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ACTIVITIES IMPLEMENTED JOINTLY(AIJ)
 

Uniform Reporting Format:

Activities Implemented Jointly Under the Pilot Phase

CFBC & CHP Project in Shangqiu Thermal Power Plant in Henan Province of China
Submitted by P. R. China
UNIFORM REPORTING FORMAT:
ACTIVITIES IMPLEMENTED JOINTLY UNDER THE PILOT PHASE

List of Projects

A. Description of project

  1. Title of project:

CFBC & CHP Project in Shangqiu Thermal Power Plant, Henan Province of China

2) Participants/actors:

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

Item Please fill in if applicable

Name of organization(a):

Name of organization (English):

Norwegian Royal Ministry of Foreign Affairs

Department:

Acronym:

Acronym (English):

Function within activity:

Designated National Authority on Norwegian side in charge of negotiation and approval as well as financing for AIJ project cooperation with non Annex I countries.

Street:

Post code:

City:

Country:

Telephone:

Fax:

47-22-24-95-81

E-mail:

WWW-URL:

Contact person (for this activity):

Ms. Marte Gerhardsen

Surname:

Gerhardsen

First name, middle name:

Marte

Job title:

Direct Tel.:

Direct fax:

Direct E-mail:

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):

Lu Xuedu

Surname:

Lu

First name, middle name:

Xuedu

Job title:

Direct Tel:

86 10 68514054

Direct fax:

86 10 68512163

Direct E-mail:

Lvxd@mail.most.gov.cn

Item

Please fill in if applicable

Name of organization(a):

Name of organization (English):

Shangqiu Electric Power-Aluminum Group Co. Ltd.

Department:

Shangqiu Thermal Power Plant

Acronym:

Acronym (English):

SEPAG

Function within activity:

The owner and executive entity of the project.

Street:

No. 251, Qingnian Road

Post code:

476000

City:

Shangqiu, Henan Province

Country:

The People's Republic of China

Telephone:

86 0370 2806669

Fax:

86 0370 2806673

E-mail:

Guohaijun@public2.zz.ha.cn

WWW-URL:

www.shangdianlvye.com

Contact person (for this activity):

Guo Haijun

Surname:

Guo

First name, middle name:

Haijun

Job title:

Chairman and General Manager

Direct Tel:

86 0370 2806669

Direct fax:

86 0370 2806673

Direct E-mail:

Guohaijun@public2.zz.ha.cn

Item Please fill in if applicable

Name of organization(a):

Name of organization (English):

SuiYang District Government of Shangqiu city

Department:

Acronym:

Acronym (English):

Function within activity:

Local investor and administrative support

Street:

Post code:

City:

Shangqiu

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

Please fill in if applicable

Name of organization(a):

Name of organization (English):

China Energy Conservation Investment Company

Department:

Department of Planning

Acronym:

Acronym (English):

CECIC

Function within activity:

Financing service, and technical consultation on engineering and equipment.

Street:

Shichuan Daxia, No. 1 Fuwai Dajie Road

Post code:

100037

City:

Beijing

Country:

The People's Republic of China

Telephone:

86 10 68364930

Fax:

86 10 68364915

E-mail:

d-cecic@info.iuol.cn.net

WWW-URL:

Contact person (for this activity):

Mr. Guo Jiang

Surname:

Guo

First name, middle name:

Jiang

Job title:

Project Manager

Direct Tel:

86 10 68364930

Direct fax:

86 10 68364915

Direct E-mail:

d-cecic@info.iuol.cn.net

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.

Item

Please fill in if applicable

Name of organization(a):

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:

Technical consultation on the project development and implementation of AIJ project

Street:

Qinghua Yuan, Haidian District

Post code:

100084

City:

Beijing

Country:

The People's Republic of China

Telephone:

86-10-62772752 or 86-10-62783655

Fax:

86-10-62771150

E-mail:

liuds@tsinghua.edu.cn

WWW-URL:

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

Contact person (for this activity):

Prof. Liu Deshun

Surname:

Liu

First name, middle name:

Deshun

Job title:

Professor, Deputy Director of Global Climate Change Institute, Tsinghua University

Direct Tel:

86-10-62772752, 62783655

Direct fax:

86-10-62771150

Direct E-mail:

liuds@tsinghua.edu.cn

3) Activity:

Item Please fill in if applicable

General description :

In the AIJ project, 3~ 75t/h CFBC* boilers and 2~12 MW CHP power generation units will be installed in the Shangqiu Thermal Power Plant to replace local old and low efficient coal fired industrial boilers, while meeting existing and increasing heat demand by industrial heat load plus space heating load. Moreover the CHP plant will meet the new electric power demand by Shangqiu Aluminum Refinery Plant. Thus, with higher energy efficiency in heat and electricity supply by CFBC/CHP, coal fuel could be saved and then CO2 emission will be reduced effectively.

Type of project :a)

Energy efficiency

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

Shangqiu Thermal Power Plant, Shangqiu, Henan Province, China

Activity starting date:

May 2000, when AIJ project begin in operation

Expected activity ending date:

October 2020, when operation lifetime is due.

Stage of activity: b)

Mutually approved by both government and under the project construction stage

Lifetime of activity if different from ending date: c)

20 Year (* Suppose static baseline, so the lifetime of AIJ activity is set as project operation lifetime)

Technical data: d)

Project scale: 3L 75t/h heat capacity + 2L 12MW CHP power caapcity, in which:

Boilers: 3 sets of CFBC 75T/h (68.9MW) boilers with 89.5% efficiency, steam parameter: 5.29 Mpa/450‹ C, De-SO2 rate: 80-85%.

Turbines: 2 units of 12 MW Sub-high pressure single extraction condenser turbine; inlet steam parameter: 4.9 Mpa/435‹ C, parameter of steam extraction: 0.98 Mpa/ 272‹ C, 50 t/h (45.9MW) to max. 80 t/h (73.5MW).

Generators: 2 units of 12MW generator, power factor 0.8, outlet voltage 6.3 KV.

Annual heat supply: 1,316,420 GJ/yr.,

Annual electricity supply: 118.75 Gwh/yr.,

Annual energy saving: 32.91 Ktce/year,

Annual CO2 mitigation: 23.86 KT-C/year,

Total CO2 emission reduction over life time, physical amount: 0.47 MT-C, or 1.75 MT-CO2

a) For example, using Intergovernmental Panel on Climate Change (IPCC) classification: energy efficiency; renewable energy; fuel switching; forest preservation, restoration or reforestation; afforestation; fugitive gas capture; industrial processes; solvents; agriculture; waste disposal or bunker fuels.

b) Circle the appropriate option.

c) Methodological work will be required to define lifetime of activities.

d) Methodological work will be required to determine for each type of activity what the minimum data requirements are.

4) Cost (to the extent possible): 1US$=8.31 Chinese RMB; Base year: 1995

Share of Financing Contribution to the AIJ Project
Item Amount Chinese share Norwegian share
104yuan MUS$ 104yuan MUS$ 104yuan MUS$

Total capital investment, where

22001.5

26.48

18262.0

21.98

3739.5

4.5

i) Static capital investment

17832.5

21.46

14093.0

16.96

3739.5

4.5

Equipment cost

7181.5

8.64

3442.0

4.14

3739.5

4.5

Construction cost

5365.0

6.46

5365.0

6.46

0

Installation cost

3071.0

3.70

3071.0

3.70

0

Other cost

2215.0

2.67

2215.0

2.67

0

ii) Dynamic investment

3316

3.99

3316.0

3.99

0

Preparation for inflection

1137.0

1.37

1137.0

1.37

0

Loan interest in construction

2106.0

2.53

2106.0

2.53

0

Capital investment tax

14.0

0.02

14.0

0.02

0

Working Capital

59.0

0.07

59.0

0.07

0

iii) Power Connecting

300.0

0.36

300.0

0.36

0

iv) Thermal Power Pipeline

553.0

0.67

553.0

0.67

0

Expense for AIJ activities

415.5

0.5

415.5

0.5

i) AIJ project development

83.1

0.10

83.1

0.1

ii) AIJ project Management (MVR)

124.7

0.15

124.7

0.15

iii) AIJ methodology and policy study

83.1

0.10

83.1

0.1

iv) Capacity building, AIJ pilot phase

83.1

0.10

83.1

0.1

v) Administrative management, 10%

41.6

0.05

41.6

0.05

Total investment for AIJ project

22417.0

26.98

18262.0

21.98

4155.0

5

Item 1999 2000 Total

Cost of the project in MUS$:

Norwegian shared

1.616

3.384

5.00

Chinese shared

12.22

9.76

21.98

AIJ component in MUS$:

Norwegian shared

1.616

3.384

5.00

Chinese shared

12.22

9.76

21.98

US$ per avoided ton of CO2*

15.02

*: It is defined here as life cycle levelized incremental cost for CO2 emission reduction against the baseline, see Table 1 of results in detail in Attachment and formula in Annex.

5) Mutually agreed assessment procedures:

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

China and Norway agreed to start the cooperation on AIJ project in January, 1996.

SSTC and Norwegian Royal Ministry of Foreign Affairs signed the MOU to consider the Shangqiu Thermal Power Plant as an AIJ pilot project on September 20, 1997.

MOST (former SSTC) and Norwegian Royal Ministry of Foreign Affairs signed the formal agreement on Shangqiu Thermal Power Plant as an AIJ pilot project on November 17, 1998.

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;
  1. 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 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:

The MOU to consider CFBC/CHP Project in Shangqiu Thermal Power Plant as Sino-Norway cooperation in AIJ Pilot Phase under UNFCCC, has been signed by Chinese and Norwegian government. Then both governments have signed the formal cooperation document.

2) This report is a joint report:

  • Yes, forward copy of agreement/endorsement by the designated national authorities involved
    Error! Bookmark not defined.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 basic technical data were preliminary checked by Chinese experts. The environmental benefits, 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 guidelines the results reported here are 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

Development of CFBC and CHP have been listed in the national key technology renovation plan for energy saving in industrial and electric power sectors, and is also the important measure to be taken by the national urban sustainable development strategy and Chinafs Agenda 21. So this CFBC/CHP AIJ project must be supportive of the national environment and development strategies and priorities in China.

Given the advantage of CHP in socio-economic and environmental benefits, the national district heating development planning pay high attention to CHP development by installing 2 GW of new CHP capacity annually up to 2000. Therefore as mentioned in the project final document, there are large market potentials for small CFBC/CHP project development. And promotion of CHP development by the AIJ project will certainly contribute to the sustainable development of urban district heating in China.

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:

Emission of SOx, NOx, soot and smoke are reduced by the CFBC technology and the reduction of fuel consumption.

The reverse osmosis desalination device is planned to be equipped with this project for pre-desalination of the distributed water. This device is disseminated widely in China, its application will greatly lengthen the regenera-tion circulating period of the traditional ion-exchange device, and decrease the loss of distributed water. At the same time, it decreases the discharge of acid and alkali.

Do quantitative data exist for evaluation of environmental benefits?

Yes.

The environmental protection measures will be underta-ken in the power plant under the environmental quantity standard and regulation, as following:

1. A 120m high stack with 3m diameter of outlet will be built, in order to mitigate the impact of flue gas emitted on the surrounding atmosphere environment.

2. The SO2 emission could be reduced effectively by the better performance of de-SO2 at rate over 85% in-furnace of CFBC boiler. It is estimated that the maximum daily averaged surface SO2 concentration is around 0.0266 mg/m3, which is 17.73% of the national standard value.

3. A effective dust and TSP removing system with efficiency up to 95-96%, will be installed in this project.

It is estimated that the maximum daily averaged surface dust concentration is around 0.00236mg/m3, which is 1.57% of the grade II of the national standard value.

4. 57,000t of flyash and 10,000t of slack discharged by the thermal power plant, could be re-utilized annually by two projects nearby: cement plant and a building material plant.

Describe social/cultural benefits in detail:

By providing district heat, the space heating for the household will be ensured; By providing reliable electricity to the Aluminum Company, its productive operation could be maintained without suffering from blackouts and shortages.

Do quantitative data exist for evaluation of social benefits?

No

Describe economic benefits in detail:

The heat supply unit cost and electricity generation unit cost are higher than that of baseline case.

Do quantitative data exist for evaluation of economic benefits?

The incremental cost is up to 1.31 million US$ every year.

  • 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)

In the given AIJ pilot project, the existing low efficient coal fired small industrial boilers will be replaced by newly built Circulating Fluidized Bed Combustion (CFBC) boilers with 75t/h L 3 capacity and the co-generation units with 12 MW L 2 capacity. They will also supply the electricity to the new industrial users, who would otherwise purchase the electricity from local grid in absence of the AIJ project. Therefore, the system boundary could cover the following processes and their CO2 emissions both for baseline case and the AIJ Project: i) Electricity generation, ii) Industrial process heat supply, as shown in the Fig. 1.

(Project Baseline)

In the AIJ pilot phase, the more direct and practical baseline approach is the project specific approach, which is applicable to the current AIJ project as shown below.

Heat supply baseline

Fig. 1 The system boundary of the CFBC/CHP AIJ project in Shangqiu Thermal Power Plant

In the context of the AIJ project, about 24 small and decentralized industrial boilers, including 4t/h (3.7MW), 6.5t/h (6.0MW), and 10t/h (9.2MW) units with total 148.5 t/h (136.4MW) of the processing heat supply capacity will be replaced, and 102 t/h (93.7MW) of newly increased industrial heat load will be met with district heating supplied by the AIJ project. Thus, the heat supply baseline case should be determined as i) the energy intensity for such coal fired boilers, ii) the CO2 emission levels, in average, of those conventional industrial boilers and space heating boilers, and iii) unit heat supply costs. Based on the technical and economic parameters provided by The Shangqiu Thermal Power Plant for the 4T/h, 6.5T/h and 10T/h industrial boilers, the heat supply baseline are calculated.

Electricity supply baseline

The AIJ project is planned to supply electricity to Shangqiu Aluminum Refinery Plant to meet its load demand for the newly increased refinery capacity of 15000 T/year. Although there is local county power plant in operation with 48 MW capacity only, it could not provide additional electricity supply. So in absence of the CFBC/CHP AIJ pilot project, the Henan provincial power grid, would act as electricity supply baseline.

(Results)

For heat supply baseline

i) The averaged coal intensity of heat supply for such coal fired boilers: 51.89 kgce/ GJ,

ii) The related average CO2 emission intensity: 140 kg-CO2/GJ.CO2, and

iii) The averaged heat cost per unit heat supply: 1.98 US$/GJ.

For electricity supply baseline

Based on statistical data provided by Henan provincial electric power bureau,

i) The average coal intensity per Kwh supply : 533 gce/kwh, and

ii) The CO2 emission intensity: 1.42 kg-CO2/kwh, and

iii) Electricity supply cost: US$ 3.37 Cent/Kwh.

2) Estimated emissions with the activity:

Description of the scenario, including methodologies applied:

(AIJ project)

3L 75T/h (3L 68.9MW) of CFBC boilers and 2 L 12 MW of co-generation units at Shangqiu Thermal Power Plant. The annual heat supply is 1.316 10K GJ/yr., and the annual electricity supply is 107.11 Gwh/yr. Based on the technical and economic specification in the project feasibility study report and project design report, the energy efficiency, CO2 emission intensity and the unit cost for the heat supply and electricity is calculated respectively. The special attention was given to the energy share and cost share between heat and electricity supply. In particular, the electricity consumption of self service for the CHP power plant was carefully divided into two parts for heat and electricity supply respectively.

(Results)

For heat supply of AIJ project

i) The coal intensity of unit heat supply for the CFBC/CHP project: 39.71 kgce/GJ,

ii) The related CO2 emission per unit heat supply: 107.61 kg-CO2/GJ, and

iii) The heat cost per unit heat supply: 2.549 US$/GJ.

For electricity supply of AIJ project

i) The coal intensity per kWh supply for the CFBC/CHP project: 375.5 gce/kwh, and

ii) The related CO2 emission intensity: 1.00 kg-CO2/kwh, and

iii) The electricity supply cost: US$ 3.85Cent/Kwh.

3) Calculation of GHG emission reduction with the project activities

TAER = TAEBaseline-TAEAIJ

TAEBaseline = (AES L SEBaseline + AHS L SHBaseline )*EF

TAEAIJ = (AESL SEAIJ+ AHSL SHAIJ )L EF

of which

TAER: total annual emission reduction,

TAEBaseline: total annual emission for baseline

TAEAIJ: total annual emission for AIJ project

AES: annual electricity supply, 107.11Gwh/yr

SEBaseline: coal intensity for unit electricity supply in baseline, 533 gce/Kwh

AHS: annual heat supply, 1,316,420 GJ/yr

SHBaseline: coal intensity for unit heat supply in baseline, 51.89 Kgce/GJ

SEAIJ: coal intensity for unit electricity supply in AIJ project, 375.5 gce/Kwh

SHAIJ: coal intensity for unit heat supply in AIJ project, 39.71 Kgce/GJ

EF: emission factor, 0.725kg-C/kgce.

So, TAEBaseline = 90.92 KT-C/year, or 333.37 KT-CO2/year,

TAEAIJ = 67.06 KT-C/year, or 245.88 KT-CO2/year, and

TAER = 23.86 KT-C/year, or 87.48 KT-CO2/year.

Fill in the following tables as applicable:

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

GHG 1999 2000 2001 2002 2010

A) Project baseline scenario

CO2 166.69 333.37 333.37 333.37
CH4
N2O
Other

B) Project activity scenarioa)

CO2 122.94 245.88 245.88 245.88
CH4
N2O
Other

C) Effect ( A-B )

CO2 43.74 87.48 87.48 87.48
CH4
N2O
Other

D) Cumulative effect

CO2 43.74 131.22 218.7 918.54
CH4
N2O
Other

Note: The calculations above are based on the project operation schedule as following:

  • Completion of construction: three sets of boilers will put into operation in May, July and October, 2000 respectively, which means half capacity operation in 2000.

    Starting-up full capacity operation: January, 2001 .

a) Remark on indirect GHG leakage: The indirect leakage could be caused by "rebound" behavior of energy consumers. For instance, the additional energy supply with cheap cost would lead to over energy consumption by the energy consumers, and lead to leakage of CO2 emission reduction. However it should be stressed that there have already been the shortage of electricity supply, which constrains the full operation of the local enterprises and the normal electricity consumption of households by cutting down electricity service frequently. Hence the current increase of electricity supply and consumption by the AIJ project could help the consumers to return the electricity consumption level to their expected status. Thus such behavior is by no means of leakage. The similar explanation could be applied to the space heating supply case.

Summary table: Actual emission reductions:

(it will be reported later when the project is put into operation )

F. Additionality 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 .

Category of funding

(For each source one line)

Amount

(Million US dollars)

a. Owner's capital fundsF

6.05

b. Owner-self financing

4.98

c. Special AIJ fund provided by Norwegian Royal Ministry of Foreign Affairs

5.00

d. Local Bank loans

9.68

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

No

Domestic technologies are used.

Endogenous capacity supported or enhanced:

Endogenous capacity

Name of organization1)

Development (DEV) / Enhancement (ENH) Describe briefly

INET/ITEESA, Tsinghua University

ENH

Capacity building on the AIJ project development and on the methodological issues are enhanced.

Shangqiu Thermal Power Plant

ENH

By installing automatic monitor and control system, the operation perfor-mance of the power plant will be enhanced and CO2 emission reduction could be ensured and well measured

1) Please ensure that detailed contact information for all organizations listed are reported under section A.2 above.

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:

By dealing with the project specific issues raised in the CO2 emission intensity for the combined heat and power generation process, the practical experience in determining environmental benefits of the CO2 emission reduction is gained from methodology point of view.

2) Technical difficulties:

Meanwhile the technical difficulties in determining the dynamic baseline are encountered.

3) Negative impacts and/or effects encountered:

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)

To be identified after the AIJ project is put into operation.To to

4) Impacts encountered:

To be identified after the AIJ project is put into operation.

  • 5) Other obstacles encountered:

Foreign CFBC/CHP technology can not be accessed due to financial obstacles.

6) Other:

Attachment

Table 1 The cost-benefits analysis on CO2 Mitigation by AIJ Pilot Project

Options: Shangqiu CHP Power Plant

Item

Unit data

Project scale: CFBC boiler

T/h (MWj 75 x 3(3~68.9)

Turbine and generator unit

MW 12MW Single Extraction L 2

Total investment cost

MUS$ 28.47

Heat supply baseline*: 8 industrial users, 4t/h, 6.5t/h and 10t/h small industrial boilers with energy efficiency: 50-60%

Baseline coal consumption per unit heat supply

Kgce/GJ 51.89

Baseline unit heat supply cost

US$/GJ 1.98 (16.45 Yuan /GJ)

Electricity supply baseline**

Henan Grid

Baseline coal Consump. per unit electricity supply

gce/Kwh 533

Baseline unit elec. supply cost

US$/Kwh 0.0337

AIJ CFBC 75t/h energy efficiency:

89.5%

AIJ coal consumption

per unit heat supply

Kgce/GJ 39.71/- 23.5%

AIJ coal consumption

per unit electricity supply

gce/Kwh 375.5/-29.5%

AIJ unit heat supply cost

US$/GJ 2.549

AIJ unit elec. supply cost

US$/Kwh 0.0385

AIJ annual heat supply

GJ/yr 1316420

AIJ annual elec. generation

Gwh/yr 118.75

AIJ annual elec. supply

Gwh/yr 107.11

AIJ annual energy saving

KTce/year 32.91

CO2 mitig. per unit heat supply.

kg-CO2/GJ 32.39

CO2 mitig. per unit elec. supply.

kg-CO2/Kwh 0.42

Incremental cost per unit

US$/T-C 55.07

CO2 mitigation

US$/T-CO2 15.02

AIJ annual CO2 mitigation

KT-C/year 23.86
KT-CO2/yr 87.48

Annual Incremental Cost for CO2 mitigation

MUS$/yr 1.31

Life cycle incremental expenses for CO2 mitigation

MUS$ 11.19

Life cycle CO2 emission mitigation by T-C (discounted)

MT-C 0.20

Life cycle CO2 emission mitigation by T-CO2 (discounted)

MT-CO2 0.74
Emission reduction and its incremental cost calculated by equivalent static approach

Equivalent static incremental

US$/T-C 23.46

cost per unit CO2 reduction

US$/T-CO2 6.40

Total CO2 emission reduction

MT-C 0.47

over life time, physical amount

MT-CO2 1.75

*: Data for heat supply baseline are provided by Shangqiu CHP Power Plant

**: Data for electricity supply baseline are provided by Henan electric power authority
Annex The methodology of the incremental cost of CO2 emission reduction

The incremental cost of CO2 emission reduction (ICER) caused by the AIJ project is critical to the cost effectiveness of the environmental benefits.

The ICER is defined as life cycle averaged incremental cost for CO2 emission reduction, as following:

ICER = Image, (1)

where

ICERij =Image, (2)

is the incremental cost per unit CO2 emission reduction for the ith year and the jth product to be caused by the AIJ project when putting into operation. Of which,

Image= Image, (3)

is the net CO2 emission reduction per unit of the jth product for the ith year, which is the difference of the energy intensity per unit of the jth product between baseline case (Image) and the AIJ project (Image), multiplied by CO2 emission factor for the given fuel (Image), And

Image = Image , (4)

is the incremental cost per unit of the jth product for the ith year, which is the difference of the unit cost of the jth product between the AIJ project (Image) and baseline case (Image).

N, m is the life time (year) and the number of product types for the AIJ project respectively. Here N = 20 year and m = 2 (here refer to heat and electricity), and supposing the prices of the products is the same between baseline case and the AIJ project. And r is the discount rate at given value 10%.

It should be pointed out that given the criteria of additionality and long-term environmental benefits for the AIJ pilot project, the incremental cost for the CO2 emission reduction should be evaluated in the life cycle (dynamic over life time) and the marginal cost sense