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Description
EMI Ltd., a medium-sized company with over 20 years of expertise in natural gas transmission, distribution, mobile repositories, and station operations, is poised to embark on a transformative initiative.
At the heart of the project is the establishment of a new organizational model for real-time monitoring, measurement, and distribution of compressed natural gas. This strategic move is geared towards fostering environmentally sustainable practices, ushering in a "greener" and "cleaner" production process. The deployment of an innovative Intelligent System for Measurement and Remote Distribution of Natural Gas Consumption, coupled with the introduction of advanced equipment and sustainable solutions, forms the cornerstone of our approach.
Our collaboration with Norsk Energi, a leading Norwegian consultancy specializing in energy, environment, and safety, underscores our commitment to success. Leveraging their sector-specific expertise, consultations, and specialized training, EMI Ltd. is well-positioned to implement and realize the goals of this project.
The tangible outcomes of this project encompass the implementation of an Intelligent System for real-time monitoring, measurement, and remote distribution of natural gas consumption, the development of a comprehensive analysis and report on Cleaner production implementation, the provision of two training sessions on Cleaner production methodology, and the creation of three new job opportunities—contributing not only to the growth of our company but also to the broader workforce.
Summary of project results
EMI Ltd. encountered several critical challenges that impacted its operations, efficiency, and profitability, stemming from both external infrastructure limitations and internal inefficiencies.
1. Limited Natural Gas Infrastructure: Bulgaria’s natural gas infrastructure was only partially developed, with pipeline networks accessible to just 20% of municipalities. This severely restricted EMI Ltd.’s bility to expand its customer base beyond those regions lacking pipeline access, compelling the company to rely heavily on transporting compressed natural gas (CNG) to meet customer needs. The limited infrastructure posed logistical constraints and higher operational costs, as the transportation model required additional resources compared to direct pipeline distribution.
2. Outdated Order Management System: EMI relied on traditional communication channels such as email, phone, and fax for customers to request CNG refueling or trailer replacements. This outdated system created delays, inefficiencies, and a lack of visibility into real-time customer requirements. The absence of an automated or digital ordering platform further hampered EMI’s ability to streamline its processes and anticipate customer needs effectively.
3. Lack of Real-Time Inventory Monitoring: Neither EMI Ltd. nor its clients had access to real-time information about the remaining CNG levels in BDF (Bulk Distribution Frame) trailers positioned at client facilities. This lack of transparency prevented precise inventory management and led to suboptimal decision-making.
4. Inefficient Resource Utilization: In the absence of accurate data on remaining CNG levels, customers ordered replacement trailers preemptively to avoid disruptions to their business operations. This practice left 20-25% of the CNG in each trailer unused. The unused CNG posed logistical challenges for EMI Ltd., as the residual quantities were insufficient to serve other clients, rendering the trailers non-viable for redistribution.
5. Increased Transportation Costs: The need to transport partially full trailers back to the "mother" compressor station added to EMI’s logistical burden. The doubled transportation costs—first delivering the trailers to customers and then returning them with residual gas—significantly impacted operational efficiency and profitability.
6. Misalignment of Customer Practices with EMI’s Costs: Customers paid only for the gas they consumed, based on measurements from their gas flow meters. They did not account for the operational costs EMI Ltd.incurred in retrieving and managing the leftover CNG. This discrepancy created a financial imbalance, as EMI Ltd. bore the expenses associated with handling the unused gas, which remained outside the scope of customer payment.
7. Profitability Challenges: The combination of underutilized resources, increased transportation costs, and manual order management processes reduced EMI Ltd.’s profitability. The inefficiencies in resource use and the cost of doubled logistics operations made it difficult for EMI Ltd. to maximize returns on their services, thereby challenging the sustainability of their business model.
EMI Ltd.’s challenges were multi-faceted, arising from external limitations in Bulgaria’s infrastructure and internal inefficiencies in operations. Addressing these issues would have required investments in technology for real-time monitoring, process automation, and strategies to optimize resource utilization, which could help reduce costs and improve service effectiveness.
The Blue Goes Green project implemented a series of targeted activities aimed at optimizing EMI Ltd.''s natural gas distribution processes through the adoption of innovative, environmentally friendly technologies and practices. The project brought both technological and organizational advancements to the company, achieving its objectives through the following key actions:
1. Introduction of a New Organizational Model: The project established a state-of-the-art organizational model for real-time monitoring, measurement, and distribution of compressed natural gas (CNG) at the enterprise level. This model enhanced EMI Ltd.''s green working processes and improved its overall business indicators by increasing operational efficiency and resource utilization.
2. Deployment of Green and Intelligent Solutions: An innovative Intelligent System for Real-Time Monitoring, Measurement, and Remote Distribution of natural gas was introduced. This system provided real-time data to both EMI Ltd. and its clients regarding available quantities of natural gas. It improved transparency by offering uninterrupted access to the gas network and highlighting potential losses. Customers gained online access to delivery details, including residual CNG levels, which allowed replacements to occur only when necessary, minimizing waste and ensuring efficient logistics.
The project included the purchase of a EURO 6 specialized gas-powered vehicle to replace an outdated diesel-powered EURO 3 model. The new vehicle reduced fuel costs by four times per transported unit of gas and cut harmful CO₂ emissions by approximately 19 tons annually. Its extended mileage range optimized EMI’s logistics capacity, while its environmentally friendly profile aligned with the project''s sustainability goals. This also resulted in the creation of two full-time jobs for vehicle operation and logistics support.
Two additional BDF trailers, marked as high-risk vessels, were acquired. These trailers increased the security and flexibility of EMI Ltd.''s supply chain, especially during peak seasons when they served as backup storage for high-consumption clients. Off-peak, the trailers were used to supply new customers, enabling the company to attract new clients and achieve an estimated 5% annual sales growth. The new trailers also enhanced the effectiveness of the Intelligent System and the specialized vehicle, ensuring seamless logistics.
3. Collaboration with a Norwegian Partner: The Norwegian project partner contributed valuable expertise, sharing sector-specific knowledge and good practices. They conducted analyses and prepared reports on the implementation of cleaner production processes, which included designing and detailing the new system. Their involvement ensured that the green solutions were customized to suit EMI’s operational profile, maximizing efficiency and aligning with the company’s production processes.
4. Specialized Staff Training: The project provided training programs for EMI’s employees, focusing on topics such as quality norms, cleaner production principles, workplace health and safety, and resource efficiency. This initiative improved staff competence and raised awareness about the importance of greener and cleaner production practices, ensuring successful implementation and long-term sustainability.
5. Environmental and Business Impact: The project delivered significant environmental benefits by facilitating EMI''s transition from traditional energy sources to natural gas, which drastically reduced emissions of sulfur oxides (SOx), nitrogen oxides (NOx), particulate matter (PM), and greenhouse gases. Furthermore, the integration of new technologies and green practices boosted EMI''s operational efficiency, improved logistics, attracted new clients, and enhanced the company’s competitive edge.
In conclusion, the Blue Goes Green project successfully transformed EMI Ltd.’s approach to natural gas distribution by integrating advanced technologies, upgrading equipment, optimizing logistics, and fostering a culture of sustainability. These changes not only improved the company''s environmental impact but also strengthened its business performance and market position.
The Blue Goes Green project focused on introducing innovative and environmentally friendly technologies, solutions, and services aimed at optimizing natural gas distribution for EMI Ltd. The project leveraged existing green technologies and solutions that were already available in the market but were previously unfamiliar to the company. Through this initiative, EMI Ltd. gained the ability to integrate these advanced solutions into its operations for the first time, marking a significant step toward sustainable business practices.
A key aspect of the project was the collaboration with a Norwegian partner, who brought extensive expertise and experience in green technologies. The partner played a crucial role in adapting and customizing these solutions to align with EMI Ltd.’s specific organizational profile and production processes. This ensured a tailored approach that maximized the efficiency and applicability of the implemented methods.
The project also introduced new organizational and production methods designed to enhance EMI Ltd.''s green working processes. These improvements not only aligned with environmental objectives but also positively impacted the company’s business performance by optimizing its operations and resource management.
From an environmental perspective, the project significantly contributed to reducing emissions by promoting the transition from traditional energy sources to natural gas. This switch helped eliminate or drastically reduce the release of harmful substances, including sulfur oxides (SOx), nitrogen oxides (NOx), particulate matter (PM), and greenhouse gases. By adopting these greener solutions, EMI Ltd. demonstrated a commitment to sustainability and environmental stewardship, creating a positive impact both for the company and the broader ecosystem.
In summary, the Blue Goes Green project successfully introduced state-of-the-art green technologies to EMI Ltd., improved its operational efficiency, and contributed to substantial environmental benefits by reducing harmful emissions through the adoption of cleaner energy practices.
Summary of bilateral results
The Norwegian partner - Norsk Energy AS was involved in two main activities: analyses and provision of a report; and specialized training. As a result of thorough analyses a report on Cleaner production was prepared and approved by the Promoter. In addition in August 2020, a specialized trainings on Cleaner Production principles were also held. Along with the main topic, the company and its Norwegian partner have discussed key issues related to: Energy auditing, Quality norms, Health, Safety and Environment, resource efficiency, and etc.