Circular No. 19/2016/TT-BCT dated September 14, 2016 of the Ministry of Industry and Trade on energy consumption norms in beer and beverage production industry

THEMINISTRY OF INDUSTRY AND TRADE

Circular No.19/2016/TT-BCT dated September 14, 2016 of the Ministry of Industry and Trade onenergy consumption normsinbeer and beverage production industry

Pursuant to the Government s Decree No. 95/2012/ND-CP dated November 12, 2012, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade

Pursuant to the Law on Economical and Efficient Use of Energy dated June 28, 2010;

Pursuant to the Government’s Decree No. 21/2011/ND-CP dated March 29, 2011 detailing the implementation of the Law on Economical and Efficient Use of Energy;

At the request of general director of General Directorate of Energy;

The Minister of Industry and Trade promulgates regulations on energy consumption norms for beer and beverage production industry as follows:

Chapter I

GENERAL PROVISIONS

Article 1. Scope of adjustment

This Circular stipulates:

1. Energy consumption normsinbeer and beverage production facilities in the period to the end of 2020 and the period from 2021 to the end of 2025.

2. Methodfor determination of specific energy consumption in beer and beverage production facilities.

3. This Circular is inapplicable to purified and mineral waterproducts.

Article 2. Subject of application

1. Facilities, organizations and/or individuals engaging in beer and beverage production industry.

2. Other relevant agencies, organizations, and individuals.

Article 3. Interpretation of terms

1.Specific energy consumption (SEC)refers to the total amount of energy consumed to produce a product unit.

2.Energy consumption normsrefer to specific energy consumption index in proportion to each period stipulated by the Ministry of Industry and Tradein this Circular.

3.One hectoliter (1 hl)is a unit of capacity equal to 100 liters (100 l).

Chapter II

ENERGY CONSUMPTION NORMS AND MEASURES OF INCREASING EFFICIENCY IN ENERGY USE IN BEER AND BEVERAGE PRODUCTION INDUSTRY

Article 4. Determination of specific energy consumption

1. SEC in beer production industry shall be determined according to the method mentioned in Appendix I.

2. SEC in beverage production industry shall be determined according to the method mentioned in Appendix II.

Article 5. Energy consumption norms for beer and beverage production industry in the period to 2025

1. Period to the end of 2020:

2. Period from 2021 to the end of 2025:

Article 6. Requirements for energy consumption norms in the period to the end of 2025

1. SEC of beer and beverage production facilities (herein ‘production facilities’) in the period from now to 2025 shall not be allowed to be higher than energy consumption norms as prescribed in Clause 1 and Clause 2, Article 5 of this Circular.

2. In case SEC of production facilities is higher than energy consumption norms in proportion to each period, the production facilities shall establish and implement measures to increase efficiency in energy use to satisfy requirements as prescribed in Clause 1, Clause 2, Article 5 herein.

3. SEC of investment projects or projects on renovation and expansion shall not be allowed to be higher than energy consumption norms as prescribed in Clause 2, Article 5 herein.

Article 7. Measures to increase efficiency in energy use in beer and beverage production industry

1. Management measures:

a. Increase management of activities of using energy in facilities;

b. Construct and maintain energy management system in facilities.

2. Technical and technological measures include:

a. Optimize technology process;

b. Use energy efficient equipment;

3. Encourage organizations, individuals to take measures to increase efficiency in energy use as prescribed in Clause 1, Clause 2, Article 7 and Appendix III (in case of beer production industry) or Appendix IV (in case of beverage production industry) enclosed herein.

Chapter III

IMPLEMENTATION ORGANIZATION

Article 8. Responsibility of General Directorate of Energy

1. Preside over and cooperate with relevant agencies in instructing and organizing supervision, inspection of implementation of this Circular;

2. General Directorate of Energy shall cooperate with the Service of Industry and Trade across the country in inspecting the implementation of energy consumption norms, feasibility of the plans to ensure energy norms as scheduled (if need be).

3. Based on the results of inspection, General Directorate of Energy shall make the report to the Minister of Industry and Trade on cases of failing to comply with Article 5 herein and propose penalties according to applicable regulations.

Article 9. Responsibility of the Service of Industry and Trade

1. Cooperate with General Directorate of Energy in instructing and speeding up inspection of economical and efficient use of energy under this Circular.

2. Annually, preside over inspection of implementation of energy consumption norms, feasibility of the plans to ensure energy norms as scheduled for production facilities in localities.

3. Report the implementation of energy consumption norms for beer and beverage production industry in localities to General Directorate of Energy, the Ministry of Industry and Trade before January 31 annually as prescribed in Appendix V enclosed herein.

Article 10. Responsibility of production facilities, relevant organizations and/or individuals

1.Organizations and/or individuals engaging in beer and beverage production industry shall have plans to meet requirements as prescribed in Article 5 herein.

2.Before January 15 annually, production facilities shall be responsible for reporting the implementation of energy consumption norms as prescribed in Appendix VI enclosed herewith to the Ministry of Industry and Trade through the Service of Industry and Trade, General Directorate of Energy.

3.Production facilities that fail to meet energy consumption norms as prescribed and fail to propose feasible plans to ensure the norms as scheduled in Article 5 herein shall be subject to penalties according to applicable regulations.

Article 12. Effect

1.This Circular takes effect on November 01, 2016.

2.Any project that has had the investment policy decision issued by competent agencies after the effective date of this Circular shall meet provisions set out in Clause 2, Article 5 herein.

3.Difficulties that arise during the implementation of this Circular shall be reported to the Ministry of Industry and Trade for amendments./.

For the Minister

The Deputy Minister

Hoang Quoc Vuong

APPENDIX I

METHOD FOR DETERMINATION OF SPECIFIC ENERGY CONSUMPTION IN BEER PRODUCTION FACILITIES(Enclosed with the Minister of Industry and Trade’s Circular No.19/2016/TT-BCTdated September 14, 2016)

1. Scope of assessment: beer production areas (not including administrative areas and other production areas).

2. The time for determination of SEC (herein ‘SEC determination time) in facilities shall be one year (from January 01 to December 31). If examination and verification of SEC is required, the time for doing so shall be equal to the time required for completion of a production cycle.

3. Parameters to determine SEC in beer production facilities:

Table 1.1 Data for determination of SEC in beer production facilities

4. Equivalent product: equivalent product in beer production facilities are bottled beer products. Other beer products shall be converted to bottled beer products in order to calculate SEC.

5. SEC in beer production facilities shall be determined in Formula 1.1 as follows:

SEC_{production facilities =}+[MJ/hl]                 (Formula 1.1)

Where:

- E1: Equivalent electrical energy consumed in production areas during the period of survey, MJ;

- T1: Equivalent thermal energy consumed in production areas during the period of survey, MJ;

- P(e):Output of equivalent product (electricity-based), hl;

- P (t): Output of equivalent product (heat-based), hl;

6. Determination of E1, T1, P(e) and P(t):

a) Determination of electrical energy E1

Electrical energy consumed in production areas (e1) during the period of survey shall be converted to unit of measurement (MJ) as follows:

E1 = e1 x 3.6                  [MJ]                                         (Formula 1.2)

Where:

- E1: Equivalent electrical energy consumed in production areas during the period of survey (MJ);

- e1: Amount of electricity consumed in production areas during the period of survey (MJ);

- 3.6 (MJ/kWh): conversion factor.

If beer production facilities do not have figurese1, transport activities, canteens and produce beer only, e1shall be calculated according to the amount of electricity consumed throughout the facilityeas follows:

e1 = 0.95 x e [kWh] (Formula 1.3)

Where:

- e1: Equivalent electrical energy consumed in production areas during the period of survey (kWh);

- e: Electrical energy consumed throughout the facility during the period of survey (kWh);

- 0.95: conversion factor

b) Determination of thermal energy T1

Thermal energy consumed in production areas (T1) during the period of survey shall be converted to unit of measurement (MJ) as follows:

T1 = Σt1(fueli) x k(fueli)         [MJ]                               (Formula 1.4)

Where:

- T1: Amount of equivalent thermal energy consumed in production areas during the period of survey (MJ);

- t1 (fuel): amount of fuel consumed inproduction areas during the period of survey;

- k (fueli):conversion factor as prescribed in Table 1.2.

Table 1.2 Conversion factork (fueli)

c) Determination of output of equivalent product P(e) and P(t)

Output of equivalent product P(e) is calculated as follows:

P(e) = p1 + p2x0.72 + p3x0.91                   [hl]              (Formula 1.5)

Where:

- P(e): Output of equivalent product (for electrical energy) during the period of survey (hl)

- p1: Output of bottled beer during the period of survey (hl);

- p2: Output of canned beer during the period of survey (hl);

- p3: Output of draught beer during the period of survey (hl);

- 0.72: Conversion factor (for electrical energy) from canned beer to bottle beer;

- 0.91: Conversion factor (for electrical energy) from draught beer to bottle beer;

Output of equivalent product P(t) is calculated as follows:

P(t) = p1 + p2x0.59 + p3x0.88                   [hl]              (Formula 1.6)

Where:

- P(t):Output of equivalent product (for thermal energy) during the period of survey (hl);

- p1: Output of bottled beer during the period of survey (hl);

- p2: Output of canned beer during the period of survey (hl);

- p3: Output of draught beer during the period of survey (hl);

- 0.59: Conversion factor (for thermal energy) from canned beer to bottle beer;

- 0.88: Conversion factor (for thermal energy) from draught beer to bottle beer;

APPENDIX II

METHOD FOR DETERMINATION OF SPECIFIC ENERGY CONSUMPTION IN BEVERAGE PRODUCTION FACILITIES

(Attached with the Minister of Industry and Trade’s Circular No. 19/2016/TT-BCT dated September 14, 2016)

1. Scope of assessment: beverage production areas (not including administrative areas and other production areas).

2. The time for determination of SEC in facilities shall be one year (from January 01 to December 31). If examination and verification of SEC is required, the time for doing so shall be equal to the time required for completion of a production cycle.

3. Parameters to determine SEC in beverage production facilities:

Table 2 Data for determination of SEC in beverage production facilities

4. Equivalent products: Equivalent products from beverage production facilities refers to the beverage contained in disposable bottles. Bottled fizzy beverage products shall be selected for conversion in case the facility produces both fizzy and still beverage.

5. SEC in beverage production facilities shall be determined in Formula 2.1 as follows:

SEC production facilities =+[MJ/hl]                 (Formula 2.1)

Where:

- E1: Equivalent electrical energy consumed in production areas during the period of survey (MJ);

- T1: Equivalent thermal energy consumed in production areas during the period of survey (MJ);

- P (e): Output of equivalent product (electrical energy), hl;

- P (t): Output of equivalent product (thermal energy), hl;

6. Determination of E1, T1, P(e) and P(t):

a) Determination of electrical energy E1

E1 shall be calculated according to Formula 1.2 and 1.3 in Appendix I.

b) Determination of thermal energy T1

T1 shall be calculated according to Formula 1.4 in Appendix I.

c) Determination of output of equivalent product P(e), P(t)

If the facility produces either fizzy product or still product:

Output of equivalent product P(e) is calculated as follows:

P(e) = p3 + p4 + p5x0.99 + p6                   [hl]              (Formula 2.2)

Where:

- P(e): Output of equivalent product (thermal energy) during the period of survey (hl);

- p3: Output of bottled soft drinks (disposable bottles) during the period of survey (hl);

- p4: Output of bottled soft drinks (glass bottles) during the period of survey (hl);

- p5: Output of canned beverage during the period of survey (hl);

- p6: Output of packaged soft drinks during the period of survey (hl);

- 0.99: Conversion factor (electrical energy) from canning to bottling (disposable bottles).

Output of equivalent product P(t) is calculated as follows:

P(t) = p3 + p4x3.89 + p5 + p6                    [hl]              (Formula 2.3)

Where:

- P(t): Output of equivalent products (thermal energy) during the period of survey (hl);

- p3: Output of bottled soft drinks (disposable bottles) during the period of survey (hl);

- p4: Output of bottled soft drinks (glass bottles) during the period (hl);

- p5: Output of canned soft drinks during the period of survey (hl);

- p6: Output of packaged beverage during the period of survey (hl);

- 3.89: Conversion factor (thermal energy) from glass bottles to disposable bottles.

If the facility produces both fizzy product and still product:

Output of equivalent products P(e) is calculated as follows:

P(e) = 0.5 x (p1 + p2x1.31 + p3 + p4 + p5x0.99 + p6)           [hl]    (Formula 2.4)

Where:

- P(e): Output of equivalent products (electrical energy) during the period of survey (hl);

- p1: Output of fizzy beverage during the period of survey;

- p2: Output of still beverage during the period of survey;

- p3: Output of bottled soft drinks (disposable bottles) during the period (hl);

- p4: Output of bottled soft drinks (glass bottles) during the period (hl);

- p5: Output of canned soft drinks during the period of survey (hl);

- p6: Output of packaged soft drinks during the period of survey (hl);

- 1.31: Conversion factor (electrical energy) from still soft drinks to fizzy beverage;

- 0.99: Conversion factor from canned soft drinks to bottled soft drinks (disposable bottles).

Output of equivalent product P(t) is calculated as follows:

P(t) = 0.5x x (p1 + p2x0.96 + p3 + p4x3.89 + p5 + p6)         [hl]    (Formula 2.5)

Where:

- P(t): Output of equivalent product (thermal energy) during the period of survey (hl);

- p1: Output of fizzy beverage during the period of survey;

- p2: Output of still beverage during the period of survey;

- p3: Output of bottled soft drinks (disposable bottles) during the period of survey (hl);

- p4: Output of bottled soft drinks (glass bottles) during the period of survey (hl);

- p5: Output of canned soft drinks during the period of survey (hl);

- p6: Output of packaged soft drinks during the period of survey (hl);

- 0.96: Conversion factor (thermal energy) from still soft drinks to fizzy beverage;

- 3.89: Conversion factor (thermal energy) from bottled soft drinks (glass bottles) to bottled soft drinks (disposable bottles).

APPENDIX III

A NUMBER OF ENERGY SAVING MEASURES IN BEER PRODUCTION INDUSTRY

(Attached with the Ministry of Industry and Trade’s Circular No. 19/2016/TT-BCT dated September 14, 2016)

1. Install insulation for steam piping and refrigeration piping.

2. Purchase steam from outside service companies.

3. Save energy with high-performance lights.

4. Use inverters and electricity-saving measures.

5. Optimize wort cooling process (from one-step process into two-step process).

6. Use stratified cooling system.

7. Use compressed natural gas (CNG), rice hulls, compressed wood blocks, compressed rice hulls as fuel for boilers in place of DO.

8. Use industrial heat pumps to provide hot water for pasteurization.

9. Recover heat from hopscooking

10. Control/utilize excess gas from boilers

11. Install steam compressors for boilers.

12. Recover weak work

13. Use biogas from wastewater treatment plants to operate electricity generators or stoke boilers.

14. Typical measure for facilities below 20 million liters in capacity:

a) Install pressure tanks for air compressors

b) Replace old filling systems.

APPENDIX IV

A NUMBER OF ENERGY SAVING MEASURES IN BEVERAGE PRODUCTION INDUSTRY

(Attached with the Ministry of Industry and Trade’s Circular No. 19/2016/TT-BCT dated September 14, 2016)

I. A number of typical energy saving measures for fizzy beverage production:

1. Adjust operation of syrup cooling system.

2. Install heat recovery from boilers

3. Optimize operation of air compressing system.

4. Replace old filling systems.

5. Replace boilers

6. Innovate lighting system

7. Recover condensate

8. Install insulation for steam piping.

9. Use inverters and electricity-saving measures.

10. Use industrial heat pumps to provide hot water for production, CIP.

11. Use stratified cooling system.

12. Replace reciprocating ammonia compressors with high-performance screw compressors.

II. A number of typical energy saving measures for still beverage production:

1. Recover condensate

2. Innovate lighting system

3. Repair and replace steam traps

4. Recover excess gas from boilers

5. Install insulation for steam piping.

6. Use inverters and electricity-saving measures.

7. Installexhaust-firedwaterheating equipment

APPENDIX V

SPECIMEN REPORT ON IMPLEMETATION OF ENERGY CONSUMPTIONNORMS IN BEER AND BEVERAGE PRODUCTION INDUSTRY

(Attached with the Ministry of Industry and Trade’s Circular No.19/2016/TT-BCT)

REPORT ON IMPLEMENTATION OF ENERGY CONSUMPTION NORMSIN BEER AND BEVERAGE PRODUCTION INDUSTRY IN THE YEAR 20 ...

Respectfully addressed to: General Directorate of Energy, the Ministry of Industry and Trade

In the implementation of the Ministry of Industry and Trade’s Circular No. .../.../TT-BCT dated ... stipulating implementation of energy consumption norms in beer and beverage production industry, the Service of Industry and Trade reports the implementation of energy consumption norms in beer and beverage production industry in the administrative division as follows:

I. Implementation of energy consumption norms in beer production industry:

- Number of facilitiesthat have madereports:

- Number of facilitiesfailing to makereports:

- Number of facilities failing to meet energy consumption norms:

II. Implementation of energy consumption norm in beverage production industry:

- Number of facilitiesthat have madereports:

- Number of facilities failing to make reports:

- Number of facilities failing to meet energy consumption norms:

Report date ...

APPENDIX VI

SPECIMEN REPORT ON IMPLEMETATION OF ENERGY CONSUMPTION NORMS IN BEER AND BEVERAGE PRODUCTION INDUSTRY

(Attached  with the Ministry of Industry and Trade’s Circular No. 19/2016/TT-BCT)

REPORTS ON IMPLEMENTATION OF ENERGY CONSUMPTION NORMS IN THE YEAR 20 ...

Respectfully addressed to: The Service of Industry and Trade of province/city ...

[Name of facility] making the reportReport date ...

Industry classification: ...

Name of facility: ……………………………........……………………………..........

Address: .............................................[Name of district ...] [Name of province ...]

Phone number: ....................Facsimile:..................................., Email: .............

Affiliated to (Name of parent company): ............

Address: .............................................[Name of district ...] [Name of province ...]

Phone number: ....................Facsimile: ..............................Email:

Owner: (State/other economic sectors)

I. Information about facility and product

Production capacity

Current energy-consumption rates

II. Implementation of energy consumption norms in the year 20 ...

a) Specific energy consumption (SEC)(Calculated according to Formula 1.1 in Appendix I, or Formula 2.1 in Appendix II depending on industry).

b) Ratio of improved energy consumption productivity compared with previous year:(= [(SEC_{previous year}– SEC_present)/SEC_{previous year}]x100%).

III. Reports on formulation of plan and measures to increase efficiency in energy use to meet energy consumption norms during present period (If any)

a) Propose measures and implementation plans to meet energy consumption norms

b) SEC expected for the next year

c) Determine the time to meet energy consumption norms according to the implementation plan and measures proposed by the facility.

Report date ...