Klinbuilding - Roland

Overview of the Hybrid Hoffman Kiln Concluding Workshop for “Improving Kiln Efficiency for the Brick Making Industry - PDF B Phase”

March 29, 2007

Overview of Hybrid Hoffman Kiln • HHK has dominated the brick industry in China for over 10 years • Energy efficient • Environmentally friendly • Lowers production costs • Produces stronger quality bricks • Improves working conditions • Year-round operations

Energy saved by placing a roof over the baking area

Kiln roof constructed …..

and insulated with compacted clay to further prevent energy losses

Result: Less coal consumed…….reduced GHG emissions

“Internal fuel” through the mixing clay and coal …….further improvements in energy efficiency

Sustainable development benefit…….reduced air pollution

Sustainable development benefit…….stabilized work force

Improved quality bricks…..

Diversified Product Base

Improved brick industry efficiencies will meet growing demand for bricks

Summary of Emissions Reductions Description

Annual Production

Emissions (tons CO2 eq.)

2.0 mil

760

Energy Inefficient Kiln x 7.5

15.0 mil

5700

New Emissions Reduction Technology - HHK

15.0 mil

2955

Energy Inefficient Kiln

Emission Reductions (per HHK)

2745

Cost of Demo Kiln • Cost of the actual kiln • Cost of back process

Tk 3.4 mil (US$50,000) Tk 27.2 mil (US$400,000)

• Total cost Tk 37.4 mil (US$550,000) (complete kiln with mechanized back processes and land acquisition) • Financing: Debt to equity ratio: 65:35: Loan amount Tk 24.3 mil Equity Tk 13.1 mil

Investment Profile • Comparative production cost: HHK Technology:

Tk 1.35/per brick

Current technology:

Tk 2.10 per brick

• Rate of return:

>30%

• Life:

>20-year life

• Payback period:

2 to 3 years

Investment Risks • Can the entrepreneur manage the larger operation? • Will there be well-trained staff to support and operate the business? • Will government fiscal policies encourage energy efficient brick businesses? Full GEF project is designed to reduce these risks