.~i,-mA' .' 7. -7,*,,> 2-':P-, I,.' ' *":- gs/ r b .'- Energy Assegsmerrt Volume 3 of 4 Vols. Annexes 2-7 August 1979 U.S. Department of Energy Assistant Secretary for International Affairs DISCLAIMER This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency Thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof. DISCLAIMER Portions of this document may be illegible in electronic image products. Images are produced from the best available original document. / DOE/ IA-0009-3 (Dist. Categories UC-2, 13) Joint PerulUnited States Remrt on Pewunited States ~oo~erake- I Energy Assessment Volume 3 of 4 Vols. Annexes 2-7 August 1979 U.S. Department of Energy Assistant Secretary for International Affairs - - -. DISCLAIMER I VOLUME 3 ANNEX 2 REPORT ON THE INDUSTRIAL DEMAND SECTOR OF PERU ANNEX 3 REPORT ON THE TRANSPORT SECTOR OF PERU ANNEX 4 COAL UTILIZATION ANNEX 5 REPORT ON HYDROPOWER - PERU ANNEX 6 STATUS AND PLANS OF NUCLEAR ENERGY IN PERU ANNEX 7 POTENTIAL USE OF SOLAR/WINJJ ENERGY RESOURCES IN PERU ANNEX - 2 REPORT ON THE INDUSTRIAL DEMAND SECTOR OF PERU BY ,[.BARRY G. TUNNAH GORDIAN ASSOCIATES U.,S. - PERU COOPERATIVE ENERGY ASSESSMENT SEPTEMBER, 1978 The data presented in this report have been derived from pub1 i shed documents and a limited series of interviews with Peruvian govern- ment agencies and state-owned operating companies. A partial .review of data, with emphasis on the oil refining sector, has been made in the course of the "Brookhaven" sessions to develop energy options, but no extensive review of other sectors has been per- formed. Subject to this 1imitation, the. information presented on existing processing facilities and planned expansions is be1 ieved t6 be a reasonable reflection of activity in specified areas of the mining, agricultural and industrial sectors of Peru. TABLE OF CONTENTS Page A. SUMMARY. 1 B. INTRODUCTION TO THE STUDY AND THE PERUVIAN INDUSTRIAL SECTOR C. COMMENTARY ON INFORMATION AVAILABILITY' C-1 Adequacy of Current Information on Energy Supply and 'Demand C-2 Acquisition of Necessary Energy Information C-3 A National Energy Information System D. MINING .AND NON-FERROUS METALS PRODUCTION D-1 Introduction D-2 Existing and Planned Production Facilities D-3 Activity Data D-4 Current Energy Consumption D-5 Energy Efficiency of Existing Plants 0-6 Energy Efficiency of New Projects D-7 Projected Energy Consumptions Exhibits E. IRON AND STEEL E-1 Introduction E-2 Existing and Planned Production Facilities E-3 Activity Data E-4 Current Energy Consumption and Energy Efficiency of Existing Plants E-5 Energy Efficiency of New Projects E-6 Projected Energy Consumptions Exhibits F. CEMENT F-1 Introduction F-2 Existing and Planned Production Faci 1i ti es F-3 Activity. Data F-4 Current Energy Consumption F-5 Energy Efficiency of Existing Plants F-6 Energy Efficiency. of New Projects F-7 Projected Energy Consumption Exhibits G. oT'L REFINING G-1 ~ntrbduction 1. 6-2 Existing and planned Processing Facil ities G-3 Activity Data G-4 Current Energy Consumption G-5 Energy Efficiency of Existing Plants G-6 Energy.. Efficiency of New Projects G-7 Projected Energy Consumption Exhibits H. PETROCHEMICALS H-1 Introduction H-2 Existing and Planned Processing Faci 1i ties H-3 Activity Data H-4 Current Energy Consumption and Energy Efficiency of Existing Plants H-5 Energy Efficiency of Proposed Plants H-6 Projected Energy Consumption Exhibits I. CHEMICALS 1-1 Introduction 1-2 Existing and Planned Processing Facilities 1-3 Activity Data 1-4 Current Energy Consumpti on and Energy Efficiency of Existing Plants 1-5 Energy Efficiency of New Projects and Projected Energy Consumptions Exhibits J. FERTILIZERS 3-1 Introduction 5-2 Existing and Planned Processing Facilities 3-3 Activity Data 5-4 .Current Energy Consumption and Energy Efficiency of Existing Plants 5-5 Projected Energy Consumpti on Exhibits K. OTHER MANUFACTURING ACTIVITIES K-1 Introduction K-2 Paper K-3 Brewing L. AGRICULTURE AND .RELATED ACTIVITIES L- 1 Background L-2 Some Statistics \L L-3 Irrigation L-4 Current and Projected Crop Levels and Energy Needs L-5 Livestock and Poul$ry L-6 Fishing L-7 Food Processing L-8 Crop Residues Exhibits M. SUMMARY OF ENERGY CONSUMPTION ESTIMATES Exhibits N. OPTIONS FOR' ENERGY SAVINGS' Exhibits ~. , . _ 0. PUBLISHED DATA SOURCES 1 08 9. LIST OF MEETINGS ATTENDED 109 A. SUMMARY This r-ttpur-1 presents the results of a brief study of industrial, mining and agricultural sector energy demands in Peru. The objectives of the study were to establish current energy demands and sectorial 6. activities, and to project future energy needs through the year 2000. This information is intended for use by Brookhaven National Laboratory in their "Reference Energy Systemt' model which is being used as a pri- mary tool for an assessment of the energy supply-demand situation in Peru. With respect to energy demands, this study covers the following subsectors: Mining and non-ferrous metals Iron and steel Cement Oil .refining , Petrochemical s Chemi cal s Ferti 1i zers Agriculture (major crops) Total energy demands for these subsectors were developed. for 1976, 1985 and 2000, assuming full capacity operation for the majority of the plants. The estimated demands are as ~follows: 1015 Joules per Year -1976 1985 -2000 I Mining and non-ferrous metal s 28.9 51 .6 92.9 Iron and steel 8.6 22.2 80.5 Cement 10.0 17.0 32.4 Oil refining 6.6 11.3 17.9 Petrochemicals Chemical s Ferti 1izers .6.6 14.0 37.3 Agricul ture A number of potential options for reducing energy use in these sectors were developed. These include the foll owing: -- (1) Increased coal use (2) Improved energy efficiency in the manufacturing sector (3) Use of agricul turai wastes as fuel (4) Possible displacement of oil by hydroelectricity (5) Use of geothermal energy (6) Increased use of waste materials for the cement and cori- struction industries (7) Possible promotion of cogeneration systems (electrici ty/steam) The 'full list is given in Section N of this report. Finally, some suggestions are offered for the improved usefulness and analysis of energy-related data. There appears to be a reasonable amount of infor- mation on electricity supply and demand readily available in Peru, but . there is a serious deficiency in data on fuel usage, which betrays a lack of appreciation of the "systems" approach to energy analysis and planning. At a practical level, this lack of appreciation is demon- strated by the "gas turbine syndrome", where a deficit in electrical supply to a project is almost always made up by the installation of yet another gas turbine. The implications for energy resource consumption of this approach are rarely, if ever, analyzed. It is therefore strongly recommended that attention be paid in any follow-up activity to the training of appropriate government and,operating agency personnel to the importance of a rational systems approach to energy resource planning, and thus to the development planning of the nation. 5. INTRODUCTION TO THE STUDY AND THE PERUVIAN INDUSTRIAL SECTOR The study which forms the basis for this report was conducted over a two-week period in June 1978 with a further week of review activities and plant visits in August. The primary objectives of the study were to develop energy demand data for use in an assessment of the energy supply- demand situation for Peru, being conducted by Brookhaven National Labora- tory on behalf of the Department of Energy (US-Peru Cooperative .Energy Assessment Pr~gram). With such a short time available for this phase of the study, it was necessary to be highly selective of the industrial, mining and agricultural subsectors chosen for detailed reiiew. The foll-owing areas were ultimately covered, to a greater or lesser extent, through tne examination of published documents and by a series of. , interviews within Peruvian government rninistri.es, state-owned o~erati'ngc'ornpani'es, and , the private sector (see Section P for a list of contacts): Mining Petrochemicals Non-ferrous metal s production Chemicals Iron and steel Ferti1 i zers Cement Agriculture (major crops) . Oil refining The Peruvian industrial, mining and agricultural sectors are di- verse and well-developed. For example, inn addition to the subsectors chosen. for study, there are. significant activities in the following areas: Shipbui 1ding Fishing Boi lermaking Food processing Heavy engineering Electronics Electrical machinery Glass products Automotive industry Synthetic resins Machine tools Plastics (consumer products) Synthetic fibers Rubber products Pharmaceuticals Texti 1es Wood products Pulp and paper Brewing In fact, the subsectors covered in this study represented about 50% of the, industrial , sector energy demand in 1976 (rising to about 70% by 2000) and close to 100% of the mining sector for the period under study. To put the industrial, mining and agricultural sectors in perspective, the GDP arising from basic activities in 1975 was as follows: (Millions of 1970 US $) Agriculture 993 Fishing 64 Manufacturi cg 1733 Mining and Petroleum 304 Construction 388 Government -692 41 74 Source "Peru in Figures, 1976" Banco continental , Lima.