CDM Feasibility Study for Energy Saving Proj Coal Moisture Control (CMC) Technique in Yunnan, China

Global Environment Centre Foundation(GEC)

Reports of CDM/JI Feasibility Studies

Title of Feasibility Study (FS)CDM Feasibility Study for Energy Saving Proj Coal Moisture Control (CMC) Technique in Yunnan, China
FYFY 2010
Main Implementing EntityE&E Solutions Inc.
FS Partner(s)Tepia Corporation Japan Co., Ltd
Location of Project ActivityChina (Yunnan Province)
Category of Project ActivityOthers (Waste Gas Utilisation)
Targeted GHGCO2
Duration of Project Activity/ Crediting Period2011 - 2026/ 10years
Summary of FS ReportSummary(PDF 228KB)
Description of Project ActivityThe project intends to install the Coal Moisture Control (CMC) facility into the coke producing line of Yunnan Dawei Coking Co., Ltd. ; a coke manufactory in Yunnan province, China. As the proposed project implemented, flue gas, desorption gas and carbon-rich gas are utilized for reducing the material coal moisture in CMC equipment; and the use of COG in coke ovens is saved and GHG emissions from coke ovens are reduced.
Methodology to be appliedAMS-II.D "Energy efficiency and fuel switching measures for industrial facilities" (Version 12)
Baseline ScenarioThe baseline of the proposed project is described as the situation where more COG is consumed in coke ovens because of higher rate of moisture in the material coal without the installation of the CMC system. The emission reduction consists of GHG emissions from coal burning which corresponds to the utilized amount of waste energy for coal moisture reduction with CMC.
Demonstration of AdditionalityWithout the consideration of CDM benefit, the internal rate of return is 11.07% which is lower than benchmark rate of return 12%, so the proposed project has no financial attraction. On the other hand, With the consideration of CDM benefit, the internal rate of return is 12.02%, which is higher than benchmark rate of return 12%.
Estimation of GHG Emission Reductions8,316tCO2/year
Monitoring PlanMonitoring methodology AMSII.D (Ver.12) is employed to the project
Major Parameters which will be monitored are as follows;.
  • Material coal input, measured before input to coke ovens
  • Project coke production
  • Material coal moisture before CMC system, measured by sampling
  • Material coal moisture after CMC system, measured by sampling
  • Electricity consumption of CMC system, measured by the meter
Environmental Impact AnalysisThe Environmental Impact Assessment has been done for the proposed project and approved by Qujing Environmental Protection Bureau on 23/5/2010. The environmental impacts arising from the Project are analyzed:
  • Air impact analysis
  • Flue gases caused during drying project
  • Analysis of water environment influence
  • Analysis of solid waste influence
  • Analysis of acoustical environment influence
Project FeasibilityThe plant owner of the site is very interested in the proposed CDM project and the possibility to realize this project is high. In the site, basic design and negotiation is proceeding to install the CMC technique.
"Co-benefits" (i.e. Improvement of Local Environmental Problems)SOx emission and COD emission will be reduced by introducing the CMC.
According to the ex-ante evaluation, 2,145t-SO2/year of sulfur oxide and 6,940t/year of COD will be reduced.
Contribution to Sustainable Development in Host CountryThe proposed project will lower the dependency on coal. It will not only save energy but also mitigate environmental pollution, and will contribute to achievement on the goal of emission reduction in China’s 11th five-year plan. The propagating effect is anticipated through the improved profitability of CMC installation with CER revenue.