Energy and Greenhouse Gas Management
Having been successively awarded the ISO 14001 Environmental Management Systems, ISO 45001 Occupational Health and Safety Management Systems, and ISO 50001 Energy Management Systems certifications since 1997, we continue to make improvements to our manufacturing processes, implement pollution control measures, reduce energy consumption, eliminate hazards, and minimize occupation accidents using the PDCA approach. Moreover, we control our impact on the environment using knowledge tools and technologies to achieve a balance between the environment, society, and the economy, as well as implement green and sustainable development to meet stakeholders' expectations. CSCC's management and implementation of environmental, safety, and energy systems are detailed as follows:
| Every week | Factory affairs meetings | The heads of manufacturing departments discuss environmental, safety, health, and energy issues and the progress of improvements made with the heads of various departments and first-line workers |
| Every week | Business management meetings | The President discusses environmental, safety, health, and energy issues with the heads of various departments and first-line workers, reviews the implementation outcomes, and adjusts the relevant approaches in a timely manner |
| Every quarter | Occupational Safety and Health Committee | |
| Every year | Environment, safety and health management system review meetings | |
| Every month | Carbon reduction meeting | The President discusses energy-saving plans, reviews carbon reduction achievements with the heads of various departments and first-line workers, adjusts the relevant approaches in a timely manner |
SDG
Performance highlights in 2023
- Compared to the base year, a 2% reduction amounts to 1,724 tons. In 2023, the production plant completed 38 energy-saving projects, achieving a total carbon reduction of 1,870 tons, which is 108.5% of the target value.
- The average energy-saving rate for the entire company is 1.52%.
- Completed the carbon footprint assessment and verification for six coal chemical products and four carbon material series products.
Significance to CSCC
We implement energy management, collect information on financial impact that can assist in decision-making and is forward-looking, and help stakeholders understand the risks and opportunities involved in our move towards energy conservation and carbon reduction and the transition to a low-carbon economy.
Goals
| Short-term goals (2024) |
Medium-term goals (2025～2028) |
Long-term goals (2029 and beyond) |
|---|---|---|
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Management strategies
Continue to refine energy conservation plans for our manufacturing departments by referencing the best available technologies from our international peers, complete the TCFD risk matrix, and introduce a climate governance system
Resources invested and implementation outcomes
Kindly refer to Annual ESG Plan and Implementation Outcomes in this Report for more details.
Energy Consumption
In the wake of climate change, coping with climate disasters has become a critical issue for business operations in recent years. After formulating our short-, medium-, and long-term ESG goals in 2021, we have not only established our greenhouse gas inventory plan and annual reduction targets and schedule in response to climate change and carbon neutrality, but also completed a carbon footprint inventory of our major products. The implementation progress is reported to the Board of Directors on a regular basis for tracking and evaluation.
In 2021, we rolled out the TCFD initiative and established a voluntary climate-related financial disclosure system to collect information on financial impact that can assist in decision-making and is forward-looking, so that our stakeholders can understand the risks and opportunities involved in our move towards energy conservation and carbon reduction and the transition to a low-carbon economy. We also completed a risk matrix assessment and introduced a climate governance system.
Our Coal Chemical Manufacturing Department and Carbon Chemical Manufacturing Department conduct an inventory of Categories 1 and 2 greenhouse gas emissions for the previous year on their own each year. Furthermore, Category 3 greenhouse gas emissions have been included in the scope of inventory according to the ISO 14064:2018 greenhouse gas emissions standards since 2021. A third-party verification body is commissioned to carry out verification of these inventories. CSCC's energy consumption situation for the last three years is detailed as follows:
CSCC's energy consumption situation for the last three years
| Item | 2021 | 2022 | 2023 | |
|---|---|---|---|---|
| CSCC Headquarters | Electricity (MWh) | 73 | 73 | 73 |
| Coal Chemical Manufacturing Department | Electricity (MWh) | 49,128 | 50,919 | 51,578 |
| Steam (ton) | 176,344 | 172,244 | 161,542 | |
| Coke oven gas (kilostere) | 662 | 0 | 289 | |
| Natural gas (kilostere) | 8,532 | 8,522 | 8,024 | |
| Diesel oil (kL) | 579 | 438 | 340 | |
| Total energy consumption (GJ) | 1,060,882 | 1,042,010 | 1,003,179 | |
| Total amount of products (ton) | 656,243 | 647,324 | 580,040 | |
| Energy intensity (GJ per ton of products) | 1.62 | 1.61 | 1.73 | |
| Carbon Chemical Manufacturing Department | Electricity (MWh) | 22,127 | 32,771 | 38,375 |
| Diesel oil (kL) | 7.25 | 9.20 | 9.40 | |
| Liquefied petroleum gas (kg) | 15,500 | 26,500 | 19,450 | |
| Total energy consumption (GJ) | 80,300 | 119,580 | 138,082 | |
| Total amount of products (ton) | 934 | 2,108 | 2,292 | |
| Energy intensity (GJ per ton of products) | 85.97 | 56.73 | 60.25 | |
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Note: The heating values used in the calculation of the items above are listed as follows: 1 kWh of electricity = 860 Mcal; 1 metric ton of steam = 710Mcal; 1 kilostere of coke oven gas = 4,197 Mcal; 1 kilostere of natural gas = 9,307 Mcal; 1 kL of diesel oil = 8,330 Mcal; and 1 kilogram of liquefied petroleum gas = 12Mcal. The energy usage is based on the calculation data provided by the external; procurement unit. |
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CSCC's production volume by product category in 2023 is as follows:(Unit: ton)
In 2023, we purchase 100% of its electricity, use 0% of renewable energy, and use 0% of self generated energy.
We have established the Greenhouse Gas Inventory Management Procedures, which are intended for our greenhouse gas inventory system, in compliance with international greenhouse gas standards such as ISO 14064-1:2006 and domestic rules and regulations related to greenhouse gases such as the Guidelines for Greenhouse Gas Inventory and Registration promulgated by the Environmental Protection Administration, Executive Yuan. We complete our own greenhouse gas inventory on a regular basis each year. With the introduction of the 2018 edition of ISO 14064-1 and the inclusion of other sources of indirect emissions such as employee commuting and transportation in the scope of inventory, CSCC has conducted inventory and verification on a regular basis according to the latest edition of the standards since 2021. A third-party unit is also commissioned to carry out verification to ensure the validity of related data. The categories of greenhouse gases inventoried based on our activities, products, and services, as well as their scope of operations are listed as follows:
| Category | Corresponding activity/ Type of equipment | Source of emissions | |
|---|---|---|---|
| Scope 1 | Stationary combustion sources (i.e., stationary combustion of fuels at a facility) | Emergency power generators | Diesel |
| Gas boilers | Natural gas | ||
| Other reheating furnaces | Natural gas | ||
| Process emission sources (owned or controlled by the organization) | QA laboratory | Acetylene | |
| Mobile combustion sources (i.e., combustion of fuels in transportation modes owned and controlled by the organization, such as automobiles, trucks, trains, planes, and ships) | Engine-powered vehicles (company vehicles) | Gasoline and diesel | |
| Fugitive greenhouse gas emission sources (intentional and unintentional emissions) | Fugitive emissions from air conditioning systems (use, maintenance, and filling) | R410a/R404a/R134a/R22/R32 | |
| Company vehicles (use, maintenance, and filling) | R134a | ||
| Biogas from septic tanks (employee use) | CH4 | ||
| Maintenance and repair | WD-40 | ||
| Fire suppression systems (i.e., fire extinguishers and firefighting equipment) Dry powder (phosphate excluded) |
CO2 | ||
| Volatile organic compounds | CO2 | ||
| Scope 2 | Indirect emissions from input energy sources | Power supply from Taiwan Power Company (Taipower) | Electricity purchased from Taipower |
| Steam supply | Steam purchased from China Steel Corporation | ||
| Scope 3 | Indirect emissions from transportation | Emissions from the transportation of raw materials | Fuels |
| Emissions from the transportation and distribution of the organization's products | Fuels | ||
| Emissions from employee commuting | Fuels | ||
| Emissions from business travel | Fuels | ||
The coal chemical production plant uses the 2018 reporting year as the base year for greenhouse gas inventory. The carbon emission factor for purchased electricity is calculated using the most recent emission factor of 0.495kg CO2 per kWh, as announced by the Bureau of Energy, Ministry of Economic Affairs (updated on March 7, 2024). Carbon emission factors for other energy sources are calculated using the latest factors published by the Environmental Protection Administration. The scope of the 2023 greenhouse gas inventory includes the coal chemical production plant and the operational headquarters. Direct greenhouse gases (Scope 1) and indirect greenhouse gases (Scope 2) account for 32% and 68% of the total emissions, respectively. The emission quantities for each greenhouse gas category for the base year and the past three years (the 2023 inventory data is currently in progress and has not yet been verified) are as follows:
| Year | Category 1 | Category 2 | Total emissions | Reference |
|---|---|---|---|---|
| 2021 | 25,407 tons | 79,989 tons | 105,396 tons | IPCC 2013 Greenhouse Gas Inventory Report |
| 2022 | 32,656 tons | 59,906 tons | 92,562 tons | IPCC 2013 Greenhouse Gas Inventory Report |
| 2023 | 27,054 tons | 57,450 tons | 84,504 tons | IPCC 2013 Greenhouse Gas Inventory Report |
For the Carbon Chemical Manufacturing Department, the base year for greenhouse gas inventory is 2018, i.e., the year when the first greenhouse gas inventory was conducted. The primary type of energy source used in manufacturing processes is electricity as most of the processes involve the use of non-combustion equipment, with only a few using liquefied petroleum gas as energy source. In 2022, direct emissions (Category 1) and indirect emissions (Category 2) accounted for 1% and 99% of the total emissions, respectively. Greenhouse gas emissions from each category of emission source at the Carbon Chemical Manufacturing Department for the base year and the last three years are detailed as follows:
| Year | Category 1 | Category 2 | Total emissions | Reference |
|---|---|---|---|---|
| 2021 | 148 tons | 11,107 tons | 11,255 tons | IPCC 2013 Greenhouse Gas Inventory Report |
| 2022 | 203 tons | 16,741 tons | 16,944 tons | IPCC 2013 Greenhouse Gas Inventory Report |
| 2023 | 121 tons | 18,995 tons | 19,116 tons | IPCC 2013 Greenhouse Gas Inventory Report |
CSCC’s GHG emissions intensity for the last three years are listed as follows:
| Year | Parent company-only revenue | Category 1 | Category 2 | Total emissions | Total emissions/ Revenue |
|---|---|---|---|---|---|
| 2021 | NT$7,810,018 | 25,555 tons | 91,096 tons | 116,651 tons | 0.0149 |
| 2022 | NT$10,442,949 | 32,859 tons | 76,647 tons | 109,506 tons | 0.0105 |
| 2023 | NT$8,091,691,000 | 27,186 tons | 76,481 tons | 103,667 tons | 0.0128 |
In 2023, the Company achieved a reduction of 1,869 tons of CO2 emissions through completed carbon reduction projects. The details and results of the relevant projects are as follows:
| Type | Project | Reduction of CO2 emissions (tons) |
|---|---|---|
| Steam Savings | C4203A Steam Energy Efficiency Improvement | 21 |
| E116B WFO Preheat Improvement | 67 | |
| C521A/B In-House Steam Recirculation Energy Efficiency Improvement | 376 | |
| Electricity Savings | Laboratory Air Conditioning Energy Management Program | 64 |
| Replacement of High-Efficiency/IE3 Motors | 192 | |
| Energy Efficiency Improvement for Plant-Wide Hydraulic Units | 48 | |
| Replacement of Fiberglass Blades for TAR Area Water Tower Fans (F951A/B/C) | 89 | |
| Variable Frequency Control for West-Side Water Tower Fans (F951D/E/F) | 74 | |
| Variable Frequency Control for Fans (F951G/H/I) | 138 | |
| Energy Management for Air Conditioning in 1st MCC Building | 4 | |
| Energy Management for Air Conditioning in Office Building | 30 | |
| AI-Based Energy Savings for TAR Water Tower Fans | 13 | |
| Energy Management for Air Conditioning in 2nd MCC Building | 3 | |
| Energy Management for Air Conditioning in 3rd Electrical Building | 34 | |
| Replacement of Factory Street Lights with Energy-Efficient LED Fixtures | 3 | |
| Reduction of Cleaning Unit Operation Time at ACS Area | 22 | |
| Energy Efficiency Improvement for End-of-Line Power Supply in Graphitization Furnace | 20 | |
| Energy Savings for DC2111/2/7 Dust Collector Cartridge Reverse-Blowing with IA | 35 | |
| Natural Gas Savings | Implementation of Gas Holder for SOG I to Reduce NG Consumption | 476 |
| Diesel Savings | Installation of Rain Shields for BW5/6 | 160 |
| Total | 1,869 | |
We continue to refine the energy conservation plans for our manufacturing departments in accordance with the best available technologies from our international peers. Our performance in the implementation of relevant improvements for 2022 and energy conservation management plans for the last three years is detailed as follows:
| Energy conservation action plan | Estimated benefit from energy conservation | |
|---|---|---|
| Coal Chemical Manufacturing Department | Replacement of LED flat panel lights in the second control room | Reduce electricity consumption by 2.3 MWh each year |
| Installed new E102B2 heat exchanger for DT-AO heat recovery | Reduce steam consumption by 3,884 tons each year | |
| Recycle terminal storage tank MPC | Reduce steam consumption by 1,533 tons each year | |
| Change of steam jacket of breather valve in B/C/D tank to LPS | Reduce steam consumption by 2,518 tons each year | |
| Reduce electricity consumption rate of graphitization furnace | Reduce electricity consumption by 12 MWh each year | |
| Change laboratory lights to induction lighting | Reduce electricity consumption by 4.58 MWh each year | |
| Improve the pumping load of the west cooling water tower | Reduce electricity consumption by 118.1 MWh each year | |
| Reduced diesel fuel consumption in C/B plant | Reduce diesel consumption by 76.2 kL each year | |
| E4101G~L equipment enlargement to improve heat exchanger efficiency | Reduce natural has consumption by 59.202 kilostere each year | |
| Carbon Chemical Manufacturing Department | Energy Efficiency Improvement for B2217 Wind Turbine | Reduce electricity consumption by 50.11 MWh each year |
| Reduction in the Number of Operation Cycles for Wash Tower Circulation Mercury | Reduce electricity consumption by 48.30 MWh each year | |
| Energy Savings Program for Reducing Startup Time of P2413C1/C2 | Reduce electricity consumption by 4.722 MWh each year | |
| Reduction of Cleaning Unit Operation Time at ACS Plant | Reduce electricity consumption by 31.74 MWh each year | |
| Adjustment of Power Supply Operation Logic for Graphitization Furnace End-of-Line | Reduce electricity consumption by 39.35 MWh each year |
| Project | 2021 | 2022 | 2023 | |
|---|---|---|---|---|
| Coal Chemical Manufacturing Department | Number of energy conservation action plans | 3 | 9 | 35 |
| Amount of electricity saved (MWh) | 32 | 156 | 1,400 | |
| Amount of steam saved (ton) | 3,884 | 7,935 | 2,367 | |
| Natural Gas Saved (Nm3) | 0 | 59,202 | 236,600 | |
| Amount of diesel oil saved (kL) | 0 | 76 | 62 | |
| Total amount of energy saved (GJ) | 11,654 | 29,094 | 23,453 | |
| Annual electricity saving rate (%) | 0.07 | 0.23 | 1.856 | |
| Cumulative electricity saving rate (%) | 1.72 | 1.51 | 1.55 | |
| Total energy saving rate (%) | 1.07 | 2.79 | 2.36 | |
| Reduction in greenhouse gas emissions (ton of CO2e) | 1,220 | 2,907 | 1,794 | |
| Carbon Chemical Manufacturing Department | Number of energy conservation action plans | 3 | 3 | 6 |
| Amount of electricity saved (MWh) | 51 | 357 | 263 | |
| Total amount of energy saved (GJ) | 183 | 1,286 | 946 | |
| Annual electricity saving rate (%) | 0.54 | 0.80 | 0.70 | |
| Cumulative electricity saving rate (%) | 2.31 | 1.81 | 1.49 | |
| Total energy saving rate (%) | 2.31 | 1.81 | 1.49 | |
| Reduction in greenhouse gas emissions (ton of CO2e) | 26 | 177 | 130 |
According to the carbon reduction projects completed in 2023, CSCC reduced CO2 emissions by 3,641 tons. The related projects and the results are as follows:
| Type | Project | Reduction of CO2 emissions (tons) |
|---|---|---|
| Amount of steam saved | Install heat exchangers to reduce steam consumption | 2,584 |
| Change of MPS/MPC piping material at district 200 zone 1 to stainless steel to reduce breakage | 732 | |
| Change of steam jacket of breather valve in B/C/ D tank to LPS to reduce steam consumption | 210 | |
| Amount of electricity saved | Update of E127B to spiral heat exchanger | 29 |
| Reduce cooling water at the west to reduce electricity consumption | 71 | |
| Program on replacement of LED flat panel lights in the second control room | 1 | |
| Change laboratory lights to induction lighting | 3 | |
| Reduce electricity consumption rate of graphitization furnace | 11 | |
| Total | 3,641 | |
Greenhouse Gas Control
According to the 2015 Paris Climate Agreement, each country must review their own contributions to carbon reduction with the goal of limiting global warming to well below 2 degrees Celsius by the end of the century. In 2018, the Intergovernmental Panel on Climate Change (IPCC) recommended that global warming should be controlled further to within 1.5 degrees Celsius while emphasizing the need to achieve a 45% reduction in carbon emissions by 2030 and realize net zero emissions (and carbon neutrality) by 2050.
To align with the aforementioned policy goals and implement greenhouse gas control, the Company completed a carbon footprint assessment and external verification for ten key products, including mesophase pitch carbon microspheres and mesophase graphite carbon microspheres, in 2023. Additionally, the Company conducts an annual ISO 14064-1:2018 standard greenhouse gas inventory and external verification to establish reduction benchmarks. Through various energy-saving and process improvement measures, the mid- to long-term goal post-2023 is to reduce greenhouse gas emissions by 2% or more annually, and to purchase green electricity to lower carbon emissions. Following the 2023 inventory (currently unverified), the total greenhouse gas emissions across categories were 113,804 tons. Starting in 2024, the Company will implement annual reduction plans for each category of emissions, aiming to sustain and effectively reduce greenhouse gas emissions.
Greenhouse gas emissions at CSCC in 2023
| Scope | Gas emissions | Ratio |
|---|---|---|
| direct greenhouse gas emissions | 27,186 tons | 23.9% |
| indirect greenhouse gas emissions from input energy sources | 76,481 tons | 67.2% |
| greenhouse gas emissions from transportation | 10,137 tons | 8.9% |