Circular No. 20/2016/TT-BCT on energy consumption standards in the steel industry

CIRCULAR

Regulations on Energy Consumption Standards in the Steel Industry

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

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

Pursuant to Decree No. 21/2011/NĐ-CP dated March 29, 2011 of the Government detailing and providing implementation measures for the Law on Rational and Efficient Energy Use;

At the proposal of the Director General of the National Energy Agency;

The Minister of Industry and Trade hereby issues this Circular regulating energy consumption standards in the steel industry as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Circular stipulates energy consumption standards in the steel industry during the period up to the end of 2020 and from 2021 to the end of 2025, including production stages such as iron ore sintering; blast furnace pig iron production; open hearth steelmaking, electric arc furnace steelmaking, induction furnace steelmaking; and steel rolling.

2. This Circular does not regulate the following activities: production of pig iron and steel for mechanical casting; production of alloy steel for machine manufacturing; production of hot-rolled steel sheet.

Article 2. Applicability

1. Organizations and individuals operating in the steel industry.

2. Other relevant agencies and organizations.

Article 3. Explanation of Terms

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1. Specific Energy Consumption (SEC) is the total energy consumption of a production stage (Stage) measured in MJ (one million joules) to produce one ton of product.

2. Energy Consumption Standard is the advanced SEC corresponding to each phase as prescribed by the Ministry of Industry and Trade in this Circular.

Chapter II

ENERGY CONSUMPTION STANDARDS AND MEASURES TO IMPROVE ENERGY USE EFFICIENCY IN THE STEEL INDUSTRY

TĂNG CAO HIỆU QUẢ SỬ DỤNG NĂNG LƯỢNG TRONG NGÀNH CÔNG NGHIỆP THÉP

INDUSTRIAL STEEL SECTOR

Article 4. Determination of Specific Energy Consumption

Determination of Specific Energy Consumption (SEC):

1. SEC is determined according to the method specified in Appendix I attached to this Circular.

2. Conversion factors for different types of energy to primary energy as specified in Appendix II attached to this Circular.

Article 5. Energy Consumption Standards for the Steel Industry up to 2025

1. Energy Consumption Standards for the Steel Industry up to 2020.

2. Energy Consumption Standards for the Steel Industry from 2021 to 2025.

Article 6. Requirements for Ensuring Energy Consumption Standards up to 2025

1. The SEC of steel industry production facilities from now until the end of 2025 shall not exceed the energy consumption standards prescribed in Clause 1 and Clause 2 of Article 5 of this Circular.

2. In cases where the SEC of steel industry production facilities exceeds the energy consumption standards corresponding to each phase, the production facility must develop and implement measures to improve energy use efficiency to meet the requirements stipulated in Clause 1 and Clause 2 of Article 5 of this Circular.

3. The SEC of new investment projects or expanded projects shall not exceed the values prescribed in Clause 2 of Article 5 of this Circular.

Article 7. Some solutions to improve energy efficiency in the steel industry

1. Some solutions to improve energy efficiency include:

- Establishing the ISO 50.001 energy management system for units and implementing measures to enhance energy efficiency in energy management;

- Energy efficiency improvement solutions with low investment levels (replacing individual equipment with higher energy efficiency);

- Energy efficiency improvement solutions with high investment levels (replacing one or several clusters of equipment with higher energy efficiency or changing technology to improve energy efficiency).

2. Encourage organizations and individuals to apply the energy efficiency improvement solutions as stipulated in Clause 1 of Article 7 and Appendix V issued together with this Circular.

Chapter III

IMPLEMENTATION

Article 8. Responsibilities of the General Department of Energy

1. Take the lead and coordinate with relevant agencies to guide, organize supervision, and inspect the implementation of the contents of this Circular.

2. Nationwide, the National Energy Agency shall coordinate with the Departments of Industry and Trade at localities to inspect the implementation of energy consumption standards, the feasibility of plans to ensure energy consumption standards according to the roadmap (if necessary).

3. Based on the inspection results, the National Energy Agency shall report to the Minister of Industry and Trade regarding cases that fail to comply with the provisions of Article 5 of this Circular and propose handling measures in accordance with current laws.

Article 9. Responsibilities of Provincial Departments of Industry and Trade

1. Coordinate with the General Department of Energy to guide, urge, and inspect the implementation of energy use in a thrifty and efficient manner in accordance with the contents of this Circular.

2. Annually, take the lead in inspecting the implementation of energy consumption standards, the feasibility of plans to ensure energy consumption standards according to the roadmap (for production facilities not yet meeting the standards) of steel industry production facilities in localities.

Article 10. Responsibilities of Production Facilities, Organizations, and Individuals

1. Organizations and individuals operating in the steel industry must have plans to comply with the provisions of Article 5 of this Circular.

3. Production facilities that do not meet energy consumption standards at the specified time and cannot present feasible plans to ensure the standards according to the roadmap stipulated in Article 5 of this Circular will be subject to penalties under current laws.

Article 11. Effective Date

1. This Circular takes effect from November 8, 2016.

2. Projects with investment approval decisions made by competent authorities after this Circular takes effect must comply with Clause 2 of Article 5 of this Circular.

3. During implementation, if there are any issues, agencies, organizations, and individuals shall promptly reflect them to the Ministry of Industry and Trade for research, revision, and supplementation of this Circular./.