Name of organization:

Name of organization (English):

New Energy and Industrial Technology Development Organization

Department:

International Cooperation Center

Acronym:

Acronym (English):

NEDO

Function within activity:

(standard classifiers to be developed)

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):

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

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

Name of organization:

Name of organization (English):

NKK Corporation

Department:

Engineering Division

Acronym:

Acronym (English):

NKK

Function within activity:

(standard classifiers to be developed)

Street:

2-1, Suehiro-cho, Tsurumi-ku

Post code:

230-8611

City:

Yokohama

Country:

Japan

Telephone:

81-45-505-7810

Fax:

81-45-505-7617

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 Manger

Direct tel:

81-45-505-7810

Direct fax:

81-45-505-7617

Direct E-mail:

ishiia@eng.tsurumi.nkk.co.jp

Name of organization:

Name of organization (English):

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

Department:

Department of Social Development

Acronym:

Acronym (English):

MOST

Function within activity:

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):

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

Surname:

Lu

First name, middle name:

Xuedu

Job title:

Direct tel:

86 10 68514054

Direct fax:

86 10 68512163

Direct E-mail:

lvxd@cs.sstc.gov.cn

Name of organization:

Name of organization (English):

The State Development Planning Commission

People’s Republic of China

Department:

Department of Raw and Processed Materials Industries and Resources Utilization

Acronym:

Acronym (English):

SDPC

Function within activity:

(standard classifiers to be developed)

Street:

38S 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):

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

Surname:

First name, middle name:

Job title:

Direct tel:

Direct fax:

Direct E-mail:

Name of organization:

Name of organization (English):

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

Department:

Acronym:

Acronym (English):

SMIB

Function within activity:

(standard classifiers to be developed)

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):

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

Surname:

First name, middle name:

Job title:

Direct tel:

Direct fax:

Direct E-mail:

Item

Name of organization:

Name of organization (English):

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

Department:

Acronym:

Acronym (English):

PCLP

Function within activity:

(standard classifiers to be developed)

Street:

No.45 Beiling 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):

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

Surname:

First name, middle name:

Job title:

Direct tel:

86-24-86892584

Direct fax:

86-24-86893853

Direct E-mail:

Item

Name of organization:

Name of organization (English):

LIAOYANG FERROALLOY WORKS GROUP

Department:

Acronym:

Acronym (English):

LFG

Function within activity:

(standard classifiers to be developed)

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.ln.cn

WWW-URL:

Contact person (for this activity):

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

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

Name of organization:

Name of organization (English):

Tsinghua University

Department:

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

Acronym:

Acronym (English):

INET/ITEESA

Function within activity:

(standard classifiers to be developed)

Street:

Tsinghua Yuan Street, Haidian District

Post code:

100084

City:

Beijing

Country:

The People’s Republic of China

Telephone:

86-10-6277-2752 or 86-10-6278-3655

Fax:

86-10-6277-1150

E-mail:

Liuds@tsinghua.edu.cn

WWW-URL:

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

Contact person (for this activity):

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

Surname:

Liu

First name, middle name:

Deshun

Job title:

Professor

Direct tel:

86-10-6277-2752 or 86-10-6278-3655

Direct fax:

86-10-6277-1150

Direct E-mail:

Liuds@tsinghua.edu.cn

General description :

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

Type of project :

Energy efficiency

Location (exact, e.g. city, region,

State):

No.21 Zhenxing Road Liaoyang

Liaoning, 111004, The People’s Republic of China

Activity starting date:

September, 1998

Expected activity ending date:

March, 2001

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 49 kg/ton-FeCr.
3. 471 Nm3-CO/ton-FeCr is expected to be recovered as fuel, however, of which 24 Nm3 shall be consumed as equipment heating energy.

   Therefore, 447 Nm³-CO/ton-FeCr will replace boiler fuel equivalent to 5,859 ton-coal/year.

4. Calorific value of the gas will be 2700kcal/Nm³.
5. CO₂ emission is then expected to be reduced by29,200 ton/year.

Cost of the project in US$:

AIJ component in US$:

US$ per avoided ton of CO2 equivalent**:

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

NEDO concluded with NKK CO. to trust to execute Japanese scope of this project in September 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 data, which will be necessary for the subsequent report such as unit electricity consumption, unit coke consumption, total amount of recovery furnace gas , etc., for the reporting period.

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

After examining the data and reaching an agreement between governments, each of them submit the subsequent report to UNFCCC, respectively.

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

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

The Ministry of Science and Technology, People’s Republic of China (MOST) confirmed this project as Activity Implemented Jointly (AIJ) under pilot phase on July 9, 1999.

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

In China, strong national policy for energy conservation and environmental protection has been set, and relating laws have come into effect.

The objective of the Project is to contribute to efficient use of energy and consequently protection of the environment in China, therefore, the activity is compatible with and supportive of national economic development and socio-economic environment priorities and strategies.

Describe environmental benefits in detail:

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

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

Do quantitative data exist for evaluation of environmental benefits?

Yes, CO2 emission is evaluated to be reduced by 29,200 ton-CO₂ / year.

Describe social/cultural benefits in detail:

Technical transferring effect to the People’s Republic of China.

1. Project management method
2. Management of pelletizing plant operation including pellet size control
3. Management and operation of CO gas recovery system

Do quantitative data exist for evaluation of social benefits?

No

Describe economic benefits in detail:

1. Electric power consumption will be reduced.
2. Unit coke consumption will be reduced.
3. CO gas will be recovered from the electric furnace as fuel, and can replace the fuel used for boiler which generate steam used for TiO₂production process and heating in winter.
4. Raw material cost can be reduced by utilizing pellets made of fine chromium ore.
5. Increase in employment for erection work is expected.

   Increase in employment for operation and maintenance of the pelletizing equipment is expected.

Do quantitative data exist for evaluation of economic benefits?

Quantitative data exist for evaluation of economic benefits for 1, 2, 3, and 4 above.

(Baseline)

Baseline CO₂ emission can be estimated using current operation parameters, such as unit consumption of electricity and cokes, i.e., unit consumption before the execution of the Project. Each of current unit consumption was obtained when Japanese mission visited at Liaoyang Ferroalloy Works in 1997 and in April 1998.

- Premise 1: The production capacity of furnaces does not change before and after the

Project.

Production capacity: 38,300 ton-FeCr / year

- Premise 2: The following unit consumption is everlasting before and after the Project. Unit electricity consumption : 3888 kWh / ton-FeCr Unit consumption of coke: 526kg / ton-FeCr

- Premise 3: The use of coal as a fuel for the steam boiler, which generates steam for

the TiO₂ production process and heating, is everlasting. And coal which is equivalent to a calorie of recovered CO gas, is consumed as the fuel.

Recovered CO gas used for steam boiler : 471 Nm3 / ton-FeCr

Calorific figure of CO gas : 2700 kcal / Nm3

- Premise 4: Grid Electricity

Coefficient of energy conversion between electricity and primary fuel, coal, does not change for the period of the project (20 years).

Energy intensity for electricity supply by the grid: 400 gce/kWh

?Dynamic analysis using a firm plan for grid electricity could be employed if applicable data are given by Chinese side.

- Premise 5: Coke Production

Effect for coke production shall not be considered in this project, and shall be out of the project boundary until the process to be made clear and defined.

Because it is necessary more energy of 600,000kcal/t-coal in coke production.

Methodology:

1. Production capacity of Liaoyang Ferro-alloy Works is assumed to be 38,300 ton-FeCr per year, and current unit consumption of electricity and cokes are estimated from the data obtained from Liaoyang Ferroalloy Works.
2. Current unit electricity consumption expressed in unit consumption is converted into equivalent amount of coal, and cokes unit consumption is converted into equivalent amount of fixed carbon in it.

   (kWh/ton-Fe-Cr ’ ton-coal/ton-Fe-Cr, kg/ton-Fe-Cr ’ kg-carbon/ton-Fe-Cr)

3. CO2 emission is calculated according to basic calculation designated by IPCC (Intergovernmental Panel on Climate Change) Guidelines for National Greenhouse Gas Inventories : Reference Manual/1.4.1 "Approaches For Estimating CO2 emitted."
4. 4. As for fuel consumption of the existing boiler, boiler fuel which will be replaced by the recovered CO gas after the completion of the Project, shall be counted in this baseline so that energy saving by the recovered gas can be estimated. (Recovery gas is expected to produce steam of seven tons per hour in spite of the existing boiler’s capacity of 10 tons per hour.)

(Calculation)

1. Estimate electricity consumption, and cokes by fuel product type.
2. Convert the fuel data into equivalent amount of coal.
3. Select carbon emission factors for each fuel product type and estimate the total carbon content of the fuels.
4. Converting emissions as carbon to full molecular weight of CO₂.

Namely,

i. Annual consumption of fossil fuel (coal basis) "a" is derived by using actual average data on unit electricity consumption, cokes unit consumption of the furnace, and estimation of utilizing recovery CO gas for a boiler.

1. "a" × Carbon Emission Factor (CEF) = "b"
2. "b" × Fraction of Carbon Oxidized = "c"
3. The amount of carbon stored in products for long period of time is estimated to be 2834 ton per year as fixed carbon, i.e. unit consumption of 74.0 kg/t .
4. "c" × Ratio of Molecular Weight of CO₂ and C = "c" × 44/12
5. The result obtained above gives annual CO2 emission from the furnace

(Results)

1) Conversion from electricity to coal:

a1 = 38,300 ton-FeCr/y x 3888 kWh/ton-FeCr x 400 gce/kWh / 1,000,000

= 59,564 ton-coal/year

Accordingly, annual CO2 emission is estimated as follows:

CO₂ emission (ton/year)= £a (Energy Conservation ,ton-coal/year)

x Carbon Emission Factor (0.726kg-carbon/kg-coal)

x Fraction of Carbon Oxidized (0.98 IPCC Table I-6)

x 44 / 12 (CO₂ /C ratio)

=59,564× 0.726 × 0.98 × 44/12 = 155,400 ton/year

Conversion from cokes to CO₂ :

a2 = 38,300 ton-FeCr/y x 526 kg-Coke/t-FeCr /1,000

= 20,146 ton-coke/year

Where, fixed carbon rate in coke = 83%; therefore,

a2(CO₂ )= CO₂ emission (ton/year)= 20,146 ton-coke/year x 0.83 x 44/12

= 61,300 ton/year

3) Conversion fuel gas for boiler:

Amount shall be equivalent to recovery CO gas for the use of boiler.

Unit gas production of 635 Nm3-CO/ton-FeCr is expected by closed furnace, on the other hand 164 Nm3-CO/ton-FeCr to be consumed for pellet hardening, and 24 Nm3-CO/t-FeCr for equipment warming by using generated steam.

Therefore, the balance shall be saved as coal;

a3= 38,300 ton-FeCr/y x (635 - 164- 24) Nm3-CO/ton-FeCr x 0.385kgce/CO-Nm3

/1,000 x 80%/75% = 7,030 ton-coal/year

Where, 80%/75% means heat efficiency, 80% is for Liaoyang Ferro-Alloy Group’s boiler and 75% is for Liaoyang City Heat Shop’s boiler.

Accordingly, annual CO₂ emission is estimated as follows:

CO2 emission (ton/year)=7,030 ton-coal/year x 0.726 x 0.98 x 44/12 = 18,300

Total £a (CO2)= 155,400 + 61,300 + 18,300 = 235,000 ton/ year

(Concept)

By installing furnace cover, CO gas recovery system and a pelletizing plant, unit electricity consumption of the furnace is expected to be reduced from 3,888 kWh/ton-FeCr to 3,596 kWh/ton-FeCr, however, additional equipment, mainly palletizing equipment and utility supply facilities, consumes about 160 kWh/ton-FeCr. Therefore, 132 kWh/ton-FeCr of electricity unit consumption is expected to be reduced for every ton of ferro-chromium production.

With CO gas recovery system, 635 Nm³ of CO gas will be recovered for every ton of ferro-chromium production. Out of 635 Nm³ of CO gas, 164 Nm³ will be used for Annular Kiln and 471 Nm³ can be used for the boiler. Then, steam of 0.9 ton/t-FeCr out of generated steam is consumed for equipment heating during five (5) months in winter season, which is converted into CO gas of 24 Nm³/t-FeCr.

Those reduction in electricity consumption, recovery of CO gas, and reduction of cokes consumption lead to reduction of CO₂ .

:

(Calculation)

Methodology: the same as baseline CO₂ emission calculation.

(Results)

1) Conversion from electricity to coal:

a1 = 38,300 ton-FeCr/y x 3756/ton-FeCr x 400 gce/kWh / 1,000,000

= 57,540 ton-coal/year

Accordingly, annual CO₂ emission is estimated as follows:

a1(CO2) =a1 (Energy Conservation ,ton-coal/year)

x Carbon Emission Factor (0.726kg-carbon/kg-coal)

x Fraction of Carbon Oxidized (0.99 IPCC Table I-6)

x 44 / 12 (CO2/C ratio)

= 57,540 x 0.726 x 0.98 x 44/12 = 150,100 ton-CO₂ /year

2. Conversion from cokes to CO₂:

a2 = 38,300 ton-FeCr/y x 477 kg-Coke/t-FeCr /1,000

= 18,300 ton-coke/year

Where, fixed carbon rate in coke = 83%; therefore,

a2(CO₂)= CO₂ emission (ton/year)= 18,300 ton-coke/year x 0.83 x 44/12

= 55,700 ton/year

3)Conversion fuel gas for boiler: a3= 0

Accordingly, the total of annual CO₂ emission is estimated as follows:

Total £a (CO₂) = 150,100+ 55,700 + 0 = 205,800 ton-CO₂/year

A) Project baseline scenario

B) Project activity scenario

C) Effect ( B-A )

D) Cumulative effect

(For each source one line)

(US dollars)

Subsidy for improving international energy use (Japanese national budget which is undertaken byMITI )

Own Capital (prepared by Chinese side)

Transfer of energy saving technology and clean gas recovery technology in Electric Furnace used in Ferro-alloy refining.

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. Management and operation of CO gas recovery system

• 1. Since the technology has been successfully applied at NKK Toyama Works for more than twenty years, enough practical and commercial experience has been already compiled, therefore, the technology is highly reliable. Thus, no technical difficulty exists.

  2. In the course of the second design meeting (99.01.26 - 99.02.04) in Japan, it was pointed out that the on-load tap changer equipped for the existing furnace might fail to cause adverse effect to the performance of the project. It was clearly understood that the Chinese side shall take necessary measures to avoid this unwanted failure of on-load tap changer.

Describe environmental negative impacts/effects in detail:

No environmental negative impacts/effects are expected so far.

Do quantitative data exist for evaluation of environmental negative impacts/effects?

No.

Describe social/cultural negative impacts/effects in detail :

No social/cultural negative impacts/effects are expected so far.

Do quantitative data exist for evaluation of social negative impacts/effects?

No, so far.

Describe economic negative impacts/effects in detail :

No economic negative impacts/effects are expected so far.

Do quantitative data exist for evaluation of economic negative impacts/effects?

No, so far.

1USD =

8.27

RMB

Discount rate

10

The capital investment for the plant

18,107

21,895

Equipment Life

20

The return investment per year (A)

2,127

2,572

Operating cost per year after Modification (B)

13,825

16,717

Total cost (A+B)

15,952

19,289

Cost for Baseline Case ( C )

15,735

19,027

Net incremental cost ( A+B-C)

217

262

Production amount of FeCr

38,300

Production amount of Pellet

70,000

Reduction of CO2 ^*1)

29,504

Cost increase by CO2 Reduction

9