Preventing Global Warming(2013)

Principal Initiatives in Fiscal Year 2013

• Energy Consumption and CO₂ Emissions in Japan

  DIC places a priority on energy consumption per unit (ton) of production, a statistic that indicates energy efficiency. In fiscal year 2013, energy consumed by the DIC Group in Japan amounted to 113,500 kiloliters, calculated in kiloliters of crude oil, down 0.2 percentage point from fiscal year 2012, while energy consumption per unit of production declined 1.5%, reflecting the utilization of oil byproducts from production processes and the recovery and use of waste heat, as well as to other initiatives. As a consequence, the Group attained its target for reducing domestic energy consumption for the period.

  DIC

  DIC’s production volume increased 1.5% in fiscal year 2013, but energy consumption rose only 0.5%. This was primarily due to the fact that despite using a greater amount of electric power, energy consumption per unit of production declined 0.9%, thanks to the use of oil byproducts from production processes and processes and the recovery and use of waste heat, as well as to other initiatives.

  DIC Group Companies in Japan

  Although the production volume of DIC Group companies in Japan increased 1.0%, energy consumption decreased 2.1%. This reflected steps taken in collaboration with DIC to reinforce joint energy management, as well as the introduction of management by objectives, as well as the exchange of information on countermeasures and the establishment of energy-saving promotion committees at each production and R&D facility, the activities of which include confirming the progress of initiatives, engaging in discussions and conducting patrols. Energy consumption per unit of production by DIC Group companies in Japan was down 3.1%.

  The DIC Group’s CO₂ emissions in Japan in fiscal year 2013 increased 6.4% from the previous fiscal year, to 244,377 metric tons. Major factors behind this result were an 11% jump in CO₂ emissions from the consumption of purchased electric power, as the country’s nuclear power generating facilities remaining offline, increasing dependency on thermal power and pushing up the emissions factor for CO₂ emissions from the use of electric power; the start of operations at a new facility at DIC’s Kashima Plant for the production of polyphenylene sulfide (PPS)—an energy-intensive process—built in response to rising demand in this promising business; a decline in operating rates for certain cogeneration facilities; and a slight increase in overall production volume.
  Despite efforts aimed at promoting fuel conversion from fuel oil to natural gas. implementing measures to facilitate energy savings, reusing oil byproducts as fuel and increasing use of renewable energy, these initiatives did not fully offset increases due to the final two factors indicated in the preceding paragraph. In fiscal year 2014, the DIC Group in Japan looks to further cut CO₂ emissions by improving its energy efficiency.

  

  CO₂ Emissions and Energy Consumption Index per Unit of Production

  

  Energy Consumption (Crude Oil Equivalent) and Energy Consumption Index per Unit of Production

• Promoting Energy-Saving Initiatives in Japan

  The DIC Group promoted a number of energy-saving initiatives in Japan in fiscal year 2013, some of which are presented below. These initiatives yielded commendable results.

  Saving the equivalent of 16,500 drums of oil through 396 energy-saving initiatives

  Energy savings from initiatives at DIC Group production and R&D facilities in Japan were equivalent to 3,300 kiloliters of crude oil, or 16,500 200-liter drums of oil. This represented 2.9% of total energy consumption by domestic DIC Group companies throughout the previous fiscal year.

  

  Saving the equivalent of 7,200 drums of oil through the effective reuse of oil byproducts

  In Japan, energy savings from the use of oil byproducts from production processes as boiler fuel at certain sites were equivalent to 1,446 kiloliters of crude oil, or 7,200 200-liter drums of oil. This represented 1.3% of total energy consumption by domestic DIC Group companies throughout the previous fiscal year.

  

  Launching and expanding application of a system the provides visual clarification of energy use

  DIC has created a system that employs visual representation to illuminate energy use through the real-time measurement and monitoring of energy use for each of its facilities, making it possible to eliminate wastefulness and inconsistencies, thereby optimizing overall energy use by the DIC Group in Japan. Launched at the Hokuriku Plant, winner of the Chairman’s Prize at the 2012 Energy Conservation Awards, the system was subsequently also introduced at the Chiba, Sakai and Kashima plants and at the Central Research Laboratories. In fiscal year 2014, application will be expanded to include the Saitama, Komaki and Yokkaichi plants, enhancing visual clarification of energy use, with the aim of further rationalizing energy use in Japan.

  

  TOPICS

  Analysis of Chiller Operating Efficiency Enables DIC Filtec to Significantly Reduce Consumption of Electric Power

  At the Satte, Saitama Prefecture, plant of subsidiary DIC Filtec, Inc., a manufacturer of plastic films, electric power used in a process that cools melted raw materials and forms them into films accounts for approximately 35% of total electric power used at the plant in the summer. In fiscal year 2013, the company spent six months studying and analyzing temperatures and humidity levels during this process, after which it revamped systems used at the plant to produce, and to control the production environment for, chilled water. By shifting this process to nighttime hours, when atmospheric temperatures are comparatively low, DIC Filtec succeeded in substantially increasing the operating efficiency of chillers, which in turn enabled it to reduce its annual consumption of electric power by approximately 466,000 kilowatts. Selected as an outstanding example of the rationalization of electric power, this initiative was awarded a grand prize for fiscal year 2013 by the Japan Electric Association Kanto Branch.

  

  In fiscal year 2012, DIC reported indirect emissions in one category of Scope 3, “upstream transportation and distribution.” In fiscal year 2013, the number of categories increased to six (including “capital goods” and “waste generated in operations”).

• Initiatives to Reduce CO₂ Emissions Overseas

  In fiscal year 2013, energy consumption by overseas DIC Group companies rose 10%, to 208,700 kiloliters, equivalent to 700 kiloliters of crude oil (up 15% from fiscal year 2012). CO₂ emissions were 478,579 tons (up 16% from fiscal year 2012). These increases reflected the addition of production companies in the Asia–Pacific region as a result of acquisitions.

• Initiatives to Reduce Energy Consumption Overseas

  While laws and regulations on infrastructure differ between countries and regions, DIC strives to save energy and conduct efficient operations wherever it is active and to set precedents for the chemical industry. In fiscal year 2013, the Company implemented 65 emissions reduction initiatives overseas. These initiatives achieved reductions in annual energy consumption of 2,229 kiloliters (equivalent to 1.2% of overseas energy consumption in fiscal year 2012) and in CO₂ emissions of 5,018 tons (equivalent to 1.2% of overseas CO₂ emissions in fiscal year 2012).

  Region	Number of initiatives	Energy consumption reductions (kl/yr)	CO₂ emissions reductions (tons of CO₂/year)
  PRC	20	1,292	2,941
  Asia–Pacific	37	597	1,362
  Other	8	340	715

  Americas

  In October 2013, the Sun Chemical Group rolled out a new internal Web-based environmental data collecting system called EcoTrack at group companies in the United States and 13 other countries in North, Central and South America in which it has operations, facilitating the integrated management of energy, water, waste and safety data for 153 sites. Going forward, the Sun Chemical Group will promote efforts to provide visual clarification of data related to production, energy-saving initiatives, CO₂ emissions and other key sustainability metrics for each of its sites to promote the sharing of information and to facilitate the groupwide deployment of effective measures

  Europe

  Sun Chemical has implemented a solar panel production system in Wavre, Belgium, with a total installed capacity of 203 kWp. The solar panels, which have been positioned on the roof of the main building and on an adjacent parking lot, are expected to generate a total of 175 MWh of renewable energy annually. More than 50% of this renewable energy will be consumed inside the plant, while the excess will be sold to the grid to benefit other energy users. On another front, Sun Chemical Group companies in Germany obtained certification under ISO 50001, the International Organization for Standardization’s standard for energy management systems.

  

  Solar panels in Wavre, Belgium

  

  Solar panels in Wavre, Belgium

  People’s Republic of China (PRC)

  In November 2013, the energy officers of 16 sites in the PRC gathered at Changzhou Huari New Material Co., Ltd., in the city of Changzhou, for a conference to discuss energy management issues and measures. Participants reported on the results of fiscal year 2013 initiatives, confirmed the progress of energy-saving plans and discussed useful deployments. Authorities in the PRC are encouraging companies to switch from light oil to a town gas and to make use of an active biodiesel refined from vegetable matter. DIC Group companies in the PRC are exploring the feasibility of making this switch, examining such considerations as infrastructure and site location. Shanghai DIC Ink Co., Ltd., which manufactures printing inks in Shanghai, started using biodiesel in 2013. The company plans to replace 90% of its boiler fuel with biodiesel in fiscal year 2014.

  Other initiatives
  Nantong DIC Color Co., Ltd.: Reduced volume of boiler fuel used by using a waste heat recovery system (condensed water drain) to recover waste and exhaust heat
  Changzhou Huari New Material Co., Ltd.: Reduced fuel use by switching to a more efficient operating method for its combustion furnace
  Zhongshan DIC Colour Co., Ltd.: Switched from its existing light oil-fueled steam boiler to a more energy-efficient electric steam generator

  

  Energy management conference in Changzhou, in the PRC

  

  Biodiesel use at Shanghai DIC Ink Co., Ltd.

  Asia–Pacific

  In September 2013, 25 energy officers from 19 sites in 11 countries and territories in the Asia–Pacific region gathered for a conference to discuss energy management issues and measures. Participants discussed the issue of increases in energy consumption in emerging economies accompanying economic expansion and the horizontal deployment of measures that have proven effective in addressing issues specific to the region.

  Other initiatives
  Siam Chemical Industry Co., Ltd. (Thailand): Reduced consumption of electric power by replacing old office lighting fixtures with light-emitting (Indonesia): Reduced heat loss by modifying the steam injection washing process of its reactor equipment
  PT. DIC Graphics (Indonesia): Reduced heat loss by modifying the steam injection washing process of its reactor equipment DIC India Ltd.：Reduced consumption of electric power by fixing compressed air leaks

  

  VOICE

  Optimizing energy helps to optimize craftsmanship

  

  Promoting the visual clarification of the volume of energy used by each piece of equipment helps not only to eliminate wastefulness and inconsistencies but also to improve product quality. For example, by optimizing the timing for adding heat to tanks used to mix resins, we can improve the precision of the resulting products. Looking ahead, we will delve further into issues to apply advanced control data to benchmarks to facilitate management on a per-product, rather than on a monthly, basis.

  General Manger, Production Administration Div.
  Michio Uchiyama

• Cogeneration and Renewable Energy

  Cogeneration System-Based Independent Power Generation

  With the aim of increasing energy efficiency and as a precaution against natural disasters, the DIC Group in Japan is promoting the systematic adoption of cogeneration and the use of energy from renewable sources. Cogeneration systems burn fuel to drive turbines, facilitating the production of electric power and the recovery and reuse of waste heat (steam and hot water), thereby improving energy efficiency. DIC currently has cogeneration systems at five domestic plants (Chiba, Shiga, Saitama, Gunma and Tokyo) with a combined maximum capacity of 190,000 kW. In fiscal year 2013, electric power produced by these systems accounted for 15% of the total volume of electric power used by the DIC Group in Japan. In autumn 2015, DIC will install a gas turbine-powered cogeneration system at its Kashima Plant. DIC is also considering updating the cogeneration system at its Chiba Plant, which currently has a capacity of 6,000 kW.

  

  Conceptual Diagram of Cogeneration System

  Using Renewable Energy

  In Japan, the DIC Group actively promotes the use of energy from renewable sources (biomass, wind and solar power) at suitable sites. In fiscal year 2013, DIC dramatically improved the generating capacity of biomass boilers (2,000 kW and 20 tons of steam per hour) and wind power generation (4,600 kW). DIC built an 80-kilowatt solar power plant at the Kashima Plant in Ibaraki Prefecture, as a result of which its renewable energy output increased 6.1% from fiscal year 2012. Renewable energy accounted for 7% of domestic DIC Group energy consumption. As a result, we reduced CO₂ emissions by 32,989 metric tons in calendar 2013.

  

  CO₂Emissions Reductions at DIC’s Kashima Plant

  Electric Power Produced through Cogeneration and the Use of Renewable Energy

  DIC Group (Japan)	Electric power consumed (a)	Electric power from cogeneration (b)	(b) as a % of (a)	Electric power from renewable energy (c)	(c) as a % of (a)
  FY2012	286,901, 000 kWh	46,974, 000 kWh	16.4%	19,732, 000 kWh	6.9%
  FY2013	292,637, 000 kWh	44,268, 000 kWh	15.1%	20,938, 000 kWh	7.2%
  Change	+5,73, 000 kWh	–2,706, 000 kWh	–1.3%	1,207, 000 kWh	+0.3%
  Change (%)	+2%	–5.8%		+6.1%

  • Data for fiscal year 2013 is for January–December.

  Column

  Using Cogeneration and Renewable Energy to Power Production of PPS Polymer at the Kashima Plant

  Thanks to its outstanding heat and impact resistance, polyphenylene sulfide (PPS) polymer (an engineering plastic)—which DIC produces at its Kashima Plant—plays an important role in making vehicles lighter, a factor that continues to support soaring demand. However, these distinctive properties mean the production of PPS polymer requires approximately 10 times the energy used to produce conventional polymers. For this reason, DIC makes extensive use of cogeneration, biomass boilers, wind and solar power and other environment-friendly forms of electric power generation at the Kashima Plant, an approach that also helps curtail emissions of CO₂. In fiscal year 2014, DIC will install several new natural gas-fueled boilers, CO₂ emissions from which are minimal, and scale back the operation of existing high-emission heavy oil-fueled boilers. Through efforts such as these, DIC aims to increase the weighting of energy from cogeneration systems to 7% of total energy used by the DIC Group.

  

  PPS polymer helps to reduce vehicle body weight

  

  

  VOICE

  We recognize that energy efficiency equals cost competitiveness.

  

  At many DIC Group sites overseas, turning off not only lights and air conditioning but also pumps and other power-driven equipment when not needed has become second nature to employees and initiatives aimed at reducing base load need are yielding impressive results. This thanks to active efforts to instill awareness of the fact that reducing “lost costs” is essential to improving product competitiveness. I guess you could say that we have succeeded in creating a virtuous circle in which the steady, ongoing implementation of efforts by employees yields surprisingly effective cost reductions, which in turn further motivates employees to step up their efforts.

  Manager in charge of efficiency, Production Administration Div.
  Kazuo Kawaguchi