Innovating to Achieve Energy Efficiency
Innovating companies in the highly polluting steel-rerolling sector in India are introducing measures to improve energy efficiency as a result of a partnership between UNDP and the Ministry of Steel. In doing so, they are demonstrating that the industry can become more energy efficient, more environmentally conscious and more profitable. Mr. Haoliang Xu, Assistant Administrator and Regional Director, UNDP visited one such success story in Jaipur, Rajasthan and saw first-hand how the company has innovated to improve productivity and reduce specific fuel consumption.
- Haoliang Xu, Assistant Administrator and Regional Director, UNDP visits the award-winning steel re-rolling mill, MPK Steel in Jaipur during his visit to India from 13-17 Dec 2013
- The mill, with support from UNDP, the Ministry of Steel and GEF reduced its energy consumption by 30%, increased productivity by 65% and reduced GHG emissions by 40%
- UNDP partnered with the Ministry of Steel and GEF in 2004 to introduce a range of energy-efficient technologies and practices in the steel re-rolling sector
- The partnership, expanded from 30 to 300 steel re-rolling units in 2013, is expected to save US$ 20–25 million in energy costs each year
Steel re-rolling mills are a crucial link in India’s steel production but are typically associated with high rates of energy consumption and inefficient resource use. It’s a picture that steel re-rolling mills are now changing, with support from the Ministry of Steel and UNDP in India.
Since 2004, UNDP and the Ministry of Steel have partnered to introduce a range of technologies and practices in the steel re-rolling sector to achieve better than expected results. Steel re-rolling units have saved up to 25-30 percent in energy costs and reduced greenhouse gas emissions on an average by 25 percent.
Haoliang Xu, Assistant Administrator and Regional Director, UNDP visited one such unit in Jaipur, Rajasthan while on a recent visit to India. Since 2007, MPK Steel (I) Private Limited has worked closely with UNDP and the Ministry of Steel to upgrade its manufacturing unit and introduce greater energy efficiency in its operations. The unit which employees over 200 people, introduced a slew of measures to made production processes more energy efficient.
The re-heating furnace was designed to be more efficient in resource utilization. Rolling mill operations were upgraded through introducing energy efficient technologies which were customized to meet the specific needs of MPK steel. Support was also provided to ensure that installed facilities were adequately maintained. Specialized training session focused on upgrading the skills of workers on the factory floor towards improving productivity in operations.
Efforts have paid off. Productivity has increased by over 65 percent and specific fuel consumption. Environmental benefits have followed. The company has reduced greenhouse gas emissions by 40 percent.
Witnessing first-hand how the company registered such success, the Regional Director said, “This project demonstrates that pursuing energy efficiency works, not just for the environment, but for the bottom line of businesses.” The experience of steel re-rolling mills represents a winning solution that can be promoted in other countries in the region.”
Haoliang Xu was appointed Assistant Administrator and Director for the Regional Bureau for Asia and the Pacific by the United Nations Secretary-General in September 2013.
Projects and Initiatives
The project, in partnership with the Government of India and supported by AusAid, aims to upscale energy efficient interventions in the steel re-rolling mills sector and other sub-sectors of the small scale steel industry in India. This will enable mitigation of GHG emissions and lead to improvement in productivity.
Steel production is an energy-intensive process that generates a large amount of solid waste and greenhouse gases. In partnership with the Ministry of Steel, Government of India, the project aims to increase energy efficiency of steel re-rolling mills sector, reduce associated emissions and enable penetration of environmentally-sustainable, energy efficient technologies in this sector.