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JCM Project Design Document Form A. Project description A.1. Title of the JCM project Energy Saving for Air-Conditioning at Textile Factory by Introducing High-efficiency Centrifugal Chiller in Batang, Central Java (Phase 2) A.2. General description of project and applied technologies and/or measures The proposed JCM project aims to improve energy saving for air-conditioning and process cooling by introducing high-efficiency centrifugal chiller in a textile factory in Indonesia. The factory needs considerable energy, and chillers consume significant amount of energy compared with the other machines in the factory. The proposed project covers a textile factory of PT. Primatexco Indonesia in Batang, Central Java province in Indonesia. The factory replaced a chiller from conventional type to high-efficiency centrifugal chiller and increases energy efficiency in air conditioning. For this, existing three absorption chillers (400 USRt, 400 USRt, and 250 USRt) were replaced with 500 USRt high-efficiency centrifugal chiller. The chiller was installed in March 2015 and started its operation in 1 st April 2015. A.3. Location of project, including coordinates Country Republic of Indonesia Region/State/Province etc.: Central Java Province City/Town/Community etc: Batang Latitude, longitude S 6 55' 0", E 109 44'53" A.4. Name of project participants The Republic of Indonesia Japan PT. Primatexco Indonesia Nippon Koei Co., Ltd. (Focal Point) Ebara Refrigeration Equipment & Systems Co., Ltd. A.5. Duration Starting date of project operation 01/04/2015 Expected operational lifetime of project 7 years A.6. Contribution from developed countries The proposed project was financially supported by the Ministry of the Environment, Japan through the financing programme for JCM model projects which seeks to acquire JCM credits. 1

As for technology transfer, Ebara Refrigeration Equipment & Systems Co., Ltd. (ERS) has provided the following supports to PT. Primatexco: Direct instruction on proper operation, and Efficient monitoring through remote monitoring system B. Application of an approved methodology(ies) B.1. Selection of methodology(ies) Selected approved methodology No. ID_AM002 Version number 2.0 B.2. Explanation of how the project meets eligibility criteria of the approved methodology Eligibility criteria Descriptions specified in the methodology Project information Criterion 1 Project chiller is a centrifugal chiller with a Project chiller (Ebara high capacity of less than 1,250 USRt. * 1 USRt = efficiency centrifugal chiller : 3.52 kw Criterion 2 COP for project chiller i calculated under the standardizing temperature conditions* (COP PJ,tc,i ) is more than 6.0. COP PJ,tc,i is a recalculation of COP of project chiller i (COP PJ,i ) adjusting temperature conditions from the project specific condition to the standardizing conditions. COP PJ,i is derived in specifications prepared for the quotation or factory acceptance test data at the time of shipment by manufacturer. RTBF 050) is a centrifugal chiller with a capacity of 499 USRt. [Calculation ] 1758 [kw] / 3.52 = 499.4 499 [USRt] The COP for project chiller (COP PJ,tc,i ) which is introduced to the proposed project is 6.13. [Calculation result] 7.81 x (36.9 14 + 1.5 + 1.5) / (37.0 7 + 1.5 + 1.5) = 6.1296 6.13 [Equation to calculate COP PJ,tc,i ],, =, [(,, + + ) ( + + )],, : COP of project chiller i calculated under the standardizing temperature 2

Criterion 3 Criterion 4 conditions* [-], : COP of project chiller i under the project specific conditions [-], : Output cooling water temperature of project chiller i set under the project specific condition [degree Celsius], : Output chilled water temperature of project chiller i set under the project specific condition [degree Celsius] : Temperature difference between condensing temperature of refrigerant and output cooling water temperature 1.5 degree Celsius set as a default value [degree Celsius] : Temperature difference between evaporating temperature of refrigerant and output chilled water temperature, 1.5 degree Celsius set as a default value [degree Celsius] The standardizing temperature conditions to calculate COP PJ,tc,i Chilled water: output 7 degree Celsius input 12 degree Celsius Cooling water: output 37 degree Celsius input 32 degree Celsius Periodical check is planned more than four (4) times annually. Ozone Depletion Potential (ODP) of the refrigerant used for project chiller is zero. ERS and PT Ebara Indonesia (PTEI, subsidiary of the ERS which is a chiller manufacturer) agreed to conduct at least one direct periodical check per year by PTEI and remote periodical checks every month by the remote monitoring system by ERS. This remote monitoring system automatically detects the potential error every hour and reports any abnormal condition of chiller to ERS immediately. This periodical check procedure both by direct and remote method is more frequent, effective and better than more than four (4) times of periodical checks stipulated in the methodology (ID_AM002). Refrigerant for the project chiller is HFC 245fa, whose ODP is zero. 3

Criterion 5 Plan for not releasing refrigerant used for project chiller is prepared. In the case of replacing the existing chiller with the project chiller, refrigerant used for the existing chiller is not released to the air. Letter of consent on not releasing refrigerant used for project chiller was prepared by PT Primatexco. Existing chillers are absorption chillers which use water as the refrigerant, thus any special handlings of refrigerant in the existing chillers are not required. C. Calculation of emission reductions C.1. All emission sources and their associated greenhouse gases relevant to the JCM project Reference emissions Emission sources GHG type Power consumption by reference chiller CO 2 Project emissions Emission sources GHG type Power consumption by project chiller CO 2 C.2. Figure of all emission sources and monitoring points relevant to the JCM project Hot water Cooling water Chilled water Monitoring point Cooling tower Pump Project Boundary Process cooling Chiller #1 : Electric energy meter (for chiller) Pump (used within factory) (used within factory) #2 : Electric energy meter (for project site) #1 : Electric energy meter for power consumption of project chiller #2 : Electric energy meter for electricity imported from the grid to the project site National grid 4

Note : There is no captive electricity generator in this site, so h gen is not applicable in this PDD. C.3. Estimated emissions reductions in each year Year Estimated Reference Estimated Project Estimated Emission emissions (tco 2e ) Emissions (tco 2e ) Reductions (tco 2e ) 2015 1,297.91 1,183.57 114.00 2016 1,730.54 1,578.10 152.00 2017 1,730.54 1,578.10 152.00 2018 1,730.54 1,578.10 152.00 2019 1,730.54 1,578.10 152.00 2020 1,730.54 1,578.10 152.00 Total (tco 2e ) 9,950.61 9,074.07 874.00 D. Environmental impact assessment Legal requirement of environmental impact assessment for the proposed project No E. Local stakeholder consultation E.1. Solicitation of comments from local stakeholders Since the project activity is limited to installation of a new environmental friendly chiller in the existing textile factory with a limited level of potential social and environmental impact, the PP identified direct stakeholders as the factory staff related to chiller operations, namely the plant manager and supervisor. As a JCM project, indirect stakeholders are identified to be staff of local governments, chamber of commerce and textile association since they enjoy the benefit of the project (GHG reduction, energy saving, and capacity development) within their administrative boundary. Thus, the PP identified related provincial and district governments specifically. The PP conducted a face-to-face interview and consultation meeting with identified stakeholders. The consultations were conducted two times (see table below). # Date Venue Method 5

1 Mar. 9-10, 2015 Meeting room and factory of PT. Primatexco 2 Aug. 14, 2015 Meeting room in the office of Bappeda of Central Java Province Face-to-face interview and factory visit Local Stakeholder Consultation E.2. Summary of comments received and their consideration Stakeholders Comments received Consideration of comments received Plant manager It is helpful that high-efficiency chiller No action is needed. can contribute to not only energy saving but also cost reduction. And, it is appreciated that Ebara chiller has high reliability equipment based on the existing chiller performance and periodical check/maintenance service. Supervisor New chiller is helpful for daily No action is needed. operation/monitoring work with micro-computer control panel and remote monitoring system which can be checked with PC. Local Provincial government (especially No action is needed. governments (Provincial Government of Bappeda and Environmental Agency of Central Java Province) are satisfied with this support through JCM and Central Java will support this project if needed. We Province and would like to recommend the same Regency type of energy efficient projects to (Kabupaten) Government of Batang) similar type of factories. The project should be successful and should be continued for a long period. We would like to be informed about future update of the Project. Indonesia Textile Association and Regional No comments were received. No action is needed. Chambers of 6

Stakeholders Comments received Consideration of comments received Commerce & Industry F. References Reference lists to support descriptions in the PDD, if any. Annex Revision history of PDD Version Date Contents revised 1.0 27/11/2015 First edition 1.1 21/12/2015 (1) Section A.2: The description of existing three absorption chiller was corrected to existing three absorption chillers (400 USRt, 400 USRt, and 250 USRt). (2) Section E.3: Truncation errors were corrected to calculate Estimated Emission Reductions (tco 2e ). (3) Section E.2: (as of 1 st Application, need deleted) in the title was deleted. (4) Section E.2: In the Stakeholder, Indonesia Textile Association and Regional Chambers of Commerce & Industry was added in the table. 2.0 19/02/2016 Section C.3: The line for the year 2021 was deleted and correspondingly total amount of Estimated Emission Reductions (tco 2e ) was corrected from 1,026.00 (tco 2e ) to 874.00 (tco 2e ). 7