Programmatic CDM Feasibility Study for Energy Efficiency Program through Introducing 3WCF Technique in Yunnan, China

Global Environment Centre Foundation(GEC)

Reports of CDM/JI Feasibility Studies

Title of Feasibility Study (FS)Programmatic CDM Feasibility Study for Energy Efficiency Program through Introducing 3WCF Technique in Yunnan, China
FYFY 2009
Main Implementing EntityE&E Solutions Inc.
FS Partner(s)Tepia Corporation Japan Co., Ltd
Location of Project ActivityChina (Yunnan Province)
Summary of FS ReportSummary(PDF 122KB)
Description of Project ActivityThe proposed project involves activities of using a three-waste co-combustion furnace (hereinafter referred to as 3WCF) technique to reduce GHG emissions at Yunwei Zhanhua Co., Ltd., an ammonia manufactory in Yunnan province, China. The 3WCF technique is a new boiler technique specifically designed for ammonia plants with recovery of coal and coke as raw materials, by returning the three wastes (gas, sludge, fly ash) that are generated by the steam consumers to the local heat generation plant, and utilize the three wastes to reduce the consumption of coal and/or coke used to generate steam. Through this energy saving, the emission of GHG will be reduced.
Targeted GHGCO2
Category of Project ActivityOthers
Duration of Project Activity/ Crediting Period
  • PoA: 2011 to 2039
  • CPA: 2010 to 2025
  • Crediting Period 10years for each CPA
Methodology to be appliedAMS-II.D "Energy efficiency and fuel switching measures for industrial facilities" (Version 12)
Baseline ScenarioApproved small scale methodology AMS-II.D (Ver.12) was employed to identify the baselilne scenario.
Without the project activity normal steam boiler, whichi is the most common and cheapest method to generate the steam (baseline scenario)., would be installed instead of the 3WFC technique.
Demonstration of AdditionalityThe 3WFC thechnique is the first of its kind technology in Yunnan province. Beside, without the consideration of CDM benefit (CER revenue), the internal rate of return is less than 9% which is the benchmark IRR rate of Chemical and/or Fartirizer plant in China. On the other hand, with considering CER revenue, IRR of the proposed project becomes higher than 9%. Thus, it is clealy proved the additionality of the proposed project.
Estimation of GHG Emission Reductions
  • For CPA: 48,836tCO2/year,
  • For Total PoA: Around 300 thousand tCO2/year
Monitoring PlanMonitoring methodology AMSII.D (Ver.12) is employed to the project
Major Parameters which will be monitored are as follows;.
  • Coal consumption of the project
  • Steam temperature Tsteam
  • Steam Pressure of the steam
  • Volume of the three wastes (gas, sludge, fly ash) burned as the fuel
  • Net calorific value of the three wastes (gas, sludge, fly ash)
  • Steam generated from 3WFC
Environmental Impact AnalysisNo negative environmental impact will be caused by the project. The project will reduce the coal consumption and will be reduce the air pollution. Also, following positive impact will be expected.
The proposed CPA will improve product efficiency. It will reduce the energy consumption and waste discharged. So the owner can improve the level of resource utilization and overall economic benefits by the proposed project.
Project FeasibilityThe plant owner of the CPA site is very interested in the proposed CDM project and the possibility to realize this project is high. In the CPA site, basic design and negotiation is proceeding to install the 3WFC technique.
Other candidate anmonia plant sites are also interested in the CDM.
Pollutants Emissions ReductionSOx emission and solid waste generation will be reduced by introducing the 3WFC. Beside, solid waste (i.e., bottom ash) which will be generated from the project is 100% recyclable as a Cement material.
According to the ex-ante evaluation, 341tSO2/year of sulfur oxide and 8,405t/year of solid waste will be reduced.