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Manufacturing Energy Use Survey: Year ended March 2006
Embargoed until 10:45am  –  22 March 2007
Commentary

Overview

This Hot Off The Press presents the results of the 2006 Manufacturing Energy Use Survey (MEUS). The survey was carried out by Statistics New Zealand, in collaboration with the Ministry for Economic Development and the Energy Efficiency and Conservation Authority, with the aim of enhancing energy use information in New Zealand. The survey delivers newly available statistics on energy use by the New Zealand manufacturing industry.

The MEUS collected information on energy use and energy management practices in the manufacturing industry for the 12-month period ending 31 March 2006. The main unit of measurement for this publication is the petajoule (PJ). A petajoule of energy is roughly equivalent to all the petrol in a coastal tanker with a load of 25 million litres or the total electricity used by 35,000 households in one year.

Total energy use

In the year ending March 2006, the manufacturing industry used 149.19 petajoules of energy. The table below shows energy use by manufacturing industry group.

Energy Use by Manufacturing Industry Group

Industry group Energy use (PJ)
Wood and paper product manufacturing 57.83
Food, beverage and tobacco 36.47
Metal product manufacturing 27.65
Petroleum, coal, chemical and associated product 12.70
Non-metallic mineral product manufacturing 8.93
Textile, clothing, footwear and leather manufacturing 2.46
Machinery and equipment manufacturing 1.90
Printing, publishing and recorded media 0.81
Other manufacturing 0.45
Total manufacturing industry 149.19

Note: Data may not sum to stated totals due to rounding.

In the March 2006 year the wood and paper product industry was the largest user of energy within the manufacturing industry, accounting for 39 percent of the total energy used. Half the energy used by this industry group was sourced from wood and wood-waste products.
The food, beverage and tobacco industry was the second-largest user of energy, accounting for just over 24 percent of the total energy used by the manufacturing industry. The metal product manufacturing industry used 19 percent of the total energy, at 27.65PJ. The metal product manufacturing industry includes the manufacture of iron and steel, basic non-ferrous metals, sheet metal products and fabricated metal products.

The remaining industry groups collectively used 27.25PJ, just over 18 percent of the total. The printing, publishing and recorded media manufacturing industry and the ‘other’ manufacturing industry collectively accounted for less than 1 percent of total energy used. These industries are less energy intensive as their production processes generally do not require heavy machinery or process heat. The ‘other’ manufacturing industry includes the manufacture of prefabricated buildings, furniture and other manufacturing not elsewhere classified.

Energy types used

The manufacturing industry used a range of energy types in the March 2006 year, reflecting the diverse nature of manufacturing processes. The graph below shows the amount of each energy type used for this period.

Graph, Total Manufacturing Energy Use by energy type.

Electricity

Electricity was the energy type used in greatest quantity, with just over 33 percent of total energy use. The metal product manufacturing industry was the largest electricity user, at 44 percent of the total. The second-largest electricity user was the wood and paper product industry (just over 26 percent) followed by the food, beverage and tobacco industry (almost 16 percent).

Graph, Total Manufacturing Energy Use by industry group.

Wood and wood waste

Wood and wood waste was the second-largest energy type used for the March 2006 year, at 20 percent of total energy use (29.25PJ). Wood and wood waste, as an energy type, includes shavings, sawdust, bark and black liquor. The wood and paper product industry was the largest user of this energy type, accounting for 20 percent of the total.

Natural gas

Natural gas also accounted for 20 percent of total energy use (at 29.20PJ).

Coal

Coal used for the year ending March 2006 was 18.26PJ or 12 percent of total energy. The largest user of this energy type was the food, beverage and tobacco industry, at 66 percent of the total.

Petroleum products

Information was collected by MEUS on the following petroleum products: diesel, fuel oil, liquefied petroleum gas (LPG) and petrol. Petroleum products as a whole accounted for just under 10 percent of the total energy used.

The total amount of diesel used by the manufacturing industry for the March 2006 year was 5.47PJ. Until now, there have been limited statistics on diesel use, particularly in regards to who uses diesel and how it is used. The graph below shows diesel use across the manufacturing industries for the March 2006 year.

Graph, Total Diesel Energy Use by industry group.

In the March 2006 year, over 62 percent of the total diesel used by the manufacturing industry was for road vehicles. The remaining 38 percent was used for other purposes, such as stationary industrial processes or operating off-road machinery including forklifts.

Graph, Pourpose of Diesel Energy Use by industry group.

Fuel oil use for the March 2006 year was 4.82PJ, or just over 3 percent of the total energy used. The largest user of fuel oil was the petroleum, coal, chemical and associated product manufacturing industry, which used half the total.

The total amount of liquefied petroleum gas (LPG) used by the manufacturing industry for the March 2006 year was 2.59PJ, just under 2 percent of the total energy used. Almost all LPG use was for purposes other than the operation of road vehicles, being mainly for forklifts and process heat (around 99 percent).

Petrol was the energy type used in the smallest amount by the manufacturing industry, at 1.77PJ or just over 1 percent of total energy. This reflects the nature of the manufacturing industry; the main energy requirements are for machinery and processing, rather than for road transport.

Of businesses that used petroleum products, 89 percent reported having a fuel card or fleet-management system to account for transport vehicles and consumption of transport fuels.

Other energy types

Other energy types used by the manufacturing industry included geothermal steam, waste heat, and steam purchased from third parties. These energy types accounted for just over 5 percent of the total energy used (8.01PJ).

On-site electricity generation

Just over 1 percent of industrial sites in New Zealand reported electricity generation occurring on-site. In many cases the generation plant was owned and operated by a third party, often an energy company.

In the year ending March 2006, electricity generated on these manufacturing sites totalled just over 6 PJ. Although the generation plants were often owned by third parties, information is reported here because it was embedded into the manufacturing sites and often the processes. However, the quantity of electricity generated was not included in the total energy use figure to avoid double counting as the energy types used for the generation were already accounted for.

The nature of the generation varied, from electricity generation such as transforming one fuel source into electricity, through to cogeneration – the simultaneous production of electricity and a useful form of heat from a common fuel source. The majority of this electricity was used on-site although a number of respondents noted that surplus electricity was exported to the national grid.

The most common fuel source used as an input into the generation process was natural gas, followed by wood and wood waste. Other inputs for electricity generation included coal, diesel, and residual process heat.

Around 1 percent of businesses reported they have considered on-site electricity generation within the past 12 months.

Energy management

Energy monitoring

Fifty-seven percent of businesses reported that they actively recorded and monitored their energy use in the March 2006 year.

Energy reduction targets were set by 21 percent of businesses. Of these businesses, 55 percent reported having successfully met their previous energy reduction targets. The graph below shows the range of energy reduction targets as set for the next 12 months.

Graph, Energy Reduction Targets Set.

Energy management practices

Nine percent of businesses reported having a formal energy policy in place. A formal policy was defined as one that was documented and signed-off by senior management. Thirty-seven percent of businesses reported having an informal energy policy.

In 31 percent of manufacturing businesses, a staff member was assigned responsibility for energy management. Of this group, 64 percent reported that this person worked one to four hours per week on energy management, and a further 12 percent reported five to nine hours per week. Just over 1 percent reported 40 or more hours per week.

There were 63 percent of businesses which had at least one of the following staff awareness programmes in place to encourage energy reduction:

  • Recognition of energy-reduction initiatives
  • Signs or stickers to encourage staff to turn off lights or equipment when safe to do so
  • Providing information to staff on how energy use can be reduced
  • Other initiatives.

Other initiatives reported included:

  • Energy-use audits
  • Capital expenditure on energy-efficient technology
  • Investment in energy-saving applications such as motion sensors, daylight switches, and car maintenance
    Environment management systems.

For technical information contact:
Martin Brown-Santirso
Wellington 04 931 4600
Email: info@stats.govt.nz

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