Register Of Environmental Impacts

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1: Ventilation shaft

2: Ventilation shaft

3: Boiler house

4: WW discharge

5: Solid waste

Quality Quantity

Quality Quantity



Quality Quantity



VOC mg/yr

Dioxin m3/yr


m3 /yr

BOD kg/yr



SOx m3/yr


m3 /yr

Fat kg/yr



NH3 m3/yr


m3 /yr

Dry matter kg/yr




m3 /yr

Detergents kg/yr


6: Waste segregation

7: Oils & lubricants

S: Odor

9: Noise

Quality Quantity

Quality Quantity



Quality Quantity

Paper kg/yr

Waste oill/yr n/yr



Noise level dB

Plastic kg/yr

Oil barrels

Wood kg/yr

Glass kg/yr

Figure 4.5 Determining Sources and a Register of Environmental Impacts

Figure 4.5 Determining Sources and a Register of Environmental Impacts water contamination these are the areas for storage of chemicals, oils, lubricants, fuels, and temporary disposal sites for other waste materials.

The next step is to establish the annual quantities and qualities (compositions) of emissions, releases and discharges at identified points of impact, packaging waste disposal and the presence of any noise, odors or other irritants.

This is to be followed by analyses of materials and waste handling and storage procedures, environmental risks prevention (like spills, accidents, fire, etc.) and emergency procedures.

When an environmental audit is conducted in concurrence with an energy audit, then data on energy consumption including transport, and water and raw material use will already have been collected as a part of the energy audit, as shown above.

The considerations described so far referred mostly to what is known as direct impacts, i.e. those which arise directly from the business operations over which the company is able to exercise a high degree of control.

Indirect impacts are, by their nature, more difficult to assess because they generally arise from activities remote from the company site, and therefore are largely beyond the direct control of the company. Although the company cannot control them directly, it should recognize their existence and significance. One way to do that is to engage suppliers and subcontractors for waste disposal services and require their statements on environmental impacts.

Another category for which data are required is environmental compliance costs. This is not such a straightforward task because these costs are usually distributed over several accounts and some are even hidden because nobody is made explicitly aware of them or they are not used in business decisions. The main components of environmental costs are:

• conventional (or direct) compliance costs;

• potentially hidden or indirect costs such as administration, legal, transportation, etc.;

• health and safety costs;

• contingent or future costs;

• intangible costs.

The ultimate aim of an environmental audit is the identification of all environmental issues at a factory and the preparation of an environmental pollution inventory or register. This register should include all the significant environmental impacts arising from the company's operations (see Fig. 4.5); it should describe the procedures employed in identifying and quantifying the impacts and screening out those which are insignificant.

4.4.6 Assessing On-Site Metering and Control Equipment

On-site metering is important because it provides first hand information on energy and environmental performance but only if it is accurate enough! If metered data are not used regularly, it is very likely that the meters are not calibrated regularly either or that the log book entries are not very reliable. The truth is that if log books are not checked, the entries are at best approximate, and at worst quite random. Therefore, the following needs to be checked:

• how energy consumption and environmental impacts are metered and monitored;

• how the operation of the equipment/processes is controlled;

• the accuracy and reliability of existing metering equipment.

Depending on the extent of reliable on-site metering, an EEA metering plan has to be prepared in order to provide a complete picture of energy and mass balances based on complementary on-site measurements performed during the course of EEA.

Often, the existing metering system will not be sufficient to provide all necessary data for EEMS implementation and additional metering will be required (see Toolbox III-2). One rule of thumb suggests that in plant metering should be installed where annual energy and environmental costs exceed five times the cost of the meter. The extent of additionally required instrumentation for EEMS implementation has to be established during energy and environmental auditing along with appropriate data collection and handling procedures.

4.4.7 Measurement Plan

When conducting a detailed energy and environmental audit, it is usually required to carry out on-site measurements with portable instruments in addition to stationary ones. There is a direct relationship between the extent of data collection and the subsequent evaluation of performance improvement opportunities. While insufficient data may prevent the identification of some performance improvement opportunities, a very extensive audit may prove unnecessary and wasteful by diverting funds and time from more rewarding improvement opportunities.

To ensure that neither too many nor too few measurements are taken, a measurement plan has to be prepared taking into account the following factors:

• the purpose of measurement;

• foreseeable performance improvement measures (see Toolbox III-2).

These factors should be identified during the initial stage of an audit and plant inspection. A well prepared measurement plan will ensure that measuring results will serve as a good basis for identifying performance improvement opportunities. The example of the sterilization plant of our tuna cannery case study is shown in Figure 4.6. This presents a simplified chart of the sterilization process (retorting) together with related equipment (cooling tower and water tanks). The figure illustrates the measuring points and provides a table with quantities to be measured. The purpose of the measurement is to establish energy and mass balance at the sterilization process, and to identify opportunities for performance improvements through better controls, waste heat recovery and improved operational procedures.

4.4.8 Timing

It is important to choose a representative time for the execution of measurements, especially for manual measurements. Generally, the measurement results of interest are those which represent the normal operation of the plant. Therefore, while preparing the measurement plan, we should satisfy ourselves that production circumstances will be normal and that all units that are usually in operation will be in operation during the measuring campaign. Also, the plant should be running undisturbed for a period long enough to be in equilibrium before measurements begin (i.e. to avoid start-up transients during measurements).

Depending on the type of operation, measurements should extend over a week, a day, or at least over a couple of full batches in the case of batch operations.

It is also important to note that the results of measurements from the selected time interval and the subsequent analysis results will be used to extrapolate the effects of any performance improvement

Make Up Water m5 Water out

o QM10 Q

Condensate Air discharge

Compressed Water in M9 Steam a'r o QM10 Q

Condensate Air discharge

Product out

Measuring point




Duration of measurements

Frequency of readings


Air in temperature Relative humidity Mass flow rate


7 days

15 min


Air out temperature Relative humidity


7 days

15 min


Water in temperature Water mass flow rate



◦e kg/s

7 days

1 h


Water out temperature



7 days

1 h


Make up water temperature Mass flow rate of make up water


◦e kg/s

7 days

15 min


Water temperature



7 days

1 h


Water temperature



7 days

1 h


Water mass flow rate



7 days



Water mass flow rate



7 days



Steam mass flow rate



7 days

15 min


Air mass flow rate



7 days

15 min


Condensate mass flow rate



7 days

15 min

Figure 4.6 Sample Measurement Plan

Figure 4.6 Sample Measurement Plan measure cumulatively over a period of one year. This is an additional reason to be careful when deciding on the time period for carrying out measurements.

4.4.9 Records and Note Keeping

It is very important to keep good records on where, how and what has been measured in order to be able to use measurement results correctly during the back-to-the-office analysis. A good practice is to use prepared measurement plans (as in Fig. 4.6) and related forms for the different tasks to be performed and insert the measurement results later along with comments and observations made during the measurements.

We should be aware that EEA at a large company is a complex task, consisting of a number of activities condensed over a short period of time, and without proper note keeping, one might not be able even to decode one's own scribbling when back in the office some weeks after the field work has been completed.

4.4.10 Instrumentation

There is no reason to use instruments which have an unnecessary high degree of accuracy when it comes to manual or portable measurements. Precision instruments are expensive and are often easily damaged when used in industrial conditions. The accuracy of results is normally determined more by the manner in which measurement equipment is used, the manner in which measurement is executed and measurement results are processed, than by the accuracy of measurement instruments. Measurements should always be as direct as possible.

4.4.11 Calculations

After the measurement campaign is completed according to the plan, measurement results become inputs for the extensive analysis of the operational performance of the observed processes. Part II of the book will elaborate on how calculations and subsequent analyses are carried out.

It is important to note that performance improvement opportunities are evaluated based not only on calculations, but also on other qualitative data and observations from the audit, such as capacity utilization, control procedures, production planning routines, maintenance practices employed, etc.

Specifically for environmental impacts, where measurements may sometimes be too expensive or too complex, calculations can serve as an indirect or surrogate method for quantifying the amounts of pollutants. Generally, there are quantitative, qualitative and indicative surrogates. Quantitative surrogates give a reliable quantitative picture of, for instance, flue gas amounts, based on combustion mass balance calculations (see Toolbox III-5 and III-13). Qualitative surrogates give information on, for instance, flue gas composition, based on combustion process analysis and the suppliers' provided composition of the fuel (see Toolbox III-5). Indicative surrogates give information about the operation of the plant or process through parameters such as relative temperature difference, pH factor, flow rate, etc.

4.4.12 Economic and Financial Analysis

Economic analysis in the context of an energy and environmental audit is actually a cost-benefit evaluation of the proposed measure or project. On the one hand, we have to estimate the costs of identified performance improvement measures or projects (PIP) while, on the other, we have to forecast cost reductions consequent to their implementation. As a quick cost-benefit analysis, simple payback period (SPP) can be calculated as:

Total investment [$J

If the payback period is very short, from a couple of months up to three or even five years, this information may suffice for management to decide in some cases to approve the project. But if the payback period is longer and particularly when the required investments are larger, then additional analysis may be required. The usual analysis is a discount cashflow method (Toolbox III- 3) which provides additional financial performance indicators: internal rate of return (IRR), and net present value (NPV) that enable decision makers to select which projects are to be financed and subsequently implemented.

Cost estimate is required for all payments necessary to implement suggested PIPs. It is based upon engineering analysis and the solution to the problem of cost reduction. In order to be able to prepare sufficiently accurate cost estimates, it is required that energy and environmental auditing delivers technical results at the level of conceptual engineering design. The conceptual engineering design will provide sufficient details to enable cost estimate for economic analysis purposes. An item-by-item approach to the cost estimate is suggested, which includes the following:

• detailed design;

• equipment and installation;

• insurance and handling;

• duties, tariffs, taxes and other equipment related charges;

project management cost for project implementation;

• operator training costs;

• license, patent-rights costs.

Financial analysis deals with the costs of specific ways to secure financing for the implementation of performance improvement projects. It needs to determine which capital sources can be used for project implementation and what it takes to get them. The company's financial resources may come from two sources:

• available cash at hand;

• access to external capital.

The important considerations are effective lending rates, lending terms, methods of calculating interest rates, methods of repaying the principal, grace period, tax breaks, etc. The amount of cash outflows based on the lending terms is to be developed for every year, to provide a basis for the calculation of the taxes, taxable profit and finally net cash flow resulting from PIP implementation.

Toolbox III-3 provides a guideline on how to carry out economic and financial analysis and includes simple software that can be used to calculate basic financial indicators (Fig. 4.7).

4.4.13 Presentation of Audit Results

A comprehensive energy and environmental audit involves extensive work, which comprises measurements, technical calculations and economic and financial analyses, where required. However, no

Figure 4.7 Flow Chart of the Software for Economic and Financial Analyses

matter how many calculations are performed and how good they are, an audit is only as good as the quality of its final report. The main purpose of the final report is to convince the top management of the factory to invest money in performance improvement measures and projects, and to prove that these measures can compete with other investment opportunities in terms of their own return on investment.

While the report itself may be quite comprehensive, it is important that it has an executive summary at the beginning where the main recommendations are described briefly and condensed into a table, accompanied by the key financial indicators of the proposed projects. Such a table may look like the example in Table 4.2.

Table 4.2 Performance Improvement Projects Proposed for Implementation

(Title and short description)

Energy Savings

Energy savings

Expected Investment

Pay Back Period



% of TEC*






Energy and Environmental Management System


Performance measurement system

3 % (over

275 000

72 000




Waste minimization

3 years)

Training for best practice operation

Chilled Water System (12/20 °C)




- PIM*** #1: Increasing the chilled water temperature


175 000


- PIM #2: Additional heat exchanger


535 000

265 000


Chilled Water System (5/10 °C)


- PIM #1: Increase the chilled water temperature


165 000


Steam System - distribution, users, control

- PIM #1: Steam system - Steam Blow Losses Elimination


125 000

50 000


- PIM #2: Steam/Condensate System Recovery


70 000

55 000



- PIM #3: Plate Heat Exchangers Efficiency Improvement (FFE)


10 000



- PIM #4: Plate Heat Exchangers Efficiency Improvement (AF)


17 500



- PIM #5: Plate Heat Exchangers Efficiency Improvement (CC)


55 000

15 000


- PIM #6: Waste Heat Recovery


21 500

20 000




Boiler House

21 500




- PIM #1: Tuning the burners


87 500

- PIM #2: Economizer installation


610 000

125 000



216 8000

612 000

* TEC - total energy costs

** EIRR, FIRR - Economic and Financial Internal Rate of Return in case not calculated because payback period for all measures is less than a year

*** PIM-performance improvement measure

4.5 Setting a Baseline for Monitoring Performance Improvements

Every improvement process starts from a known performance level against which a clear target and time frame for improvement is given. To establish the performance level prior to any improvements is relatively easy. Available monthly data may be considered to represent a baseline data set that determines past energy performance (usually over the last year or two) against which future improvements will be assessed.

The nature of energy and environmental performance improvement projects and its results (energy and other cost savings) is somewhat hypothetical because the actual savings and performance improvements are defined as follows:

^ post-improvement consumption or costs, subtracted from agreed base line consumption, that would have occurred had the project not been implemented, while all other factors are held constant.

Figure 4.8 illustrates this definition. The left part of the graph represents energy or environmental compliance costs in the previous year or two. '0' stands for present time when we are starting the implementation of the EEMS project. We assume that the project implementation period would be 20 months and over that period the costs would be gradually reduced to reach a target level. After that, if no other performance improvement projects are implemented, the costs will stabilize at the new, lower level. Now cost savings are the difference between past and current cost levels, and will accumulate over

This definition assumes a static approach which can explain the nature of cost savings in a dynamic industrial environment. But it cannot help to actually quantify or verify whether there are any savings at all against a background of varying production output and energy use. Therefore, we have introduced the regression equations (see Part I Chapter 3) calculated from the baseline data set given in Table 3.1, Part I Chapter 3:

which represents the best fit line for this data set. This equation is the usual first choice for the base or reference line against which performance will be monitored and assessed and the future cost savings calculated and verified.


Energy, Raw material, Labor, Maintenance costs, Environmental compliance costs


Savings for Factory


Energy, Raw material, Labor and Maintenance costs, Environmental compliance costs




Figure 4.8 Evaluating Results of Performance Improvements

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