Energy efficiency & climate change

Energy efficiency & climate change

Striving for energy efficiency in manufacturing offers both environmental and economic benefits by reducing emissions and lowering manufacturing costs. We initiated an Energy Efficiency Enhancement E3 program in 2010 for identification and implementation of energy reduction potential at manufacturing sites.

The potential energy efficiency projects were identified by conducting regular energy audits at manufacturing sites. The manufacturing sites representing 94% of our energy use have now been audited. In 2013, the focus has been on the implementation of improvement projects, and in conducting follow-up audits. Total of 388 improvement projects have now been completed at 26 sites, generating annually 174,000 MWh energy reductions and EUR 7 million cost savings since 2010. Six sites have now completed all of the identified improvement projects.

Improving energy efficiency

Choices for energy efficiency improvement may include simple adjustments in operating methods, increased process efficiency, or more advanced solutions, such as utilizing waste heat in the local communities nearby Kemira’s operations. As an example, in the Rotterdam site in the Netherlands, introduction of variable speed drives was a significant energy efficiency driver, and in the Krems site in Austria, optimization of steam usage generated considerable energy reductions. Follow-up audits at manufacturing sites have generated a collection of best practices which will be used across the organization where applicable.

Energy Efficiency Index tool defined to measure progress

In 2013 we have defined the Kemira Energy Efficiency Index (EEI) to measure the company’s energy efficiency in manufacturing operations. The Energy Efficiency Index is the sum of site specific measures. The index is calculated individually for major sites that cover > 90% of Kemira’s total energy use, and site specific indexes are consolidated to form the Kemira EEI Index. The index is not dependent on the impact of changes in the production mix and volumes. The index enables us to monitor energy efficiency from the consolidated perspective as well as locally at each site, reflecting on the actual improvements we have achieved.

Kemira Energy Index

* Base year


SUMMARY OF ENERGY INDICATORS
GRI-G4 indicator 2013 2012 2011 2010 2009
Purchased energy
Fuel consumption, ktoe 42 49 56 54 54
Fuel consumption as raw material, ktoe 120 114 121 116 105
Purchased electricity, TJ 10,077 9,620 10,657 10,346 9,718
Purchased heat, TJ 4,553 4367* 4,814 4,726 4,327
Purchased energy by primary sources, TJ1 29,487 29,284 32,122
Energy balance
Purchased fuel as energy source, TJ EN3a-b 1,755 2,028 2,345 2,261 2,261
Purchased electricity, TJ EN3c 10,077 9,620 10,657 10,346 9,718
Purchased heat, TJ EN3c 4,553 4367* 4814* 4,726 4,327
Total energy purchased, TJ EN3c 16,386 16,015 17,816 17,333 16,306
Total energy sold EN3d 1,544 1,676 1,859
Total energy consumption, TJ EN3e 14,842 14,339 15,957
Energy intensity2
Energy intensity, TJ/ton EN4 0.00314 0.00306 0.00325
Reduction of energy consumption3
Change in energy consumption, TJ EN5 503 -1,618
* Data corrected due to more comprehensive data available in 2013.
1 The amount of energy Kemira uses through the purchase of electricity, steam and heat. Energy delivered off-site is included.
2 Kemira has calculated the energy intensity by dividing total energy consumption with the annual production volume. The total energy consumption includes fuel used for energy, electricity, heating, cooling and steam.
3 The types of energy included in the reductions include; fuel used for energy, electricity, heating, cooling and steam. The basis for the energy reduction is energy compumption in one year period.
The calculations have been made according to GRI G4 reporting guidelines. The source for conversion factors used is the International Energy Agency (IEA). Where specific information has not been publishded on production efficiencies by energy source, expert estimates have been made based on historical data.

Climate change

Limiting climate change will require substantial and sustained reductions of greenhouse gas emissions. The 5th report of The Intergovernmental Panel on Climate Change (published in 2013) is expected to increase political pressure for a higher ambition level. There is also an ongoing active discussion in the EU regarding the EU 2030 climate and energy policy framework. Kemira is carefully following the public discussion on energy and climate policy development for anticipating the potential implications on our operations.

In 2013 Kemira defined the Kemira Carbon Index to monitor our CO2 performance from both consolidated and individual manufacturing site perspective. The Kemira Carbon Index covers CO2 emissions of Scope 1 and Scope 2 excluding direct emissions from chemical processing, and is not dependent on production structure, production mix or volumes.

Based on our work to define the Kemira Energy Efficiency and Carbon Indices, the results from the E3 energy efficiency enhancement program, and considerations about stronger political pressure on reducing CO2 emissions, Kemira has decided to set a long-term target for CO2 emission intensity from our manufacturing operations.  The target is to reduce the value of the Kemira Carbon Index to or below 80 by the end of 2020, in comparison to the Carbon Index value of 100 in baseline year 2012.

 

Kemira Carbon Index (includes Scope 1 and Scope 2 emissions)


SUMMARY OF GREENHOUSE GAS EMISSION INDICATORS
GRI-G4 indicator 2013* 2012 2011 2010 2009
Releases into air, CO2eq 1,000 tonnes
Direct greenhouse gas emissions (Scope 1)1 EN-15 133 147 180 182 186
Indirect greenhouse gas emissions (Scope 2)2 EN-16 904 950 1054
Other indirect greenhouse gas emissions (Scope 3)3 EN-17 2,696 2,677
Total greenhouse gas emissions4 3,734 3,774
Greenhouse gas emissions intensity per 1000 tons of production5 EN-18 0.787 0.800
Change in greenhouse gas emissions6 EN-19 -40
*In 2013, all greenhouse gases are included in the calculation. In previous years, only CO2 emissions were reported.
1 Greenhouse gas emissions from sources that are owned or controlled by Kemira (scope 1 of the WRI/WBCSD GHG Protocol). The source for the emissions factors used is GHG Protocol. Data covers all of Kemira's production sites according to Kemira consolidation rules.
2 Greenhouse gas emissions from the generation of purchased electricity, steam and heat that is consumed by Kemira (scope 2 of the WRI/WBCSD GHG Protocol) GHG emission are calculated as CO2 equivalents which includes CO2, CH4, N2O, HFCs, PFCs, SF6, NF3.The sources for the emission factors used are the International Energy Agency (IEA), the UK government's Department for Environment, Food and Rural Affairs (DEFRA), Motiva Ltd. and energy utility companies. As many utility companies often publish their specific emissions factors during Q2 or Q3 of each reporting year, previous years' factors have been used. Data covers all of Kemira's production sites according to Kemira consolidation rules.
3 Greenhouse gas emissions from Kemira's value chain (Scope 3 of WRI/ WBCSD GHG Protocol). The calculation is based on the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard and a supporting guidance document Guidance for Accounting & Reporting Corporate GHG Emissions in the Chemical Sector Value Chain. Scope 3 emissions have been calculated since 2012.GHG emission are calculated as CO2 equivalents which incluldes CO2, CH4, N2O, HFCs, PFCs, SF6, NF3.The sources for the emission factors used include the guidance document for the Chemical Sector, the UK government's Department for Environment, Food and Rural Affairs (DEFRA), the International Energy Agency (IEA), Ecoinvent, CEFIC and ECTA. Data covers all of Kemira's production sites according to Kemira consolidation rules.
4 Total greenhouse emissions including Scope 1, Scope 2 and Scope 3
5 Kemira has calculated the GHG emissions intensity ration per production volume (1000 tons).Direct GHG emissions (Scope 1), indirect GHG emissions from energy consumption (Scope 2) and other indirect GHG emissions (Scope 3) are included.
6 Reduction of Scope 1, Scope 2 and Scope 3 GHG emissions have been calculated for 2013.

Greenhouse gas emissions (t CO2 eq)

Scope 3 by largest greenhouse gas emission sources in the value chain (%)

NOTE: Other includes categories of Capital goods, Fuel and energy related activities, Waste generated in operations, Business travel, Employee commuting and Upstream leased assets (leased offices)

Please see complementary specific standard disclosures material for the focus area in the GRI report sections Responsible supply chain and Responsible manufacturing.

 

Visit Kemira.com – Kemira's Bradford site uses solar panels to generate energy with zero emissions.

Visit Kemira.com – Energy recovery project to utilize waste heat generates significant cost savings in Kemira's Kuusankoski site.