Background

Leather Sector of Pakistan is the second most dynamic sector after textiles. It contributes 5% of GDP and constitutes 7% of total export earnings of the country. This sector employs more than 250,000 workers and many are attached to it indirectly. Pakistan’s share in the $60 billion world leather market is only 1.5% and is placed at 20th in world ranking. Currently, this sector is struggling hard to enhance its export share but quality and production costs are the two main challenges faced by it.

Cost of energy contributes heavily to the production cost. Generally, the electrical energy consumption is about 0.97-1.08 MJ (270-300 KWh) and thermal energy is about 2,400-2,720 MJ (75-85 Nm3 of Natural Gas) for producing 1,000ft2 of finished leather.

Inefficient energy consumption, mainly due to leakages in the steam pipes, substandard and absence of insulation, malfunctioning of steam traps, corrosion of pipes, low quality motors, improper use of light bulbs, low power factor, constant speed drives for induction motors, etc., results in wastage of energy resources, high production cost and increase in the green house emissions. Under current practices, about 18-20% saving in energy bills is possible by working on small energy conservation options.

Keeping in view the current energy wastage and in-efficient use in tanneries, Pakistan Tanner’s Association (PTA-NZ) with the financial assistance of Royal Netherlands Embassy (RNE) has initiated the Energy Conservation Project for Punjab Tanneries.

Objectives

The overall objective of the ECPT project is to make the progressive tanneries of the Punjab, energy efficient in their operations, to reduce the air emission, production cost & environmental pollution and conserve the natural resources.

	Make tanneries, energy efficient in their operations
	Reduce air emissions in line with the deliberations of Kyoto Protocol
	Reduce the production cost
	Provide free of cost consultancy services to selected tanneries of Punjab
	Control environmental  pollution and conserve natural resources

Components

	Energy Audit and Action Plans
	Preventive Maintenance Plans
	Design and Implementation of Energy Conservation Technologies (ECTs)
	Energy Reports
	Training and Human Resource Development
	Strengthen PTA-NZ for delivering energy conservation services to its members

Benefits
Energy Efficiency means Substantial Benefits for Tanneries like:

	Identification of energy losses/wastes
	Identification of potential improvement areas of energy conservation
	Energy Efficient Process Control
	Improved data collection and monitoring
	Addressing and resolving energy issues
	Reduction in production costs
	Compliance with ISO 14001 requirements
	Higher opportunity to compete in international market