Magnifying Competitiveness
and Competences of Green-Tech
Businesses in Egypt
Energy Effi
ficiency & Resources
Utilization in Egypt
Author:
ECITD
Last version:
06.07.2022
2022
This work is part of MC2 project in relevance to WP2 ASSESSING INDUSTRIES ENERGY-RESOURCES
CHARACTERISTICS/ TECHNICAL CHALLENGES & PROPOSED SOLUTIONS
This study is prepared as part of the T2.1 Data Gathering & Assessment Phase
– Mapping Exercise and corresponds to the need for an industrial process
map. In this respect, the report aims to support defining the status quo of the
MC2 target sectors with respect to energy-resources utilization. This report is
based on disk research and interviews and shall be complemented, for further
update, with additional interviews and bilateral meetings with key
stakeholders in addition to structured workshops. The outputs of these
interviews and workshops will support constructing the industrial process
map for the target sectors of MC2 project.
The optimising mapping methodology includes classifying data collected
(Step 1: desk studies, literature reviews) from industry to particular modules
with possible cross-linkages among multi-sector and disciplines in order to
define the status quo of the target sectors regarding energy-resources
utilizations.
EuropeAid Programme
(ENI/2019/413-557)
Table of Contents
List of Figures
3
List of Figures
3
1. Egypt is an energy intensive industrialized country
4
2. Potential for energy efficiency in the industrial sector
5
3. The energy efficiency of the Manufacturing sector in Egypt
6
4. Suggested energy efficiency and conservation technologies
7
5. Procedure for identifying appropriate option
12
6. Elements of impact and uncertainties
13
7. Energy efficiency in MC2 selected sectors
14
7.1. Textile industry
14
7.2. Food industry
17
7.3 Cement industry
21
7.4 Automotive industry
23
7.5 Healthcare and pharma industry in Egypt and energy utilization.
27
8. Transversal improvement options
28
8.1 Industrial systems
28
8.2 Awareness
29
8.3 ISO500001:2011
29
8.4 Utilities
30
9. Resources efficiency highlights
30
9.1 Textile materials; recycling, repurposing and re-use
30
9.2 Precision agriculture and Water for Agriculture
33
9.3 Materials for the automotive industry
36
10. Promising & emerging practices and exemplars of commercialized opportunities for
disruptive and/or fast-growing investable companies
37
10.1 Precision Agriculture and resources efficiency
38
10.2 Textile recycling and resources efficiency
40
10.3 Energy and resources efficiency
42
References
45
Page
2
List of Figures
Figure 1: Technological Methods of Energy Conservation in Non-petroleum Industries in Egypt. ........................................14
Figure 2: Egypt imports of textiles materials from 2003 to 2017. .................................................................................................................... 16
Figure 3: Average Labor Cost in the Textiles Sector in Egypt and Comparitive Countries, (USD/hr). .................................... 16
Figure 4: The Total Cultivated Area in million feddan (1 Feddan = 4200m2) ..........................................................................................18
Figure 5: The total value of agricultural production. ................................................................................................................................................ 19
Figure 6: Number of food companies per sector according to CAPMAS 2018 ...................................................................................... 19
Figure 7: Amount of cement export in Egypt. ............................................................................................................................................................. 22
Figure 8: Production capacity vs demand of cement .......................................................................................................................................... 22
Figure 9: Cost of production of cement in Egypt. ..................................................................................................................................................... 23
Figure 10: Main market enablers and industry challenges of automotive industry in Egypt, Frost & Sullivan 2018. .24
Figure 11: Share of automotive sales in Egypt from January to May 2019, by type of vehicle. Source: STATISTA 2022.
...................................................................................................................................................................................................................................................................... 25
Figure 12: Material composition of a vehicle and its principal part production process. ............................................................... 25
Figure 13: Typical energy consumption in vehicle production per material and energy resource. ....................................... 26
Figure 14: The textile waste estimation model............................................................................................................................................................. 31
Figure 15: Textile material flow in the Egyptian textile and clothing industry in 2019 (in tons). ............................................... 32
Figure 16: Egypt Trade deficit in textile industry 2019 ............................................................................................................................................ 33
Figure 17: Egyptian Nile water system, red values are sinks, blue are sources, and purple indicates reuse. ...................34
Figure 18: Mass of materials and resources consumed in automobile production........................................................................... 36
List of Tables
Table 1: Technological Methods of Energy Conservation in Non-petroleum Industries in Egypt. ........................................... 12
Table 2: Size of textile companies in Egypt. .................................................................................................................................................................... 15
Table 3: Size of Food companies in Egypt. Source, CAPMAS, 2020................................................................................................................18
Table 4: Percentages of electricity consumption in food, beverage and tobacco sectors across governorates 2015.
....................................................................................................................................................................................................................................................................... 21
Page
3
1. Egypt is an energy intensive
industrialized country
Egypt is the continent's largest oil and natural gas consumer, accounting for roughly 20%
of petroleum and other liquid fuel consumption as well as 40% of natural gas usage in
Africa (Salma I.Salah, 2022). Over the last several decades, there have been a number of
important reasons behind Egypt's rapid energy use expansion, including increased
industrial production, economic development, energy-intensive natural gas industry in
addition to the relatively sales increase of the automotive industry (Han Hongyun, 2021;
Blumine, 2022).
The industrial sector in Egypt currently employs 1.5 million people and accounts for around
30% of GDP. It is the second-highest consumer of energy accounting for 19.4% of the total
energy consumption in 2010 with an average annual growth rate of 6.5% till 2020,
according to a study by the Ministry of Electricity and Energy (MEE), raising its energy
consumption from 9.5 million TOE (tonnes of oil equivalent) in 2010 to 15.7 million TOE in
2020 (ENER, 2022). Iron & Steel, Cement, Aluminium, Food, Fertilizers, Textile, and rubber
industries account for more than 70% of total energy consumption among industrial
sectors in Egypt.
Inefficient use of energy in the industrial sector is therefore a major challenge that needs
to be tackled urgently (Han Hongyun, 2021). Various studies have shown that industrial
energy efficiency measures can save significant amounts of energy and money. Currently,
the largest share of the oil consumption in Egypt is absorbed by the transport sector (49%),
followed by the power sector (17%), buildings (14%), and industry (12%) (Salma I.Salah, 2022).
Egypt maintains one of the most energy-intensive industrial sectors in the MENA region,
and energy consumption per unit of output in Egyptian industries is up to 50 per cent
higher if compared to the international average.
In July 2014, electricity prices were increased as part of a five-year plan which aims to start
generating profits from electricity, which was sold at that time for less than half its
production cost. Egypt completely phased out electricity subsidies in 2019, and electricity
prices have increased significantly. This has put financial pressure on numerous industrial
sectors throughout the country.
The Egyptian government has recognized the importance of renewable energy and
continues to support it. The Egyptian electricity sector has implemented aggressive
energy initiatives that aim to raise the proportion of electricity generated from renewable
resources to 42% of all generation in Egypt by 2035 while with implementation of
additional set of policies this percentage can reach 53% (IRENA, 2018) . The strategy has
been updated to include a promise to eliminate coal from the energy mix and replace it
Page
4
with renewable energy. The Egyptian government will continue supporting renewable
energy sources in accordance with Egypt Vision 2030 and conforming to sustainable
development objectives (Blumine, 2022; NREA, 2020).
2. Potential for energy efficiency in the
industrial sector
The industrial sector in Egypt has a lot of potential for savings through improved energy
efficiency. It is estimated that by implementing specific energy efficiency measures, 8% of
the total national consumption of energy can be saved. These measures include improving
the efficiency of processes and equipment, using energy-efficient technologies,
rationalizing energy use, and waste heat recovery.
There are a number of initiatives that have been taken by the government to improve
energy efficiency in the industrial sector. The government had set a target to reduce
energy intensity by 20% by 2020. In order to help achieve this, the government has
established a programme known as "Energy Conservation in Key Economic Sectors"
(EKEP), which is designed to reduce energy consumption in key economic sectors
(Hossain Mondal, 2019; Blumine, 2022). In addition, an agreement was recently signed
between the National Agency for Energy Conservation and the International Finance
Corporation that will see massive infrastructure investments from the private sector being
channelled into energy efficiency initiatives. The pilot project includes the installation of
HVAC units, replacement of old machines and shutdown procedures for factories during
peak hours. Furthermore, with a five-year target of reducing energy consumption by 25
percent, the National Energy Efficiency Action Plan (NEEAP) has been implemented in
Egypt (2012-2015). There is now an EE unit at the Council of Ministers' secretariat that is
responsible for developing and implementing this plan. However, there is no dedicated
energy efficiency agency to support the plan implementation, and there is no legal
framework for the associated measures (Breisinger, 2019).
There are a number of challenges that need to be tackled in order to improve energy
efficiency in the industrial sector. These include:
•
Lack of awareness of the importance of energy efficiency among
employees and management.
•
Lack of data on energy consumption and performance of industrial
facilities.
•
Inadequate financing for energy efficiency projects.
•
Unstable supply of energy.
•
Lack of expertise and know-how in the field of energy conservation.
•
Old equipment consumes more energy than modern technologies.
•
Illegal connections to the national grid (estimated at around 10%
according to some studies).
Page
5
The availability of financial resources is another barrier that must be overcome to improve
energy efficiency in the industrial sector. The lack of affordable financing is often a key
reason why companies do not invest in energy efficiency measures and tools. In order to
overcome this obstacle, the government can offer further incentives such as tax breaks
and subsidies for companies that invest in energy efficiency measures (Thomson, 2019).
The government should also work with banks and financial institutions to develop
financing programmes for energy efficiency projects. In addition, the government can
promote public-private partnerships to finance energy efficiency initiatives.
Improving energy efficiency in the industrial sector is one of the most effective ways of
reducing energy consumption and greenhouse gas emissions (Mohamed Ramadan, 2019).
The Egyptian government is also deliberating efforts to encourage investment in energyintensive industries that use technology to reduce their carbon footprint. It has recently
created a special tariff for these companies which allows them
The following are the factors that hamper industrial energy efficiency in Egypt:
•
High cost of capital.
•
Low economic growth rates.
•
Low tariff structure on utility bills.
•
Poor technical expertise.
•
Lack of awareness about the benefits of energy efficiency.
•
Lack of regulatory framework for energy-intensive industries.
Inadequate demand for industrial equipment in the private sector.
3. The energy efficiency of the
Manufacturing sector in Egypt
In Egypt, the manufacturing sector contributed significantly to the total energy
consumption in the past decades. In order to study the factors affecting the energy
efficiency of the manufacturing sector in Egypt, a questionnaire survey was conducted in
2018 on a sample of 41 firms from different sectors. The results showed that there is a
significant difference between the actual and acceptable rate of increases in demand for
the final product. The results also showed that there are significant differences among the
responses of different sub-sectors in terms of their perceptions concerning the production
capacity, use of energy-efficient equipment and purchase/production plans to deal with
the increasing fuel prices. Furthermore, it was found out that the manufacturing sector
can save up to 13% through effective implementation of certain measures suggested to
overcome the critical energy situation in Egypt (Mohab M. Salem, 2018).
There are a couple of strategies for energy utilization in the manufacturing sector in Egypt.
The first is to promote the energy efficiency of end-use equipment. The second is to
increase the capacity of electrical power plants while minimizing their harmful effects on
the environment. In addition, there are some essential key elements or technologies which
Page
6
are considered a priority for development: the wide adoption of insulation materials,
cogeneration and waste heat recovery systems, efficient lighting technology, and efficient
vehicles for transportation (Mohamed Ramadan, 2019; Hossain Mondal, 2019)
The Egyptian government should put more emphasis on policies that support energy
efficiency measures, which should include:
•
Regulation of the energy efficiency of equipment, through the adoption
of energy performance standards or codes.
•
Provision of financial incentives, such as subsidies and tax breaks, for
the purchase of energy-efficient equipment.
•
Development and dissemination of best practices in the use of energyefficient technology and equipment.
•
Improvement of factory monitoring systems to regularly assess the
energy consumption performance of each factory.
•
Establishment of a system to disseminate energy use information,
including an online database for suppliers and factories.
•
Promotion of demand-side management practices, such as feedback
on electricity bills, time limitation of electricity supply per hour,
reduction in steam pressure, and the use of low-cost energy
management systems.
4. Suggested energy efficiency and
conservation technologies
The Egyptian Ministry of Petroleum and Mineral Resources with support from the
International Finance Corporation (IFC) developed an energy efficiency program to reduce
energy consumption in small and medium-scale enterprises (SMEs) in 2019. In the initial
phase, IFC established a partnership with 4 companies, which are Egyptian General
Petroleum Corporation, the Egyptian Natural Gas Holding Company, the Egyptian South
Valley Holding Company, and the Egyptian Holding Company for Petrochemical (IFC,
2019). This partnership builds on a study conducted earlier that aims to assess the potential
energy savings that can be realized through implementing energy-efficient equipment at
SMEs, estimate the investment costs for these technologies and assess the economic
feasibility of these measures. The Egyptian Ministry of Petroleum and Mineral Resources
with support from the World Bank established a working group to review existing
literature on energy use in Egyptian SMEs and identify potential opportunities for energy
savings. Literature reviews and secondary data collection were conducted at three
industrial facilities: Alexandria port, Cairo steel production plant and Giza cotton spinning
and weaving plant. A descriptive analysis was conducted on data collected and a series of
case studies were carried out on selected industrial facilities. A survey questionnaire was
developed to address the following issues:
•
Energy end uses
Page
7
•
Energy efficiency practices
•
Energy efficiency technologies available
•
Investment costs for potential energy-efficient equipment.
In Alexandria port, the survey results showed that energy is mainly used for lighting and
process heating. In the steel production plant in Cairo, electricity was found to be mainly
consumed by electric arc furnaces, while direct heat requirement accounted for most of
the total energy consumed in the spinning and weaving plant.
The study suggested the adoption of energy-efficiency technologies that are currently
available, including improved utilization of existing equipment, process changes,
process integration, heat recovery and demand management. The results showed that
energy efficiency measures are financially viable for Alexandria port where electricity is
used as a main form of energy. At the present market conditions, for the Giza cotton
spinning and weaving plants, the suggested measures would not be financially viable
since the plant operates on a low margin. For steel production plants, it is shown that
implementing some energy-saving options would be marginally profitable. Policies and
guidelines for encouraging replication of successful energy efficiency practices in other
SMEs should target small enterprises employing fewer than 50 workers, which were found
to account for almost 75% of the registered manufacturing enterprises in Egypt.
An ESCWA analysis of energy efficiency shows that there are several well-proven, energy
efficiency and conservation technologies,which have been successfully applied in the
industry, and can be extensively adopted in Egypt. Some of them are limited to specific
industries, while others can be replicated in different sectors. A brief description of the
eleven technologies that are widely used is given below.
I. Industrial process control
These control systems, usually microprocessor-based, are used to control energy, material
and other inputs; Hence they improve the overall efficiency of the plant. They have been
developed to improve the productivity of all aspects of industrial processes and can be
applied to control a single unit or the entire process in a plant. These control systems are
mostly attractive for cement, chemical and metal factories. The savings of energy use is 515 per cent. This is in addition to overall productivity improvements. Payback is usually
accomplished in less than two years.
II. Waste heat recovery (WHR)
Wasted heat in exhaust gases, hot effluents, hot products and/or by-products, can be
recuperated through heat fuel, air, boiler feed water, process streams or condition space.
Heat exchange, such as air-to-air and air-to-liquid are frequently the primary components
of these systems. Other equipment used in such an approach are economizers, metallic
recuperators, regenerators, air heaters and waste heat boilers. Typical applications of these
systems are in cement, textiles, metals, chemical/fertilizer, glass and food plants. Design
Page
8
and installation takes from six months to one year. The amount of savings is in the range of
5-45 per cent.
Frequently the payback period is achieved in from six months to two and a half years.
III. Improvement of combustion efficiency
These controls improve boiler and furnace efficiency by allowing more precise regulation
of air combustion. These low cost systems sometimes have payback periods of few
months. Generally, these controls regulate temperature, pressure, airflow and air-to-fuel
ratio, in order to achieve consistent and replicable derating conditions. Currently, the most
common types used are microprocessor-based controls which have proven very effective
in the cement, chemical, metal and textile industries. The use of a combustion analyzer is
one of the most attractive and cost-effective methods of control. The analyzer measures
different gas parameters, including composition and temperature, and calculates
combustion efficiency. Possible savings is in the range of 5-25 per cent. For automatic
combustion controls, the payback period ranges from one to three years, while by using
portable gas analyzers, it is less than six months.
IV. Energy Management Systems (EMS)
These are central control systems, in which microprocessor-based devices are used to
control and optimize energy use in combination with good operating and maintenance
practices. They are capable of on- site programming and adjustment by operating
personnel. EMS can be programmed to achieve specific energy efficiency goals such as:
scheduling on/off control of equipment, peak and time-of-day electric demand control. By
load shedding or cycling, industries can take advantage of special pricing offered by
utilities and/or avoid penalties for use at other times. This system can also be used for
control of lighting in buildings, optimum operation of building heating, and ventilation
and air conditioning (HVAC) equipment, etc. Savings in the range of 7-20 per cent are
possible in the cement, textiles, chemicals and building sectors. Most systems pay for
themselves in less than two years.
V. Combined Heat and Power (CHP) or Cogeneration
Combined heat and power is the simultaneous production of electric power and use of
thermal energy from a common fuel source. Interest in CHP stems from its inherent
thermodynamic efficiency. Fossil-fired central stations convert only about one-third of
their energy input to electricity and reject two-thirds in the form of thermal discharges
into the atmosphere. Industrial plants with CHP facilities can use the rejected heat in their
plant process and thereby achieve a thermal efficiency as high as 80 per cent. Many
industrial plants with continuous demand for low-grade steam are ideal candidates for
CHP systems. Besides energy savings, there are several reasons for considering CHP in
Page
9
industry: energy independence, replacement of aging equipment, expansion of facilities,
environmental considerations and power factor improvement.
With the application of CHP, savings of 5-40 per cent are possible in the food, textile,
chemical and paper industries. Payback of CHP systems is usually accomplished in 1-5
years.
VI. Power factor improvement
Low power factor means more reactive power in the electric system. Almost all electric
utilities impose power factor penalties for low power factors (usually less than 0.9). The
reason for low power factors is the existence of inductive loads such as motors, and
fluorescent and gas discharge from lighting equipment. All industries with high
contracted power (usually more than 500 kW) are good candidates for power factor
improvement. Installing capacitor banks is one of the most common methods used for
power factor improvement. Design and installation of the equipment takes about three to
six months. Savings from power factor improvement come mainly from reductions in
electric bills, which could amount to 5-15 per cent, through the release in the electrical
network and the reduction of internal losses. Payback period is usually in the range of 1-2
years.
VII. High-efficiency lighting
Lighting frequently constitutes 10-15 per cent of the electrical load in industry. There are
several approaches to gaining greater efficiencies by improving lighting systems. In
addition to eliminating unneeded fixtures and lamps, more efficient lamps can be used in
current fixtures. More efficient ballasts can be used, fixtures and bulbs can be replaced and
reflectors and diffusers can be upgraded or added to improve the lighting system.
Industries that are most likely to benefit from investments in high efficiency lighting
systems are the textile, chemical, pharmaceutical, and food industries. Electricity savings of
15-50 per cent are common. It is not unusual for such improvements to pay for themselves
in less than six months.
VIII. High-efficiency motors
The efficiency of converting electrical energy into mechanical motor energy is improved by
reducing losses through friction, windage, core, static rotor and stray load. New motor
manufacturing technology reduces all of these. Sizing of motors is an important factor
towards improving efficiency. This means operating motors closer to their rated output.
Candidate industries are textiles and chemicals. The timeframe for design and installation
of high efficiency motors range from three to ten months. This option is most applicable
for small motors where the improvement in efficiency may reach 5-10 per cent. Payback
period is usually from 3 to 5 years.
Page
10
IX. Insulation and refractories
Advanced insulation systems consist of materials with very low thermal – conducting
characteristics. These are used to cover the outside of hot/chilled water pipes, ducts,
vessels, water heater, furnace and boiler walls in order to minimize heat conduction losses.
Refractory materials are available in roll, sheet or brick form and include fiberglass, mineral
wood, ceramic fibers, magnesite, zirconia and other refractory brick.
A typical use would be the complete insulation of large metallurgical furnaces and kilns in
construction material manufacturing plants. In addition to saving energy, additional
insulation reduces condensation and thermal expansion, and improves safety and comfort
for operating personnel. Applications can be found in the metal production, cement,
textile and glass industries. Savings are possible in the range 5-20 per cent; costs can be
recovered in 2-3 years.
X. Steam Condensate Recovery (SCR)
Condensate from a steam boiler system is hot, mineral-free water. Strong condensation
should be given to returning all usable condensate in order to minimize the use of cold
makeup water, which must be heated prior to entering the boiler. An added benefit will be
the decreased use of chemicals and improved boiler surfaces due to the fact that makeup
water contains oxygen and minerals while condensate is oxygen free and minerals free.
Cost savings can result from energy savings and reduction in water treatment cost. Key
components include condensate return piping, flash tanks, and condensate pumps.
The condensate recovery system has to be designed to ensure that condensate return
piping; flanges and valves are properly insulated.
Under this technology three options are usually considered in energy audits, namely low,
medium and high steam condensate recovery. The main criteria which characterizes each
steam condensate recovery option, is the quantity and quality of steam condensate
recovered, the type of equipment and the instrumentation associated to each specified
steam recovery option.
Savings could range from 5 to 50 per cent of the steam generated. The potential
application of this technology is in the food, textile chemical and petroleum industries. The
payback period ranges from 1 to 3 years.
11. Solid fuel-fired boilers
In addition to the high efficiency coal fire boilers, special boilers have been designed to use
waste fuels such as bagasses, chemical sludge and paper waste. Some have burners,
which allow the use of more than one type of fuel.
Old oil-fired boilers (25-30 years) with efficiencies under 70 per cent can be replaced with
new package boilers, which can fire on multiple fuels with fuel-to-steam efficiencies of 8385 per cent. These boilers also have much better environmental controls. Applications of
Page
11
such boilers may be found in the food, textile and pulp and paper industries. Savings on
the due order 2 15 per cent are possible. These boilers will usually recoup their initial cost in
less than five years.
Most of the above-described energy conservation and efficiency options have reasonable
potential for application in the Egyptian industrial sector. The following identifies and
ranks priority options that can deeply and more rapidly move energy consumption
patterns in the region to more rational ones.
Table 1: Technological Methods of Energy Conservation in Non-petroleum Industries in Egypt.
Source: Egyptian National Committee World Energy Council 2017. Technological Methods of Energy Conservation
in Non-petroleum Industries in Egypt.
5. Procedure for identifying appropriate
option
a) Identify major potential industries that have large capacities and potential
opportunities for upgrading energy use efficiency.
b) Qualify technological options for upgrading energy efficiency, based on intensive
experience gained worldwide in the evaluation of energy conservation potentials
and the performance of implemented projects using different technological
options in industry. The previous table shows summary information on the
evaluation of the above-described technologies, including the range of
applications, the level of expected energy savings, chances of success and simple
payback period;
c) Other attractive energy conservation measures are usually added to the abovegiven technologies. These include the use of renewable energy in the industrial
process, and switching from liquid oil to natural gas. However, these do have
specific application conditions, which are not discussed in this study.
Page
12
d) Screen and select options, where the status and opportunities of each is reviewed,
and a set of final options are screened for evaluation for the following reasons:
i.
The “high-efficiency lighting” technology is now detailed in a study
conducted by EIS-ENRE Division for its application in the residential and
commercial sector. Lighting energy in the industry represent no more than
10-15 per cent of the total end-use consumption, thus the impact of this
option on industrial savings is relatively small, especially for energy-intensive
industries (Kaygusuz, 2021);
ii.
The “insulation and refractories” option, it is not widely used in industry and
usually applied in cases of rehabilitation and maintenance conditions;
iii. The “power factor improvement”, option has a positive impact on the
electric network and some reduction in internal losses. But the initiative of
its implementation in industry is usually correlated with the penalty
imposed by the utility and the amount of energy saved is only around 5
percent;
iv. The “solid fuel-fired boilers” option has specific applications and its
implementation in industry, especially in the ESCWA region, is very limited.
e) Ranking priority of the technological options based on a well-defined criterion to
be applied within the context of the specific concerns and conditions on a regional,
as well as on country level.
6. Elements of impact and uncertainties
The Egypt National Committee for sustainable energy development has made a strategic
assessment of the energy ecosystem and energy efficiency systems in 2021 including
elements of uncertainty and impact (ENC, 2021). The Figure 1 below summarizes all these
assessed elements. Carbon reduction represent a significant uncertainty, with natural gas
accounting for 94 percent of all fuel used in the electricity generation sector. This is
resulting in lower carbon emissions than those from coal or oil and it should prompt the
country to pursue a straightforward effort towards the adoption of renewable energy.
In the transportation industry, the Egyptian government implemented a number of
policies to encourage the use of electric vehicles and low-carbon fuels as an alternative
(NREA, 2020). Smart grids and blockchains are all considered critical uncertainties. The
Egyptian government enacted measures to implement smart grids on both the
transmission and distribution levels in keeping with the development plans of the
transmission and distribution networks. Cybersecurity risks are also seen as a significant
uncertainty. Cyber-attacks are a global concern, not just in Egypt, and Egypt's energy
leaders recognize that cyber security must be improved in the digital age. The
government's support systems are considered an issue that is actionable. Egypt has
established a series of policies and flexible mechanisms to encourage private investments
Page
13
in its projects, including EPC schemes, BOO, independent power producers, auctions, net
metering, and feed-in-tariffs.
Figure 1: Technological Methods of Energy Conservation in Non-petroleum Industries in Egypt.
Source: World Energy Issues Monitor, World Energy Council, 2021. Technological Methods of Energy Conservation
in Non-petroleum Industries in Egypt.
7. Energy efficiency in MC2 selected
sectors
7.1. Textile industry
The textile industry is one of the oldest industries worldwide as it has deep roots in history.
Egypt is considered a pioneer in the textile industry as its history dates back thousands of
years.
Page
14
Through the different decades and with the support of different successive governments,
the textile industry has developed to become a major pillar for Egyptian development
initiatives. Based on the fifth economic census 2018, Egypt has 19.252 companies in textile
and 65.770 companies in the manufacture of wearing appeals. The majority of companies
supply the domestic market, with many in the informal sector and 90% of all clothing
factories are privateowned (CAPMAS, 2018)1
Total Number of
Companies
Total Employees
Manufacture of textile
19.252
225.543
Manufacture of
wearing appeals
65.770
376.510
Table 2: Size of textile companies in Egypt.
Source: CAPMAS, 2020.
Textile industry has clustered in the main areas of Egypt, The Canal region is dedicated to
denim production and imports of thick cotton yarns. The Suez Canal facilitates exports to
Europe and Asia and the Alexandria region facilitates exports through its ports while
Middle Delta region is where new players are usually establishing their business 2. Egypt is
also Africa's leading producer of extra-long-staple cotton.
Textile industry in Egypt has three subsectors: spinning, weaving, and dyeing/finishing. The
factories are scattered all around the country with about 70% of the total production at the
governorates of Qalyubia , Dakahlia, Alexandria, Cairo, Al Gharbia, Suez Canal and Beheira.
The industry is a heavy user of energy, with an estimated consumption of about 1.5 million
tons of oil equivalent (TOE) in 2009/2010, representing about 6% of the country's total
energy consumption. Electricity accounts for the majority of the textile factories' energy
use (about 90%), followed by oil products (natural gas and petroleum products) and steam.
Textile and apparel industry is the second-largest sector, next to Agro-food, and plays a
major role in shaping the Egyptian economy. Egypt’s textile industries manufacture 315
million garments each ear and export 305.000 tons of cloth and apparel.
1
https://www.capmas.gov.eg/Pages/Economicnew.aspx?page_id=2029
Fiber2fashion, 2022, https://www.fibre2fashion.com/industry-article/5465/egyptian-textileindustry-comesunder-the-global.
2
Page
15
Figure 2: Egypt imports of textiles materials from 2003 to 2017.
The United States accounts for 80% of the country's export market, With the EU and
Arabian countries accounting for the remaining 20%. Egypt has a sufficient workforce with
competitive and steady pay in garment companies in Egypt3. With the advantageous Free
Trade Agreements Egypt has signed, Egyptian products enjoy duty-free access to; EU
countries, USA, Turkey, Mena Region, 18 African countries of COMESA and 4 countries of
MERCOSUR4. The sector is driven by the cheap labor cost, which is positioned between
China and India (see Figure 3).
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Turkey
Morocco
Tunisia
China
China
Coastal
Inland
Egypt
India
Vietnam
Pakistan Bangledesh
Figure 3: Average Labor Cost in the Textiles Sector in Egypt and Comparitive Countries, (USD/hr).
Source: Werner International Textile Industry 2018
3
https://www.textileinfomedia.com/textile-industry-in-egypt
https://kohantextilejournal.com/apparel-and-textiles-sectors-inegypt/#:~:text=Textile%20industries%20of%20Egypt%20produce,countries%20comprising%20t
he%20remaining%2 020%25.
4
Page
16
The textile industry is generally not highly energy-intensive, however given the size of the
industry In Egypt it is relatively considered energy-intensive with average specific energy
consumption (SEC) of about 1,000 kWh/kg of product. The main reason for the high SEC is
the use of outdated technology and equipment, which are in need of refurbishment or
replacement. In addition, most of the factories are poorly insulated, have poor lighting, and
use outdated air-conditioning systems. The industry could save up to 30% of its energy
consumption through the implementation of energy-efficiency measures. Energy used in
Textile industry in Egypt represents 7.03 % of the total electrical energy used in
manufacturing industries, and 1.77 % of the total electrical energy consumed in all
purposes in Egypt (UNDP, Integration of Energy Efficiency into Textile Sector Strategy ,
2018).
A case study focusing on the textile industry in Egypt found that by applying only efficient
lighting systems, the monitory saving could reach 140,000 EGP per year for an average size
textile company. It is worth mentioning here that lighting energy use represents only 525% of the total energy in industrial facilities. The study elaborated on existing practices
and highlighted specific measures that could be used in Egypt (Dalia M.M. Yacout, 2014):
•
Identifying and arresting compressed air leaks not only improved the
energy efficiency of compressed air but also saved approximately
97,500 EGP/year of lost energy.
•
Replacement of two inefficient intake well with a more efficient one
improves the efficiency and saves 79,400 EGP/year.
•
The recovery of steam condensate by collecting the condensate from
the steam system and feeding it back into the boiler feed tank achieved
an estimated saving of 42,624 EGP/year.
Another case is that of El Shehab Company for dyeing and finishing located in 10th of
Ramadan industrial zone which replaced the old and traditional mercerization with the
new closed cycled one. This replacement not only achieved compliance with the
environmental law but also benefited in reducing electricity consumption by 40%. The
payback period for this replacement was 35 months (UNDP, Integration of Energy
Efficiency into Textile Sector Strategy , 2018).
7.2. Food industry
The country’s large agro-food sector, which accounts for 24% of the labour force and 15% of
GDP, also faces sustainability problems, particularly related to water scarcity that could be
exacerbated by climate change. It is worth mentioning that over 55 percent of
employment in Upper Egypt is agriculture-related. Egypt’s agriculture sector is dominated
by small farms using traditional practices that do not meet international standards5.
5
USAID, 2022, https://www.usaid.gov/egypt/agriculture-and-food-security
Page
17
Based on the fifth economic census of 2018, Egypt has 90.394 companies in Food Products
and 148 companies in the Manufacture of beverages, the percentage of registered
companies is 76.2% of all Establishments (CAPMAS, 2018)6
Total Number of
Companies
Total Employees
Manufacture of
food product
90.394
727.511
Manufacture of
beverages
148
18.587
Table 3: Size of Food companies in Egypt. Source, CAPMAS, 2020
The cultivated area in Egypt in 2019 was about 9.1 million feddans (1 Feddan = 4200 m2)
Including total palm tree, sugarcane, cotton, trefoil and wooden trees
Figure 4: The Total Cultivated Area in million feddan (1 Feddan = 4200m2)
Source: CAPMAS, 2021
The total value of agricultural production in 2019 is 346.8 billion EGP which includes (the
values of plant, animal, insect and fish production) excluding the total requirements of
6
https://www.capmas.gov.eg/Pages/Economicnew.aspx?page_id=2029
Page
18
agricultural production, which include (seeds, fertilizers, pesticides, fodder, fuel, oils,
greases, depreciation and maintenance)7.
Figure 5: The total value of agricultural production.
Source: CAPMAS, 2020
Egypt’s food sector comprises of five subsectors: grain milling, sugar refining, vegetable oil
processing, beverage production, and processed food.
Figure 6: Number of food companies per sector according to CAPMAS 2018
It It accounts for about 7% of the country's industrial production and provides 24.5% to
GDP, serving the needs of the local market as well as ensuring exports to regional and
global markets. The sector’s investments amount to about EGP 500bn, and, in addition to
7
CAPMUS, 2020, https://www.capmas.gov.eg/Pages/SemanticIssuesPage.aspx?page_id=6116
Page
19
its GDP contributions, employs about 1 million people, proving 23.2% of employment in
Egypt (DNE, 2021). Where the food industry is the second largest in Egypt in terms of value
added, it represents the largest in terms of industrial employment. It achieved an average
growth rate of 20% during the five-year period from 2015 to 2020. Also, the value of food
industries and agricultural crops exports in 2020 amounted to about $5.720bn, which
accounts for 22% of Egypt’s total exports8. The value of the Egyptian food industry
investment was about EGP 500 billion in 2020 which represents a 20% increase compared
to 2015 (DNE, 2021). Driving the Egyptian growing food and beverage sector is its
burgeoning population, currently over 105 million and growing at around 2.3 – 2.5 % per
year, who spend over 30% of their income on food9.
The sector is a heavy user of energy. Electricity accounts for the majority of the food
industry's energy use (about 60%), followed by oil products (natural gas and petroleum
products) and steam. The highest percentage of electricity consumption used in the food
companies is allocated across Alexandria, Giza, Al-Sharqiya and Al-Beheira. The highest
percentage of electricity consumption used in beverage companies is found in Cairo,
Alexandria, Al-Qalyobia and Giza (Table 4).
Governorate
Food
Beverage
Tobacco
Cairo
Alexandria
Port Said
Suez
Damietta
Al-Daqahleya
Al-Sharqiya
AlQalobia
Kafr El-Sheikh
Al-Gharbiya
Al Menoufeya
Al Beheira
Ismailia
Giza
Bani-Suef
Fayoum
Al-Minya
Assyout
Sohag
Qena
Aswan
Luxor
Red Sea
New Valley
3.37
16.2
0.47
2.86
0.82
3.79
14.76
7.67
2.07
3.53
8.75
10.35
0.97
13.06
2.02
0.56
1.21
1.28
2.6
1.66
1.46
0.24
0.09
0.05
10.1
20.68
1.58
0.1
0
8.81
4.14
19.12
0.26
10.21
2.83
3.83
0
13.87
0.33
0
0
0.13
0.41
0.04
0.3
0.01
0
0
0.43
8.04
0
0
0.01
0.22
0.17
0.08
0
0
3.47
0
0
86.93
0
0
0
0.65
0
0
0
0
0
0
8 Daily news Egypt, 2021, https://dailynewsegypt.com/2021/04/04/egypts-food-industries-sector-contributes-245-togdp/
9
Food Africa, 2022,https://www.foodafrica-expo.com/market-insights
Page
20
Matrouh
North Sinai
South Sinai
Total
0.1
0.08
0
100
3.24
0
0
100
0
0
0
100
Table 4: Percentages of electricity consumption in food, beverage and tobacco sectors across governorates 2015.
Source CAPMAS 2015
The food industry is also highly energy-intensive, with an average SEC of about 1,000
kWh/kg of product. The main reasons for the high SEC are the use of outdated technology
and equipment, which are in need of refurbishment or replacement. In addition, most of
the factories are poorly insulated, have poor lighting, and use outdated air-conditioning
systems. The industry could save up to 30% of its energy consumption through the
implementation of energy-efficiency measures (UNDP, Integration of Energy Efficiency
into the Food Manufacturing Industry Sector Strategy, 2018).
7.3 Cement industry
The cement industry is one of the oldest industries in Egypt. The first cement factory dates
to 1911 and was built in Masaara, near Helwan and the first cement company, to be followed
in 1927 by Egypt launching joint-stock cement companies. Later, many cement companies
were launched and owned by the state, until the beginning of 1998, which was the start of
the Private Sector Investments in the Cement Industry10.
The cement industry is the main pillar of the highly labour-intensive construction materials
industry, which accounts for a large share of the Egyptian economy estimated between 68.8% annually (IMF, Mordor Research, 2018). Alone, the cement industry contributes nearly
1% of GDP and 10% of the gross national product of the Egyptian industry.
1,600,000
1,400,000
1,200,000
Quantities, Tons
1,000,000
800,000
600,000
400,000
200,000
0
2016
10
2017
2018
2019
2020
Egypt today, 2022, https://www.egypttoday.com/Article/3/66425/Opinion-The-Cement-Industry-in-Egypt
Page
21
Figure 7: Amount of cement export in Egypt.
In 2020, Egypt exported $182M in Cement, making it the 19th largest exporter of Cement in
the world. The main destination of Cement exports from Egypt are Kenya ($45.8M), Libya
($32.7M), the United States ($25.3M), Sudan ($15.3M), and Uganda ($8.82M) (OEC, 2022).
According to OEC figures in 2021, the Cement industry in Egypt involves 50.000 direct
employees and 200.000 indirect employees. The Cement consumption in the Egyptian
market in 2019 was 48.7 million tons, and in 2020 was 44.9 million tons. 18 companies are
involved in these exports. In 2020 the amount of export of cement reached 1.4 million tons
(Figure 1) and the production capacity 82.5 million tons with a demand 44.9 million tons
(figure 2), where the demand between 2017 and 2020 has declined by 17% whereas
production capacity has increased by 11%.
In addition, the growth in production capacity created a supply-demand mismatch.
Despite slow demand growth, the industry's production capacity expanded progressively
from around 53 million tons per year in 2010 to around 82.5 million tons per year in 2020.
This produced a supply-demand mismatch since the increase in production capacity was
not matched by an increase in cement consumption11.
100
86.3
90
80
82.5
82.5
74.3
70
60
53.9
52
48.7
44.9
50
40
30
20
10
0
2017
2018
Production capacity (million tons)
2019
2020
Demand (million tons)
Figure 8: Production capacity vs demand of cement
The main drivers of cement demand in Egypt are small and medium-sized housing
developments. These projects account for 70 to 90 percent of Egypt's overall cement
consumption, as opposed to 10 to 25 percent for national projects and first-class housing
developments.
11
The cement producer division, 2022, https://cementdivision.com/
Page
22
The main cost of production of cement in Egypt is energy, representing 63% of the total,
this is followed by raw materials representing 12% of the total2.
Figure 9: Cost of production of cement in Egypt.
Cement production is based upon limestone, clay, and sand, which are processed a
number of different steps, such as raw material preparation, clinker production, and
cement preparation. The most common form of cement is Portland cement, which
consists of 93–97% clinker formed by burning the raw limestone at a high temperature in a
cement kiln. On average, for one tonne of cement produced, 3.4 GJ of thermal energy (in
the dry process) and 110 kWh of electrical energy are required. Several solutions are
available to reduce such impact (Branca et al, 2021). By manufacturing low alkali and
limestone cements, it is possible to refuce the consumption of thermal energy. Alternative
fuels, such as waste-derived fuels and tyres, and even solar energy might be adopted, with
the support of decision-making models (Mokhtar and Nasooti, 2020). Also, byproducts of
other industrial sectors (such as slag from the steel industry) can be used as fuels and raw
materials resulting in relevant reduction of CO2. And interesting example is represented by
the project Kawasaki Eco-town, where a cement producer reduced CO2 emissions by
43,000 t per year by using recycled materials instead of virgin materials (Hashimoto, 2010)
7.4 Automotive industry
The automotive industry in Egypt has been developing for 50 years. It can sell more than
200.000 vehicles annually and is now the second-largest market in Africa and the 42nd
largest in the world, with an annual production output of over 70.000 vehicles. After
experiencing many failures and successes, the Egyptian automotive industry is more
focusing on assembly operations, rather than manufacturing12.
Egypt is home to notable local vehicle assemblers like GB Auto, General Motors Egypt /
Mansour Automotive, and Nissan. While most passenger vehicles are produced for the
domestic market, many buses are exported to regional markets.
The Egyptian car market this year recovered effectively from the pandemic crash of 2020.
Following two years (2014 and 2015) of high sales volume, in 2016 and 2017, the Egyptian
vehicles industry has been buffeted by a devalued currency, spiralling new-vehicle price
12
Zaher, Shadwa. "Automotive industry in Egypt", https://www.academia.edu/32489885
Page
23
increases, and higher interest rates. Despite the COVID-19 pandemic sales increased in
2020. In fact, sales have been 227.117, reporting an increase of 32.6% compared to 201913.
The impact of the Egypt-EU Association Agreement on zero customs was notable by the
end of H1 2019. Imports of passenger cars of European origin increased by 37% during the
first 6 months of 2019, while American car imports decreased by 56.2%. During the same
period, Korean cars imports also decreased by 19.3% while imports of Japanese cars only
increased by 15.3%. (Source: Al Mal News 20/8/2019).)
Figure 10: Main market enablers and industry challenges of automotive industry in Egypt, Frost & Sullivan 2018.
Between January and May 2019, passenger cars constituted 68 percent of the automotive
sales in Egypt. Trucks followed, standing at a share of 22 percent, while buses came last
with one-tenth of the vehicle market. Moreover, during the first half of 2019, imported
European passenger cars dominated the market14.
13
14
https://www.focus2move.com/egyptian-vehicle-market/
https://www.statista.com/statistics/1244641/share-of-automotive-sales-in-egypt-by-type-of-vehicle/
Page
24
Figure 11: Share of automotive sales in Egypt from January to May 2019, by type of vehicle. Source: STATISTA 2022.
It was calculated that energy required for vehicle production is 41.8 MJ/kg per vehicle,
where mining and material production processes represent 68% of the total consumption,
followed by the part production processes, at 19%, and vehicle assembly, at 13%. Natural gas
is the largest consumed energy resource in vehicle production. On the other front,
combustible energy commodities consumed by the transport sector in Egypt comprise
gasoline, diesel and natural gas. In addition, lube oils are used as lubricant for vehicle
engines while fuel oil is used for road paving activities.
Figure 12: Material composition of a vehicle and its principal part production process.
Source: (Fernando Enzo Kenta Sato, 2020)
The automotive industry in Egypt comprises vehicle assembly joint ventures, components
manufacturers and importers. Despite the energy consumption by this sector might look
at the time being not significant in Egypt compared to other sectors, however the
potential for growth of the automotive industry in Egypt is huge. The car ownership
number stands at 25 for every 1,000 people whereas the same number stands at 35 for Iran
and over 100 for Saudi Arabia. Economies of scale cannot be achieved in Egypt, yet, due to
the lower demand. Approximately 75 percent of Egypt's automotive repair and
maintenance requirements are imported.
Page
25
Figure 13: Typical energy consumption in vehicle production per material and energy resource.
Source: (Fernando Enzo Kenta Sato, 2020)
Egypt lacks the presence of manufacturers of quality automobiles and auto components.
At the same time, due to the high import tariffs and mandatory cut-off of the local content
in a vehicle, the vehicle manufacturers and assembling units have not been able to
achieve economies of scale.
The assembly industry has two main sub-industries:
•
Passenger cars assembling industry.
•
Commercial vehicle assembly
o
Light, medium, and heavy commercial vehicles assembly
o
Buses
The passenger car segment in Egypt primarily consists of vehicle assembly; a significant
portion of the demand in Egypt is catered through imports. This is primarily due to the
comparatively less demand for vehicles in Egypt. Manufacturers of automobiles cannot
achieve economies of scale due to lower demand. Approximately 45 percent of the
demand for passenger cars is catered through the Completely Built Units (CBU) of
passenger cars. To protect the local industry, the Egyptian Government has enforced a law
making it mandatory that the vehicles that are assembled in Egypt have 40 percent local
content. Through this, the Government monitors corporate purchases made by the major
international OEMs. This, along with the higher import tariffs, has held back the overall
demand due to the absence of quality products, which can neither be manufactured nor
imported. However, Global car manufacturers are present and active in Egypt and operate
mostly through joint ventures.
Page
26
Inflation is one of the key challenges hindering the growth of this sector. The central bank
of Egypt is currently activating a set of measures to control a significant wave of inflation
exacerbated by the Ukrainian war. This was fed by higher food prices and a reduction in
energy subsidies, which increased the burden on the fuel-sensitive passenger vehicle
sector.
The Egyptian government has launched an ambitious strategy to speed up the
development of this sector in 2022. The strategy includes a program providing incentives
for the localisation of electric vehicle manufacturing, including incentives for
manufacturers and consumers of electric vehicles manufactured locally. Benefits provided
to locally-produced electric car owners mainly include a cash incentive worth a maximum
of EGP 50,000 and an already-applied exemption from the vehicle license tax and the state
resource development fee. In the same context, Egypt will manufacture its first electric
vehicle in 2023 as part of the state’s efforts to transition toward a green economy, in
addition to starting planning for mass production of Egyptian-Emirati bi-fuel pickup
vehicles, running on gasoline and natural gas, by the end of the first half of 2022 and setup
of a network of 3,000 electrical-charging stations in the near future (AHRAM, 2022). This
new industry might represent an opportunity for the implementation of R2E approaches
and solutions.
7.5 Healthcare and pharma industry in Egypt and energy utilization.
The Egyptian Pharmaceutical market is the second-largest in Africa and the Arab world,
after South Africa. In 2017, the market was valued at $4.3 billion and is expected to reach
$6.8 billion by end of 2022, growing at a CAGR of 9.9%. Local companies account for the
majority of the market share, followed by multinational companies. The pharmaceutical
investment has reached LE300 billion in Egypt, with 90 percent of it coming from the
private sector and the rest from state-owned facilities. Foreign investment makes up 20%
of the total, with the remaining 80% being Egyptian. There are 152 pharmaceutical
factories operating in Egypt, of which eight are state-owned and five are owned by foreign
companies. It is expected in the next three years, 40 new factories will access the Egyptian
market (Abdelfattah, 2021).
On the other front, Egypt's healthcare expenditure as a proportion of GDP is one of the
lowest in the world, achieving the 4 percent, providing opportunity for more investment
into pharmaceuticals. In terms of sales, multinational producers account for 69% of total
pharmaceutical sales, while local firms account for the remaining 31% (A.Moneim, 2020).
The sector employs about 260.000 people and accounts for about 2% of the country's
industrial production. The sector is a heavy user of energy, with an estimated average
consumption of about 19,000 TOE in the past decade. Electricity accounts for the majority
of the healthcare and pharma industry's energy use (about 60%), followed by oil products
(natural gas and petroleum products) and steam (ENER, 2022). Energy Use in
Pharmaceutical Industry includes the heating, ventilation, and air conditioning (HVAC)
represents around 65% of the total energy used. The industry uses a lot of water in various
processes like cooling, cleaning, and manufacturing. The wastewater from the
Page
27
pharmaceutical factories also contains hazardous chemicals that need to be treated
before being discharged into the environment.
The sector is also energy-intensive, with an average SEC of about 1.600 kWh/kg of product.
The main reasons for the high SEC are the use of outdated technology and equipment,
which are in need of refurbishment or replacement. In addition, most of the factories are
poorly insulated , have poor lighting, and use outdated air-conditioning systems. The
sector lacks efficient energy saving measures and could save a significant percentage of its
energy consumption through the implementation of energy-efficiency measures
including process monitoring and analytical tools (Koç, 2021).
Despite government support and incentive might not be significant or impactful in
promoting energy efficiency measures in the pharmaceutical industry in Egypt, yet some
externally sponsored support programs are increasingly available now such as the GreenEconomy-Finance Facility program which is a new credit line developed by the European
Bank for Reconstruction and Development. Through this program, EBRD would finance
projects and initiatives that help reduce energy consumption, identify alternative energy
sources and increase the business profitability of the pharmaceutical sector in Egypt. The
program provides a mix of tools including loans up to USD 5 million EGP, investment
grants worth 10% or 15% of the loan amount and free technical assistance including
identification of energy efficiency opportunities (walk-through audits) and support in the
loan application and equipment procurement or selection (GEFF, 2021).
8. Transversal improvement options
8.1 Industrial systems
Screening a number of presented cases and reports on efficiency improvement options in
Egypt it is possible to identify three main elements to be taken into account in any
industrial sector: (i) the implementation of Energy Management Systems (EMS), (ii) the
achievement of optimum efficiency of motors, (iii) the optimization of Compressed Air
Systems (UNDP, Integration of Energy Efficiency into Textile Sector Strategy , 2018).
With respect to EMS, the percentage of reported cases of using or attempting to use EMS
is relatively large compared to other approaches, and they concentrated mainly on
electrical and
thermal potential savings. Water savings opportunities with an impact on energy
minimization were considered in some circumstances, in addition to several cost savings
that resulted from shutting down equipment on downtime, reducing the number of
pumps, increasing chemical energy participation in the industry, using rice ash as
insulation (Mohab M. Salem, 2018; Kaygusuz, 2021).
With respect to the motor system optimisation, the selection of proper motor size, use of
efficient motors, and application of best maintenance practices were used to optimize the
Page
28
mechanical systems. Some methods didn't require any additional expenditures, such as
turning off the cooling tower fan when there is no requirement for cooling during the
winter or at night. Electric motors consume 70% of industrial sector energy consumption
including heavy use of fans, pumps, and electrical drives. Some companies were found to
focus only on motor system optimisation, others prefer to implement a more
comprehensive EMS including other electrical and thermal potential savings (Mohamed
Ramadan, 2019; Kaygusuz, 2021).
Few attempts were retrieved in Compressed Air System Optimization (CASO), but the total
number of reported instances was far lower. The majority of the problems with CASO
reports stemmed from improper machinery use, obsolete control systems, leakages, and
poor maintenance. In certain situations, waste heat recovery was also an option. CASO
modifications have an immediate payback period and are expected to be less than a year
(Salma I.Salah, 2022).
8.2 Awareness
Awareness of the significance of energy management possibilities and their adoption is a
significant problem. It's a low-cost method to reduce energy consumption by changing
employee behaviour in the workplace. Spreading awareness about Energy Management
Systems (EMS) through training sessions and proper consultation will help impact future
energy usage. Moreover, employee awareness lowers energy expenses. The majority of the
published material on EM in the Egyptian industrial sector reports a lack of staff training or
knowledge. Due to the recent energy subsidy cut, industrial facilities have become
compelled to manage their power. The board of directors in the industrial sector is
becoming more aware of the potential savings for their industry. Despite this, there is still a
lack of energy efficiency culture among both senior management and technical
employees in both top management and technical operations (Kaygusuz, 2021).
8.3 ISO500001:2011
Actions aiming or supporting the ISO certification are recommended and would support a
long term-impact. ISO 500001 is an international standard guideline for energy
management that helps organizations save money using energy efficiency as well as
helping to conserve resources and tackle climate change. The implementation of ISO
50001:2011 is done through the development of an energy management system (EMS)
(ISO500001:2011). By reviewing several reports and studies, it was found that a total number
of 35 case study companies had implemented the EMS according to ISO 500001:2011. Some
companies such as EZDK, Amreyah Cement, El Araby, Galaxy Chemicals and El-Dawleya
for Modern Food Industries were certified or labelled their new policies by the
ISO50001:2011. One case study in a local textile manufacturing facility reported the
development steps of their EMS according to the ISO 50001 standard and the achieved
cost saving which reached about 70.000 USD/year (UNDP, Integration of Energy Efficiency
into Textile Sector Strategy, 2018).
Page
29
8.4 Utilities
In some companies, the industrial energy efficiency (IEE) scope is targeted at improving
energy consumption by addressing water-saving opportunities. Some companies do have
utilities that use water excessively. They managed to take many procedures in action to
reduce water consumption which should be rationally used. Regarding the local energysaving approaches in the Egyptian industrial sector, it was found that the two sole
companies that took water saving into consideration were food and chemical industry
companies (Kaygusuz, 2021). By saving water the company directly reduced the direct
costs of both energy and water consumption. The addressed measures reported in this
case for water-saving in industries included:
•
Adjusting cooling water temperature at refrigeration plant to reduce
energy consumption.
•
Connecting air conditioning plant with cooling water to reduce
compressors consumption.
•
Using reject water after treatment.
•
Controlling domestic water use and water irrigation.
9. Resources efficiency highlights
9.1 Textile materials; recycling, repurposing and reuse
Textile recycling economics show a great potential in Egypt for either saving costs at
product or for exploiting new business opportunities. Recycling textile waste is a
significant way to reduce environmental impact and help save resources. The use of
recycled textiles also reduces the demand for virgin resources such as cotton, wool, nylon
and polyester. This in turn reduces the need for water, pesticides and other inputs required
for the production of these fibres (Candido, 2021).
There are many ways to recycle textile waste. One way is to use it as a resource for new
products. Each type of resource has its own unique set of properties and can be recycled in
different ways. For example, recycled yarns can be used to create new fabrics or insulation.
Recycled fabric can also be used as stuffing for other applications. Textile waste can be
repurposed for other industries, as cotton waste generated in spinning that is often reused
for different purposes. Waste from combed cotton spinning can be reused in carded
cotton, or mostly in wadding and padding.
Page
30
Textile waste from natural fibers can also be composted. This process returns nutrients to
the soil and reduces methane emissions from landfill sites. There are many different types
of textile resources and mapping textile resources can help identify where resources are
located and how they can be best used. The use of the right resources with the right
methods can also help to improve recycling rates and reduce environmental impacts
(Wojciechowska, 2021).
Figure 14: The textile waste estimation model.
Source Blumine and Reverse Resource (Blumine, 2022)
The ready-made garments waste represents the biggest volume of available textile waste in Egypt. In this
respect, it is important to highlight that the mill waste volume is more important than the spinning waste due to
Egypt’s high imports of already finished yarns. The recycling of textile fibres into new products conserves
resources, reduces energy consumption and reduces pollution.
The cotton value chain in Egypt forms an important pillar of the local economy. It is
characterized by the fact that the entire value chain, from cotton cultivation over ginning,
spinning, and weaving all the way to the manufacturing of final garments and home
textiles is present. Postindustrial cotton textile by-products from the manufacturing stages
represent a large growth potential for the industry in Egypt, with around 23 kilo tonnes of
scraps emerging from the that could be cycled back into the fibre. Egypt’s national
roadmap toward economic competitiveness and diversification (Egypt's Vision 2030
Strategy) further highlights the potential of the Egyptian cotton value chain, its fibre and
products, to significantly improve the environmental and social sustainability of textile
production to stay competitive within the global markets.
Page
31
Figure 15: Textile material flow in the Egyptian textile and clothing industry in 2019 (in tons).
Source Blumine and Reverse Resource (Blumine, 2022)
Textile waste recycling encouraged the rise of new entrepreneurship themes as example
the“Green Fashion” startup in Egypt15. Green Fashion startup is working on an equally
demanding challenge by developing biodegradable fibres and tints for clothes to be sold
to factories. It aims at developing techniques to upcycle and make use of second-hand
clothes to produce new pieces designed to hold a higher value than the original items. By
achieving this, they turn the waste of fabrics from textile factories into high-quality
products, integrating the production process with a strong commitment to social
inclusion and the involvement of disadvantaged women. Similar to “Green Fashion” a
series of startups are trying to grasp the market untapped opportunities.
Egypt's negative trade balance in the textile industry indicates that there are more imports
than exports, both in value and volume. In 2019, Egypt exported 2,8 billion € worth of fibres,
textiles and garments, amounting to 10% of the country’s exports. The exports of cotton
fibre alone reached almost 169 million US $ in 2019. Egyptian cotton is a distinctive fibre
that has long been recognized as one of the finest quality cotton in the world.
15
https://www.greenfashion-stores.com/
Page
32
Figure 16: Egypt Trade deficit in textile industry 2019
As shown in Figure 16, Egypt's import of yarns only accounts for almost 30% of total textile
materials imports. This, given the considerable amount of unused textile waste and less
efficient recyclable methods, it indicates a significant opportunity to suffice the local
market based on the proven demand.
9.2 Precision agriculture and Water for Agriculture
Egypt suffers from a water deficit of 30 billion cubic meters. It annually needs at least 110
billion cubic meters of water to cover its needs, having currently access only to 80 billion
cubic meters, of which about 50 billion cubic meters come from the Nile (Aziz, 2020).
Water accounts for the major resource in Agriculture in Egypt facing alarming pressure.
Generally, the agricultural sector is considered the largest consumer of water (80% of total
water budgets) (Negm, 2019), and agriculture productivity efforts should now pivot to
recognizing and utilizing the true value of water as a limited resource. Demand and supply
of water will also be affected by climate change and as the virtual water imports of Egypt's
agricultural sector increase, smart management of agricultural export and import
portfolios can leverage Egyptian high agricultural production and maximize their share of
natural water resources through the export of high-value, high water efficiency crops
(fruits and vegetables) and the import of low value, low water efficiency grains. Inter-basin
connectivity will be increasingly important in the future, and using these links to import
water-intensive products like meat may help distribute water elsewhere (Nikiel, 2021).
Page
33
Figure 17: Egyptian Nile water system, red values are sinks, blue are sources, and purple indicates reuse.
Source: (Nikiel, 2021)
Groundwater also contributes, but with very low amounts. The decrease of rainfall in
recent years contributed to a decrease in the water resources available for agriculture in
Egypt. This has resulted in farmers having to rely more on groundwater especially in areas
with less proximity to the Nile, which is often of poor quality and expensive to pump
As a result of the high dependence on irrigation, agriculture is one of the main sectors
contributing to water scarcity in Egypt. In order to address this issue, it is important to
implement efficient measures that will rationalize the amount of water used in agriculture.
One way to do this is by promoting the use of more efficient irrigation technologies and
practices. Efficient irrigation management practices can help reduce water use in
agriculture without compromising crop production (Aziz, 2020). Some of the practices that
can be implemented include:
•
Improving irrigation system design and operation
•
Improving on-farm water management
•
Adopting water-efficient crop varieties
•
Using mulching and other soil moisture conservation practices.
In addition to promoting efficient irrigation practices, it is also important to encourage
farmers to adopt water-saving measures in their everyday operations. Some of the
measures that can be taken include:
•
Using drip or micro-irrigation systems
•
Improving water application methods
•
Practising crop rotations
•
Applying organic matter to the soil.
Page
34
•
Integration of other technologies such as precision agriculture
technologies.
By implementing a set of measures customized to local needs, context and circumstances,
it is possible to reduce water usage in agriculture without compromising crop production.
In doing so, it will be possible to alleviate some of the pressure on Egypt’s water resources.
It is important to promote the use of efficient irrigation technologies and practices. In
addition, farmers should be encouraged to adopt water-saving measures in their everyday
operations. In this prospective, the key elements for immediate solutions are needed
including the following (Aziz, 2020):
•
Rainwater harvesting
•
Preparedness technologies and observatories
•
Efficient and cost-effective desalination solutions
•
Wastewater treatment and re-use
•
Efficient groundwater processes
•
Improving irrigation techniques.
The situation might get greatly exacerbated in the near future due to the consequences of
the Ethiopian Nile dam. Ethiopian Prime Minister said in a press conference earlier this
year that the dam is 80% complete and will be operational in a short period. The $4 billion
hydroelectric dam on the Blue Nile is designed to have a 74-billion-cubic-meter capacity.
The Ethiopian dam has been a source of concern for Egypt, which fears it will reduce the
vital water flow from the Nile River. On the other front, there is a lot of uncertainty about
the possible consequences of climate change on Nile River flows in Egypt, with certain
research predicting that increased evaporation rates owing to rising temperatures may
result even in a 70% decrease in water availability. (USAID, 2018).
Facing these challenges, the Egyptian government has been working on several initiatives
to save water in agriculture. One of these is the National Project for Integrated Water
Resources Management (NPWRM), which is being implemented by the Ministry of Water
Resources and Irrigation. The NPWRM aims to optimize water resources through better
irrigation practices, desalination, and reusing of treated wastewater in agriculture. The
government has also launched the National Project for the Development of Cairo's
Wastewater Treatment Plants. This project will expand the capacity of Cairo's wastewater
treatment plants and will enable the reuse of treated wastewater in agriculture. In
addition, the government is working on a number of initiatives to increase water storage,
including the construction of new reservoirs. These initiatives might help reduce the
impact of drought on agriculture and help ensure that Egypt has enough water to meet its
needs in the future.
Page
35
9.3 Materials for the automotive industry
There is potential for substantial improvements in materials efficiency in the automotive
sector. The automotive sector is heavily dependent on natural resources and future growth
will be associated with increased raw material extraction and processing. The use of
natural resources in the automotive sector can be improved in two ways: by reducing the
material intensity or by using resources more efficiently. The current focus is on the former,
through the development of new materials and alternative propulsion technologies.
However, there is potential for substantial improvements in resource efficiency through
operational improvements in manufacturing processes and design changes that make
use of resources more effectively. Operational improvements in manufacturing processes
can be achieved through a number of methods including process re-engineering, Six
Sigma and lean manufacturing techniques. These methods can lead to reductions in
material waste, energy use and water consumption. Design changes that make use of
resources more effectively can be achieved through a number of means including the use
of lighter materials, and the development of alternative propulsion technologies.
Figure 18: Mass of materials and resources consumed in automobile production.
Source: (Fernando Enzo Kenta Sato, 2020)
Page
36
In the assembly industry, process re-engineering has been used to achieve significant
reductions in material waste. For example, at a General Motors plant in the United States,
process reengineering was used to reduce material waste by 30% (GM, 2015). Many
materials are wasted in the automotive assembly industry because of the large tolerances
that are necessary to accommodate variations in component sizes. This waste can be
reduced through the use of statistical process control techniques, which allow for tighter
tolerances and hence less material waste. The use of lighter materials is one way of
reducing the weight of vehicles and hence the number of materials used. The use of
aluminium and composites can lead to weight reductions of up to 30% compared to
traditional materials such as steel (WBCSD, 2002). Downsizing engines is another way of
reducing materials use. Smaller engines require fewer materials and hence lead to lower
materials intensity. This reduction in materials intensity can be offset by the increased use
of materials in other parts of the vehicle, such as the transmission and drivetrain. However,
there is potential for materials intensity to be reduced through the use of alternative
propulsion technologies such as electric vehicles. The materials used in the construction of
electric vehicles are also typically lighter than those used in traditional vehicles. As a result,
electric vehicles have the potential to be up to 60% lighter than traditional vehicles.
As the world is continuously moving towards more sustainable practices, it is important to
consider the resources consumed in automobile production. Mining and material
production are accounting for 68% of the energy required for vehicle production. It has
been also estimated that 5.23 kg of raw materials and energy resources are required to
produce 1 kg of vehicle, with 7 materials representing almost 80 to 90% of vehicle: steel,
iron, plastic, glass, rubber, aluminum and copper (Fernando Enzo Kenta Sato, 2020). Steel
is the most predominant in terms of energy consumption for vehicle manufacturing, yet
copper requires to process a lot of raw material, due its low concentration in the ore, and
accordingly consume significant energy but not as compared to steel. In the assembly
industry the consumed energy would be almost equally distributed in the aluminum, steel
and plastic parts.
10. Promising & emerging practices and
exemplars of commercialized
opportunities for disruptive and/or fastgrowing investable companies
The featured companies below are only meant as exemplars of startups that showed a
positive potential for growth in the last decade within the resource’s efficiency domain and
in relevance to MC2 project. The featured companies are all examples of businesses that
have adopted resource-efficient practices and have seen positive results. It includes
Page
37
companies from different regions that were established between 2012 and 2022. Some of
these companies are developing innovative new technologies that can help limit the
wasting of resources and demonstrate energy efficiency practices, while others are
working on innovative business models that can help enhance the efficiency of available
resource-use like water and energy and hence help in enhancing their affordability and
accessibility. Regardless of their specific operational focus, most of these companies are
working to make a positive impact either from a circular economy or sustainable
development perspective.
10.1 Precision Agriculture and resources efficiency
ONDO Smart Farming Solutions
https://ondo.io/
Established in 2020
Sofia, Grad Sofiya, Bulgaria
ONDO is an all-in-one automated system for precise irrigation, fertigation and climate
control for various crops. ONDO is a modular system that can be easily installed and
connected to all the periphery that should be controlled such as valves, pumps, vents,
thermal screens and others.
It helps farmers to reduce the time and efforts needed to control the irrigation and
nutrition processes thus decreasing the usage of water, energy and other precious
resources. Thanks to the low initial cost combined with an annual subscription it is suitable
even for small and medium-size farms. ONDO cloud-based platform enables the
automation of routine processes thus minimizing human labour and errorS, and gives
farmers non-stop access to their farms via any smart device, anytime, anywhere. As a result
- the yield, profitability and farmers' satisfaction increase.
Boomitra
https://boomitra.com
Established in 2016
California, United States
Boomitra uses AI to help you grow more plants or crops with fewer resources in a scalable
and cost-effective manner. The ConserWater AI can save 30% or more on the irrigation
water use, and ensure plants are able to make the most of the fertilizer supplied. It is the
world's first AI that can predict how much water and nutrients to give the plants at any
location around the world at any time. It uses satellite data, weather, topography, and a
variety of other factors along with geospatial deep learning to determine exact irrigation
and fertigation needs. The predictions are to the accuracy of having physical soil sensors,
but without any of the hardware or its associated costs. ConserWater is currently
supported in several countries worldwide and has a customer base in Israel, India, and the
Page
38
US. There are three different ways to use ConserWater: through ConserWater Online, a
web interface to access all of the ConserWater AI, the free ConserWater Entry smartphone
app, and finally the ConserWater API, for irrigation and farming corporate partners to
integrate ConserWater into their products.
Hydrawise
https://www.hydrawise.com/
Established in 2012
Melbourne, Victoria, Australia
Hydrawise, cloud software for Wi-Fi-based irrigation controllers, is a product line of Hunter
Industries, a global leader in the irrigation industry that wants to bring the future of smart
connected controllers to both professionals and homeowners. The award-winning
Hydrawise system was founded in 2012 by Melbourne, Australia-based IT and computer
networking veteran and entrepreneur, Cameron Ryan, who combined weather
information, wireless communication and smartphone apps to create a simple-to-use
irrigation controller for homeowners. Hunter Industries and Ryan are focused on
expanding the Hydrawise platform and developing new and exciting products that will not
only meet the needs of homeowners but also those of professionals, providing the same
high quality and excellent services. Among some of the Hydrawise features are remote
access for quick and easy off-site irrigation management, Predictive Watering‚ advanced
reports, controller logs and job sheets that save users time and money while keeping them
informed of issues before they turn into problems. Hydrawise was first introduced in 2011 at
the Landscape Australia conference where it was recognized for Best New Product. Since
then, it has earned many more coveted awards including the 2015 Good Design Award
from the Chicago Athenaeum: Museum of Architecture; Winner of Best New Product from
the Landscape Australia Expo 2011; and Winner of The Australian Innovation Challenge.
AgriSource Data
http://agrisourcedata.com
Established in 2015
Georgia, United States
AgriSource Data focuses on end-to-end solutions for precision agriculture and smart
irrigation management. It leverages the latest advances in science and technology,
including Internet-of-Things (IoT), Artificial Intelligence (AI), Machine Learning, and cloudbased communication protocols that accelerate data collection and analysis across the
entire seed-to-shelf spectrum, to deliver complete solutions for meeting the challenge of
globally efficient food production.
Page
39
IDIS Company
http://www.idiscompany.com/en
Barcelona, Spain
IDIS Company is specialized in smart irrigation systems that save significant amounts of
water. It offers Intelliwater combined with MAPRSmart technology that enables the
control and management of irrigation systems. Intelliwater allows its users to know the
volumetric content of water in the soil with its sensors which simulate the root of the
plants. It is aimed at saving water and getting a better distribution of water along the
crops.
10.2 Textile recycling and resources efficiency
Resortecs
https://resortecs.com/
Established in 2017
Brussels, Belgium
A REcycling, SORting, TEChnologieS ‚ is an award-winning start-up that develops Design
for Disassembly solutions. The company drive full circularity in the fashion industry with
heat-dissolvable stitching threads and thermal disassembly systems that make industrialscale textile recycling easy. Through targeted innovations in the way clothes are
assembled and disassembled, the company solutions empower fashion and workwear
brands to rise to today's environmental challenges at the pace and scale Earth needs. All
without compromising the creativity, design, and quality of clothing. Resortecs' globally
patented thermal disassembly solution is 5X faster than traditional disassembly methods
and makes it possible to recycle up to 90% of the original fabric material: the company's
heat-dissolvable stitching thread with different melting points (150 °C, 170 °C and 190 °C),
enables brands to transform their products into recyclable, circular pieces from the
manufacturing stage. Smart Disassembly‚ the company's thermal disassembly system,
enables recyclers to unlock higher volumes of premium-quality material, processing up to
4M garments/year with low emissions and no material damage so that fabrics can be used
over and over again. The company plans to boost its circularity model through the
adopted sustainable processes.
Pure Waste Textiles
http://www.purewaste.com
Established in 2013
Helsinki, Finland
Pure Waste textiles, the company make ecologically sustainable and premium quality
100% recycled fabrics and yarns. To meet the growing demand for ecological fabric
solutions the company utilized their long expertise in sustainable design and developed a
global textile recycling and manufacturing supply chain. The company source textile waste
Page 40
on a global scale and recycle it into fabrics and yarns. Compared to an equivalent product
made from virgin materials, making a T-shirt as an example at PureWaste from recycled
materials uses 99% less water and generates 50% fewer CO2 emissions. The company
products are entirely made out of recycled textile waste and offer the consumer the same
quality and comfort as those made out of virgin materials. All Pure Waste fabrics are made
of 100% recycled materials: surplus cotton cutting waste from the textile industry and
recycled polyester. The company does not add colours or chemicals to our textiles; the
fabric gets its colour according to the recycled waste.
Voxel8
http://voxel8.com
Established in 2014,
Massachusetts, United States
3D Printing, 3D Technology, Manufacturing, Printing
Voxel8 has developed a unique digital 3D printing technology that can zonally tune the
mechanical properties of textiles, and add 3D embellishments and aesthetic features. The
technology is broadly applicable in textile applications from footwear uppers, apparel
(bras, gloves, leggings), medical (orthotic braces, wearables), wall coverings, seat covers,
branded goods and fashion articles. Key benefits of the technology are the ability to
customize each individual print, tailoring the performance and aesthetic of the textile to
the individual or application. Voxel8 uses an additive process (less waste) and has
developed a 65 % bio-based material set to further reduce the carbon footprint. They can
impact the functional performance of textiles making them more abrasion resistant,
adding support or impact resistance, cushioning elements or grip features. At the same
time, they can digitally add 3D embellishments and color. The technology was developed
in Professor Jennifer Lewis' Lab at the School of Engineering and Applied Sciences at
Harvard University.
AlgiKnit
http://algiknit.com
Established in 2017
Brooklyn, Uinted States
AlgiKnit is a biomaterials company integrating science and design into textile production.
The company envisions a future where the textile industry operates in a closed-loop
product lifecycle, utilizing materials with a significantly lower footprint than conventional
textiles. AlgiKnit is creating eco-conscious, renewable yarns for the circular economy. The
company is developing renewable yarns from kelp, one of the most regenerative
organisms on the planet. The company’s material is built for everyone: a functional and
accessible resource without environmental harm.
Page
41
re:newcell
https://renewcell.com/
Establised in 2012
Stockholm, Sweden
Renewcell is a fast-growing Swedish textile recycling company with unique technology
and an experienced team of people on a mission to change the global textile industry for
the better. re: newcell has developed a patented process for recycling cellulose-based
textiles, such as cotton and viscose. The company's flagship product is called Circulose®,
and it is made out of 100% textile waste. Brands use it to replace high-impact raw materials
like fossil oil and cotton in their textile products. With re: newcell's recycling process, the
environmental impact on the textile industry could be drastically reduced. The process
would also reduce transport, and waste and increase access to water and cultivable land
for food production. The company is planning to recycle the equivalent of more than 1,4
billion t-shirts every year by 2030.
Infinited Fiber Company
https://infinitedfiber.com/
Established in 2016
Espoo, Finland
Infinited Fiber Company is a Finnish biotech founded in 2016 to commercialize a
breakthrough recycling technology that can turn cellulose-rich raw materials ‚ like cottonrich textile waste, used cardboard, or wheat or rice straw ‚Äì into high-quality textile fibers
with the look and feel of cotton. The patented technology has been validated by leading
brands and is ready to be scaled. Infinited Fiber Company won the Europas 2020 Hottest
Sustainability Tech Award, and was listed on the Global 50 to Watch by Cleantech Group in
2019. In 2016 Infinited Fiber Company was selected into WWF‚ Climate Solver network.
10.3 Energy and resources efficiency
Arloid Automation
https://arloid.com
Established in 2019
London, UK
The company resolves energy inefficiency in real estate. Arloid Automation is a global
leader in AI-based solutions designed to simplify MEP (mechanical, electrical and
plumbing engineering) systems management for a broad portfolio of real estate. An
unique algorithm combines the power of Deep Reinforced Learning and Digital Twin
technologies enabling real estate management companies to meet their financial and
Page
42
sustainability objectives. Simple to deploy and intuitive to manage, arloid.ai solution,
adjusts in real time HVAC systems settings resulting in up to 40% reduction in utility
consumption bills and carbon footprint.
Budderfly
https://www.budderfly.com/
Established in 2007
Connecticut, United States
Budderfly introduces an Energy-as-a-Service model, which - with no cost to the clients implements proprietary energy intelligence software, energy efficient technology
upgrades that span more than 25 savings categories, and IoT devices that meter, control,
and optimize energy usage at the point of consumption within each facility across the
enterprise. Budderfly ongoing services and proactive maintenance ensure that a building
energy infrastructure never becomes outdated. The result is significant, immediate and
progressive energy expense savings, upgraded facilities, and a reduced carbon footprint
for client facilities.
Sealed
http://sealed.com
Established in 2012
New York, United States
In partnership with energy utilities and certified contractors, the company solve the
problems that make houses too hot, too cold, and too wasteful. Upgrades like HVAC,
insulation, air sealing, and smart home technology are introduced by Sealed that
coordinates projects from beginning to end, being paid if the expected results are
achieved. Through its innovative performance payment program, the company cover the
upfront costs of the installations, homeowners then pay Sealed using the energy they
save. Sealed proprietary data, analytics, and software enable investment-grade energy
savings predictions. Sealed IP has enabled the first debt facility backed by residential
energy savings cashflows (New York Green Bank) and the first residential energy savings
insurance policy (Munich Re). Sealed reaches customers via local dealers (contractors),
utilities, and digital marketing.
Redaptive
http://redaptiveinc.com
Established in 2013
California, United States
Redaptive makes buildings more efficient one saved kilowatt-hour at a time. They break
down the barriers to portfolio-wide energy efficiency deployments through its Efficiency-
Page
43
as-a-Service (EaaS) platform, empowering companies to optimize their real estate
portfolios and save millions on their energy bills. The company's EaaS platform builds the
foundation for future investments in both resource efficiency and smart building
innovation. In 2017, Redaptive customers enjoyed net savings of over $20 million on their
utility bills. It takes a data-driven approach to develop portfolio scale energy and efficiency
upgrade programs including HVAC, LED Lighting among others to cut utility costs,
delivering savings without risk or upfront capital.
BlocPower
http://www.blocpower.io
Established in 2014
New York, United States
BlocPower is an energy technology startup that develops healthier, greener, and smarter
buildings. It leverages advanced technologies, innovative electrification equipment, and
structured finance to provide green heating and cooling to urban buildings. The company
also connects government agencies, utilities, building owners, and smart equipment
providers to identify unhealthy, energy-wasting buildings to retrofit. Its propriety machine
learning platform then determines which retrofits will produce the most energy savings at
scale and uses the cloud and IoT to gather data and remotely monitor energy
consumption. Since its founding, BlocPower has completed energy projects in nearly 1,000
buildings and delivers results ahead of schedule and under budget. It utilizes its
proprietary software for analysis, leasing, project management, and monitoring of urban
clean energy projects and its customers are saving 20-40% on their energy bills each year.
Enervee
https://enervee.com/business
Established in 2012
California, United States
Enervee is a platform-oriented company that drives energy efficiency and consumer
engagement through a suite of innovative SaaS products. The Enervee Score rates the
energy efficiency of consumer electronics and home appliances from 0 to 100 (best). It's a
real time comparison of how a product ranks compared to all others on the market as of
today. Enervee provides personal recommendations for purchasing a product based on
energy efficiency, TrueCost (purchase price + energy cost), and popularity (reviews + sales
volume). These recommendations are distributed via energy-smart shopping channels
available on the Enervee web site and through online publisher and utility partner web
sites. Enervee also provides consumers with an EcoView highlighting the impact of a
product's CO2 emissions on society and the environment. Enervee's data is used by
governments and electric utilities to track market trends and incentivize consumers to
purchase more efficient appliances. Through analyzing product availability based on
location, Enervee can provide a list of utility energy efficiency rebates that are redeemable
Page 44
for each product. The Enervee mission is to help consumers, businesses, and governments
save energy and help the environment by purchasing the most energy efficient products.
Deepki
http://deepki.com/
Established in 2014
Paris, France
Deepki supports real estate players in their transition to net zero and sustainability. To
achieve this transition towards sustainability, Deepki helps realign stakeholders interests
to build efficient strategies and transform real estate into a positive force for the planet.
Deepki is the only company offering a fully populated ESG data intelligence platform
combined with expert advisory services. The company end-to-end solutions leverage data
to improve ESG performance and enhance the value of real estate assets.
References
A. Moneim, D. (2020). Egypt’s pharmaceutical industry suffering, multinational companies
have lion's share: SHUAA Securities report. Retrieved from
https://english.ahram.org.eg/News/359141.aspx
Abdelfattah, H. (2021). Huge potential for Egypt in pharmaceuticals. Retrieved from
Ahram: https://english.ahram.org.eg/NewsContent/50/1201/409663/AlAhramWeekly/Egypt/INTERVIEW-Huge-potential-for-Egypt-in-pharmaceutic.aspx
AHRAM. (2022, March). Ahram. Retrieved from
https://english.ahram.org.eg/NewsContent/1/1235/462630/Egypt/Urban-Transport/Egypt-to-launch-strategy-to-develop-auto-industry,.aspx
Aziz, M. (2020). Egypt's water challenges: Beyond the dam saga. Retrieved from Ahram:
https://english.ahram.org.eg/NewsContent/1/64/359272/Egypt/Politics-/Egyptswaterchallenges-Beyond-the-dam-saga-.aspx
Blumine. (2022). Reverse Resources. Retrieved from https://reverseresources.net
Branca, T.A.; Fornai, B.; Colla, V.; Pistelli, M.I.; Faraci, E.L.; Cirilli, F.; Schröder, A.J. (2021).
Industrial Symbiosis and Energy Efficiency in European Process Industries: A Review.
Sustainability 2021, 13, 9159.
Breisinger, C. (2019). Energy subsidy reform for growth and equity in Egypt: The approach
matters. Energy Policy, 661-671.
Dalia M.M. Yacout, M. A.-K. (2014). Applying Energy Management in Textile Industry, Case
study: An Egyptian Textile Plant. nternational Energy Journal, 87-94.
Page
45
DNE. (2021, April 4). Retrieved from Daily News Egypt:
https://dailynewsegypt.com/2021/04/04/egypts-food-industries-sector-contributes245-to-gdp/
ENC. (2021). WORLD ENERGY ISSUES MONITOR. Retrieved from
https://www.worldenergy.org/world-energy-community/members/entry/egyptarabrep
ESCWA. (2001). EFFICIENT USE OF ENERGY IN THE INDUSTRIAL SECTOR: AN ANALYSIS OF
OPTIONS FOR SELECTED ESCWA MEMBER STATES. ECONOMIC AND SOCIAL
COMMISSION FOR WESTERN ASIA.
ESCWA. (2015). Promoting Energy Efficiency Investments for Climate Change Mitigation
and Sustainable Development. ECONOMIC AND SOCIAL COMMISSION FOR
WESTERN ASIA.
ENER. (2022). Egypt Energy Key figures. Retrieved from
https://www.enerdata.net/estore/energy-market/egypt/
Fernando Enzo Kenta Sato, T. N. (2020). Energy Consumption Analysis for Vehicle
Production through a Material Flow Approach. Energies.
GEFF. (2021). Green Economy Finance Facility. Retrieved from
https://ebrdgeff.com/egypt/wpcontent/uploads/2017/06/Pharmaceutical-Industrycopy.pdf
GM. (2015). 62 GM plants eliminate waste to landfills. Retrieved from
https://news.gm.com/newsroom.detail.html/Pages/news/us/en/2010/May/0506_landfi
lls.html
Han Hongyun, A. R. (2021). Economic and social structure and electricity consumption in
Egypt,. Energy.
Hashimoto, S.; Fujita, T.; Geng, Y.; Nagasawa, E. (2010). Realizing CO2 emission reduction
through industrial symbiosis: A cement production case study for Kawasaki. Resour.
Conserv. Recycl. 2010, 54, 704–710
Hossain Mondal, M. A. (2019). Long-term optimization of Egypt’s power sector: Policy
implications. Energy, 1063-1073.
IFC. (2019). IFC, Egypt’s Ministry of Petroleum and Mineral Resource Help Boost Critical
Energy Infrastructure in Egypt. Retrieved from IFC:
https://pressroom.ifc.org/all/pages/PressDetail.aspx?ID=16121
Koç, D. (2021). Process Monitoring with Advanced Analytics for Improved Plant Efficiency in
the Pharmaceutical Industry. Computer Aided Chemical Engineering, 1325-1330.
Page
46
Mohab M. Salem, A. S. (2018). Assessing Energy Status in Egyptian Industrial Sector.
Proceeding of The 4th International Conference of Biotechnology, Environment and
Engineering Sciences.
Mohamed Ramadan, A. R. (2019). Foresight for sustainable energy policy in Egypt: results
from a Delphi survey. Insights into Regional Development,.
Mokhtar, A., Nasooti, M. (2020) A decision support tool for cement industry to select energy
efficiency measures. Energy Strategy Reviews, 28, 100458
Negm, A. M. (2019). Conventional Water Resources and Agriculture in Egypt. Springer
International Publishing.
Nikiel, C. A. (2021). Past and future trends of Egypt’s water consumption and its sources.
Nature Communications.
NREA, A. R. (2020). NREA. Retrieved from
http://nrea.gov.eg/Content/reports/Annual%20Report%202020%20En.pdf IRENA.
(2018). RENEWABLE ENERGY OUTLOOK EGYPT. International Renewable Energy
Agency.
OEC. (2022). Observatory of Economic Complexity . Retrieved from Observatory of
Economic Complexity : https://oec.world/en/profile/bilateralproduct/cement/reporter/egy
Salma I.Salah, M. E. (2022). Towards a sustainable energy future for Egypt: A systematic
review of renewable energy sources, technologies, challenges, and
recommendations. Cleaner Engineering and Technology.
SWM. (2022). Egypt looking for $2.5 bn in finance for 17 desalination plants.
https://smartwatermagazine.com/news/smart-water-magazine/egypt-looking-25bnfinance-17-desalination-plants. Retrieved from Smart Water Magazine:
https://smartwatermagazine.com/news/smart-water-magazine/egypt-looking-25bnfinance-17-desalination-plants
SWM. (2022). Egypt to establish 14 new seawater desalination plants. Retrieved from
Smart Water Magazine: https://smartwatermagazine.com/news/smartwatermagazine/egypt-establish-14-new-seawater-desalination-plants
Thomson. (2019). Egypt's power subsidy falls to zero in second half of 2019. Retrieved from
Thomson Reuters: https://www.reuters.com/article/egypt-subsidies-idUSL8N2AB1YX
UNDP. (2018). Integration of Energy Efficiency into the Food Manufacturing Industry Sector
Strategy. United Nations Industrial Development Organization.
UNDP. (2018). Integration of Energy Efficiency into Textile Sector Strategy . UNITED
NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION.
USAID. (2018). limate Risk Profile – Egypt. Fact Sheet.
https://www.climatelinks.org/sites/default/files/asset/document/ 2018_USAIDATLASProject_Climate-Risk-Profile-Egypt.pdf.
Page
47