Sunday, March 27, 2016

Energy Conservation in Brick Manufacturing







(This article has been prepared on the basis of a Study Report entitled “Evaluating Energy Conservation Potential of Brick Production in SAARC Countries: Bangladesh Country Paper”(March 2013)” prepared by the writer for SAARC Energy Center (SEC)Islamabad, Pakistan. The study was conducted to substantiate recent and other studies for sustainable development of the brick sector of Bangladesh)

Energy demand in the South Asian countries is increasing in faster rates than ever due to growth of economy and peoples' desire for living quality life keeping pace with technological development around the world. World is still immensely dependent upon the use of fossil fuel. South Asian region is starving for it, through appropriate policy and additional investment.

Brick industry within the SAARC region is the third largest consumer of coal after power and industry. There is hardly any technological advancement in the brick industry of the SAARC Countries. SAARC Energy Centre (SEC), Islamabad, Pakistan assigned the writer to undertake a study to assess the brick industry in Bangladesh with particular attention to the efficient use of energy in the industry. The study report was an effort to assist the SEC for their understating the brick manufacturing industry in Bangladesh by highlighting the opportunities and challenges in extensive introduction of energy efficient technologies in the country.

Scope of Work 
According to the terms of reference provided by SEC, scope of work included: 
• Economic and Industrial Condition
• Social and Environmental Impact 
• Relevant institutions, for capacity building towards promotion of energy efficiency in the sector
• Mapping of active stakeholders in the market, covering financier /investors and technology providers
• Identify and analyze barriers of the Private Sector for investment
• National Coal Policy and present situation of Coal Industry
• Environmental Policy for Brick Kiln (if any)
• Experiences, expertise and best available practices for sharing with other member countries
• Energy, environment and economic comparison and status of prevalent technologies
• Economic and Cost Benefit Analysis
• Recommendations

Methodology 
The writer reviewed available reports and literatures related to energy efficient brick field development to summarize what is currently known about Clean Technologies in the Brick Sector of Bangladesh. The writer discussed with the Bangladesh Brick Manufacturing Owner’s Association (BBMOA), Brick Field Owners, Brick Industry Consultant, Environment Expert, Entrepreneurs and related Specialists to get views, opinion, suggestions, etc. in order to develop Energy Conservation Potential Strategy towards sustainable development of brick sector of the country. This report has been prepared collecting data and information from above mentioned literature review and

The Study
a) Summary 
In Bangladesh people are migrating to the urban areas in search of jobs and better quality of living which is causing growth of urban population at a rate of 5% annually. This fact is triggering rise in the demand of bricks in the urban areas. Besides, due to rise in the income level and shortage of traditional housing materials in the rural area, the demand for bricks in the rural area is also in rise.

Brick-making is a significant economic activity in Bangladesh. However, brick manufacturing is not recognized as an industry in Bangladesh. The country’s overwhelming dependence on bricks is due to its lack of stones in any sizable quantity or other alternative building materials at comparable cost. Trend data of the last decade show demand for bricks rising steadily at about 5.28% annually. Number of brick kilns operating in the country is estimated be 6000-6500 producing about 17 billion bricks annually with an estimated sale value of around US$450 million, almost 1% of Bangladesh’s GDP.

After imposing ban by the government in 2004 on Bulls Trench Kiln (BTK), which used to be prevalent method of brick firing in the country, Fixed Chimney Kiln (FCK) has become most adopted technology. After the government notification of ban on FCK from September 2013, the number of Zigzag kilns started rising and by now has reached up to 1000. As a result of the efforts by some donor agencies with the objectives of reducing air pollution caused by the traditional kilns, energy efficient kilns like, Hoffman Kilns (Natural gas), Hybrid Hoffman Kiln, coal (HHK), Vertical Shaft Birck Kiln (VSBK) and Improved Fixed Chimney Kiln (IFCK) have been introduced but their penetration level is very low because of high initial cost and requirement of skilled manpower for construction. Out of about 6,000-6,500 kilns in the country 81% kilns are FCK mostly using imported coal.

Economic and social benefit analysis conducted by the patronizing agencies has shown that the HHK is the most profitable technology for the entrepreneur, while the returns from the FCK, IFCK, and VSBK are lower. Despite the higher net returns, adopting the HHK is difficult for two major reasons (i) HHKs operate on high land, which is scarce and expensive and (ii) the adoption requires a substantial investment (TK60 million), which is unaffordable for most FCK owners, who operate on rented land that cannot be used as collateral.

Coal consumption per 100, 000 bricks varies greatly for different technologies. FCK consumes the highest amount of coal (20-22 tonnes per 100,000 bricks) while VSBK requires the least amount of coal (10-12 per 100,000 bricks). It is clear that a huge energy saving potential, as high as nearly 50 %, is available through adoption of energy efficient technologies in the brick manufacturing. Country could save about 200 million US dollars from import of coal.

There is lack of government’s brick sector strategy (policy), or other relevant energy efficiency guidelines to promote sustainable brick sector development. As a result, the legal and regulatory framework is poorly guided to address the underlying deficiencies in the brick sector development. The existing legislations are based on the Brick Burning Act (1989) and various amendments and circulars thereafter. Prior to 1989, brick making was an unregulated industry in Bangladesh.

The major technical barriers to the adoption of energy efficient kiln technologies and in the way energy is utilized in making bricks are: 
(i) lack of ability to design and construct brick making facilities that utilize energy in the most efficient way 
(ii) lack of R&D and training facilities; 
(iii) lack of capacity in terms of technical skills that could have made production more efficient and less polluting; 
(iv) lack of worker and management capacity to enhance productive efficiency.

Approximately Taka 1.0 million is required as working capital for a BTK, FCK and Zigzag Kiln but for a HHK it can go up to Taka 7.5 million because of higher inventory, maintenance and overhead costs. Profitability in the current brick business largely depends on the sales volume as the profit margin per brick is low. Given limited capital resources, the manufacturers generally prefer to increase production capacity by setting up a new plant in a new location over investing in cleaner and efficient technologies. Institutional and Regulatory barriers include lack of supporting regulations, fiscal incentives and standards to encourage more energy efficient practices and technologies. Except for some sporadic efforts to regulate the industry, government has made little effort assist the brick industry to undertake comprehensive programs to transform the industry and make it less polluting and more profitable. Private entrepreneurs lack capacities in regard to modern practices in marketing, business opportunities and kiln management. There is also lack of trained manpower to cope with new technology changes.

The current status of brick industry is by no means sustainable. It is therefore imperative for Bangladesh to modernize/upgrade its brick sector in order to save valuable natural resources, reduce air pollution, and increase energy efficiency. The government has already established regulations that ban the use of fuel wood and FCKs, and has reconsidered the location and height of brick kiln chimneys. Donor agencies are also patronizing in introduction of energy efficient and less polluting technologies like VSBK and HHK through pilot projects and technical supports. VSBK seems to have failed to attract investors due to failure of the pilot project to produce bricks of desired quality. On the other hand, HHK did not show any technical constraint; however, relatively large investment requirement appears to be main impediment in fast propagation of this technology. Zigzag relatively cleaner than FCK, although not as good as VSBK or HHK, appear to be the choice of the industry in general. However, this transformation is not taking place at a pace that the government has targeted. The Brick Field Owners leads by Bangladesh Brick & Owner’s Manufacturing Association (BBMOA) are in favour of extending time for conversion of existing FCK to Zigzag beyond 2013.

b) Economic Aspects 
Brick manufacturing is not recognized as an industry in Bangladesh. There are two main underlying reasons for lack of industry recognition. First, while Small and Medium Enterprises (SMEs) in Bangladesh are defined in terms of employment provided, brick kilns are seasonal operations that do not provide year-round employment. Second, most brick kilns are located on rented land and do not have fixed assets except for the chimney. Though not formally recognized as an industry, brick-making is a significant economic activity in Bangladesh. The country’s overwhelming dependence on bricks is due to its lack of availability of stones in any sizable quantity or other alternative building materials at comparable cost. A snapshot of Bangladesh’s Brick Sector is placed below to show main economic aspects of the sector.


Table 1: Main Economic Aspects of Bangladesh’s Brick Sector (2011)
Parameter
Value
Estimated total number of coal-fired kilns
5,000
Number of natural gas fired kilns
20
Annual brick production
17.2 billion
Value of output
TK 83 billion
(∼US$1.2 billion)*
Contribution to GDP
~1%
Coal consumption
3.5 million tons
Value of imported coal
TK22.6 billion
(∼US$322 million)
Firewood consumption
1.9 million tons
Emissions CO2
9.8 million tons
Clay consumption
45 million tons
Total employment (incl. supply of clay and coal, transport of bricks)
∼1 million people
Growth rate of the construction industry (1995-2005)
5.6%
Estimated future growth rate of the brick sector over the next ten years
2-3%
 
  
[Report No. 60155-BD; June 2011; ESMAP, the World Bank]

c) Social Issues 
Bangladesh brick manufacturing kilns usually operate 5–6 months of the year, from November to April, because most of them are located in low-lying areas, which experience flooding during the rainy season. Besides, operators depend on nature for drying green bricks in the sun under the open sky, which is not possible in the monsoon season. In addition, during the rainy season, dry green bricks cannot be made or stored at comparatively low cost as in the dry season and open-air kilns cannot operate. Most brickfields are on leased land with no permanent sites and fixtures. This along with the seasonal nature of production contributes to the ‘footloose’ nature of the industry.

The average brickfield employs about 150 skilled and unskilled workers. Apart from 6 to 10 permanent employees, most are employed for only six months during the production season. Migrants from northwestern Bangladesh comprise most of the kiln workforce due to the seasonality of kiln operations, their clustering, and lack of local workers. The workers are not organized and lack trade unions to promote their interests. Thus, the existing kilns involve many social issues related to migrant workers, gender and child, and health and sanitation.


d) Environmental Issues 
Brick making in Bangladesh is a highly energy intensive and carbon emitting activity. Prior to 2004, most kilns in Bangladesh, about 95%, were based on the 150 year old Bull’s Trench kiln (BTK) technology. In 2004, following a government order to raise smokestacks to 120 feet, BTK’s were modified to accommodate taller chimneys and underground piping necessary to divert the flue gas to the fixed chimney. This required extending the width of the base. The taller chimney creates a stronger draft, which improves combustion to some extent and enables flue gas to be released at 120 feet, dispersing the pollution over a wider area. This ‘new’ kiln called the Fixed Chimney Kiln (FCK) is essentially the same Bull’s Trench Kiln with a chimney

The baseline analysis indicates that GHG emissions from the brick industry are already at a high level and are expected to increase by at least 5.28% every year for the foreseeable future. This means that direct carbon emissions from kilns alone will rise to 8.7 million tonnes annually by 2014 or earlier depending on the growth rate of the industry. Fuel consumption, particulate emission and GHG emission from different kilns are given below Table 2.
Table 2 : Energy Consumption, Particulate Emission and GHG Emission from Brick Kilns

Technologies
Coal per 100000 bricks (Tons)
Particulate(mg/m3)
CO2 per 100000 bricks (Tons)
GHG (CO2) Reduction
Baseline



FCK                       
20-22
1000+
50
--
Zigzag (poor kiln design and poor management)
18-20
1000+
45
10%
Zigzag (poor kiln design and medium management)
16-18
500-800
40
20%
Hoffman (Natural Gas)
16,000 m3
< 100
30
40%
Alternatives




Hoffman (Natural Gas)
16,000 m3
< 100
30
40%
FCK (+ GSC + IF)
16-18
< 500
40
20%
Zigzag (good management)
16-18
400-600
40
20%
Coal Hoffman
12-14
< 400
30
40%
VSBK
10-12
200-400
25
50%
 
  

Source: BUET 2007

It is clear from the above table that fuel consumption, particulate emission and GHG emission are highest for FCK. FCK releases the highest level of PM and SO2, primarily because of the high ash and sulfur content of the coal. Evidence is inconclusive on PM emissions of the Zigzag kiln. In terms of pollutants, the Hoffmann kiln, fired by natural gas, is considerably superior to all coal-burning kilns. Unfortunately, due to natural-gas supply constraints, the expansion of this technology stopped and existing kilns are facing closure.

The main environmental impacts of operating brick kilns, which are particularly evident for the FCKs, include health, CO2 emissions and poor energy efficiency, Crop yields (from air pollution) and depletion of cropland.


e) National Coal Policy
In order to facilitate mining and utilizing the coal resources of the country, the government of Bangladesh has been trying to formulate a Coal Policy for pretty long time. And after been revised for several time updated Energy and Mineral Resources Division (EMRD) published on version in 2010. This new Coal Policy is expected to cover coal development strategies, import coal, method of extraction, investments and environmental measures in the country. The Government has been putting efforts to finalize the Coal Policy where the strategies and rules of coal extraction will be spelled out. It is expected the approved Coal Policy will help achieving targets and appropriate steps could be taken developing the prospective coal sector of the country.

Bangladesh imports a significant amount of coal from India, but these are all in private sector and mostly used for brick burning and arc furnace.

f) Steps taken and for sharing with other Member Countries
Success in introducing modern technologies particularly efficient and less polluting brick firing technologies in Bangladesh so far is very limited. Nevertheless, some of the decisions taken by the government of Bangladesh are considered as steps towards right direction, which may be shared with other countries. Other countries in the SAARC region may follow these steps if they have not done those already. Steps taken by Bangladesh for adoption of new technology and reduction of environmental pollution and degradation caused by brick industries that can be followed by other countries are as follows:

Ban on use of fuel wood for brick burning
Brick Burning Act 1989 imposed a ban the use of fire¬wood for brick manufacturing and introduced licensing for brick kilns which prevented tree felling for brick burning and contributed in projected of forest resources.

Ban on FCK 
As part of efforts to reduce pollution and coal use in 2010 Government of Bangladesh has issued a notification that all FCK will be banned from September 2013 exactly three years after the notification. Renewal of licenses fixed chimney kilns has been stopped since September 2012.

US$ 50 million Fund for energy-efficient brick kilns
The Asian Development Bank (ADB) has provided US$ 50 million to Bangladesh to improve the environment by financing more energy-efficient brick kilns in the country. The Bank and Financial Institutions Division under the Ministry of Finance will be the executing agency and Bangladesh Bank being the implementing agency will implement the project during 2012-15 period. Under the project, ADB will provide US$50 million in local currency to the Bangladesh Bank which will be re-lend later on to the funds to participating Financial Institutions (FI).

The FIs will then provide loans to brick makers seeking to upgrade their existing kilns to cleaner kinds of kilns or to those looking to build the cleaner kilns for the first time.

Conclusion and Recommendations
Bangladesh brick making industry is growing fast due to rising demand of bricks. Natural Gas being the least polluting fuel, use of natural gas has to be restricted due to shortage of supply in the face of rising demand in other sectors. Thus coal, mainly imported, has become the predominant fuel in brick burning. Age old technologies are prevalent in the industry, which is resulting in low energy efficiency and high emissions. Due to its seasonal nature the brick industry is dominated by small investors who lack in ability to invest in modern and cleaner but expensive technologies. The current status of brick industry is by no means sustainable. It is therefore imperative for Bangladesh to modernize/upgrade its brick sector in order to save valuable natural resources, reduce air pollution, and increase energy efficiency.

The development of the brick industry in Bangladesh over the next 10-15 years should aim at: (i) moving from traditional brick-making technologies (e.g. FCK) to cleaner ones (e.g. HHK, VSBK).

To achieve these goals, following actions need to be taken:
(i) The government should recognize brick kilns as a formal industry to enable easier access to financial resources which in turn will enable investment in cleaner technologies and improved working conditions by introducing higher levels of mechanization, social programs to reduce child labour, occupational safety and health measures in the kilns.

(ii) A federation of associations for relation of mutual cooperation in brick manufacturing industries in the SAARC region. The association may be named as SAARC Regional Brick Manufactures Federation (SRBMF).

(iii) Government should resolve all issues in relation to the finalization of coal policy to pave the way for exploitation indigenous coal and its appropriate utilization to a greater extent for ensuring energy security of the country.

Engr. Anwar H. Khan
Energy & Management Consultant

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