Increased Profit through Energy Efficiency in Indonesian Textile Industry

 

A textile company in West Java, Indonesia; has significantly reduced its energy consumption and saved up to USD 170,000 annually in energy costs after having a waste heat recovery (WHR) technology installed. This technology installation is part of a development partnership program, or commonly known as DPP.

 

In Indonesia, the textile industry is one of prioritised industries that generates significant revenues, employs many people (labor intensive), and supplies a huge domestic demand for textile products. Textile industry is also known for its high energy use, in which energy is the main source for company’s expenditure. To maintain its competitiveness, Indonesian textile companies need to implement good energy management system to reduce energy consumption and increase energy efficiency which eventually leads to reduced energy cost. There are various opportunities to increase energy efficiency in textile plants, many of which are cost-effective. However, due to limited information on how to implement energy-efficiency measures, many companies are still not aware on how to increase their energy efficiency. To get such information or even learn about energy efficiency measures is still an issue for many textile companies, especially given the fact that majority of textile plants in Indonesia are small and medium companies (SMEs) and family-owned business. Therefore, it is important to prepare and disseminate the know-how on energy-efficiency technologies and practices to the textile plants.

 

Policy Advice for Environment and Climate Change Program (PAKLIM) in support to the Ministry of Industry has been working together with Brückner Textile Technologies Gmbh & Co. Kg and Thies Gmbh & Co. Kg in a project titled Development Partnership with Private Sector (DPP) since the signing of its cooperation in October 2013. The cooperation is also strongly supported by Indonesian Textile Association (API) and German Engineering Association (VDMA).

 

The project introduced the benefits of energy efficiency solutions particularly in waste – heat recovery (WHR) technologies through technology awareness and capacity building. The DPP supports the willingness and the preparedness of the industry actors to invest in and implement the required technological changes.

 

Through this project, a WHR technology has been installed as a pilot in the first half of 2014 at PT. Coats Rejo, Bogor, West Java. The first installation was directly assisted by Thies Gmbh. A workshop was conducted in November 2014 for capacity building supported by German experts and focused on WHR and micro turbine for the textile industry. Actively participated by Indonesian Government representatives, various textile companies, and API; an overview of energy management and green technology were elaborated, which should help them in selecting better alternatives for energy saving investments.

 

To share the results from the WHR pilot project and disseminate the lessons learned to other textile companies, PAKLIM together with MoI and API held a Dissemination Event on 11th March 2015 at Bandung.  More than 40 participants including representatives from 15 textile industries, Ministry of Industry, Ministry of Environment and Forestry, Ministry of Energy and Mineral Resources, API, and the textile research center (BBT) participated in this event. In this occasion, two private sector partners from Germany (Brückner Textile Technologies and Thies) shared not only the latest textile technology from their company, but also market expertise in energy efficiency solutions using WHR and micro turbine.


Thies GmbH & Co. KG
, whose Waste Heat Recovery technology was installed at PT Coats Rejo, presented the result of the commission. PT. Coats Rejo, which manufactures threads for domestic demand and export, was selected as the pilot installation, based on the company’s willingness and priority to invest in modernizing its equipment to cut energy costs and maintain its good environmental standards.  Its plant uses a combination of electricity and steam from natural gas for its energy sources. WHR enables the heat to be recovered from hot waste streams to pre-heat incoming fresh water for steam. The data produced from the operation of the WHR shows a significant result: energy saving of up to 1,091 kWh/h. By assuming that electrical energy costs US$ 0.10/hour and thermal energy costs in Indonesia is around US$ 0.008/hour, the monetary saving is around US$ 7.3/hour. Thus, PT. Coats Rejo is now able to save up to 172,265 USD/year from reduced energy costs with payback investment period of only 7 months.

 

 

Not only enabling PT. Coats Rejo to reduce its energy costs, WHR technology has also succeeded in cutting down the plant’s CO2 emission by 709 kg every hour. Additionally, it contributes in maintaining biodiversity by releasing much cooler waste water into the environment, thus less harm for the environment. The key component of a WHR system is the energy interchange that controls the effluent and fresh cold water. A simple concept with remarkable impact, which can reduce further damage on the environment, reduce energy cost, and at the same time improve the water management system. That is why WHR is also called as a “green technology”. This is the kind of investment that not only makes textile companies more competitive by reducing its energy costs, but also helps the Indonesian government fulfilling its goals in reducing  greenhouse gas (GHG) emission in 2020 by 26% compared to business as usual scenario independently or 41% with international support.

 

The DPP textile initiative is in line with the Indonesian government program launched in 2007 to revitalize the textile industry. The program aims to help the textile industry by giving incentives and financing mechanisms to qualified plants to replace the old machinery with modern, energy efficient and environmentally friendly machines and equipment. “In 2015, the Ministry of Industry hopes that the program could stimulate investment with a total of IDR 1 trillion in more energy-efficient types of machinery", said Ibu Elis Masitoh, the representative from Directorate Textile and Multifarious Industry at the Ministry of Industry, during her presentation in the Dissemination Event. “This year we are focusing on knit and weaving plants. We have streamlined our procedure, now it takes only one week to get investment reimbursed after application accepted”, she explained, which received enthusiastic responses from the participating industry. One such textile company that has successfully accessed the program was PT Trisulatex, which has replaced a host of its machineries under the program, i.e. : weaving machine, knitting machine, texturizing machine, and finishing machine.

 

The Dissemination Event achieved yet another objective by facilitating discussion forum and network meeting between the industry and government of Indonesia which is necessary for updating MoI’s technology database to ensure that they are in accordance with the industry and market demand. Updated MoI database on product specification and price also plays an important role in the success of revitalization program.

 

Although still in its early stage, it is evident that the DPP textile project is already delivering results. As emphasized by Dr. Markus Francke who acts as the Team Leader of PAKLIM Work Area Industry in his welcome remarks during the event: “Government needs to work together with the private sectors to achieve GHG emission target, while at the same time, when private sectors invest in energy-efficient technology, not only sustainability will be achieved, but also the financial profits gained.”