DISCUSSION PURPOSE ONLY. JCM Project Development by JFE

Transcription

1 JCM Project Development by JFE July 2018

2 JFE Group Structure Est Est JFE Holdings, Inc. (est. 2002) Equity-method affiliate JFE Engineering Net Sales(million $) Employees JFE Steel Net Sales(million $) Employees 3,900 9,300 27,200 44,400 Japan Marine United JFE Shoji Trade Net Sales(million $) Employees 19,100 6,800 (FY2017) 5 2

3 3 JFE s Business to Ensure Sustainable Society Source : JFE Group CSR Report 2017

4 4 JFE s Business to Ensure Sustainable Society Source : JFE Group CSR Report 2017

5 Global Network of JFE Engineering CEO Mr. Oshita Tokyo / Yokohama (Headquarters) America Long Beach (USA) Europe Duisburg (Germany) Rome (Italy) Middle East Al Khobar (Saudi Arabia) Asia & Oceania Singapore Kuala Lumpur (Malaysia) Jakarta (Indonesia) Hanoi, Ho Chi Minh (Vietnam) Bangkok (Thailand) Yangon (Myanmar) Manila (Philippines) Delhi, Pune, Mumbai (India) Shanghai, Beijing (China) 5

6 6 Major Projects by JFE Engineering in India Freight Railway Bridge between Delhi and Mumbai GAIL HBJ Gas Pipeline VIZAG Steel Waste Heat Recovery BTG System ONGC Gas Separation Plant in Uran TATA Motors Pune Dual Fuel Engine

7 Smart Infrastructure for Global Environment Waste-to-Energy Waste Heat Recovery JFE offers the world leading technology Biogas (Sludge Treatment) Geothermal Power Plant 7

8 JCM Project Development Vietnam Waste Heat Recovery Power Generation at Cement Factory in Quang Ninh Province FS(2015) Myanmar Introduction of Waste to Energy Plant in Yangon City FS(2014), Model Project(2015) Indonesia Power Generation by Waste-heat Recovery in Cement Industry PS(2013), Model Project(2014) 8

9 9 <Project 1> Power Generation by Waste-heat Recovery in Cement Industry - Registered Project ID013,10 Jul. 2018

10 Project Summary Counterpart PT Semen Indonesia Site Power Generation Expected GHG Reductions Site Tuban City Tuban Plant, East Jawa 28MW 149,063 tco2/year Surabaya City 10

11 Current Project Implementation 14 Mar 18 Request of registration 30 Apr 18 Starting date of project operation No.1 SP Boiler 10 Jul 18 Registration of project No.1 AQC Boiler Estimated emission reductions in each year 99,375 (in 2018) 149,063 (in 2019) 149,063 (in 2020) Air Cooled Condenser Expected operational lifetime : 9 years 11

12 12 Project Scheme Indonesian Government Japanese Government JCM Agreement Contract Formation on JCM GHG Reductions Semen Indonesia s Budget JCM Subsidy from Japan International Consortium Construction Operation Maintenance MRV Engineering Equipment Supply

13 Overview of WHR System Turbine Generator Electricity Reduction of grid power supply = Reduction of CO 2 Steam Steam 20% Electricity SP Boiler AQC Boiler 20 % 80 % Coal-fired Power Plant Hot Exhaust Gas Hot Exhaust Gas Suspension Preheater Cement Production Process Stack EP Raw Mill Rotary Kiln Clinker Cooler EP Stack 13

14 Eligibility Criteria - Approved Methodology ID_AM001 Criterion 1 Criterion 2 Criterion 3 Criterion 4 Criterion 5 Criterion 6 The project utilizes waste heat from a cement production facility by waste heat recovery (WHR) system to generate electricity WHR system consists of a Suspension Preheater boiler (SP boiler) and/or Air Quenching Cooler boiler (AQC boiler), turbine generator and cooling tower WHR system utilizes only waste heat and does not utilize fossil fuels as a heat source to generate steam for power generation WHR system has not been introduced to a corresponding cement kiln of the project prior to its implementation The cement factory where the project is implemented is connected to a grid system and the theoretical maximum electricity output of the WHR system, which is calculated by multiplying maximum electricity output of the WHR system by the maximum hours per year (24*365=8,760 hours), is not greater than the total amount of the electricity imported to the cement factory from the grid system: > During the previous year before the validation, if the validation of the project is conducted before the operation of the project, or > During the previous year before the operation of the project, if the validation of the project is conducted after the operation of the project The WHR system is designed to be connected only to an internal power grid of the cement factory. 14

15 Calculation of Reference Emissions Quantity of Electricity Generation A B C D E(A*B*C*D ) Generation Capacity (MW) Operating day per year (days/y) Time (hrs/day) Operating Rate Electricity (MWh) Dry Season ,544 Rainy Season ,856 The quantity of electricity consumption ,324 The quantity of net electricity generation by the WHR system which replaced grid electricity import 165,076 RE p = EG p * EF grid = 165,076 MWh/y * tco 2 e/mwh = 149,063 tco 2 e/y 15

16 Potential Replication of WHR Technology Cement Production Waste Heat from Exhaust Gas JFE s WHR Technology Environmentally Friendly Power Generation Benefits CO 2 Emission Reduction No Additional Fuel Required Electricity Reserve for the Community Reduced Consumption from Grid- Connected Power Plants Electricity Generation Using Only Waste Heat Available Electricity for the Communities Savings on Production Costs Apx. 20% substituted with Electricity by WHR 16

17 17 <Project 2> Introduction of Waste to Energy Plant in Yangon City - Approved Methodology MM_AM001

18 Project Summary First WTE Project with JCM First WTE Project in Myanmar Counterpart Site Technology GHG Emission Reduction Yangon City Development Committee Mingalardon area, Yangon City, MYANMAR Waste to Energy(WTE) Incinerator : 60ton/day Generator : 0.7MW 4,700t-CO 2 /year Facility Opening Ceremony on April 7 th 18

19 Project Scheme Myanmar Government September 16, 2015 JCM Agreement Contract Formation on JCM GHG Reductions Japanese Government Yangon City s Budget Yangon City Development Committee JCM Subsidy from Japan JFE Engineering Corporation International Consortium Operation Maintenance Monitoring Reporting Engineering Procurement Construction SV for commissioning 19

20 Why WTE? Multi Benefit for Environment! Waste Power Generation WTE Plant Direct Disposal To Landfill 1/30 (in volume) Ash CH 4 Greenhouse Effect 1/21 Odor 20

21 21 Superiority of JFE Hyper Stoker

22 Eligibility Criteria - Approved Methodology MM_AM001 Criterion 1 Criterion 2 The project newly installs an incinerator, waste heat recovery boiler, exhaust gas treatment equipment and turbine generator. The project incinerates fresh municipal solid waste and generates electricity from steam produced in a boiler which uses heat of incineration. Criterion 3 Criterion 4 Criterion 5 Criterion 6 The project facility is constructed within the municipality where waste to be incinerated by the project is generated. The fraction of energy generated by auxiliary fossil fuels in a construction design document is planned to be not more than 50% of the total energy generated in the incinerator during normal operation. Electricity generated is exported to a grid or used for displacing captive fossil fuel fired power generator. Emissions of NO2 and CO at the stack of incinerator are designed to be less than or equal to the following levels : NO2 (230mg/m3@11%O2) and CO (42mg/m3@11%O2). 22

23 23 Expected GHG Emission Reductions 4,732 tco 2 / year (2,358tCO 2 accounts for the energy-originated CO 2 ) The calculation is based on the condition of 60t of waste treated per day and operation of 310days per year, 24 hours per day (operating ratio: 85%). The emission factor refers to the latest CDM project in Myanmar (0.8tCO 2 /MWh).

24 24 2 Phase Timeline toward Paradigm Shift Small Scale WTE As a Model Project Larger Scale WTE Capacity Building, Regulation Setting, Training of WTE Operation, Finance Arranging, etc. Complete Integrated Waste Management

25 Why WTE fail in many countries? Planning (pre-fs) Design (FS) PQ Tender Build Operation /Maintenance Stop at Planning Stage - Weak policy enforcement, public opposition, no financial source, no supporting regulations, etc. Stop at Designing Stage - Reject of proposal by a competent authority, opposition from existing stakeholders, lack of budget, gap between proposal and needs, etc. Stop at PQ/Tender Stage - Unsuccessful PQ/tender due to conflict of price (tipping fee, etc.), etc. Stop at Operation Stage - Insufficient performance of facility, critical change of waste management policy, bankruptcy of operation company, etc. Source : Created based on Financing issue for a development of recycling and waste treatment facility, Nov. 3 rd 2016, Shiko Hayashi, IGES 25

26 26 For Smooth, Safe and Long-term Operation To make plans of regular maintenance and a major renovation and to be secure these expenses To make plans of receiving waste during maintenance periods Source : JEFMA - Japan Environmental Facilities Manufacturers Association

27 Thank you