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ACTIVITIES IMPLEMENTED JOINTLY (AIJ)

List of Projects

Uniform Reporting Format:

Activities Implemented Jointly Under the Pilot Phase

A. Description of Project

1) Title of project:

The Model Project for Energy Conservation in Electric Furnace used for Ferro-Alloy Refining

2) Participants/actors:

Please fill in one table for each participant/actor. For individuals fill in as from item "Function within activity".

Error! Bookmark not defined.Item Please fill in if applicable

Name of organization(a):

Name of organization (English):

New Energy and Industrial Technology Development Organization

Department:

International Cooperation Center

Acronym:

Acronym (English):

NEDO

Function within activity:

Governmental Organization of Japan side in charge of

project evaluation, negotiation as well as implementation

of national AIJ program

Street:

1-1, 3-chome Higashi-Ikebukuro, Toshima-ku

Post code:

170-6028

City:

Tokyo

Country:

Japan

Telephone:

81-3-3987-9313

Fax:

81-3-5992-2290

E-mail:

WWW-URL:

http://www.nedo.go.jp

Contact person (for this activity):

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Surname:

Kigasawa

First name, middle name:

Takaji

Job title:

Director

Direct tel:

81-3-3987-9466

Direct fax:

81-3-3987-5103

Direct E-mail:

kigasawatkj@nedo.go.jp

Error! Bookmark not defined.Item Please fill in if applicable

Name of organization(a):

Name of organization (English):

NKK Corporation

Department:

Engineering Division

Acronym:

Acronym (English):

NKK

Function within activity:

Entrusted by NEDO to execute Japanese scope of this AIJ project in cooperation with Chinese counterpart.

Street:

2-1, Suehiro-cho, Tsurumi-ku

Post code:

203-8611

City:

Yokohama

Country:

Japan

Telephone:

81-45-505-6568

Fax:

81-45-505-8929

E-mail:

WWW-URL:

http://www.tsurumi.nkk.co.jp

Contact person (for this activity):

-------------------------------------

Surname:

Ishii

First name, middle name:

Akira

Job title:

Deputy General Manager

Direct tel:

81-45-505-6568

Direct fax:

81-45-505-8929

Direct E-mail:

ishiia@eng.tsurumi.nkk.co.jp

Error! Bookmark not defined.Item Please fill in if applicable

Name of organization(a):

Name of organization (English):

The Ministry of Science and Technology, People's Republic of China

Department:

Department of Rural and Social Development

Acronym:

Acronym (English):

MOST

Function within activity:

Governmental Authority of China side in charge of project evaluation, negotiation and approval as well as implementation of national AIJ program

Street:

15B Fuxing Road

Post code:

100862

City:

Beijing

Country:

The People's Republic of China

Telephone:

Fax:

E-mail:

WWW-URL:

Contact person (for this activity):

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Surname:

Lu

First name, middle name:

Xuedu

Job title:

Direct Tel.:

86 10 68514054

Direct fax:

86 10 68512163

Direct E-mail:

Lv Xuedu LVXD@MAIL.MOST.GOV.CN

Item Please fill in if applicable

Name of organization(a):

Name of organization (English):

The State Development Planning Commission, People's Republic of China

Department:

Department of Regional Economy

Acronym:

Acronym (English):

SDPC

Function within activity:

Governmental Authority of China side in charge of national development plan and national project evaluation and domestic approval for project financing and construction.

Street:

38,S. Yuetan Street

Post code:

100824

City:

Beijing

Country:

The People's Republic of China

Telephone:

Fax:

E-mail:

WWW-URL:

Contact person (for this activity):

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Surname:

First name, middle name:

Job title:

Direct tel:

Direct fax:

Direct E-mail:

Item

Please fill in if applicable

Name of organization(a):

Name of organization (English):

The State Metallurgical Industry Bureau, People's Republic of China

Department:

Acronym:

Acronym (English):

SMIB

Function within activity:

Governmental Authority of China side in charge of sectoral management for state owned metallurgical industry, including energy conservation renovation.

Street:

46 Dongsi Xidajie

Post code:

100711

City:

Beijing

Country:

The People's Republic of China

Telephone:

Fax:

E-mail:

WWW-URL:

Contact person (for this activity):

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Surname:

First name, middle name:

Job title:

Direct tel:

Direct fax:

Direct E-mail:

Item Please fill in if applicable

Name of organization(a):

Name of organization (English):

Planning Committee of Liaoning Province, People’s Republic of China

Department:

Acronym:

Acronym (English):

PCLP

Function within activity:

Provincial governmental authority of Liaoning Province of China side in charge of provincial development plan and provincial project evaluation and domestic approval for project financing and construction.

Street:

No.45 Beijing Street, Huanggu District

Post code:

110032

City:

Shenyang

Country:

The People's Republic of China

Telephone:

Fax:

E-mail:

WWW-URL:

Contact person (for this activity):

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Surname:

First name, middle name:

Job title:

Direct tel.:

Direct fax:

Direct E-mail:

Item Please fill in if applicable

Name of organization(a):

Name of organization (English):

Liaoyang Ferroalloy Group

Department:

Acronym:

Acronym (English):

LFG

Function within activity:

The owner and executive entity of the project.

Street:

No.21 Zhenxing Road

Post code:

111004

City:

Liaoyang, Liaoning Province

Country:

The People’s Republic of China

Telephone:

86 419 3306858

Fax:

86 419 3303264

E-mail:

Lythj@public2.lyptt.in.cn

WWW-URL:

Contact person (for this activity):

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Surname:

CHEN

First name, middle name:

Tie Gang

Job title:

Director

Direct tel.:

86-419-3306858

Direct fax:

86-419-3303264

Direct E-mail:

Item

Please fill in if applicable

Name of organization(a):

Name of organization (English):

Tsinghua University

Department:

Institute for Techno-Economics & Energy Systems Analysis / Institute of Nuclear Energy Technology

Acronym:

Acronym (English):

ITEESA /INET

Function within activity:

Entrusted by MOST to execute Chinese scope of this AIJ project in cooperation with Japanese counterpart. See A. 5) in detail.

Street:

Tsinghua Yuan Street, Haidian District

Post code:

100084

City:

Beijing

Country:

The People's Republic of China

Telephone:

86-10-6277-2752, 6278-3655

Fax:

86-10-6277-1150

E-mail:

Liuds@tsinghua.edu.cn

WWW-URL:

http://www.inet.tsinghua.edu.cn

Contact person (for this activity):

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Surname:

Liu

First name, middle name:

Deshun

Job title:

Professor, Deputy Director, Global Climate Change Institute (GCCI), INET/ITEESA Tsinghua University

Direct Tel.:

86-10-6277-2752, 6278-3655

Direct fax:

86-10-6277-1150

Direct E-mail:

Liuds@tsinghua.edu.cn

a) Organization includes: institutions, ministries, companies, non-governmental organizations, etc. involved in the activity, i.e. research institutes associated with the project, auditors, government agency closely following the activity.

3) Activity:

Item Please fill in if applicable

General description :

The objective of the Project is to contribute to efficient use of energy and consequently the protection of the local environment in Liaoyang, P.R.China as well as the reduction of CO2 emission, by installing furnace cover, CO gas recovery system, and a palletizing plant into existing electric furnaces at Liaoyang Ferroalloy Works and disseminating the technology in P.R.China.

Type of project :

Energy efficiency

Location (exact, e.g. city, region, State):

No.21 Zhenxing Road, Liaoyang Liaoning, 111004, P.R. China

Activity starting date:

September 1998

Expected activity ending date:

March 2021

Stage of activity:

Mutually agreed

Lifetime of activity if different from ending date:

20 Years

Technical data:

Annual production of ferro-chromium at Liaoyang Ferroalloy Works is around 38,300 ton/year.

After implementing the project:

  1. Unit electricity consumption of the furnace is expected to be reduced by 132 kWh/ton-FeCr.
  2. Unit coke consumption is expected to be reduced by 49kg/ton-FeCr.
  3. The waste CO will be recovered as fuel at the net rate of 471 Nm3-CO/ton-FeCr, which will replace boiler fuel equivalent to 6,945 ton-coal/year.
  4. Calorific value of the gas is 2,700 kcal/ Nm3.
  5. CO2 emission is then expected to be reduced by 29,050 ton-CO2/year.

4) Cost (to the extent possible): 1US$= 120 Japanese Yen; 1US$= 8.27Yuan RMB;

Base Year :1999

Item 1997 1998 1999 2000 Total

Cost of the project in US$:

3,750,000

6,192,000

3,330,000

8,623,000*

AIJ component in US$**:

3,750,000

6,192,000

3,330,000

8,623,000*

US$ per avoided ton of CO2***

22.64
Cost of the project given above is based on the budget

*: of which cost invested by Japanese side is 1,333,000 US$, while 7,290,000 US$ by Chinese side,

**: For this AIJ project as energy conservation retrofitting, it is hard to distinguish which component is AIJ specific one, since all components are necessary in contributing to the energy saving benefits eventually.

***: It is defined here as life cycle averaged annual incremental cost for CO2 emission reduction against the baseline, see Table 1 in detail in Attachment.

5) Mutually agreed assessment procedures:

Describe the procedures, including name of organizations involved a):

Basic Agreement concerning the execution of this project was concluded between NEDO and SDPC, SMIB and PCLP on September 3, 1998.

NEDO concluded with NKK Co. to trust the execution of Japanese scope of this project in December 4, 1998.

NKK Co. and LFG concluded the Execution Document (ED) in which concrete specification, detail work assignment, etc. concerning this project was clearly specified in September 16, 1998, and started the design and engineering work of the project.

As determined in ED, LFG shall have responsibility to record and provide technical and economic data, which will be necessary for calculation of the CO2 emission level both for baseline and the AIJ project and for calculation of the emission reduction cost. Such data shall cover, for example, unit electricity consumption, unit coke consumption and total amount of recovery furnace gas, etc., as well as other investment and operation cost data for the subsequent reporting period.

LFG and NKK shall submit the report on the data listed as above to MOST and NEDO before and after completion of the test run for review.

Based on the data available, ITEESA, Tsinghua University shall make feasibility study on the eligibility of the AIJ project and on assessment of the environmental benefits relating to the CO2 emission reduction, as well as on the methodological issues in close co-operation with LFG and NKK experts, with a view of preparing study report and draft report in uniform reporting format, to be submitted to both governments.

a) Please ensure that detailed contact information for all organizations mentioned is reported under section A.2 above.

B. Governmental acceptance, approval or endorsement

Bearing in mind that all activities implemented jointly under this pilot phase require prior acceptance, approval or endorsement by the Governments of the Parties participating in these activities, which shall be shown as follows:

a. In the case of joint reporting, the report is submitted by the designated national authority of one participating Party with the concurrence of all other participating Parties as evidenced by attached letters issued by the relevant national authorities;

b. In the case of separate reporting, the reports are submitted separately by the designated national authority of each and every participating Party. Information will only be compiled once reports have been received from all participating Parties.

1) For the activity:

This report is the first report covering the activities at AIJ project feasibility study and AIJ project design stage, and copies of letters of endorsement by each designated national authority of Parties are attached.

Describe:

MOST and NEDO concluded the "Memorandum of Understanding on Cooperation in the Model Project for Energy Conservation in Electric Furnace Used for Ferro-Alloy Refining as a project of AIJ under the pilot phase"on September 25, 1998.

The Ministry of International Trade and Industry of Japan (MITI) approved this project as Activity Implemented Jointly - Japan Program on June 17, 1998.

(MITI) The Japanese government confirmed this project as Activity Implemented Jointly (AIJ) under pilot phase on June 23,1999.

MOST authorized by Chinese government, confirmed this project as Activity Implemented Jointly (AIJ) under pilot phase on July 9,1999.

2) This report is a joint report:
  • Yes, forward copy of agreement/endorsement by the designated national authorities involved
    No, this is a separate report. The reports are submitted separately by the designated national authority of each and every participating party.

3) General short comment by the government(s) if applicable:

This is the first project report. The system boundary design and technical basic data were preliminary checked among the Chinese and Japanese experts. The environmental benefits and methodological and technical issues were addressed on the project specific basis. On the other hand, due to insufficient data availability and lack of uniformed methodology guide-lines the results reported here may be subject to modification. Hopefully with the further progress of the project activities, more monitoring information on emissions and experiences in methodologies will be built up, and therefore the subsequent reports could be updated later on.

C. Compatibility with and supportiveness of national economic development and socio-economic and environment priorities and strategies

Describe (to the extent possible) how the activity is compatible with and supportive of national economic development and socio-economic and environment priorities and strategies

As energy supply and demand issues and protection of the global environment have become the focus of worldwide interest, NEDO is promoting energy conservation model projects in Asian countries including China, to contribute to the effective use of energy and improvement of environmental pollution.

In China, strong national policies for energy conservation and environmental protection have been set, and relating regulations and laws have come into effect. The energy intensive metallurgical industry in China has been listed as focused sector for energy conservation.

As an AIJ cooperation between Japan and China, this project will contribute to efficient use of energy and consequent protection of the local environment in China as well as CO2 emission mitigation by adopting advanced technology and equipment provided by Japan in the Ferro-Alloy Refinery Works in the sector. Therefore the AIJ activity is compatible with and supportive of national economic development and socio-economic environment priorities and strategies.

D. Benefits derived from the activities implemented jointly project

Whenever possible, quantitative information should be provided. Failing that, a qualitative description should be given. If quantitative information becomes available, it could be submitted using the update(s). (If the amount of quantitative information is too large, the source could be indicated.)

Item Please fill in

Describe environmental benefits in detail:

Electric power and consumption of cokes and electrode consumption will be reduced and waste CO will be recovered by implementing the project. Accordingly,

  1. CO2 emission associated with power generation, coke and CO combustion will be reduced.
  2. SO2 emission associated with power generation and production of cokes will be reduced.
  3. As recovery system equipped with series of Venturi scrubbers will be installed to remove most of the dust contained in the gas, therefore, the dust emission will be dramatically reduced.

Do quantitative data exist for evaluation of environmental benefits?

Yes, CO2 emission reduction is estimated as 29,050 ton-CO2/year.

Describe social/cultural benefits in detail:

  1. Project management method
  2. Management of pelletizing plant operation including pellet size control
  3. Operating of CO gas recovery system
  4. Increase in job opportunity for pelletizing plant

Do quantitative data exist for evaluation of social benefits?

No

Describe economic benefits in detail:

  1. Cost in electric power consumption will be reduced.
  2. Cost in coke consumption will be reduced by less coke/Fe ratio, when pellets ore are used.
  3. Raw material cost can be reduced by utilizing pellets which is made from the cheaper fine chromium ore, instead of expensive bulk ore.
  4. CO gas will be recovered from the electric furnace as fuel used in steam boiler to generate heat replacing those for TiO production process and space heating in winter that are currently purchased from thermal power utility.

Do quantitative data exist for evaluation of economic benefits?

Yes

E. Calculation of the contribution of activities implemented jointly projects that bring about real, measurable and long-term environmental benefits related to the mitigation of climate change that would not have occurred in the absence of such activities.

  1. Estimated emissions without the activity (project baseline):

Description of the baseline or reference scenario, including methodologies applied:

System Boundary:

This AIJ project is a technical retrofit project. So the CO2 emission baseline is the current emission level based on the existing operation condition in Liaoyang Ferroalloy Refinery Works Group in absence of the AIJ project. According to the project specific baseline approach, the system boundary design for the AIJ project will be illustrated as in the Fig. 1.

The direct emission levels from major processes both in baseline case and the AIJ project are covered within the system boundary. The major processes relating to the energy conservation retrofitting in the AIJ project are following:

  1. Installing a Fe-Cr ore-palletizing facility which will result in coke and electricity saving in the refinery process;
  2. Installing a furnace cover system by which waste carbon monoxide (CO) gas emissions will be recovered in the refinery process;
  3. Recovered CO will be used as fuel in an industrial boiler to generate steam for industrial heating, which, otherwise, would be purchased from a local coal fired co-generation power plant;
  4. Meanwhile, additional electricity, steam and recovered CO will be used in the Fe-Cr ore-palletizing process and in the CO recovery process, which will result in less net emission reduction somehow.

Therefore, the technical and economic parameters, including energy efficiency and CO2 emission rate for both baseline case and the AIJ project could be identified as shown in the Fig.1 as following: (obtained from the LFG and the project proposal – submitted by Anshan Metallurgical Design and Research Institute, and NKK/Japan)

Figure 1: System boundary of the AIJ project in Liaoyang Ferroalloy Refinery Works Group

Image

The production capacity: 38,300 ton-FeCr/year (without change between baseline and AIJ),
  1. Unit electricity consumption: for baseline is 3676 kWh/ton-FeCr, for AIJ is 3384kWh/t-FeCr;
  2. Unit coke consumption: for baseline is 526 kg/ton-FeCr, which is in the form of bulk Fe ore with higher price at 132.9 US$/ton-Fe ore, and

    for AIJ is 477kg-Coke/ton-FeCr, which is in the form of powder Fe ore with lower price at 100.4 US$/ton-Fe ore;

    Comparing with AIJ project, more coke is wasted in baseline case at the emission rate of 526-477 = 49 kg/ton-FeCr;

  3. Fixed carbon rate in the coke: 83%
  4. Reaction gas emission rate: for baseline is 711 m3/ton-FeCr, and for AIJ is 635 m3/ton-FeCr in which the content of CO2 and CO are 7.57% and 84.48% respectively; Comparing with AIJ project, more gas is released in baseline case at the emission rate of 711-635 = 76 m3/ton-FeCr which mainly consists of CO2 emitted by those waste coke that are not involved in the oxygenating reduction reaction with Fe ore and eventually burnt into the air in the form of CO2;
  5. The effective thermal value of the recovered reaction gas emission in AIJ project is 2700 Kcal/Nm3 and converted into 0.385 kgce/Nm3;
  6. Energy efficiency for the coal fired co-generation boiler is 75 %, 150Kgce/ton-steam, and for the gas fired industrial boiler is 80%, 141Kgce/ton-steam;
  7. These part of steam purchased from cogeneration utility will be replaced by steam generated from industrial boiler fueled with recovered CO;
  8. Energy intensity of electricity supply in local grid is 400gce/kWh ;
  9. Calorific value of steam in Liaoyang’s heat supply pipeline is 113 kgce/ton-steam;

BASELINE (Calculation)

The baseline emission could be calculated based on three processes in baseline case, i.e. the Ferro-alloy refinery with bulk Fe ore, CO gas generation without recovery and steam generation from local coal fired co-generation power plant;

1. The CO2 emission from the Ferroalloy refinery works with bulk Fe ore:

In this process, CO2 emission is accrued from energy consumption of the electricity used in the electric furnace, from coke in its reaction with Fe-Cr ore and from the waste coke which will be saved otherwise in the AIJ project. So the CO2 emission EF can be calculated by the following formula:

EF = ? EFi = ? Di×F1i×F2i = 40067.94 ton-C/a +986.28 ton-C/a + 1557.66 ton-C/a = 42,611.88 ton-C/a = 156,243.56 t-CO2/a

where i: electricity, coke, and waste coke, respectively,

(1) CO2 emission from electricity, EFelec = Di×F1i×F2i , i = electricity

Delec= Annual consumption of electricity = production capacity × Unit electricity consumption

= 38300 ton-FeCr/a × 3676 kWh/ton-FeCr =1.4079 × 108kWh/a

F1elec = the energy efficiency of electricity generation = 0.400kgce/kWh;

F2elec = the emission factor of CO2 = 0.726´ 0.98=0.711kg-C/kgce-coal;

EFelec = 1.4079*108kWh/a ´ 0.400kgce/kWh ´ 0.711kg-C/kgce = 40067.94ton-C/a

(2) CO2 emission from coke in reaction with Fe ore, EFcoke = Di×F1i×F2i , i = coke

Dcoke = Annual reaction gas emission from coke in reaction with Fe ore

= production capacity × Unit gas emission rate, which is the same as that in the AIJ project, due to the same productive reaction process.= 38300t-CrFe/a × 635 gas Nm3/t-CrFe = 2432.05 × 104 gas Nm3/a

F1coke = the content of CO2 in the reaction gas = 7.57%

F2coke = the conversion factor for CO2 from volume to weight (in kg-C)

= 12kg/kmol/(22.4Nm3/kmol))

EFcoke = 2432.05 × 104 gas Nm3/a ´ 7.57%/(22.4Nm3/kmol)) ×12kg/kmol = 986.28ton-C/a

(3) CO2 emission from burning of waste coke without reaction with Fe ore,

EF wast coke = Di×F1i×F2i , i = waste coke

D wast coke = Annual waste coke consumption = production capacity × Unit waste coke consumption = 38300t-CrFe/a × (0.526-0.477) t-coke/t-CrFe = 1876.7 t-C

F1waste coke = the content of fixed carbon in the coke = 83%

F2waste coke = the conversion rate from waste coke to CO2 = 100%,

EFwaste coke = 1876.7 t-C ´ 83% × 100% = 1557.66 ton-C/a

2. The CO2 emission from the CO generation and burning without recovery:

In this process, CO emission is firstly generated in coke-Fe oxygenating reduction reaction and mixed with the reaction gas, and then burning without recovery. Similar to CO2 emission in 1. (2), those reaction gas emission is the same as that in the AIJ project, due to the same productive reaction process. So the CO2 emission ECO can be calculated as following:

ECO = Di×F1i×F2i , i = CO

DCO = Annual reaction gas emission from coke in reaction with Fe ore

= production capacity × Unit gas emission rate.

= 38300t-CrFe/a × 635 gas Nm3/t-CrFe = 2432.05 × 104 gas Nm3/a

F1CO = the content of CO in the reaction gas = 84.48%

F2CO = the conversion factor for CO from volume to weight (in kg-C)

= 12kg/kmol/(22.4Nm3/kmol))

ECO = 2432.05 × 104 gas Nm3/a ´ 84.48%/(22.4Nm3/kmol)) ×12kg/kmol = 11006.76 ton-C/a.

3. The CO2 emission from steam generation by local coal fired co-generation power plant

It should be noted that this amount of CO2 emission is accrued from those steam generation in the local co-generation utility, that will be replaced by net steam output to be generated by recovered CO in industrial boiler in the AIJ project. Here the net steam output should be less than gross steam output, due to the part of recovered CO will be used as fuel for heating in palletizing process, at the rate of 146 m3gas/T-FeCr, and the part of recovered steam will be used for CO recovery process, at the rate of 28.617 m3/ton FeCr .

(see AIJ project part for detail)

So the CO2 emission from steam generation equivalent to the net output from AIJ project,

Esteam can be calculated as following:

Esteam = Di×F1i×F2i = 4930.643 ton-C/a, i = steam

Dsteam: Annual consumption of steam generation equivalent

= production capacity × (unit steam output by net recovered CO in AIJ project – unit steam consumption for CO recovery process)

= 38300 t-CrFe/a × (635-164-28.617) m3gas/t-FeCr × 0.385 kgce/m3 × tce/1000kgce

× 80%/0.113 tce/ton-steam = 46181.34 ton-steam,

Here, we use the following parameters:

reaction gas CO emission rate = 635 m3/ton-FeCr,

recovered gas CO consumption rate for Fe-Cr ore-palletizing process = 164 m3/ton-FeCr,

equivalent CO consumption rate for heating in CO recovery process = 28.617 m3/ton- FeCr,

F1steam: the energy intensity of steam generation in cogeneration utility =150kgce/ton-steam

F2 steam: the emission factor of CO2 = 0.711kg-C/kgce;

E steam = 46181.34 t-steam ×150kgce/ton-steam ×0.711kg-C/kgce = 4925.24ton-C/a,

4. The total CO2 emission in baseline is:

42611.88 ton-C/a +11006.76 ton-C/a + 4925.24ton-C/a

= 58543.88 ton-C/a = 214660.9 t-CO2/a

2) Estimated emissions with the activity:

Description of the scenario, including methodologies applied:

AIJ PROJECT (Calculation)

The technical and economic parameters, including energy efficiency and CO2 emission rate for the AIJ project have been listed before. (obtained from the LFG, NKK and the project proposal – submitted by Anshan Metallurgical Design and Research Institute)

The CO2 emission could be calculated based on three processes in the AIJ project, i.e. the Fe-Cr ore-palletizing and Ferro-alloy refinery process with palletized Fe-Cr ore, CO gas recovery and steam generation from recovered CO gas.

1.The CO2 emission from the palletizing process and Ferro-alloy refinery process with palletized Fe ore

In this process, CO2 emission is accrued from energy consumption of the electricity used in the electric furnace, from coke in its reaction with Fe-Cr ore and from additional electricity and CO consumption for palletizing process in the AIJ project. So the CO2 emission EF can be calculated by the following formula:

EF = ? EFi = ? Di×F1i×F2i = 36885.33 ton-C/a +986.28 ton-C/a + 4040.87 ton-C/a = 41912.48 ton-C/a ,

where i: electricity, coke, and pallet, respectively,

(1) CO2 emission from electricity, EFelec = Di×F1i×F2i , i = electricity

Delec= Annual consumption of electricity = production capacity × Unit electricity consumption

= 38300 ton-FeCr/a ×3384 kWh/ton-FeCr = 1.29607 × 108kWh/a

F1elec = the energy efficiency of electricity generation = 0.400kgce/kWh;

F2elec = the emission factor of CO2 = 0.726´ 0.98=0.711kg-C/kgce-coal;

EFelec = 1.29607 *108kWh/a ´ 0.400kgce/kWh ´ 0.711kg-C/kgce = 36885.33 ton-C/a

(2) CO2 emission from coke in reaction with Fe ore, EFcoke = Di×F1i×F2i , i = coke

Dcoke = Annual reaction gas emission from coke in reaction with Fe ore

= production capacity × Unit gas emission rate.

= 38300t-CrFe/a × 635 gas Nm3/t-CrFe = 2432.05 × 104 gas Nm3/a

F1coke = the content of CO2 in the reaction gas = 7.57%

F2coke = the conversion factor for CO2 from volume to weight (in kg-C)

= 12kg/kmol/(22.4Nm3/kmol))

EFcoke = 2432.05 × 104 gas Nm3/a ´ 7.57%/(22.4Nm3/kmol)) ×12kg/kmol = 986.28ton-C/a

(3) CO2 emission from palletizing process,

EFpallet = ? Dj×F1j×F2j , j = electricity, CO, respectively

Delec = Annual consumption of electricity in palletizing process

= Production capacity × Unit electricity consumption for palletizing.

= 38300 ton- FeCr /a × 110 kWh/ ton- FeCr = 0.04213×108kWh/a,

Delec×F1elec×F2elec = 0.03353*108kWh/a ´ 0.400kgce/kWh ´ 0.711kg-C/kgce

= 1198.178 ton-C/a

DCO = Annual consumption of CO in palletizing process

= Production capacity × Unit CO consumption for palletizing process.

= 38300t-CrFe/a × 164 gas Nm3/t-CrFe = 628.12 × 104 gas Nm3/a

F1CO = the content of CO in the reaction gas = 84.48 %

F2CO = the conversion factor for CO2 from volume to weight (in kg-C)

= 12kg/kmol/(22.4Nm3/kmol))

DCO×F1CO×F2CO = 628.12× 104 gas Nm3/a ´ 84.48%/(22.4Nm3/kmol)) ×12kg/kmol= 2842.692 ton-C/a

EFpallet = 1198.178 ton-C/a + 2842.692 ton-C/a = 4040.87 ton-C/a

2. The CO2 emission from the CO gas recovery:

In this process, CO emission is firstly generated in coke-Fe oxygenating reduction reaction and mixed with the reaction gas, and then recovered without burning. The CO2 emission will be accrued by additional electricity and steam consumption for the CO recovery process. So we have

ECO = ? Dj×F1j×F2j = (544.626 + 496.03) ton-C/a = 1040.656 ton-C/a
j: the electricity and steam
Delec = Annual consumption of electricity = Production capacity × unit CO recovery × electricity intensity of the CO recovery
= 38300t-CrFe/a × 50 kWh/ t-CrFe = 1915000 kWh/a

= 826897 kWh/a,

Delec×F1elec×F2elec=1915000 kWh/a×0.400kgce/kWh×0.711kg-C/kgce-coal

= 544.626 ton-C/a

Dsteam = Annual consumption of equivalent CO in CO recovery process

= Production capacity × Unit CO consumption for CO recovery process.

= 38300t-CrFe/a × 28.617 gas Nm3/t-CrFe = 109.603 × 104 gas Nm3/a

F1steam = the content of CO in the reaction gas = 84.48 %

F2steam = the conversion factor for CO2 from volume to weight (in kg-C)

= 12kg/kmol/(22.4Nm3/kmol))

Dsteam×F1steam×F2steam= 109.603× 104 gas Nm3/a ´ 84.48%/(22.4Nm3/kmol)) ×12kg/kmol

= 496.03 ton-C/a

ECO = 544.626 ton-C/a +496.03 ton-C/a = 1040.656ton-C/a

3. The CO2 emission from steam generation by recovered CO as fuel

As mentioned in the baseline calculation, this amount of CO2 emission is accrued from net steam output generated by net recovered CO gas in industrial boiler in the AIJ project. Here the net recovered CO gas should be the gross recovered CO gas – that for heating in palletizing process, at the rate of 146 m3gas/T-FeCr – that steam equivalent for CO recovery process, at the rate of 28.617 m3/ton FeCr.

So the CO2 emission from the net output of steam generated by net recovered CO gas,

Esteam can be calculated as following:

Esteam = Di×F1i×F2i = 7667.99 ton-C/a, i = steam

Dsteam = Annual consumption of net CO recovered

= production capacity × (unit gross reaction gas recovery– unit reaction gas recovery used for palletizing and CO recovery process)

= 38300 t-CrFe/a × (635-164-28.617) m3gas/t-FeCr = 1694.3154 104m3/a

F1steam = the content of CO in the reaction gas = 84.48%

F2steam = the conversion factor for CO from volume to weight (in kg-C)

= 12kg/kmol/(22.4Nm3/kmol))

Esteam= 1694.3154×104 gas Nm3/a ´ 84.48%/(22.4Nm3/kmol))×12kg/kmol=7667.99 ton-C/a

Note: from energy balance point of view, we use the following parameters:

Unit gross reaction gas recovery = 635 m3/ton-FeCr,

Unit reaction gas recovery used for palletizing process = 164 m3/ton-FeCr,

Unit reaction gas recovery used for CO recovery process = 28.617 m3/ton- FeCr,

which is resulted from the following calculation:

Considering that, for CO recovery process, 0.9 t-steam/hr of heating is required for 5 months in Winter season, and production rate per furnace is 2.419 ton-FeCr/hr, then the unit steam consumption rate is 0.9 t-steam/ (2.419× 2) ton-FeCr = 0.078 t-steam/ ton-FeCr.

And considering 113 kgce/t-steam of steam’s thermal value, and 0.385 kgce/Nm3 of recovered CO gas’s thermal value, and 80% efficiency of the CO gas fired boiler, the unit CO intensity for steam generation is 113 kgce/t-steam / 0.385 kgce/Nm3 × 0.80 = 366.88 Nm3/ t-steam.

Therefore the unit reaction gas recovery used for CO recovery process = 366.88 ×0.078 = 28.617 m3/ton- FeCr.

4. The total CO2 emission in AIJ Project is:

41912.48 ton-C/a+1040.656ton-C/a +7667.99 ton-C/a
= 50621.126 ton-C/a = 185610.795 ton-CO2/a



The annual total CO2 emission reduction = 214.66 Kton-CO2/year– 185.611 Kton-CO2/year = 29.050 Kton-CO2/year

Fill in the following tables as applicable:

Summary table: Projected emission reductions (unit: 1,000 ton-CO2/year):

GHG 1998 1999 2000 2001 2002 2010

A) Project baseline scenario

CO2 214.66 214.66 214.66 214.66 214.66 214.66
CH4
N2O
Other

B) Project activity scenario

CO2 185.61 185.61 185.61
CH4
N2O
Other

C) Effect ( B-A )

CO2 -29.05 -29.05 -29.05
CH4
N2O
Other

D) Cumulative effect

CO2 -29.05 -58.10 -290.5
CH4
N2O
Other

F. Additionally to financial obligations of Parties included in Annex II to the Convention within the framework of the financial mechanism as well as to current official development assistance flows

Please indicate all sources of project funding a) .

Category of funding

(For each source one line)

Amount

(US dollars)

Subsidy for improving international energy use (Japanese national budget, which is sponsored by MITI). The funds are additional to Japanese GEF and current ODA budget.

9,942,000 US$ (1997FY-1998FY)

4,663,000US$ (1999FY-2000FY)

1US$ = 120 Japanese Yuan

a) Only refer to all those sources that were funded by MITI/Japan as Annex II country Party to the UNFCCC.

G. Contribution to capacity building, transfer of environmentally sound technologies and know-how to other Parties, particularly developing country Parties, to enable them to implement the provisions of the Convention. In this process, the developed country Parties shall support the development and enhancement of endogenous capacities and technologies of developing country Parties

Transfer of environmentally sound technologies and know-how

Describe briefly
Transfer of energy efficient electric furnace equipment and pelletizing plant as well as their know-how technology for Ferroalloy refinery in the Liaoyang Ferroalloy Works Group

By installing pelletizing plant, CO gas recovery system, and furnace cover at Liaoyang Ferroalloy Works, this project demonstrates:

  1. Reduction in electric power consumption
  2. Reduction in coke consumption
  3. Recovery of CO gas as fuel
  4. Reduction in dust emission
Capacity Building

By implementing the project, following capacity building can be attained:

  1. Project management
  2. Operation of the pelletizing plant
  3. Operation of CO gas recovery system



H. Additional comments, if any, including any practical experience gained or technical difficulties, effects, impacts or other obstacles encountered

Fill in as appropriate:

1) Any practical experience gained:

Since the Project is a Model Project, dissemination activity of the technology through demonstration operation is planned in the final stage of overall project schedule. A large effect of energy conservation and environmental improvement is expected through dissemination of the technology in the future

2) Technical difficulties:

Meanwhile the technical difficulties in determining the system boundary are encountered.

3) Negative impacts and/or effects encountered:

4) Other obstacles encountered:

5) Other:

Suggestion: Personnel training

(1) The key staff member of the plant will be educated to enhance their public awareness on the CO2 emission mitigation, climate change and AIJ pilot phase under UNFCCC.

(2) The professional training will be done for the technical engineers and workers who will be involved in the monitoring tasks.

The training course could be given three months in advance of the plant’s putting into operation.

Attachment

Table 1. The cost-benefits analysis on CO2 emission reduction in AIJ Pilot Project :

Energy conservation of Liaoyang Ferroalloy Group

Item

Unit Data

Project scale: Palletizing of Fe ore

Ton/year 70000

Project scale: Fe-Cr Production

Ton/year 38300

Waste gas recovered

MNm3/y 24

Total investment cost

MUS$ 24.77

Discount rate

% 10

1. Heat supply in baseline: Steam from local CHP power plant

Energy efficiency of heat supply in baseline

% 75
  • Energy efficiency of heat supply in AIJ
% 80
  • Unit heat supply cost in baseline
US$/T-steam 9.19
  • Steam demand in baseline
Ton/year 46200

2. Electricity supply in baseline same as in AIJ

Liaoning Grid

Energy efficiency of electricity supply

gce/Kwh 400

Electricity price

US$/Kwh 0.0423

Electricity demand in baseline

Kwh/T-FeCr 3676

Electricity demand in AIJ

Kwh/T-FeCr 3384

3. Coke consumption in baseline

Ton/T-FeCr 0.526

Coke consumption in AIJ

Ton/T-FeCr 0.427

Coke price

US$/Ton 47.64

Incremental cost per unit

US$/T-C 83.1

CO2 emission reduction

US$/T-CO2 22.64

Annual CO2 emission reduction by the AIJ project

KT-C/year 7.92
KT-CO2/year 29.05

Annual incremental expense for CO2 emission reduction

MUS$/year 0.66

Present value of Incremental expense on CO2 emission reduction over AIJ project life time

MUS$ 5.62

Total CO2 emission reduction over AIJ project life time (discounted)

KT-C 67.5
KT-CO2 247.5
Emission reduction and its incremental cost calculated by equivalent static approach

Equivalent static incremental cost

US$/T-C 35.4

per unit CO2 reduction

US$/T-CO2 9.6

Total CO2 emission reduction over AIJ project life

KT-C 159

time, physical amount, no discount

KT-CO2 581

4. The total CO2 emission in baseline is:

42611.88 ton-C/a +11006.76 ton-C/a + 4925.24ton-C/a

= 58543.88 ton-C/a = 214660.9 t-CO2/a

AIJ PROJECT (Calculation)

The technical and economic parameters, including energy efficiency and CO2 emission rate for the AIJ project have been listed before. (obtained from the LFG, NKK and the project proposal – submitted by Anshan Metallurgical Design and Research Institute)

The CO2 emission could be calculated based on three processes in the AIJ project, i.e. the Fe-Cr ore-palletizing and Ferro-alloy refinery process with palletized Fe-Cr ore, CO gas recovery and steam generation from recovered CO gas.

1.The CO2 emission from the palletizing process and Ferro-alloy refinery process with palletized Fe ore

In this process, CO2 emission is accrued from energy consumption of the electricity used in the electric furnace, from coke in its reaction with Fe-Cr ore and from additional electricity and CO consumption for palletizing process in the AIJ project. So the CO2 emission EF can be calculated by the following formula:

EF = ? EFi = ? Di×F1i×F2i = 36885.33 +986.28 + 3796.28 (4040.87) ton-C/a = 41667.89 (41912.48) ton-C/a ,

where i: electricity, coke, and pallet, respectively,

(1) CO2 emission from electricity, EFelec = Di×F1i×F2i , i = electricity

Delec= Annual consumption of electricity = production capacity × Unit electricity consumption

= 38300 ton-FeCr/a ×3384 kWh/ton-FeCr = 1.29607 × 108kWh/a

F1elec = the energy efficiency of electricity generation = 0.400kgce/kWh;

F2elec = the emission factor of CO2 = 0.726´ 0.98=0.711kg-C/kgce-coal;

EFelec = 1.29607 *108kWh/a ´ 0.400kgce/kWh ´ 0.711kg-C/kgce = 36885.33 ton-C/a

(2) CO2 emission from coke in reaction with Fe ore, EFcoke = Di×F1i×F2i , i = coke

Dcoke = Annual reaction gas emission from coke in reaction with Fe ore

= production capacity × Unit gas emission rate.

= 38300t-CrFe/a × 635 gas Nm3/t-CrFe = 2432.05 × 104 gas Nm3/a

F1coke = the content of CO2 in the reaction gas = 7.57%

F2coke = the conversion factor for CO2 from volume to weight (in kg-C)

= 12kg/kmol/(22.4Nm3/kmol))

EFcoke = 2432.05 × 104 gas Nm3/a ´ 7.57%/(22.4Nm3/kmol)) ×12kg/kmol = 986.28ton-C/a

(3) CO2 emission from palletizing process,

EFpallet = ? Dj×F1j×F2j , j = electricity, CO, respectively

Delec = Annual consumption of electricity in palletizing process

= Palletizing capacity × Unit electricity consumption

(= Production capacity × Unit electricity consumption for palletizing.)

= 70000 ton-pallet Fe ore/a × 47.9 kWh/ton- pallet Fe ore = 0.03353×108kWh/a,

(= 38300 ton- FeCr /a × 110 kWh/ ton- FeCr = 0.04213×108kWh/a,)

Delec×F1elec×F2elec = 0.03353*108kWh/a ´ 0.400kgce/kWh ´ 0.711kg-C/kgce

= 953.59 (1198.178) ton-C/a

DCO = Annual consumption of CO in palletizing process

= Production capacity × Unit CO consumption for palletizing process.

= 38300t-CrFe/a × 164 gas Nm3/t-CrFe = 628.12 × 104 gas Nm3/a

F1CO = the content of CO in the reaction gas = 84.48 %

F2CO = the conversion factor for CO2 from volume to weight (in kg-C)

= 12kg/kmol/(22.4Nm3/kmol))

DCO×F1CO×F2CO = 628.12× 104 gas Nm3/a ´ 84.48%/(22.4Nm3/kmol)) ×12kg/kmol

= 2842.692 ton-C/a

EFpallet = 953.59 (1198.178) + 2842.692 = 3796.28 (4040.87) ton-C/a

2. The CO2 emission from the CO gas recovery:

In this process, CO emission is firstly generated in coke-Fe oxygenating reduction reaction and mixed with the reaction gas, and then recovered without burning. The CO2 emission will be accrued by additional electricity and steam consumption for the CO recovery process. So we have

ECO = ? Dj×F1j×F2j = (235.169 (544.626 ) + 496.03) ton-C/a = 731.20 (1040.656) ton-C/a

j: the electricity and steam

Delec = Annual consumption of electricity = Production capacity × unit CO recovery × electricity intensity of the CO recovery

= 38300t-CrFe/a × 635 CO gas Nm3/t-CrFe ×340kWh/104m3-CO gas

(= 38300t-CrFe/a × 50 kWh/ t-CrFe = 1915000 kWh/a)

= 826897 kWh/a,

Delec×F1elec×F2elec=826897 (1915000)kWh/a×0.400kgce/kWh×0.711kg-C/kgce-coal = 235.169 (544.626) ton-C/a

Dsteam = Annual consumption of equivalent CO in CO recovery process

= Production capacity × Unit CO consumption for CO recovery process.

= 38300t-CrFe/a × 28.617 gas Nm3/t-CrFe = 109.603 × 104 gas Nm3/a

F1steam = the content of CO in the reaction gas = 84.48 %

F2steam = the conversion factor for CO2 from volume to weight (in kg-C)

= 12kg/kmol/(22.4Nm3/kmol))

Dsteam×F1steam×F2steam= 109.603× 104 gas Nm3/a ´ 84.48%/(22.4Nm3/kmol)) ×12kg/kmol

= 496.03 ton-C/a

ECO = 235.169 (544.626) ton-C/a +496.03 ton-C/a = 731.20 (1040.656)ton-C