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Although unit energy consumption improved in fiscal 2004, the impact on the environment increased in absolute terms |
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NOF Group Greenhouse Gas Emissions in Fiscal 2004
In fiscal 2004 the NOF Group released 206,000 tons of CO2, 15,000 tons more than in fiscal 2003. Plant CO2 emissions were up 5,000 tons, plant CFC emissions were up 9,000 tons, and logistics CO2 emissions were up 1,000 tons. The primary causes of these increases were the rise in production output volume of about 10,000 tons and the start of operations at plants manufacturing new products.
Composition of Emissions (CO2 equivalent)
CO2 from manufacturing activities
CO2 from logistics activities
CFC
CH4,N2O |
156,000 tons
33,000
16,000 tons
1,000 |
*Logistics CO2 emissions are partially based on estimates.
*Calculated using a coefficient for the average of all power sources for each fiscal year. |
Fiscal 2004 Greenhouse Gas Emissions |
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 Until recently, NOF has evaluated greenhouse gas emissions primarily based on individual factories. However, progress in reducing these emissions has made improvements increasingly difficult to observe, making the evaluation process extremely difficult. To overcome this problem, beginning in fiscal 2005, follow-up evaluations are based on detailed standards, such as by separating new and established businesses, conducting analysis for individual plants and production lines, and conducting thorough examinations of major products and processes. This approach enhances Group activities concerning greenhouse gases. In addition, steady progress is being made as established businesses reach their goals, while new businesses are reducing these emissions by clearly defining actions that need to be taken. |
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By managing energy consumption relative to production volumes, the NOF Group is aiming to achieve comprehensive improvements in energy efficiency. NOF performs self-evaluations by using fixed heat conversion coefficients to eliminate all external factors. When converted into primary energy, total energy used during fiscal 2004 was 3,014,000 GJ, 5% more than in fiscal 2003. |
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 In fiscal 2004, total NOF Group production volume rose by about 10,000 tons, resulting in a 5% increase in energy purchased compared with the previous fiscal year. However, due to various initiatives by Group companies, unit energy consumption relative to production volumes improved by 0.2 percentage point.
| Unit Energy Consumption (Consolidated) |
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Fiscal 2003 |
Fiscal 2004 |
| Energy purchased (thousand GJ) |
2,069 |
2,163 |
| Unit energy (GJ)/products (tons) |
9.16 |
9.14 |
NOF CORPORATION purchased 1,950,000 GJ of energy in fiscal 2004, 6% more than in fiscal 2002. There was a 0.2 percentage point improvement in unit energy consumption based on production volume. Using 1990 as 100, this resulted in a unit energy consumption index of 91.
Excluding NOF, Group energy purchases totaled 213,000 GJ, 5% less than in the previous fiscal year. Nippon Koki Co., Ltd. and Nichiyu Giken Kogyo Co., Ltd. conducted particularly aggressive energy reduction programs.
*NOF activities were evaluated using a benchmark of 3.6GJ/kWh to determine the efficiency of electrical energy.
*Unit energy consumption is the volume of energy purchased per ton of products manufactured, using the 1990 performance as 100. |
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Presented below is a summary of fiscal 2004 environmental activities at NOF factories. |
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Amagasaki Plant
Reduced unit energy consumption from 68 to 66 by improving the thermal insulation of tanks for storing oils used as raw materials. This cut the need for steam, one type of fixed energy expense at the plant. |
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Oita Plant
Unit energy consumption rose from 76 to 82. This was mainly a reflection of a decline in catalyst efficiency due to ageing equipment, a change in the plant’s product mix and the full-scale start of a new business. |
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Chidori Plant
Unit energy consumption rose from 122 to 123. But this plant carried out a major energy conservation investment by upgrading wastewater treatment equipment to a highly efficient system designed to cut energy consumption by about 10%. During the first three months of 2004, engineers confirmed that benefits would be obtained as planned, indicating that a major improvement in unit energy consumption is likely in fiscal 2005. |
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Oji Plant
Unit energy consumption rose from 140 to 142. During a six-month period beginning in December 2003, the operations of this plant were moved to the newly constructed Daishi Plant in Kawasaki. During this time, including the preparatory stage, energy conservation activities were suspended. In addition, energy consumption rose because of redundancies resulting from the operation of two parallel production lines during the first three months of 2004. |
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Aichi Works
Unit energy consumption rose from 113 to 118. One reason was the start of a new business that involved making products requiring a large amount of energy. Another reason was a lower production volume of explosives, which caused fixed energy costs to rise relative to output. In January 2004, this facility formed an Energy Conservation Committee made up of the plant’s executives. Led by the committee, the Aichi Works has started reviewing and revising its energy conservation programs. |
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New Businesses
NOF plans to begin operations at new plants as new businesses are launched. For products derived from these operations, targets have been established based on the efficiency of energy use in the applicable product categories. Improvements are expected once production has been stabilized. |
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In fiscal 2004, the NOF Group released 16,000 tons of CFC greenhouse gases (CO2-equivalent).
In 1995, NOF adopted PFC (perfluorocarbon), a substitute for specified CFCs that was already in use. Although PFC does not harm the ozone layer, it has a much greater global warming potential (GWP) than CO2. NOF cannot halt the use of PFC immediately because of obligations to continue supplying this substance to customers. However, NOF does offer completely sealed systems that recover PFC to prevent its release, and is working with users to identify a suitable replacement.
PFC releases occur during inspections of equipment as regulations mandate systems be opened for tests. Some emissions are unavoidable because recovery of the gas is technologically impossible. |
CFC Emissions (Nonconsolidated, CO2 equivalent)
| Composition of emissions (CO2-equivalent) |
| PFC used as a raw material for products |
98% |
| Releases during equipment inspections |
2% |
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NOF has been working for some time now on achieving goals for improving unit energy consumption. However, the outlook is for deterioration in unit energy consumption and higher greenhouse gas emissions due to shifts in the product mix. These shifts are being caused by the rapid launch of a number of new businesses as well as preparations for several businesses the company plans to start up over the next three years. In response, NOF embarked on a sweeping review of its energy conservation programs in April 2004.
Looking ahead, NOF will be increasing efforts to reach its unit energy consumption goal as well as cut greenhouse gas emissions by 7% relative to the 1991 fiscal year. |
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Among past greenhouse gas initiatives, the following two projects, which required large capital expenditures, have yielded significant benefits. |
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| 1994 |
Establishment of Amagasaki Utility Service
This company was established jointly with Kansai Coke and Chemicals Co., Ltd. to operate a cogeneration facility to supply electricity and steam. Amagasaki Utility Service meets all fuel and electricity requirements of the Amagasaki Plant, boosting the plant’s unit energy consumption by about 20%. |
| 1998 |
Oita Plant Fuel Conversion
Due to an improvement in the plant’s facilities, fuel was switched from heavy oil to LPG. This investment produced an improvement of about 15% in the plant’s unit energy consumption. |
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