion in Kenya is virtually to dispense with any form of fuelmod preparation beyond the cutting of timber into lengths,typically about 1.2 11~3tx-e~ long but frequently less than 30an,and stacking these cut lengths so that the misture content is reduced naturally by air drying. Stacking under shelter is cmmmded since there is no benefit in using the high grade heat of cQnbustion to evaporate the as cut misture or absorbed rainfall which can be namved progressively using the low grade heat of the amsphere. Soarre f u e l d users do already provide simple forms of shelter for their wood supplies and these have been found to @t the reduction of percentage misture content by eight (mh) to around 25%. This is particularly advantageous and is recamended practice wherever fuel& or other bimss fuels are used. Here, heever, good fuel preparation would virtually appear to stop. The Collsultants observed far too m y boilers being,stoked either with randcm lengths of uncut timber or with billets of about 30 to 50an in length. Typically, this was fed to the canbustion chamber by hand and through fire doors held wide open. The resultant potential impact damage to the fumace lining and grate, the impact of considerable cold excess canbustion air, the instability and rapid cooling and reheating of the furnace, all contributed to canbustion efficiencies often below 50 percent and canbustion chambers often in poor condition. The inherent limitation on heat release rate with this type of firing also meant that the rated boiler capacity was usually not being reached and steam pressure conditiolls w e m marginal. With improved fuelmod preparation, as is discussed in P.37Pendix G - Bimss & Wood Firing Technology Review, it is believed that fuel& canbustion efficiencies could be lifted to 70 percent or even better. Before canbustion the fuel, ideally in small sizes as earlier discussed, would be reduced to fine particles using electrically driven chippers and hammx mills. While this process a d require sane additional electric p w x , the impruved catbustion and heat release so gained, particularly where associated with cogeneration and hence cheap electricity,would give considerable net benefit in terms of useful energy extraction fm the fuelmod. Furthemnre, it would pennit the use of d e m cyclonic ccmbustor techniqueswhich a m characterised by high canbustion efficiencies, stable operatian and low losses. Yet mre importantly, d e m cyclonic catbustor equipwnt can be retrofitted to existing oil fired boilers. Although this d d not be an ideal solution (theideal being a purpose mde wccd fired boiler), efficiencies in excess of 70 percent could be anticipated, pmvided ins-tation and controls provided to mnitor the essential canbustion parameters. Mditional plant would be requFred for fuelmod handling and size reduction, as -11 as the new fuel& firing equipm~t. The new plant itms required of proven design and an= in widespread use in countries enplaying &ern fuel& firing rrrethais, i.e. Sweden, Canada, and Australia. A typical retrofit of a Colmh Camercial Cchnpany air heater is illustrated in G of the audit reports. Tb s m extent, the fuel preparation cost muld be offset by the reduction in mual handling which was observed to be ccmmnplace at all mcd burning factories. Also, since the firing systan muld be more tolerant of fuel type and quality, residues such as sawdust and chips f n m the billeting saws could be used as fuel with a consequent reduction in the tonnages of prim timber transported £ran the forest in a given period. Finally, should at any t h in the future the delivered price of fuel oil per GJ fall below that of fuel&, then the existing fuel oil canbustion equip-m~t could irmvxFiately be returned to service. A few KTL)A factories have limited hydro capability. In the private sector mini-hydro 2s more cammnplace,not because of greater rainfall, but because the estates by their very size catmnd considerably larger water catchment areas and therefore have more control over the use of the hydro potential. The Consultants were advised of a number of successful mini-hydro scherres financed entirely £ran the private sector. As noted elsewhere, this has saved the nation f n m investing in that generation capacity. Mini-hydrom y be an option for s m of the KTDA factories although this has not been investigated in any depth since such investigations require mjor study. Mini-hydro is by no maam limited to the provision of electricity to the KTDA, but rather to the nation as a whole. 7.6 Solar Enerqy Solar energy, often regarded, incorrectly,as the solution to m y energy problm because of its abundance, is not thought to have any significant value to the tea industry beyond the essential first step of tea growing. Solar energy is indeed plentiful, but it is low grade heat and expensive both to collect and to store. For industrial use where capital is scarce no case can be mde. For dmstic water heating, where the alternative is electricity fnm KPLC, there is a case but the contribution to averall factory energy needs is minimal. The solar water heating industry, so very successful in Australia, is active in Kenya and, in the view of the Consultants,will be adequately driven and supported by mrket forces. Any more widespread use of solar energy in the tea industry at the present time is doubtful, although it is not unrealistic to contenplate that at s m time in the future it could provide supplawntary low grade energy to assist in the withering process. Wing one audit visit, a scharre to obtain mum air for withering by using an existing roof structure and dividing it into ducted sections was examined in depth with the Factory Officer. The fundammtal limitation revealed during these discussions was that, at the t- of the "flush",when wam air is essential, the skies merhead are cloudy and rain conditions are prevalent. Despite access to, and examination of, mrld wide references on this topic, including application to the tea industry, the Consultants believe the role of solar energy in the future in the Kenyan tea industry to be little mre than at present. 8.1 Introduction Following the meetings held in Nairobi with the World Bank and the MOERD at the end of September 1985, the terms of reference were extended to include identification and reporting upon Fundable Projects. The field mrk phase of the energy audits had indicated,by that stage of the project, that significant energy conservation and fuel substitution potential existed, much of which wuld, however, rely upon major engineering and capital inputs, i.e. the prerequisites of Target 2 Projects. Recognising that it muld be necessq to have a strategy in place to provide the appropriate engineering and capital funding of such projects, the Consultants were asked to proceed sufficiently far with prefeasibility studies to establish an approximate order of capital cost, return on capital and engineering definition. ZLl1 Target 2 Projects require sarne level of investment: sarne may conserve more energy than could be achiwed under the Target 1 programne, while others m y serve the econdc needs of the country by substituting an indigenous fuel for fuel oil without necessarily achieving any further saving in energy. Both types of Target 2 Projects, hmver, add to the profit of the company concerned, and both reduce dependence on imported fuel oil, to the net benefit of Kenya. 8.2 Methcdoloqy for Initial Financial Analyses In order to achiwe the Target 2 (T2) level of energy intensity in any factory it is necessary, as defined in Chapter 5, to make investments in one or more capital projects. Such projects m y be mutually exclusive, or independent of one another. Each of the 19 individual Energy Audit Reports includes a chapter which first defines and evaluates those T2 projects which might reasonably be considered, and then selects for short listing those which represent, at least on the information available, solutions which appear likely upon preliminary analysis to meet the investment criteria set by the World Bank. The methodology adopted for analysis of T2 projects is as follows: Conduct energy audit, analyse audit data, take account of site observations, and make reconmendations to achieve the Target 1 (TI)level of energy intensity. All T2 projects are then evaluated on the basis that Target 1 has already been achieved. Define individual projects and carry out only sufficient preliminary engineering and thermodynamics to establish leading project parameters. Prepare preliminary and indicative capital cost estimates, having in mind maximising local Kenyan manufacture and the use of Kenyan resources, but rraking due allowance for import duty and foreign exchange premiums on overseas supply and for engineering and contingencies. Prepare operating cost savings estimates, based on 1985 delivered energy costs (Annex 5.1) and quantities for the energy sources and conversion processes relwant to the project. Make due allowance in the cost streams for depreciation and investment benefits, having in mind ruling rates of taxation and other allowances and for any additional staff which m y be required. Having estimated project cash flows aver 10 years, carry out discounted cash flow (DCF) analysis using a 15% after tax discount factor. This analysis takes account of capital investment incentives including the taxation benefit of the depreciation allowance (which in many cases has a significant influence on project financial viability. The analysis develops, for each project, the net present value (NEVI. If the NW is positive, then the project IRR meets or exceeds the hurdle criterion for a rate of return of 15% after tax set by the World Bank for short listing. The analysis also determines the simple payhck period (in years) and the internal rate of return (IRR) after tax, which are generally accepted methods for financial evaluation of investment projects in the private sector. Each of these parameters is listed in the sumnary, Table 8.1. Notwithstanding the relative rigour of the foregoing methodology, project waluation is strictly to prefeasibility level only based on energy costs observed during the 1985 field audits. Should it be decided to proceed with one or more of the short listed projects, then mre rigorous engineering, financial and econcanic waluation to full feasibility 1-1, complete with sensitivity analysis, is essential before any cmmitment of project funds. Cost estimates and DCF mrksheets are retained on the Consultants' files. 8.3 Projects Identified Each of the individual Energy Audit Reports includes a mre detailed recamendation on Fundable Projects based on initial financial analysis. Technical proposals including cost estimates, cash flows and rates of return have been prepared as described in the preceding section. Table 8.1 sets out a surm\aryof all recomnended fundable projects which would be recmnded at energy prices ruling at the time of the fieldwork in 1985. The total capital cost of projects which are deemed to have satisfied the criteria established in the preceding section amounts to same MKSh 15.6 (MSUS0.9) for the 19 audited factories which, by extrapolation, could be expected to approach MKSh 32 (MSUS1.9),forall 39 factories. The average payback on the T2 investments identified is between one and tvm years. In reaching a total of 22 potential projects taken to prefeasibility level, same 65 potential projects =re examined, same of which had mutually exclusive alternatives, each of which required preliminary study. Five fuelwood conversion projects, although financially attractive, ere later advised as being inappropriate for further study due to localised shortage of suitable land for fuelwood cultivation w i t h i nan economic distance f m the factory. The 17 projects remaining for full feasibility study are set out in Table 8.1 and are those which could usefully attract investment capital in both the national interest and the factory's private interest, at least in the 19 factories audited. It is beliwed that a similar number of T2 projects could be expected in the mining 20 factories. Sorrre of the projects short listed after initial financial analysis involve substitution from imported fuel oil to indigenous fuelwood, utilising recently dweloped, but simple, high efficiency c&ustion technology. In those plants utilising both steam and electricity, it was found in many instancesworthwhile to cornnend internal cogeneration using a back pressure steam turbine or steam engine driving a generator to provide steam for process needs plus the electricity which can econdcally be generated. Particulars of the roanbustion systems and cogeneration schemes proposed are given in same detail in the individual Energy Audit Reports. Additional details on small scale (100 to 200 kW) schemes are given in Chapter 6. The use of fuelmod in Kenya, although seemingly mst attractive at 1985 delivered prices, is, however, subject to sarne important institutional and technological barriers. It has been epnphasised in every individual Energy Audit Report that any factory which hopes to adopt indigenous fuel, either as fuelwood or bimass residue, must first ensure that long term supplies are secure as to availability and price. E'wthemre any factory proceeding to a fuel- conversion should retain the capability of firing fuel oil. Not only would this provide essential security but it would also enable the factory to have sore safeguard against adverse mements in fuel prices by always retaining the substitution option. SUMMARY OF INITIAL FINANCIX ANALYSIS OF T2 PRaTECrS ........................................................................ PROJECT TITLE CAPITAL PAYBACK IRR NPV kKsh YEARS % kKSh 1. Retrofit air heater to provide dual firing 1180 2.1 28.7 638 1. Retrofit Marshall air heaters to provide oil/fuelwmd firing L/ 1180 9.2 23.4 370 LITEIN 1. Retrofit Sirocco air heaters to provide oil/fuelwood firing A/ 1. Steam engine/generator for withering 400 2.0 30.4 247 2. Heat exchanger at hot feed and drier fan inlets 200 0.9 69.4 442 3. Retrofit No.1 boiler to provide oil/fuelwmd firing L/ 950 1.3 46.4 1265 ............................... Sub-total 1550 1.2 No T2 projects - 1/ Project retained as fuel- could possibly become available £ran private tea estate surplus. _______-----___--_------------------------------------------------------ P R m TITLE CAPITAL PAYBACK IRR NPV kush YEARS % kKsh __________--______------------------------------------------------------ . Steam engine/generator for withering 460 2.0 21.1 107 . Upgrade oil burner on Maestro 100 boiler 120 0.3 NA 1076 3. Dual fuel firing of Maestro 100 boilers 1020 0.8 80.9 3079 ............................... Sub-total 1600 0.8 KIMUNYE No T2 projects 1. Steam engine/generator for withering 400 3.0 24.0 139 KIAMOKAMA 1. Retrofit Maestro 85 Boiler to provide dual fuel firing 1020 1.6 37.0 923 NYANSIONGO ' No T2 projects GITHONGO No T2 projects KINORO No T2 projects 1. Dual fuel firing of Maestro 100 boilers 1200 1.0 45.9 1613 ........................................................................ PRaJECT TITLE CAPITAL PAYBACK IRR NPV kKsh YEARS % kKSh 1. Convert three (3)CCC air heaters to oil/fuelmcd/ biomass waste firing 1. Steam engine/generator for withering 400 2.7 25.2 160 1&2. Convert three (3) CCC air heaters to oil/fuelmcd/ b i m s s waste firing No T2 projects IRIAINI 1. Convert t m (2)Marshall air heaters to oil/fuelmcd/ biomass waste firing 1192 1.6 42.6 1345 1. Convert a Yule air heater to oil/fuelwmd/biomass waste firing 1180 2.8 20.6 241 ................................ 8.4 Sensitivity Testinq It was anticipated at the outset of the progrm that the justification for any nominated projects would depend upon the level of fuel savixgs resulting from their proposed investments, and hence would be sensitive to changes in fuel prices. In order to ensure the soundness of any recamended investments it was therefore envisaged that sensitivity testing would be ccinpleted for an appropriate range of prices. This range, for both financial and econcanic prices believed appropriate for conditions ruling in 1986, and for the irranediate years ahead, is developed in Section 8.4.2 hereunder. For the T1 projects this was not necessary since they involved limited investment to produce very substantial benefits for the organisations concerned, and for Kenya as a whole - with any changes in fuel prices simply varying the magnitude of the saving which might be expected. In view of the investment requirements for the T2 projects, however, these needed to be checked to see whether or not they remained viable under varying energy prices; and the requirement for sensitivity testing to ccanplete these assessments became especially important when oil prices changed so dramatically between 1985 and 1986. Accordingly, sensitivity analysis was applied to the full range of projects identified as prcsnising in 1985 under the prices operating at that time - i.e. those projects referred to in Section 8.3 and surr~narised in Table 8.1. This clarified the viability of the various projects and at the same time provided a basis for assessing their priorities in the light of preferred price scenarios for the various fuels. 8.4.2 Price Scenarios for Fuels The price ranges appropriate to use for the sensitivity analyses are considered for each of the fuels in turn. 8.4.2.1 Residual Fuel Oil While Kenya's refinery continues to be operated as in 1985 the effect of any substitution of another fuel for oil would be to release more RFO for sale on the spot market. The economic price of RFO in these circumstances is approximtely the return £ram its sale, as represented by the FOB price at Mombasa less the relatively insignificant cost of its handling at Mmhsa, plus the saving in transporting oil to the users. Prices of fuel oil have been affected by policy changes in Kenya which have held the financial cost -11 above the market prices outside Kenya as world prices have fallen. World oil prices are unstable and will continue to have the potential to rise if producers regain control of total output and demand continues to grow, or to fall furtherwhile Middle East production costs remain we11 below current prices and Middle East production capability represents such a significant proportion of mrld supply. For the time being higher prices benefit only higher cost producers because of production shifts from the Middle East to British, US and other producers. On the other hand lower prices reduce the funds available for developent of OPEC campeting fields and thus create the conditions for higher prices benefiting OPEC in future. In this study the base economic prices have been calculated from the FOB value for exported fuel oil which averaged 25 KSh/GJ between July, 1985 and July, 1986. To this needs to be added a foreign exchange loading as well as transport costs which are also foreign exchange loaded. This in fact samewfiat undervalues fuel oil in Kenya because the grades used locally are of higher quality than those exported. After assessment of the various factors influencing future oil prices provision has been made for fuel oil at Mombasa to fall to 20 KSh/GJ and possibly to rise to 50 KSh/GJ. The approximate loadings are 20% for foreign exchange premium and a further 21KSh/GJ for the economic cost of inland transport. Economic prices of fuel oil in KSh/GJ are therefore made up as follows: Foreign FOB Base Exchanqe Transport Total High 50 10 21 81 Base 25 5 21 51 m w 20 4 21 45 Financial prices of fuel oil have been set to reflect existing policy in Kenya. During the audits the average cost of fuel oil reported by Nairobi plants was 71.5 KSh/GJ. (SeeChapter 5 Annex 5.1). Transport costs to the KTDA factories fram Mcanbasa are estimated to be 19 KSh/GJ (weighted average all factories) giving a Mcanbasa cost of 53 KSh/GJ. This is also supported by observations obtained at the audited factories. Despite substantial falls in mrld markets there ere no substantial reductions in the domestic prices of fuel oil during the first half of 1986. Since prices in 1985 were at the levels indicated by reasonably high world oil prices there is little argument to raise the high fuel oil price very much above base; while at the low end the figure suggested provides for a potential fall in response to possible falling world prices. The range for the financial prices of fuel oil in KSh/GJ is accordingly: Manbasa Transport Nairobi High 56 Base 53 Ircrw 36 8.4.2.2 Coal Financial and econcanic prices have been based upon supplies fram world markets as assessed in 1985. The pressure on oil prices is expected to hold prices down, with same variation fram low to high potentially, resulting fram different sources. The fuel substitution potential for coal in industry is affected by the preponderance of small oil fired boilers in Kenya, by the small market price differential favouring coal wer 180 CST fuel oil (in Nairobi only about 4 KSh/GJ delivered and possibly even less following the sharp down trends in world oil prices), and by the unsuitability of high ash, low volatile coal imported fram Swaziland for use in boilers. Survey results in industry do however indicate a reasonably positive attitude to the prospect of substitution fram oil to coal, but at the present time there is very little econdc incentive, even were there no import duty on coal. Currently the duty is 8% fram the Preferential Trade Area of the Eastern and Southern African sub-region member countries and 20% in case of non P.T.A. member countries. Estinmtes of the cost of delivering coal to Nairobi only ere made in 1985 and yielded a figure of approxbmtely 60 KSh/GJ for the financial cost and 62 KSh/GJ for the economic price. The cost to the KIDA factories would be higher than these figures but as coal is not contemplated to be used by KTDA the increase has not been estimated. ~ollowingthese estinmtes there has been a substantial reduction in oil prices and hence further pressure on coal prices. While the costs of coal nining, shipping and handling have not changed, the market will reduce return on capital and thus prices. To reflect this, base prices have been derived by reducing these figures by 10 KSh/GJ, with low prices a further 10 KSh/GJ lower for both financial and econanic prices. Econdc and financial prices for coal are relatively close together because the customs duties which are not included in econanic prices act to offset the effect of foreign exchange loadings which have been added into the econdc prices of coal. The ranges for the financial and econdc prices of coal in KSh/GJ are accordingly: Financial Econcnnica1 High Base m w 8.4.2.3 Electricity Electricity supplies in Kenya are unusual in their reliance upon hydro and geothermal generation for base load and thermal generation for peak and emergency standby requirements. Electricity is also imported £ram Uganda. Tariffs are based on five year capital investment plans and demand projections. Electricity prices will depend on future investment costs in hydro, geothermal and transmission system developnents. For the purposes of this report electricity prices are assumed to rise in real terms as they have done in recent years, reflecting a policy shift towards the generation of reserves for system developnent and other purposes. Current policy for tariff design is to recover the costs of present day installed capacity and development projects from present day consumers rather than by servicing the debt over the long term from future custmers . Estimated financial prices have been developed as follows: The low financial price of electricity of 147 KSh/GJ is the 1985 tariff for llkV supply. The base financial price of 164 KSh/GJ is the reighted average cost of all electricity used by audited plants in 1985. Given the expectation of an electrical energy shortage in Kenya in the period 1987-88 until the Kiambere hydroelectric power station is scheduled to came on stream, electricity tariffs will rise as growing demands are net fram thermal power. For this reason the existing tariff has been escalated by 40% to give a high financial price of 206 KSh/GJ. (Tariff proposals in 1985 called for increases of an average of 12 cents per unit (kwh)in 1985 and 9 cents per unit each year up to 1990. The large industry tariff for energy was 51 cents per unit in 1985 and would increase to 64 cents in that year and to KSh 1.09 by 1990. This is a 214% increase). Economic prices of electricity are affected by the considerably higher costs of mre recently identified geothermal and hydroelectric projects, and by the large import canponent in the capital costs of generating and transmission equipnent. Economic prices have been based on estimates of future system developnent costs in Kenya, allawing for a foreign exchange canponent of 20%. The ranges of economic prices for electricity in KSh/GJ became as follows: Financial Economic High Base Law The prices of fuelmod are determined by the expected future prices at the forest roadside and future transport distances to the plant. It should be noted that proposals to use fuelmod in industry will have a negligible impact on total demand and hence prices in Kenya. Moreover such proposals generally refer to the use of purpose gruwn plantations of fuelmod; and transport distances should not increase in these cases. H-r other local users of fuelwood may or may not be growing their own supplies; and for non-gromrs the price of fuel- will rise as the source of uncamnitted timber becanes more and more distant. As a result industrial plantation timber could be mom valuable when sold to local users than when used in industry. The economic cost of using plantation grown timber in industry would then be the value foregone by local households unable to grow their own supplies. The economic price of fuelwood takes account of the view that wood is being consumed at a faster rate than can be satisfied by forest yield (Beijer, Peri-Urban Fuelwood Study, MOERD). Plantation cost was established at 400 KSh/tonne plus 100 KSh/tonne for the cost of land. Assuming a gross specific energy of 14.2 GJ per tonne this yields a cost of 35.2 KSh/GJ. Of the delivered costs of fuelmod approximately 15% are foreign exchange with an exchange rate loading of 20%. This yields an economic price of 36.3 KSh/tome which is held constant to reflect the costs of growing trees. The average financial price at the roadside in 1985 was found during the audits to be 18.31 KSh/GJ with most users of fuelmod collecting it nearby. This figure is felt to be law, as noted earlier in this report, and is expected to increase wer ten years to reach the estimated economic price of 36.3 KSh/GJ, with the early period exhibiting relatively fast gruwth and resulting in a base price of 32.3 KSh/GJ. Wansport distance is also expected to increase as the forest resource adjacent to industry is depleted. In line with these expectations the base distance is set at l o b while the high price, reflecting that depletion, assumes a haul of 5 0 b . Accordingly transport costs of 27.6 KSh/GJ (financial)and 31.5 KSh/GJ (economic)for 50 b have been added for the high estimates, with pro rata amounts for 10 b being added for the base estimates. These figures are based on estimates of operating costs collected £rum truck operators in Kenya. In sl-y, the prices in KSh/GJ are made up as follows: Financial Economic High 36.3 + 27.6 = 64.9 (65) 36.3 + 31.5 = 67.8 (68) Base 32.3 + 5.5 = 37.8 (38) 36.3 + 6.3 = 42.6 (43) Lrow 18.3 + 0 = 18.3 (18) 36.3 + 0 = 36.3 (36) 8.4.2.5 Fuel Price Ranqes The price ranges representing the scenarios discussed above are sumnarised in Table 8.2. TABLE 8.2 KENYA FUEL PRICE RANGES (at Factory) Fuel Financial Price Econcanic Price ....................................................................... KSh/GJ KSh/GJ ....................................................................... Fuel Oil - high 75 8 1 - base 72 51 - low 55 45 Fuelwood - high - base - low Electricity - high - base - low Coal (at Nairobi Only) - high 60 - base 50 - low 40 F m a careful review of the T2 investment projects it was seen that they could be grouped into three categories, each category having essentially the same characteristics. These categories cavered respectively: Category 1 Boiler conversion f m fuel oil to fuelwood by the fitting of a cyclonic canbustor; Category 2 Use of a wood fired steam engine to generate electricity for use in withering bl. t-zs, this reducing purchases of electricity; Category 3 Fitting of a cyclonic canbustor to wood fired boiler to improve the efficiency of canbustion. All T2 projects had previously been subjected to financial analysls as a basis for checking their relative importance. This involved specifically the analysis of their internal rate of return, net present value at a 15% discount rate and simple pay-back period. Representative projects f m each of the above categories -re then evaluated using three alternative sources of funds. These covered respectively an equity financed cash flaw, a debt financed cash flaw and a foreign debt financed evaluation. In addition, for each project, using prices selected f m the ranges noted in Table 8.2, the breakeven price relationship was established for the principal fuel(s) involved (oftenbetween fuel oil and fuel-). This crossover analysis then was ccanpleted for both econanic and financial prices, thereby enabling the viability of each project to be assessed for any forecast fuel price. Both the econanic and financial viabilities would be determining factors influencing Kenyan management and financing bodies to implement these prospective energy improvements, hence all economic and the financial results were subjected to sensitivity analysis to assess each project's viability in the light of forecast prices for the fuels. It was then possible to identify those projects which appear strongly justified, those whose viability is suspect and those which are marginal cases and would require more detailed analysis to determine their viability or which muld only be attractive with a return to near 1985 fuel oil/fuelwocd price relativities. 8.4.5 Conclusions by Project Cateqory The findings f m this analysis are set out in more detail later in this Chapter. Overall, h-er, the broad conclusions can be sumnarised as being: Category 1 Approximately half the projects to convert from oil to fuel- appear viable at all projected econanic and financial fuel oil prices. Those belaw that are more sensitive to the oil/& price differential and their cases muld need to be considered individually. Category 2 Self generated electricity for withering is -11 supported econanically; but tariffs would need to rise by 30% to provide a financial case for all but a small number. Category 3 Efficiency improvement projects are warranted in the two projects identified. 8.4.6 Priorities for Projects project implementation will ultimately depend upon a number of factors including the demands for capital as -11 as the availability of skills and the impact of other government or lending authority priorities. However, experience has shown that the NPV (net present value) represents an effective criteria for early project evaluation. A positive NPV reflects an annual return of at least 15% real in this analysis, confirms the effective use of resources, and provides a measure of relative priority for that project. Projects, therefore, have been listed in NPV order in Tables 8.3, 8.4 and 8.5, with the most attractive projects having the greatest NPV and beginning each category list. For sensitivity analysis purposes each of the categories was considered in turn, with the crossover analysis providing price figures at which the NPV's would be reduced to zero (thosefigures being designated as the "breakeven"prices for the project, i.e. the price(s) at which the project would yield a 15% p.a. real return). Where tm fuels were involved the breakeven relationship between the tm was also determined and presented in the form: "Breakeven" price of Fuel 1 = Constant + Coefficient x Expected price of Fuel 2 This relationship provides a continuous basis for sensitivity testing, enabling the viability of the project to be assessed at any nominated forecast prices for the fuels concerned. The projects in each list were reviewed against the current and expected prices for fuel oil, fuelwood and/or electricity as appropriate. In general it was seen that those projects with 1-r NPV's were the most susceptible to falling oil prices or rising fuelwood prices, while the low electricity tariffs current in Kenya had more wide ranging impact. As already noted, this analysis was designed only to check the attractiveness or otherwise of the projects. Other factors will came into play in determining whether or not to proceed (includingthe results of more detailed feasibility studies). Very important amongst those factors will be the practicability of implementing a range of projects at the one time. Indeed it may be appropriate to begin with a small selection f m this number only so as to achieve early success and ensure the sound developnent of an overall energy progrm for Kenya. It will be seen, however, that even after this sensitivity analysis a large proportion of the projects continued to demonstrate viability - successfully negotiating the financial and economic hurdles, hence justifying their consideration for funding. 8.4.7 Sensitivity Results for Industry Projects The following subsections provide the results of the sensitivity analyses, with the projects being grouped within the three categories noted earlier in Section 8.4.3. Cateqory 1 - Conversion f m Fuel Oil to Fuelwood Substitution of fuelwwd for fuel oil can be achieved effectively by fitting a cyclonic canbustor which allows wood to be used in existing boilers. Capital cost is moderate, about half of which in general is imported. Combustion is as efficient with fuelmod as with fuel oil. Haever such projects are sensitive to prices. F m the results in Tables 8.3(a) and (b)it is seen that: on financial grounds the first six projects appear reasonably viable as long as fuelwood prices do not rise above around 40 KSh/GJ and oil prices range up to 63 KSh/GJ; with economic prices, only Chinga, Ikumbi, Iriaini and Tegat have positive NPV's. All, hmver, require relatively high economic prices for oil and muld need to be checked carefully. It muld seem reasonable to recananend that serious consideration be given to the seven projects d m to and including Tegat 3, with the others requiring mre detailed analysis to confirm their viability. All will require careful attention to their likely sources and costs of fuel. Cateqory 2 - Generation of Witherinq Electricity This group of four similar projects contains proposals to use either oil or fuel- to generate electricity. Their economic case generally appears strong, Table 8.4(b) s h a g figures -11 below the "low" economic price for electricity of 330 KSh/GJ. Haever, in general, the financial position for these projects, as s h m in Table 8.4(a), is not viable under the relatively low electricity tariffs then prevailing in Kenya. Tegat 1 does appear to have a sound case to proceed further. In addition, in view of the economic strength of these projects and the plans to lift electricity tariffs, it muld seem appropriate to consider further the feasibility of the next three projects on this list, namely Chebut 1, Thumaita 1, and Mataara 1. Cateqory 3 - Efficiency Improvements The projects to upgrade the oil burner on the Maestro boiler at Mataara (2)and install a heat exchanger at the hot feed and dry fan inlets at Tegat (2)are strongly supported by the analysis. As will be seen f m Tables 8.5(a) and 8.5(b) their breakeven prices are very low. -8.3: C A T E ( X Y 1 - F U E L ~ I C N S F R L M F U E L O I L T O ~ Prices in KShIGJ (a) Financial Evaluation - - Breakeven kcus At expected wal price of Net 18 38 65 Present Value Project is -anted if expected FactoryIProject kKSh Constant Co-efficient oil prices exceed the price below Mtaara, Project 3 myenyam Ilarnbi Iriaini Tegat, Project 3 I c i a n K ) h Mrngania Kapset Wma 1, Project 1 Litein 1, Project 1 (b) E c d c Evaluation Breakeven kcus At expected wal price of Net 36 43 68 Present Value Project is wrranted if expected FactoryIProject kKSh Canstant Co-efficient oil prices exceed the price below Chinga Mataara, Project 3 myen* - namlbi Iriaini Tegat. Project 3 Kiannkinrra Upset Miha 1, Project 1 Litein 1, Project 1 TABLE 8.4: CAlXCRY 2 - GENERATEWI- JiXElTICITY Prices inKSh/GJ (a) Financial Evaluation Breakeven Locus At expected f u e l d price of h e l d 18 38 65 Net ** Fuel Oil 55 72 75 Present Project is warranted if expected Value electricity prices exceed the Factory/Project k KSh Constant Co-efficient price below * Tegat, Project 1 247 68.32 1.2 ** 135 155 159 * Chebut, Project 1 160 128.16 2.22 168 U 3 272 * 'Rnm?aita, Project 1 139 139.88 1.86 173 2 l l 261 * Mataara, Project 1 107 93.98 1.35 ** 168 191 195 * Electricity price not supplied ** Fuel oil substituted (b) Econcmic Evaluation Breakeven Locus At expected f u e l d price of F u e l d 18 38 65 Net ** Fuel Oil 45 51 81 Present Project is warranted if expected Value electricity prices exceed the Factory/Project k KSh Constant Co-efficient price below * Tegat, Project1 1194 83.44 1.U *Ir 138 145 181 * Chebut, Project1 352 155.71 2.23 236 252 307 * W t a , Project 1 318 169.85 1.87 237 250 297 * Mataara, Project 1 790 113.61 1.35 * 174 182 223 * Electricity price not supplied ** Fuel oil substituted TABLE 8.5: CATEGORY 3 - EFFICIENCY IMPROVEMESPrS (a) Financial Evaluation Breakeven Price Net Present Value KSh/GJ Factory/Project kKSh Oil Mataara, Project 2 Tegat 2, Project 2 (b) Economic Evaluation Breakeven Price Net Present Value KSh/GJ Factory/Project kKSh Oil Mataara, Project 2 1302 7.35 Tegat 2, Project 2 550 20.44 8.5 Implementationof Recmnded Projects For some of the fundable projects which have been identified, the KCDA muld probably be able to carry out its own project management and engineering, but this muld be unlikely for all projects. Many of the fundable projects rely upon energy technology which, while reasonably cmnplace in mre industrialised countries,may not yet be widely known in Kenya. Accordingly, it is believed that the success of the Fundable Projects Programne may, in some instances, depend upon the addition of expatriate project management and engineering skills to mrk with Kenyan engineers to ensure that the appropriate technologies and experience are made available; at the same time with the proviso that such werseas experience is transferred to Kenyan engineers as an investment in longer tern national technology developnent. If all the fundable project engineering *re to be entrusted to one or mre overseas organisations without such a proviso, it was recognised that the vital issue of technology transfer would be inadequately addressed. It is therefore proposed that a Fundable Project Management Group be established within an appropriate Kenyan Institutionworking closely with KTDA. It would be headed by an experienced Project Manager with a knowledge of the projects to be conducted, and with the requisite skills in financial and progranme control, conditions of contract, proc=urepnent, site managanent and the like. The project management arrangements proposed would follow normal arrangements for projects conducted using multi-lateral sources of finance. It is not seen as practical for MOERD and KTDA to undertake all the fundable projects on their own. The engineering and management skills are not fully available in Kenya. In many cases the projects themselves, while not unduly camplicated, are little known in Kenya except where provided under turnkey packages by suppliers who all too often retain negligible engineering presence or support facilities in Kenya. Clearly this is not an acceptable scenario; a nuniber of instances of plant suppliers/contractors providing unsatisfactory post-camnissioning support *re identified. Furthermore, and mre importantly, there is significant cross fertilisation of technology betvieen a number of the fundable projects; this potential synergy should not be overlooked. If a KTDA mergy Management Group (Chapter 9) *re to be established using, desirably, counterpart engineers under training, then it is probable that a substantial amount of the design, specification and procurement mrk could be undertaken and controlled from within Kenya by Kenyan nationals and Kenyan engineering oryanisations. This should certainly apply to site mrks, civil and structural engineering design and construction, and all mechanical and electrical services. Specialist mechanical and electrical plant design and procurenrrent work muld, hmver, be subcontracted to expatriate consulting oryanisations experienced in the technologies and with the ability to work them up from feasibility stage through to full demonstration projects. Such overseas oryanisations should,h-ver, mrk wherever possible in close association with Kenyan engineering oryanisations. Projects muld be widely publicised and the results made available to the whole of the Kenyan tea industry. The object of the Fundable Projects Programne muld be to catalyse energy conserving investment activity and to ensure that the relevant technology is transferred into the Kenyan engineering camrmnity in such a way that ongoing projects can, in time, be fully designed, engineered, and managed by Kenyan engineers and financed frcnn Kenyan resources. 9. ACTION PLAN 9.1 Enerqy Manaqmmt Prcaamne 9.1.1 Settinq Up the KTaA Enerqy Manaqmmt Pmqramne The KTDA should initiate an Energy Management Program. This is the single mst important reccsnrrendation of this report. Energy management is no less a prim management function than financial management. Financial management is a basic legal requiranent in any ccmpany; books of account have to be prepared, scrutinised by auditors and suhnitted to the shareholders and the public. For energy accountancy there are no such constraints and hence, all too often, there is very limited management understanding of expenses on this mjor production resource. This is notably true in the tea industry where expemhture on energy typically m t s to same 45% of the total production cost in an oil fired factory. Energy consumption is reported on a mnthly basis, but detailed control or mnitoring is generally at a low level, although there are same notable and encouraging exceptions. Because of this low level of awareness and same inherent plant limitations, there is a danger of energy usage being accepted as an inevitable cost about which little can be done. This report, together with the 19 individual Factory Energy Audit Reports which support it, denronstrate that any ccanplacency in the managerent of the energy resource is ill founded. The consequences of the lack of ~ ~ n a g m mare t mjor in financial tenns yet the Consultants note that the excellent XTaA Annual Report, canprehensive in so many details, does not once mention energy perfomce, energy cost, or the potential for energy saving. This reflects m ~ g m m t ' scurrently low perception of its importance. Clearly,management action is essential, and the nxammdations of this chapter are offered as a guideline and not as a criticism per se. The KTDA Energy Management Pmgramne w l d have t m levels of activity, central and regional. The central activity would be located at and be controlled by KTDA Head Office; the regional activity at each one of the 39 factories. These proposals are dealt with separately. 9.1.2.1 Enerqv Manaqmmt Group Structure It would appear that w i t h i n the present Head Office managerent structure of the KYIWi, the energy m~gementfunction should properly be developed w i t h i n the sphere of responsibility of the Factories Operations Manager. A senior appointment, to be denoted KTWi Energy Manager, is praposed. However, until such a full tim position is warranted, the respansibilityof the Factories Operation Manager could be cxpmded to include the overall supervision, coordination and guidance of the energy mgement function in all of the 39 factories; the mg-t and cost control of all forms of energy supply to the factories, including fuel&; and the reporting and accounting of energy performance and cost on a routine basis. The RITA Ehergy Manager should be a qualified engineer, with qualificatims and experience including both themdpmics and electrical per engineering and be expected also to have s a cannercia1 experience. The KTIlA Ehergy Manager should be supported initially by trained technical field staff, to be called Technical Officers - ideally dram from existing technical staff of the KtDA and with good backgrounds in sane or all of the technologies of oil firing, f u e l d ccmbustion, steam systans, and electricity generation and utilisation. Mxemer, under existing MOERD arrangements, at least in the initial stages, these staff should be given training, possibly overseas. This should be in such areas as energy mnagement, energy auditing, the use of instrunwts, the project managanent aspects of oryanising and funding energy saving projects, and all of the skills necessarily associated with the achievenwt of the objectives of this report. At the initial stage such assistance should be sought from the MDERD. 9.1.2.2 Enerqy Manaqement Group Function The Head Office Ehergy Managanent Group, muld ccanprise the Ehergy Manager, the Technical Officers and clerical back-up as required, and the necessary and appropriate instmmntation. Amngst other things the Group muld provide a field advisory service to each of the 39 factories, assisting than in sane or all of the following: Pdvising on and guiding all energy saving msures as identified in the Ehergy Audit Reports. Supervising the recammded additions of new plant, equipnent, instnnnentationand contmls. Ensuring standardisation of the technical approach to the preparation of purchasing specificatims, plant selection, operating procedures, reporting pmcaiures, etc. Ensuring that KTDA standardise upon the mst appmpriate equipru3nt and practices. Facilitating the obtaining of factory fuel and energy supplies, including fuel oil, fuel&, and electricity on the best terms. Pdvising, with external assistance as required, on innovative projects such as conversion from fuel oil to fuelmod, developrrent of cogeneration schemes,mini hydro schemes,etc. Ensuring that factories are kept fully a m of achievable energy standards, relevant publications, etc., and of each other's performances and successes in achieving energy intensity taryets. Reporting upon perfomces achieved, savings mde and expenditures d t t e d to the Factories Ogeratians Manager for sumnary publication in the KTDA Annual Report. The task ahead of the Energy Manag-t Group is substantial, given the considerable potential for financial saving by improved energy perfomce in ITEL The setting up of the Group, or finding the right staff for it, might not be an easy task but it should be dme. It my be that the tasks outlined above, which are by no means canprehensive, could be assigned initially to existing staff as an extension of existing duties. This could haever have disadvantages as the tasks might not be addressed with the vigour and single mindedness that they warrant. Energy managanent is no less important to KLWi and its m y mrs than say themg-t of green leaf collection which now warrants a separate de-t within the organisation. It is hoped that this report and the individual Energy Audit Reports give encouraga-ent, guidance and objectives for each one of the Group's tasks. 9.1.2.3 Enerqy Managenent Group Inventory of Instnmm-kation The Energy Managanent Group d d need to be equipped with appropriate measuring instrumentation for the conduct of field audits, together with suitable transportation. It is suggested that the minimum inventory of instrumntation should include, but not necessarily be limited to, the following: m (2) Temperature indicators - preferably of the hand-held digital read-out type. One (1) Carbon dioxide gas analyser of the m i t e type. One (1) Oxygen in flue gas probe and strip chart recorder. Ttm ( 2 ) Wked glass vi-rs for furnace observation. One (1) Wke mission tester of the Bacharach p u q type. One (1) Carbon moxide tester of the Bacharach pump type. lko (2) Vane an-ters - hand-held for air velocity m e a s m t s. One (1) @tical w t e r - preferably of the disappearing f i l m t type for furnace temperature msunmmts. One (1 Circular chart steam pressure recorder for boiler and factory plant pressure checks. 9.1.2.4 Role of the lka Industry Enerqy Usaqe Database This report records in surm~uyform, and in Appendix B - lka Industry Energy Usage Database, the present energy performance of KTDA factories, and then sets energy performance targets which the Consultants believe can be achieved. This is not a static exercise. The Consultants' -tiow are towards a wide ranging set of developwnts and changes, all of which would advance, nmdify and extend the mtabase and the savings expected, and in m y cases m y change the taryet efficiency settings. Hence the direct energy accountancy function of the Energy Manag-t Group muld be substantial. It is therefore mxamxded that the Group's energy accountancy function be set up with the btabase as a starting point with mre sophisticated energy accountancy routines and techniques being develaped over tine. 9.1.2.5 Annual Accountinq, Reportinq and Recoqnition It is proposed that the r k of the Energy Managenent Group be separately reported in the KTDA Annual Report and Accounts with, at the very least, the energy performance of each factory in term of energy intensity (GJ/tFW)targetted and achieved, just as green leaf yield and percentage out-turn is now recorded . An Energy Management Award for the best energy performance in the year is recamended as there are few mre effective stimuli than healthy captition betseen cmprable units of the same organisation. Setting out individual factory energy perfomces in the K'mA Annual Report, and the actions taken to achieve then, d d heighten awareness of the importance and consequence of energy management, mre so perhaps than any other single publicity action taken. Initially,the mve m y not be popular with saw Factory Phrmgers, particularly those where below standad performanceswere recorded or where there were notable failures to achieve targets. On the other hand it would probably generate a proper determination amngst Factory Officers to seek help, to insist upon standard mthods of recording and to call for instrumntation and controls to enable them to masure their own perfomce and to u m e it. It would, £ram observation, be ccmpatible with the very independence of spirit and action which is so evident in the present attitude of Factory Officers. 9.1.3 Factory Enerqy Management 9.1.3.1 General Within each factory it is m e d that a Factory Energy Officer be appointed. At factory level the appointmnt of an additional staff lrrember m y be an expense which could not realistically be justified, and hence the job of Factory Energy Officer is one which might have to be carried by the Factory Officer or by one of the senior technical staff. Alternatively, having in mind the already considerable pressure on factory Officers, a District Energy Officer could be appointed to an individual Districtwhich &d caver 5 to 8 factories. RLis mid accord with the existing pattern of managanent at District level. Note: It is cammded that all Factory Officers read the paper entitled "SettingUp an lZnergy Managanent Pmgramne" byM.H. Thaws, a mmkr of the Consultant Team. This paper will be made available fram the Head Office of KTLlA. The Factory or District Energy Officerwill have a mjor task, and within the space of this report it is only possible to set out the essentials of the job respansibilities. 9.1.3.2 Responsibilities of the Enew Officer The Energy Officer's responsibilities m y be broadly s m i s e d as follows: Wise and careful use and conservation of energy (fuels/electricity/wasteheat) within the factory. Coordination of all factory functions including production, operation, transport, mterials handling, storage, etc. f m the standpoint of energy econcmy. Assessrrent, sthadation and implrntation of energy saving investrrrmts. Measumrmt of energy use and conservation and routinely (mnthly)reporting details to the Factory Officer. Education of technical staff and operators in energy efficiency. When necessary, reference of energy problems to the Head Office Energy Manager for assistance. 9.1.3.3 The Enerqy Officer's Job The Energy Officer's duties d d include the following: Record all inccsning factory energy purchases, stocks and consqtion. Relate energy use to production (GJ/W) as shown in each of the individual Energy Audit Reports. This informtion will cover electricity, fuels (whether oil or wood, and including transport fuels), steam, if used, and water. Ensure all records are in consistent energy units. (Thoseused in the Energy Audit Reports, as given in the Glossary, are m=cammded.) This informationwhich wuld also be sulnitted to KTaA head office for record purposes would form the basis of the ongoing factory energy audit progrm. In conjunction with KTDA head office, and based on data collected f m all factories f m which achievable energy standard averages have been cmpted and using infom-ation frwn the Consultants' Eneryy Audit Reports, establish factory m e t energy consqtions, Provide sound technical analysis and advice on energy saving methods, equigmnt and mintenance phures. Encourage their application, with the support of the Head Office Energy Managanent Group as required. Identify energy waste, whether occurring through faulty plant (poor canbustion, leaky steam traps, inadequate th-1 insulation, lack of contmls ) or through bad design (lack of heat exchangers, mmmtoring, incorrect steam or air pressures). Initiate corrective action or investigation and -tion. Generate interest and understanding of energy conservation throughout all factory staff using publications, handbmks, lectures and training courses. Provide or obtain specialist advice as required. Make and mintain contacts with Energy Officers in other factories, with professional bodies, equipnent suppliers, universities and research oryanisations, as relevant. 9.2 Achievinq the Tarqets 9.2.1 Overview The achievement of the energy conservation targets, defined in the Glossary and evaluated in each of the 19 Energy Audit Reports, d d require mre than simply setting up the KTDA Energy Managmt Pmgraxrm. Setting up the KlDA Energy Managanent Programre muld require an input of mney, staff, training, and acquisition of instruments as -11 as the provision of vehicles, office space, and office infrastructure. It is presurned that the latter facilities d d be found and located at Head Office for the Energy Managmt Group, or at the factories for the Factory Energy Officer. Finance d d have to be mde available and a long term financial plan prepared for the setting up and cantinuing conduct of the Energy Management Programre as -11 as implementing the m y technical recoarmendations arising fran it. The financial resources of KTDA trlould be unlikely to be adequate to handle all of the proposed Taryet 1 recammdations,or saw of the Taryet 2 recarmmdatians, in the first year or so. Not only muld financial resources be stretched,but so d d available technical and mgerial skills. A managanent plan mst be fodated. It should have short term and long term goals which are realistic and achievable, and which could be properly funded. Mention has been mde of G o v e m t support and this is essential. It is anticipated that the KTDA Energy Management Ekograrmne d d be supported by Govenvrvant through the mERD. In view of the long tern financial implications, it is clear that Treasury -1-t muld be required. Mention has also been mde of the importance of the invol-t of the Forest Deprtmmt of the Ministry of Envirorrment and Natural Resources. There are no doubt other governnwt d-ts which muld need to be brought together, consulted or simply kept informd . Ccming to the mre detailed activities of setting up the KTIlA Energy Managanent Programrre, it is useful to consider the approach to achievenmt of the energy saving targets under the t m headings of Target 1 and Taryet 2. Work on achievmmt of both d d , mst likely, continue in parallel. Target 1 (Short Wnn) means the achievable energy savings w e t , based on conservation measures which could be taken alrnost imrediately with minimum engineering input and, in general, minimum capital investment. Typically, it is expected that such measures muld show a simple payback of under 1 year and muld include basic housekeeping and correct operating and mintenance practices. The above might infer that Target 1 r k could be achieved w i t h existing staff and resources at all factories simply as an extension of existing housekeeping and operating and mintenance pmcdures. Haever, the Consultants found that the technical and specialist ccmbustion resources available at mst factories were unlikely to achieve this. Factory technical skills were on the whole much mre highly developed in tea processing rather than energy conservation. Accordingly, it muld be necessary in alrnost every case first to appoint a Factory Energy Officer, and also to set up the KIDA Energy Managewnt Group at Head Office to provide a coordinating and advisory role. Next, it muld be essential that the Energy Officer of each audited factory read and understood his Energy Audit Report in detail. Each of these reports is fully analytical and prescriptive of the step to be taken to achieve Target 1. Haever, m y of the steps m e d do demnd instmmentation, both portable ard fixed, which would not yet be available to the factories; and mre particularly, technical skills which were certainly not currently available. While this is no reason for not endeavouring to at least make a start on Target 1 activities, it muld be wrong to assum that all Energy Officers muld learn on the job. Therefore, a coordinated series of training programnest covering each of the min issues raised in the Energy Audit Reports, should be set up and run. Next, the Factory Energy Officer muld have to prepare a detailed mrk plan for each Target 1 itan, including program, cost e s t h t e and lists of equiprent and mterials required. It is suggested that this mrk be standardised w i t h i n KT& using existing procedures for capital authorisation, mterials purchased, approval of projects, etc. A review of the 19 Energy Audit Reports p r e m w i l l show that the Target 1 actions typically include, but are not necessarily limited to, the following: Clean burners Improve atdsation Correct &/fuel ratios Install continuous air fuel mdulation to ensure correct air fuel ratio over whole firing range Lag steam piping Repair valves and flanges Repair and replace faulty steam traps and steam systm equipoent Install auto temperature control at steam radiators Reduce air flow rates at dryers Investigate and if necessary replace withering fan impllors Control withering times by use of electro h-tric recorders Install kWh meters for withering houses 'kain support staff in energy mnitoring and efficiency optimisation Reduce size of mod billets being fired. The estimted cost of undertaking T1 projects for the 19 audited factories is just over MKSh 1. Extending this to the total of 39 factories, and allowing for a reasonable contingency,muld suggest an estimted total KTDA investmnt for all T1 projects of say MKSh 2. This is estimted to show an annual return approaching MKSh 20, a simple average payback of betmen one and two mths. 9.2.3 Achievement of Tarqet 2 Target 2 (Ung Tern) energy savings have been defined as those achievable based on conservationn-easures which could be taken, with appropriate planning and engineering input and the expectation of capital investment in new or imp- plant or processes or a mre econanic energy source, and which muld give an acceptable econanic and financial rate of return (i.e. greater than 15% real). Target 2 Projects can involve substantial capital input, and hence associated project mnaganent and engineering input. Their successful implermtationmuld therefore require that the KTDA Energy Managment Group be established with a mrking budget, and be already experienced frran the eff&ve a c h i m t of Taryet 1 Projects. It would also require that Factory Energy Officers be already appointed, have a full understanding of the contents of their individual Energy Audit Report, and be fully aware of the substantial energy and cost savings available to them, arising f m the successful ampletion of Target 2 Projects. It is believed that, initially,T2 projects m l d require sane external or possibly overseas engineering expertise, particularly in two attractive areas. The first is conversion froan fuel oil to fuelwood, and the associated develaprw?nt of fuelwood plantation practices and fuel preparation and canbustion practices. W e or two demonstration projects are strongly recammded as a starting point for effective evaluation. The second is cogeneration,where again it is suggested that one or perhaps two demonstration projects at selected factories be engineered in such a way as to give K!tDA an ongoing guide as to the appropriate engineering of future cogeneration projwts. In general, the substitution frran purchased electricity to private generation via cogeneration, or the substitution of fuel- for fuel oil, d d not show savings in energy but d d show substantial financial savings. The estimated cost of undertaking those T2 projects for the 19 audited factories show to meet the Bank's invesiment criteria , and allowing for a smll contingency, suggests an estimted total KTDA inves-t for all T2 projects of around MKSh 45. This is estimated to show an annual return of just aver MKSh 25, a simple average payback of about -Years* Clearly, funding of all prospective T2 Projects m l d likely be beyond the internal revenue raising capability of the KIDA. It is noted f m the KTDA Annual Report that loan funding is used for n m factory developnentsand it is ass& this would be the case for the T2 projects, and particularly the M e 1 Tea Factory described in the next section. While the engineering problem in achieving Target 2 d d be quite substantial,the greater issue, in national tern, d d be ensuring that an adequate supply of fuelwood be made available so that KcDA could be in the same energy position as the private sector. Tb achieve this d d require a very significant and detelmined input f m the KTLlA staff taking the lead role and f m the Gowmment, through mERD and probably m y other Departments. This reinforces the need for close moperation with the already established Ministerial Energy Planning Cannittee,details of which are given in Section 7.3.2 of the cQnpanion report "Kenya Coal Conversion and R~ergyConservation and Substitution Action Plan". It is unrealistic to expecrt that the KTDA or PDERD alone could undertake or support the necessary program~s without such cooperation or high level d b w n t at the national level. 9.3 Model Tea Factory 9.3.1 Preamble in recent years there have been suggestions f m a variety of sources for the establishrmnt of a M e 1 Tea Factory for the joint use of both the KTDA and KEA (theprivate sector). This thrust has arisen f m the need to develop impruved data on the relatiunship between processing techniques and the quality, flavour and other mrket detemining properties of made tea. With the advent of the present study, the M e 1 Tea Factory concept was amsidered in mre detail f m the standpoint of imp-ts in factory energy perfomce, an issue which this reports shows to have a substantial impact upon production costs. 9.3.2 Technoloqv Transfer into the Tea Industry Early in the Rmqy Efficiency in the Tea Industry Study the KTDA executive mphasised that one of the benefits of the Study must be technology transfer at an accelerated rate into the Kenya tea factories. This requestwas reinforced by individual factory officers at the seminar held in Nairobi on 16 Septenber 1985. In respmse to this basic guideline the 19 bergy Audit Reports put forward a number of proposals using mdem technologies to impruve energy efficiency in the tea industry. It was, hot(.;lever,appreciated that the tea factories which make up the Kenya Tka Developnent Authority are physically far rerwed one £ram the other and, unless saw fonrral mans of inter-factorytechnology transfer was to be set in mtion, the results of a mdification or developnent in one factory might be long in reaching others so that all d d benefit. The Kenyan tea industry has an excellent research organisation h a m as the Tba Research Foundation, located at Kericho. Its present mrk, however, is largely direct& to the agricultural aspects of tea planting and green leaf production, and inwitably limited in the energy intensive areas of withering, processing and drying. If an accelerated rate of technology transfer was not established then a long "learning curve" period would be ahead, old-fashioned technologies would be tried and discarded and a loss of profit in the tea industry would continue for many years. 9.3.3 The W e 1 Tba Factory Wing the audit programt~it was noted that dedicated and intelligent factory m g m t efforts to maintain the high quality standards expezted of Kenyan tea under varying production rates and conditions and in the face of rising energy costs being hindered by several factors. These factors included: . A reluctance to change to mre &em equiprent pending dmnstration of its effectiveness under cmrcial conditions. Tba quality was understandablyan overriding consideration. . Process and energy plant instrumntation was minimal. Because of this, technical assessments and queries could not be based on adequate physical data, and the ongoing control and mnitoring of optimum conditions was severly hampered and restricted to experience. . Technical and process training for middle and senior manaqmt personnel was being provided by "hands-on" experience as their careers developed. This was a long pmcdure especially in view of KTDA' s expansion progrm. The next KTDA factory to be built, &kch it is understood £ram advice received fram the KIWi d d cost in the region of MKSh30-50, could, subject to the findings of a formal feasibility study, be specified and funded as a W e 1 Factory suitable for efficient, carmercial production of high quality teas, yet designed with alternative and innovative process equipnent and energy plant configurations. Facilities for efficient oil and biamass fuel utilisation, fluidised bed tea drying and self-generated electricity forwithering m l d be provided. These facilities d d be thoroughly instmmnted and have auto/mual msdes for trial plrposes and technology demonstration. The Mcdel Factory would be designed to be highly energy efficient,and canfigured to anbody the best possible msdern layout appropriate to materials handling and production -ts. More particularly, it d d be so laid out as to pennit flexibility in plant arranganents and to allm the application and testing of a variety of alternatives. For example, the drying section muld be arranged to pennit the testing and ccsnparison of drying by direct or indinxt air heater or steam heater; tray dryer or fluidised bed dryer; fuel oil or mod firing; cyclonic canbustor or gasifier; or any other fundammtal process alternatives. The important alternatives of firing by direct carbustion, cyclonic canbustor or gasifier would be cQnpared and reported upon under properly controlled scientific conditionswith correct attention to the neasunxwmt, recording and reporting of results. It is also proposed that the role of the Tka Research Foundation, or other ccsnpanion organisation if found mre appropriate,be actended to include the nagan anent and operation of a Model Tka Factory. The Mcdel Tea Factory would be operated on behalf of the whole tea industry,and conveniently located so that it was readily accessible to the Tea Research Foundation and to all tea producers. The Model Factory m l d be built as part of the tea pduction expansion programw of the KTDA. In addition, however, it d d be designed to enable each of the various steps in the tea processing chain cavering withering, green leaf processing, tea drying and tea packaging to be individually evaluated under mre controlled conditions than could possibly exist in any nolmal working factory, where staff have to be limited to those strictly necessary for the tea production process. 9.3.4 Measurement Standards and Reportinq The Mcdel Factory d d not simply serve as an evaluation ground for canpeting process alternatives, although this m l d be one iqmrtant objetive. More importantly, it d d serve to develop and set up industry standank for the process operational paramters associated with the mst efficient practices. The Consultants in their fieldwrk noted that, notwithstanding an apparent similarity bebeen m y factories, a wide diversity of operational practices and operational results was evident, leading to a wide spread of operational efficiencies for otherwise similar plant and conditions. In m y cases, it was apparent that Factory Officers were individually doing their best to ensure IMxirmrmefficiency (ie. high quality tea production with minimum operational cost), given the limited availability of process procedure guidelines and instrumentation. Nevertheless, it became quite clear that in m y factories ins-tation was quite inadequate and process pmcedures, notably on cabustion processes, insufficient to ensure that the mst econcmical practices wre set up and mintained. The Malel Factory d d therefore serve to danonstrate achievable standards in fuel preparation, cambustion,withering and drying and steam and hot air systans. Cperational taryets and paramters, both in process quality and in the field of energy intensity, a d be progressively developed and reported upon for the guidance of Factory Officers throughout the whole of the tea industry. Finally, the Model Factory and its staff would set efficiency levels and energy consumption standards and a d be expect& to publish documents and perhaps a quarterly journal so giving the industry a continuous reporting base on work done and results achieved. 9.3.5 Staff Traininq An important function which would, in time, be undertaken and managed by the Malel Tea Factory is that of staff training. It is proposed that a n-r of training courses muld be set up, in response to need, oryanised and supervised by a Training Officer. These muld cover training in all aspects of tea processing, fuel preparation, cambustion efficiency, steam systans, instnmentation and energy auditing, to nan~ but a few starting points. Such training d d engender and enhance industry wide captition and co-operation and would be a cornerstone in lifting the overall technical perfomce of the tea industry. Training facilities which would be needed for "hands-on"training progrms at the Model Factory include a lecture roan with visual aids and a reference library which would enable the Kenyan tea industry to enhance its position vis-a-vis its international canpetitom. 9.3.6 Economic Justification 9.3.6.1 Maintenance of Market Share Taking into account the continually rising education standards in Kenya, improved process and energy technologies will becarre known and accepted, perhaps within 15-20 years. Haever the risk for Kenya is that other tea producing countries m y apply such imprcmmats within the next 5 years and capture same of Kenya's mrket s h through the ability to operate mre econanically and effectively. A 5% loss of mrket share, for example, could reduce KTDA's export incaw substantially. This potential loss has to be weighed against, not the full value of a new tea factory since this is dictated by KTDA growers crop developents and justified by n o m l sales revenue, but against the inc-tal costs of pmviding advanced and alternative mchinery, concept study and engineering developrrent expenses and the funding of instrumentation/training facilities. The positive value of the develapnent demnstration and -9 aspects of the Model Factory, over and above its ccnmercial value, is difficult t o quantify in financial terms. Howver, eqerience has shown that alrrPst a l l successful industry groupings worldwide share comnan research, developnent and darmstration facilities to great effect. The Kenyan tea industry seems mst unlikely to be an exception. 9.3.6.2 Project E c o n ~ c s Given that the We1 Tea Factory is to be a new production factory, built as part of the KIDA's ongoing factory developnent programne, it m y be ass& that the costs and benefits will, at least to first order accuracy, parallel those of existing factories of -able o u t p t. The basic capital cost of the factory, the allocation of operating staff and labour, and the non-labour operating costs which, excluding green leaf, are minly fuel, w i l l be offset by the rwenue f r m the sale of mde tea to the sarrre general pattern as n m exists for mst of the other KTDA factories. The project econanics of any new 'basic' KTRA factory are beyond the scope of the present study. For the Model Tea Factory, therefore, it is necessary to consider the i n c m t a l capital and operating costs, attributable strictly to addressing the 'Wel' concept, and to ccanpare these with the additional benefits expected t o accrue. Inc-tal capital w i l l , in the min, be required for the additional instrumentation, meas-t, and data analysis quipwnt required, as w e l l as the additional infrastructure support needed for research staff. In sane cases plant alternatives m y be required for FPlrposes of ccmparison so leading to sane degree of red&cy. Haever, overall the inc-tal capital is mt unlikely to ex& 10%of the basic capital cost. A sum of say MKSh 5 d d be ample to prwide quite elaborate test and measurerent facilities. Inc-tal operating costs w i l l essentially cover additional research staff . A Research Officer, and say three Research Assistants, should be adequate given the existing strong infrastructures of the KTDA and the Tea Research Foundation. Thus a budget of say MEGh 1 to 1.5 per annum should be mre than adequate. Benefits would be expcted to arise on three counts: Reduced specific energy consmption (GJ/tMt)in all existing and new factories; Imprwed tea quality arising f m consistent drying practices and the establishment of industry guidelines, and Reduced wastage £ r a n off specification product. The Consultants cannot, with authority, advance a valid opinion on the latter t m opportunity areas. Hcxever, the industry wide energy saving potential identified in W l e 5.1 m t s to nearly MKSh 45/a. W-le these savings can be achieved without a W e 1 Tba Factory, there is no question that the focus given, inter alia, to energy efficiencywill: Ccmsiderably accelerate achievement of the target of MKSh 45/a savings; Probably lift that target for existing factories;and Help to ensure that future factories are built to the highest energy (andproduction) standank econcanically achievable. The Consultants believe that the econcmic case for a Model !Jka Factory is, at this stage of prefeasibility analysis, sufficiently ccmpelling to warrant a site specific full feasibility study. Such a study could well be the subject of an overseas aid programre. 9.3.7 Fundinq and Manaqenent Clearly, the proposal for the Model Tba Factory m l d need to be developed if, at this stage, it is thought to have merit. H m r , beyond the concept that it m l d be funded,mnaged and operated by the existing Tba Research Foundation, no mre detailed or alternative proposals are put £ o h . The rrranagazrent and funding base of the Tea Research Foundation muld need to be appropriately expanded and strengthened,but the frammrk does exist now, as do the professional attitudes and the national recognition so necessary for success. Unless there are telling issues which negate it, it is proposed that staff funding and managazrent be considered as a devel-t of and extension to the existing Tba Research Foundation. No detailed capital estimates have been prepared as this must be the subject of a properly developed brief after consulting first with senior representatives of Governmnt and the Tea Industry. Haever, as a starting pint, the Consultants were advised by KTDA, as noted abave, that a new factory of 1.8 million kilogram per annum of mde tea capacity, at 1985 prices, muld be likely to cost in the region of MKSh 30-50, depending upan the cost of site acquisition and dmlopllent, and the plant to be installed. In order to maximise early retums and minimise initial capital, it is suggested that the first stage of developrent aim at an intermediate level of production and concentrate on the develapnentof f u e l d preparation and efficient cdxstion practices for withering and drying, with an associated cogeneration schene. Iater stages of dmlopllent could include expansion of processing capacity, and the testing of alternative iterrrs of process plant as found to be required by the industry. It was clear that no individualmrking factory, either from the KITS or the private sector, could readily afford to carry sufficient technical staff to ensure maintenance of the highest realistically achievable production efficiencies at all times, or the laboratory or investigative and reprting facilities to serve as an advisory centre for the whole tea industry. Indeed, it was not practical, given the nature and amership structure of the industry, even to contemplate that any one factory could serve to set process guidelines. Any such role muld have to be centred upon a single organisation whose results w e r e equally and widely available to all supporting organisations and their units, and framwbn all supporting organisation could draw benefit. It is for this reason that a body such as the Tba Research Foundation has been proposed for the overall managenat task. Worldwide there are m y such parallels of centralised process developwnt in the industry. Virtually all agriculture and process industries have access to sane central research, developrent and demnstration facility, and to test facilitieswhich may be drawn upon in the event that desFred experimmtalmrk cannot be readily conducted in a mrking factory. Where the results are to be made available to and hence the mrk funded by the industry as a whole, such a facility is nomlly utilised. It is recanwnded that a full scale feasibility study be undertalcen into the costs and potential benefits of a Model Tba Factory. Such a study muld take account of the relationship be- processing techniques and the quality, flavour and other market detennining properties of made tea as el1 as investigating in detail all of the energy related issues outline above. APPENDIX A EXECUTIVE SUMMARIES FROM INDIVIDUAL AUDIT REPORTS ENERGY AUDIT REPORT E x e c u t i v e Surnn~ary CHEBUT TEA FACTORY COMPANY L I M I T E D NAND1 D I S T R I C T Chebut tea factory, commissioned in 1972 with oil fired packaged boilers before the days of high cost energy, has been in production for 13 years. In order t o reduce energy costs the oil fired boilers were replaced in 1979 with fuelwood fired locomotive boilers. Its current configuration using wood fuel for raising steam for air heating, is based on requirements for quality production and close control of process operations, understandably without much attention t o energy efficiency. Audit data and the factory's plant configuration a t the time of the audit on 15 October 1985 are summarised in Appendix A - Energy Audit Sheet 1985 and Appendix B - Energy Survey Questionnaire. The estimates for energy saving opportunities are based on actual measurements or engineering-economic judgement following the site visits. Cost and savings are approximate and additional engi neeri ng and economic feasibility investigation, particularly t o take account of continuing variations in energy costs, wi 11 be necessary before proceeding with any of the projects identified. Indeed i t should be observed that since the time of the 1985 audit, international fuel oil prices have fallen dramatically, while the economic and market prices of both electricity and fuelwood have ri sen. 1.1 Present Energy Uti 1i sation - The FY 1985 energy consumption, utilisation and target energy intensities ( T I and T2) for the Chebut Tea Factory in the Nandi District are summarised in Table 1.1. The percentage cost and consumption of the various energy forms are shown pictorially in Figure 1.1. Fuelwood and electricity account for 55.3%and 43.9% respectively of a l l energy costs reported. The recommendations are aimed at reducing these costs. The specific energy consumption for FY 1985 was 25.12 GJ/tMT which is exceptionally high by tea industry standards. The achievable targets for specific energy for this factory are assessed as 21.81 GJ/tMT (Target 1 ) and 19.10 GJ/tMT (Target 2). A detai 1ed analysis of energy trends during the seven months before the audit reinforce the overall impression that positive and determined efforts are needed t o arrest and reverse the rising energy costs which are adversely affecting the return t o growers in this district. Fa11t.h>r;i. CI.?.b[-lt Tea F.:,c.tl:r*.i. C:~:tr<~pallyLirjli t ec-J D i s t i - i i t : l\.!atldi A l t i t c d e r.;!~?n.~it-~~l !I:ar;.:<~:it;*.~: lz(;j!:.i tMT Heat .:?r .-c+e .- .. e.r~.I .- Fuel W I:, !;I!j n.12 02 ,T.:a (3 a Jd.L EiJ 4!I! F,6.Fj I:: 11 I.::: '3(1)5 I:: L .-9 L.148 13J 82.1. I::5t.1 1::: 1:z.q FIGURE 1.1 -p...,i EE; t.,.Jys;1, /5!i ''j( t . 1;:;:;i:~ - 1 1 (-::i ..i LHEBUT TE4 FACTOFT'(.. Fi' 19& 1.2 Target 1 - Short Term Energy Savings By adopting a vigorous energy management programme and implementing the short term recommendations which, i n general, require minimum investment levels, a Target 1 energy i n t e n s i t y o f 21.81 GJ/tMT could be achieved. Plant energy consumption a t current production levels would be reduced by 5 759 GJ/a or 13% o f present consumption, a saving of 143 000 KSh/a, o r 9% o f 1985 energy costs, as sumarised i n Table 1.2. The increased green l e a f payment t o growers i s expected t o be i n the order o f 0.02 KSh/kg green l e a f (equivalent t o 0.08 KSh/kgMT). TABLE !.2 - TARGET 1 - SHOQT TER! EHEEGY SAVINES ................................................ Factory Chebut Tea Factory 1!3-W3r Energy Fora Energy Target Energy Energy Actual Target Cost Cost !nvestment Payback Usage Usage Savings Savings Cost Saving Saving GJ/tNT SJ/tilT GJ/tHT X kKSh kKSh kKSh * Z KK5h Years E l e c t r i c i t y : Generated n i l n i i n i l n i l n i 1 n i l n i l n i 1 - - Furchased 1.70 1.55 0.05 3 713 701 17 2 1 Fuel n i l n i l t i ii n i l n i l ni 1 n i l nil :1 60 ri.04 Di.--1 O i l t k e .r 0.05 0.05 n i 1 tl: 1 1 1 14 n i 1 n i i - 1.3 Tarqet 2 - Lonq Term Enerav Savinas By implementing the 1ong term recomnendations which, i n general, require some c a p i t a l investment, and subject t o f u r t h e r more detailed evaluation o f engineering and economic f e a s i b i l i t y it i s estimated t h a t a Target 2 energy i n t e n s i t y o f 19.10 GJ/tMT could be achieved. Plant energy consumption a t current production l e v e l s would be reduced t o 33 234 GJ/a o r 24% below present plant consumption, y i e l d i n g a further saving of 254 000 KSh/a o r 16% o f 1985 energy costs, as summarised i n Table 1.3. The e f f e c t o f achieving the Target 2 levels i s expected t o f u r t h e r increase the green leaf payment t o growers by 0.03 KSh/kg green l e a f (equivalent t o 0.1 5 KSh/kgMT). TABLE 1.3 - TARGET 2 - LCNE TERN EHEZfY EdVINGS ................................................ Faitory : Chebut Tea iaifory 02-Rar Energy Form Energy Target Energy Energy Aituil Target Cost Cost Investwnt Payback Usage!lj Usage Saving: Savings Cost (!I Szving Saving GJitHi GJ!tMT EJ!ttlT Z KKSh KKSh KKSh 1 KKEil Year5 ............................................................................................................ cle.-e.;.-it?: ,- , a fet~erated nil 0.57 -0.57 - nil 1 1 .-, Puriilaser! 1.E5 !.0E 0.57 35 701 1 552 142 21 400 7 L. I Fuel Oi! nii nil ni 1 nil nil nil nil tiil Fuel ~ o o d 20.11 17.40 2.71 13 779 674 105 13 ieoo !7.1 Diesel Oil 0.05 0.!15 n: l ni! 14 14 nil ni! _ _ - - - - - - - _ - - - - - - - - - - - - - - - - - - - - - - - - - - - - -.................................................. - T O ~ aI 21.81 19.10 2.71 12 1494 1240 251 17 2200 8.7 - - - - - - - _ - _ _ _ _ _ - _ - - _ - - - - - - - - - - - - - - - - - -.................................................. - - - (1) Ait+r Tl savings have been achieved 1.4 Recommended Projects t o Achieve Target Energy Savings Table 1.4 summarises the projects i d e n t i f i e d t o achieve the targeted energy savings a t Chebut. Reference i s given t o the report chapter i n which a more detailed discussion o f the proposal may be located. A11 estimates must be regarded as very preliminary. Should it be decided t o proceed a f u l l engineering design and estimate i s recommended before funds are committed. TABLE 1 . 4 - ?E1:'IMEHldT!ONS --------------------------- L Plant : Chebut Tea Factory 03-93: Page 1 o f 2 -------------------------------------------------------------------------------- F r o i r i t 3escr:ptlon Energy Ccst Capital Paybaik Eeferenie Saving; Saving Cost Tiae Chapter 6Jia KShh K'h Years Target t Shorf Tern Energy Savings ......................... 1. Carry out radiatiori and s t e a a leakage t e s t . I 2. Adjust fuel-air rat:^ at boilers. I 3. Redurc s i z e o i w~jodb i l i e t s I 4. Instal! a u t c teap 1:ott:cl a t dryer s t e a a radiators. 5. Cbech: and ::zrrert I.!-r~js;-aix:ngn, 6. I n s t a l i out!ei f l u e jas teap i n d i i a t o r a t *aih boiler a u t l + t . 7. I n s t a i i furnace rucf:on pressure indicator: on each boi!er. 8. Clcmtro! withering tiwcs by dse of electronic hygoretrir recorder. I :'. Ir!stall i151i aeter for ui thering h81u;e. I 10. Lag s i d e s of dryers t o reduce he3t losjes. TASLE 1.4 - PECOflYENDkTIONS z:ont. Plant : Chebct Tea ;ai:c:v !22-!4ar P q e 2 of 2 ................................................................................ Project Desrr:~t:;n Et;er;y !::st Cap:';] ?iytark Ref~ r + n i e Savings Savin; Cost Tiie Chzp ter lGL/a K z h i ? K5h Ye315 Target i iont. Short Term Energy Savings ......................... i1. inyeskigate and repiace aitllering fan impellers i2. Adjust air f l l j ~rates a t dryers ;3. Train :tiif in energy r~~onltoringand eifiiieaijl 11ptini:ation. Target 2 L ~ n gTcr3 5ner;y Sayins; 1. 4etrofit Soiitri with iyc!ot~ii combustor and 4715 ~ ~ ~ I J Q O 1ECg 17. i !0.0 :n;:ali ?u!ver isat::~nl drying plant :. Install .tea:! driven AC Nil !i90@0 400060 2 . 7 4. 0 generator for vitheri!lg a i r fans. ENERGY A U D I T REPORT E x e c u t i v e Summary CHINGA TEA FACTORY COMPANY L I M I T E D NYERI D I S T R I C T 1.O EXECUTIVE SUMMARY Chinga tea factory, commissioned i n 1963 before the days of high cost energy, was the f i r s t KTDA factory b u i l t and has been i n production f o r 22 years. I t s design, using o i l fuel f o r r a i s i n g steam f o r a i r heating, i s based on requirements f o r q u a l i t y production and close control o f process operations, understandably without much attention t o energy efficiency. On the other hand, it i s understood t o have o r i g i n a l l y used a steam driven AC generator for e l e c t r i c power. This cogeneration f a c i 1ity was d i srnantled some years ago. The i n s t a l l a t i o n o f a new f l u i d i s e d bed dryer w i t h a recycled exhaust heat energy recovery system was nearing completion a t the time o f the audit. Audit data and the factory's plant configuration a t the time o f the audit on 24 Septeniber 1985 are summari sed i n Appendix A - Energy Audit Sheet 1985 and Appendix B - Energy Survey Questionnaire. The estimates f o r energy saving opportunities are based on actual measurements or engineering-economic judgement following the s i t e v i s i t s . Cost and savings are approximate and additional engineering and economic f e a s i b i l i t y investigation, p a r t i c u l a r l y t o take account o f continuing variations i n energy costs, w i l l be necessary before proceeding w i t h any o f the projects i d e n t i f i e d . Indeed it should be observed t h a t since the time o f the 1985 audit, international fuel o i l prices have f a l l e n dramatically, while the economic and market prices o f both e l e c t r i c i t y and fuelwood have risen. 1.1 Present Energy U t i l i s a t i o n The FY 1985 energy consumption, u t i1is a t i on and t a r g e t energy i n t e n s i t i e s (TI and T2) f o r t h e Chinga Tea Factory i n the Nyeri D i s t r i c t are summarised i n Tab1e 1.1. The percentage cost and consumption o f the various energy forms are shown p i c t o r i a l l y i n Figure 1.1. Fuel o i l and e l e c t r i c i t y account f o r 80.8% and 18.6% respectively o f a l l energy costs reported. The recommendations are aimed a t reducing these costs. The s p e c i f i c energy consumption f o r FY 1985 was 29.86 GJ/tMT which i s exceptionally high by tea industry standards. The achievable targets for s p e c i f i c energy f o r t h i s factory are assessed as 25.67 GJ/tMT (Target 1) and 25.67 GJ/tMT (Target 2). Positive and determined e f f o r t s are needed t o arrest and reverse the r i s i n g energy costs which are adversely a f f e c t i n g the r e t u r n t o growers i n t h i s d i s t r i c t . TABLE 1. 1 - OVEEALL EhIERGY USAGE AND COST FEF'CIFIT (1 FY 1'385:) ........................................................... Fa11111r t y : ~::hinga Tea Fa11tl:try C:l:lri~pany L irili t ed D i s t r i c t : Nyeri Pll t i tude 2t356rj1 hll:*ri~inal 11:apat:ity : 15t7(:) t;MT Heater S t eari~ Fuel O i 1 Energy I~l:lnruri~pti~=ln: E1el:tricity Fuel O i l !F:FO:I li:L 123(1) GJ 4-3567 I:: t:::Sh 348'3 Diesel O i l (:IDOl Energy I n t e n s i t y : Withering I;r een Leaf F'rt:ll=e.ssi ng D r y i ng T111t a1 S~aurl:e Energj/ I n t e n s i t y : E l e c t r i ~ : i . t y GJ/tMT 2. 1.3 Fuel O i l G J / t M T 27-57 Diesel O i l G J / t MT (I! . 1(1) T ~ = ~ t a l GJ/'tMT 2.3. 86 Energy I n t e n s it y Targets : Target 1 GJ/tMT 25. 67 Target 2 GJ/tMT NA F'cltential Energy Savings : Tar get 1 achieved GJ/tMT 4. 19 Tar get 2 achieved GJ/tMT NA Energy C13sts : Annual Energy ~Zl-lst Spec if i Energy C~zlst F'cltentia1 C:lzgst Savings : Target 1 at: hicved t:::Sh/kqMT (11. 34 Target 2 achieved t:::Sh/P:qMT NA 1.2 Tarqet 1 - Short Term Energy Savings By adopt ing a vigorous energy management progralmne and implenlenting the short terln recommendations which, i n general, require ini ni~numinvestlnent levels, a Target 1 energy i n t e n s i t y o f 25.67 GJ/tMT could be achieved. Plant energy consurnption a t current production levels would be reduced by 7 534 GJ/a or 14%o f present consumption, a saving o f 607 000 KSh/a, or 14% of 1985 energy costs, as su111111arisedi n Table 1.2. The increased green l e a f payment t o growers i s expected t o be i n the order o f 0.08 KSh/kg green l e a f (equivalent t o 0.34 KSh/kgMT). TABLE 1.2 - TARGET 1 -SHORT TERH ENERGY SAVINGS ................................................ Factory : Chinga Tea Factory 01-Jan Energy Form Energy Target Energy Energy Actual Target Cost Cost Investment Payback Usage Usage Savings Savings Cost Saving Saving GJItHT GJItHT GJItHT X KKSh KKSh KKSh X KKSh Years ........................................................................................................... E l e c t r i c i t y : Generated n i l n i l n i1 n i 1 Purchased 2.19 2.07 0.12 5.0 802 760 42 5.2 60 0.1 Fuel O i l 27.57 23.50 4.07 15.0 3489 2924 565 16.2 Uoodfuel n i l n i1 n i l n i 1 - - - - - - Diesel O i l 0.10 0.10 n i l n i l 27 27 n i l n i1 - - Total 29.86 25.67 4.19 14.0 4318 3711 607 14.0 60 0.1 1.3 Target 2 - Long Tern1 Energy Savings By implementing t h e long term reconunendations which, i n general, r e q u i r e some c a p i t a l investment, and subject t o f u r t h e r more d e t a i l e d evaluation o f engineering and economic f e a s i b i l i t y it i s estimated t h a t a Target 2 energy cost o f 1.03 KSh/kgMT could be achieved. Plant energy consumption a t c u r r e n t production l e v e l s would remain v i r t u a l l y t h e same a t 46 155 GJ/a b u t a f u r t h e r saving o f 1 854 000 KSh/a o r 43% of FY 1985 energy costs would be achieved, as surnmarised i n Table 1.3. The e f f e c t o f achieving t h e Target 2 l e v e l s i s expected t o f u r t h e r increase t h e green leaf payment t o growers by 0.24 ~ ~ h / kgreen l e a f (equivalent t o g ' 1.03 KSh/kgMT) . TABLE 1.3 - TARGET 2 - LON6 TERH ENERGY SAVINGS ................................................ Factory : Chinga Tea Factory 01-Jan Energy Forb Energy Target Energy Energy Actual Target Cost Cost Investment Payback Usage(1) Usage Savings Savings Cost Saving Saving GJltHT GJltHT 6JltHT X KKSh KKSh KKSh Z KKSh Years ----------------------------------------------------------------------------------------------------------- Electricity: Generated n i l 0.5 -0.5 - n i1 701 59 8 400 6.8 Purchased 2.07 1.57 0.5 24.0 760 Fuel O i l 23.50 2.35 21.15 90.0 2924 326 1795 61 1200 0.7 Uoodfuel n i l 21.15 -21.15 - n i1 803 Diesel O i l 0.10 0.10 n i l n i1 27 27 n i l n i l - - Total 25.67 25.67 n i l n i1 3711 1957 1854 50.0 1600 0.9 ___________________--_---------------------------------------------------------------------------------- 1.4 Recorru~lendedProjects t o achieve Target Energy Savings Table 1.4 s u ~ ~ l a r i s etsh e p r o j e c t s i d e n t i f i e d t o achieve t h e targeted energy savings a t Chinga. Reference i s given t o the r e p o r t chapter i n which a more d e t a i l e d discussion o f the proposal may be located. A11 estimates nus st be regarded as very p r e l i ~ nnary. i Should it be decided t o proceed a f u l l engineering design and e s t i ~ n a t ei s recomaended before funds are corruni t t e d . TABLE 1.4 - RECOMMEMDATIOMS ........................... P l a n t : ChingaTeaFactqry Page 1 of 2 ..................................................................................... Project Description Energy Cost Capital Payback Reference Savings Saving Cost Time Chapter 6Jla KShIa KSh Years Target 1 Short Term Energy Savings ......................... 1. Carry out radiation and steam leakage test. 2. Adjust fuel-air ratio. 3. Modify o i l burner t o give modulating action. 4. Fit windbox pressure manometer (draft gauge) and stack thermometer. 5. Measure inlet humidity to dryers. If too high inlets must be ducted to new source. 6. Monitor FBD operating parameters t o improve tuning. 7. Control withering times by use of electronic hygrometric recorder. 8.Install kYh reter for wi ther ing house. 9. Train staff in energy moni t or i ng and efficiency optimization. Plant : Chinga Tea Factory Page 2 of 2 Project Description Energy Cost Capital Payback Reference Savings Saving Cost Time Chapter 6JIa KShla KSh Years Target 2 Long Term Energy Savings 1. Retrofit Perkins boiler uith cyclonic combustor firing particle size vood t o give a dual fuel facility. (90% FuelvoodlBiomass: 10% RF0) ni 1 2. Instal 1 vood preparation and storage equipment compatible with the cyclonic combustor retrofit. 3. Install steam enginelgenerator t o supply electric power to nil 59 400 6.8 4.0 withering air fans. ENERGY AUDIT REPORT E x e c u t i v e Sun~rnary GATHUTHI TEA FACTORY COMPANY L I M I T E D NYERI DISTRICT 1.O EXECUTIVE SUMMARY Gathuthi t e a factory, commissioned ' i n 1977 has been i n production f o r 8 years. I t s o r i g i n a l design, using wood f u e l f o r a i r heating, was based on requirements f o r q u a l i t y production and close c o n t r o l o f process operations, without much a t t e n t i o n t o energy e f f i c i e n c y . However a recent r e t r o f i t conversion o f the ECD d r y e r ' s a i r heaters from d i r e c t f i r e d a i r heaters t o steam heating and the simultaneous i n s t a l l a t i o n o f a new wood- f i r e d b o i l e r are constructive steps i n managing the energy system. Audit data and t h e f a c t o r y ' s p l a n t configuration a t t h e time o f t h e a u d i t on 22 September 1985 are summarised i n Appendix A - Energy Audit Sheet 1985 and Appendix B - Energy Survey Questionnaire. The estimates f o r energy saving opportunities are based on actual measurements or engi neeri ng-economic judgement f o l lowing t h e s i t e v i s i t s . Cost and savings are approximate and additional engineering and economic f e a s i b i l i t y investigation, p a r t i c u l a r l y t o take account o f continuing v a r i a t i o n s i n energy costs, wi 11 be necessary before proceeding w i t h any o f the p r o j e c t s i d e n t i f i e d . Indeed it should be observed t h a t since t h e time o f t h e 1985 audit, i n t e r n a t i o n a l f u e l o i l p r i c e s have f a l l e n dramatically, while t h e economic and market prices o f both e l e c t r i c i t y and fuelwood have risen. 1.1 Present Energy U t i 1isation The FY 1985 energy consumption, u t i1is a t i on and t a r g e t energy i n t e n s i t i e s (TI and T2) for t h e Gathuthi Tea Factory i n t h e Nyeri D i s t r i c t are summarised i n Table 1.l. The percentage cost and consumption o f the various energy forms are shown p i c t o r i a l l y i n Figure 1.1. Wood and e l e c t r i c i t y account for 49.1% and 50.6% r e s p e c t i v e l y o f a11 energy costs reported. The recommendations are aimed a t reducing these costs. The s p e c i f i c energy consumption for FY 1985 was 24.6 GJ/tMT which i s high by t e a i n d u s t r y standards. The achievable t a r g e t s f o r s p e c i f i c energy f o r t h i s f a c t o r y are assessed as 21 -1 GJ/tMT (Target 1) and 16.1 GJ/tMT (Target 2 ) . P o s i t i v e and determined e f f o r t s are needed t o reverse t h e r i s i n g t r e n d i n energy costs which are adversely a f f e c t i n g t h e r e t u r n t o growers i n t h i s d i s t r i c t . TABLE 1. 1 - OVERALL ENERGY USAGE AND COST REF'ORT CFY 1'3855 ........................................................... Fa11t or y : Gathuttii Tea Fa11tory Conrpany L iriiited D i s t r i c t : Nyeri A1t itude : l888n.1 Nurtritial Capacity : 15(:)(:)tMT Heater : Steam Fuel : Wol~ld Energy I1:onsumpticln: E l ' e c t r i ~ z i t y D i e s e l O i l IIDO:) I::L 3.743 G J 142 I::1:::Stl '74.3 & Energy I t i t e n s it y : Wither irig I;J/tMT (1) 152 . Green Leaf F'rl ~ ~ c e srigi s GJ/tMT (I.57 Drying GJ/tMT 22-42 Tlzltal GJ/tNT 24.61 Slzlurce Etiergy I t l t e t i s i t y : E l e c t r i c i t y GJ/tMT 1.76 Wt>od GJ/tMT .731 .-..:a L i . D i e s e l O i 1 GJ/tNT C) 1 TI:I~a1 EiJ/tNT 24.0 Etiergy I n t e n s i t y Targets : Tar g e t 1 GJ/tMT 21-13 Target 2 GJ/tNT 16. 1 1 F'mtetitia1 Etiergy Savirigs : Tar get 1 ac ti ieved GJ/tMT 3.47 Tar get 2 al-ti ieved GJ/tMT 8.50 Etiergy C:msts : Annual Etier gy I~IIIS~ Speci f i c Energy C1:1st F'-:ltetitial I1:c~tSavings : Tar get 1 ac ti ieved KSh/ kgMT (I. lo Tar get 2 ac 11ieved KSti/ kgMT Iritpractical 1.2 Target 1 - Short Term Energy Savings By adopting a vigorous energy management programme and imp1ementing the short term recommendations which, i n general , require m i nirnur~iinvestment levels, a Target 1 energy i n t e n s i t y o f 21.1 GJ/tMT could be achieved. Plant energy consumption a t current production l e v e l s would be reduced by 4410 GJ/a or 14% o f present consumption, a saving o f 124 000 KSh/a, o r 13% o f 1985 energy costs, as su~mnarised i n Tab1e 1.2. The increased green l e a f payment t o growers i s expected t o be i n the order o f 0.02 KSh/kg green l e a f (equivalent t o 0.1 KSh/kgMT). TABLE 1.2 -TARGET 1-SHORT TERH EWERGY SAVINGS ................................................ Factory : Gathuthi Tea Factory 19 JAN 1986 Energy Form Actual Target Energy Energy Actual Target Cost Cost Investment Paybact Usage Usage Savings Savings Cost Cost Saving Saving CJItHT GJItHT GJItHT X kKShla kKShIa kKSh1a Z kKSh/a Years --------------.-------------------------------------------------------------------------------------------- E l e c t r i c i t y Generatr d Purchased Fuel O i l Fuel Wood Oiesel O i 1 Total 24.60 21.13 3,47 14 956 832 124 13 120 1.0 .......................................................................................................... 1.3 Target 2 - Long Term Energy Savings By i~nplementing t h e long term recommendations which r e q u i r e some c a p i t a l investment, and subject t o f u r t h e r more d e t a i l e d evaluation o f e ~ g i n e e r i n g and economic f e a s i b i l i t y it i s estimated t h a t a Target 2 energy i n t e n s i t y o f 16.1 GJItMT could be achieved. However, the excessive payback periods make t h e irnplementation o f any of these long term energy savings u n a t t r a c t i v e a t t h i s time. TABLE 1.3 - TARGET 2 - LON6 TERH ENERGY SAVINGS Factory : Gathuthi Tea Factory 19 JAN 1986 Ener.gy Form Actual Target Energy Energy Actual' Target Cost Cost Investment Payback Usage Usage Savings Savings Cost Cost Saving Saving GJItHT 6JItHT GJltHT 1 kKShIa kKShIa kKSh1a X kKShIa Years ----------------------------------------------------------------------------------------------- ---me------- E l e c t r i c i t y Generated Purchased 1.50* 1.50 Ni1 N i1 409 367* 42 10 400 9.5 Fuel O i l N i l N i l Fuel Wood 19.52" 14.50 5.02 26 399 358* 41 10 1445 35.2 Diesel O i l 0.11 0.11 Ni1 Ni1 24 24 Ni1 Ni1 Ni 1 Total 21.13* 16.11 5.02 24 832 749* 83 10 1845 22.2 ----------------------------------------------------------------------------------------------------------- * A f t e r T I savings have been achieved. 1.4 Reco~nnendedProjects t o achieve Target Energy Savings Table 1.4 summarises the projects i d e n t i f i e d t o achieve the targeted energy savings a t Gathuthi Ltd. TABLE 1.4 - RECOMENDATIOllS Plant : Gathuthi Tea factory 01-Jan Page 1 of 2 Project Description Energy Cost Capital Payback Savings Saving Cost Time 6Jia KShla KSh Years Target 1 Short Term Energy Savings ------------------------- 1. Carry out radiation and steam leakage test. I 2. Adjust fuel-air ratio. 3. Reduce size o f wood b i l l e t s 4. I n s t a l l auto temp control valve at each steam radiator for the ECD dryers 5. Measure i n l e t humidity t o dryers. I f too high i n l e t s must be ducted t o new source. 6. Monitor FBD operating parameters t o improve 4410 124000 120000 1.0 tuning. 7. I n s t a l l outIet flue gas temp indicator on boiler. 8. Control withering times by use of electronic hygrometric recorder. 9.Install kUh meter for withering house. 10.ldg sides of driers t o reduce heat losses. 11.Train staff i n energy monitoring and efficiency optimization. TABLE 1.4 - RECOflHENDATIONS ........................... P!ant: GathuthiTeaFactory 11-Sep Page 2 of 2 Project Description Energy Cost Capital Payback Reference Savings Saving Cost Time Chapter 6J/a KShfa KSh Years Target ? Long Term Energy Savings ........................ 1 I. Retrofit Danks boiler vith cyclonic combustor firing particle s i r e mood. 6376 101000 1445000 14.3 7.0 2. Install wood preparation and storage equipment compatible with the cyclonic combustor retrofit. 3. Install steam engine / Nil 42000 400000 9.5 4.0 generator for withering air fans. % At fuelwood price of 122 KShIcu. m i2?6KSh/tonnel ................................................................................ ENERGY AUDIT REPORT Executive Sun~mary GITHONGO TEA FACTORY COMPANY LIMITED MERU DISTRICT 1.O EXECUTIVE SUMMARY Githongo t e a factory, cor~imissioned -in 1976 has been i n production f o r 9 years. I t s design, using wood f u e l f o r r a i s i n g steam f o r a i r heating, i s based on requirements f o r q u a l i t y production and close c o n t r o l o f process operations, without much a t t e n t i o n t o energy e f f i c i e n c y . Audit data and t h e f a c t o r y ' s p l a n t configuration a t the time o f t h e a u d i t on 21 September 1985 are summarised i n Appendix A -Energy Audit Sheet 1985 and Appendix B - Energy Survey Questionnaire. The estimates f o r energy saving opportunities are based on actual measurements or engi neering-economic judgement f o l l owing t h e s i t e v i s i t s . Cost and savings are approximate and additional engineering and economic f e a s i b i l i t y investigation, p a r t i c u l a r l y t o take account o f continuing v a r i a t i o n s i n energy costs, w i l l be necessary before proceeding w i t h any o f t h e p r o j e c t s i d e n t i f i e d . Indeed it should be observed t h a t since t h e time o f t h e 1985 audit, i n t e r n a t i o n a l f u e l o i l prices have f a l l e n dramatically, while t h e economic and market prices o f both e l e c t r i c i t y and fuelwood have risen. 1.1 Present Enerav U t i l i s a t i o n The FY 1985 energy consumption, u t i l i s a t i o n and t a r g e t energy i n t e n s i t i e s (TI and T2) f o r t h e Githongo Tea Factory i n t h e Meru D i s t r i c t are summarised i n Table 1.1. The percentage cost and consumption o f t h e various energy forms are shown p i c t o r i a l l y i n Figure 1.1. Wood and e l e c t r i c i t y account f o r 56% and 44% respectively o f a l l energy costs reported. The recommendations are aimed a t reducing these costs. The s p e c i f i c energy consumption f o r FY 1985 was 51 -54 GJ/tMT which i s exceptionally high by t e a i n d u s t r y standards. The achievable t a r g e t s f o r s p e c i f i c energy f o r t h i s f a c t o r y are assessed as 29.87 GJ/tMT (Target 1 ) and 19.23 GJ/tMT (Target 2 ) . P o s i t i v e and determined e f f o r t s are needed t o a r r e s t and reverse t h e r i s i n g energy costs which are adversely a f f e c t i n g t h e r e t u r n t o growers i n t h i s d i s t r i c t . TABLE 1.1 - OVERALL ENERGY USAGE AND COST REPORT ( F Y 19855 ----------------------------------------------------------- Fal:t~=~r y G i t h c ~ n g ~T: ~e a F a c t l ~ l r yil:l=tmpatiy Linli t e d D i s t r i ~ ~ t : Mer I-\ A l t i t u d c .-,,= - - -a(-) (-)ri~(:82(:)()'t f :! Nl:lr<~itial C a p a c i t y : la(:i(:)tMT H e a t er : Steari~ F u e l : W11~od . E n e r g y 1,l:lnsurnp.t i o m : E l e c t r i c i t y MWh 13J kKSI1 E n e r g y I n t e n s i t y : W i t t i e r i rlg GJ/tMT 3-62 Gi- e e n L e a f F'r ol~essig n G J / t M T (3. E3 Dr y i 1.19 G J / t MT 45.28 T o t a l I;J/tMT 51.54 S ~ l ~ r r l =Een e r g y I n t e n s i t y : E l e c t r i l ~ i t y GJ/tMT 1 '33 W t> #:ad li'J/tMT 4'3 6(1) .. T ~ lat1 G J / t MT 5 1 . 5 4 E n e r g y I n t e n s i t y T a r g e t s : T a r g e t 1 l:J,/tMT 2.3 87 T a r g e t 2 GJ/tMT 1'3.23 F l ~ l t e nit a 1 E n e r g y S a v i n g s : T a r g e t 1 a,:ti i e v e d G J i t M T 21.67 T a r g e t 2 .G4 a11 t-1i evi-d I3J/t MT 1(:I Er.lergy C:I:IS~; .s : Atir.,ccal E n e r g y iI:~r~st kKSh 1138 S p e ~ :i f i . 1: Erler g y 11:os.t KSti/\::gMT 1 (:)(I) F'ctt e n t i a1 C : 8 s s t S a v i rigs : T a r get 1 a c ti i e v e d t::'.St~1::gMT / (1) 26 . T a r g e t 2 a11 e v e dt.1 L KS1.i /kgMT (1.21 1.2 Target 1 - Short Terrn Energy Savings By adopti ng a vigorous energy management programme and irnple~nenting t h e short term recomlnendations which, in general, requi r e m i niinurn investment l e v e l s, a Target 1 energy i n t e n s i t y of 29.87 GJ/tMT could be achieved. Plant energy consuriiption a t c u r r e n t production l e v e l s would be reduced by 24 736 GJ/a o r 42% o f present consumption, a saving o f 292 000 KSh/a, o r 26% o f 1985 energy costs, as su~nmarisedi n Table 1.2. The increased green l e a f payment t o growers i s expected t o be i n t h e order o f 0.06 KSh/kg green l e a f (equivalent t o 0.26 KSh/kgMT. TABLE 1.2 - TARGET 1 - SHORT TERH ENERGY SAVINGS ................................................... Factory: Githongo Tea factory Energy Actual Target Energy Energy Actual Target Cost Cost Investment Payback Form Usage Usage Savings Savings Costs Cost Savings Savings (GJ/tHT) iGJJtHT1 (GJItHT1 (1) (KKShl (KKSh1 (KKSh) (11 (KKSh) (Years) ------------------------------------------------------------------------------------------------------- E l e c t r i i i t y Generated Ni1 Ni1 Ni1 Ni1 M i 1 Ni1 Ni1 N i l - - Purchased 1.33 1.87 0.06 3.0 504 431 13 3.0 Fuel O i l N i 1 Ni1 Ni1 Hi1 Ni1 Ni1 Ni1 N i l - - f u e l Mood 49.60 28.00 21.60 44.0 634 355 279 44.0 Diesel O i l Ni 1 Ni1 Ni1 Ni1 N i l Ni1 Ni1 N i l - - TOTALS 51.53 29.87 21.66 42.0 1131 846 292 26.0 50 0.2 ------------------------------------------------------------------------------------------------------- Target 2 - Long Term Energy Savings By i~iiple~nenti ng the long terrii recommendations which, in general require solne capital investment, and subject to further Inore detailed evaluation of engineering and econoinic feasibility i t i s estimated that a Target 2 energy intensity of 19.23 GJItlvlT could be achieved. Plant energy consumption at current production levels would be reduced t o 21 961 GJIa or 63%below present plant consumption, yielding a further saving of 242 000 KShIa or 29% of 1985 energy costs, as summarised in Table 1.3. The effect of achieving the Target 2 levels i s expected to further increase the green leaf payment to growers by 0.05 KShIkg green leaf (equivalent t o 0.21 KShIkgMT) . TABLE 1.3 - TARGET ? - LOM6 TERN ENERGY SAVINGS ................................................... Factory: Githongo Tea factory ------------------------------------------------------------------------------------------------------- Energy Aitual Target Energy Energy Actual Target Cost Cost Investment Paybaik Fora Usage Usige Savings Savings Costs Cost Savings Savings (6JItfiT) (GJItMT) (GJ!tYT) (1) (KKs'ii) !KKSh) (KKSh) ( Z ) (YKS11) (Years) ------------------------------------------------------------------------------------------------------- E l e c t r i c i t y Generated Nil 0.56 -0.56 - Ni 1 385 106 400 3.8 c,.:, ii Purchased 1.87 1.31 6 30.0 4'31 Fuel Oil Ni 1 Ni 1 Mi 1 Ni 1 Ni 1 Ni 1 Ni 1 Nil - - Fuel Mood 20.!)0 17.36 10.64 38.0 355 219 136 38.0 1644 12.1 Diesel Oil Hi 1 Hi 1 Ni 1 Ni 1 Ni 1 Ni 1 Ni 1 Nil - ....................................................................................................... TOTALS 29.87 19.23 10.64 36.0 646 604 4 4 i 4 ~ 29.0 1649 6.0 ....................................................................................................... 1.4 Recommended Projects t o Achieve Target Energy Savings Table 1- 4 su~nmarises the projects i d e n t i f i e d t o achieve the targeted energy savings a t Githongo. Reference i s given t o the report chapter i n which a more detailed discussion o f the proposal may be located. A1 1 estimates must be regarded as very p r e l iminary. Should it be decided t o proceed a f u l l engineering design and estimate i s recor~imendedbefore funds are committed. TABLE 1.4 - RECOHHENDATIONS factory: Ci thongo Tea factory TARGET 1: Short Tern Energy Savings Energy Cost Capital Payback Referenie Frojeit Description Savings Savings Cost Time Chapter (iiJ/a) (KKSh/a) (KKSh) (Yearsj i 1. Reduce size of vood b i l l e t s being fired I 2. Adjust furl-air ratio 3. Install boiler outlet gas temperature indicator 4. Lag fD ducting 5. Install auto terp iontrol at each steam radiator 6. Reduce air flow rates at dryers t o 20 t/h 7. Investigate and if necessary necessary replace wi thering fan impellers 8. Control withering times by use o i electronic hygrometric recorder 9. Install KWh meter for withering house 10. Train staff in energy monitoring and efficiency optirisat ion TABLE 1.4 - RECOHHENDATIONS (CONTI Factory: Githongo Tea Factory TARGET 2: Long Tern Energy Savings Energy Cost Capital Payback Reference Project Description Savings Savings Cost Time ~ h $ t e r (GJla) (KKShIa) (KKSh) (Years) I 1. Retrofit Loio boiler v i t h cyclonic combustor 2. I n s t a l l wood pulverisationl drying equipment and storage b i n t o s u i t Item 1 3. I n s t a l l steau engine/ generator for withering a i r fans t Assumes fuelwood orice constant at 86 KSh/d ENERGY AUDIT REPORT E x e c u t i v e Surrmary IKUMBI TEA FACTORY COMPANY L I M I T E D MURANGA D I S T R I C T 1.O EXECUTIVE SUMMARY Ikumbi t e a factory, commissioned i n 1971 before t h e days o f high cost energy, has been i n production f o r 14 years. I t s design, using o i l f u e l f o r r a i s i n g steam f o r a i r heating, i s based on requirements f o r q u a l i t y production and close c o n t r o l o f process operations, understandably without much a t t e n t i o n t o energy e f f i c i e n c y . Audit data and t h e f a c t o r y ' s p l a n t configuration a t t h e time of t h e a u d i t on 20 September 1985 are summarised i n Appendix A - Energy Audit Sheet 1985 and Appendix B - Energy Survey Questionnaire. The estimates f o r energy saving opportunities are based on actual measurements o r engineering-economic judgement f o l l o w i q g t h e s i t e v i s i t s . Cost and savings are approximate and additional engineering and economic f e a s i b i 1ity investigation, p a r t i c u l a r l y t o take account o f continuing v a r i a t i o n s i n energy costs, w i l l be necessary before proceeding w i t h any o f t h e p r o j e c t s i d e n t i f i e d . Indeed it should be observed t h a t since the time o f t h e 1985 audit, i n t e r n a t i o n a l f u e l o i l prices have f a l l e n dramatically, w h i l e t h e economic and market prices o f both e l e c t r i c i t y and fuelwood have risen. 1.1 Present Energy U t i 1is a t i on The FY 1985 energy consumption, u t i l i s a t i o n and t a r g e t energy i n t e n s i t i e s (TI and T2) f o r t h e Ikumbi Tea Factory i n t h e Muranga D i s t r i c t are summarised i n Table 1.1. The percentage cost and consumption of t h e various energy forms are shown p i c t o r i a l l y i n Figure 1.1. Fuel o i 1 and e l e c t r i c i t y account for 82.0% and 17.2% r e s p e c t i v e l y o f a11 energy costs reported. The recommendations are aimed a t reduci ng these costs. The s p e c i f i c energy consumption f o r FY 1985 was 21.47 GJ/tMT which i s high by t e a i n d u s t r y standards. The achievable t a r g e t s f o r s p e c i f i c energy f o r t h i s factory are assessed as 18.15 GJ/tMT (Target 1) and t h e same f o r Target 2. P o s i t i v e and deter~ninede f f o r t s are needed t o a r r e s t and reverse t h e r i s i n g energy costs which are adversely a f f e c t i n g t h e r e t u r n t o growers i n t h i s d i s t r i c t . TABLE 1.1 - OVERALL ENERGY USAGE AND COST REFOFlT (:FY 1985) ........................................................... Falz t cur y I k:uritbi Tea F a l ~ t l ~ ~I,~:~ritparly Li ~ r y t t ied - D i s t r i c t : Muranga A l t i t u d e 1980rit Nl>ritinal C a p a l ~ i t y: 12!:)(:) tMT H e a t e r : Steari~ Fuel : O i l Energy IKl:ltis~ri~ption: E l e c t r i c i t y MWtl 13J I:: tl 1::: s Fuel O i l (:t;:FO:) Diesel O i l (1 IEO! Tot a 1 (1 ex,: 1u d i tig 1;LN:) Energy I t i t e n s i t y : W i t h e r i ng Green Leaf Fr lzlcessi tig D r y i rig T17ta 1 S o u r c e Energy I n t e n s i t y : E l e l - t r i c i t y Fuel O i 1 D i e s e l O i l T ~ lat1 Energy I n t e n s i t y T a r g e t s : T a r g e t 1 'Target 2 Fcttent i al Energy S a v i n g s : Tar g e t 1 3.3.2 at: ti i eved T a r g e t 2 a c h i e v e d N i 1 CAFTER T1 Energy 11:l:lsts : Annual Ener gy C:l=lst Spclri f1.c Eriergy C o s t F~::lte r it i a 1 Cost S a v i n g s : Tar g e t 1 at: h i r-veil t:::Sti/ C::gMT Tar g t:.t 2 ach i e v e d 1:::Stl I.:: /' 9MT 1.2 Target 1 - Short Term Energy Savings By adopting a vigorous energy management programme and implementing the short term recom~nendations which, in general , require ,ninirnuin i nvestment levels, a Target 1 energy intensity of 18.15 GJ/tMT could be achieved. Plant energy consumption at current production levels would be reduced by 8000 GJ/a or 15%of present consumption, a saving of 646 332 KSh/a, or 17% of 1985 energy costs, as summarised in Table 1.2. The increased green leaf payment to growers i s expected to be in the order of 0.06 KSh/kg green leaf (equivalent t o 0.27 KSh/kgMT). TABLE 1.2 -TARGET 1- SHORT TERH ENERGY SAVINGS ................................................ Factory : Ikumbi Tea Factory 19 JAN 1986 Energy Form Actual Target Energy Energy Actual Target Cost Cost Investment Payback Usage Usage Savings Savings Cost Cost Saving Saving GJItHT GJltHT GJ/tHT Z kKSh/a kKSh1a kKSh/a X kKSh/a Years E l e c t r i c i t y Generated Purchased 1.27 1.17 0.10 6 650 603 47 7 50 0.06 Fuel O i l 20.12 16.90 3.22 16 3098 2499 599 19 Fuel Hood Ni1 Ni1 Diesel O i l 0.08 0.08 Ni1 N i l 32 32 N i l Ni1 Total 21.47 16.15 3.32 15 3780 3134 646 17 50 0.08 .......................................................................................................... 1.3 Target 2 - Long Term Energy Savings By imp1ernenti ng t h e 1ong term recom~~lendationswhich requires some c a p i t a l investment, and subject t o f u r t h e r more detailed evaluation o f engineering and economic f e a s i b i l i t y it i s estimated that a Target 2 energy cost of 0.79 KSh/kgMT could be achieved. P l ant energy consurr~ption a t current production levels would be maintained a t 18.15 GJ/a but w i t h a f u r t h e r saving of 1 222 000 KSh/a o r 39% o f 1985 energy costs, as surnrnarised i n Table 1.3. The e f f e c t o f achieving t h e Target 2 levels i s expected t o f u r t h e r increase the green l e a f payment t o growers by 0.11 KSh/kg green leaf (equivalent t o 0.51 KSh/kgMT) . TABLE 1.3 - TARGET 2 - LON6 TERM ENERGY SAVINGS ................................................ factory : Ikurbi Tea Factory 19 JAN 1986 Energy form Actual Target Energy Energy Actual Target Cost Cost Investrent Payback Usage Usage Savings Savings Cost Cost Saving Saving GJItMT GJItMT GJItMT I kKSh1a kKSh1a kKSh1a X kKShla Years E l e c t r i c i t y 1 Generated N i l 0.50 -0.50 79 13 400 5.1 Purchased 1.17 0.67 0.50 43 603 524 fuel O i l 16.9 8.45 8.45 50 2499 926 1573 63 1200 1.0 f u e l Wood N i l 8.45 -8.45 M i 1 130 -430 Diesel O i 1 0.08 0.08 N i l Ni1 32 32 Ni1 M i 1 Total 18.15 18.15 N i 1 N i l 3134 1912 1222 39 1600 1.3 .......................................................................................................... 1.4 Recommended Projects t o achieve Target Energy Savings Table 1.4 summarises the projects identified t o achieve the targeted energy savings a t Ikumbi Ltd. TABLE 1.4 - R E C O M W D A T I O N S ........................... Plant : Ikumbi Tea Factory Jan-86 Page 1 o f 2 Project Description Energy Cost Capital Payback Savings Saving Cost Time 6Jla KShla KSh Years Target 1 Short Term Energy Savings ......................... 1. Carry out radiation and \ steam leakage test. 2. Adjust fuel-air ratio. 3. Stop oil leaks at burner. I 4. Replace burner nozzles. 5. Instal 1 auto temperature control valve at each steam radiator. 6. Log absolute huaidity at drier inlets and modify t o reduce 'Maji Abiria'. 7. Log fluidised bed dryer operating parameters and tune for efficient operation 0. Install outlet flue gas temperature indicator on each air heater. 9. Control withering times by use of electronic hygrometric recorder. 10. Install kYh meter for withering house. 11.Investigate and replace if necessary withering fan impellers. 12.Train staff In energy moni tor ing and efficiency optimization. TABLE 1.4 - RECOHMENDATIONS Plant : Ikumbi Tea Factory Jan-06 Page 2 of 2 ................................................................................ Project Description Energy Cost Capital Payback Reference Savings Saving Cost Time Chapter 6Jla KShla KSh Years t t Target 2 Long Term Energy Savings 1. Install steam engine1 Nil 79163 400000 5.1 4.0 generator for withering fans. 2. Install duel-fuel facility Nil 1142920 1200000 1.0 10.0 at Maestro 05 boiler using cyclonic combuster for pulver ised fuel woodlbiomass waste. $ After 11 savings have been achieved. ................................................................................ ENERGY A U D I T REPORT E x e c u t i ve Suniniary I R I A I N I TEA FACTORY COMPANY L I M I T E D NYERI D I S T R I C T 1.O EXECUTIVE SUMMARY I r i a i n i t e a factory, commissioned i n 1981, has been i n production f o r 4 years. I t s design, using o i l f u e l f o r a i r heating, i s based on requirements f o r qua1it y production and c l ose control o f process operations, understandably without much attention t o energy e f f i c i e n c y . The factory i s now adversely affected by the high cost o f RFO. Audit data and the f a c t o r y ' s plant configuration a t the time o f the a u d i t on 23 September 1985 and 17 October 1985 are summari sed i n Appendix A - Energy Audit Sheet 1985 and Appendix B - Energy Survey Questionnaire. The estimates f o r energy saving opportunities are based on actual measurements o r engi neeri ng-economic judgement f o l 1owing the s i t e v i s i t s . Cost and savings are approximate and additional engineering and economic f e a s i b i l i t y investigation, p a r t i c u l a r l y t o take account of continuing variations i n energy costs, wi 11 be necessary before proceeding with any o f the projects identified. Indeed it should be observed t h a t since the time of the 1985 audit, international fuel o i l prices have f a l l e n dramatically, while t h e economic and market prices o f both e l e c t r i c i t y and fuelwood have risen. 1.1 Present Energy U t i 1isation The FY 1985 energy consumption, u t i 1isation and t a r g e t energy i n t e n s i t i e s (TI and T2) f o r the I r i a i n i Tea Factory i n the Nyeri D i s t r i c t are summari sed i n Tab1e 1.1 . The percentage cost and consumpti on o f the various energy forms are shown p ic t o r i a1l y i n Figure 1.I. Fuel o i 1 and e l e c t r i c i t y account f o r 77% and 22% respectively of a11 energy costs reported. The recommendations are aimed a t reducing these costs. The specific energy consumption f o r FY 1985 was 29.15 GJ/tMT which i s very high by tea industry standards f o r the a i r heater/tray dryer f a c t o r y configuration. The achievable targets f o r specific energy f o r t h i s f a c t o r y are assessed as 20.14.GJ/tMT (Target 1 and Target 2). Fatti:tl- y I i - i ai t?i T e a F a c t t ~ l r yICa>ri~patiy L i r i ~ ti e d 5 i s t ~ i ~ z . t : Nyeri A 1 .ti . t u d e .-.(-\74 L ril t;y : 1 e!:I r4l:lrtii kial C:apal: i (1) .tMT ~~~t +r : Air Heater F u e l : nil T o t a l F'rl>d~(l:tit:lti t M T ' 15-71 MWI? GJ 1.. 1::'$7 8.. .d 0 r.. L I:I !:: J .-I. 1.:: i:" 5;1 I... - 1::1:::EkI I-' ...I: 1.::: 11/ I::g IY T .-, i.2s. :7 .-., t:,,_,. t.. t1ltl.s.l I_:t:,.s.t . . . S a v i l j q s : - Tav.9 *+; :L at: 1-11 +.+v+d {:::Sh/ I::qMT (3. 7: g <:+ .t; 2 3I: j. e\,/ d - T .. .,. , I ..,,\ l C.1 1:: ..,11 ., C...apq 'T' (2 / !I! ,. 46 _ ..f,, /r. <.__.,...... . . . . . .... , , ,_ -_ ---- .:;I;:.,I r' i . .. , . i , : ! I, , I-., , I . -. T. ., FIGURE 1.1 I-.. ',., !.- ,..-r, !,.., 'j' :. , i '..,i I,, I , .i , , I__ i. I! . , , * LI1t.Q.I - r 1 ' L"& d 1.2 Taraet 1 - Short Term Enerav Savinas By adopti ng a vigorous energy management programme and imp1ementi ng the short .term recommendations which, i n general, require minimum investment levels, a Target 1 energy intensity o f 20.14 GJ/tMT could be achieved. Plant energy consumption a t current production levels would be reduced by 14 155 GJ/a or 31% o f present consumption, a saving o f 1 131 000 KSh/a, o r 31% o f 1985 energy costs, as summarised i n Table 1.2. The increased green l e a f payment t o growers i s expected t o be i n the order o f 0.17 KSh/kg green l e a f (equivalent t o 0.72 KSh/kgMT). TABLE !.2 - T M T 1 - SHWT TERPI ENERGY SAVINGS Factot-y I r i a i n i Tea Factory 27-Feb Enerqy Form Enerqy Target Energy Energy Actual Target Cost Cast Investment Payback Usage Usase Savinqs Savings Lost Saving Savins GJ/tMT GJitMT GJ/tt!T % kt;Sh kKSh kKSh X RSh Years E!ectrici ty: Generated n i i n i l n i1 n i l n i l n i1 n i l n i l - - Purchased 2.62 2.07 0.55 21 810 642 168 21 j I 100 0.1 Fuel O i l 26.46 !8.00 8.46 71 .,L 1 2 1849 963 34 1 Fuel Wood n i l n i l n i l n i l n i l n i l n i l n i l - - - - Diesel O i l 0.07 0.07 n i l n i l 19 19 n i1 n i1 Total 29.15 3 . 1 4 9.01 51 3641 3 1 0 1131 31 100 0.1 1.3 Tarqet 2 - Lonq Term Enerav Savinas By implementing the long term recommendations which, i n general, require some c a p i t a l investment, and subject t o further more detailed evaluation o f engineering and economic f e a s i b i l i t y it i s estimated t h a t a Target 2 energy cost o f 1.12 KSh/kgMT could be achieved. Plant energy consumption a t current production levels would remain the same but a f u r t h e r saving o f 752 000 KSh/a o r 21% o f 1985 energy costs would be achieved, as summarised i n Table 1.3. The e f f e c t o f achieving the Target 2 levels i s expected t o f u r t h e r increase the green l e a f payment t o growers by 0.11 KSh/kg green l e a f (equivalent t o 0.48 KSh/kgMT) . T A U 1.3 - TARGET 2 - LONG TEFiH UEFtGY SAVINGS Factory Iriaini Tea Factory 27-Feb Energy Fotw Energy Tarset Enetvy Energy Actual Target Cost Cost I n v e s t m t Payback Usagei 1) Usaqe Savings Savings Lost i1) Saving Saving GJitHT GJitlT GJ/tMT i. U;Sh K S h KKSh 2 U S h Years .................................................................... Electricity: Generated nii ni 1 nil nil ni 1 ni 1 nil nil Purchased 2.03 2.07 nil nil 642 642 nil nil Fuel Oil 18.iui 7.20 10.9 40 1849 619 1230 67 1 1 1192 1.6 Fuel Wood nil 10.90 -10.8 - nil 470 -479 - > Diesel Oil 0.i2 0.07 ni 1 nil 19 19 nil nil ___-________-_----_----------------------~--_-- -- Total 2Q.14 3 . 1 4 ni1 nil 2510 1758 752 30 1192 1.6 .......................................................... ( t i After Ti savings have been achieved 1.4 Recommended Project to Achieve Target Energy Savings Table 1.4 summarises the projects identified to achieve the targeted energy savings at Iriaini. Reference i s given to the report chapter in which a more detai 1ed discussion of the proposal may be located. All estimates must be regarded as very preliminary. Should i t be decided to proceed a full engineering design and estimate i s recommended before funds are committed. TABLE i .4 - RECONHENDATIONS Faitory: I r i a i n i Tea Faitory 2 ~ - eb-efi f Energy Cost Capi t a i Payback Reference Project Description S a v i q r Savings Cost Tine Chapter iGJla! IbKShia! !kKSbi !Years! ................................................................................................ TARGET ! Short Tera Energy Saving.: 1. I n s t a l l !D Fan and flue ;a5 o u t l e t te31perature indi::3tor on eaih a i r heater 2, i n s t a l l furnace suction pressure i n d i c a t o r s a t each air-heater 3. Adjust fuei-air r a t i o 4. Replac? burner nozzles 5 , i n s t a l l rodulating automatic control of o i l buraers 6. I n v e s t i g ~ t eand i f neiezsary necessary r e p l a i e uithe::a~ fan iopel!ers 7. Control vithering ti!$es by us* of e l e i t r c n i i !:ygrc:~etr i!: recorder 8. Instal! hUh neter far withering house 9. Tra:n s t a f f ~n energy nonitswing and c f f i i i e n c y optibisation Factory: I r i a i n i Tea Faito:? 2p-yPh-;~ ................................................................................................ Enersy Cost Lpi ta! Payhaik Eefer@nce Pr~ljer: 3e~cr:ptitla 5avit:gs Savinqr C55t Tine Cha7ter !6J/;! (kK:h/a) !G:!(:)m Nominal C a p a c i t y : 1800 tMT H e a t c r : Air Heater Fuel : O i l Etierqy Cotisumptiati: E l e c t r i c i t y Fuel O i l CEFO:) kL 5 1 6 CiJ 2(:)79 1 kKSh 1366 KSh /G J 65.7 Diesel O i l CIDO) Energy I n t e n s i t y : .-. W i t h e r i ng GJ/tMT 9.:. L. L)L Gr e r n Leaf P r u c e s s i rig BJ/tMT (j.2'3 Dr y i rig GJ/tMT 16. 00 T o t a l GJ/tMT 18.61 S o u r c e Etiergy I t i t e n s i t y : E l e t ~ t r i c i t y GJ/tMT 1. 0 Fuel O i l GJ/tMT 16.96 D i e s e l O i l GJ/tMT 0. 0 6 T o t a l GJ/tMT 18.62 Etiergy I n t e n s i t y T a r g e t s : T a r g e t 1 GJ/ tMT 18.17 T a r g e t 2 GJ/tMT 18. 17 P o t e n t i a 1 Energy S a v i rig5 : T a r g e t 1 a c h i cved G J / t MT 0.44 T a r g e t 2 a i h i eved GJ/tMT N i 1 Energy C o s t s : Annual Energy Cost kKSh 2078 Spec i f i c Etiergy ~ Z o s t KSh/ kgMT 1.9 F'otetit i a1 Cost Savir-rgs : T a r g e t 1 a c h i e v e d KSh/ kgMT 0.(3% T a r g e t 2 a c h i eved KSt-r/kgMT 0. 1 5 Ep.,.jE (-4"c; p.,.j5I..-.! M ,P I I::::I pV.j -r ..- (; I:::I KAIAW TEA FACTCIFC'c [F'c 1!3-::1 E ,jE '.. {-.. {-. ?;T:i;; ,. r-1 I-.. F..AIAW TEA F aTUWi' (F'i' 13i5::I 1.2 Tarqet 1 - Short Term Enerqy Savinqs By adopti ng a vigorous energy management programme and imp1ementing the short term recommendations which, i n general, require m i ni~numinvestment levels, a Target 1 energy i n t e n s i t y o f 18.17 GJ/tMT could be achieved. Plant energy consumption a t current production levels would be reduced by 552 GJ/a or 2% o f present consumption, a saving o f 57 000 KSh/a, or 3% o f 1985 energy costs, as summarised i n Table 1.2. The increased green l e a f payment t o growers i s expected t o be i n the order of 0.01 KSh/kg green l e a f (equivalent t o 0.05 KSh/kgMT). TABLE 1.2 - TARGET 1 - SHORT TERH EWER6Y SAVINGS ................................................ Factory : Kambaa Tea Factory 19 JAN 1 9 1 Energy Form Actual Target Energy Energy Actual Target Cost Cwt Investment Payback Usage Usage Savings Savings Cost Cost Saving Saving GJItHT GJItHT GJItHT X kKShla kKShla kKSh1a X kKShla Years Electricity Generated Purchased 1.60 1.51 0.09 6 700 678 22 3 Fuel O i l 16.96 16.60 0.36 2 1366 1331 35 3 28 0.19 Fuel Wood Hi1 Diesel O i l 0.06 0.06 Hi1 Hi1 12 12 N i l Ni1 Total 18.62 18.17 0.45 2 2078 2021 57 3 28 0.19 .......................................................................................................... 1.3 Target 2 - Long Term Energy Savings By implementi ng the long term recommendations which, i n general, require some c a p i t a l investment, and subject t o f u r t h e r more detailed evaluation o f engineering and economic f e a s i b i l i t y it i s estimated t h a t a Target 2 energy cost o f 1.50 KSh/kgMT could be achieved. Plant energy consumption a t current production levels would be the same a t 22 276 GJ/a but f u e l s u b s t i t u t i o n would y i e l d a f u r t h e r saving o f 178 000 KSh/a o r 9% o f 1985 energy costs, as summarised i n Table 1.3. The e f f e c t o f achieving the Target 2 energy cost level i s expected t o further increase the green l e a f payment t o growers by 0.03 KSh/kg green l e a f (equivalent t o 0.15 KSh/kgMTl. TABLE 1.3 - TARGET 2 -LON6 TERM ENERGY SAVINGS Factory : Karbaa Tea Factory 19 JAN 1986 Energy Forr Actual Target Energy Energy Actual Target Cost Cost Investrent Payback Usage Uiage Savings Savings Cost Cost Saving Saving GJltRT GJItHT GJItRT % kKShIa kKShIa kKShIa Z kKShIa Years ------------............................ .------------------------------------------------------------------- E l e c t r i c i t y Generated Purchased 1.51" 1.51 0.00 0 678" 678 Ni1 Ni1 N i l 1 Fuel O i l 16.60" 9.96 6.64 40 1331" 977 950 5.3 Fuel Wood N i l 6.64 -6.64 Ni1 Ni1 176 -176 354 Diesel O i l 0.06 0.06 N i l N i l 12 12 Ni 1 Ni1 Ni1 Total 18.17" 18.17 Ni1 N i l 2021" 1843 178 9 950 5.3 ........................................................................................................... *Target T1 Savings Achieved 1.4 Recommended Projects t o Achieve Target Energy Savings Table 1.4 summarises the projects i d e n t i f i e d t o achieve the targeted energy savings a t Kambaa. TABLE 1.4 - RECOHlEllDATIOlSS ------------------------- Plant : Kalbaa Tea Factory Jan-86 ................................................................................ Project Description Energy Cost Capital Payback Ref erenct Savings Saving Cost Time Chapter 6Jla KShla KSh Years Target 1 Short Term Energy Savings ......................... I. Install furnace suction pressure indicators at air heaters. 2. Adjust fuel-air ratio. 3. Replace burner nozzles. 4. Install outlet flue gas temperature indicators at air heaters. 5. Install modulating control a t oil burners controlled by drier air inlet temperature. 6. Investigate and replace withering fan impellers. 7. Control withering times by use of electronic hygrometric recorder. 8. Install kYh meter for withering house. 9. Train staff in energy ronitori ng and efficiency optimization. Target 2 Long Term Energy Savings ------------------------ I. Equip dryer station with Nil 178000 950000 5.3 10.0 one (1) cyclonic combustor to provide a partial fuel substitution facility. (60ZRFO - 40ZFuelwood) ENERGY AUDIT REPORT E x e c u t i v e Summary KAIVYENYAINI TEA FACTORY COMPANY L I M I T E D MURANGA D I S T R I C T 1.O EXECUTIVE SUMMARY Kanyenyaini t e a factory, commissioned i n 1974 j u s t as the cost o f fuel o i l rose sharply, has been i n production i n the Muranga d i s t r i c t f o r 11 years. I t s design, using o i l f u e l f o r d i r e c t a i r heating r e s u l t s i n a high l.evel o f energy e f f i c i e n c y but t h e high fuel cost i s substantially reducing t h e r e t u r n t o growers. Audit data and the f a c t o r y ' s plant configuration a t the time o f the audit on 14 October 1985 are summarised i n Appendix A - Energy Audit Sheet 1985 and Appendix B - Energy Survey Questionnaire. The estimates f o r energy saving opportunities are based on actual measurements o r engineering-economic judgement following the s i t e v i s i t s . Cost and savings are approximate and additional engineering and economic f e a s i b i l i t y investigation, p a r t i c u l a r l y t o take account o f continuing variations i n energy costs, w i l l be necessary before proceeding w i t h any o f t h e p r o j e c t s i d e n t i f i e d . Indeed it should be observed t h a t since the time o f t h e 1985 audit, international fuel o i l prices have f a l l e n dramatically, w h i l e t h e economic and market prices o f both e l e c t r i c i t y and fuelwood have risen. 1.1 Present Energy Uti1is a t ion The FY 1985 energy consumption, u t i 1i s a t i o n and t a r g e t energy i n t e n s i t i e s (TI and T2) f o r the Kanyenaini Tea Factory i n t h e Muranga D i s t r i c t are summarised i n Table 1.l. The percentage cost and consumption o f t h e various energy forms are shown p i c t o r i a l ly i n Figure 1.1. Fuel o i 1 and e l e c t r i c i t y account f o r 69% and 30% respectively o f a11 energy costs reported. The recommendations are aimed a t reduciug these costs. The specific energy consumption for FY 1985 was 16.95 GJ/tMT which i s good by t e a industry standards. The achievable targets f o r s p e c i f i c energy f o r t h i s factory are assessed as 16.65 GJ/tMT (Target 1) and 16.65 GJ/tMT (Target 2). The excellent s p e c i f i c energy (RFO only) r e s u l t s achieved i n t h e audit t e s t on No 1 Dryer (ie, 7.7 GJ/tMT) show t h a t t h e effects of operational discontinuities, variable green l e a f deliveries etc, are q u i t e serious. Normally RFO energy f o r withering i s only expected t o add 10% t o the dryer energy i n f u e l requirement. However Kanyenyaini's location i n a depression on t h e side o f a h i l l has raised the question of exfessive "Maji Abiria" and t h i s may be a contributing f a c t o r t o high withering energy requirements. TABLE 1.1 - OVERALL ENERGY USAGE AND COST REF'ORT iFY 13855 ........................................................... F a l r t l s r y : Katiyenyaini T e a F a ~ = t ~ : ~ C:~:~n>patlyL i r i l i t e d r y D i s t r i c t : Mctranga A l t i t u d e 2(1)71n., Nl:~ri~i n a l Capa~:i t y : 13(:)(:) tMT H e a t e r : Air Heater F u e 1 : Oil E n e r g y C:otisuri~p t il:ln : E l e c t r i c i t y F u e l O i l (F:FO:) D i e s e l O i l (:IDO:) kL GJ I:: t::sti E n e r g y I n t e n s i t y : Wi t tier i ng Gv eeti L e a f F'r essing 01: D r y i n g T ~ lat1 S c ~ u r ~ : eE n e r g y I n t e n s i t y : E l e c t r i c i t y GJ/tMT 2.(38 Fctel O i 1 GJ/tMT 14.78 D i e s e l O i l GJ/tMT (1) (:lag . T l > t a l G J / t MT 16.95 E n e r g y I n t e n s i t y T a r g e t s : T a r g e t 1 lGJ/tMT 16. 5 T a r g e t 2 13J/tMT I. 5 F'lz~ti-titial E n e r g y S a v i n g s : T a r g e t 1 ti i e v e d . at: GJ/tMT (3. 3t:) T a r g e t 2 actii e v e d GJ/tMT 0 (:)(j E n e r g y Cost-, : Atitictal E n e r g y IZl:~st I:: 1:::St1 d4d3 .7,3c.- S p e c i f i E n e r g y C:l:lst . I: KSh/ kgMT 1 0 F'lzltent ial I1::vst S a v i n g s : T a r g e t 1 a11 i e v e d ti t:::Sh/ kgMT (3 05 T a r g e t 2 h i e v e d KSh/b:gMT .. a11 0 81 FIGURE 1.1 1.2 Tarqet 1 - Short Terrn Enerav Savinas By i~~rpler~renting the short terrrr recorrurrendations which, i n general, require r i r i nirrrurrr investinent 1eve1s, a Target 1 energy i n t e n s i t y o f 16.65 GJ/tMT could be achieved. Plant energy consur~rptiona t current production levels would be reduced by 630 GJ/a or 2% of present consu~~rption,a saving o f 99 000 KSh/a, or 3% of 1985 energy costs, as surlur~arisedi n Table 1.2. The increased green leaf pay~rlentt o growers i s expected t o be i n the order of 0.01 KSh/kg green leaf (equivalent t o 0.05 KSh/kgMT). TABLE 1.2 - TARGET 1 - SHORT TERH ENERGY SAVINGS Factory : Kanyenyaini Tea factory 19 JdN 1986 Ener,gy Forr Actual Target Energy Energy Actual Target Cost Cost Investrent Payback Usage Usage Savings Savings Cost Cost Saving Saving GJItHT GJItHT GJItHT X kKShIa kKShIa kKShIa X kKShIa Years ......................................................... E l e c t r i c i t y Generated Purchased 2.08 1013 931 82 8 28 0.28 Fuel O i l 14.78 2314 2297 17 1 Ni1 Fuel Wood Ni1 Ni1 Ni1 Ni1 Ni1 Ni1 Diesel O i l 0.09 32 32 N i l Hi1 Mi 1 Total 16.95 16.65 0.30 2 3359 3260 99 3 28 0.28 .......................................................................................................... 1.3 Taraet 2 - Lona Terirr Enerqv Savinqs By i ~ ~ r p l e ~ ~ ~ e ntht ei n glong ter~rrreco~~hr~endationswhich, i n general, require sonre capit a 1 investment, and subject t o f u r t h e r ,nore detailed evaluation o f engineering and econornic f e a s i b i l i t y it i s e s t i ~ ~ ~ a t headt a Target 2 energy i n t e n s i t y o f 16.65 GJ/tMT could be achieved. Plant energy consu~~rptiona t current production levels would re~rrain substanti a1l y constant a t 34 982 GJ/a but a f u r t h e r saving o f 1 480 000 KSh/a or 44% o f FY 1985 energy costs would be achieved by f u e l s u b s t i t u t i o n as su~~lr~~arisedi n Table 1.3. The e f f e c t o f achieving the Target 2 level i s expected t o f u r t h e r increase t h e green l e a f payrnent t o growers by 0.19 KSh/kg green l e a f (equivalent t o 0 -81 KSh/kgMT) . TABLE 1.3 -TARGET 2 - LON6 TERH ENERGY SAVINGS ............................................... Factory : Kanyenyaini Tea Factory 19 JAN 1986 Energy Form Actual Target Energy Energy Actual Target Cost Cost Investment Payback Usage Usage Savings Savings Cost Cost Saving Saving GJ/tHT CJ/tHT CJ/tHT X kKSh/a kKSh/a kKSh/a Z kKSh/a Years ........................................................... E l e c t r i c i t y Generated Purchased 1.88;: 1.88 N i 1 Fuel O i l 14.68* 1.47 13.21 Fuel Wood N i l 13.21 -13.21 Diesel Oi 1 0.09 0.09 Mi 1 Total 16.65 16.65 Ni1 N i l 3260 1780 1480 45 2300 1.6 ........................................................................................................... After T i savings have been achieved. 1.4 Recor~u~rendedProjects t o Achieve Target Energy Savings Table 1.4 s u r ~ ~ ~ses a r~ ~thei projects i d e n t i f i e d t o achieve the targeted energy savi ngs a t Kanyenyain i . TABLE 1.4 - RE-TIN Plant : Kanyenyaini Tea Factory ----- -- Project Description Energy Cost Capital Payback Ref. Savings Savings Cost Time Chapter GJ/a KSh/a KSh Years -- -- -- -- Tatyet 1 Short Term Energy Savings ------------ 1. Install furnace suctian pressure indicators at each a i r heater. 2. Install outlet i l u e gas temperature indicator en each a i r heater. 3. R~placeburner nozzIes. 4. Install auto teyerature control with modulating action. 630 99000 28MN 0.28 11.0 5. Investigate & replace withering fan impellers. 6. Ccntrol withering times by use of electronic hygrawtric recorder. 7. Install KWh meter for withering house. 6. Train staff i n energy monitoring and efficiency aptimisat ion. Target 2 Long Term Energy Savings ---- 1. Install cyclonic combustor at each a i r heater i n the drying statien t o n i l14800 2300000 1.6 10.0 give a dual fuel capability. ENERGY AUDIT REPORT E x e c u t i v e Summary KAPSET TEA FACTORY COMPANY L I M I T E D KERICHO D I S T R I C T 1.O EXECUTIVE SUMMARY Kapset tea factory was commissioned i n 1981, and has been i n production f o r 4 years. I t s design, using o i l fuel f o r a i r heating, i s based on requirements f o r qua1it y production and close control o f process operations, understandably without much attention t o energy efficiency. Audit data and the factory's plant configuration a t the time o f the audit on 14 October 1985 are summarised i n Appendix A - Energy Audit Sheet 1985 and Appendix B - Energy Survey Questionnaire. The estimates f o r energy saving opportunities are based on actual measurements or engi neering-economic judgement f o l 1owing the s i t e v i s i t s . Cost and savings are approximate and additional engineeri ng and economic f e a s i b i l i t y investigation, p a r t i c u l a r l y t o take account o f continuing variations i n energy costs, w i 11 be necessary before proceeding with any o f the projects identified. Indeed it should be observed t h a t since the time o f the 1985 audit, international fuel o i l prices have fa1len dramatically, while the economic and market prices o f both e l e c t r i c i t y and fuelwood have risen. 1.1 Present Enerqy U t i 1isation The FY 1985 energy consumption, u t i1isation and target energy i n t e n s i t i e s (TI and T2) f o r the Kapset Tea Factory i n the Kericho D i s t r i c t are summarised i n Table 1.1. The percentage cost and consumption o f the various energy forms are shown p i c t o r i a l l y i n Figure 1.1. Fuel o i 1 and e l e c t r i c i t y account f o r 80.1% and 19.7% respectively of a l l energy costs reported. The recommendations are aimed a t reducing these costs . The specific energy consumption for FY 1985 was 30.07 GJ/tMT which i s exceptional l y high by tea industry standards. The achievable target f o r specific energy for t h i s factory i s assessed as 20.24 GJ/tMT (Target 1) . Target 2 energy i n t e n s i t y w i 11 remain the same as it involves a fuel substitution, but specific energy cost w i 11 be lowered. TABLE 1 . 1 - OVERALL ENERGY USAGE AND COST REPORT (FY 1995j ........................................................... F a c t o r - . ~ : Kapcet Tea Factot-y Company Limited D i s t t - i c t : t:::etqicho A l t i t u d e ~ 1 3 ( : ) m r:70(:)c:iftj Nominal C a p a c i t y : la!:!!:l tMT H e a t E.t. A i t - Heater- Fue 1 : Oil T o t a l F't-oduct i o n tMT 1441 Ei~et-gyConsumption: E l e c t r - i c i t y MWh 1275 G J 4589 C:t::Sh 858 F u r l O i l (RFO) Diesel O i l (Ifin) T o t a l ie:.:cluding 13Ll\l) G J 58367 Enet-qy I n t e n s i : W i t h e r - i n s GJitMT 3.41 i3t-een Leaf F ' t - o c ~ sisn g GJ/tMT (2.35 Dt-;fin9 GJittIT 2 ~ 3.1 T o t a l G J ~ ~ M ' T 3t:).(1)7 Sour-ce Enet-qy I n t e n s i t y : E l e s t t - i c i t y GJ/'tMT 2.36 F u e l O i l GJ/t;MT 2 7 - 6 7 Diesel O i l G J / tMT (1) (1)s . T u t a l GJ/'tMT 3 ~(3'7 . Energy I n t e n s i t y Tat-gets : . Tat-qet 1 GJ/'tMT 2(:, 24 Ta t-get 2 GJitMT 2(1).24 P c ~ t e n ial Ener-gy S a v i n g s : t Ta t y e t 1 a c h ieved GJ/tMT 9. I33 Tar-get 2 a c h i e v e d GJ/tMT n i l Enet-gy C o s t s : Annual Enet-gy C o s t k:t:::Sh 4378 S p e s i f ic Enet-gy C o s t KSh / C::gMT 2'. 26 P o t e n t i a l Cost S a v i n g s : Tat-get 1 a c h i e v e d KSh/'l::gMT (1). 73 - Tat-get 2 a c h i e v e d t:::Sh / I<: g PIT (11 26 . FIGURE 1.1 1.2 Target 1 - Short Term Energy Savings By adopting a vigorous energy management programme and implementing t h e s h o r t term recommendations which, i n general, r e q u i r e minimum investment l e v e l s , a Target 1 energy i n t e n s i t y o f 20.24 GJ/tMT could be achieved. Plant energy consumption a t c u r r e n t production l e v e l s would be reduced by 19 080 GJ/a o r 33% o f present consumption, a saving o f 1 419 000 KSh/a, o r 32% o f 1985 energy costs, as summarised i n Table 1.2. The increased green l e a f payment t o growers i s expected t o be i n t h e order o f 0.17 KSh/kg green 1eaf (equivalent t o 0.73 KSh/kgMT) . - 7- , F~C;O~.;/ #apset Tea Factory L!-I-PO Energy Form en erg:^ Target Energy Ener?y Actual Target Cost Cost !n\restfient F'a!,i;ci: Usage Usage Savings Savinqs Cost Sailin3 Saving GJ/ tHi GJitHT G.J/tET I. kKSh ki:Sh kj;Sh I. year5 E':ectrici t ~ : Gen~rated ni 1 nil n i l nil nil ni i ni! n! 1 - - Fur.:hazpd 2.35 2.21 ij.15 b 6 s 831 57 6 ::. > 55 9.04 Fuel Oil 27.66 15.00 9.68 35 3.177 2117 1362 39 :. Fuel Wood ni i nil nil ni i nil ni 1 nii ni 1 - - iliese! Uil (2.03 0.03 ni 1 nil 11 11 nii nil - - -- Total 30.07 20.24 4.53 . 4375 2955 1419 32 5 9 . ~ 4 1.3 Target 2 - Long Term Energy Savings By implementing the long term recommendations which, in general, require some capital investment, and subject t o further more detailed evaluation of engineering and economic feasibility i t i s estimated that a Target 2 energy cost of 1.25 KSh/kgMT could be achieved. Plant energy consumption at current production levels would remain the same b u t the T2 improvements would yield a further saving of 539 000 KSh/a or 12%of 1985 energy costs, as summarised in Table 1.3. The effect of achieving the Target 2 level i s expected to further increase the green leaf payment t o growers by 0.07 KSh/kg green leaf (equivalent t o 0.28 KSh/kgMT). TABLE !.3 - TARGET 2 - LORG TEF:M ENERGY SAVIHGS Enery,i Fa!.m Ener3)f Tit-get Ens!y:u. En~rgy liitu2l Target C0.t Co5.t !n:!e~tsent Paybaci: Usaspi!) U ~ a g e !3yi525 Sjvinqs C!;:tilj .a". :='in? >iv!n? - . Gj:tMT GJ!tMT GjjtMT J ..-., I(i(Sh !.-I - nil - I C 221 .-s.7 4 LL I E ~ E F P ! a i l ... ..- 0. 03 ni 1 nil !1 11 ni 1 nil I,.!.:.! -. Tat;! ZV. 24 .-,... - 24 n i 1 ni 1 2759 2420 5 3 1E 1,1!3<1 .-a 'i L. & '(1) Rita!. T1 jivinqr have besn ic"i&.d 1.4 Recommended P r o j e c t s t o Achieve Target Energy Savings Table 1.4 summarises t h e p r o j e c t s i d e n t i f i e d t o achieve t h e targeted energy savings a t Kapset. Reference i s given t o the r e p o r t chapter i n which a more d e t a i l e d discussion o f t h e proposal may be located. A l l estimates must be regarded as very preliminary. Should it be decided t o proceed a f u l l engineering design and estimate i s recommended before funds are committed. F a i t o r y : Kapset Tea F a c t o r y 28-f eb-6 ----- - - - - - - Energy Cost C a p i t a l Fayback R e f e r e c c e P r o j e c t D r r i r i p t i o n Saving; S a v i n g s Cost T i n e C h z p t e r ( E J l a ) ikKSh!a! (LKSh! ( Y e a r s ) ................................................................................................ TAEGET 1 S h o r t Tern Energy S a v i n g s ......................... '1 1. Install I D Titi and !!ue g a s o u t ! c t t e n p e r a t u r e i n d i i a t o r on each 31; ke;ter 2. Ins:;!i f u r n a c e s u i i i o n preF:ur+ :.di!:atcr; it a i r - b e a t e r and :r.prove i u r 2 ; r t !raft i:,;n~!til~:~5 5. 1t:s;sll ?iocu!it:~ig a u t o z a t i c i8jnt:oi f o r .31r tr!?;. i t ~ t ~ e j c h d r y e r 6. I n v r s t i g a t e and i f r,+res;iry n e i i s s i r y r e p l i c e u i t her i n g fan i a p e i l e r s 7 . Ci!~ifrol w i t h e r i n g t i m e s b y u s e o f e l e c t r o n i c h y g r o e e t r i i r e c o r d e r 8. 1ns:all KUli vleter io: u i t l : t r l n g h o u s e 9. T r a i n ; t a f f i n e t ~ e r g y oil;zitor:r:g and eificie!!~;' !jp::e:lsit:c:? . Ezergy C0.t !:;Fitai Payb;ik Brfer+~::c Pr:]je[t 3ezr::p:i~:n Saving; Sitvie;; . I-.J,i 'L. .5 b i!Le !:!lapi +r .. iLt:C!!/j! ! ; i ' C L . ) ( Y e a r s ) t i - . .-:,'a), ? TARGET 2 Long Tere E!lergy Savi!lgs ------------------------ 1. Inst;i! a 5 6J!h ryc!onic c o r b u s t i r r t p:tper;ti~:~n ?lint a t t!.:? d r y e r s t a t i o n to est:biisb a d u a l f u e l fa,-: i t y (30,/70 f u r l u;:lod!EFc) -------------------------------- ENERGY A U D I T REPORT E x e c u t iv e Surnmary KIAMOKAMA TEA FACTORY COMPANY L I M I T E D K I S I I D I S T R I C T 1.O EXECUTIVE SUMMARY Kiamokama tea factory, commissioned i n 1976 before the days o f high cost energy, has been i n production for 9 years. I t s design, using o i 1 fuel f o r r a i s i n g steam for a i r heating, i s based on requirements f o r q u a l i t y production and close control of process operations, understandably without much a t t e n t i o n t o energy efficiency. Audit data and the factory's plant configuration a t the time o f the audit on 1 October 1985 are summarised i n Appendix A -Energy Audit Sheet 1985 and Appendix B - Energy Survey Questionnaire. The estimates f o r energy saving opportunities are based on actual measurements or engineering-economic judgement following the s i t e v i s i t s . Cost and savings are approximate and additional engineering and economic f e a s i b i l i t y investigation, p a r t i c u l a r l y t o take account o f continuing variations i n energy costs, w i l l be necessary before proceeding w i t h any o f the projects identified. Indeed it should be observed t h a t since the time o f t h e 1985 audit, international f u e l o i l prices have f a l l e n dramatically, while t h e economic and market prices o f both e l e c t r i c i t y and fuelwood have risen. 1.I Present Enerqy U t i 1isation The FY 1985 energy consumption, u t i l i s a t i o n and target energy i n t e n s i t i e s (TI and T2) f o r . t h e Kiamokama Tea Factory i n t h e K i s i i D i s t r i c t are summarised i n Table 1.1. The percentage cost and consumption o f the various energy forms are shown p i c t o r i a l l y i n Figure 1.1. Fuel o i l and e l e c t r i c i t y account f o r 77.7% and 21.9% respectively o f a l l energy costs reported. The recommendations are aimed a t reducing these costs. The s p e c i f i c energy consumption f o r FY 1985 was 21.72 GJ/tMT which i s moderate by tea industry standards. The achievable targets f o r s p e c i f i c energy f o r t h i s factory are assessed as 15.55 GJ/tMT Target 1 and Target 2. A d e t a i l e d analysis o f energy trends during the seven months before the audit r e i n f o r c e the overall impression t h a t p o s i t i v e and determined e f f o r t s are needed t o arrest and reverse the r i s i n g energy costs which are adversely a f f e c t i n g t h e r e t u r n t o growers i n t h i s d i s t r i c t . r A E i E 1. 1 - G(,!EC"; , ..&LL EP..IEF:GY USAGE ANT, COST REPORT iF.Y la?&.5! ........................................................... Fat: t c? t-%; t:::i amok.a~?iaTea Factor-y l;ompanv Lim i te!i Qict.t-ii-t 1::: 15 1j. AStitc!de :z(j(:ii:!mibzti>ft;) I.Jl>rninal Cs.i~s,j.cit'.; : 12(:1(3 tilT Heatet- 5 .tea11-1 FL!E1 uj,1 Enep-!qy C ~ ~ n c . c ! ;trion: i ~ E1er i:r- i c it ,.?,. I'lLJh G J I:: t:::5 h k: 1 GJ I:: 1:::5h I::1 i3J i:: 1-1 1::: Enet-.qy I n t e r l z i ty : . .. il!ithet-,i1-1q E t - E E ~Lea+ F't-oceszinq Dt-yirlq T o t a l .-8~~l-~t-ceEnet-gy I n t e n s i t y : C. E l e i t t - , i c i t y F'~-!el O i 1 D i e s e l n i l Tlzta 1 Enet-gy I n t e n s i t y Tat-yet.~.: T3t-7et 1 Tat-.3e-t 2 P o t e n t i a i Energy Z a v l n q s : <-' Tat-g(.zt 1 achieved T -. ,,et - 2 achieved E n ~ t - g yC o s t s : Annua 1 Enet-.gy Cost S ~ e cfii r Enel-gy Co5.t P o t e n t i a l C o s t Savinqs : TaI-:?et 1 ach ieved t:::Sh / I::q171T T 6 t - q ~ 2 achieved t 1:;.513 ./ p 1.1T - , .., , .. c" 1a,{\-?A ij C,ik TEri FACTLTJFT'i' F'i' 13EEI 1.2 Target 1 - Short Term Energy Savings By adopting a vigorous energy management programme and imp1ementi ng the short term recommendations which, in general, require minimum investment levels, a Target 1 energy intensity of 15.55 GJ/tMT could be achieved. Plant energy consumption at current production levels would be reduced by 9298 GJ/a or 28% of present consumption, a saving of 779 000 KSh/a, or 25% of 1985 energy costs, as summarised in Table 1.2. The increased green leaf payment to growers i s expected to be in the order of 0.12 KSh/kg green leaf (equivalent t o 0.52 KSh/kgMT). i42LE ! . 2 - TtiGET 1 - SHOF:T TELM ENEF:GY SAVINGS Factor? Kiamokalria Tea Fzctorv 19-F eb Enrl-gy Form Enersv Taryet Ewrg:: Enemy Actual Taryet Ccst Cost Investment Payback Usa!e Usage Savin!; Savinqs Cost Saving Saving GJitMT GJitMT GJ/t#T 1 kESk/a k#Ehia kKSh!a kKShia Years I I. Electricity Generat ~ d ni1 nil ni1 nil nii nii nii nil 3 Purchased 1.89 1.84 0;05 s, i> 497 bEZ 15 7 7 Fuel Gii 19.78 13.66 5.12 30.5 2470 1706 764 313.4 ,, !I.& Fuel Wood ni1 nii ni! nil nil nil ni1 ni1 Diese! Oil 6.35 0.i)~ n: i nil 12 12 nil ni1 -- Total .,- ! 6-17 2~.r:, 5177 Z~()(J !iJ -.c 44 0.66 L 7177 i~ 1.3 Target 2 - Long Term Energy Savings By implementing t h e l o n g term recommendations which, i n general, r e q u i r e some c a p i t a l investment, and subject t o f u r t h e r more d e t a i l e d e v a l u a t i o n o f engineering and economic f e a s i b i l i t y it i s estimated t h a t a Target 2 energy i n t e n s i t y of 15.55 GJ/tMT could be achieved. Plant energy consumption a t c u r r e n t p r o d u c t i o n l e v e l s would be reduced t o 23 434 GJ/a o r 28% below present p l a n t consumption, y i e l d i n g a f u r t h e r saving o f 683 000 KSh/a o r 21% o f 1985 energy costs, as summarised i n Table 1.3. The e f f e c t o f achieving t h e Target 2 l e v e l s i s expected t o f u r t h e r increase t h e green l e a f payment t o growers by 0.10 KSh/kg green l e a f ( e q u i v a l e n t t o 0.45 KSh/kgMT). Factor;? Kiamoi:ama T E ~Factoy: 1Y-Fej Eze!-!yForm Ener.:y Target E n ~ r q y E q ~ r g y Actual iat-get h s t Cust i n v ~ ~ t m e n t F'aybick Usage* Usage Savings Savings Cost Saving Saving GJ/tMT GJ!tHT GJ/tMT % kKShi~. kLEhia I.tii:Sh!'a i kKSh!a ii~a1-s F u ~ ilil l 1 . 6 6.33 b.33 50.0 1706 8% a51 50.0 1029 1.5 Fuel Wood n i l 6.83 -ha'".La . - n i l 218 -218 - D i e s ~ Ol i l ,j.05 (1,$5 n i l n i 1 12 12 n i i n i i 1.4 Recomended Projects t o Achieve Target Energy Savi ngs Table 1.4 summarises the projects i d e n t i f i e d t o achieve the targeted energy savings a t Kiamokama. Reference i s given t o the r e p o r t chapter i n which a more d e t a i l e d discussion o f the proposal may be located. A1 1 estimates must be regarded as very preliminary. Should it be decided t o proceed a f u l l engineering design and estimate i s recommended before funds are committed. TABLE 1.4 - FIEEMENMIIONS Factory : Kiamokasa Tea Factory F'tw~ectDescription Eneqy Cost Capital Payback Reference Savinqs Savinq Cost Chapter GJ/tHT K%/a KShia Years --------------- Tarqet 1 Short Tea Enerqv 5avinqs 1. Carp out radiation t steam \ leakaqe test. 2. I n s t i l l modulating control on boiler lo1 burner. 3. Repiace burner atoatisinq nozzles. 4. Install auto temp control valve at each steam radiator. 5. Measure i n l e t humidity t o drvers. I f too hiqh inlets ~ w s tbe duited t o new source. > ?2?0 7790Cnj 44000 O.Gb ll.S b. Install outlet flue gas ind~cator on boiler. 7. Control withering times bv use o i electronic hygrometric recorder. 8. Install KWh ~ w t e r+or withering house. 9. Reduce a i r rate thrwqh No2 dryer. 10. C h ~ kNo1 dryer 1t.educe a i r rate i f too hiqh. 11. Train s t a i f i n mergy m i t o r i n g e i f iciencv optinisation. I ---------- Factorv : Kiamkama Tea Factory Project Description Enerqy Cast Capital Pavback Reierence Savings Saving Cost Chapter GJitHT KSh/a KSh/a Years .............................................. Target 2 Long Term Energy Savings -------- 1. Instal1 stem engine/qenerator far witherinq air fans. nil W N 40WW 8.3 11.0 2. Investigate law cost iuel substitution at flaestra 85 bailer & fit dual fuel facility. Savings sham are ior nil 63500ir I O Z i j 1.6 10.0 3%reduction in RFO usaqe. ENERGY AUDIT REPORT E x e c u t i v e Sulnmary KIMUNYE TEA FACTORY COMPANY L I M I T E D KIRINYAGA D I S T R I C T 1.O EXECUTIVE SUMMARY Kimunye tea factory, commissioned i n 1979 before the days o f high cost energy, has been i n production f o r 6 years. I t s design, using o i l fuel f o r a i r heating, i s based on requirements f o r q u a l i t y production and close control o f process operations, understandably without much attention t o energy efficiency. Audit data and the factory's plant configuration a t the time o f the audit on 25 September 1985 are summarised i n Appendix A - Energy Audit Sheet 1985 and Appendix B - Energy Survey Questionnaire. The estimates f o r energy saving opportunities are based on actual measurements or engineering-economic judgement following the s i t e v i s i t s . Cost and savings are approximate and additional engineeri ng and economic f e a s i b i l i t y investigation, particularly t o take account o f continuing variations i n energy costs, w i l l be necessary before proceeding with any o f the projects identified. Indeed it should be observed that since the time o f the 1985 audit, international fuel o i l prices have f a l l e n dramatically, while the economic and market prices o f both e l e c t r i c i t y and fuelwood have risen. 1.1 Present Energy U t i1isati on The FY 1985 energy consumpti on, u t i1isation and target energy i n t e n s i t i e s (TI and T2) f o r the Kimunye Tea Factory i n the Kirinyaga D i s t r i c t are summarised i n Table 1.1. The percentage cost and consumption o f the various energy forms are shown p i c t o r i a l l y i n Figure 1.1. Fuel oi 1 and e l e c t r i c i t y account f o r 64.2% and 34.1% respectively of a11 energy costs reported. The recommendations are aimed a t reducing these costs. The specific energy consumption f o r FY 1985 was 15.49 GJ/tMT which i s very good by tea industry standards. The achievable targets f o r specific energy f o r t h i s factory are assessed as 13.88 GJItMT (Target 1) and 13.88 GJ/tMT (Target 2). A detailed analysis o f energy trends during t h e seven months before the audit reinforce the overall impression t h a t positive and determined e f f o r t s are needed t o arrest and reverse the r i s i n g energy costs which are adversely affecting the return t o growers i n t h i s d i s t r i c t . TABLE 1 . 1 - OVERALL ENERGY USAGE AND COST F:EF'Of?T CFY 1985:) ........................................................... F a c t a r y : t:::imunye Tea Factory C:ompany Liri~ted i D i s t r i c t : Kirinyaga A l t i t u d e : 17821-1 C585Uft :) Nonri rial IZapac i t y : 1 5 0 0 tMT Heater : A i r Heater F u e l : Oil E n e r g y Consuri~pti un: E l e c t r i c i t y MWti 1 1 1 4 U J 4(1) kKSti 76(1) F u e l O i l (:EFOj D i e s e l O i l CIDO) T l ~ l t a l Ce!.:cludi tig GLN) 13J 24388 E n e r g y I n t e n s i t y : W i t h e r i n g GJ/tMT 1 '33 . G r e e n L e a f F ' r o c e s s i n g GJ/tMT (3.43 Dryi tig GJ/tMT 1 3 . 1 6 T o t a l l;J/tMT 15. 4'3 Sl:lurce E n e r g y I t i t e t i s i t y : E l e c t r i c i t y rjJ/tMT 2-35 F u e l O i l GJ/tMT 12.8(j Diesel O i 1 GJ/tMT (1. 1 5 T o t a l GJ/tMT 1 5 . 4 9 E n e r g y I n t e n s i t y T a r g e t s : T a r g e t 1 GJ/tMT 1 3 . 8 8 T a r g e t 2 GJ/tMT 1 3 . 8 8 P o t e n t i a1 E n e r g y S a v i rigs : Tar g e t 1 act1i e v e d GJ/tMT 1 . 5 1 T a r g e t 2 actii e v e d GJ/tMT tii 1 E n e r g y C o s t s : Annual E n e r g y C o s t k1:::stl '3 .-,.:a q L i d Spec i f i c E n e r g y C o s t t:Sh / kgMT 1 . 4 6 F'otetitial Cost Savitigs : T a r g e t 1 a c t i i r v c d t:zSti / kgMT 0 13 . Tar g e t 2 a c h i e v e d t:ZStl/kgMT (3.11 E1, F'..-, :>:Ty3; --- '\ ,*' .-. ,. ,,(.-7 *i(.-,:I .I A C:l CAUN 'iE TEA F=TO IT( f="' 1 -3&i 1.2 Target 1 - Short Ter~irEnergy Savings By careful a t t e n t i o n t o the short t e r ~ nreco~ruaendations, which, i n general require m i ni~luril investinent levels, a Target 1 energy i n t e n s i t y o f 13.88 GJ/tMT could be achieved. Plant energy consu~b~ptiona t current production levels would be reduced by 2 534 GJ/a o r 10% o f present consu~nption, a saving of 198 000 KSh/a, or 9% of FY 1985 energy costs, as su~n~narised i n Tab1e 1.2. The increased green leaf payrilent t o growers i s expected t o be i n t h e order of 0.03 KSh/kg green leaf (equivalent t o 0.13 KSh/kgMT). TABLE 1.2 - TARGET 1 - SHORT TERH ENERGY SAVIN6S ................................................ Factory : Kirunye Tea Factory Energy Forr Actual Target Energy Energy Actual Target Cost Cost Investrent Payback Usage Usage Savings Savings Cost Saving S ~ vngi GJItHT GJltHT GJltHT I KKSh KKSh KKSh I KKSh Years ........................................................................................................... E l e c t r i c i t y : - - Gmer ated n i l n i l n i1 n i1 n i1 n i 1 n i1 n i l Purchased 2.54 2.48 0.06 2.0 660 644 16 2.0 50 0.25 Fuel O i l 12.80 11.25 1.55 12.0 1500 1318 182 12.0 - - Fuel Wood n i 1 n i l n i l n i1 n i1 n i 1 n i1 n i l - Diesel O i l 0.15 0.15 n i l n i 1 39 39 n i l n i1 Total 15.49 13.88 1.61 10.0 2199 2001 19f 9.0 50 0.?5 ........................................................................................................... 1.3 Target 2- Long Terrn Energy Savings By il~~plerrlenting t h e long t e r r i ~recorrunendations which, i n general, r e q u i r e sorile c a p i t a l investrrlent, and subject t o f u r t h e r Inore detai l e d evaluation o f engineering and economic f e a s i b i l i t y it i s estimated t h a t a Target 2 energy i n t e n s i t y of 13.88 GJ/tMT could be achieved. Plant energy cost a t c u r r e n t production l e v e l s would be reduced t o 1.17 KSh/kgMT even though t h e energy consuniption would re~ilain the same, y i e l d i n g a f u r t h e r saving o f 167 000 KSh/a, o r 8% o f 1985 energy costs, as surn~narisedi n Table 1.3. The e f f e c t o f achieving the Target 2 l e v e l s i s expected t o f u r t h e r increase t h e green l e a f payment t o growers by 0.02 KSh/kg green l e a f (equivalent t o 0.11 KSh/kgMT). TABLE 1.3 - TARGET 2 - LONG TERM ENERGY SAVINGS Factory : Kimunye Tea Factory EnergyForm Actual Target Energy Energy Actual Target Cost Cost Investment Payback Usage( 1) Usage Savings Savings Cost Saving Saving GJltMT GJltMT GJltMT L KKSh KKSh KKSh Z KKSh Years ........................................................................................................... E l e c t r i c i t y : Generated n i 1 n i l n i 1 n i1 n i1 n i l n i1 n i l - - Purchased 2.48 2.48 n i l n i1 644 644 n i1 n i1 - Fuel O i l 11.25 9.00 2.25 20.0 1318 1151 167 13.0 1180 7.1 Fuel Wood n i l 2.25 -2.25 - n i l - - Diesel O i l 0.15 0.15 n i1 n i 1 39 39 n i1 n i1 Total 13.88 13.88 n i 1 n i l 2001 1834 167 8.0 1180 7.1 ........................................................................................................... (1) After T I targets achieved 1.4 Re~oi~u~lendedProjects t o Achieve Enerav Savi nas Table 1.4 s u ~ ~ ~ ~ ~ i atrhies epdr o j e c t s i d e n t i f i e d t o achieve t h e t a r g e t e d energy savings a t Ki~~lunye. Reference i s given t o t h e r e p o r t chapter i n which a no re d e t a i 1ed discussion o f t h e proposal r~iaybe located. A1 1 esti~tlates laust be regarded as very p r e l i ~ i l i n a r y . Should it be decided t o proceed a f u l l engineering design and estiniate i s recornillended before funds are corlirait t e d . TABLE 1.4 - ENERGY PROJECTS ........................... Factory : Kimunye Tea factory Energy Cost Capital Payback Ref Energy Projects Savings Savings Cost Chapter 6Jla KShIa KSh Years ................................................................................... TARGET 1 1. I n s t a l l furnace suction pressure indicator at each a i r heater ?. Repair burner mounting hinges 3. Replace broken tubes i n No.1 a i r heater 4. Meekly: Clean o f f fireside deposits i n a i r heaters 1 5. Adjust air-fuel r a t i o I 6. I n s t a l l outlet flue gas temperature indicator at each a i r heater 7. Replace burner nozzles 2534 198000 SO000 0.25 11.0 8. l n s t a l l auto temp control at tach dryer i n l e t (modulating type) 9. Repair leaks a t access doors on dryers 10. Repairlreplace damaged tray sections on dryers I 11. Investigate & replace i f necessary withering fan impellers I 12. Control withering times by use o f electronic hygrometer recorder 13. I n s t a l l KYh meter for withering house 14. Train s t a f f i n energy monitoring and efficiency optirisation TABLE 1.4 (Contl - ENERGY PROJECTS Factory : Kimunye Tea Factory Energy Cost Capital Payback Ref Energy Projects Savings Savings Cost Chapter 6JIa KShIa KSh Years ................................................................................... TARGET 2 1 .Install 5 6JIhr cyclonic combustor1 fuelwood preparation plant for partial substitution of low cost nil 167000 1100000 fuel at dryer air heaters (001 RFO - 20%Fuelwoodl ENERGY AUDIT REPORT Executive Sur~lmary KINORO TEA FACTORY COMPANY LIMITED MERU DISTRICT 1.O EXECUTIVE SUMMARY Kinoro t e a factory was commissioned i n 1984, and has been i n production f o r 1 year. I t s design, using o i l fuel f o r r a i s i n g steam f o r a i r heating, i s based on requirements for q u a l i t y production and close control o f process operations, understandably without much attention t o energy e f f i c i e n c y and w i t h energy cost penalt i e s due t o the high cost o f f u e l o i 1. Audit data and the f a c t o r y ' s plant configuration a t the time o f the audit on 22 September 1985 are summarised i n Appendix A - Energy Audit Sheet 1985 and Appendix B - Energy Survey Questionnaire. The estimates f o r energy saving opportunities are based on actual measurements o r engineering-economic judgement followiqg the s i t e v i s i t s . Cost and savi ngs are approximate and additional engi neeri ng and economic feasi b i 1ity investigation, p a r t i c u l a r l y t o take account o f continuing ' variations i n energy costs, w i 11 be necessary before proceeding w i t h any o f the projects i d e n t i f i e d . Indeed it should be observed t h a t since the time of t h e 1985 audit, international fuel o i l prices have f a l l e n dramatically, while the economic and market prices of both e l e c t r i c i t y and fuelwood have risen. 1.1 Present Energy U t i 1is a t ion The FY 1985 energy consumption, u t i l i s a t i o n and target energy i n t e n s i t i e s (TI and T2) f o r the Kinoro Tea Factory i n the Meru D i s t r i c t are summarised i n Table 1.1. The percentage cost and consumption o f the various energy forms are shown p i c t o r i a l l y i n Figure 1.1. Fuel o i 1 and e l e c t r i c i t y account for 68.9% and 30.5% respectively o f a11 energy costs reported. The recommendations are aimed a t reducing these costs . The specific energy consumption for FY 1985 was 19.9 GJ/tMT which i s moderate by t e a industry standards. The achievable targets f o r s p e c i f i c energy for t h i s factory are assessed as 15.81 GJ/tMT (Target 1) and 15.81 GJ/tMT (Target 2). TABLE 1 . 1 - OVERiiLL ENEF:GY USAGE AND COST F:EF'OF:T i F Y 13853 ........................................................... F a c ti3t7;/ : t:::inot-o T e a F a c t o t - y Company Litni t e d District : Met-L( A 1 t i t ~ r d e 16(5(:1m 525!3ft ( ) N a m i n a l C a p a c i t y : 18ij0 tMT Heater- : A i r H e a t e r Fue1 : U i l T ~ z t a lF ' ~ - c ) ~tLiIocn tMT 1 2 1 2 MWh '?5& G J 3443 - -,' k: 1:::h ; I:: L 5 1 2 G.J 2(:,&21 I::Sh 1::: 1 5 3 6 Diesel O i l (IDOi I:: L 1 . 8 9 8 G J 7- I .L* I::Sh 1::: 12 T o t a l (e:.:cl ~ t idn g lTjLN) G J 2 4 1 3 6 E n e r g y I n t e n s i t y : W i t h e t - i n g GJitMT 2.32 Gt-een L e a f F't-ocesning GJitMT (3.51 Dt-yinq G J / tMT 1 7 (38 . T ~ ~ t a l G J i tMT 1 9 . 9 1 S a u t - c e Enet-gy I n t e n s i t y : E l e c t t - i e i t y GJ/tPlT 2. 34 F u e l O i l GJ/ tMT 17. (51 Diesel O i l GJitMT .(:16 (:I T o t a l GJ/tMT 1 9 . 9 1 E n e r g y I n t e n s i t v T a t - g e t s : T a r g e t , 1 - G J / tMT 1 5 . 8 1 T a r g e t 2 GJ/tMT 15.81 P o t e n t i a l Enet-gy S a v i n g s : Tat-get 1 a c h i e v e d GJitMT 4 10 . T a r g e t 2 a c h i e v e d GJ/tMT 4 1 . Enet-gy C o s t s : 4nrtua 1 Enet-gy C o s t S p e c i f i c Enet-gy C o s t F o t e n t i a l C o s t S a v i n g s : Tat-get 1 a c h i e v e d KSh/ kgMT (1) 3.3 . T a r g e t 2 a c h i e v e d t:::Sh/ kgNT ;I).23 C::It~ICIPO TEA FACTOW< Fr. 1 IDU 1::1:1.5%:1 1.2 -Target 1 - Short Term Energy Saviogs By adopting a vigorous energy ~nanagernentprogralnrne and i~npleinenting t h e short t e r ~ n recoramendations which, i n general, requi r e m i nii~~umnvestrnent i levels, a Target 1 energy i n t e n s i t y of 15.81 GJ/tMT could be achieved. Plant energy consumption a t current production levels would be reduced by 4 969 GJ/a o r 21% of present consumption, a saving o f 396 000 KSh/a, o r 17% of 1985 energy costs, as sua~narisedi n Table 1.2. The increased green leaf payment t o growers i s expected t o be i n t h e order o f 0.08 KSh/kg green leaf (equivalent t o 0.33 KSh/kgMT). TABLE 1.2 - TCK1GET 1 - SHORT TERH DERGY SAVINGS Factory : Kinoroo Tea Factory 1 4 feb Energy Form Energy iaqet Energy Energy Actual Target Cost Cost Investaent Payback Usage Usage Savings Savings Cost Saving Saving GJ/tHT GJ/tMT GJ/tHT % M S h RSh KSh Z KKSh Years Electricity: - - Generated nil nil nil nil nil ni 1 ni1 ni1 Purchased 2.84 2.75 0.09 2.0 707 686 21 3.0 61 0.15 Fuel Oil 17.01 13.00 4.01 24.0 1596 1221 375 23.0 Woodfuel nil ni1 nil nil nil nil - nil nil - Diesel Oil 0.06 0.06 nil nil 12 12 nil nil - - Total 1'9.91 15.81 4.10 21.0 2315 1919 396 17.0 61 0.15 1.3 Target 2 - Long Term Energy Savings By implernenti ng the long term recor~miendationswhich, i n general, r e q u i r e some c a p i t a l investment, and subject t o f u r t h e r ~rlored e t a i l e d evaluation of engineering and economic f e a s i b i 1ity it is estimated t h a t a Target 2 energy cost o f 1.36 KSh/kgMT could be achieved. Plant energy consu~liptiona t current production l e v e l s would rel~lainv i r t u a l ly t h e sarne a t 19 162 GJ/a b u t p a r t i a l s u b s t i t u t i o n o f RFO w i t h a lower cost f u e l would y i e l d a further saving of 265 000 KSh/a o r 11% of 1985 energy costs, as suln~narised i n Table 1.3. The e f f e c t o f achieving the Target 2 l e v e l i s expected t o f u r t h e r increase t h e green l e a f payrnent-to growers by 0.05 Kh/kg. green leaf (equivalent t o 0.22 KSh/kgMT) . TABLE 1.3 - TEIRGET 2 - LON6 TEf2H ENERGY SAVINGS ---------------- ------- Factory Kinoro Tea Factory 14-Feb Energy Form Actual Target Enetyy Energy Actual Target Cost Cost Investwent Payback Usage(1j Usage Savings Savings Cost Saving Saving GJ/tMT GJitHT &J!tHT % KSh KKSh KKSh % KSh Years ........................ - --------- Electricity: Generated nil nil ni 1 nil nil nll nil nil Purchased 2.75 2.75 nil nil 686 606 nil Fuel Oi! I . 9.10 3.W 30.0 1221 756 - 265 71 1180 4.5 Woodfue1 nil 2.K' -3.90 - nil - Diesel Clil 0.06 0.06 nil nil 12 12 nil nil - Total 15.81 15.81 nil nil 1919 1654 265 14.0 11R1 4.5 1.4 Reco~ni\endedProjects t o Achi eve Target Energy Savi ngs Table 1.4 sur~uriarisesthe projects i d e n t i f i e d t o achieve the targeted energy savings a t Kinoro. Reference i s given t o the report chapter i n which a more detailed discussion o f the proposal [nay be located. A11 estiri~ates must be regarded as very prel irninary. Should it be decided t o proceed a f u l l engineering design and estimate i s recornmended before funds are committed. Plant : Chinga Tea Factory Page 1 of 2 Project Ijescrlption Energy Cost Capital Payback Reference Savings Saving Cost Tiae Chapter 6Jia K%/a KSh Years Target 1 Short Term Energy Savings 1 1. Install furnace suction pressut-e 1ndicato1-s at each a i r heater. 1 2. Gdjust fuel-air ratio and seal ash doors. 1 ';, Install wtlet flue gas twp indicator on each a i r heater. 4. Replace burner nozles. 1969 396000 6lW 0.15 11.0 5. Install inadulating auto teq cgntrol for each dryer. 6. F i t fabricated housing to each a i r heater economiser. I 7. Investigate and replace i f necessar), withering fan impellers. 9. Control withering times by use of electronic hygrometric recorder. I O. Install kWh aeter for withering house. J 9. Train staff i n energy mnioring and r f f iciency optimization. TABLE 1.4 - RECcrmENDElTIONS (CON) Plant : Kinoro Tea Factory -- ----- -------------- Paqe ? of 2 ----- -- - Project Description Energy Cost Capit a l Payback Reference Savings Saving Cost Time Chapter 6JIa KKSh/a USh Years Target 2 Long Term Eneqy Savings 1. Install a 5 GJihr cyclonic combustor and fuel preparation/ storage plant to achieve partial n i l 265 1100 4.5 10.0 substitution at the dryer a i r heaters. (ZQil:! Fuelwoud/Biamass: 70%WO) ENERGY AUDIT REPORT E x e c u t i v e Sumrnary L I T E I N TEA FACTORY COMPANY LIMITED KERICHO DISTRICT 1.O EXECUTIVE SUMMARY L i t e i n tea factory, commissioned in' 1966 before the days o f high cost energy, has been i n production f o r 19 years. I t s design, using o i l f u e l f o r a i r heating, i s based on requirements f o r q u a l i t y production and close control o f process operations, understandably without much attention t o energy e ff ic iency . Audit data and the factory's plant configuration a t the time o f the audit on 29 September 1985 are sumrnarised i n Appendix A - Energy Audit Sheet 1985 and Appendix B - Energy Survey Questionnaire. The estimates f o r energy saving opportunities are based on actual measurements or engi neering-economic judgement f o l 1owing the s i t e v i s i t s . Cost and savings are approximate and additional engineering and economic f e a s i b i l i t y investigation, p a r t i c u l a r l y t o take account o f continuing variations i n energy costs, w i 11 be necessary before proceeding with any o f the projects i d e n t i f i e d . Indeed it should be observed that since the time o f the 1985 audit, international fuel o i l prices have f a l l e n dramatically, whi l e the economic and market prices o f both e l e c t r i c i t y and fuelwood have risen. 1.1 Present Energy U t i l i s a t i o n The FY 1985 energy consumption, u t i l isation and target energy i n t e n s i t i e s (TI and T2) f o r the L i t e i n Tea Factory i n the Kericho D i s t r i c t are surnniari sed i n Tab1e 1.1. The percentage cost and consumpti on of the various energy forms are shown p i c t o r i a l l y i n Figure 1.l. Fuel o i l and e l e c t r i c i t y account f o r 78.4% and 21.2% respectively o f a l l energy costs reported. The recommendations are aimed a t reducing these costs. The specific energy consumption f o r FY 1985 was 18.97 GJ/tMT which i s moderate by tea industry standards. The achievable targets f o r specific energy f o r t h i s factory are assessed as 14.63 GJ/tMT f o r Target 1 and Target 2. An excel l e n t specific energy consumption (RFO only) t e s t r e s u l t was obtained f o r the Sirocco a i r heater/Davidson dryer system, ie, 7.6 GJ/tMT. Normally RFO energy f o r withering a i r i s only expected t o a l l 10% t o the energy i n fuel requirement f o r drying. Consequently it can be seen t h a t a whorthwhi l e challenge exists a t L i t e i n t o overcome the effects o f operational discontinuities, variable green lead deliveries and technical defects. TABLE 1.1 -OVERALL ENERGY USAGE AND COST REPORT (F'f 1985) ----------------------------------------------------------- Factor-y : Litein Tea Factor-y Company Limited I j i s t t - i c t : Ket-icho A l t i t ~ t d e 2 135m i7c:)c:rO f t ) Nominal Capacity : 18(:)(:) tMT Heater- : CSit- Heatet- Fuel O i 1 Total F't-oducti o n t M T 1 5'09 Enet-gy Consumption: E l e c t t - i c it y MWh G J I::Sh t::: Fuel O i l (HFO) Total iexcluding GLN! G J 3,5221 Suut-ce Enet-yy I n t e n s i t y : E l e c t r i c it y GJ/'tMT 1.34 Fuel U i l G J i t M T 16.5'4 Liiesel O i l GJ/'tMT (1) i:)4 . Tijtal G J / t M T 18.47 Enet-.gy I n t e n r i t y Tat- get^. : Tat-get 1 G J i t M T 14.63 Tat-qet 2 G J / t M T 14.53 P o t e n t i a l Enet-qy Savings : Target 1 achieved G J i t M T 4.34 Tat-get 2 achieved G J / t M T n i l Enet-qy Costs : Annual Energy Cost kt:::Sh 3147 E p e ~f ii c Enet-gy C o s t t:::Sh ii::gMT 1-55 P o t e n t i a l Cost Savinqe : Tat-get 1 ach ieved KSh/I:qMT (1). 35 Tat-get 2 achie\./ed t:::Sh /C::gMT i:) 4 .2 1.2 Target 1 - Short Term Energy Savings By adopting a . vigorous energy management programme and implementing the short term recommendations which, in general, require minimum investment levels, a Target 1 energy intensity of 14.63 GJ/tMT could be achieved. Plant energy consumption a t current production levels would be reduced by 8285 GJ/a or 23%of present consumption, a saving of 662 000 KSh/a, or 21% of 1985 energy costs, as summarised in Table 1.2. The increased green leaf payment to growers i s expected to be in the order of 0.08 KSh/kg green leaf (equivalent to 0.35 KSh/kgMT. TABLE-!.2 - TAFGET 1 - SHORT TEM ENERGY %VItGS Factoryi Litein Tea Factory 18-Feb Energy Farm Energy Target kergv Energy Actual Target Cost Cost Investment Payback Usage Usage Savings Savings Cffit Saving Saving GJ/tNT 6J/tMT GJ!tMT I kKShia kKSh/a kkShia X kli'Sh/a Years Electricity Generated n i l n i l n i l n i l n i l n i l n i l n i l Purchased 1.99 l.d9 0.10 5.0 068 631 37 5.5 Fuel Oil 16.44 12.70 4.24 25.0 2467 1842 625 25.3 60 0.24 Fuel Wood n i l n i l n i l n i l n i l n i l n i l n i l Diesel O i l 0.04 ij.04 n i l n i l 12 12 n i l n i l Total 18.97 14.6-5 4.24 23.0 3147 2 4 5 662 21 60 0.24 1.3 - Target 2 - Long Term Energy Savings ' By implementing the loog term recommendations which, i n general, r e q u i r e some c a p i t a l investment, and subject t o f u r t h e r more d e t a i l e d evaluation o f engineering and economic f e a s i b i l i t y it i s estimated t h a t a Target 2 energy cost saving o f 0.24 KSh/kgMT could be achieved. Plant energy consumption a t current production l e v e l s would be v i r t u a l l y t h e same a t 27 929 GJ/a. This stage would y i e l d a f u r t h e r saving o f 450 000 KSh/a o r 14% o f 1985 energy costs, as summarised i n Table 1.3. The e f f e c t o f achievinq the Tarqet 2 l e v e l s i s expected t o f u r t h e r increase t h e green 1eaf t o growers by 0.06 ~ ~ h /green k ~ ' l e a f (equivalent t o 0.24 KSh/kgMT) . TAKE 1.3 - TAFtGET 2 - LONG TH M G Y SAVINGS Factory Litein Tea Factory 18-Feb Enerqy Farm Enerqy Target Energy Energy Actual Target Cost Cost Investment Payback Usaqe* Usage Savings Savings Cost Saving Saving GJ/tMT GJItHT GJ, tMT % kKSh/a kKShia kKSh/a /. kKSh/a Years ---------- --------- ---- ------ - -----------------------------------, Electric1ty Generated nil nil nil nil nil nil nil nil Purchased 1.89 1.89 nil nil bj 1 631 nil nil -1 Fuel Oil 12.70 8.89 3.81 30.0 1842 1246 596 24. (1 1180 2.6 Fuel Wood nil 3.81 -3.81 - nil 146 -116 Diesel Oil 0.04 0.01 nil ni 1 12 12 nil nil Total 14.63 14.G nii nil 2485 2035 450 14 11NJ 2.6 ...................... -- * niter T1 target savings achieved. 1.4 Recommended P r o j e c t t o Achieve Target Energy Savi ngs Table 1. 4 summarises t h e p r o j e c t s i d e n t i f i e d t o achieve the targeted energy savings a t L i t e i n . Reference i s given t o t h e r e p o r t chapter i n which a more deta i l e d discussion o f t h e proposal may be located. A1 1 estimates must be regarded as very p r e l iminary. Should it be decided t o proceed, a f u l l engineering design and estimate i s recommended before funds a r e committed. TABLE 1.4 - RECMENMTIONS Factory : Litein Tea Factory F'ro~ectDescription Energy Cast Capital Payback Reference Savings Saving Cost Chapter GJItMT* KShia KShIa yea^ Tarqet 1 Short Term Energy Savings 1. Instal 1 furnace suction pressure indicators at each a i r heater. 2. Wjust fuel-air ratio. 3. Install outlet flue gas teq. indicator at each a i r heater. I 4. Replace burner noz:les. I 5. I n s t j l l t d u l a t i n g temp. controi for a i r tew. into each dryer. 6. Continue weekly proqraatoe for f i r i n g equipwit 5 heat transfer equiprent . 7. Investigate & replace i f necessary nithering fan iapellers. 8. Control withering times by use of electronic hygrometer recorder. Q. Install Kwh meter i o r withering house. 1C. Train staff i n energy m i t o r i n g and eiiiciency optirisation. Target 2 Lmq Term Energy Savinqs 1. Install cyclonic combustor and fuel preparation plant to give dual fuel n i l 1WUifi 11BOOCG 2.6 10.0 system. (30X fuelwood: 70'1ItFO) ENERGY AUDIT REPORT E x e c u t i v e Sur~irnary MATAARA TEA FACTORY COMPANY LIMITED KIAMBU D I S T R I C T 1.O EXECUTIVE SUMMARY Mataara t e a f a c t o r y , col.nmissioned i n 1964 before t h e days o f high c o s t energy, was t h e second KTDA f a c t o r y b u i l t and has been i n production f o r 21 years. I t s design, using o i l f u e l f o r r a i s i n g steam f o r a i r heating, i s based on requirements f o r q u a l i t y production and c l o s e c o n t r o l o f process operations, understandably w i t h o u t much a t t e n t i o n t o energy e f f i c i e n c y and w i t h energy c o s t p e n a l t i e s due t o t h e high p r i c e o f f u e l o i 1. A u d i t data and t h e f a c t o r y ' s p l a n t c o n f i g u r a t i o n a t t h e time o f t h e a u d i t on 18/19 September 1985 are summarised i n Appendix A - Energy Audit Sheet 1985 and Appendix B - Energy Survey Questionnaire. The estimates f o r energy saving o p p o r t u n i t i e s are based on actual measurements o r eqgineering-economic judgement f o l l o w i n g t h e s i t e v i s i t s . Cost and savings are approximate and a d d i t i o n a l engi neeri ng and economic f e a s i b i l i t y i n v e s t i g a t i o n , p a r t i c u l a r l y t o take account o f continuing v a r i a t i o n s i n energy costs, wi 11 be necessary before proceeding w i t h any o f t h e p r o j e c t s i d e n t i f i e d . Indeed it should be observed t h a t since t h e time o f t h e 1985 audit, i n t e r n a t i o n a l f u e l o i l p r i c e s have f a l l e n dramatically, w h i l e t h e economic and market p r i c e s o f both e l e c t r i c i t y and fuelwood have risen. 1.1 Present Energy U t i 1is a t i on The FY 1985 energy consumption, u t i l i s a t i o n and t a r g e t energy i n t e n s i t i e s (TI and T2) f o r t h e Mataara Tea Factory i n t h e Kiambu D i s t r i c t are summarised i n Table 1.1. The percentage cost and consumption o f t h e various energy forms are shown p i c t o r i a l l y i n Figure 1.l. Fuel o i 1 and e l e c t r i c i t y account f o r 68% and 31.8% r e s p e c t i v e l y o f a1 1 energy costs reported. The recommendations are aimed a t reducing these costs . The s p e c i f i c energy consumption f o r FY 1985 was 31.9 GJ/tMT which i s exceptional l y h i g h by t e a i n d u s t r y standards. The achievable t a r g e t s f o r s p e c i f i c energy f o r t h i s f a c t o r y are assessed as 27.6 GJ/tMT (Target 1) and 27.6 GJ/tMT (Target 2). A d e t a i l e d a n a l y s i s o f energy trends d u r i n g t h e seven months b e f o r e t h e a u d i t r e i n f o r c e t h e o v e r a l l impression t h a t p o s i t i v e and determined e f f o r t s are needed t o a r r e s t and reverse t h e r i s i n g energy costs which a r e adversely affecting t h e r e t u r n t o growers i n t h i s d i s t r i c t . TABLE 1 1 . - 0VEF:ALL ENERGY USAGE AND I1:OST REF'OFIT CFY 1985:) ' ........................................................... F a c t lsr y : llataara Tea Factlrlry II:l:lri~patiy Lim ited D i s t r i ~ r t 1:: iar ib~u A l t i t u d e 2(11(1)(1)ro N o m i n a l C a p a ~ ~ i t:y 12(1)(:) M T ~ H e a t e r S t eani F u e l O i 1 E n e r g y C:l:~tisurnpti~z~n: E l e t : t r i ~ : i t y MWtl 1; J k1::sti F u e l O i l (:FIFO:) k L 1(:)85 13J 43741 I::KSti 3441 D i e s e l O i l .4 * (:I(:) .-3 (:IDOS I::L I3J 92: I::KSti 16 E n e r g y I n t e n s i t y : W i t h e r i n g GJ/tMT l(3.5 13reeti L e a f F'rc~~:essing GJ/tMT 1 D r y i n g GJ/tMT 2(1) 4 T o t a1 GJ/tMT 31 9(:) .. Sl=~urceE n e r g y I n t e n s i t y : E l e c t r i c i t y I3J/tMT 4 50 . F u e l O i l GJ/tMT 27.34 D i e s e l O i l GJ/tMT (1 (116 T o t a 1 GJ/tMT 31 #2(:) .. E n e r g y I n t e t i s i t y T a r g e t s : T a r g e t 1 GJ/tMT 27-56 T a r g e t 2 GJ/tMT 27.563 F'III~e t i t ia1 E n e r g y S a v i figs : T a r g e t 1 ac ti ie v e d GJ/tMT 4.34 T a r g e t 2 ac ti ie v e d GJ/tMT (1) (1(3 . E n e r g y CIIIS~S : A n n u a l Etier g y ll:l=lst I::KSti 5(:)563 Spe~:i f i t : E t i e r g y C:l:lst KSh/ kgMT 3. 163 F ' r ~ t e t i t i a l C1:mst S a v i n g s : T a r g e t 1 a c t i i e v e d MSti/ kgMT (3.47 T a r g e t 2 ac t i i e v e d KSh/ k gMT (1). 93 e:l;tra 1.2 Target 1 - Short Term Energy Savings By adopt ing a vigorous energy management prograrnrne and implement ing t h e short term recommendations which, i n general , r e q u i r e m i nirnum investment levels, a Target 1 energy i n t e n s i t y of 27.56 GJ/tMT could be achieved. Plant energy consumption a t current production l e v e l s would be reduced by 6944 GJ/a o r 14% o f present consumption, a saving of 752 000 KSh/a, o r 14.9% o f 1985 energy costs, as sumrnarised i n Table 1.2. The increased green leaf payment t o growers i s expected t o be i n t h e order o f 0.1 1 KSh/kg green l e a f (equivalent t o 0.47 KSh/kgMT. TABLE 1.2 - TARGET 1 - SHORT TERM ENERGY SAVINGS ................................................ factory : Hataara Tea factory 19 JAN 1986 Energy form Actual Target Energy Energy Actual Target Cost Cost Investment Payback Usage Usage Savings Savings Cost Cost Saving Saving GJ/tHT GJltHT GJ/tHT X kKSh/a kKSh/a kKSh/a X kKSh/a Years ------------ .------------------------------------------------------------------------------------ E l e c t r i c i t y Generated Purchased 3.50 1.00 22 1600 1289 311 19 60 0.15 f u e l O i l 24.00 3.34 12 3411 3333 78 2 f u e l Wood Ni1 Ni1 Ni1 Ni1 Ni1 N i l Ni1 Ni1 Ni1 Diesel O i l 0.06 N i l Ni1 16 16 Ni1 Ni1 Hi 1 Ni1 Total 31.90 27.56 4.34 14 5027 4638 389 8 60 0.15 ........................................................................................................... The Target 1 recommendations r e l a t e mainly t o more e f f i c i e n t t u n i n g o f t h e a i r / f u e l r a t i o a t t h e o i l - f i r e d b o i l e r s and a programme o f tuning adjustments and instrument readings a t t h e f l u i d i s e d bed dryer. 1.3 Target 2 - Long Tern Energy Savings By implementing the long term recominendations which, i n general, r e q u i r e some c a p i t a l investment, and subject t o f u r t h e r more d e t a i l e d evaluation o f engineering and economic f e a s i b i l i t y it i s estimated t h a t a Target 2 energy i n t e n s i t y of 27.56 GJ/tMT could be achieved. Plant energy consumption a t c u r r e n t production l e v e l s would be v i r t u a l l y t h e same as t h e T1 achieved t a r g e t b u t f u r t h e r savings of 1 491 000 KSh/a o r 29% of 1985 energy costs are p o s s i b l e by fuel s u b s t i t u t i o n and steam/electric power f o r w i t h e r i n g fans. (Refer Table 1.3). The effect o f achieving t h e Target 2 l e v e l s i s expected t o f u r t h e r increase t h e green leaf payment t o growers by 0.22 KSh/kg green leaf (equivalent t o 0.93 KSh/kgMT) . TABLE 1.3 - TARGET 1 - LONG TERH ENERGY SAVINGS ................................................ Factory : Hataara Tea Factory 19 JAN 1986 Energy Form Actual Target Energy Energy Actual Target Cost Cost Investment Payback Usage Usage Savings Savings Cost Cost Saving Saving GJltHT GJItHT GJItHT kKSh1a kKSh1a kKShla 7. kKShla Years ----- ........................... E l e i t r i c i ty Generated Purchased N i l 1289" 1059 230 18 460 2.0 Fuel O i l 50 3333" 1666 1667 50 1020 0.8 Fuel Wood Ni1 Ni 1 406 -406 Ni1 Diesel O i l Ni 1 16 16 Ni1 Ni1 Ni 1 N i l Total 27.56" 27.56 Ni 1 N i l 4638" 3147 1491 32 1480 1.0 ........................................................................................................... "Achieved by T1 programme. 1.4 Recomrnended Projects t o achieve Target Energy Savings Table 1.4 su~nrnarisest h e p r o j e c t s i d e n t i f i e d t o achieve t h e t a r g e t e d energy savings a t Mataara Ltd. Reference i s given t o t h e r e p o r t chapter i n which a more d e t a i l e d discussion o f t h e proposal may be located. TABLE 1.4 - RECOHHENDATIUNS ........................... Plant: HataaraTeaFactory Jan-B6 Page 1 of 2 ...................................................................... Project ' ~ e s c r i ~ t i o n Energy Cost Capital Payback Savings Saving Cost Tire 6Jla KShla KSh Years Target 1 Short Term Energy Savings 1. Carry out radiation and stear leakage test. 2. Adjust fuel-air ratio. 3. Stop oil leaks at burner. 4. Replace burner nozzles. 5. Install auto terp control valve at each steam radiator. 6. Heasure inlet huridity to dryers. If too high inlets rust be ducted to new source. 7. Honitor FED operating parameters to irprove tuning 8. Install outlet flue gas terp indicator on each boiler. 9. Control withering tires b y use of electronic hygoretric recorder. 10. Install kWh meter for wi thering house. Il.Train staff in energy roni toring and efficiency optimization. TABLE 1.4 - RECOnnENDATIONS Plant : Rataara Tea Factory Jan-86 Page 2 of 2 ................................................................................ Project Description Energy Cost Capital Payback Reference Savings Saving Cost Time Chapter 6Jla KShla KSh Years Target 2 Long Term Energy Savings ........................ 1. I n s t a l l steam enginel 1300 230000 460000 2.0 4.0 generator for withering a i r fans. Remove steam mani folds, replace v i t h ducts for f l u e gas heat exchanger. 2. Replace pressure atomised 5686 469000 120000 0.3 7.0 burner on the Haestro 100 boiler i f a i r fuel r a t i o i s not consistent. 3. I n s t a l l a new fuelvood f i r e d N i l 1256000 1020000 0.0 10.0 cyclonic combustor a t the Haestro 100 boiler,to give a dual-fuel f a c i l i t y . The f o u r major i n i t i a t i v e s r e l a t e d t o Target 2 - Long term energy savings r e q u i r e iilanagernent consideration and p o t e n t i a l c a p i t a l investment as f o l 1ows. . remove a11 stearn ~ n a n i f ods, s t e a d a i r heat exchangers, condensate 1ines l etc, from t h e main w i t h e r i n g house. The i n l e t plenum would then be f i t t e d w i t h i n i l d s t e e l ducts through which b o i l e r f l u e gases from t h e nearby b o i l e r s t a t i o n stack would be diverted. . e l e c t r i c i t y consu~nption f o r w i t h e r i n g a i r should be e l irninated by i n s t a l 1i n g a steam engine d r i v i n g an AC generator supplying e l e c t r i c i t y t o t h e w i t h e r i n g a i r fans. Exhaust steam from t h i s engine would be used f o r low pressure steam heating support a t t h e lower w i t h e r i n g house which i s notorious f o r wasting high pressure steam. . r e t r o f i t ( o r replace) t h e NUWAY pressure atomised burner on t h e Maestro 100 b o i l e r if t h e a i r / f u e l r a t i o cannot be adjusted t o maintain a c o n s i s t e n t 11-13% C02 i n t h e f l u e gas from t h i s b o i l e r . The r e t r o f i t ( o r replacement) should include an air-atomisation f a c i l i t y . . f u l l y i n v e s t i g a t e every p o s s i b i l i t y of obtaining cheaper f u e l s u b s t i t u t e which could be f i r e d i n a c y c l o n i c combustor a t t h e Maestro 100 b o i l e r . If only partial substitution i s feasible, a dual f u e l l n o d i f i c a t i o n a t t h i s b o i l e r should be considered. (Refer Chapter 10 - P o t e n t i a l for Fuel S u b s t i t u t i o n ) ENERGY A U D I T REPORT E x e c u t iv e Sun~rnary MUNGANIA TEA FACTORY COMPANY L I M I T E D EMBU D I S T R I C T 1.O EXECUTIVE SUMMARY Mungania tea f a c t o r y was commissioned i n 1980 and has been i n production f o r 5 years. I t s design, using o i l fuel f o r r a i s i n g steam f o r a i r heating, i s based on the requirements f o r q u a l i t y production and close control o f process operations w i t h a severe energy cost penalty due t o t h e high cost o f f u e l o i l . Audit data and the f a c t o r y ' s plant configuration at the time o f the audit on 23 September 1985 are summarised i n Appendix A - Energy Audit Sheet 1985 and Appendix B - Energy Survey Questionnaire. The estimates f o r energy saving opportunities are based on actual measurements or engineering-economic judgement following the s i t e v i s i t s . Cost and savings are approximate and additional engineering and economic f e a s i b i l i t y investigation, p a r t i c u l a r l y t o take account o f continuing variations i n energy costs, w i 11 be necessary before proceeding w i t h any o f the projects i d e n t i f i e d . Indeed it should be observed t h a t since the time o f the 1985 audit, international fuel o i l prices have f a l l e n dramatically, while t h e economic and market prices o f both e l e c t r i c i t y and fuelwood have risen. 1.1 Present Enerqy U t i l i s a t i o n The FY 1985 energy consumption, u t i l i s a t i o n and target energy i n t e n s i t i e s (TI and T2) f o r t h e Mungania Tea Factory i n the Embu D i s t r i c t are summarised i n Table 1.1. The percentage cost and consumption o f the various energy forms are shown p i c t o r i a l l y i n Figure 1.1. Fuel o i 1 and e l e c t r i c i t y account f o r 72.8% and 27.2% respectively of a11 energy costs reported. The recommendations are aimed a t reducing these costs . The s p e c i f i c energy consumption f o r FY 1985 was 17.1 GJ/tMT which i s moderate by t e a industry standards. The achievable targets f o r s p e c i f i c energy for t h i s f a c t o r y are assessed as 15.85 GJ/tMT (Target 1 the Target 9\ TGELE 1.1 - OVEF:cii-i ENERGY USAGE AND COST REF'0F:T i:F'r' 1?85) F.3.ctnt-:i : Mungania Tea Factor-y Company Limited Elistt-ict : h b ~ ! A 1t itl,-!de 1B(1)i:lm (54(30$1;j Nominal Capacity : lSi:)!:j tMT I-imtet- : A i r Heater-. Fue1 : O i l Total F't-od~-~ction tMT 1685 Er~et-.gyConsumptian: E i e c t t - i c i t y MWh G J k:1:::5h -' I:: L Q .. .-,.... L 6J -953-3 .& -,- I:: 1:::Sl-l 1919 I::L .[I! 1;) 1.13 i:) G J i:) I::1::: h T o t a l (e:.trll-!ding GLN! G J 28746 So~!t-ceEnet-gy Inten.s.ity : E l e c t t - i c i t y GJ/tMT 2 06 . Fuel O i l GJitMT 15 i:) Diesel O i l G J / tMT (1).. I>(:, T o t a l rjJ.itMT 17. i:jb F'otenti.31 Enet-..rly Savings : ..- Tat-get 1 ach ieved GJ/' t PIT 1.21 Tat-get 2 achi eved GJi' tMT n i l Enet-gy ~Zosts: 2635 - Ar3nu.al Enet-gy L O ~ , % .- I::1:::Sh S p e c i i i c Enet-gy Cost t:::S1-1 ,; I::9MT 1.56 P o t e n t i a l C o s t Savinqs : Tat-get 1 achi eved 1:::Shi I::9tqT .1(11 (Ij Tat-get 2 achieved t:::Sh .I.' I::9MT (11 34 . 1.2 Target 1 - Short Ter111Energy Savings By adoptirrg a vigorous energy r ~ ~ a n a g e ~ ~progrolrlllle and i ~ ~ ~ p l e i ~ ~ etnhtei n g ~ e n t short ter111 recollul~endations which, i n general , r e q u i r e 111inirllulrl i n v e s t r ~ ~ e n t levels, a Target 1 energy i n t e n s i t y of 15.85 GJ/tMT could be achieved. Plant energy consul~~ptiona t current production l e v e l s would be reduced by 2039 GJ/a o r 7% of present consureption, a saving of 172 000 KSh/a, o r 7% o f 1985 energy costs, as s u ~ r ~ i ~ a r i siendTable 1.2. The increased green leaf pay~~lentt o growers i s expected t o be i n t h e order of 0.02 KSh/kg green leaf (equivalent t o 0.10 KSh/kgMT) . TABLE 1.2 - TARGET 1 - SHORT TERM DIEffiY SAVINGS F a c t o ~ Mungania Tea Factory 10-Feb Energy Form Energy Tarset Enerqy Energy Actual Target Cost Cost I n v ~ t m e n t Payback Usage Usage Savings Savings Cost Saving Saving GJ/ tHT GJ! tMT GJ! tMT ;! kKSh/a kKSh/a kKShia 9 kKShia years ...................... ------ ------ ------. - - - - _ ---- _-I_ Electricity Generated n i l n i l n i l n i1 n i l n i l n i l n i l -. F'urchased 2.0b 2.01 i!.06 3.0 716 696 ZiJ 1.0 Fuel O i l 15.00 13. e5 1.15 8.0 1919 1767 152 8.0 0.29 Fuel Wclod n i1 n i l n i l n i1 n i l n i l n i l n i l Die5el O i l n i l n i l n i l n i l n i l n i1 n i l n i l 7 50 0.29 Total 17.h 15.85 1.21 7.00 2635 2463 173 1.3 Taraet 2 - Lona Ter~r~Enerav Savinas By i ~ ~ r p l e ~ ng~ ethei~ n t long ter111recoi~ur~endationswhich, i n general, require sollie c a p i t a l investn~ent, and subject t o further l~roredetai l e d evaluation o f engineering and econorl~icf e a s i b i l i t y it i s estililated t h a t a Target 2 energy cost o f 1.08 KSh/kgMT could be achieved. Plant energy consur~iptiona t current production levels would relilain the sarlre but a f u r t h e r saving o f 575 000 KSh/a o r 22% o f 1985 energy costs would be achieved as sulrll~rarised i n Table 1.3. The e f f e c t o f achieving the Target 2 levels i s expected t o f u r t h e r increase the green l e a f payrrrent t o growers by 0.08 ~ ~ h /green k ~ ' l e a f (equivalent t o 0.34 KSh/kgMT) . TABLE 1.3 - TARGET 2 - LONG TEFa MKY SAVINGS ........................... Factory Hungani a Tea Factory 10-Feb Energy Form Energy Target Energy Energy Actual Target Cozt Cozt Investment Payback Usaqe* Usage Savings Savings Cost Saving Saving G j itMT GJ/ tHT GJ/tHT 1 k#Sh!a kKShia k#Shia 7. kKSh!a Years .......................... - Electricit!; Generated n i l n i l n i1 n i l n i l n i l n i l n i l .. .- Furchased 2. 06 .q L. ?Ic n i l n i l 696 b?6 n i l n i l Fuel O i l 13. a5 7.60 n i l n i l 1767 970 1180 2.1 Fuel Wood n i l 6.25 n i l n i l n i l -.. ??? 575 33.0 Diesel O i l n i l n i l n i l n i l n i1 n i l n i l n i l Tot51 15.85 15.65 n i l n i l 2463 1888 575 23.0 1160 2.1 r After 71 savings have been achieved. 1.4 Recorlu~~endedProjects t o Achieve Target Energy Savings Table 1 .4 sur~r~~rarises the p r o j e c t s i d e n t i f i e d t o achieve t h e targeted energy savi ngs a t Mungani a. Reference i s given t o the r e p o r t chapter .'in which a 111ored e t a i l e d discussion of the proposal may be located. A11 e s t i ~ ~ r a t e srrrust be regarded as very p r e l irninary. Should it be decided t o proceed a f u l l engineering design and esti~rratei s reco~lu~rendedbefore funds are COIIIIII~ t t e d . Plant: t!unqanla Tea Factory 1B-Feb P r o ~ e c tDescr:ption Energy Cost CapIt a l Pavback Ret. Savlnqi Savlnqs Cost Vears Chapter GJ/a KSh:a KSh Tarqet 1 Short Term Energy Sav~nqs 7 1. I n s t 4 I furnace suct~onp r e c ~ u r e indicator at each a l r heater. I 2. Adlust air-fuel ratio. 2 . I n s t a l l outlet flue gas temp. indicator on each a i r heater. I 4. Replace burner nozzles. 5. I n s t a l i rodulating auto t e w . contml i o r each dryer. 2039 173331 3EIrM 0.3 1l.u 6. Adjust dryer a l r rates. 7 . Investiqate t replacs it necessary n i therinq fan ~mpellers. 8. Control nltherlnq tlmes by use o t eleitranlc hyqroraetr!~c w t t n l l e r . I 9. I n s t a l l KWh meter for* nltherlnq house. 10, Tram s t a f t i n enerqy monltorinq and eiilciency opt lollsat ion. Target 2 Lonq Term Enerqy Savings 1. I n s t a l l 5GJIhr cyclan!c combustor & fuel preparatlonidryinq t storage plant t o qive dual tuel f i r i n q at n i l 5 7 1 2.1 10.0 the dryer a!r heaters. (5l:lX bionass:fuelmd: 502 KFOj ENERGY AUDIT REPORT E x e c u t iv e Sur~~rirary NDIMA TEA FACTORY COMPANY L I M I T E D NYERI/KIRINYAGA 1.O EXECUTIVE SUMMARY Ndima t e a f a c t o r y was commissioned i n 1981 and has been i n production f o r 4 years. I t s design, using o i l f u e l f o r r a i s i n g steam f o r a i r heating, i s based on requirements f o r q u a l i t y production and close c o n t r o l o f process operations, w i t h energy cost penalties due t o t h e high cost o f f u e l o i l . A u d i t data and t h e f a c t o r y ' s p l a n t configuration a t t h e time o f t h e a u d i t on 21 September 1985 are summarised i n Appendix A - Energy Audit Sheet 1985 and Appendix B - Energy Survey Questionnaire. The estimates f o r energy saving opportunities are based on actual measurements or engi neeri ng-economic judgement f o l 1owing t h e s i t e v i s i t s . Cost and savings are approximate and additional engi neering and economic f e a s i b i 1ity i n v e s t i g a t i o n , p a r t i c u l a r l y t o take account o f continuing v a r i a t i o n s i n energy costs, w i 11 be necessary before proceeding w i t h any o f t h e p r o j e c t s i d e n t i f i e d . Indeed it should be observed t h a t since t h e time o f t h e 1985 audit, i n t e r n a t i o n a l f u e l o i l p r i c e s have f a l l e n dramatically, w h i l e t h e economic and market p r i c e s o f both e l e c t r i c i t y and fuelwood have r i s e n . 1.1 Present Energy Uti1isat ion The FY 1985 energy consumption, u t i 1is a t i o n and t a r g e t energy i n t e n s i t i e s (TI and T2) f o r t h e Ndima Tea Factory i n t h e Nyeri/Kirinyaga D i s t r i c t are summari sed i n Tab1e 1.1. The percentage cost and consurr~ptiono f t h e various energy forms are shown p i c t o r i a l l y i n Figure 1.1. Fuel o i 1 and e l e c t r i c i t y account f o r 70.3% and 29% r e s p e c t i v e l y o f a1 1 energy costs reported. The recommendations are aimed a t reducing these costs. The s p e c i f i c energy consumption f o r FY 1985 was 16.8 GJ/tMT which i s good by t e a i n d u s t r y standards. The achievable t a r g e t s f o r s p e c i f i c energy f o r t h i s f a c t o r y are assessed as 14.02 GJ/tMT (Target 1) and 14.02 GJ/tMT (Target 21. Ti4tL.E 1 1 - 13'..!ERALL ENERGY USGEE AND COST REF'URT !F'I 1485:1 . ----------------------------------------------------------- Fari;ot-y Ndima Tea Factory Company Limited I;~istt-ict Nyet-i!t:::i t-inyaga A i t i t ~ t d e J m Nominal Lapacity : lBi:)(:, tMT Heater- A it- Heater-. Fuei O i 1 Energy Ccnsumpt ion: EIertt.icit:,/ MWh GJ I::Sh 1::: L:L 872 G J 3514rj I::Sh 1::: 2616 I:: L 4.257 G J 164 I::1:::Sh 28 Enet-.gy I n t e n r i t y : W i thet-ins G J i t M T 2-12 13t-pen Lea+ F't-ocessing G J / t M T .28 Dt-:t i ny G J / ' t M T 14. 40 Total G J r t M T 16 81::~ . Source Enet-gy I n t e n s i t y : E l e c t t - i c it : ~ G J / t M T 1.58 Fuel rJi 1 G J i t M T 15.15 p i p s e l n i l GJ:'tMT (11 (1)7 . Tota 1 G J / tMT I&. p,<:.i Enet-g:..: I n t e n s i t y Tat-gets : Tat-qet 1 GJ/'%MT 14. (52 - Tat-get 2 GJ/'tPlT 14. (:12 P ~ t e n t i a lEnet-gy Savings : Tat-get 1 achieved GJitMT 2. ';7E - Tat-yet 2 ach ieved GJitMT n i l Enet-gy Costs : ~nnl-!alEnet-gy Cost I::1:: Sh 3722 S p e c i i i c Enet-gy Cost t:::Sh/ C:gMT 1 . F'otenti.21 Cost Savings : Tat-get 1 achieved t:::Sh/ k:gMT !I!,22 Tat-get 2 achieved t:::Sh/ P:gMT (3 1E . FIGURE 1.1 1.2 - Target 1 - Short Ter~rrEnergy Savings By adopti ng a vigorous energy r~~anagecrlentprogral~lrrleand i111p1ementi ng t h e s h o r t terllr recolrrrnendati ons which, in general, require lnini~riu~r~ invest~r~ent l e v e l s , a Target 1 energy i n t e n s i t y of 14.02 GJ/tMT could be achieved. P l a n t energy consu~nptiona t c u r r e n t production l e v e l s would be reduced by 6450 GJ/a o r 17% o f present consu~nption, a saving o f 514 000 KSh/a, o r 14% o f 1985 energy costs, as suriur~arisedi n Table 1.2. The increased green l e a f pay~r~entt o growers i s expected t o be i n t h e o r d e r o f 0.05 KSh/kg green l e a f ( e q u i v a l e n t t o 0.22 KSh/kgMT). TAKE 1.2 - TARGET 1 - SHORT TEKM ENERGY SAVINGS F2cSoy:. Ndima Tea Factory 2lilil92tr Energy Forill Energ)) Target Energy Energy Actual Target Cost Cost Investment Payback Usaqe Usage Savings Savings Cost Saving Saving GJ/tHT GJitMT GJitHT 'i. kKSnia kKSh!a kKShia 'i. kKShia Years Electricity Generated nil nil nii nil nil nil nil nil Purchased 1.58 i.52 0.06 4.0 1070 1051 2.5 L a ?7 Fuei Oil 15.15 12.42 -. 7 55 -7 / 3 10.0 2616 2129 437 18.6 (3.1 Fuel Wwd nil n i 1 nil nil nil nil nil nil Di~selOil 0.07 (3.97 ni 1 nil 20 20 0 0.ir3 Total 16.80 14.01 2.77 7 3 7 2 3208 514 14 55 0.1 1.3 Taraet 2 - Lona Term Enerqv Savinas By iinplerilenti ng t h e long term recommendations which, i n general, r e q u i r e sonre c a p i t a l investment, and subject t o f u r t h e r more d e t a i l e d evaluation of engineering and econolr~icf e a s i b i l i t y it i s estimated t h a t a Target 2 energy cost of 1.2 KSh/kgMT could be achieved. Plant energy consurnption a t c u r r e n t production l e v e l s would be v i r t u a l l y constant but a f u r t h e r saving o f 427 000 KSh/a o r 11% o f 1985 energy costs would r e s u l t as suiiinarised i n Table 1.3. The e f f e c t o f achieving t h e Target 2 l e v e l s i s expected t o f u r t h e r increase t h e green l e a f payment t o growers by 0.04 KSh/kg green l e a f (equivalent t o 0.18 KSh/kgMT) . TABLE 1.3 - TMGET Z - iONG TERM ENW SAVINGS Factory Ndima Tea Factory 17-Feb Energy Form Energy T a r q ~ t Energy Enerqy Actual Target Cost Cost Investment Payback Usage* Usage Savings Savings Cost Saving Saving GJitflT GJ:'tMT GJ/tflT /. kKEhia CKShia kKSh/a % kli;Sh/a 'fears Electricity Generated n l l n i l n i l n i l n i l n i l n i l n i l Purzhased 1.52 1.52 n i l n i l 1051 1051 n i l n i l Fuel O i l 12.43 8.70 7 7, 30.0 2.8 .J. .J 2125, 1541 588 27.6 1180 Fuel kcd n i l 3.73 -3.73 n i l n i l 161 -161 n i l Diesel Oi! 0.07 0.07 n i1 n l l 2E 28 n i l n i l Toti1 14.02 14.02 n i l n i l 3208 2781 427 13.0 1180 2.0 ................................................................... t After TI savings have been achieved. 1.4 Recoilu~~endedProject to Achieve Target Energy Savings Table 1.4 sulrllnarises the projects identified to achieve the targeted energy savings at Ndima. Reference is given to the report chapter i n which a more detailed discussion of the proposal may be located. A11 estil~iates nus st be regarded as very prel i~liinary. Should i t be decided to proceed, a full engineering design and estimate i s recommended before funds are co~nmitted. TAW 1.4 - REC-TIN --- Factory : Nd~rnaTea Factory Project Descript~on Energy Cost Capital Payback Reference Sav~nqs Saving Cost Chapter GJ/tM KShIa KSh/a Years Tarqet 1 Short Term Energy Sav~nqs I 1. Instal1 furnace suction pressure indicators at each air heater. I 2. Adjust fuel-air ratio. 3. Install outlet flue gas tecsp. indicator at each alr heater. 4. Replace burner nozzles. I I 5. Install rnodulat~ngtemp. control for air temp. into each dryer. 6 . Investigate & replace if necessary uither~nqfan impellers. 7. Control u~therinqt~mesby use of electronic hygrometer recorder. 8. Install WI wter for w~ther~nq house. I 7. Train staff in enerqy mitoring and ~fficiencyoptirisation. Target 2 Long Term Energy Sav~nqs 1. Install a 5GJ/h cyclon~ccombustor 91 separat~onplant at the dryer nil 4270W 1180000 2.8 10.0 s t ~ t i o nto establish a dual fuel i ~ c ~ l i t y . (30%fuelwood: 702RFO) ENERGY AUDIT REPORT E x e c u tiv e Sumn~ary NYANSIONGO TEA FACTORY COMPANY LIMITED K I S I I DISTRICT 1.O EXECUTIVE SUMMARY Nyansiongo t e a factory, commissioned ' i n 1974 before the days o f high cost energy, and has been i n production f o r 11 years. I t s design, using o i l f u e l f o r r a i s i n g steam f o r a i r heating, i s based on requirements f o r qua1ity production and close control o f process operations, understandably without much a t t e n t i o n t o energy e f f i c i e n c y . Audit data and t h e f a c t o r y ' s p l a n t c o n f i g u r a t i o n a t t h e time o f t h e a u d i t on 30 September 1985 are summarised i n Appendix A - Energy Audit Sheet 1985 and Appendix B - Energy Survey Questionnaire. The estimates f o r energy saving opportunities are based on actual me.asurements o r engineering-economic judgement f o l l o w i n g t h e s i t e v i s i t s . Cost and savings are approximate and additional engineering and economic f e a s i b i l i t y investigation, p a r t i c u l a r l y t o take account o f continuing v a r i a t i o n s i n energy costs, w i l l be necessary before proceeding w i t h any o f t h e p r o j e c t s i d e n t i f i e d . Indeed it should be observed t h a t since the time of t h e 1985 audit, i n t e r n a t i o n a l f u e l o i l prices have f a l l e n dramatically, while t h e economic and market prices o f both e l e c t r i c i t y and fuelwood have risen. 1.1 Present Enersv U t i l i s a t i o n The FY 1985 energy consumption, u t i l i s a t i o n and t a r g e t energy i n t e n s i t i e s (TI and T2) f o r t h e Nyansiongo Tea Factory i n t h e K i s i i D i s t r i c t are summarised i n Table 1.1. The percentage cost and consumption o f the various energy forms are shown p i c t o r i a l l y i n Figure 1.1. Fuel o i l and e l e c t r i c i t y account f o r 68.0% and 31.6% r e s p e c t i v e l y o f a l l energy costs reported. The recommendations are aimed a t reducing these costs. The s p e c i f i c energy consumption for FY 1985 was 14.47 GJ/tMT which i s good by t e a i n d u s t r y standards. The achievable t a r g e t s f o r specific energy f o r t h i s f a c t o r y are assessed as 13.00 GJ/tMT (Target 1 and Target 2). Although t h e T2 t a r g e t requires no specific energy savings t h e p o t e n t i a l for worthwhile energy cost savings by fuel s u b s t i t u t i o n i s defined. Factat-y : Nyans.iongo Tea Factory Company Limited D i s t t - i c t 1::;i.-= I. . 1 A1t it c ! d ~ 168i:jm { 55i:,(:!+ t j Norrdnal Capacity : Ib'O!:, tMT Heater A ii,. Heater FL(E1 O i 1 Total F't-oduct ion tMT 16.7- ._! L MWh 1i:) i:![::I G J 3594 I::1::: Sh - . / b 1 C:: L 1 . &i>J GJ 51.2 I::1:::5 h 1!I, .4 'Total ie!.:cl~-td~nqLN) G G J 23431 Enet-qy I n t e n s i t y : W i thet-inq Green Leaf F't-b~cessing i!t;,! ing T :lt a 1 1:) Sol-tt-lze Enet-gy I n t e n s i t y : - E l e c t t - i cit y G J i tPlT i.., .-z 7 .L- Fuel O i l G J / t M T 12.22 L~ipst=l u i 1 GJ/tMT !I!i::~4 . Tu+bell - - GJ/tMT 14.47 E~1-r -t . : 3 ~1ntenc.j.t y 'Targets : Tat-get 1 (3JitMT 1 . i>i::~ - Tat-get i GJ,.'tl'lT 12 . i::l(> i2mi:ent i a l Enet-gy 5avingc : Tat-get 1 ach i e v e d GJ/i;MT 1.47 Tat-qet 2 a c h l ~ v e d GJ/;tMT n i l Enet-.gy Costs : Annual Enet-qy C o s t Spec 1f i c Enet-gy Cost F'i?tent i a l Cnst Sa.vinqs : Tat-.?et 1 ach ieved C::Sh/ k:gMT .1 i:! 5 - Tat-get 2 achieved 1:::Sh kgMT .1 9 ;: !:j 1.2 Target 1 - Short Term Energy Savings By adopti ng a v i gorous energy management programme and imp1ementi ng the short term recommendations which, i n general, require minimum investment levels, a Target 1 energy i n t e n s i t y o f 13.00 GJ/tMT could be achieved. Plant energy consumption a t current production l e v e l s would be reduced by 2386 GJ/a o r 10% o f present consumption, a saving o f 248 000 KSh/a, or 10% o f 1985 energy costs, as summari sed i n Tab1e 1.2. The increased green l e a f payment t o growers i s expected t o be i n the order o f 0.04 KSh/kg green l e a f (equivalent t o 0.15 KSh/kgMT). ---- TAME 1.2 - TMGET 1 - WT TERn ENERGY SAVINGS Factory Nyansionqo Tea Factory 18-Feb Energy For:t Energy Tarset Energv Energy Actual Target Cast Cmt Investwrit Paybsck IJsaqe Usage Savinqs Wings Cost Saving Savinq GJitHT GJ/tHT GJ/tRT ! kKShia kKShia kKSh/a kKSh/a Yea15 - -------. ; Electricity Generated nil nil ni 1 nil nil nil ni 1 Futuhasd 2.21 2.14 0.O: 2.9 761 737 i~ -07 2.5 Fuel Oil 12.:2 10.82 1.10 11.0 1639 1413 226 13.8 60 0.24 Fuel Wood nil nil nil nil n i I nil nil nil Diesel Oil 0.04 0.04 nil nil 10 10 n i1 nil 1.3 Target 2 - Long Ter~iiEnergy Savings By implementing t h e long term recornendations which, i n general, r e q u i r e some c a p i t a l investment, and subject t o f u r t h e r more d e t a i l e d evaluation o f engineering and economic f e a s i b i l i t y it i s estimated t h a t a Target 2 energy c o s t o f 1.14 KSh/kgMT could be achieved. Plant energy consumption a t c u r r e n t production l e v e l s would remain t h e same by using h i g h e f f i c i e n c y biomass/wood f i r i n g equipment b u t a f u r t h e r saving o f 313 000 KSh/a o r 13% of 1985 energy costs could be achieved, as summarised i n Table 1.3. The e f f e c t o f achievinq t h e Target 2 l e v e l s i s expected t o f u r t h e r increase t h e green l e a f t o growers by 0.04 ~ ~ h /green k ~ ' l e a f (equivalent t o 0.19 KSh/kgMT). TABLE 1.; - TARGET 2 - LCING TERH EMERGY SAVINGS Factory Nyansiongo Tea Factory 18-Feb Enerqy for;^ inerqy Tat-get Enetyj, Energy Actual Target Cost Cost Investment Pavback Usage+ Usaqe Savings Savings Cost Saving Saving GJ!tHT GJ/tKT GJitNT % kK5hIa kKSh/a k#Sh/a 'X kKSh/a Yeat-s E i e i t r ~tcy~ Generated n i l n i 1 n i 1 n i l n i l n i l n i l n i l Furchased 2 . 4 2.14 n i l n i l 737 n i l 7- j.2? Fupl E l ! 10.82 7.57 3 . 0 1413 989 1180 7 -c 3. 80 .J. i d F~uslWma n i l 5.25 -3.25 -,.. (1 - n i l 111 -111 Diese! I)ii . 0.04 n i1 n i l 10 10 n i 1 Totai 13.iji:) 13.N) n i l n i l 2162 1847 313 14 1180 2. 8C t After T1 target savings achieved. 1.4 Recommended Projects to Achieve Target Energy savings Table 1.4 summarises the projects identified to achieve the targeted energy savings a t Nyansiongo. Reference i s given to the report chapter in which a more detailed discussicn of the proposal may be located. All estimates must be regarded as very preliminary. Should i t be decided to proceed, a full engineering design and estimate i s recommended before funds are comitted. TABLE 1.4 - RECOIVIWDFITIWS ------------ Factory :Hyansionqo Tea Factory Project Description Energy Cost Capital Payback Reference Savings Saving Cost Chapter GJItHTf KShIa KShIa Years Tarset I Short Term Enerqy Savings -------------- I.Install furnace suction pressure indicators at each a i r heater. 2. Continue to adjust fuel-air ratio. 3. Install outlet flue qas temp. indicator at each a i r heater. 4. Replace burner nozzles. 5. Install modulatinq temp. control for a i r tenp. into each dryer. 6. Erect wall between dryers and a i r heater and ventilate area. 2386 248ocIo bOOClO 0.24 11.0 7. Reduce a i r rate through No2 dryer. a. Check No1 dryer a i r rate & adjust. 9. Investigate t replace ifnecessary withering tan iwellers. I 10. Repair dryer trays. 11. Control witherins times by use o i electronic hygnwter recorder. 12. Instali KWh meter for nithering hciuse. 13. Train statf i n energy m l t o r i n s and efficiency optirisation. -________ -_-_-___----____---- - ~actari : Nyansiango Tea Factory F'roject Description Energy Last Capital Payback R~ference k i n g s Saving Cust Chapter GJittlT* KSh/a KSh/a Years Tarqet 2 Long Term Energy Savings 1. Establish a dual fuel systen at the dryer station using a 5GJ1hr nil 313000 11Bi~rjOc3 3.8 10. O c::.clmic combuctor Ciring pu1~:'erised biomass wastelfuelwd. iZOZ fuelnoad: 7r3;!!UO) ------- - ~ *After T1 savings have been achieved. ENERGY AUDIT REPORT E x e c u t i v e Sulnmary TEGAT TEA FACTORY COMPANY LIMITED KERICHO DISTRICT 1.O EXECUTIVE SUMMARY Tegat t e a f a c t o r y , commissioned before t h e days o f high cost energy, has been i n production f o r 14 years i n t h e Kericho D i s t r i c t . I t s design, using o i l f u e l f o r r a i s i n g steam f o r a i r heating, i s based on requirements f o r q u a l i t y production and close c o n t r o l o f process operations, understandably w i t h o u t much a t t e n t i o n t o energy efficiency, and w i t h energy cost p e n a l t i e s due t o t h e high p r i c e o f f u e l o i 1. A u d i t data and t h e f a c t o r y ' s p l a n t c o n f i g u r a t i o n a t t h e time o f t h e a u d i t on 12th and 29th September 1985 are summarised i n Appendix A - Energy Audit Sheet 1985. The estimates f o r energy saving o p p o r t u n i t i e s are based on actual measurements o r engi n e e r i ng-economic judgement f o l lowi ng t h e s i t e v i s i t s . Cost and savings are approximate and a d d i t i o n a l engi neeri ng and economic f e a s i b i 1ity i n v e s t i g a t i o n , p a r t i c u l a r l y t o t a k e account o f c o n t i n u i n g v a r i a t i o n s i n energy costs, w i l l be necessary before proceeding w i t h any o f t h e p r o j e c t s i d e n t i f i e d . Indeed it should be observed t h a t since t h e t i m e o f t h e 1985 audit, i n t e r n a t i o n a l f u e l o i l p r i c e s have f a l l e n dramatically, w h i l e t h e economic and market p r i c e s o f both e l e c t r i c i t y and fuelwood have risen. 1.1 Present Enerqy U t i 1is a t i o n The FY 1985 energy consumption, u t i l i s a t i o n and t a r g e t energy i n t e n s i t i e s ( T l and T2) f o r t h e Tegat Tea Factory i n t h e Kericho D i s t r i c t are summarised i n Table 1.1. The percentage c o s t and consumption o f t h e various energy forms are shown p i c t o r i a l l y i n Figure 1.l. Fuel o i l and e l e c t r i c i t y account f o r 78% and 21% r e s p e c t i v e l y o f a11 energy costs reported. The recommendations are aimed a t reducing these costs. The s p e c i f i c energy consumption for FY 1985 was 24.4 GJ/tMT which i s h i g h by t e a i n d u s t r y standards. The achievable t a r g e t s for s p e c i f i c energy f o r t h i s f a c t o r y are assessed as 18 GJ/tMT (Target 1) and 16.5 GJ/tMT (Target 2 ) . P o s i t i v e and determined e f f o r t s are needed t o reverse t h e r i s i n g t r e n d i n energy costs which are adversely a f f e c t i n g t h e r e t u r n t o growers i n t h i s d i s t r i c t . TABLE 1.1 - OVERALL ENERGY USAGE AND COST REPORT (:FY 1'385:) ........................................................... Factory : Tegat Tea Factclry Company Limited D i s t r i c t : Kericti1-7 A l t i t u d e : 1850m C6070ft) Nl~lmitialIzapacity : 1800 tMT Heater : A i r Heater Fuel : O i l Total Froduc t i o n tMT 19'30 Energy Cunsumpt ion: E l e c t r i c i t y MWh 1045 G J 3761 k1:::Sti 764 Fuel O i 1 CRFO) Diesel O i l CID03 Total (:e:.;c l u d i rig GLN:) 13J 4862'3 Process Energy Intensit y : W i ttier ing G J / t M T NA 13-een Leaf Proc essi rig GJ/tMT NA Drying GJ/tMT NA Total GJ'tMT 74-44 A Sl~~urceEtiergy I n t e n s i t y : E l e c t r i c i t y GJ/tMT 1.89 .-.-, Fuel O i l GJ/tMT i ~51 . Diesel O i l GJ/tMT (3. 04 Total GJ/tMT 24. a4 Energy I n t e n s it y Targets : Tar get 1 G J / t M T 18.04 Target 2 GJ/tMT 16.46 P o t e n t i a l Energy Savings : Tar get 1 at: tiieved G J / t MT 6. 40 Target 2 achieved GJ/tMT 1.58 CAFTER Tl:) Energy II:~)sts : Annual Energy Cclst k:P::Sti/a 361(5 Spec if i c Energy Cost KSti/ kgM1 1.81 F'otetit i a1 C:ust Savi rigs : Target 1 achieved t::Sti / kgMf (1.43 Target 2 achieved KSti/k:gMT 0. 64 CAFTER T11) FIGURE 1.1 1.2 Taraet 1 - Short Term Enerav Savinas By adopting a vigorous energy management programme and implementing t h e short term recommendations which, i n general, r e q u i r e minimum investment levels, a Target 1 energy i n t e n s i t y of 18 GJ/tMT could be achieved. Plant energy consumption a t current production l e v e l s would be reduced t o 35 820 GJ/a which i s 26% below present consumption, a saving o f 860 000 KSh/a, o r 24% o f 1985 energy costs, as summari sed i n Tab1e 1.2. The increased green l e a f payment t o growers i s expected t o be i n the order o f 0.1 KSh/kg green l e a f (equivalent t o 0.43 KSh/kgMT.) TABLE 1.2 -TARGET 1 -SHORT TERH ENERGY SAVINGS ................................................ Factory : Teqat Tea Factory 19 JAN 1986 Energy Form Actual Target Energy Energy Actual Target Cost Cost Investment Payback Usage Usage Savings Savings Cost Cost Saving Saving GJ/tl!T GJItHT GJltHT X kKSh/a kKSh/a kKShla kKSh/a Years ........................................................................................................... E l e c t r i c i t y Generated Purchased 1.89 1.60 0.29 15 764 673 91 12 14 0.15 Fuel O i l 22.51 16.40 6.11 27 2833 2064 769 27 20 0.03 Fuel Wood Diesel O i l 0.04 0.04 Ni1 13 13 N i l Total 24.44 18.04 6.40 26 3610 2750 860 24 34 0.04 ........................................................................................................... Target 2 - Long Term Energy Savings By imp1ementi ng t h e 1ong term recommendations which, i n general, r e q u i r e some c a p i t a l investment, and subject t o f u r t h e r more d e t a i l e d evaluation o f engineering and economic f e a s i b i l i t y it i s estimated t h a t a Target 2 energy i n t e n s i t y o f 16.46 GJ/tMT could be achieved. Plant energy consumption a t c u r r e n t production l e v e l s would be reduced t o 32 755 GJ/a which i s 33% below present p l a n t consumption o r 9% below p l a n t consumption a f t e r achieving Target 1 savings. This would y i e l d a f u r t h e r saving o f 1 283 000 KSh/a o r 47% of 1985 energy costs, as summarised i n Table 1.3. The e f f e c t o f achieving t h e Target 2 l e v e l s i s expected t o f u r t h e r increase t h e green leaf payment t o growers by 0.15 KSh/kg green l e a f (equivalent t o 0;64 KSh/kgMT). TABLE 1.3 -TARGET ? -LON6 TERM ENERGY SAVINGS ................................................ f a i t o r y : Tegat Tea Factory 19 JAN 1386 Energy Form Actual Target Energy Ener,, Actual Target Cost Cost Investment Pajiack Usage Usage Savings Savings Cost Cost Savisg Saving GJ/tMT 6J/tMT 6J/tMT X kKSh/a kKSh/a kKSh/a X kKSh/a Y i :s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . --- E l e c t r i c i t y Generated 1 N i l 0.63 -0.63 178 26 400 2.2 Purchased 1.60* 0.97 0.63 lil 673* 39 495 Fuel O i l 16.40 6.62 9.78 60 2064* 959 1105 54 1150 1.0 Fuel Wood N i l 8.20 -8.20 N i l Diesel Oil 0.04 0.04 N i l N i l 13 13 N i l Ni1 Total 18.04* 16.46 1.58 3 2750* 1467 1283 47 1550 1.2 .......................................................................................................... *Achieved by T1 program Recommended P r o j e c t s t o Achieve Target Energy Savings Table 1.4 summarises t h e p r o j e c t s i d e n t i f i e d t o achieve t h e t a r g e t e d energy savings a t Tegat Ltd. TABLE 1.4 - RECDHIENDATIONS ........................... P l a n t : TegatTeaFactory 31-Jan Page 1 of 2 Project Description Energy Cost Capital Payback Savings Saving Cost Time 6Jla KShIa KSh Years Target 1 Short Term Energy Savings 1. Lag the steam separators on Nos 1 P 2 boilers. I 2. Adjust fuel-air ratio. I 3. Stop oil leaks at burner. I 4. Replace burner nozzles. I 5. Install auto temp control valve at each steam radiator. 6. ~nvestigikP replace if necessary wi thering fan 12736 060000 34000 0.04 impellers. 7. Install outlet flue gas temp indicator on each boi 1er . 8. Control withering times by use of electronic hygoaetr ic recorder. 9. Install kWh meter for wi ther i ng house. I 10.Train staff in energy moni tor ing and efficiency optimization. TABLE 1.4 - RECOHHENDATIONS .......................... Plant : Tegat Tea Factory 31-Ja Page 2 of 2 ................................................................................ Project Description Energy Cost Capital Payback Reference Savings Saving Cost Tire Chapter 6Jla KShla KSh Years t t ................................................................................ Target 2 Long Terr Energy Savings ........................ 1. Install stear engine N i l 200000 400000 2.2 4.0 generator for u ithering air. 2. Install a flue gaslair heat 3150 260000 200000 1.0 12.0 exchanger at boiler outlets adjacent t o hot feed and drier fan inlets. 3. Investigate new fuel for N i l 1338000 950000 1.0 10.0 cyclonic combustor at the Perkins Patoratic 5000 (one (1) boilers. Or dual-fuel boiler rodi fication. only) Savings shown are for cyclonic corbustor conversion of one (1) boiler. t After T1 savings have been achieved. ENERGY AUDIT REPORT E x e c u tiv e Sun~rnary THUMAITA TEA FACTORY COMPANY L I M I T E D KIRINYAGA D I S T R I C T 1.O EXECUTIVE SUMMARY Thumaita t e a f a c t o r y which was commissioned i n 1975 has been i n production f o r 10 years. I t s design, using both o i l f u e l and wood f u e l f o r r a i s i n g steam f o r a i r heating, i s based on requirements f o r q u a l i t y production and close c o n t r o l o f process operations, understandably without much a t t e n t i o n t o energy e f f i c i e n c y . Audit data and t h e f a c t o r y ' s p l a n t c o n f i g u r a t i o n a t the time o f t h e a u d i t on 24 September 1985 are summarised i n Appendix A - Energy Audit Sheet 1985 and Appendix B - Energy Survey Questionnaire. The estimates f o r energy saving opportunities are based on actual measurements or engineering-economic judgement f o l l o w i n g t h e s i t e v i s i t s . Cost and savings are approximate and additional engi neeri ng and economi c feasi b i lity i n v e s t i g a t i o n , p a r t i c u l a r l y t o take account o f continuing v a r i a t i o n s i n energy costs, w i 11 be necessary before proceeding w i t h any o f t h e p r o j e c t s i d e n t i f i e d . Indeed it should be observed t h a t since the time o f t h e 1985 audit, i n t e r n a t i o n a l f u e l o i 1 prices have fa1 l e n dramatically, w h i l e t h e economic and market prices o f both e l e c t r i c i t y and fuelwood have risen. 1.1 Present Enerqy U t i 1isation The FY 1985 energy consumption, u t i l i s a t i o n and t a r g e t energy i n t e n s i t i e s (TI and T2) f o r t h e Thu~naitaTea Factory i n t h e Kirinyaga D i s t r i c t are summarised i n Table 1.1. The percentage cost and consumption o f t h e various energy forms are shown p i c t o r i a l l y i n Figure 1.1. Fuel o i l , wood and e l e c t r i c i t y account f o r 13.4% and 52.1% and 33.3% r e s p e c t i v e l y o f a l l energy costs reported. The recommendations are aimed a t reducing these costs. The specific energy consumption f o r FY 1985 was 23.50 GJ/tMT which i s high by t e a i n d u s t r y standards. The achievable t a r g e t s f o r s p e c i f i c energy f o r t h i s f a c t o r y are assessed as 21.95 GJ/tMT (Target 1) and 20.0 GJ/tMT (Target 2). Fai t or y : Tiiuri16.ita Tea Factlc~ry I::lsri~pati L: ri~ited y D i s t r i c t : Kiritiyaga A l t i t u d e : lE Pcketit i a1 Energy Savi tigs : Tar g e t 1 a,: i rved ti G J / t M i 1.56 Tar 2 e t 2 a c h i cved GJ/tMT 1. '35 Energy 1I:13st=,: Atitiual Energy il:ost k:t