As one of major energy consumers with big impacts on national energy situation, the Vietnam National Coal and Mineral Industries Group (Vinacomin) has actively taken energy efficient measures to stabilize the exploitation capacity and raise the production in past couples of years.

Vinacomin consumed approximately 50 million KWh in 2008, 1.14 times more year on year.

Industry specialists said that the growth in the energy consumption was natural as Vinacomin saw a continual increase in both exploitation and production sectors. Generally, Vinacomin affiliates use less energy in production that has resulted in lower production costs and relevant expenses.

Besides power, Vinacomin mainly uses petrol for the coal industry. In 2003, it used up around 60 million liters of oil and 170,000 liters of petrol, increasing to approximately 180 million liters of oil and around 300,000 liters of petrol in 2008, respectively. Power often accounts for 10 percent of total energy cost in open-cast coal mining sites and the rest is petrol expenses.

Open-cast coal extraction businesses can save 7.09 percent of power and 1-2 percent of fuel potentially.

Pursuant to the government decree on energy efficiency and conservation, Vinacomin has published Instruction 08/CT-CDM dated November 22, 2005 pertaining to energy efficiency and conservation in production.

Surveying the potential

To learn energy situation at the whole group and find opportunities to save energy cost, Vinacomin conducted energy audits at its 32 affiliates, including 12 coal-pit and 5 open-cast extraction businesses, 2 sieving units, 6 mechanical engineering units and 2 transport enterprises.

The survey results showed that coal-pit extraction facilities could save between six to 14.7 percent of total power consumption, averaging 10.7 percent. If energy efficient measures were taken, these coal-pit extraction units could save nearly 30 million KWh (equal to 3,000 tonnes of oil equivalent) or more than VND25 billion each year.

Similarly, open-cast extraction facilities could save around 7.1 percent of total power and from one to two percent of total fuel consumption, equal to 11.1 million KWh and around two million liters of oil or around VND32.6 billion each year. They could also avoid discharging over 6,000 tonnes of dioxide carbons to the environment.

Each year, Vinacomin can save 11.1 million KWh and around two million liters of oil, equal to VND32.6 billion, and avoid discharging over 6,000 tonnes of dioxide carbon to the environment.

Energy audits at sieving units reflected that these businesses could save 4.9 million KWh or nearly VND5 billion each year. Similarly, mechanical enterprises could save approximately 10 percent of total power consumption equal to around two million KWh. At transport units, they could save 1.9 million liters of oil and 58,000 liters of petrol provided that they could save one percent of total fuel consumption each year.

In 2008, the Ha Lam Coal Company used up to 14 million KWh, mainly at coal-pit extraction sites (65 percent of total power consumption). It mainly used petrol to operate excavators and specialized machines and to transport. As coal pits are prone to gas explosions, ventilation equipment has to operate around the clock, event at weekends. The power absorbed by the ventilation system at coal pits often accounts for a large proportion at coal pit extraction sites.

Besides, the conveyor belt at coal pit extraction sites is often the largest power consumer. At the Ha Lam Coal Company, the outmoded system could only operate at around 34.6 percent of the total capacity, causing a great waste of energy.

Survey results show that coal-pit extraction units have enormous potential for saving power in ventilation and conveyor belt areas. Therefore, these businesses could save their energy cost significantly if they improved their ventilation and conveyor systems. At the Ha Lam Coal Company, each year the company could save 2.8 million KWh if it brings energy efficient solutions in production at a cost of approximately VND8 billion. The company is expected to recovery its investment after three years.

By bringing energy efficient solutions into production, each year Ha Lam Coal Company can save 2.8 million KWh. The company is expected to recover its total investment capital of VND8 billion after three years.

As for open-cast coal extraction businesses, the Cao Son Coal Joint Stock Company used up around 30 million KWh in 2008 with 41.3 percent of the total power was for loading activities, 28 percent for drilling, 14.2 percent for water pumping and 5.1 percent for coal sieving. The company can save energy significantly by improving the coal sieving, water pumping, power transformer, lighting, and energy use surveillance systems. Surveys show that each year the company can save up to two million KWh if proper energy efficient measures are taken.

In the same line, energy audits show that the Mao Khe Coal Company can save 10.2 percent of its total energy consumption and corresponding figures for the Vang Danh and Nam Mau coal companies are 6.3 percent and 8.3 percent, respectively.

Taking concrete measures

Aware of the efficiency of power (energy generally) conservation measures, Vinacomin has actively taken energy efficient measures in the past years. The group perceives that it is essential to work out a concrete action program, effectively handle organizational work and highlight the human factor.

Initially, the energy efficiency and conservation cause at Vinacomin made debut with simple doings. The group has worked on an action program, establish a reward mechanism to honor individuals and sections for their good performance in the area, hold frequent inspections about energy use situation and increase propagation about the cause.

To slash power consumption, Vinacomin has taken an important measure that was proposed by specialists: raising the voltage level at production facilities across the group. Reality shows that if the voltage level is raised from 380V to 660V, or from 660V to 1,140V and with a total working hour of 7,200 hours per year, the group can save 12,800KWh/year. If all the power transformer stations in Quang Ninh mining sites are upgraded, around 500,000KVA will be saved. All of the coal-pit extraction facilities have thus far shifted into using the 660V voltage level for its lighting equipment to serve energy.

If the voltage level is raised from 380V to 660V, or from 660V to 1,140V and with a total working hour of 7,200 hours per year, Vinacomin can save 12,800KWh/year.

After completing preliminary energy audits, Vinacomin affiliates were advised by specialists on energy efficient solutions. Along with common measures like replacing bulbs by compact lamps and improving the power supply network, each company has applied particular measures based on their actual conditions. Similarly, the Vang Dang and Ha Lam coal companies installed inverters for hoists and coal sieving machines; the Cao Son and Ha Tu coal joint stock companies stopped using the water draining system, electric drilling equipment and tool machines at peak hours and worked extra hours in off-peak hours; the Hon Gai Coal Sieving Company installed compensation capacitors to raise the capacity coefficient and the Vinacomin Mechanical Manufacturing Company established a surcharge scheme to keep closer eyes on production and management, etc.

There are complex proceedings in the world energy situation. Like many countries around the world, Vietnam is also susceptible to these changes. Therefore, Vinacomin has continually applied energy efficient measures to help its affiliates save cost, relieve the pressure for energy, contributing to the country’s sustainable development and protecting the environment. Energy efficient measures not only bring practical effects to businesses, it also paves the way to establish strategic energy efficient programs and better state management that are essential factors for a sustained and long-term growth.