Feasibility Study for Joint GHG Reduction Projects and Joint Crediting Mechanism Applying RENKEI Control Technologies
in Utility Providing Facilities through Software Package
Feb. 2013 Azbil Corporation
2012 Azbil Corporation All rights reserved
Feasibility Study for New Offset Mechanism
CountryIndonesia
Utility Facility Operation Optimization Technology
by Azbil Corp.
The technology can be applied to the existing utility system in the factory of various industries and is high return-on-investment (ROI) technology, since it works on simple computer systems, without high-performance hardware or other expensive equipment. It has great amount of CO2 reduction potential for various industries in Indonesia such as refinery plant, chemical plant, district heating and cooling and so on.
Project Outline Application of Utility Facility Operation Optimization Technology in Indonesia, which were successfully applied to many industries in Japan, will contribute the reduction of CO2 emission in Indonesia. Feasibility study will investigate the MRV of this technology to New offset Mechanism Summary of Methodology
1. Simulation Methodology Reference emission will be calculated by simulator which is using mixed integer liner programming. 2. Regression Methodology Reference emission will be calculated from regression model. CO2 emission = k1 * Steam demand + k2*Power demand
Counter part in Indonesia
Refinery (Pertamina Cilacap) Textile company (South Pacific Viscous)
2012 Azbil Corporation All rights reserved
Feasibility Study for New Offset Mechanism CountryIndonesia
Outline of Applied Technology
Utility Distribution
Elec. Power
Primary Energy Elec. Power
Utility Facility
Production Area
Substation Selection Equipment
Substation
Load Allocation
Cogeneration
Compressor
Air
Production Equipment
Heat Storage
Cooling Water / Hot Water
Turbine
Chiller
Stable supply for utilities
MP Steam
Turbine
Consideration for trouble in utility plant
HP Steam
Fuel Oil Gas
Boiler
Consideration for demand change Consideration for utility cost
Gas
Minimize CO2 & Energy Cost
2012 Azbil Corporation All rights reserved
Feasibility Study for New Offset Mechanism CountryIndonesia
Eligibility Criteria
Name of technology RENKEI control for utility facilities Description Using mixed integer programming or an equivalent method of optimization calculation, the system determines the optimum selection and the optimum load allocation for utility equipment such as boilers, steam turbines, and chillers used in utility facilities, in order to minimize CO2 emissions. It outputs the results as operation guidance for operators or as online control output. Criteria Utility equipments are consist from boilers / steam turbines / co-generations. Be able to identify total energy consumption and total steam demand / total electric demand for the past one year. or Be able to identify energy consumption and steam and/or electric generation for each individual equipments for the past one year.
2012 Azbil Corporation All rights reserved
Feasibility Study for New Offset Mechanism CountryIndonesia
Selection of calculation method
Be able to identify energy consumption and steam or electric generation for each individual equipments for the past one year.
YES
Simulation Method
NO
Be able to identify total energy consumption and total steam demand / total electric demand for the past one year.
YES
Regression Method
2012 Azbil Corporation All rights reserved
Feasibility Study for New Offset Mechanism CountryIndonesia
Reference Scenario Setting
The energy consumption efficiency of a utility plant will continue to be the same level as that of before implementing Utility Optimization system.
2012 Azbil Corporation All rights reserved
Feasibility Study for New Offset Mechanism CountryIndonesia
Reference Emission and calculation (Simulation Method)
Boiler total efficiency will be affect by Steam demand Individual boiler efficiency Slected boilers To have more accurate Baseline it is better to consider those affection. This simulation approach is including all these affection to calculate Baseline emission. Key Parameters CO2 Minimum Emission (simulation value) Operation emitting the least CO2 (theoretical maximum efficiency) CO2 Maximum Emission (simulation value) Operation emitting the most CO2 (theoretical minimum efficiency) Deviation ratio (%) Deviation from CO2 Minimum Emission, which demonstrates how far the actual boiler operation allows emitting CO2, compared to theoretical maximum efficiency
2012 Azbil Corporation All rights reserved
Feasibility Study for New Offset Mechanism CountryIndonesia
Reference Emission and calculation (Regression Method)
CO2 emission = k1 * Steam demand + k2*Power demand
K1 and k2 are calculated from regression analysis by using past one yeas data.
Energy Consumption Steam Demand Electric Demand
2012 Azbil Corporation All rights reserved
Feasibility Study for New Offset Mechanism CountryIndonesia
Project Emission and calculation and emission reduction
Project Emission will be calculated by following formula Project CO2 emission = (Measured Fuel consumption * Conversion Factor into CO2) + (Measured Electric consumption * Conversion Factor into CO2) Emission Reduction will be calculated by following formula
Emission reduction = Reference CO2 Emission Project CO2 Emission
2012 Azbil Corporation All rights reserved
Feasibility Study for New Offset Mechanism CountryIndonesia
Data and Monitoring
Simulation Method
Energy consumption and steam or electric generation for each individual equipments for the past one year.
Regression Method
Total energy consumption and total steam demand / total electric demand for the past one year.
2012 Azbil Corporation All rights reserved
10
Feasibility Study for New Offset Mechanism CountryIndonesia
Scale of Investment and Project implementation time frame
Scale of Investment
From USD500K to USD1M
Hardware (Data Server and Optimization Server) Software License (Optimization software and others) Engineering Service
Implementation time frame
From 4 month to 8 month
Survey Design Implementation On site Commissioning
2012 Azbil Corporation All rights reserved
11
Feasibility Study for New Offset Mechanism CountryIndonesia
Expected CO2 reduction
Assumption : (1) Number of companies covered by Energy Saving Low (Regulation No.70 Year 2009) is 650 based on IEEJ Report 2010. (2) 650 companies are categorized 3 groups by CO2 emission and each number of companies, U-OPT applied rate are assumption. Total CO2 emission reduction = Total CO2 Emission * U-OPT applied rate * CO2 emission reduction rate
CO2 Total CO2 CO2 Total CO2 U-OPT Number of emission emission Group Emission Emission applied Compnies reduction reduction (Kt-CO2) (Kt-CO2) rate % rate % (Kt-CO2) 50 50,000 50% 2% 500 A 1,000 B 500 150 75,000 30% 2% 450 C 18 450 8,100 10% 2% 16 Total 650 133,100 966
Expected CO2 Reduction
Note Business Base Need some help Need strong support
CO2 emission 18Kt-CO2 6000toe
Estimated reduction %: around 2 of total emission Target reduction 1,000,000 ton-CO2/ year in Indonesian industrial section
2012 Azbil Corporation All rights reserved
12
2012 Azbil Corporation All rights reserved
