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Overview of the Hybrid

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

March 29, 2007


Overview of Hybrid Hoffman Kiln
• HHK has dominated the brick industry in China
for over 10 years
• Energy efficient
• Environmentally friendly
• Lowers production costs
• Produces stronger quality bricks
• Improves working conditions
• Year-round operations
Energy saved by placing a roof
over the baking area
and insulated with
Kiln roof constructed ….. compacted clay to further
prevent energy losses
Result: Less coal consumed…….reduced GHG emissions
“Internal fuel” through the mixing clay and coal
…….further improvements in energy efficiency
Sustainable development benefit…….reduced air pollution
Sustainable development benefit…….stabilized work force
Improved quality bricks…..
Diversified Product Base
Improved brick industry efficiencies will meet growing demand for
bricks
Summary of Emissions
Reductions
Description Annual Production Emissions
(tons CO2 eq.)

Energy Inefficient Kiln 2.0 mil 760


Energy Inefficient Kiln x 7.5 15.0 mil 5700
New Emissions Reduction 15.0 mil 2955
Technology - HHK
Emission Reductions 2745
(per HHK)
Cost of Demo Kiln
• Cost of the actual kiln Tk 3.4 mil (US$50,000)
• Cost of back process Tk 27.2 mil (US$400,000)

• Total cost Tk 37.4 mil (US$550,000)


(complete kiln with mechanized back processes and
land acquisition)

• Financing: Debt to equity ratio: 65:35:


Loan amount Tk 24.3 mil
Equity Tk 13.1 mil
Investment Profile
• Comparative production cost:
HHK Technology: Tk 1.35/per brick
Current technology: Tk 2.10 per brick

• Rate of return: >30%

• Life: >20-year life

• Payback period: 2 to 3 years


Investment Risks
• Can the entrepreneur manage the larger
operation?
• Will there be well-trained staff to support and
operate the business?
• Will government fiscal policies encourage
energy efficient brick businesses?

Full GEF project is designed to reduce these


risks

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