September 9-11, 2009

INTERNATIONAL CONFERENCE ON GREEN INDUSTRY IN ASIA

IN CONSULT (PVT.) LTD. PAKISTAN

NATIONAL EXPERIENCE IN PHASING OUT ODS SOLVENTS ITS IMPACT ON CLIMATE CHANGE AND

NEW CHALLENGES IN HCFC PHASE OUT

Pakistan is fully committed towards global efforts for the conservation of environment and is successfully heading towards

•Achieving 100% phase out targets of Ozone Depleting Substance (ODS) having higher Global Warming Potential (GWP) and substituting with Non-ODS chemicals having very low GWP to preserve not only ozone layer but also reduce their impact on climate change.

•Introducing renewable sources of energy, Energy Efficiency Standards & Process.

OUR COMMITMENT

SEQUANCE

• Pakistan, Montreal Protocol & Solvent Sector

• Examples of CTC phase out as Process and Cleaning Agent

• Approach and Strategy

• Conclusion & Future Challenges

PAKISTAN, MONTREAL PROTOCOL & SOLVENT SECTOR

• Pakistan ratified Montreal Protocol in 1992 in Copenhagen

• Pakistan is a Article-5 country as national average consumption of ODS chemicals is within 300 grams per capita

• Pakistan has commonly used 10 of the 96 substances controlled under the Montreal Protocol

• The chemicals used in solvent sector are:

- Chloroflorocarbon (CFC-113)

- Carbon Tetrachloride (CTC)

- Methyl Chloroform (TCA)

- Hydrochloroflorocarbon (HCFC-22, HCFC-141b, HCFC-142b)

Pakistan does not produce any of these chemicals. However, these chemicals are imported from different countries of the world.

PAKISTAN, MONTREAL PROTOCOL & SOLVENT SECTOR

Phase out schedule and Pakistan’s baseline for chemicals in solvent sector are as under:

•Freeze CFC & CTC at average 1995-97 by July 1999, reduce 50% by 2005, 85% by 2007 and complete phase out by 2010.

Baseline for CFC was 1679, whereas for CTC was 413 ODP tons.

•Freeze TCA by 2003 at average 1998-2000 levels, reduce 30% by 2005, 70% by 2010 and phase out by 2015.

Baseline was 2.33 ODP tons.

•The accelerated HCFC phase out plan calls for freeze by 2013 at average 2009-2010 levels, reduce 10% by 2015 and complete phase out by 2030.

The baseline survey is in process.

PHASE OUT SCHEDULE & PAKISTAN BASELINE

HCFC CONSUMPTION

• HCFC is used in manufacturing & servicing sector in Pakistan

• Manufacturing sector covers

- Air-conditioning & Refrigeration - Foam- Aerosols

ODS DATA AND THEIR APPLICATION IN PAKISTAN

Chemical Name Application Sector ODP GWP

CFC-11 Foam 1 4600

CFC-12 Refrigeration 1 10600

CFC-113 Metal Cleaning 0.8 6000

CTC Metal Cleaning & Process Agent 1.1 1800

TCA Metal Cleaning 0.1 140

HCFC 141b Blowing agent in Foam 0.11 700

HCFC 142b Blowing agent in Foam 0.065 2400

HCFC 22 Refrigeration 0.055 1700

SECTOR WISE PROJECTS COMPLETED AS ON JULY 2009

Sector Chemicals NameNo. of

ProjectGrant M US$

ODP Ton Phase out

Foam CFC-11 9 4.87 759

Refrigeration CFC-12 7 4.78 861

Metal Cleaning CFC-113, CTC & TCA 7 4.39 395

Process Agent CTC 1 0.49 80

Total 24 14.53 2095

• These investment projects were approved and funded by MLF. Out of these 24 investment projects 22 were for individual companies, one for Refrigerant Management Plan and one for CTC Sector Phase Out.

• CTC sector phase out project included 32 mini projects and over 1000 enterprises.

• The average cost effectiveness of these projects is approximate 6.94 US$ per kg.

EXAMPLES OF CTC PHASE OUT AS PROCESS AND CLEANING AGENT

TYPICAL CTC PHASE OUT PROJECT CTC USED AS PROCESS SOLVENT

PROPOSED PROCESS, TECHNOLOGY SELECTION AND JUSTIFICATION

Following were considered while selecting the process & technology:

•Minimal closure of plant to minimize socio economic impact

•The conversion process and emission control technologies were carefully selected as it contributes to the elimination or reduction of undesired emissions and to the preservation of employment. This consideration required high investment & operating cost and skilled personnel.

•The technologies were tested at lab level at the plant site with a number of solvents like chloroform, DCE and various aliphatic hydrocarbons and toluene. Finally DCE was found a viable and eco-efficient alternative and selected being less toxic than CTC in Friedel-Crafts-Reaction and easily recyclable.

FLOW DIAGRAM FOR IBAP PRODUCTION WITH CTC AS PROCESS SOLVENT

FLOW DIAGRAM FOR IBAP PRODUCTION WITH DCE AS PROCESS SOLVENT

IDENTIFICATION OF NEW EQUIPMENT

The following new equipment were identified to implement the conversion technology:

•Nitrogen generator

•Chilling Unit

•Steam Boiler

•Glass lined Reactors with stirrers

•Tubular type condensers

•Vacuum pump

•Distillate receivers

•Piping, valves, control valves and miscellaneous process control devices.

TYPICAL MACHINE USED IN METAL PARTS CLEANING BEFORE ODS PHASE OUT PROGRAM

TYPICAL MACHINE PROVIDED UNDER ODS PHASE OUT PROGRAM FOR METAL PARTS CLEANING

• It utilizes minimum volume of solvent depending on the size of machine.

• The process is hermetically closed. The release of solvent to environment is in units of ppm.

• It provides perfect recycling through a built-in permanent filtration & distillation.

• One batch should last practically very long depending on

- How much solvent would sludge contain

- How heavily soiled parts are

- What is the nature of dirt

• The process is programmable – totally electronically controlled for the most efficient performance. Practically out of human sensual mistakes.

• Electric and electronic service components (pumps, valves, fans etc) are designed for optimal – energy saving- performance.

CHARACTERISTIC OF SELECTED MACHINE

APPROACH AND STRATEGY

APPROACH ADOPTED IN IMPLEMENTING SOLVENT SECTOR PHASE OUT PROJECTS

• Selected Non-ODS alternatives with minimum GWP where practical. The potential reduction in GWP due to the use of the alternate chemicals per unit weight is as under:

ODS Chemical Non-ODS SubstitutesGWP reduction

From to %age

CFC-11 HCFC-141b 4,600 700 84.8%

CFC-12 HFC-134a 10,600 1,300 87.7%

CFC-113 Trichloroethylene 6,000 110 98.2%

CTC Perchloroethylene 1,800 10 99.4%

TCA Perchloroethylene 140 10 92.9%

• Suggested elimination where possible some cleaning operations or reduce the burden of cleaning by minimizing contamination. This has specifically worked well in the cutlery and sanitary fittings sub-sector for local use.

• Selected metal cleaning equipments with closed Vacuum Cleaning mechanism having emission level within the National Environmental Standards for the safety of workers.

• Selected alternate technology with minimum cost effectiveness. This included the capital cost and incremental operation cost.

• Selected alternate technology having minimum health, safety and environmental implications. While selection of alternative solvents, it was kept in mind that the alternate chemical shall pose minimum health and environmental hazards.

• Before finalizing the selection of alternate equipment & solvent, the users were thoroughly consulted and agreement sought.

APPROACH ADOPTED IN IMPLEMENTING SOLVENT SECTOR PHASE OUT PROJECTS

MONITORING AND IMPLEMENTATION STRATEGIES

National Ozone Cell of Pakistan is responsible for monitoring & supervision of implementation of the country program. Recognizing the importance of the program and country’s commitment, it initiated an aggressive program to provide technical assistance, create regulatory framework, conduct training and other measures including: •Technical Assistance•Fiscal & Regulatory Measures•Training •Public Awareness •Monitoring

Technical Assistance  •Assisted enterprises for the selection of alternate process, selection of appropriate equipment & solvent, engineering support including modification of civil works, provision of additional utilities etc.

•Provided “on job training” for operation & maintenance of equipment, transportation, handling, and storage of alternative chemical in factories.

•Provided technical assistance with regard to waste disposal.

MONITORING AND IMPLEMENTATION STRATEGIES

Fiscal & Regulatory Measures

•Exemption from payment of custom and excise duties on capital goods.

•Extended the same facility for items of recurring use

•Tariff adjustment to promote ozone friendly substitutes

•Regulation and control through import quota

Training  •Training of custom officers & other staff responsible for the phase out program.

 Public Awareness •Publicized the ODS Phase out program through 43 Chamber of Commerce & Industries, 7 related industrial associations and through management of 10 industrial estates

•Publicity through print & electronic media

MONITORING AND IMPLEMENTATION STRATEGIES

Monitoring A comprehensive monitoring mechanism has been established by the Ozone Cell to ensure that the investment made directly by Multilateral Fund (MLF) through implementing agencies is being fully properly utilized by the enterprises. The monitoring mechanism included the following:

•Site inspection of the Projects under implementation

•Annual three to four missions to visit each site where project implementation work is going on.

•Site inspection at the time of submission of project completion report

•Site visit where project have been completed and handing over protocols are to be signed.

•Occasional site visit after the project has been completed to ensure that the enterprise has not reverted back to using ODS and to ensure the new technology is in place.

MONITORING AND IMPLEMENTATION STRATEGIES

CONCLUSION AND FUTURE CHALLENGES

CONCLUSION

• All the individual or mini projects under Solvent Sector Phase out Program other than HCFC have been implemented. This is expected to result in annual emission reduction of 12 million ton CO2e.

• Ban on import of CTC enforced in May 2007.

• The alternate chemicals are not only ozone friendly but pose minimum effect on the global warming.

• Beside the other benefits the selected equipment has minimized the health hazards to the workers.

• Pakistan is fully committed to eliminate the remaining ODS chemicals and is aggressively working on the accelerated HCFC program.

FUTURE CHALLENGES

• Establish realistic baseline for HCFC giving due consideration to the present economic recession and energy crisis in the country.

• Availability of adequate funds to meet the required operating incremental costs.

• Soft eligibility criteria related to the post 1995 facilities and second conversions.

• Funds availability under umbrella project for very low consumers of HCFC especially in serving sector

• Availability of alternatives for economic adoption under all potential situation with minimum impact on environment, climate, energy, health & safety.

IN CONSULT (PVT) LTD. LAHORE

EXPECTED EMISSION REDUCTION AFTER IMPLEMENTATION OF ODS PROJECTS

Chemical Name

ODP

GWP reduction ODP Ton Phase out

Emission Reduction

TCO2efrom to

CFC-11 1 4600 700 759.05 2,960,295

CFC-12 1 10600 1,300 860.78 8,005,254

CFC-113 0.8 6000 110 59.60 351,044

CTC 1.1 1800 10 412.87 739,037

TCA 0.1 140 10 2.33 303

Expected CO2 emission reduction in tons after implementation of Solvent Sector phase out projects in Pakistan

12,055,933

Sr. # Company

Chemical Phase out

ODP TonMLF

Funding US$From To

1 Master Enterprises Ltd. CFC-11 HCFC-141b 205.00 1,246,300

2 Razi Sons CFC-11 Water/ Carbon dioxide 60.00 493,262

3 Synthetic Products Enterprises CFC-11 HCFC-141b 13.60 136,829

4 Thermoware CFC-11 HCFC-141b 239.60 1,390,525

5 Diamond Group CFC-11 HCFC-141b 64.10 563,339

6 Thermoware CFC-11 HCFC-141b 105.65 557,052

7 United Foam Industries CFC-11 Methylene chloride 28.60 178,200

8 Saleem Automotive Industries CFC-11 Water/ Carbon dioxide 2.50 31,603

9 Shoe Sole at Janguar Industries CFC-11 Water/ Carbon dioxide 40.00 273,667

  Total     759.05 4,870,777

Approved Projects for CFC-11 Phase Out in Pakistan

Sr. # Company

Chemical Phase out

ODP TonMLF

Funding US$From To

1 Kold Kraft Ltd. CFC-11 HCFC-141b 11.50 175,000

2 Cool Industries Ltd. (Waves) CFC-11, 12 HCFC-141b, HFC 134a 117.60 841,750

3 Singer Pakistan Ltd. CFC-11, 12 Cyclopentane, HFC 134a 17.80 205,8934 Shadman Electronic Industries CFC-11, 12 HCFC-141b, HFC 134a 15.53 236,936

5Pakistan Air-conditioning Engineering Co.

CFC-11, 12 HCFC-141b, HFC 134a 19.70 176,681

6 Mumtaz Engineers CFC-11, 12 HCFC-141b, HFC 134a 13.90 182,8667 RMP in Pakistan CFC-12 HFC 134a 664.75 2,961,500  Total     860.78 4,780,626

Approved Projects for CFC-11& 12 Phase Out in Pakistan

Sr. # Company

Chemical Phase out

ODP TonMLF

Funding US$From To

1 Treet Corporation Lahore CFC-113 Trichloroethylene 40.70 510,162

2 Treet Corporation Hyderabad CFC-113 Trichloroethylene 18.90 317,971

   Total     59.60 828,133

Approved Projects for CFC-113 Phase Out in Pakistan

Sr. # Company

Chemical Phase out

ODP TonMLF

Funding US$From To

1 Breeze Frost Industries CTC Perchloroethylene 33.2 282,056

2 Hira Farooq Industries CTC Perchloroethylene 37.5 246,493

3 Riaz Electric CTC Perchloroethylene 10.0 122,078

4 PEL CTC Perchloroethylene 26.0 166,286

5 Zafa Chemi CTC Dichloroethylene 80.0 485,701

6 Sector Phase Out CTC Perchloroethylene 335.2 2,745,645

  Total     415.2 4,048,259

Approved Projects for CTC & TCA Phase Out in Pakistan