| Title of Feasibility Study (FS) | Feasibility Study regarding CDM Programme of Activities for Waste Heat Recovery and Utilization for Power Generation Project in Shanxi Province, China |
| FY | FY 2009 |
| Main Implementing Entity | Mizuho Information & Research Institute, Inc. |
| FS Partner(s) | Mizuho Corporate Bank, Ltd.; and Kyushu Electric Power Co. Inc. |
| Location of Project Activity | China (Shanxi Province) |
| Summary of FS Report | Report (PDF 301KB) |
| Description of Project Activity | This project is a Program of Activity to promote waste heat recovery for power generation to cement plants in Shanxi Province, China, at the initiative of Shanxi Building Material Industry Administration Office, a local private industrial group that administers cement plants in the region, functioning as the coordinating/managing entity. Each CPA will be implemented in geographically distinct area of Shanxi Province. Each CPA will be implemented and managed in cement plants within the area, limited to the entities under administration of Shanxi Building Material Industry Administration Office, the coordinating/managing entity. Shanxi Jigang Cement Co., Ltd., a CPA model site for this PoA, introduces 9 MW facilities in total for waste heat recovery and power generation in the one existing 2,500t/day line and another 2,500t/day line to be installed to generate electricity by approx. 53,000MWh/year, of which approx. 49,000MWh/year is expected to be supplied to cement plants. This will contribute to reduce purchase of electricity from a grid, and is expected to achieve CO2 reduction by approx. 44,000tCO2/year. |
| Targeted GHG | CH4 |
| Category of Project Activity | Others (Waste Heat Recovery) |
| CDM/JI | CDM |
| Duration of Project Activity/ Crediting Period | <POA>
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| Methodology to be applied | ACM0012 |
| Baseline Scenario | With regard to waste heat to be utilized in the cement waste heat recovery power generation project, among realistic and plausible options provided in ACM0012 Version 3.2, the following W1 (W2) is close to actual situation in Shanxi Province and therefore is assumed as the baseline.
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| Demonstration of Additionality | As a result of calculation, IRR for CPA in case of without revenue from CER is at 6.50%, lower than the benchmark in China (11%), which is improved to 11.44% taking into consideration CER revenue. One of the reasons is, in Shanxi Province, that the sales price of electricity from waste heat recovery to the power grid is set at a lower level due to the excess-supply of electricity. |
| Estimation of GHG Emission Reductions | Estimated GHG emission reduction: 43,697tCO2/year
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| Monitoring Plan | Monitoring plan as the PoA:
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| Environmental Impact Analysis | Environmental impact analysis in CPA is implemented in accordance with the standards such as "Environmental Quality Standard for Air" (GB3095-1996) and "Emission Standard of Air Pollutants for Cement Industry" (GB4915-2004), all of which satisfy conditions given in the standards. |
| Project Feasibility | Shanxi Jigang Cement, a CPA model site, expressed its intention to promote this project on commercial basis if it has high potential to be registered as a PoA, taking into consideration the result of this study. On the other hand, it is also the fact in Shanxi Province where electricity is in excess supply that the power grid has no desire for any power generated from recovered waste heat and that they are often back away from proceeding negotiations to sign a contract. Completion of such sales/purchase contract at an early stage is a need to make progress of this project on commercial basis. Moreover, considering discussions in the CDM EB, seeking registration as small-scale CDM (e.g., below 2,500t/day) can be another option to ensure the CDM status, although project IRR is lowered in general. |
| Pollutants Emissions Reduction | In this co-benefit evaluation, as with the case of CO2 emission reduction, emission factors of SO2 and NOx in power plant are estimated to calculate reductions of air pollutant emissions by using electricity generated from recovered waste heat. The external environmental costs of these reductions calculated by using LIME’s conversion factors, the results are 122 million yen/year for SO2, 13 million yen/year for NOx, and 76 million yen/year for CO2. With environmental costs from reducing SO2 and NOx, the total cost becomes three times of external cost of CO2 only. The effect of reducing SO2 is large especially in Shanxi Province where coal is consumed heavily. |
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