jcm project development by jfe - iges · 2018. 3. 7. · jakarta (indonesia) hanoi, ho chi minh...

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March 2018 DISCUSSION PURPOSE ONLY JCM Project Development by JFE

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Page 1: JCM Project Development by JFE - IGES · 2018. 3. 7. · Jakarta (Indonesia) Hanoi, Ho Chi Minh (Vietnam) Bangkok (Thailand) Yangon ... Shanghai, Beijing (China) Asia & Oceania. Smart

March 2018

DISCUSSION PURPOSE ONLY

JCM Project Development by JFE

Page 2: JCM Project Development by JFE - IGES · 2018. 3. 7. · Jakarta (Indonesia) Hanoi, Ho Chi Minh (Vietnam) Bangkok (Thailand) Yangon ... Shanghai, Beijing (China) Asia & Oceania. Smart

JFE Group Structure

22Copyright 2018 © JFE Engineering Corporation All Rights Reserved

DISCUSSION PURPOSE ONLY

JFE Holdings, Inc.(est. 2002)

5

44,400

Net Sales(million $)

Employees23,500

JFE Steel

6,800

Net Sales(million $)

Employees

16,700

JFE Shoji Trade

9,200

Net Sales(million $)

Employees4,300

Japan Marine United

Est. 1912 Est. 1951

Equity-method affiliate

(FY2016)

JFE Engineering

Page 3: JCM Project Development by JFE - IGES · 2018. 3. 7. · Jakarta (Indonesia) Hanoi, Ho Chi Minh (Vietnam) Bangkok (Thailand) Yangon ... Shanghai, Beijing (China) Asia & Oceania. Smart

Global Network

33Copyright 2018 © JFE Engineering Corporation All Rights Reserved

DISCUSSION PURPOSE ONLY

America

EuropeDuisburg (Germany)Rome (Italy)

Long Beach (USA)

Middle East

Al Khobar (Saudi Arabia)

Tokyo / Yokohama (Headquarters)

CEO Mr. Oshita

SingaporeKuala Lumpur (Malaysia)Jakarta (Indonesia)Hanoi, Ho Chi Minh (Vietnam)Bangkok (Thailand)Yangon (Myanmar)Manila (Philippines)Delhi, Pune, Mumbai (India)Shanghai, Beijing (China)

Asia & Oceania

Page 4: JCM Project Development by JFE - IGES · 2018. 3. 7. · Jakarta (Indonesia) Hanoi, Ho Chi Minh (Vietnam) Bangkok (Thailand) Yangon ... Shanghai, Beijing (China) Asia & Oceania. Smart

Smart Infrastructure for Global Environment

Copyright 2018 © JFE Engineering Corporation All Rights Reserved

DISCUSSION PURPOSE ONLY

4

Waste-to-Energy

Biogas (Sludge Treatment) Geothermal Power Plant

Waste Heat Recovery

4

JFE offers the world leading technology

Page 5: JCM Project Development by JFE - IGES · 2018. 3. 7. · Jakarta (Indonesia) Hanoi, Ho Chi Minh (Vietnam) Bangkok (Thailand) Yangon ... Shanghai, Beijing (China) Asia & Oceania. Smart

JCM Project Development

Copyright 2018 © JFE Engineering Corporation All Rights Reserved

DISCUSSION PURPOSE ONLY

55

MyanmarIntroduction of Waste to Energy Plant in Yangon CityFS(2014), Model Project(2015)

IndonesiaPower Generation by Waste-heat Recovery in Cement IndustryPS(2013), Model Project(2014)

VietnamWaste Heat Recovery Power Generation at Cement Factory in Quang Ninh Province FS(2015)

Page 6: JCM Project Development by JFE - IGES · 2018. 3. 7. · Jakarta (Indonesia) Hanoi, Ho Chi Minh (Vietnam) Bangkok (Thailand) Yangon ... Shanghai, Beijing (China) Asia & Oceania. Smart

DISCUSSION PURPOSE ONLY

<Project 1>Power Generation by Waste-heat Recovery in Cement Industry

6Copyright 2018 © JFE Engineering Corporation All Rights Reserved

Page 7: JCM Project Development by JFE - IGES · 2018. 3. 7. · Jakarta (Indonesia) Hanoi, Ho Chi Minh (Vietnam) Bangkok (Thailand) Yangon ... Shanghai, Beijing (China) Asia & Oceania. Smart

Project Summary

DISCUSSION PURPOSE ONLY

Counterpart PT Semen Indonesia

SiteTuban Plant,

East Jawa

Power Generation

28MW

Surabaya

Tuban

appx100kmSurabaya

Jakarta

PJ Site

7Copyright 2018 © JFE Engineering Corporation All Rights Reserved

Page 8: JCM Project Development by JFE - IGES · 2018. 3. 7. · Jakarta (Indonesia) Hanoi, Ho Chi Minh (Vietnam) Bangkok (Thailand) Yangon ... Shanghai, Beijing (China) Asia & Oceania. Smart

Project Scheme

DISCUSSION PURPOSE ONLY

Contract Formation on JCMJCM Agreement

JCM Subsidy from Japan

International Consortium

Japanese GovernmentIndonesian Government

GHGReductions

Construction Operation Maintenance MRV

Engineering Equipment Supply

Semen Indonesia’s Budget

8Copyright 2018 © JFE Engineering Corporation All Rights Reserved

Page 9: JCM Project Development by JFE - IGES · 2018. 3. 7. · Jakarta (Indonesia) Hanoi, Ho Chi Minh (Vietnam) Bangkok (Thailand) Yangon ... Shanghai, Beijing (China) Asia & Oceania. Smart

Overview of WHR System

DISCUSSION PURPOSE ONLY

Raw MillStack

EPClinker Cooler

EP

Stack

Rotary Kiln

Suspension Preheater

Cement Production Process

Coal-fired Power Plant

Electricity

SP Boiler AQC Boiler

Turbine Generator

Hot Exhaust Gas

Hot Exhaust Gas

Steam

Steam

ElectricityReduction of grid power supply =

Reduction of CO2

20%

80%

20%

9Copyright 2018 © JFE Engineering Corporation All Rights Reserved

Page 10: JCM Project Development by JFE - IGES · 2018. 3. 7. · Jakarta (Indonesia) Hanoi, Ho Chi Minh (Vietnam) Bangkok (Thailand) Yangon ... Shanghai, Beijing (China) Asia & Oceania. Smart

Eligibility Criteria - Approved Methodology ID_AM001

DISCUSSION PURPOSE ONLY

Criterion 1 The project utilizes waste heat from a cement production facility by waste heat recovery (WHR) system to generate electricity

Criterion 2 WHR system consists of a Suspension Preheater boiler (SP boiler) and/or Air Quenching Cooler boiler (AQC boiler), turbine generator and cooling tower

Criterion 3 WHR system utilizes only waste heat and does not utilize fossil fuels as a heat source to generate steam for power generation

Criterion 4 WHR system has not been introduced to a corresponding cement kiln of the project prior to its implementation

Criterion 5 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

Criterion 6 The WHR system is designed to be connected only to an internal power grid

of the cement factory.10Copyright 2018 © JFE Engineering Corporation All Rights Reserved

Page 11: JCM Project Development by JFE - IGES · 2018. 3. 7. · Jakarta (Indonesia) Hanoi, Ho Chi Minh (Vietnam) Bangkok (Thailand) Yangon ... Shanghai, Beijing (China) Asia & Oceania. Smart

Calculation of Reference Emissions (revised)

DISCUSSION PURPOSE ONLY

11Copyright 2018 © JFE Engineering Corporation All Rights Reserved

A B C D E(A*B*C*D)

Quantity of Electricity Generation

Generation Capacity

(MW)

Operating day per

year (days/y)

Time(hrs/day)

Operating Rate

Electricity(MWh)

Dry Season 28 164.5 24 1 110,544

Rainy Season 22 164.5 24 1 86,856

The quantity of electricity consumption

3.69 365 24 1 32,324

The quantity of net electricity generation by the WHR system which replaced grid electricity import

165,076

REp = EGp * EFgrid

= 165,076 MWh/y * 0.903 tCO2 e/MWh= 149,063 tCO2e/y

Page 12: JCM Project Development by JFE - IGES · 2018. 3. 7. · Jakarta (Indonesia) Hanoi, Ho Chi Minh (Vietnam) Bangkok (Thailand) Yangon ... Shanghai, Beijing (China) Asia & Oceania. Smart

Latest News of the Project

DISCUSSION PURPOSE ONLY

12Copyright 2018 © JFE Engineering Corporation All Rights Reserved

Project Inspection Meeting on February 2018

Source; http://jcm.ekon.go.id/en/index.php/tfront/content/MTk%253D/latest_news/439

Page 13: JCM Project Development by JFE - IGES · 2018. 3. 7. · Jakarta (Indonesia) Hanoi, Ho Chi Minh (Vietnam) Bangkok (Thailand) Yangon ... Shanghai, Beijing (China) Asia & Oceania. Smart

No Additional Fuel Required

CO2 Emission Reduction

Waste Heat Recovery Benefits

DISCUSSION PURPOSE ONLY

WHR System to other cement factory in Indonesia

More opportunities in further reduction of GHG emission

Savings on Production Costs

Electricity Reserve for the Community

13Copyright 2018 © JFE Engineering Corporation All Rights Reserved

Page 14: JCM Project Development by JFE - IGES · 2018. 3. 7. · Jakarta (Indonesia) Hanoi, Ho Chi Minh (Vietnam) Bangkok (Thailand) Yangon ... Shanghai, Beijing (China) Asia & Oceania. Smart

DISCUSSION PURPOSE ONLY

<Project 2>Introduction of Waste to Energy Plant in Yangon City

14Copyright 2018 © JFE Engineering Corporation All Rights Reserved

Page 15: JCM Project Development by JFE - IGES · 2018. 3. 7. · Jakarta (Indonesia) Hanoi, Ho Chi Minh (Vietnam) Bangkok (Thailand) Yangon ... Shanghai, Beijing (China) Asia & Oceania. Smart

Project Summary

DISCUSSION PURPOSE ONLY

CounterpartYangon City Development

Committee

SiteMingalardon area, Yangon City,

MYANMAR

TechnologyWaste to Energy(WTE)Incinerator : 60ton/day

Generator : 0.7MW

GHG Emission Reduction

4,700t-CO2/year

First WTE Project with JCM First WTE Project in Myanmar

Copyright 2018 © JFE Engineering Corporation All Rights Reserved

Facility Opening Ceremony on April 7th

15

Page 16: JCM Project Development by JFE - IGES · 2018. 3. 7. · Jakarta (Indonesia) Hanoi, Ho Chi Minh (Vietnam) Bangkok (Thailand) Yangon ... Shanghai, Beijing (China) Asia & Oceania. Smart

Project Scheme

DISCUSSION PURPOSE ONLY

16Copyright 2018 © JFE Engineering Corporation All Rights Reserved

Contract Formation on JCMJCM Agreement

International Consortium

Myanmar Government

Yangon City Development Committee

GHGReductions

Operation Maintenance Monitoring Reporting

September 16, 2015

Yangon City’s Budget JCM Subsidy from G of Japan

Japanese Government

JFE Engineering Corporation

Construction Supervisor Dispatch

Page 17: JCM Project Development by JFE - IGES · 2018. 3. 7. · Jakarta (Indonesia) Hanoi, Ho Chi Minh (Vietnam) Bangkok (Thailand) Yangon ... Shanghai, Beijing (China) Asia & Oceania. Smart

Benefit of Waste to Energy Project

DISCUSSION PURPOSE ONLY

17Copyright 2018 © JFE Engineering Corporation All Rights Reserved

Power generation

(exported to the grid)

MSWCH4

Reduction of CO2 emission from fossil fuel consumption at power plant

Project Scenario

CH4

Baseline Scenario

GHG Emission Reduction

CO2

CO2

Landfill Power Generation

CO2

Page 18: JCM Project Development by JFE - IGES · 2018. 3. 7. · Jakarta (Indonesia) Hanoi, Ho Chi Minh (Vietnam) Bangkok (Thailand) Yangon ... Shanghai, Beijing (China) Asia & Oceania. Smart

Eligibility Criteria – preliminary draft

DISCUSSION PURPOSE ONLY

Criterion 1 The project newly installs an incinerator, waste heat recovery boiler, exhaust gas treatment equipment and turbine generator.

Criterion 2 The project incinerates fresh municipal solid waste and generates electricity from steam produced in a boiler which uses heat of incineration.

Criterion 3 The project facility is constructed within the municipality where waste to be incinerated by the project is generated.

Criterion 4 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.

Criterion 5 Electricity generated is exported to a grid or used for displacing

captive fossil fuel fired power generator.

Criterion 6 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).

18Copyright 2018 © JFE Engineering Corporation All Rights Reserved

Page 19: JCM Project Development by JFE - IGES · 2018. 3. 7. · Jakarta (Indonesia) Hanoi, Ho Chi Minh (Vietnam) Bangkok (Thailand) Yangon ... Shanghai, Beijing (China) Asia & Oceania. Smart

Expected GHG Emission Reductions

DISCUSSION PURPOSE ONLY

19Copyright 2018 © JFE Engineering Corporation All Rights Reserved

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 (0.8tCO2/MWh).

4,732 tCO2/ year(2,358tCO2 accounts for the energy-originated CO2)

Page 20: JCM Project Development by JFE - IGES · 2018. 3. 7. · Jakarta (Indonesia) Hanoi, Ho Chi Minh (Vietnam) Bangkok (Thailand) Yangon ... Shanghai, Beijing (China) Asia & Oceania. Smart

2 Phase Timeline toward Paradigm Shift

DISCUSSION PURPOSE ONLY

20Copyright 2018 © JFE Engineering Corporation All Rights Reserved

Small Scale WTEAs a Model Project

Larger Scale WTE

Capacity Building,Regulation Setting,Training of WTE Operation,Finance Arranging, etc.

CompleteIntegrated Waste Management

Page 21: JCM Project Development by JFE - IGES · 2018. 3. 7. · Jakarta (Indonesia) Hanoi, Ho Chi Minh (Vietnam) Bangkok (Thailand) Yangon ... Shanghai, Beijing (China) Asia & Oceania. Smart

DISCUSSION PURPOSE ONLY

Going forward

21Copyright 2018 © JFE Engineering Corporation All Rights Reserved

Page 22: JCM Project Development by JFE - IGES · 2018. 3. 7. · Jakarta (Indonesia) Hanoi, Ho Chi Minh (Vietnam) Bangkok (Thailand) Yangon ... Shanghai, Beijing (China) Asia & Oceania. Smart

Challenges toward next JCM projects

DISCUSSION PURPOSE ONLY

22Copyright 2018 © JFE Engineering Corporation All Rights Reserved

JCM financing capacity to apply for larger scale project

Discrepancy between JCM subsidy program and project timeline (board approval, public procurement schedule, etc.)

Knowledge building of necessity/obligation for MRV during designated period

Further appeal as finance incentive for various private sectors

…and more ?

Page 23: JCM Project Development by JFE - IGES · 2018. 3. 7. · Jakarta (Indonesia) Hanoi, Ho Chi Minh (Vietnam) Bangkok (Thailand) Yangon ... Shanghai, Beijing (China) Asia & Oceania. Smart

Thank you http://www.jfe-eng.co.jp/en/