14
MOEJ/GEC JCM Methodology Demonstration Study (DS) 2013 Final Report "Energy efficiency improvement of glass furnace" implemented by Ihara Furnace Co., Ltd.Study partners Rang Dong Light Source and Vacuum Flask Joint Stock Company (Ralaco), Vietnam Architectural Glass Association, Renova, Inc., Proact International Inc., Japan Quality Assurance Organization Project site Bac Ninh Province, Viet Nam Category of project Energy Saving Description of project This project implements significant GHG reduction for furnaces at glass manufacturing factory which consume exceedingly much energy by introducing energy efficiency technology such as combustion control system which optimizes air capacity, and decreasing fuel and electricity consumption. The diffusion of the implementing technology in Asian countries including the host country is not yet sufficient, this project is hopefully an opportunity to come into wide use all over the Asian countries. JCM methodology Eligibility criteria Criterion 1 All of core technologies and two or more of the following other technologies are introduced in implementing the project. - Core technologies: Automatic fuel-air ratio control system, Furnace pressure control system, Glass level control system - Other technologies: Tertiary air inflow prevention burner, Cullet preheating system, Electric boosting system, Rapid heating system, Plant engineering (design, supervise of construction, maintenance) by companies with high technologies Criterion 2 The applicable furnace include manufacturing of glass products. Criterion 3 No drastic changes are made in manufacturing process and products before the project implementation and after the project period. Criterion 4 Fossil fuel and grid electricity consumptions including production of products are measureable one (1) year before and after the project implementation. Default values GHG emission original unit of fossil fuel: Utilize IPCC default values

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Page 1: Energy efficiency improvement of glass furnacegec.jp/gec/en/Activities/fs_newmex/2013/2013ds04_rep.pdf · system, Plant engineering (design, supervise of construction, maintenance)

MOEJGEC JCM Methodology Demonstration Study (DS) 2013

Final Report

Energy efficiency improvement of glass furnace

(implemented by Ihara Furnace Co Ltd)

Study partners Rang Dong Light Source and Vacuum Flask Joint Stock

Company (Ralaco) Vietnam Architectural Glass Association

Renova Inc Proact International Inc Japan Quality Assurance

Organization

Project site Bac Ninh Province Viet Nam

Category of project Energy Saving

Description of project This project implements significant GHG reduction for furnaces

at glass manufacturing factory which consume exceedingly much

energy by introducing energy efficiency technology such as

combustion control system which optimizes air capacity and

decreasing fuel and electricity consumption The diffusion of

the implementing technology in Asian countries including the

host country is not yet sufficient this project is hopefully an

opportunity to come into wide use all over the Asian countries

JCM

methodology

Eligibility

criteria

Criterion 1 All of core technologies and two or more of the

following other technologies are introduced in implementing the

project

- Core technologies Automatic fuel-air ratio control system

Furnace pressure control system Glass level control system

- Other technologies Tertiary air inflow prevention burner Cullet

preheating system Electric boosting system Rapid heating

system Plant engineering (design supervise of construction

maintenance) by companies with high technologies

Criterion 2 The applicable furnace include manufacturing of glass

products

Criterion 3 No drastic changes are made in manufacturing process

and products before the project implementation and after the

project period

Criterion 4 Fossil fuel and grid electricity consumptions including

production of products are measureable one (1) year before and

after the project implementation

Default

values

GHG emission original unit of fossil fuel Utilize IPCC default

values

Electricity emission factors Utilize values published by

Vietnamese government

Discount rate of emission reduction Calculate by the difference

of the operating ratio of general technology and high technology

Use for calculation of emission reduction

Calculation

of

reference

emissions

Automatic fuel-air ratio control system (herein referred as general

technology) is diffused above a certain ratio in Vietnam The

reference scenario is set as it is introduced

Monitoring

method

Electricity consumption(kWh) Record the meter of each

furnace every day compare and match with receipt at the end

of month

Heavy oil inflow(kL) Record the value (L) of flowmeter of

each furnace on ledger every day compare and match with

receipt at the end of month

Production volume(t-Glass) Standard weight x cut frequency

(number of revolutions of cutter) for fluorescent light

Standard weight x amount of gob for light bulb Record

these values every day on ledger and conclude them at the

end of month

Result of monitoring

Parameter

(Unit)

Monitoring

Option

Original

Data

Value

Reference Project

Production

volume

(t-Glassyear)

Option C In-house

management

book

6834 9931

Fuel

consumption

(kLyear)

Option C In-house

management

book

2362 1797

Electricity

Consumption

(MWhyear)

Option C In-house

management

book

0 8708

GHG emission reductions Emission reduction= (Reference emission - Project emission) x

Emission reduction discount rate α (provisional figure 8)

Reference emission 10279 t-CO2year

Project emission 5854 t-CO2year

Reduction amount 354 t-CO2year

Environmental impacts This project is not subject to EIA

Air pollutant decreases as fossil fuel combustion amount declines

Promotion of Japanese When in comparison of capability and price with technologies

technologies from abroad Chinese is competitive being superior in price

Initial cost for Chinese facility is as half as Japanese that we need

some sort of incentives in price and so on in order to promote

Japanese technology

Sustainable development

in host country

Glass production volume focusing on plate glass has been

increasing currently in Vietnam Further demand for extension

and renovation of glass furnace is expected with current rise of

architectural demand and production volume expansion of items

with display Japanese glass furnace has exceedingly high

energy efficiency for technical accumulation of many years

Thus transferring these technologies contributes to the host

country in decreasing energy consumption for long term and

promoting and upgrading of energy efficiency technology

Development and

deployment of similar

projects

More diffusion of energy efficiency for glass furnace is expected

with the sudden rise of energy price regulation by energy

efficiency policy and extension of glass product market

Especially Thailand where there is regulation by energy

efficiency policy and energy price is rising is a promising market

and there are in fact many energy efficiency furnace inquiries

JCM Demonstration Study (DS) 2013 ndash Final Report

lt1gt

JCM Methodology Demonstration Study (PS) 2013

ldquoEnergy efficiency improvement of glass furnacerdquo

(Host country Viet Nam)

Study Entity Ihara Furnace Co Ltd

1Study Implementation Scheme

Rang Dong Light Source and Vacuum Flask Joint Stock Company (Ralaco) demonstration

site

Vietnam Architectural Glass Association provide information concerning trends in the

Vietnamese glass industry

Renova Co Ltd (Renova) assist creation of methodology proposal assist PDD drafting

Proact International Inc (Proact) assist with local market research arrange local research

Japan Quality Assurance Organization (JQA) PDD pre-validation

2Overview of Proposed JCM Project

(1) Description of Project Contents

This project will significantly reduce GHGs for melting furnaces at glass production plants

which consume an extremely large amount of energy by installing the energy-saving technology

described below such as the automatic atmospheric ratio control system and by reducing fuel and

power usage

The project originates from a glass-melting furnace energy-saving proposal implemented in 2005

at Ralaco a major Vietnamese glass products manufacturer in a NEDO study on energy-saving

potential In response to this proposal Ralaco executives highly commended the significant energy

cost reductions from energy saved and decided to install energy-saving furnaces

Afterward although we drafted a PDD for turning the project into a CDM project and it passed

validation it was withdrawn due to remarks added in the registration review by the CDM Executive

Board

Under this situation in order to overcome the aforementioned CDM issues the purpose of this

study is to formulate a proposal for a new MRV methodology for JCM that is based on the basic

unit method and model verification shall be performed at plants involved in this study

(2) Situations of Host Country

(i) Trend of related industry

In addition to light fixtures such as light bulbs and fluorescent lights glass is used for products

such as architectural glass panes automobile glass glass bottles and eating utensils liquid crystal

products and solar cell panels The glass production method is basically the same for each of these

for which high-temperature glass-melting furnaces are used

According to interviews with the Vietnam Glass Association and suppliers of raw materials for

glass production volume in Viet Nammdashprincipally of glass panesmdashhas been expected even in

JCM Demonstration Study (DS) 2013 ndash Final Report

lt2gt

recent years to continue trending upward With the greater production of liquid crystal products and

other goods coupled with rising construction demand in recent years additional installations of and

renewed demand for glass-melting furnaces is forecast for the future as well

(ii) Energy-related policy and its actual condition

Electricity consumption in Vietnam represents about a 14 increase every year and the high rate

of increase will continue for the foreseeable future In particular consumption will grow with

regard to cement manufacturing essential to blast furnace ironworks and infrastructure development

in the future in the industrial and construction fields that account for about 50 of electricity

consumption So the response to expanding electricity consumption is an urgent need and a new

electric power development plan was incorporated in the power development master plan However

the power plant that actually operated as planned represents a low number of 63 and 73 in 2009

and 2010 respectively

(iii) Energy saving-related policy and actual condition

Vietnam has worked to promote the saving of energy for instance as a policy to promote energy

saving a government ordinance concerning efficient use of energy and energy savings was

established in 2003 and a national objectives program for energy saving (2006 to 2015) was

prepared in 2006 However government ordinances are guidelines without legal force and so

effectiveness was poor So the Vietnamese government promulgated the ldquoLaw concerning energy

saving and efficient use of energyrdquo that is equivalent to the Energy Saving Act of Japan in July

2010 and executed it in January 2011 Then implementation and operation of the system will be

promoted in Vietnam for instance the government issued detailed rules of implementation and a

penalty decree and restrictions on designated business operators and guidelines for an

energy-saving labeling system were presented to the Ministry of Commerce and Industry

(iv) Climate change-related policy and its actual condition

A National Climate Change Strategy was executed in December 2011 as a policy superior to the

climate change policy and development of renewable energy energy saving in the industrial

construction and traffic sectors and the rest are included in it Also as a practical response the

National Target Program to Respond to Climate Change (hereinafter referred to as NTP-RCC) was

executed in 2008 and its materialization is currently being promoted NTP-RCC aims to reduce

GHG by 8 (absolute value) in comparison with 2005 by 2020 and MONRE currently takes the

lead in promoting an allocation of target values by sector along with the instruction of concrete

policies together with other ministries Objectives by industrial sector and by company have not yet

been established and such establishment is not compulsory for business operators at the present

time

JCM Demonstration Study (DS) 2013 ndash Final Report

lt3gt

3 Study Contents

(1) JCM methodology development

(i) Eligibility criteria

Below listed is the eligibility criterion for the methodology proposal Ver30

Table The eligibility criterion for the methodology proposal Ver30

Criterion Content Purpose

Criterion 1 All of core technologies and two or more

of the following other technologies are

introduced in implementing the project

- Core technologies Automatic fuel-air

ratio control system Furnace pressure

control system Glass level control

system

- Other technologies Tertiary air inflow

prevention burner Cullet preheating

system Electric boosting system Rapid

heating system Plant engineering (design

supervise of construction maintenance)

by companies with high technologies

After field study it turned out that the

diffusion of automatic fuel-air ratio

control system in Vietnam is above a

certain ratio that reference scenario is

set as it is introduced

Furnace pressure control system is

essential for automatic fuel-air ratio

control system being adequately

functional and glass level control

system is highly influential for yield

of product that it is essential for glass

manufacturing as a core technology

After field study other technologies

turned out to be hardly introduced in

Vietnam so far that meeting this

requirement automatically proves

technical additionality

Criterion 2 The applicable furnace include

manufacturing of glass products

To set target industry

Criterion 3 No drastic changes are made in

manufacturing process and products

before the project implementation and

after the project period

To exclude the possibility of

energy-efficiency-activity-unrelated

fluctuation of energy consumption

original unit in case there is a change

for manufacturing method and

product

Criterion 4 Fossil fuel and grid electricity

consumptions including production of

products are measureable one (1) year

before and after the project

implementation

The data of energy consumption and

production volume in the past and of

production volume during project are

required in order to calculate energy

consumption original unit for

reference

The data of fossil fuel and electricity

consumption is required in order to

JCM Demonstration Study (DS) 2013 ndash Final Report

lt4gt

Criterion Content Purpose

calculate project emission

(ii) Data and parameters fixed ex ante

For reference emissions energy consumption per unit of production volume (A) is fixed

according to ex ante parameters while the GHG emissions coefficient of fossil fuels (B) the GHG

emissions coefficient of grid power (C) and the rate of emissions reduction (D) are set to default

values

(A) is a calculation of basic units of energy consumption (basic units) from energy consumption

data and production volume data of the relevant Ralaco furnaces prior to project implementation

The result of a calculation utilizing data from January 2005 to August 2007 (prior to energy-saving

furnace installation) is a basic unit of 3326 kg of fuel oil per ton of glass

For (B) the IPCCs default values which are thought to be reliable were applied

For (C) the latest combined margin figure (05408 t-CO2MWh) the Vietnamese Ministry of

Natural Resources (MONRE) put together in 2011 was applied

For (D) details are given below in the calculation of emissions reductions but the GHG

reduction results differ due to a disparity between the technical products and services to fulfill

Eligibility Criteria 1 and the atmospheric ratio control systems whose popularization is currently

permitted in Viet Nam beyond a certain ratio and we are considering assessing the capacity

utilization of the automatic atmospheric ratio control system that will be the core technology

(iii) Result of actual monitoring

Below are the Monitoring Plan and Monitoring Implementation Results at the demonstration

plant These were compiled into the PDD and pre-validated by the Japan Quality Assurance

Organization

Monitoring Plan

The monitoring points monitoring parameters and monitoring system were configured and

constructed as follows and verified

JCM Demonstration Study (DS) 2013 ndash Final Report

lt5gt

Figure Monitoring points

Table Monitoring parameter

Parameter Description Frequency and media for

monitoring Notes

1 Heavy Oil

Inflow amount

Record values of flow

meter (L) of each furnace

on a ledger every day and

compare them with

receipts at the end of

month

Adjust the inflow amount by

dividing the disparity between

tank and the integrated value of

flow meter with activity ratio of

each furnace

2 Electricity Usage Record integrating

wattmeter of each furnace

every day and compare

them with bills at the end

of month

Integrating wattmeter of each

furnace would be checked by

EVN at the end of month and

bills would be issued

Electricity usage in forming step

not included

3 Production

Volume (Melting

amount base)

Fluorescent Light

Production speed (length

per minute) working

hours standard weight

Electric Light Bulb

Production speed (numbers

per minute) working

hours standard weight

Refer monitoring parameter 4

regarding the standard weight

Warehouse

Furnace

Tank

1

Beer

Product3rsquo

Heavy oil

Forming

bill

Flow meter

X g-GlassY g-Glass

44

Factory

Electricity

3

Monitoring point

Monitoring point

for cross check

1rsquo

Electricity meter2

1 Heavy oil inflow amount

2 Electricity usage

3 Product number

4 Standard weight

JCM Demonstration Study (DS) 2013 ndash Final Report

lt6gt

Parameter Description Frequency and media for

monitoring Notes

Record above stated on a

ledger every day and

conclude them at the end

of month

4 Weight per

article

Grasping by sampling No quality standard

regarding weight On the other

hand the standard on profound

of tube does exist measure

weight as first screening

Figure Monitoring structure

Monitoring Implementation Results

These are the results of the monitoring implemented in this project

Table Monitoring Implementation Results

Parameter (Unit) Monitoring

Option Original Data

Values

Reference Project

Production

volume

(t-Glassyr)

Option C company control

records

6834 9931

Fuel usage

(kLyr)

Option C company control

records

2362 1797

Head Quarter

Accounting Dept

Heavy oil

Manager

Electricity

Manager

Production

Manager

Shipping

Manager

Factory

Manager

Daily and monthly report

Monthly report

bull Data collection

bull Compile data for reporting

bull Compile

consumption data

of each furnace

bull Compile

consumption data

of each furnace

bull Compile melting

volume of each

furnace

bull Compile shipping

data

JCM Demonstration Study (DS) 2013 ndash Final Report

lt7gt

Parameter (Unit) Monitoring

Option Original Data

Values

Reference Project

Power usage

(MWhyr)

Option C company control

records

0 8708

(iv) Calculation of GHG emissions (including reference and project emissions)

Calculation of Reference Emissions

EMRR = SEMBP POPJ

EMRR Reference CO2 emission in year y [t-CO2y]

SEMBP Specific CO2 emission from the energy source before the project

[t-CO2 t-Glass]

POPJ Production volume of project activity in year y [t-Glassyear]

Below listed values are used in this project

Parameter Value Unit Notes

EMRR 10279 t-CO2y Refer above calculation formula

SEMBP 1035 t-CO2 t-Glass Refer below calculation formula

POPJ 9931 t-Glassyear Production from September 2012 until August 2013

SEMBP = (EMBP_fuel EMBP_electricity) POBP

=

i

ifuelifuelBPifuel CFHVF12

44 + ELBP CFelectricity POBP

EMBP_fuel CO2 emission from the fossil fuel before the project [t-CO2y]

EMBP_electricity CO2 emission from the grid electricity before the project [t-CO2y]

POBP Production volume before the project [t-Glassyear]

FfueliBP Fossil fuel consumption before the project [1000Nm3y or ty or kLy]

HVfueli Net calorific value of fossil fuel i [GJ1000Nm3 or t or kL]

CFfueli Carbon emission factor of fossil fuel i [t-CGJ]

ELBP Grid electricity consumption before the project [MWhy]

CFelectricity CO2 emission factor of the grid electricity [t-CO2MWh]

Below listed values are used in this project

Parameter Value Unit Notes

SEMBP 1035 t-CO2t-Glass -

EMBP_fuel 18864 t-CO2y -

EMBP_electricity 0 t-CO2y -

JCM Demonstration Study (DS) 2013 ndash Final Report

lt8gt

Parameter Value Unit Notes

POBP 6834 t-Glassy

Multiply average value for production volume from

January 2005 until August 2007 (5695

t-Glassmonth) and 12 month

FfueliBP 2220 kLy

Multiply average value for heavy oil consumption

from January 2005 until August 2007 (1850

t-FOmonth) and 12 month then divide by conversion

factor (094 Ralacorsquos operating value)

HVfueli 419 GJkL 2006 IPCC Guidelines for National Greenhouse Gas

Inventories

CFfueli 00195 t-CGJ 2006 IPCC Guidelines for National Greenhouse Gas

Inventories

ELBP 0 MWhy No consumption before the project

CFelectricity 05408 t-CO2MWh Official announcement value of Ministry of Natural

Resources and Environment 2011

Calculation of Project Emissions

EMPJ = EMPJ_fuel EMPJ_electricity

=

i

ifuelifuelPJifuel CFHVF12

44 + ELPJ CFelectricity

EMPJ Project CO2 emission in year y [t-CO2y]

EMPJ_fuel Project CO2 emission from the fossil fuel in year y [t-CO2y]

EMPJ_electricity Project CO2 emission from the grid electricity in year y [t-CO2y]

FfueliPJ Project consumption of fossil fuel source i in year y

[1000Nm3y or ty or kLy]

HVfueli Net calorific value of fossil fuel source i [GJ1000Nm3 or t or kL]

CFfueli Carbon emission factor of fossil fuel source i [t-CGJ]

ELPJ Project consumption of the grid electricity in year y [MWhy]

CFelectricity CO2 emission factor of the grid electricity [t-CO2MWh]

Below listed values are used in this project

Parameter Value Unit Notes

EMPJ 5854 t-CO2y Refer above calculation formula

EMPJ_fuel 5383 t-CO2y Refer above calculation formula

EMPJ_electricity 4709 t-CO2y Refer above calculation formula

FfueliPJ 1797 kLy Heavy oil consumption from September 2012

until August 2013

JCM Demonstration Study (DS) 2013 ndash Final Report

lt9gt

Parameter Value Unit Notes

HVfueli 419 GJkL 2006 IPCC Guidelines for National Greenhouse

Gas Inventories

CFfueli 00195 t-CGJ 2006 IPCC Guidelines for National Greenhouse

Gas Inventories

ELPJ 8708 MWhy Grid electricity consumption from September

2012 until August 2013

CFelectricity 05408 t-CO2MWh Official announcement value of Ministry of

Natural Resources and Environment 2011

Calculation of Emission Reduction

ER = ( EMRR - EMPJ ) α

ER CO2 emission reduction in year y [t-CO2y]

EMRR Reference CO2 emission in year y [t-CO2y]

EMPJ Project CO2 emissions in year y [t-CO2y]

α Discount rate of emission reductions []

Provisional value 8

Below listed values are used in this project The emission reduction is computed as 354 t-CO2year

Parameter Value Unit Notes

ER 354 t-CO2y Refer above calculation formula

EMRR 10279 t-CO2y -

EMPJ 5854 t-CO2y -

α 8 Default value (Provisional value)

(2) Development of JCM Project Design Document (PDD)

(i) Environmental Impact Assessment

The MONRE is in charge of Environmental Impact Assessments (hereinafter EIAs) in Viet

Nam Under the Law on Environmental Protection which was completely rewritten in 2005 the

authority to approve EIAs was relegated tomdashdepending on the projects characteristicsmdashthe

Vietnam Environment Association (VEA an organization under the MONRE) central government

ministries and agencies or local agencies

The list of projects requiring the drafting of an EIA report appears in Appendix 1 of the decree on

Detailing and Guiding the Implementation of a Number of Articles of the Law on Environmental

Protection (Decree 802006ND-CP) of August 9 2006 According to this an EIA does not have to

be performed when building a glass furnace

JCM Demonstration Study (DS) 2013 ndash Final Report

lt10gt

(ii) Consultation with Local Stakeholders

In Viet Nam matters such as environmental impacts accompanying project implementation are

generally left to the judgment of the Peoples Committee and public comments are rarely solicited

from employees or local residents For this project as well we told Ralaco several times to question

stakeholders about their opinions as in the past when we aspired to carry out CDM projects

Finally in addition to explaining the automatic fuel-air ratio control system to furnace operators

Ralaco gathered local residents for an information session No particularly negative comments were

raised at that time

In this study Furnace B had been equipped with an IFC automatic fuel-air ratio control system

that had already demonstrated results so the plant employees generally had a positive attitude about

saving furnace energy Employees commented that they also want to improve energy efficiency for

Furnace C which is slated for an upgrade in 2014 due to its currently extremely high basic units of

energy

(iii) Monitoring Plan

In cooperation with Ralaco we formed a Monitoring Plan for this project which we organized

into the Monitoring Plan Sheet and Monitoring System Sheet

(iv) Calibration of Measuring Instruments

We confirmed that the fuel oil flow meters and electricity meters used in the furnaces as well as

the speed sensors used to calculate production volume are not calibrated This corresponds to all

Option C monitoring Since a margin of error of no more than plus or minus 5 is demanded by

JCM we need to stipulate recalibration for the monitoring system

(3) Project development and implementation

(i) Japanrsquos contribution

According to interviews with the Vietnam Glass Association and suppliers of raw materials for

glass glass production volumemdashprincipally of glass panesmdashhas continued to trend upward in

recent years as well With the greater production of liquid crystal products and other goods coupled

with rising construction demand in recent years additional installations of and renewed demand for

glass furnaces is forecast for the future as well

Japans glass furnaces have extremely high energy consumption efficiency due to technical

expertise accumulated over many years Therefore we can contribute to long-term reductions in

energy consumption as well as the popularization of and advancements in energy-saving technology

for the host country by transferring this sort of technology

Comparing performance and price with other countries technology it is thought that Japan will

compete with Chinese companies who have an advantage in price We confirmed that Ralaco too

has installed glass furnaces equipped with a Chinese-made automatic fuel-air ratio control system

When we inquired with them about initial costs they said Chinese products cost half as much as

Japanese ones and indicated that price or some other incentive would be needed in order to

JCM Demonstration Study (DS) 2013 ndash Final Report

lt11gt

encourage them to install Japanese-made technology

Because of this it is thought that providing a certain percentage of funding such as equipment

subsidies or issuing credit under the JCM system will promote the project and make it valid

In addition Ralaco is proactive in its CSR as exemplified by its release of products with a small

environmental impact It is thought that expectations of a publication effect could also help promote

this project to such companies as a project that applied the JCM framework

(ii) Environmental integrity

This project attempts to raise combustion efficiency and lower fuel consumption by optimizing

the atmospheric ratio of existing melting furnaces Thus by implementing this project there is

thought to be little negative effect in environmental terms and there will be no more than limited

noise and such due to construction accompanying the installation of energy-saving systems As a

positive effect the project will attempt to lessen atmospheric pollution by reducing the usage of

fossil fuels

(iii) Sustainable development in host country

It is believed that demand for glass will continue to grow in the host country Therefore pushing

ahead with the installation of energy-saving glass furnaces can while leading to better efficiency in

energy consumption also help improve the level of energy-saving technology in the long-term thus

enabling a large contribution to the sustainable development of the host country

Page 2: Energy efficiency improvement of glass furnacegec.jp/gec/en/Activities/fs_newmex/2013/2013ds04_rep.pdf · system, Plant engineering (design, supervise of construction, maintenance)

Electricity emission factors Utilize values published by

Vietnamese government

Discount rate of emission reduction Calculate by the difference

of the operating ratio of general technology and high technology

Use for calculation of emission reduction

Calculation

of

reference

emissions

Automatic fuel-air ratio control system (herein referred as general

technology) is diffused above a certain ratio in Vietnam The

reference scenario is set as it is introduced

Monitoring

method

Electricity consumption(kWh) Record the meter of each

furnace every day compare and match with receipt at the end

of month

Heavy oil inflow(kL) Record the value (L) of flowmeter of

each furnace on ledger every day compare and match with

receipt at the end of month

Production volume(t-Glass) Standard weight x cut frequency

(number of revolutions of cutter) for fluorescent light

Standard weight x amount of gob for light bulb Record

these values every day on ledger and conclude them at the

end of month

Result of monitoring

Parameter

(Unit)

Monitoring

Option

Original

Data

Value

Reference Project

Production

volume

(t-Glassyear)

Option C In-house

management

book

6834 9931

Fuel

consumption

(kLyear)

Option C In-house

management

book

2362 1797

Electricity

Consumption

(MWhyear)

Option C In-house

management

book

0 8708

GHG emission reductions Emission reduction= (Reference emission - Project emission) x

Emission reduction discount rate α (provisional figure 8)

Reference emission 10279 t-CO2year

Project emission 5854 t-CO2year

Reduction amount 354 t-CO2year

Environmental impacts This project is not subject to EIA

Air pollutant decreases as fossil fuel combustion amount declines

Promotion of Japanese When in comparison of capability and price with technologies

technologies from abroad Chinese is competitive being superior in price

Initial cost for Chinese facility is as half as Japanese that we need

some sort of incentives in price and so on in order to promote

Japanese technology

Sustainable development

in host country

Glass production volume focusing on plate glass has been

increasing currently in Vietnam Further demand for extension

and renovation of glass furnace is expected with current rise of

architectural demand and production volume expansion of items

with display Japanese glass furnace has exceedingly high

energy efficiency for technical accumulation of many years

Thus transferring these technologies contributes to the host

country in decreasing energy consumption for long term and

promoting and upgrading of energy efficiency technology

Development and

deployment of similar

projects

More diffusion of energy efficiency for glass furnace is expected

with the sudden rise of energy price regulation by energy

efficiency policy and extension of glass product market

Especially Thailand where there is regulation by energy

efficiency policy and energy price is rising is a promising market

and there are in fact many energy efficiency furnace inquiries

JCM Demonstration Study (DS) 2013 ndash Final Report

lt1gt

JCM Methodology Demonstration Study (PS) 2013

ldquoEnergy efficiency improvement of glass furnacerdquo

(Host country Viet Nam)

Study Entity Ihara Furnace Co Ltd

1Study Implementation Scheme

Rang Dong Light Source and Vacuum Flask Joint Stock Company (Ralaco) demonstration

site

Vietnam Architectural Glass Association provide information concerning trends in the

Vietnamese glass industry

Renova Co Ltd (Renova) assist creation of methodology proposal assist PDD drafting

Proact International Inc (Proact) assist with local market research arrange local research

Japan Quality Assurance Organization (JQA) PDD pre-validation

2Overview of Proposed JCM Project

(1) Description of Project Contents

This project will significantly reduce GHGs for melting furnaces at glass production plants

which consume an extremely large amount of energy by installing the energy-saving technology

described below such as the automatic atmospheric ratio control system and by reducing fuel and

power usage

The project originates from a glass-melting furnace energy-saving proposal implemented in 2005

at Ralaco a major Vietnamese glass products manufacturer in a NEDO study on energy-saving

potential In response to this proposal Ralaco executives highly commended the significant energy

cost reductions from energy saved and decided to install energy-saving furnaces

Afterward although we drafted a PDD for turning the project into a CDM project and it passed

validation it was withdrawn due to remarks added in the registration review by the CDM Executive

Board

Under this situation in order to overcome the aforementioned CDM issues the purpose of this

study is to formulate a proposal for a new MRV methodology for JCM that is based on the basic

unit method and model verification shall be performed at plants involved in this study

(2) Situations of Host Country

(i) Trend of related industry

In addition to light fixtures such as light bulbs and fluorescent lights glass is used for products

such as architectural glass panes automobile glass glass bottles and eating utensils liquid crystal

products and solar cell panels The glass production method is basically the same for each of these

for which high-temperature glass-melting furnaces are used

According to interviews with the Vietnam Glass Association and suppliers of raw materials for

glass production volume in Viet Nammdashprincipally of glass panesmdashhas been expected even in

JCM Demonstration Study (DS) 2013 ndash Final Report

lt2gt

recent years to continue trending upward With the greater production of liquid crystal products and

other goods coupled with rising construction demand in recent years additional installations of and

renewed demand for glass-melting furnaces is forecast for the future as well

(ii) Energy-related policy and its actual condition

Electricity consumption in Vietnam represents about a 14 increase every year and the high rate

of increase will continue for the foreseeable future In particular consumption will grow with

regard to cement manufacturing essential to blast furnace ironworks and infrastructure development

in the future in the industrial and construction fields that account for about 50 of electricity

consumption So the response to expanding electricity consumption is an urgent need and a new

electric power development plan was incorporated in the power development master plan However

the power plant that actually operated as planned represents a low number of 63 and 73 in 2009

and 2010 respectively

(iii) Energy saving-related policy and actual condition

Vietnam has worked to promote the saving of energy for instance as a policy to promote energy

saving a government ordinance concerning efficient use of energy and energy savings was

established in 2003 and a national objectives program for energy saving (2006 to 2015) was

prepared in 2006 However government ordinances are guidelines without legal force and so

effectiveness was poor So the Vietnamese government promulgated the ldquoLaw concerning energy

saving and efficient use of energyrdquo that is equivalent to the Energy Saving Act of Japan in July

2010 and executed it in January 2011 Then implementation and operation of the system will be

promoted in Vietnam for instance the government issued detailed rules of implementation and a

penalty decree and restrictions on designated business operators and guidelines for an

energy-saving labeling system were presented to the Ministry of Commerce and Industry

(iv) Climate change-related policy and its actual condition

A National Climate Change Strategy was executed in December 2011 as a policy superior to the

climate change policy and development of renewable energy energy saving in the industrial

construction and traffic sectors and the rest are included in it Also as a practical response the

National Target Program to Respond to Climate Change (hereinafter referred to as NTP-RCC) was

executed in 2008 and its materialization is currently being promoted NTP-RCC aims to reduce

GHG by 8 (absolute value) in comparison with 2005 by 2020 and MONRE currently takes the

lead in promoting an allocation of target values by sector along with the instruction of concrete

policies together with other ministries Objectives by industrial sector and by company have not yet

been established and such establishment is not compulsory for business operators at the present

time

JCM Demonstration Study (DS) 2013 ndash Final Report

lt3gt

3 Study Contents

(1) JCM methodology development

(i) Eligibility criteria

Below listed is the eligibility criterion for the methodology proposal Ver30

Table The eligibility criterion for the methodology proposal Ver30

Criterion Content Purpose

Criterion 1 All of core technologies and two or more

of the following other technologies are

introduced in implementing the project

- Core technologies Automatic fuel-air

ratio control system Furnace pressure

control system Glass level control

system

- Other technologies Tertiary air inflow

prevention burner Cullet preheating

system Electric boosting system Rapid

heating system Plant engineering (design

supervise of construction maintenance)

by companies with high technologies

After field study it turned out that the

diffusion of automatic fuel-air ratio

control system in Vietnam is above a

certain ratio that reference scenario is

set as it is introduced

Furnace pressure control system is

essential for automatic fuel-air ratio

control system being adequately

functional and glass level control

system is highly influential for yield

of product that it is essential for glass

manufacturing as a core technology

After field study other technologies

turned out to be hardly introduced in

Vietnam so far that meeting this

requirement automatically proves

technical additionality

Criterion 2 The applicable furnace include

manufacturing of glass products

To set target industry

Criterion 3 No drastic changes are made in

manufacturing process and products

before the project implementation and

after the project period

To exclude the possibility of

energy-efficiency-activity-unrelated

fluctuation of energy consumption

original unit in case there is a change

for manufacturing method and

product

Criterion 4 Fossil fuel and grid electricity

consumptions including production of

products are measureable one (1) year

before and after the project

implementation

The data of energy consumption and

production volume in the past and of

production volume during project are

required in order to calculate energy

consumption original unit for

reference

The data of fossil fuel and electricity

consumption is required in order to

JCM Demonstration Study (DS) 2013 ndash Final Report

lt4gt

Criterion Content Purpose

calculate project emission

(ii) Data and parameters fixed ex ante

For reference emissions energy consumption per unit of production volume (A) is fixed

according to ex ante parameters while the GHG emissions coefficient of fossil fuels (B) the GHG

emissions coefficient of grid power (C) and the rate of emissions reduction (D) are set to default

values

(A) is a calculation of basic units of energy consumption (basic units) from energy consumption

data and production volume data of the relevant Ralaco furnaces prior to project implementation

The result of a calculation utilizing data from January 2005 to August 2007 (prior to energy-saving

furnace installation) is a basic unit of 3326 kg of fuel oil per ton of glass

For (B) the IPCCs default values which are thought to be reliable were applied

For (C) the latest combined margin figure (05408 t-CO2MWh) the Vietnamese Ministry of

Natural Resources (MONRE) put together in 2011 was applied

For (D) details are given below in the calculation of emissions reductions but the GHG

reduction results differ due to a disparity between the technical products and services to fulfill

Eligibility Criteria 1 and the atmospheric ratio control systems whose popularization is currently

permitted in Viet Nam beyond a certain ratio and we are considering assessing the capacity

utilization of the automatic atmospheric ratio control system that will be the core technology

(iii) Result of actual monitoring

Below are the Monitoring Plan and Monitoring Implementation Results at the demonstration

plant These were compiled into the PDD and pre-validated by the Japan Quality Assurance

Organization

Monitoring Plan

The monitoring points monitoring parameters and monitoring system were configured and

constructed as follows and verified

JCM Demonstration Study (DS) 2013 ndash Final Report

lt5gt

Figure Monitoring points

Table Monitoring parameter

Parameter Description Frequency and media for

monitoring Notes

1 Heavy Oil

Inflow amount

Record values of flow

meter (L) of each furnace

on a ledger every day and

compare them with

receipts at the end of

month

Adjust the inflow amount by

dividing the disparity between

tank and the integrated value of

flow meter with activity ratio of

each furnace

2 Electricity Usage Record integrating

wattmeter of each furnace

every day and compare

them with bills at the end

of month

Integrating wattmeter of each

furnace would be checked by

EVN at the end of month and

bills would be issued

Electricity usage in forming step

not included

3 Production

Volume (Melting

amount base)

Fluorescent Light

Production speed (length

per minute) working

hours standard weight

Electric Light Bulb

Production speed (numbers

per minute) working

hours standard weight

Refer monitoring parameter 4

regarding the standard weight

Warehouse

Furnace

Tank

1

Beer

Product3rsquo

Heavy oil

Forming

bill

Flow meter

X g-GlassY g-Glass

44

Factory

Electricity

3

Monitoring point

Monitoring point

for cross check

1rsquo

Electricity meter2

1 Heavy oil inflow amount

2 Electricity usage

3 Product number

4 Standard weight

JCM Demonstration Study (DS) 2013 ndash Final Report

lt6gt

Parameter Description Frequency and media for

monitoring Notes

Record above stated on a

ledger every day and

conclude them at the end

of month

4 Weight per

article

Grasping by sampling No quality standard

regarding weight On the other

hand the standard on profound

of tube does exist measure

weight as first screening

Figure Monitoring structure

Monitoring Implementation Results

These are the results of the monitoring implemented in this project

Table Monitoring Implementation Results

Parameter (Unit) Monitoring

Option Original Data

Values

Reference Project

Production

volume

(t-Glassyr)

Option C company control

records

6834 9931

Fuel usage

(kLyr)

Option C company control

records

2362 1797

Head Quarter

Accounting Dept

Heavy oil

Manager

Electricity

Manager

Production

Manager

Shipping

Manager

Factory

Manager

Daily and monthly report

Monthly report

bull Data collection

bull Compile data for reporting

bull Compile

consumption data

of each furnace

bull Compile

consumption data

of each furnace

bull Compile melting

volume of each

furnace

bull Compile shipping

data

JCM Demonstration Study (DS) 2013 ndash Final Report

lt7gt

Parameter (Unit) Monitoring

Option Original Data

Values

Reference Project

Power usage

(MWhyr)

Option C company control

records

0 8708

(iv) Calculation of GHG emissions (including reference and project emissions)

Calculation of Reference Emissions

EMRR = SEMBP POPJ

EMRR Reference CO2 emission in year y [t-CO2y]

SEMBP Specific CO2 emission from the energy source before the project

[t-CO2 t-Glass]

POPJ Production volume of project activity in year y [t-Glassyear]

Below listed values are used in this project

Parameter Value Unit Notes

EMRR 10279 t-CO2y Refer above calculation formula

SEMBP 1035 t-CO2 t-Glass Refer below calculation formula

POPJ 9931 t-Glassyear Production from September 2012 until August 2013

SEMBP = (EMBP_fuel EMBP_electricity) POBP

=

i

ifuelifuelBPifuel CFHVF12

44 + ELBP CFelectricity POBP

EMBP_fuel CO2 emission from the fossil fuel before the project [t-CO2y]

EMBP_electricity CO2 emission from the grid electricity before the project [t-CO2y]

POBP Production volume before the project [t-Glassyear]

FfueliBP Fossil fuel consumption before the project [1000Nm3y or ty or kLy]

HVfueli Net calorific value of fossil fuel i [GJ1000Nm3 or t or kL]

CFfueli Carbon emission factor of fossil fuel i [t-CGJ]

ELBP Grid electricity consumption before the project [MWhy]

CFelectricity CO2 emission factor of the grid electricity [t-CO2MWh]

Below listed values are used in this project

Parameter Value Unit Notes

SEMBP 1035 t-CO2t-Glass -

EMBP_fuel 18864 t-CO2y -

EMBP_electricity 0 t-CO2y -

JCM Demonstration Study (DS) 2013 ndash Final Report

lt8gt

Parameter Value Unit Notes

POBP 6834 t-Glassy

Multiply average value for production volume from

January 2005 until August 2007 (5695

t-Glassmonth) and 12 month

FfueliBP 2220 kLy

Multiply average value for heavy oil consumption

from January 2005 until August 2007 (1850

t-FOmonth) and 12 month then divide by conversion

factor (094 Ralacorsquos operating value)

HVfueli 419 GJkL 2006 IPCC Guidelines for National Greenhouse Gas

Inventories

CFfueli 00195 t-CGJ 2006 IPCC Guidelines for National Greenhouse Gas

Inventories

ELBP 0 MWhy No consumption before the project

CFelectricity 05408 t-CO2MWh Official announcement value of Ministry of Natural

Resources and Environment 2011

Calculation of Project Emissions

EMPJ = EMPJ_fuel EMPJ_electricity

=

i

ifuelifuelPJifuel CFHVF12

44 + ELPJ CFelectricity

EMPJ Project CO2 emission in year y [t-CO2y]

EMPJ_fuel Project CO2 emission from the fossil fuel in year y [t-CO2y]

EMPJ_electricity Project CO2 emission from the grid electricity in year y [t-CO2y]

FfueliPJ Project consumption of fossil fuel source i in year y

[1000Nm3y or ty or kLy]

HVfueli Net calorific value of fossil fuel source i [GJ1000Nm3 or t or kL]

CFfueli Carbon emission factor of fossil fuel source i [t-CGJ]

ELPJ Project consumption of the grid electricity in year y [MWhy]

CFelectricity CO2 emission factor of the grid electricity [t-CO2MWh]

Below listed values are used in this project

Parameter Value Unit Notes

EMPJ 5854 t-CO2y Refer above calculation formula

EMPJ_fuel 5383 t-CO2y Refer above calculation formula

EMPJ_electricity 4709 t-CO2y Refer above calculation formula

FfueliPJ 1797 kLy Heavy oil consumption from September 2012

until August 2013

JCM Demonstration Study (DS) 2013 ndash Final Report

lt9gt

Parameter Value Unit Notes

HVfueli 419 GJkL 2006 IPCC Guidelines for National Greenhouse

Gas Inventories

CFfueli 00195 t-CGJ 2006 IPCC Guidelines for National Greenhouse

Gas Inventories

ELPJ 8708 MWhy Grid electricity consumption from September

2012 until August 2013

CFelectricity 05408 t-CO2MWh Official announcement value of Ministry of

Natural Resources and Environment 2011

Calculation of Emission Reduction

ER = ( EMRR - EMPJ ) α

ER CO2 emission reduction in year y [t-CO2y]

EMRR Reference CO2 emission in year y [t-CO2y]

EMPJ Project CO2 emissions in year y [t-CO2y]

α Discount rate of emission reductions []

Provisional value 8

Below listed values are used in this project The emission reduction is computed as 354 t-CO2year

Parameter Value Unit Notes

ER 354 t-CO2y Refer above calculation formula

EMRR 10279 t-CO2y -

EMPJ 5854 t-CO2y -

α 8 Default value (Provisional value)

(2) Development of JCM Project Design Document (PDD)

(i) Environmental Impact Assessment

The MONRE is in charge of Environmental Impact Assessments (hereinafter EIAs) in Viet

Nam Under the Law on Environmental Protection which was completely rewritten in 2005 the

authority to approve EIAs was relegated tomdashdepending on the projects characteristicsmdashthe

Vietnam Environment Association (VEA an organization under the MONRE) central government

ministries and agencies or local agencies

The list of projects requiring the drafting of an EIA report appears in Appendix 1 of the decree on

Detailing and Guiding the Implementation of a Number of Articles of the Law on Environmental

Protection (Decree 802006ND-CP) of August 9 2006 According to this an EIA does not have to

be performed when building a glass furnace

JCM Demonstration Study (DS) 2013 ndash Final Report

lt10gt

(ii) Consultation with Local Stakeholders

In Viet Nam matters such as environmental impacts accompanying project implementation are

generally left to the judgment of the Peoples Committee and public comments are rarely solicited

from employees or local residents For this project as well we told Ralaco several times to question

stakeholders about their opinions as in the past when we aspired to carry out CDM projects

Finally in addition to explaining the automatic fuel-air ratio control system to furnace operators

Ralaco gathered local residents for an information session No particularly negative comments were

raised at that time

In this study Furnace B had been equipped with an IFC automatic fuel-air ratio control system

that had already demonstrated results so the plant employees generally had a positive attitude about

saving furnace energy Employees commented that they also want to improve energy efficiency for

Furnace C which is slated for an upgrade in 2014 due to its currently extremely high basic units of

energy

(iii) Monitoring Plan

In cooperation with Ralaco we formed a Monitoring Plan for this project which we organized

into the Monitoring Plan Sheet and Monitoring System Sheet

(iv) Calibration of Measuring Instruments

We confirmed that the fuel oil flow meters and electricity meters used in the furnaces as well as

the speed sensors used to calculate production volume are not calibrated This corresponds to all

Option C monitoring Since a margin of error of no more than plus or minus 5 is demanded by

JCM we need to stipulate recalibration for the monitoring system

(3) Project development and implementation

(i) Japanrsquos contribution

According to interviews with the Vietnam Glass Association and suppliers of raw materials for

glass glass production volumemdashprincipally of glass panesmdashhas continued to trend upward in

recent years as well With the greater production of liquid crystal products and other goods coupled

with rising construction demand in recent years additional installations of and renewed demand for

glass furnaces is forecast for the future as well

Japans glass furnaces have extremely high energy consumption efficiency due to technical

expertise accumulated over many years Therefore we can contribute to long-term reductions in

energy consumption as well as the popularization of and advancements in energy-saving technology

for the host country by transferring this sort of technology

Comparing performance and price with other countries technology it is thought that Japan will

compete with Chinese companies who have an advantage in price We confirmed that Ralaco too

has installed glass furnaces equipped with a Chinese-made automatic fuel-air ratio control system

When we inquired with them about initial costs they said Chinese products cost half as much as

Japanese ones and indicated that price or some other incentive would be needed in order to

JCM Demonstration Study (DS) 2013 ndash Final Report

lt11gt

encourage them to install Japanese-made technology

Because of this it is thought that providing a certain percentage of funding such as equipment

subsidies or issuing credit under the JCM system will promote the project and make it valid

In addition Ralaco is proactive in its CSR as exemplified by its release of products with a small

environmental impact It is thought that expectations of a publication effect could also help promote

this project to such companies as a project that applied the JCM framework

(ii) Environmental integrity

This project attempts to raise combustion efficiency and lower fuel consumption by optimizing

the atmospheric ratio of existing melting furnaces Thus by implementing this project there is

thought to be little negative effect in environmental terms and there will be no more than limited

noise and such due to construction accompanying the installation of energy-saving systems As a

positive effect the project will attempt to lessen atmospheric pollution by reducing the usage of

fossil fuels

(iii) Sustainable development in host country

It is believed that demand for glass will continue to grow in the host country Therefore pushing

ahead with the installation of energy-saving glass furnaces can while leading to better efficiency in

energy consumption also help improve the level of energy-saving technology in the long-term thus

enabling a large contribution to the sustainable development of the host country

Page 3: Energy efficiency improvement of glass furnacegec.jp/gec/en/Activities/fs_newmex/2013/2013ds04_rep.pdf · system, Plant engineering (design, supervise of construction, maintenance)

technologies from abroad Chinese is competitive being superior in price

Initial cost for Chinese facility is as half as Japanese that we need

some sort of incentives in price and so on in order to promote

Japanese technology

Sustainable development

in host country

Glass production volume focusing on plate glass has been

increasing currently in Vietnam Further demand for extension

and renovation of glass furnace is expected with current rise of

architectural demand and production volume expansion of items

with display Japanese glass furnace has exceedingly high

energy efficiency for technical accumulation of many years

Thus transferring these technologies contributes to the host

country in decreasing energy consumption for long term and

promoting and upgrading of energy efficiency technology

Development and

deployment of similar

projects

More diffusion of energy efficiency for glass furnace is expected

with the sudden rise of energy price regulation by energy

efficiency policy and extension of glass product market

Especially Thailand where there is regulation by energy

efficiency policy and energy price is rising is a promising market

and there are in fact many energy efficiency furnace inquiries

JCM Demonstration Study (DS) 2013 ndash Final Report

lt1gt

JCM Methodology Demonstration Study (PS) 2013

ldquoEnergy efficiency improvement of glass furnacerdquo

(Host country Viet Nam)

Study Entity Ihara Furnace Co Ltd

1Study Implementation Scheme

Rang Dong Light Source and Vacuum Flask Joint Stock Company (Ralaco) demonstration

site

Vietnam Architectural Glass Association provide information concerning trends in the

Vietnamese glass industry

Renova Co Ltd (Renova) assist creation of methodology proposal assist PDD drafting

Proact International Inc (Proact) assist with local market research arrange local research

Japan Quality Assurance Organization (JQA) PDD pre-validation

2Overview of Proposed JCM Project

(1) Description of Project Contents

This project will significantly reduce GHGs for melting furnaces at glass production plants

which consume an extremely large amount of energy by installing the energy-saving technology

described below such as the automatic atmospheric ratio control system and by reducing fuel and

power usage

The project originates from a glass-melting furnace energy-saving proposal implemented in 2005

at Ralaco a major Vietnamese glass products manufacturer in a NEDO study on energy-saving

potential In response to this proposal Ralaco executives highly commended the significant energy

cost reductions from energy saved and decided to install energy-saving furnaces

Afterward although we drafted a PDD for turning the project into a CDM project and it passed

validation it was withdrawn due to remarks added in the registration review by the CDM Executive

Board

Under this situation in order to overcome the aforementioned CDM issues the purpose of this

study is to formulate a proposal for a new MRV methodology for JCM that is based on the basic

unit method and model verification shall be performed at plants involved in this study

(2) Situations of Host Country

(i) Trend of related industry

In addition to light fixtures such as light bulbs and fluorescent lights glass is used for products

such as architectural glass panes automobile glass glass bottles and eating utensils liquid crystal

products and solar cell panels The glass production method is basically the same for each of these

for which high-temperature glass-melting furnaces are used

According to interviews with the Vietnam Glass Association and suppliers of raw materials for

glass production volume in Viet Nammdashprincipally of glass panesmdashhas been expected even in

JCM Demonstration Study (DS) 2013 ndash Final Report

lt2gt

recent years to continue trending upward With the greater production of liquid crystal products and

other goods coupled with rising construction demand in recent years additional installations of and

renewed demand for glass-melting furnaces is forecast for the future as well

(ii) Energy-related policy and its actual condition

Electricity consumption in Vietnam represents about a 14 increase every year and the high rate

of increase will continue for the foreseeable future In particular consumption will grow with

regard to cement manufacturing essential to blast furnace ironworks and infrastructure development

in the future in the industrial and construction fields that account for about 50 of electricity

consumption So the response to expanding electricity consumption is an urgent need and a new

electric power development plan was incorporated in the power development master plan However

the power plant that actually operated as planned represents a low number of 63 and 73 in 2009

and 2010 respectively

(iii) Energy saving-related policy and actual condition

Vietnam has worked to promote the saving of energy for instance as a policy to promote energy

saving a government ordinance concerning efficient use of energy and energy savings was

established in 2003 and a national objectives program for energy saving (2006 to 2015) was

prepared in 2006 However government ordinances are guidelines without legal force and so

effectiveness was poor So the Vietnamese government promulgated the ldquoLaw concerning energy

saving and efficient use of energyrdquo that is equivalent to the Energy Saving Act of Japan in July

2010 and executed it in January 2011 Then implementation and operation of the system will be

promoted in Vietnam for instance the government issued detailed rules of implementation and a

penalty decree and restrictions on designated business operators and guidelines for an

energy-saving labeling system were presented to the Ministry of Commerce and Industry

(iv) Climate change-related policy and its actual condition

A National Climate Change Strategy was executed in December 2011 as a policy superior to the

climate change policy and development of renewable energy energy saving in the industrial

construction and traffic sectors and the rest are included in it Also as a practical response the

National Target Program to Respond to Climate Change (hereinafter referred to as NTP-RCC) was

executed in 2008 and its materialization is currently being promoted NTP-RCC aims to reduce

GHG by 8 (absolute value) in comparison with 2005 by 2020 and MONRE currently takes the

lead in promoting an allocation of target values by sector along with the instruction of concrete

policies together with other ministries Objectives by industrial sector and by company have not yet

been established and such establishment is not compulsory for business operators at the present

time

JCM Demonstration Study (DS) 2013 ndash Final Report

lt3gt

3 Study Contents

(1) JCM methodology development

(i) Eligibility criteria

Below listed is the eligibility criterion for the methodology proposal Ver30

Table The eligibility criterion for the methodology proposal Ver30

Criterion Content Purpose

Criterion 1 All of core technologies and two or more

of the following other technologies are

introduced in implementing the project

- Core technologies Automatic fuel-air

ratio control system Furnace pressure

control system Glass level control

system

- Other technologies Tertiary air inflow

prevention burner Cullet preheating

system Electric boosting system Rapid

heating system Plant engineering (design

supervise of construction maintenance)

by companies with high technologies

After field study it turned out that the

diffusion of automatic fuel-air ratio

control system in Vietnam is above a

certain ratio that reference scenario is

set as it is introduced

Furnace pressure control system is

essential for automatic fuel-air ratio

control system being adequately

functional and glass level control

system is highly influential for yield

of product that it is essential for glass

manufacturing as a core technology

After field study other technologies

turned out to be hardly introduced in

Vietnam so far that meeting this

requirement automatically proves

technical additionality

Criterion 2 The applicable furnace include

manufacturing of glass products

To set target industry

Criterion 3 No drastic changes are made in

manufacturing process and products

before the project implementation and

after the project period

To exclude the possibility of

energy-efficiency-activity-unrelated

fluctuation of energy consumption

original unit in case there is a change

for manufacturing method and

product

Criterion 4 Fossil fuel and grid electricity

consumptions including production of

products are measureable one (1) year

before and after the project

implementation

The data of energy consumption and

production volume in the past and of

production volume during project are

required in order to calculate energy

consumption original unit for

reference

The data of fossil fuel and electricity

consumption is required in order to

JCM Demonstration Study (DS) 2013 ndash Final Report

lt4gt

Criterion Content Purpose

calculate project emission

(ii) Data and parameters fixed ex ante

For reference emissions energy consumption per unit of production volume (A) is fixed

according to ex ante parameters while the GHG emissions coefficient of fossil fuels (B) the GHG

emissions coefficient of grid power (C) and the rate of emissions reduction (D) are set to default

values

(A) is a calculation of basic units of energy consumption (basic units) from energy consumption

data and production volume data of the relevant Ralaco furnaces prior to project implementation

The result of a calculation utilizing data from January 2005 to August 2007 (prior to energy-saving

furnace installation) is a basic unit of 3326 kg of fuel oil per ton of glass

For (B) the IPCCs default values which are thought to be reliable were applied

For (C) the latest combined margin figure (05408 t-CO2MWh) the Vietnamese Ministry of

Natural Resources (MONRE) put together in 2011 was applied

For (D) details are given below in the calculation of emissions reductions but the GHG

reduction results differ due to a disparity between the technical products and services to fulfill

Eligibility Criteria 1 and the atmospheric ratio control systems whose popularization is currently

permitted in Viet Nam beyond a certain ratio and we are considering assessing the capacity

utilization of the automatic atmospheric ratio control system that will be the core technology

(iii) Result of actual monitoring

Below are the Monitoring Plan and Monitoring Implementation Results at the demonstration

plant These were compiled into the PDD and pre-validated by the Japan Quality Assurance

Organization

Monitoring Plan

The monitoring points monitoring parameters and monitoring system were configured and

constructed as follows and verified

JCM Demonstration Study (DS) 2013 ndash Final Report

lt5gt

Figure Monitoring points

Table Monitoring parameter

Parameter Description Frequency and media for

monitoring Notes

1 Heavy Oil

Inflow amount

Record values of flow

meter (L) of each furnace

on a ledger every day and

compare them with

receipts at the end of

month

Adjust the inflow amount by

dividing the disparity between

tank and the integrated value of

flow meter with activity ratio of

each furnace

2 Electricity Usage Record integrating

wattmeter of each furnace

every day and compare

them with bills at the end

of month

Integrating wattmeter of each

furnace would be checked by

EVN at the end of month and

bills would be issued

Electricity usage in forming step

not included

3 Production

Volume (Melting

amount base)

Fluorescent Light

Production speed (length

per minute) working

hours standard weight

Electric Light Bulb

Production speed (numbers

per minute) working

hours standard weight

Refer monitoring parameter 4

regarding the standard weight

Warehouse

Furnace

Tank

1

Beer

Product3rsquo

Heavy oil

Forming

bill

Flow meter

X g-GlassY g-Glass

44

Factory

Electricity

3

Monitoring point

Monitoring point

for cross check

1rsquo

Electricity meter2

1 Heavy oil inflow amount

2 Electricity usage

3 Product number

4 Standard weight

JCM Demonstration Study (DS) 2013 ndash Final Report

lt6gt

Parameter Description Frequency and media for

monitoring Notes

Record above stated on a

ledger every day and

conclude them at the end

of month

4 Weight per

article

Grasping by sampling No quality standard

regarding weight On the other

hand the standard on profound

of tube does exist measure

weight as first screening

Figure Monitoring structure

Monitoring Implementation Results

These are the results of the monitoring implemented in this project

Table Monitoring Implementation Results

Parameter (Unit) Monitoring

Option Original Data

Values

Reference Project

Production

volume

(t-Glassyr)

Option C company control

records

6834 9931

Fuel usage

(kLyr)

Option C company control

records

2362 1797

Head Quarter

Accounting Dept

Heavy oil

Manager

Electricity

Manager

Production

Manager

Shipping

Manager

Factory

Manager

Daily and monthly report

Monthly report

bull Data collection

bull Compile data for reporting

bull Compile

consumption data

of each furnace

bull Compile

consumption data

of each furnace

bull Compile melting

volume of each

furnace

bull Compile shipping

data

JCM Demonstration Study (DS) 2013 ndash Final Report

lt7gt

Parameter (Unit) Monitoring

Option Original Data

Values

Reference Project

Power usage

(MWhyr)

Option C company control

records

0 8708

(iv) Calculation of GHG emissions (including reference and project emissions)

Calculation of Reference Emissions

EMRR = SEMBP POPJ

EMRR Reference CO2 emission in year y [t-CO2y]

SEMBP Specific CO2 emission from the energy source before the project

[t-CO2 t-Glass]

POPJ Production volume of project activity in year y [t-Glassyear]

Below listed values are used in this project

Parameter Value Unit Notes

EMRR 10279 t-CO2y Refer above calculation formula

SEMBP 1035 t-CO2 t-Glass Refer below calculation formula

POPJ 9931 t-Glassyear Production from September 2012 until August 2013

SEMBP = (EMBP_fuel EMBP_electricity) POBP

=

i

ifuelifuelBPifuel CFHVF12

44 + ELBP CFelectricity POBP

EMBP_fuel CO2 emission from the fossil fuel before the project [t-CO2y]

EMBP_electricity CO2 emission from the grid electricity before the project [t-CO2y]

POBP Production volume before the project [t-Glassyear]

FfueliBP Fossil fuel consumption before the project [1000Nm3y or ty or kLy]

HVfueli Net calorific value of fossil fuel i [GJ1000Nm3 or t or kL]

CFfueli Carbon emission factor of fossil fuel i [t-CGJ]

ELBP Grid electricity consumption before the project [MWhy]

CFelectricity CO2 emission factor of the grid electricity [t-CO2MWh]

Below listed values are used in this project

Parameter Value Unit Notes

SEMBP 1035 t-CO2t-Glass -

EMBP_fuel 18864 t-CO2y -

EMBP_electricity 0 t-CO2y -

JCM Demonstration Study (DS) 2013 ndash Final Report

lt8gt

Parameter Value Unit Notes

POBP 6834 t-Glassy

Multiply average value for production volume from

January 2005 until August 2007 (5695

t-Glassmonth) and 12 month

FfueliBP 2220 kLy

Multiply average value for heavy oil consumption

from January 2005 until August 2007 (1850

t-FOmonth) and 12 month then divide by conversion

factor (094 Ralacorsquos operating value)

HVfueli 419 GJkL 2006 IPCC Guidelines for National Greenhouse Gas

Inventories

CFfueli 00195 t-CGJ 2006 IPCC Guidelines for National Greenhouse Gas

Inventories

ELBP 0 MWhy No consumption before the project

CFelectricity 05408 t-CO2MWh Official announcement value of Ministry of Natural

Resources and Environment 2011

Calculation of Project Emissions

EMPJ = EMPJ_fuel EMPJ_electricity

=

i

ifuelifuelPJifuel CFHVF12

44 + ELPJ CFelectricity

EMPJ Project CO2 emission in year y [t-CO2y]

EMPJ_fuel Project CO2 emission from the fossil fuel in year y [t-CO2y]

EMPJ_electricity Project CO2 emission from the grid electricity in year y [t-CO2y]

FfueliPJ Project consumption of fossil fuel source i in year y

[1000Nm3y or ty or kLy]

HVfueli Net calorific value of fossil fuel source i [GJ1000Nm3 or t or kL]

CFfueli Carbon emission factor of fossil fuel source i [t-CGJ]

ELPJ Project consumption of the grid electricity in year y [MWhy]

CFelectricity CO2 emission factor of the grid electricity [t-CO2MWh]

Below listed values are used in this project

Parameter Value Unit Notes

EMPJ 5854 t-CO2y Refer above calculation formula

EMPJ_fuel 5383 t-CO2y Refer above calculation formula

EMPJ_electricity 4709 t-CO2y Refer above calculation formula

FfueliPJ 1797 kLy Heavy oil consumption from September 2012

until August 2013

JCM Demonstration Study (DS) 2013 ndash Final Report

lt9gt

Parameter Value Unit Notes

HVfueli 419 GJkL 2006 IPCC Guidelines for National Greenhouse

Gas Inventories

CFfueli 00195 t-CGJ 2006 IPCC Guidelines for National Greenhouse

Gas Inventories

ELPJ 8708 MWhy Grid electricity consumption from September

2012 until August 2013

CFelectricity 05408 t-CO2MWh Official announcement value of Ministry of

Natural Resources and Environment 2011

Calculation of Emission Reduction

ER = ( EMRR - EMPJ ) α

ER CO2 emission reduction in year y [t-CO2y]

EMRR Reference CO2 emission in year y [t-CO2y]

EMPJ Project CO2 emissions in year y [t-CO2y]

α Discount rate of emission reductions []

Provisional value 8

Below listed values are used in this project The emission reduction is computed as 354 t-CO2year

Parameter Value Unit Notes

ER 354 t-CO2y Refer above calculation formula

EMRR 10279 t-CO2y -

EMPJ 5854 t-CO2y -

α 8 Default value (Provisional value)

(2) Development of JCM Project Design Document (PDD)

(i) Environmental Impact Assessment

The MONRE is in charge of Environmental Impact Assessments (hereinafter EIAs) in Viet

Nam Under the Law on Environmental Protection which was completely rewritten in 2005 the

authority to approve EIAs was relegated tomdashdepending on the projects characteristicsmdashthe

Vietnam Environment Association (VEA an organization under the MONRE) central government

ministries and agencies or local agencies

The list of projects requiring the drafting of an EIA report appears in Appendix 1 of the decree on

Detailing and Guiding the Implementation of a Number of Articles of the Law on Environmental

Protection (Decree 802006ND-CP) of August 9 2006 According to this an EIA does not have to

be performed when building a glass furnace

JCM Demonstration Study (DS) 2013 ndash Final Report

lt10gt

(ii) Consultation with Local Stakeholders

In Viet Nam matters such as environmental impacts accompanying project implementation are

generally left to the judgment of the Peoples Committee and public comments are rarely solicited

from employees or local residents For this project as well we told Ralaco several times to question

stakeholders about their opinions as in the past when we aspired to carry out CDM projects

Finally in addition to explaining the automatic fuel-air ratio control system to furnace operators

Ralaco gathered local residents for an information session No particularly negative comments were

raised at that time

In this study Furnace B had been equipped with an IFC automatic fuel-air ratio control system

that had already demonstrated results so the plant employees generally had a positive attitude about

saving furnace energy Employees commented that they also want to improve energy efficiency for

Furnace C which is slated for an upgrade in 2014 due to its currently extremely high basic units of

energy

(iii) Monitoring Plan

In cooperation with Ralaco we formed a Monitoring Plan for this project which we organized

into the Monitoring Plan Sheet and Monitoring System Sheet

(iv) Calibration of Measuring Instruments

We confirmed that the fuel oil flow meters and electricity meters used in the furnaces as well as

the speed sensors used to calculate production volume are not calibrated This corresponds to all

Option C monitoring Since a margin of error of no more than plus or minus 5 is demanded by

JCM we need to stipulate recalibration for the monitoring system

(3) Project development and implementation

(i) Japanrsquos contribution

According to interviews with the Vietnam Glass Association and suppliers of raw materials for

glass glass production volumemdashprincipally of glass panesmdashhas continued to trend upward in

recent years as well With the greater production of liquid crystal products and other goods coupled

with rising construction demand in recent years additional installations of and renewed demand for

glass furnaces is forecast for the future as well

Japans glass furnaces have extremely high energy consumption efficiency due to technical

expertise accumulated over many years Therefore we can contribute to long-term reductions in

energy consumption as well as the popularization of and advancements in energy-saving technology

for the host country by transferring this sort of technology

Comparing performance and price with other countries technology it is thought that Japan will

compete with Chinese companies who have an advantage in price We confirmed that Ralaco too

has installed glass furnaces equipped with a Chinese-made automatic fuel-air ratio control system

When we inquired with them about initial costs they said Chinese products cost half as much as

Japanese ones and indicated that price or some other incentive would be needed in order to

JCM Demonstration Study (DS) 2013 ndash Final Report

lt11gt

encourage them to install Japanese-made technology

Because of this it is thought that providing a certain percentage of funding such as equipment

subsidies or issuing credit under the JCM system will promote the project and make it valid

In addition Ralaco is proactive in its CSR as exemplified by its release of products with a small

environmental impact It is thought that expectations of a publication effect could also help promote

this project to such companies as a project that applied the JCM framework

(ii) Environmental integrity

This project attempts to raise combustion efficiency and lower fuel consumption by optimizing

the atmospheric ratio of existing melting furnaces Thus by implementing this project there is

thought to be little negative effect in environmental terms and there will be no more than limited

noise and such due to construction accompanying the installation of energy-saving systems As a

positive effect the project will attempt to lessen atmospheric pollution by reducing the usage of

fossil fuels

(iii) Sustainable development in host country

It is believed that demand for glass will continue to grow in the host country Therefore pushing

ahead with the installation of energy-saving glass furnaces can while leading to better efficiency in

energy consumption also help improve the level of energy-saving technology in the long-term thus

enabling a large contribution to the sustainable development of the host country

Page 4: Energy efficiency improvement of glass furnacegec.jp/gec/en/Activities/fs_newmex/2013/2013ds04_rep.pdf · system, Plant engineering (design, supervise of construction, maintenance)

JCM Demonstration Study (DS) 2013 ndash Final Report

lt1gt

JCM Methodology Demonstration Study (PS) 2013

ldquoEnergy efficiency improvement of glass furnacerdquo

(Host country Viet Nam)

Study Entity Ihara Furnace Co Ltd

1Study Implementation Scheme

Rang Dong Light Source and Vacuum Flask Joint Stock Company (Ralaco) demonstration

site

Vietnam Architectural Glass Association provide information concerning trends in the

Vietnamese glass industry

Renova Co Ltd (Renova) assist creation of methodology proposal assist PDD drafting

Proact International Inc (Proact) assist with local market research arrange local research

Japan Quality Assurance Organization (JQA) PDD pre-validation

2Overview of Proposed JCM Project

(1) Description of Project Contents

This project will significantly reduce GHGs for melting furnaces at glass production plants

which consume an extremely large amount of energy by installing the energy-saving technology

described below such as the automatic atmospheric ratio control system and by reducing fuel and

power usage

The project originates from a glass-melting furnace energy-saving proposal implemented in 2005

at Ralaco a major Vietnamese glass products manufacturer in a NEDO study on energy-saving

potential In response to this proposal Ralaco executives highly commended the significant energy

cost reductions from energy saved and decided to install energy-saving furnaces

Afterward although we drafted a PDD for turning the project into a CDM project and it passed

validation it was withdrawn due to remarks added in the registration review by the CDM Executive

Board

Under this situation in order to overcome the aforementioned CDM issues the purpose of this

study is to formulate a proposal for a new MRV methodology for JCM that is based on the basic

unit method and model verification shall be performed at plants involved in this study

(2) Situations of Host Country

(i) Trend of related industry

In addition to light fixtures such as light bulbs and fluorescent lights glass is used for products

such as architectural glass panes automobile glass glass bottles and eating utensils liquid crystal

products and solar cell panels The glass production method is basically the same for each of these

for which high-temperature glass-melting furnaces are used

According to interviews with the Vietnam Glass Association and suppliers of raw materials for

glass production volume in Viet Nammdashprincipally of glass panesmdashhas been expected even in

JCM Demonstration Study (DS) 2013 ndash Final Report

lt2gt

recent years to continue trending upward With the greater production of liquid crystal products and

other goods coupled with rising construction demand in recent years additional installations of and

renewed demand for glass-melting furnaces is forecast for the future as well

(ii) Energy-related policy and its actual condition

Electricity consumption in Vietnam represents about a 14 increase every year and the high rate

of increase will continue for the foreseeable future In particular consumption will grow with

regard to cement manufacturing essential to blast furnace ironworks and infrastructure development

in the future in the industrial and construction fields that account for about 50 of electricity

consumption So the response to expanding electricity consumption is an urgent need and a new

electric power development plan was incorporated in the power development master plan However

the power plant that actually operated as planned represents a low number of 63 and 73 in 2009

and 2010 respectively

(iii) Energy saving-related policy and actual condition

Vietnam has worked to promote the saving of energy for instance as a policy to promote energy

saving a government ordinance concerning efficient use of energy and energy savings was

established in 2003 and a national objectives program for energy saving (2006 to 2015) was

prepared in 2006 However government ordinances are guidelines without legal force and so

effectiveness was poor So the Vietnamese government promulgated the ldquoLaw concerning energy

saving and efficient use of energyrdquo that is equivalent to the Energy Saving Act of Japan in July

2010 and executed it in January 2011 Then implementation and operation of the system will be

promoted in Vietnam for instance the government issued detailed rules of implementation and a

penalty decree and restrictions on designated business operators and guidelines for an

energy-saving labeling system were presented to the Ministry of Commerce and Industry

(iv) Climate change-related policy and its actual condition

A National Climate Change Strategy was executed in December 2011 as a policy superior to the

climate change policy and development of renewable energy energy saving in the industrial

construction and traffic sectors and the rest are included in it Also as a practical response the

National Target Program to Respond to Climate Change (hereinafter referred to as NTP-RCC) was

executed in 2008 and its materialization is currently being promoted NTP-RCC aims to reduce

GHG by 8 (absolute value) in comparison with 2005 by 2020 and MONRE currently takes the

lead in promoting an allocation of target values by sector along with the instruction of concrete

policies together with other ministries Objectives by industrial sector and by company have not yet

been established and such establishment is not compulsory for business operators at the present

time

JCM Demonstration Study (DS) 2013 ndash Final Report

lt3gt

3 Study Contents

(1) JCM methodology development

(i) Eligibility criteria

Below listed is the eligibility criterion for the methodology proposal Ver30

Table The eligibility criterion for the methodology proposal Ver30

Criterion Content Purpose

Criterion 1 All of core technologies and two or more

of the following other technologies are

introduced in implementing the project

- Core technologies Automatic fuel-air

ratio control system Furnace pressure

control system Glass level control

system

- Other technologies Tertiary air inflow

prevention burner Cullet preheating

system Electric boosting system Rapid

heating system Plant engineering (design

supervise of construction maintenance)

by companies with high technologies

After field study it turned out that the

diffusion of automatic fuel-air ratio

control system in Vietnam is above a

certain ratio that reference scenario is

set as it is introduced

Furnace pressure control system is

essential for automatic fuel-air ratio

control system being adequately

functional and glass level control

system is highly influential for yield

of product that it is essential for glass

manufacturing as a core technology

After field study other technologies

turned out to be hardly introduced in

Vietnam so far that meeting this

requirement automatically proves

technical additionality

Criterion 2 The applicable furnace include

manufacturing of glass products

To set target industry

Criterion 3 No drastic changes are made in

manufacturing process and products

before the project implementation and

after the project period

To exclude the possibility of

energy-efficiency-activity-unrelated

fluctuation of energy consumption

original unit in case there is a change

for manufacturing method and

product

Criterion 4 Fossil fuel and grid electricity

consumptions including production of

products are measureable one (1) year

before and after the project

implementation

The data of energy consumption and

production volume in the past and of

production volume during project are

required in order to calculate energy

consumption original unit for

reference

The data of fossil fuel and electricity

consumption is required in order to

JCM Demonstration Study (DS) 2013 ndash Final Report

lt4gt

Criterion Content Purpose

calculate project emission

(ii) Data and parameters fixed ex ante

For reference emissions energy consumption per unit of production volume (A) is fixed

according to ex ante parameters while the GHG emissions coefficient of fossil fuels (B) the GHG

emissions coefficient of grid power (C) and the rate of emissions reduction (D) are set to default

values

(A) is a calculation of basic units of energy consumption (basic units) from energy consumption

data and production volume data of the relevant Ralaco furnaces prior to project implementation

The result of a calculation utilizing data from January 2005 to August 2007 (prior to energy-saving

furnace installation) is a basic unit of 3326 kg of fuel oil per ton of glass

For (B) the IPCCs default values which are thought to be reliable were applied

For (C) the latest combined margin figure (05408 t-CO2MWh) the Vietnamese Ministry of

Natural Resources (MONRE) put together in 2011 was applied

For (D) details are given below in the calculation of emissions reductions but the GHG

reduction results differ due to a disparity between the technical products and services to fulfill

Eligibility Criteria 1 and the atmospheric ratio control systems whose popularization is currently

permitted in Viet Nam beyond a certain ratio and we are considering assessing the capacity

utilization of the automatic atmospheric ratio control system that will be the core technology

(iii) Result of actual monitoring

Below are the Monitoring Plan and Monitoring Implementation Results at the demonstration

plant These were compiled into the PDD and pre-validated by the Japan Quality Assurance

Organization

Monitoring Plan

The monitoring points monitoring parameters and monitoring system were configured and

constructed as follows and verified

JCM Demonstration Study (DS) 2013 ndash Final Report

lt5gt

Figure Monitoring points

Table Monitoring parameter

Parameter Description Frequency and media for

monitoring Notes

1 Heavy Oil

Inflow amount

Record values of flow

meter (L) of each furnace

on a ledger every day and

compare them with

receipts at the end of

month

Adjust the inflow amount by

dividing the disparity between

tank and the integrated value of

flow meter with activity ratio of

each furnace

2 Electricity Usage Record integrating

wattmeter of each furnace

every day and compare

them with bills at the end

of month

Integrating wattmeter of each

furnace would be checked by

EVN at the end of month and

bills would be issued

Electricity usage in forming step

not included

3 Production

Volume (Melting

amount base)

Fluorescent Light

Production speed (length

per minute) working

hours standard weight

Electric Light Bulb

Production speed (numbers

per minute) working

hours standard weight

Refer monitoring parameter 4

regarding the standard weight

Warehouse

Furnace

Tank

1

Beer

Product3rsquo

Heavy oil

Forming

bill

Flow meter

X g-GlassY g-Glass

44

Factory

Electricity

3

Monitoring point

Monitoring point

for cross check

1rsquo

Electricity meter2

1 Heavy oil inflow amount

2 Electricity usage

3 Product number

4 Standard weight

JCM Demonstration Study (DS) 2013 ndash Final Report

lt6gt

Parameter Description Frequency and media for

monitoring Notes

Record above stated on a

ledger every day and

conclude them at the end

of month

4 Weight per

article

Grasping by sampling No quality standard

regarding weight On the other

hand the standard on profound

of tube does exist measure

weight as first screening

Figure Monitoring structure

Monitoring Implementation Results

These are the results of the monitoring implemented in this project

Table Monitoring Implementation Results

Parameter (Unit) Monitoring

Option Original Data

Values

Reference Project

Production

volume

(t-Glassyr)

Option C company control

records

6834 9931

Fuel usage

(kLyr)

Option C company control

records

2362 1797

Head Quarter

Accounting Dept

Heavy oil

Manager

Electricity

Manager

Production

Manager

Shipping

Manager

Factory

Manager

Daily and monthly report

Monthly report

bull Data collection

bull Compile data for reporting

bull Compile

consumption data

of each furnace

bull Compile

consumption data

of each furnace

bull Compile melting

volume of each

furnace

bull Compile shipping

data

JCM Demonstration Study (DS) 2013 ndash Final Report

lt7gt

Parameter (Unit) Monitoring

Option Original Data

Values

Reference Project

Power usage

(MWhyr)

Option C company control

records

0 8708

(iv) Calculation of GHG emissions (including reference and project emissions)

Calculation of Reference Emissions

EMRR = SEMBP POPJ

EMRR Reference CO2 emission in year y [t-CO2y]

SEMBP Specific CO2 emission from the energy source before the project

[t-CO2 t-Glass]

POPJ Production volume of project activity in year y [t-Glassyear]

Below listed values are used in this project

Parameter Value Unit Notes

EMRR 10279 t-CO2y Refer above calculation formula

SEMBP 1035 t-CO2 t-Glass Refer below calculation formula

POPJ 9931 t-Glassyear Production from September 2012 until August 2013

SEMBP = (EMBP_fuel EMBP_electricity) POBP

=

i

ifuelifuelBPifuel CFHVF12

44 + ELBP CFelectricity POBP

EMBP_fuel CO2 emission from the fossil fuel before the project [t-CO2y]

EMBP_electricity CO2 emission from the grid electricity before the project [t-CO2y]

POBP Production volume before the project [t-Glassyear]

FfueliBP Fossil fuel consumption before the project [1000Nm3y or ty or kLy]

HVfueli Net calorific value of fossil fuel i [GJ1000Nm3 or t or kL]

CFfueli Carbon emission factor of fossil fuel i [t-CGJ]

ELBP Grid electricity consumption before the project [MWhy]

CFelectricity CO2 emission factor of the grid electricity [t-CO2MWh]

Below listed values are used in this project

Parameter Value Unit Notes

SEMBP 1035 t-CO2t-Glass -

EMBP_fuel 18864 t-CO2y -

EMBP_electricity 0 t-CO2y -

JCM Demonstration Study (DS) 2013 ndash Final Report

lt8gt

Parameter Value Unit Notes

POBP 6834 t-Glassy

Multiply average value for production volume from

January 2005 until August 2007 (5695

t-Glassmonth) and 12 month

FfueliBP 2220 kLy

Multiply average value for heavy oil consumption

from January 2005 until August 2007 (1850

t-FOmonth) and 12 month then divide by conversion

factor (094 Ralacorsquos operating value)

HVfueli 419 GJkL 2006 IPCC Guidelines for National Greenhouse Gas

Inventories

CFfueli 00195 t-CGJ 2006 IPCC Guidelines for National Greenhouse Gas

Inventories

ELBP 0 MWhy No consumption before the project

CFelectricity 05408 t-CO2MWh Official announcement value of Ministry of Natural

Resources and Environment 2011

Calculation of Project Emissions

EMPJ = EMPJ_fuel EMPJ_electricity

=

i

ifuelifuelPJifuel CFHVF12

44 + ELPJ CFelectricity

EMPJ Project CO2 emission in year y [t-CO2y]

EMPJ_fuel Project CO2 emission from the fossil fuel in year y [t-CO2y]

EMPJ_electricity Project CO2 emission from the grid electricity in year y [t-CO2y]

FfueliPJ Project consumption of fossil fuel source i in year y

[1000Nm3y or ty or kLy]

HVfueli Net calorific value of fossil fuel source i [GJ1000Nm3 or t or kL]

CFfueli Carbon emission factor of fossil fuel source i [t-CGJ]

ELPJ Project consumption of the grid electricity in year y [MWhy]

CFelectricity CO2 emission factor of the grid electricity [t-CO2MWh]

Below listed values are used in this project

Parameter Value Unit Notes

EMPJ 5854 t-CO2y Refer above calculation formula

EMPJ_fuel 5383 t-CO2y Refer above calculation formula

EMPJ_electricity 4709 t-CO2y Refer above calculation formula

FfueliPJ 1797 kLy Heavy oil consumption from September 2012

until August 2013

JCM Demonstration Study (DS) 2013 ndash Final Report

lt9gt

Parameter Value Unit Notes

HVfueli 419 GJkL 2006 IPCC Guidelines for National Greenhouse

Gas Inventories

CFfueli 00195 t-CGJ 2006 IPCC Guidelines for National Greenhouse

Gas Inventories

ELPJ 8708 MWhy Grid electricity consumption from September

2012 until August 2013

CFelectricity 05408 t-CO2MWh Official announcement value of Ministry of

Natural Resources and Environment 2011

Calculation of Emission Reduction

ER = ( EMRR - EMPJ ) α

ER CO2 emission reduction in year y [t-CO2y]

EMRR Reference CO2 emission in year y [t-CO2y]

EMPJ Project CO2 emissions in year y [t-CO2y]

α Discount rate of emission reductions []

Provisional value 8

Below listed values are used in this project The emission reduction is computed as 354 t-CO2year

Parameter Value Unit Notes

ER 354 t-CO2y Refer above calculation formula

EMRR 10279 t-CO2y -

EMPJ 5854 t-CO2y -

α 8 Default value (Provisional value)

(2) Development of JCM Project Design Document (PDD)

(i) Environmental Impact Assessment

The MONRE is in charge of Environmental Impact Assessments (hereinafter EIAs) in Viet

Nam Under the Law on Environmental Protection which was completely rewritten in 2005 the

authority to approve EIAs was relegated tomdashdepending on the projects characteristicsmdashthe

Vietnam Environment Association (VEA an organization under the MONRE) central government

ministries and agencies or local agencies

The list of projects requiring the drafting of an EIA report appears in Appendix 1 of the decree on

Detailing and Guiding the Implementation of a Number of Articles of the Law on Environmental

Protection (Decree 802006ND-CP) of August 9 2006 According to this an EIA does not have to

be performed when building a glass furnace

JCM Demonstration Study (DS) 2013 ndash Final Report

lt10gt

(ii) Consultation with Local Stakeholders

In Viet Nam matters such as environmental impacts accompanying project implementation are

generally left to the judgment of the Peoples Committee and public comments are rarely solicited

from employees or local residents For this project as well we told Ralaco several times to question

stakeholders about their opinions as in the past when we aspired to carry out CDM projects

Finally in addition to explaining the automatic fuel-air ratio control system to furnace operators

Ralaco gathered local residents for an information session No particularly negative comments were

raised at that time

In this study Furnace B had been equipped with an IFC automatic fuel-air ratio control system

that had already demonstrated results so the plant employees generally had a positive attitude about

saving furnace energy Employees commented that they also want to improve energy efficiency for

Furnace C which is slated for an upgrade in 2014 due to its currently extremely high basic units of

energy

(iii) Monitoring Plan

In cooperation with Ralaco we formed a Monitoring Plan for this project which we organized

into the Monitoring Plan Sheet and Monitoring System Sheet

(iv) Calibration of Measuring Instruments

We confirmed that the fuel oil flow meters and electricity meters used in the furnaces as well as

the speed sensors used to calculate production volume are not calibrated This corresponds to all

Option C monitoring Since a margin of error of no more than plus or minus 5 is demanded by

JCM we need to stipulate recalibration for the monitoring system

(3) Project development and implementation

(i) Japanrsquos contribution

According to interviews with the Vietnam Glass Association and suppliers of raw materials for

glass glass production volumemdashprincipally of glass panesmdashhas continued to trend upward in

recent years as well With the greater production of liquid crystal products and other goods coupled

with rising construction demand in recent years additional installations of and renewed demand for

glass furnaces is forecast for the future as well

Japans glass furnaces have extremely high energy consumption efficiency due to technical

expertise accumulated over many years Therefore we can contribute to long-term reductions in

energy consumption as well as the popularization of and advancements in energy-saving technology

for the host country by transferring this sort of technology

Comparing performance and price with other countries technology it is thought that Japan will

compete with Chinese companies who have an advantage in price We confirmed that Ralaco too

has installed glass furnaces equipped with a Chinese-made automatic fuel-air ratio control system

When we inquired with them about initial costs they said Chinese products cost half as much as

Japanese ones and indicated that price or some other incentive would be needed in order to

JCM Demonstration Study (DS) 2013 ndash Final Report

lt11gt

encourage them to install Japanese-made technology

Because of this it is thought that providing a certain percentage of funding such as equipment

subsidies or issuing credit under the JCM system will promote the project and make it valid

In addition Ralaco is proactive in its CSR as exemplified by its release of products with a small

environmental impact It is thought that expectations of a publication effect could also help promote

this project to such companies as a project that applied the JCM framework

(ii) Environmental integrity

This project attempts to raise combustion efficiency and lower fuel consumption by optimizing

the atmospheric ratio of existing melting furnaces Thus by implementing this project there is

thought to be little negative effect in environmental terms and there will be no more than limited

noise and such due to construction accompanying the installation of energy-saving systems As a

positive effect the project will attempt to lessen atmospheric pollution by reducing the usage of

fossil fuels

(iii) Sustainable development in host country

It is believed that demand for glass will continue to grow in the host country Therefore pushing

ahead with the installation of energy-saving glass furnaces can while leading to better efficiency in

energy consumption also help improve the level of energy-saving technology in the long-term thus

enabling a large contribution to the sustainable development of the host country

Page 5: Energy efficiency improvement of glass furnacegec.jp/gec/en/Activities/fs_newmex/2013/2013ds04_rep.pdf · system, Plant engineering (design, supervise of construction, maintenance)

JCM Demonstration Study (DS) 2013 ndash Final Report

lt2gt

recent years to continue trending upward With the greater production of liquid crystal products and

other goods coupled with rising construction demand in recent years additional installations of and

renewed demand for glass-melting furnaces is forecast for the future as well

(ii) Energy-related policy and its actual condition

Electricity consumption in Vietnam represents about a 14 increase every year and the high rate

of increase will continue for the foreseeable future In particular consumption will grow with

regard to cement manufacturing essential to blast furnace ironworks and infrastructure development

in the future in the industrial and construction fields that account for about 50 of electricity

consumption So the response to expanding electricity consumption is an urgent need and a new

electric power development plan was incorporated in the power development master plan However

the power plant that actually operated as planned represents a low number of 63 and 73 in 2009

and 2010 respectively

(iii) Energy saving-related policy and actual condition

Vietnam has worked to promote the saving of energy for instance as a policy to promote energy

saving a government ordinance concerning efficient use of energy and energy savings was

established in 2003 and a national objectives program for energy saving (2006 to 2015) was

prepared in 2006 However government ordinances are guidelines without legal force and so

effectiveness was poor So the Vietnamese government promulgated the ldquoLaw concerning energy

saving and efficient use of energyrdquo that is equivalent to the Energy Saving Act of Japan in July

2010 and executed it in January 2011 Then implementation and operation of the system will be

promoted in Vietnam for instance the government issued detailed rules of implementation and a

penalty decree and restrictions on designated business operators and guidelines for an

energy-saving labeling system were presented to the Ministry of Commerce and Industry

(iv) Climate change-related policy and its actual condition

A National Climate Change Strategy was executed in December 2011 as a policy superior to the

climate change policy and development of renewable energy energy saving in the industrial

construction and traffic sectors and the rest are included in it Also as a practical response the

National Target Program to Respond to Climate Change (hereinafter referred to as NTP-RCC) was

executed in 2008 and its materialization is currently being promoted NTP-RCC aims to reduce

GHG by 8 (absolute value) in comparison with 2005 by 2020 and MONRE currently takes the

lead in promoting an allocation of target values by sector along with the instruction of concrete

policies together with other ministries Objectives by industrial sector and by company have not yet

been established and such establishment is not compulsory for business operators at the present

time

JCM Demonstration Study (DS) 2013 ndash Final Report

lt3gt

3 Study Contents

(1) JCM methodology development

(i) Eligibility criteria

Below listed is the eligibility criterion for the methodology proposal Ver30

Table The eligibility criterion for the methodology proposal Ver30

Criterion Content Purpose

Criterion 1 All of core technologies and two or more

of the following other technologies are

introduced in implementing the project

- Core technologies Automatic fuel-air

ratio control system Furnace pressure

control system Glass level control

system

- Other technologies Tertiary air inflow

prevention burner Cullet preheating

system Electric boosting system Rapid

heating system Plant engineering (design

supervise of construction maintenance)

by companies with high technologies

After field study it turned out that the

diffusion of automatic fuel-air ratio

control system in Vietnam is above a

certain ratio that reference scenario is

set as it is introduced

Furnace pressure control system is

essential for automatic fuel-air ratio

control system being adequately

functional and glass level control

system is highly influential for yield

of product that it is essential for glass

manufacturing as a core technology

After field study other technologies

turned out to be hardly introduced in

Vietnam so far that meeting this

requirement automatically proves

technical additionality

Criterion 2 The applicable furnace include

manufacturing of glass products

To set target industry

Criterion 3 No drastic changes are made in

manufacturing process and products

before the project implementation and

after the project period

To exclude the possibility of

energy-efficiency-activity-unrelated

fluctuation of energy consumption

original unit in case there is a change

for manufacturing method and

product

Criterion 4 Fossil fuel and grid electricity

consumptions including production of

products are measureable one (1) year

before and after the project

implementation

The data of energy consumption and

production volume in the past and of

production volume during project are

required in order to calculate energy

consumption original unit for

reference

The data of fossil fuel and electricity

consumption is required in order to

JCM Demonstration Study (DS) 2013 ndash Final Report

lt4gt

Criterion Content Purpose

calculate project emission

(ii) Data and parameters fixed ex ante

For reference emissions energy consumption per unit of production volume (A) is fixed

according to ex ante parameters while the GHG emissions coefficient of fossil fuels (B) the GHG

emissions coefficient of grid power (C) and the rate of emissions reduction (D) are set to default

values

(A) is a calculation of basic units of energy consumption (basic units) from energy consumption

data and production volume data of the relevant Ralaco furnaces prior to project implementation

The result of a calculation utilizing data from January 2005 to August 2007 (prior to energy-saving

furnace installation) is a basic unit of 3326 kg of fuel oil per ton of glass

For (B) the IPCCs default values which are thought to be reliable were applied

For (C) the latest combined margin figure (05408 t-CO2MWh) the Vietnamese Ministry of

Natural Resources (MONRE) put together in 2011 was applied

For (D) details are given below in the calculation of emissions reductions but the GHG

reduction results differ due to a disparity between the technical products and services to fulfill

Eligibility Criteria 1 and the atmospheric ratio control systems whose popularization is currently

permitted in Viet Nam beyond a certain ratio and we are considering assessing the capacity

utilization of the automatic atmospheric ratio control system that will be the core technology

(iii) Result of actual monitoring

Below are the Monitoring Plan and Monitoring Implementation Results at the demonstration

plant These were compiled into the PDD and pre-validated by the Japan Quality Assurance

Organization

Monitoring Plan

The monitoring points monitoring parameters and monitoring system were configured and

constructed as follows and verified

JCM Demonstration Study (DS) 2013 ndash Final Report

lt5gt

Figure Monitoring points

Table Monitoring parameter

Parameter Description Frequency and media for

monitoring Notes

1 Heavy Oil

Inflow amount

Record values of flow

meter (L) of each furnace

on a ledger every day and

compare them with

receipts at the end of

month

Adjust the inflow amount by

dividing the disparity between

tank and the integrated value of

flow meter with activity ratio of

each furnace

2 Electricity Usage Record integrating

wattmeter of each furnace

every day and compare

them with bills at the end

of month

Integrating wattmeter of each

furnace would be checked by

EVN at the end of month and

bills would be issued

Electricity usage in forming step

not included

3 Production

Volume (Melting

amount base)

Fluorescent Light

Production speed (length

per minute) working

hours standard weight

Electric Light Bulb

Production speed (numbers

per minute) working

hours standard weight

Refer monitoring parameter 4

regarding the standard weight

Warehouse

Furnace

Tank

1

Beer

Product3rsquo

Heavy oil

Forming

bill

Flow meter

X g-GlassY g-Glass

44

Factory

Electricity

3

Monitoring point

Monitoring point

for cross check

1rsquo

Electricity meter2

1 Heavy oil inflow amount

2 Electricity usage

3 Product number

4 Standard weight

JCM Demonstration Study (DS) 2013 ndash Final Report

lt6gt

Parameter Description Frequency and media for

monitoring Notes

Record above stated on a

ledger every day and

conclude them at the end

of month

4 Weight per

article

Grasping by sampling No quality standard

regarding weight On the other

hand the standard on profound

of tube does exist measure

weight as first screening

Figure Monitoring structure

Monitoring Implementation Results

These are the results of the monitoring implemented in this project

Table Monitoring Implementation Results

Parameter (Unit) Monitoring

Option Original Data

Values

Reference Project

Production

volume

(t-Glassyr)

Option C company control

records

6834 9931

Fuel usage

(kLyr)

Option C company control

records

2362 1797

Head Quarter

Accounting Dept

Heavy oil

Manager

Electricity

Manager

Production

Manager

Shipping

Manager

Factory

Manager

Daily and monthly report

Monthly report

bull Data collection

bull Compile data for reporting

bull Compile

consumption data

of each furnace

bull Compile

consumption data

of each furnace

bull Compile melting

volume of each

furnace

bull Compile shipping

data

JCM Demonstration Study (DS) 2013 ndash Final Report

lt7gt

Parameter (Unit) Monitoring

Option Original Data

Values

Reference Project

Power usage

(MWhyr)

Option C company control

records

0 8708

(iv) Calculation of GHG emissions (including reference and project emissions)

Calculation of Reference Emissions

EMRR = SEMBP POPJ

EMRR Reference CO2 emission in year y [t-CO2y]

SEMBP Specific CO2 emission from the energy source before the project

[t-CO2 t-Glass]

POPJ Production volume of project activity in year y [t-Glassyear]

Below listed values are used in this project

Parameter Value Unit Notes

EMRR 10279 t-CO2y Refer above calculation formula

SEMBP 1035 t-CO2 t-Glass Refer below calculation formula

POPJ 9931 t-Glassyear Production from September 2012 until August 2013

SEMBP = (EMBP_fuel EMBP_electricity) POBP

=

i

ifuelifuelBPifuel CFHVF12

44 + ELBP CFelectricity POBP

EMBP_fuel CO2 emission from the fossil fuel before the project [t-CO2y]

EMBP_electricity CO2 emission from the grid electricity before the project [t-CO2y]

POBP Production volume before the project [t-Glassyear]

FfueliBP Fossil fuel consumption before the project [1000Nm3y or ty or kLy]

HVfueli Net calorific value of fossil fuel i [GJ1000Nm3 or t or kL]

CFfueli Carbon emission factor of fossil fuel i [t-CGJ]

ELBP Grid electricity consumption before the project [MWhy]

CFelectricity CO2 emission factor of the grid electricity [t-CO2MWh]

Below listed values are used in this project

Parameter Value Unit Notes

SEMBP 1035 t-CO2t-Glass -

EMBP_fuel 18864 t-CO2y -

EMBP_electricity 0 t-CO2y -

JCM Demonstration Study (DS) 2013 ndash Final Report

lt8gt

Parameter Value Unit Notes

POBP 6834 t-Glassy

Multiply average value for production volume from

January 2005 until August 2007 (5695

t-Glassmonth) and 12 month

FfueliBP 2220 kLy

Multiply average value for heavy oil consumption

from January 2005 until August 2007 (1850

t-FOmonth) and 12 month then divide by conversion

factor (094 Ralacorsquos operating value)

HVfueli 419 GJkL 2006 IPCC Guidelines for National Greenhouse Gas

Inventories

CFfueli 00195 t-CGJ 2006 IPCC Guidelines for National Greenhouse Gas

Inventories

ELBP 0 MWhy No consumption before the project

CFelectricity 05408 t-CO2MWh Official announcement value of Ministry of Natural

Resources and Environment 2011

Calculation of Project Emissions

EMPJ = EMPJ_fuel EMPJ_electricity

=

i

ifuelifuelPJifuel CFHVF12

44 + ELPJ CFelectricity

EMPJ Project CO2 emission in year y [t-CO2y]

EMPJ_fuel Project CO2 emission from the fossil fuel in year y [t-CO2y]

EMPJ_electricity Project CO2 emission from the grid electricity in year y [t-CO2y]

FfueliPJ Project consumption of fossil fuel source i in year y

[1000Nm3y or ty or kLy]

HVfueli Net calorific value of fossil fuel source i [GJ1000Nm3 or t or kL]

CFfueli Carbon emission factor of fossil fuel source i [t-CGJ]

ELPJ Project consumption of the grid electricity in year y [MWhy]

CFelectricity CO2 emission factor of the grid electricity [t-CO2MWh]

Below listed values are used in this project

Parameter Value Unit Notes

EMPJ 5854 t-CO2y Refer above calculation formula

EMPJ_fuel 5383 t-CO2y Refer above calculation formula

EMPJ_electricity 4709 t-CO2y Refer above calculation formula

FfueliPJ 1797 kLy Heavy oil consumption from September 2012

until August 2013

JCM Demonstration Study (DS) 2013 ndash Final Report

lt9gt

Parameter Value Unit Notes

HVfueli 419 GJkL 2006 IPCC Guidelines for National Greenhouse

Gas Inventories

CFfueli 00195 t-CGJ 2006 IPCC Guidelines for National Greenhouse

Gas Inventories

ELPJ 8708 MWhy Grid electricity consumption from September

2012 until August 2013

CFelectricity 05408 t-CO2MWh Official announcement value of Ministry of

Natural Resources and Environment 2011

Calculation of Emission Reduction

ER = ( EMRR - EMPJ ) α

ER CO2 emission reduction in year y [t-CO2y]

EMRR Reference CO2 emission in year y [t-CO2y]

EMPJ Project CO2 emissions in year y [t-CO2y]

α Discount rate of emission reductions []

Provisional value 8

Below listed values are used in this project The emission reduction is computed as 354 t-CO2year

Parameter Value Unit Notes

ER 354 t-CO2y Refer above calculation formula

EMRR 10279 t-CO2y -

EMPJ 5854 t-CO2y -

α 8 Default value (Provisional value)

(2) Development of JCM Project Design Document (PDD)

(i) Environmental Impact Assessment

The MONRE is in charge of Environmental Impact Assessments (hereinafter EIAs) in Viet

Nam Under the Law on Environmental Protection which was completely rewritten in 2005 the

authority to approve EIAs was relegated tomdashdepending on the projects characteristicsmdashthe

Vietnam Environment Association (VEA an organization under the MONRE) central government

ministries and agencies or local agencies

The list of projects requiring the drafting of an EIA report appears in Appendix 1 of the decree on

Detailing and Guiding the Implementation of a Number of Articles of the Law on Environmental

Protection (Decree 802006ND-CP) of August 9 2006 According to this an EIA does not have to

be performed when building a glass furnace

JCM Demonstration Study (DS) 2013 ndash Final Report

lt10gt

(ii) Consultation with Local Stakeholders

In Viet Nam matters such as environmental impacts accompanying project implementation are

generally left to the judgment of the Peoples Committee and public comments are rarely solicited

from employees or local residents For this project as well we told Ralaco several times to question

stakeholders about their opinions as in the past when we aspired to carry out CDM projects

Finally in addition to explaining the automatic fuel-air ratio control system to furnace operators

Ralaco gathered local residents for an information session No particularly negative comments were

raised at that time

In this study Furnace B had been equipped with an IFC automatic fuel-air ratio control system

that had already demonstrated results so the plant employees generally had a positive attitude about

saving furnace energy Employees commented that they also want to improve energy efficiency for

Furnace C which is slated for an upgrade in 2014 due to its currently extremely high basic units of

energy

(iii) Monitoring Plan

In cooperation with Ralaco we formed a Monitoring Plan for this project which we organized

into the Monitoring Plan Sheet and Monitoring System Sheet

(iv) Calibration of Measuring Instruments

We confirmed that the fuel oil flow meters and electricity meters used in the furnaces as well as

the speed sensors used to calculate production volume are not calibrated This corresponds to all

Option C monitoring Since a margin of error of no more than plus or minus 5 is demanded by

JCM we need to stipulate recalibration for the monitoring system

(3) Project development and implementation

(i) Japanrsquos contribution

According to interviews with the Vietnam Glass Association and suppliers of raw materials for

glass glass production volumemdashprincipally of glass panesmdashhas continued to trend upward in

recent years as well With the greater production of liquid crystal products and other goods coupled

with rising construction demand in recent years additional installations of and renewed demand for

glass furnaces is forecast for the future as well

Japans glass furnaces have extremely high energy consumption efficiency due to technical

expertise accumulated over many years Therefore we can contribute to long-term reductions in

energy consumption as well as the popularization of and advancements in energy-saving technology

for the host country by transferring this sort of technology

Comparing performance and price with other countries technology it is thought that Japan will

compete with Chinese companies who have an advantage in price We confirmed that Ralaco too

has installed glass furnaces equipped with a Chinese-made automatic fuel-air ratio control system

When we inquired with them about initial costs they said Chinese products cost half as much as

Japanese ones and indicated that price or some other incentive would be needed in order to

JCM Demonstration Study (DS) 2013 ndash Final Report

lt11gt

encourage them to install Japanese-made technology

Because of this it is thought that providing a certain percentage of funding such as equipment

subsidies or issuing credit under the JCM system will promote the project and make it valid

In addition Ralaco is proactive in its CSR as exemplified by its release of products with a small

environmental impact It is thought that expectations of a publication effect could also help promote

this project to such companies as a project that applied the JCM framework

(ii) Environmental integrity

This project attempts to raise combustion efficiency and lower fuel consumption by optimizing

the atmospheric ratio of existing melting furnaces Thus by implementing this project there is

thought to be little negative effect in environmental terms and there will be no more than limited

noise and such due to construction accompanying the installation of energy-saving systems As a

positive effect the project will attempt to lessen atmospheric pollution by reducing the usage of

fossil fuels

(iii) Sustainable development in host country

It is believed that demand for glass will continue to grow in the host country Therefore pushing

ahead with the installation of energy-saving glass furnaces can while leading to better efficiency in

energy consumption also help improve the level of energy-saving technology in the long-term thus

enabling a large contribution to the sustainable development of the host country

Page 6: Energy efficiency improvement of glass furnacegec.jp/gec/en/Activities/fs_newmex/2013/2013ds04_rep.pdf · system, Plant engineering (design, supervise of construction, maintenance)

JCM Demonstration Study (DS) 2013 ndash Final Report

lt3gt

3 Study Contents

(1) JCM methodology development

(i) Eligibility criteria

Below listed is the eligibility criterion for the methodology proposal Ver30

Table The eligibility criterion for the methodology proposal Ver30

Criterion Content Purpose

Criterion 1 All of core technologies and two or more

of the following other technologies are

introduced in implementing the project

- Core technologies Automatic fuel-air

ratio control system Furnace pressure

control system Glass level control

system

- Other technologies Tertiary air inflow

prevention burner Cullet preheating

system Electric boosting system Rapid

heating system Plant engineering (design

supervise of construction maintenance)

by companies with high technologies

After field study it turned out that the

diffusion of automatic fuel-air ratio

control system in Vietnam is above a

certain ratio that reference scenario is

set as it is introduced

Furnace pressure control system is

essential for automatic fuel-air ratio

control system being adequately

functional and glass level control

system is highly influential for yield

of product that it is essential for glass

manufacturing as a core technology

After field study other technologies

turned out to be hardly introduced in

Vietnam so far that meeting this

requirement automatically proves

technical additionality

Criterion 2 The applicable furnace include

manufacturing of glass products

To set target industry

Criterion 3 No drastic changes are made in

manufacturing process and products

before the project implementation and

after the project period

To exclude the possibility of

energy-efficiency-activity-unrelated

fluctuation of energy consumption

original unit in case there is a change

for manufacturing method and

product

Criterion 4 Fossil fuel and grid electricity

consumptions including production of

products are measureable one (1) year

before and after the project

implementation

The data of energy consumption and

production volume in the past and of

production volume during project are

required in order to calculate energy

consumption original unit for

reference

The data of fossil fuel and electricity

consumption is required in order to

JCM Demonstration Study (DS) 2013 ndash Final Report

lt4gt

Criterion Content Purpose

calculate project emission

(ii) Data and parameters fixed ex ante

For reference emissions energy consumption per unit of production volume (A) is fixed

according to ex ante parameters while the GHG emissions coefficient of fossil fuels (B) the GHG

emissions coefficient of grid power (C) and the rate of emissions reduction (D) are set to default

values

(A) is a calculation of basic units of energy consumption (basic units) from energy consumption

data and production volume data of the relevant Ralaco furnaces prior to project implementation

The result of a calculation utilizing data from January 2005 to August 2007 (prior to energy-saving

furnace installation) is a basic unit of 3326 kg of fuel oil per ton of glass

For (B) the IPCCs default values which are thought to be reliable were applied

For (C) the latest combined margin figure (05408 t-CO2MWh) the Vietnamese Ministry of

Natural Resources (MONRE) put together in 2011 was applied

For (D) details are given below in the calculation of emissions reductions but the GHG

reduction results differ due to a disparity between the technical products and services to fulfill

Eligibility Criteria 1 and the atmospheric ratio control systems whose popularization is currently

permitted in Viet Nam beyond a certain ratio and we are considering assessing the capacity

utilization of the automatic atmospheric ratio control system that will be the core technology

(iii) Result of actual monitoring

Below are the Monitoring Plan and Monitoring Implementation Results at the demonstration

plant These were compiled into the PDD and pre-validated by the Japan Quality Assurance

Organization

Monitoring Plan

The monitoring points monitoring parameters and monitoring system were configured and

constructed as follows and verified

JCM Demonstration Study (DS) 2013 ndash Final Report

lt5gt

Figure Monitoring points

Table Monitoring parameter

Parameter Description Frequency and media for

monitoring Notes

1 Heavy Oil

Inflow amount

Record values of flow

meter (L) of each furnace

on a ledger every day and

compare them with

receipts at the end of

month

Adjust the inflow amount by

dividing the disparity between

tank and the integrated value of

flow meter with activity ratio of

each furnace

2 Electricity Usage Record integrating

wattmeter of each furnace

every day and compare

them with bills at the end

of month

Integrating wattmeter of each

furnace would be checked by

EVN at the end of month and

bills would be issued

Electricity usage in forming step

not included

3 Production

Volume (Melting

amount base)

Fluorescent Light

Production speed (length

per minute) working

hours standard weight

Electric Light Bulb

Production speed (numbers

per minute) working

hours standard weight

Refer monitoring parameter 4

regarding the standard weight

Warehouse

Furnace

Tank

1

Beer

Product3rsquo

Heavy oil

Forming

bill

Flow meter

X g-GlassY g-Glass

44

Factory

Electricity

3

Monitoring point

Monitoring point

for cross check

1rsquo

Electricity meter2

1 Heavy oil inflow amount

2 Electricity usage

3 Product number

4 Standard weight

JCM Demonstration Study (DS) 2013 ndash Final Report

lt6gt

Parameter Description Frequency and media for

monitoring Notes

Record above stated on a

ledger every day and

conclude them at the end

of month

4 Weight per

article

Grasping by sampling No quality standard

regarding weight On the other

hand the standard on profound

of tube does exist measure

weight as first screening

Figure Monitoring structure

Monitoring Implementation Results

These are the results of the monitoring implemented in this project

Table Monitoring Implementation Results

Parameter (Unit) Monitoring

Option Original Data

Values

Reference Project

Production

volume

(t-Glassyr)

Option C company control

records

6834 9931

Fuel usage

(kLyr)

Option C company control

records

2362 1797

Head Quarter

Accounting Dept

Heavy oil

Manager

Electricity

Manager

Production

Manager

Shipping

Manager

Factory

Manager

Daily and monthly report

Monthly report

bull Data collection

bull Compile data for reporting

bull Compile

consumption data

of each furnace

bull Compile

consumption data

of each furnace

bull Compile melting

volume of each

furnace

bull Compile shipping

data

JCM Demonstration Study (DS) 2013 ndash Final Report

lt7gt

Parameter (Unit) Monitoring

Option Original Data

Values

Reference Project

Power usage

(MWhyr)

Option C company control

records

0 8708

(iv) Calculation of GHG emissions (including reference and project emissions)

Calculation of Reference Emissions

EMRR = SEMBP POPJ

EMRR Reference CO2 emission in year y [t-CO2y]

SEMBP Specific CO2 emission from the energy source before the project

[t-CO2 t-Glass]

POPJ Production volume of project activity in year y [t-Glassyear]

Below listed values are used in this project

Parameter Value Unit Notes

EMRR 10279 t-CO2y Refer above calculation formula

SEMBP 1035 t-CO2 t-Glass Refer below calculation formula

POPJ 9931 t-Glassyear Production from September 2012 until August 2013

SEMBP = (EMBP_fuel EMBP_electricity) POBP

=

i

ifuelifuelBPifuel CFHVF12

44 + ELBP CFelectricity POBP

EMBP_fuel CO2 emission from the fossil fuel before the project [t-CO2y]

EMBP_electricity CO2 emission from the grid electricity before the project [t-CO2y]

POBP Production volume before the project [t-Glassyear]

FfueliBP Fossil fuel consumption before the project [1000Nm3y or ty or kLy]

HVfueli Net calorific value of fossil fuel i [GJ1000Nm3 or t or kL]

CFfueli Carbon emission factor of fossil fuel i [t-CGJ]

ELBP Grid electricity consumption before the project [MWhy]

CFelectricity CO2 emission factor of the grid electricity [t-CO2MWh]

Below listed values are used in this project

Parameter Value Unit Notes

SEMBP 1035 t-CO2t-Glass -

EMBP_fuel 18864 t-CO2y -

EMBP_electricity 0 t-CO2y -

JCM Demonstration Study (DS) 2013 ndash Final Report

lt8gt

Parameter Value Unit Notes

POBP 6834 t-Glassy

Multiply average value for production volume from

January 2005 until August 2007 (5695

t-Glassmonth) and 12 month

FfueliBP 2220 kLy

Multiply average value for heavy oil consumption

from January 2005 until August 2007 (1850

t-FOmonth) and 12 month then divide by conversion

factor (094 Ralacorsquos operating value)

HVfueli 419 GJkL 2006 IPCC Guidelines for National Greenhouse Gas

Inventories

CFfueli 00195 t-CGJ 2006 IPCC Guidelines for National Greenhouse Gas

Inventories

ELBP 0 MWhy No consumption before the project

CFelectricity 05408 t-CO2MWh Official announcement value of Ministry of Natural

Resources and Environment 2011

Calculation of Project Emissions

EMPJ = EMPJ_fuel EMPJ_electricity

=

i

ifuelifuelPJifuel CFHVF12

44 + ELPJ CFelectricity

EMPJ Project CO2 emission in year y [t-CO2y]

EMPJ_fuel Project CO2 emission from the fossil fuel in year y [t-CO2y]

EMPJ_electricity Project CO2 emission from the grid electricity in year y [t-CO2y]

FfueliPJ Project consumption of fossil fuel source i in year y

[1000Nm3y or ty or kLy]

HVfueli Net calorific value of fossil fuel source i [GJ1000Nm3 or t or kL]

CFfueli Carbon emission factor of fossil fuel source i [t-CGJ]

ELPJ Project consumption of the grid electricity in year y [MWhy]

CFelectricity CO2 emission factor of the grid electricity [t-CO2MWh]

Below listed values are used in this project

Parameter Value Unit Notes

EMPJ 5854 t-CO2y Refer above calculation formula

EMPJ_fuel 5383 t-CO2y Refer above calculation formula

EMPJ_electricity 4709 t-CO2y Refer above calculation formula

FfueliPJ 1797 kLy Heavy oil consumption from September 2012

until August 2013

JCM Demonstration Study (DS) 2013 ndash Final Report

lt9gt

Parameter Value Unit Notes

HVfueli 419 GJkL 2006 IPCC Guidelines for National Greenhouse

Gas Inventories

CFfueli 00195 t-CGJ 2006 IPCC Guidelines for National Greenhouse

Gas Inventories

ELPJ 8708 MWhy Grid electricity consumption from September

2012 until August 2013

CFelectricity 05408 t-CO2MWh Official announcement value of Ministry of

Natural Resources and Environment 2011

Calculation of Emission Reduction

ER = ( EMRR - EMPJ ) α

ER CO2 emission reduction in year y [t-CO2y]

EMRR Reference CO2 emission in year y [t-CO2y]

EMPJ Project CO2 emissions in year y [t-CO2y]

α Discount rate of emission reductions []

Provisional value 8

Below listed values are used in this project The emission reduction is computed as 354 t-CO2year

Parameter Value Unit Notes

ER 354 t-CO2y Refer above calculation formula

EMRR 10279 t-CO2y -

EMPJ 5854 t-CO2y -

α 8 Default value (Provisional value)

(2) Development of JCM Project Design Document (PDD)

(i) Environmental Impact Assessment

The MONRE is in charge of Environmental Impact Assessments (hereinafter EIAs) in Viet

Nam Under the Law on Environmental Protection which was completely rewritten in 2005 the

authority to approve EIAs was relegated tomdashdepending on the projects characteristicsmdashthe

Vietnam Environment Association (VEA an organization under the MONRE) central government

ministries and agencies or local agencies

The list of projects requiring the drafting of an EIA report appears in Appendix 1 of the decree on

Detailing and Guiding the Implementation of a Number of Articles of the Law on Environmental

Protection (Decree 802006ND-CP) of August 9 2006 According to this an EIA does not have to

be performed when building a glass furnace

JCM Demonstration Study (DS) 2013 ndash Final Report

lt10gt

(ii) Consultation with Local Stakeholders

In Viet Nam matters such as environmental impacts accompanying project implementation are

generally left to the judgment of the Peoples Committee and public comments are rarely solicited

from employees or local residents For this project as well we told Ralaco several times to question

stakeholders about their opinions as in the past when we aspired to carry out CDM projects

Finally in addition to explaining the automatic fuel-air ratio control system to furnace operators

Ralaco gathered local residents for an information session No particularly negative comments were

raised at that time

In this study Furnace B had been equipped with an IFC automatic fuel-air ratio control system

that had already demonstrated results so the plant employees generally had a positive attitude about

saving furnace energy Employees commented that they also want to improve energy efficiency for

Furnace C which is slated for an upgrade in 2014 due to its currently extremely high basic units of

energy

(iii) Monitoring Plan

In cooperation with Ralaco we formed a Monitoring Plan for this project which we organized

into the Monitoring Plan Sheet and Monitoring System Sheet

(iv) Calibration of Measuring Instruments

We confirmed that the fuel oil flow meters and electricity meters used in the furnaces as well as

the speed sensors used to calculate production volume are not calibrated This corresponds to all

Option C monitoring Since a margin of error of no more than plus or minus 5 is demanded by

JCM we need to stipulate recalibration for the monitoring system

(3) Project development and implementation

(i) Japanrsquos contribution

According to interviews with the Vietnam Glass Association and suppliers of raw materials for

glass glass production volumemdashprincipally of glass panesmdashhas continued to trend upward in

recent years as well With the greater production of liquid crystal products and other goods coupled

with rising construction demand in recent years additional installations of and renewed demand for

glass furnaces is forecast for the future as well

Japans glass furnaces have extremely high energy consumption efficiency due to technical

expertise accumulated over many years Therefore we can contribute to long-term reductions in

energy consumption as well as the popularization of and advancements in energy-saving technology

for the host country by transferring this sort of technology

Comparing performance and price with other countries technology it is thought that Japan will

compete with Chinese companies who have an advantage in price We confirmed that Ralaco too

has installed glass furnaces equipped with a Chinese-made automatic fuel-air ratio control system

When we inquired with them about initial costs they said Chinese products cost half as much as

Japanese ones and indicated that price or some other incentive would be needed in order to

JCM Demonstration Study (DS) 2013 ndash Final Report

lt11gt

encourage them to install Japanese-made technology

Because of this it is thought that providing a certain percentage of funding such as equipment

subsidies or issuing credit under the JCM system will promote the project and make it valid

In addition Ralaco is proactive in its CSR as exemplified by its release of products with a small

environmental impact It is thought that expectations of a publication effect could also help promote

this project to such companies as a project that applied the JCM framework

(ii) Environmental integrity

This project attempts to raise combustion efficiency and lower fuel consumption by optimizing

the atmospheric ratio of existing melting furnaces Thus by implementing this project there is

thought to be little negative effect in environmental terms and there will be no more than limited

noise and such due to construction accompanying the installation of energy-saving systems As a

positive effect the project will attempt to lessen atmospheric pollution by reducing the usage of

fossil fuels

(iii) Sustainable development in host country

It is believed that demand for glass will continue to grow in the host country Therefore pushing

ahead with the installation of energy-saving glass furnaces can while leading to better efficiency in

energy consumption also help improve the level of energy-saving technology in the long-term thus

enabling a large contribution to the sustainable development of the host country

Page 7: Energy efficiency improvement of glass furnacegec.jp/gec/en/Activities/fs_newmex/2013/2013ds04_rep.pdf · system, Plant engineering (design, supervise of construction, maintenance)

JCM Demonstration Study (DS) 2013 ndash Final Report

lt4gt

Criterion Content Purpose

calculate project emission

(ii) Data and parameters fixed ex ante

For reference emissions energy consumption per unit of production volume (A) is fixed

according to ex ante parameters while the GHG emissions coefficient of fossil fuels (B) the GHG

emissions coefficient of grid power (C) and the rate of emissions reduction (D) are set to default

values

(A) is a calculation of basic units of energy consumption (basic units) from energy consumption

data and production volume data of the relevant Ralaco furnaces prior to project implementation

The result of a calculation utilizing data from January 2005 to August 2007 (prior to energy-saving

furnace installation) is a basic unit of 3326 kg of fuel oil per ton of glass

For (B) the IPCCs default values which are thought to be reliable were applied

For (C) the latest combined margin figure (05408 t-CO2MWh) the Vietnamese Ministry of

Natural Resources (MONRE) put together in 2011 was applied

For (D) details are given below in the calculation of emissions reductions but the GHG

reduction results differ due to a disparity between the technical products and services to fulfill

Eligibility Criteria 1 and the atmospheric ratio control systems whose popularization is currently

permitted in Viet Nam beyond a certain ratio and we are considering assessing the capacity

utilization of the automatic atmospheric ratio control system that will be the core technology

(iii) Result of actual monitoring

Below are the Monitoring Plan and Monitoring Implementation Results at the demonstration

plant These were compiled into the PDD and pre-validated by the Japan Quality Assurance

Organization

Monitoring Plan

The monitoring points monitoring parameters and monitoring system were configured and

constructed as follows and verified

JCM Demonstration Study (DS) 2013 ndash Final Report

lt5gt

Figure Monitoring points

Table Monitoring parameter

Parameter Description Frequency and media for

monitoring Notes

1 Heavy Oil

Inflow amount

Record values of flow

meter (L) of each furnace

on a ledger every day and

compare them with

receipts at the end of

month

Adjust the inflow amount by

dividing the disparity between

tank and the integrated value of

flow meter with activity ratio of

each furnace

2 Electricity Usage Record integrating

wattmeter of each furnace

every day and compare

them with bills at the end

of month

Integrating wattmeter of each

furnace would be checked by

EVN at the end of month and

bills would be issued

Electricity usage in forming step

not included

3 Production

Volume (Melting

amount base)

Fluorescent Light

Production speed (length

per minute) working

hours standard weight

Electric Light Bulb

Production speed (numbers

per minute) working

hours standard weight

Refer monitoring parameter 4

regarding the standard weight

Warehouse

Furnace

Tank

1

Beer

Product3rsquo

Heavy oil

Forming

bill

Flow meter

X g-GlassY g-Glass

44

Factory

Electricity

3

Monitoring point

Monitoring point

for cross check

1rsquo

Electricity meter2

1 Heavy oil inflow amount

2 Electricity usage

3 Product number

4 Standard weight

JCM Demonstration Study (DS) 2013 ndash Final Report

lt6gt

Parameter Description Frequency and media for

monitoring Notes

Record above stated on a

ledger every day and

conclude them at the end

of month

4 Weight per

article

Grasping by sampling No quality standard

regarding weight On the other

hand the standard on profound

of tube does exist measure

weight as first screening

Figure Monitoring structure

Monitoring Implementation Results

These are the results of the monitoring implemented in this project

Table Monitoring Implementation Results

Parameter (Unit) Monitoring

Option Original Data

Values

Reference Project

Production

volume

(t-Glassyr)

Option C company control

records

6834 9931

Fuel usage

(kLyr)

Option C company control

records

2362 1797

Head Quarter

Accounting Dept

Heavy oil

Manager

Electricity

Manager

Production

Manager

Shipping

Manager

Factory

Manager

Daily and monthly report

Monthly report

bull Data collection

bull Compile data for reporting

bull Compile

consumption data

of each furnace

bull Compile

consumption data

of each furnace

bull Compile melting

volume of each

furnace

bull Compile shipping

data

JCM Demonstration Study (DS) 2013 ndash Final Report

lt7gt

Parameter (Unit) Monitoring

Option Original Data

Values

Reference Project

Power usage

(MWhyr)

Option C company control

records

0 8708

(iv) Calculation of GHG emissions (including reference and project emissions)

Calculation of Reference Emissions

EMRR = SEMBP POPJ

EMRR Reference CO2 emission in year y [t-CO2y]

SEMBP Specific CO2 emission from the energy source before the project

[t-CO2 t-Glass]

POPJ Production volume of project activity in year y [t-Glassyear]

Below listed values are used in this project

Parameter Value Unit Notes

EMRR 10279 t-CO2y Refer above calculation formula

SEMBP 1035 t-CO2 t-Glass Refer below calculation formula

POPJ 9931 t-Glassyear Production from September 2012 until August 2013

SEMBP = (EMBP_fuel EMBP_electricity) POBP

=

i

ifuelifuelBPifuel CFHVF12

44 + ELBP CFelectricity POBP

EMBP_fuel CO2 emission from the fossil fuel before the project [t-CO2y]

EMBP_electricity CO2 emission from the grid electricity before the project [t-CO2y]

POBP Production volume before the project [t-Glassyear]

FfueliBP Fossil fuel consumption before the project [1000Nm3y or ty or kLy]

HVfueli Net calorific value of fossil fuel i [GJ1000Nm3 or t or kL]

CFfueli Carbon emission factor of fossil fuel i [t-CGJ]

ELBP Grid electricity consumption before the project [MWhy]

CFelectricity CO2 emission factor of the grid electricity [t-CO2MWh]

Below listed values are used in this project

Parameter Value Unit Notes

SEMBP 1035 t-CO2t-Glass -

EMBP_fuel 18864 t-CO2y -

EMBP_electricity 0 t-CO2y -

JCM Demonstration Study (DS) 2013 ndash Final Report

lt8gt

Parameter Value Unit Notes

POBP 6834 t-Glassy

Multiply average value for production volume from

January 2005 until August 2007 (5695

t-Glassmonth) and 12 month

FfueliBP 2220 kLy

Multiply average value for heavy oil consumption

from January 2005 until August 2007 (1850

t-FOmonth) and 12 month then divide by conversion

factor (094 Ralacorsquos operating value)

HVfueli 419 GJkL 2006 IPCC Guidelines for National Greenhouse Gas

Inventories

CFfueli 00195 t-CGJ 2006 IPCC Guidelines for National Greenhouse Gas

Inventories

ELBP 0 MWhy No consumption before the project

CFelectricity 05408 t-CO2MWh Official announcement value of Ministry of Natural

Resources and Environment 2011

Calculation of Project Emissions

EMPJ = EMPJ_fuel EMPJ_electricity

=

i

ifuelifuelPJifuel CFHVF12

44 + ELPJ CFelectricity

EMPJ Project CO2 emission in year y [t-CO2y]

EMPJ_fuel Project CO2 emission from the fossil fuel in year y [t-CO2y]

EMPJ_electricity Project CO2 emission from the grid electricity in year y [t-CO2y]

FfueliPJ Project consumption of fossil fuel source i in year y

[1000Nm3y or ty or kLy]

HVfueli Net calorific value of fossil fuel source i [GJ1000Nm3 or t or kL]

CFfueli Carbon emission factor of fossil fuel source i [t-CGJ]

ELPJ Project consumption of the grid electricity in year y [MWhy]

CFelectricity CO2 emission factor of the grid electricity [t-CO2MWh]

Below listed values are used in this project

Parameter Value Unit Notes

EMPJ 5854 t-CO2y Refer above calculation formula

EMPJ_fuel 5383 t-CO2y Refer above calculation formula

EMPJ_electricity 4709 t-CO2y Refer above calculation formula

FfueliPJ 1797 kLy Heavy oil consumption from September 2012

until August 2013

JCM Demonstration Study (DS) 2013 ndash Final Report

lt9gt

Parameter Value Unit Notes

HVfueli 419 GJkL 2006 IPCC Guidelines for National Greenhouse

Gas Inventories

CFfueli 00195 t-CGJ 2006 IPCC Guidelines for National Greenhouse

Gas Inventories

ELPJ 8708 MWhy Grid electricity consumption from September

2012 until August 2013

CFelectricity 05408 t-CO2MWh Official announcement value of Ministry of

Natural Resources and Environment 2011

Calculation of Emission Reduction

ER = ( EMRR - EMPJ ) α

ER CO2 emission reduction in year y [t-CO2y]

EMRR Reference CO2 emission in year y [t-CO2y]

EMPJ Project CO2 emissions in year y [t-CO2y]

α Discount rate of emission reductions []

Provisional value 8

Below listed values are used in this project The emission reduction is computed as 354 t-CO2year

Parameter Value Unit Notes

ER 354 t-CO2y Refer above calculation formula

EMRR 10279 t-CO2y -

EMPJ 5854 t-CO2y -

α 8 Default value (Provisional value)

(2) Development of JCM Project Design Document (PDD)

(i) Environmental Impact Assessment

The MONRE is in charge of Environmental Impact Assessments (hereinafter EIAs) in Viet

Nam Under the Law on Environmental Protection which was completely rewritten in 2005 the

authority to approve EIAs was relegated tomdashdepending on the projects characteristicsmdashthe

Vietnam Environment Association (VEA an organization under the MONRE) central government

ministries and agencies or local agencies

The list of projects requiring the drafting of an EIA report appears in Appendix 1 of the decree on

Detailing and Guiding the Implementation of a Number of Articles of the Law on Environmental

Protection (Decree 802006ND-CP) of August 9 2006 According to this an EIA does not have to

be performed when building a glass furnace

JCM Demonstration Study (DS) 2013 ndash Final Report

lt10gt

(ii) Consultation with Local Stakeholders

In Viet Nam matters such as environmental impacts accompanying project implementation are

generally left to the judgment of the Peoples Committee and public comments are rarely solicited

from employees or local residents For this project as well we told Ralaco several times to question

stakeholders about their opinions as in the past when we aspired to carry out CDM projects

Finally in addition to explaining the automatic fuel-air ratio control system to furnace operators

Ralaco gathered local residents for an information session No particularly negative comments were

raised at that time

In this study Furnace B had been equipped with an IFC automatic fuel-air ratio control system

that had already demonstrated results so the plant employees generally had a positive attitude about

saving furnace energy Employees commented that they also want to improve energy efficiency for

Furnace C which is slated for an upgrade in 2014 due to its currently extremely high basic units of

energy

(iii) Monitoring Plan

In cooperation with Ralaco we formed a Monitoring Plan for this project which we organized

into the Monitoring Plan Sheet and Monitoring System Sheet

(iv) Calibration of Measuring Instruments

We confirmed that the fuel oil flow meters and electricity meters used in the furnaces as well as

the speed sensors used to calculate production volume are not calibrated This corresponds to all

Option C monitoring Since a margin of error of no more than plus or minus 5 is demanded by

JCM we need to stipulate recalibration for the monitoring system

(3) Project development and implementation

(i) Japanrsquos contribution

According to interviews with the Vietnam Glass Association and suppliers of raw materials for

glass glass production volumemdashprincipally of glass panesmdashhas continued to trend upward in

recent years as well With the greater production of liquid crystal products and other goods coupled

with rising construction demand in recent years additional installations of and renewed demand for

glass furnaces is forecast for the future as well

Japans glass furnaces have extremely high energy consumption efficiency due to technical

expertise accumulated over many years Therefore we can contribute to long-term reductions in

energy consumption as well as the popularization of and advancements in energy-saving technology

for the host country by transferring this sort of technology

Comparing performance and price with other countries technology it is thought that Japan will

compete with Chinese companies who have an advantage in price We confirmed that Ralaco too

has installed glass furnaces equipped with a Chinese-made automatic fuel-air ratio control system

When we inquired with them about initial costs they said Chinese products cost half as much as

Japanese ones and indicated that price or some other incentive would be needed in order to

JCM Demonstration Study (DS) 2013 ndash Final Report

lt11gt

encourage them to install Japanese-made technology

Because of this it is thought that providing a certain percentage of funding such as equipment

subsidies or issuing credit under the JCM system will promote the project and make it valid

In addition Ralaco is proactive in its CSR as exemplified by its release of products with a small

environmental impact It is thought that expectations of a publication effect could also help promote

this project to such companies as a project that applied the JCM framework

(ii) Environmental integrity

This project attempts to raise combustion efficiency and lower fuel consumption by optimizing

the atmospheric ratio of existing melting furnaces Thus by implementing this project there is

thought to be little negative effect in environmental terms and there will be no more than limited

noise and such due to construction accompanying the installation of energy-saving systems As a

positive effect the project will attempt to lessen atmospheric pollution by reducing the usage of

fossil fuels

(iii) Sustainable development in host country

It is believed that demand for glass will continue to grow in the host country Therefore pushing

ahead with the installation of energy-saving glass furnaces can while leading to better efficiency in

energy consumption also help improve the level of energy-saving technology in the long-term thus

enabling a large contribution to the sustainable development of the host country

Page 8: Energy efficiency improvement of glass furnacegec.jp/gec/en/Activities/fs_newmex/2013/2013ds04_rep.pdf · system, Plant engineering (design, supervise of construction, maintenance)

JCM Demonstration Study (DS) 2013 ndash Final Report

lt5gt

Figure Monitoring points

Table Monitoring parameter

Parameter Description Frequency and media for

monitoring Notes

1 Heavy Oil

Inflow amount

Record values of flow

meter (L) of each furnace

on a ledger every day and

compare them with

receipts at the end of

month

Adjust the inflow amount by

dividing the disparity between

tank and the integrated value of

flow meter with activity ratio of

each furnace

2 Electricity Usage Record integrating

wattmeter of each furnace

every day and compare

them with bills at the end

of month

Integrating wattmeter of each

furnace would be checked by

EVN at the end of month and

bills would be issued

Electricity usage in forming step

not included

3 Production

Volume (Melting

amount base)

Fluorescent Light

Production speed (length

per minute) working

hours standard weight

Electric Light Bulb

Production speed (numbers

per minute) working

hours standard weight

Refer monitoring parameter 4

regarding the standard weight

Warehouse

Furnace

Tank

1

Beer

Product3rsquo

Heavy oil

Forming

bill

Flow meter

X g-GlassY g-Glass

44

Factory

Electricity

3

Monitoring point

Monitoring point

for cross check

1rsquo

Electricity meter2

1 Heavy oil inflow amount

2 Electricity usage

3 Product number

4 Standard weight

JCM Demonstration Study (DS) 2013 ndash Final Report

lt6gt

Parameter Description Frequency and media for

monitoring Notes

Record above stated on a

ledger every day and

conclude them at the end

of month

4 Weight per

article

Grasping by sampling No quality standard

regarding weight On the other

hand the standard on profound

of tube does exist measure

weight as first screening

Figure Monitoring structure

Monitoring Implementation Results

These are the results of the monitoring implemented in this project

Table Monitoring Implementation Results

Parameter (Unit) Monitoring

Option Original Data

Values

Reference Project

Production

volume

(t-Glassyr)

Option C company control

records

6834 9931

Fuel usage

(kLyr)

Option C company control

records

2362 1797

Head Quarter

Accounting Dept

Heavy oil

Manager

Electricity

Manager

Production

Manager

Shipping

Manager

Factory

Manager

Daily and monthly report

Monthly report

bull Data collection

bull Compile data for reporting

bull Compile

consumption data

of each furnace

bull Compile

consumption data

of each furnace

bull Compile melting

volume of each

furnace

bull Compile shipping

data

JCM Demonstration Study (DS) 2013 ndash Final Report

lt7gt

Parameter (Unit) Monitoring

Option Original Data

Values

Reference Project

Power usage

(MWhyr)

Option C company control

records

0 8708

(iv) Calculation of GHG emissions (including reference and project emissions)

Calculation of Reference Emissions

EMRR = SEMBP POPJ

EMRR Reference CO2 emission in year y [t-CO2y]

SEMBP Specific CO2 emission from the energy source before the project

[t-CO2 t-Glass]

POPJ Production volume of project activity in year y [t-Glassyear]

Below listed values are used in this project

Parameter Value Unit Notes

EMRR 10279 t-CO2y Refer above calculation formula

SEMBP 1035 t-CO2 t-Glass Refer below calculation formula

POPJ 9931 t-Glassyear Production from September 2012 until August 2013

SEMBP = (EMBP_fuel EMBP_electricity) POBP

=

i

ifuelifuelBPifuel CFHVF12

44 + ELBP CFelectricity POBP

EMBP_fuel CO2 emission from the fossil fuel before the project [t-CO2y]

EMBP_electricity CO2 emission from the grid electricity before the project [t-CO2y]

POBP Production volume before the project [t-Glassyear]

FfueliBP Fossil fuel consumption before the project [1000Nm3y or ty or kLy]

HVfueli Net calorific value of fossil fuel i [GJ1000Nm3 or t or kL]

CFfueli Carbon emission factor of fossil fuel i [t-CGJ]

ELBP Grid electricity consumption before the project [MWhy]

CFelectricity CO2 emission factor of the grid electricity [t-CO2MWh]

Below listed values are used in this project

Parameter Value Unit Notes

SEMBP 1035 t-CO2t-Glass -

EMBP_fuel 18864 t-CO2y -

EMBP_electricity 0 t-CO2y -

JCM Demonstration Study (DS) 2013 ndash Final Report

lt8gt

Parameter Value Unit Notes

POBP 6834 t-Glassy

Multiply average value for production volume from

January 2005 until August 2007 (5695

t-Glassmonth) and 12 month

FfueliBP 2220 kLy

Multiply average value for heavy oil consumption

from January 2005 until August 2007 (1850

t-FOmonth) and 12 month then divide by conversion

factor (094 Ralacorsquos operating value)

HVfueli 419 GJkL 2006 IPCC Guidelines for National Greenhouse Gas

Inventories

CFfueli 00195 t-CGJ 2006 IPCC Guidelines for National Greenhouse Gas

Inventories

ELBP 0 MWhy No consumption before the project

CFelectricity 05408 t-CO2MWh Official announcement value of Ministry of Natural

Resources and Environment 2011

Calculation of Project Emissions

EMPJ = EMPJ_fuel EMPJ_electricity

=

i

ifuelifuelPJifuel CFHVF12

44 + ELPJ CFelectricity

EMPJ Project CO2 emission in year y [t-CO2y]

EMPJ_fuel Project CO2 emission from the fossil fuel in year y [t-CO2y]

EMPJ_electricity Project CO2 emission from the grid electricity in year y [t-CO2y]

FfueliPJ Project consumption of fossil fuel source i in year y

[1000Nm3y or ty or kLy]

HVfueli Net calorific value of fossil fuel source i [GJ1000Nm3 or t or kL]

CFfueli Carbon emission factor of fossil fuel source i [t-CGJ]

ELPJ Project consumption of the grid electricity in year y [MWhy]

CFelectricity CO2 emission factor of the grid electricity [t-CO2MWh]

Below listed values are used in this project

Parameter Value Unit Notes

EMPJ 5854 t-CO2y Refer above calculation formula

EMPJ_fuel 5383 t-CO2y Refer above calculation formula

EMPJ_electricity 4709 t-CO2y Refer above calculation formula

FfueliPJ 1797 kLy Heavy oil consumption from September 2012

until August 2013

JCM Demonstration Study (DS) 2013 ndash Final Report

lt9gt

Parameter Value Unit Notes

HVfueli 419 GJkL 2006 IPCC Guidelines for National Greenhouse

Gas Inventories

CFfueli 00195 t-CGJ 2006 IPCC Guidelines for National Greenhouse

Gas Inventories

ELPJ 8708 MWhy Grid electricity consumption from September

2012 until August 2013

CFelectricity 05408 t-CO2MWh Official announcement value of Ministry of

Natural Resources and Environment 2011

Calculation of Emission Reduction

ER = ( EMRR - EMPJ ) α

ER CO2 emission reduction in year y [t-CO2y]

EMRR Reference CO2 emission in year y [t-CO2y]

EMPJ Project CO2 emissions in year y [t-CO2y]

α Discount rate of emission reductions []

Provisional value 8

Below listed values are used in this project The emission reduction is computed as 354 t-CO2year

Parameter Value Unit Notes

ER 354 t-CO2y Refer above calculation formula

EMRR 10279 t-CO2y -

EMPJ 5854 t-CO2y -

α 8 Default value (Provisional value)

(2) Development of JCM Project Design Document (PDD)

(i) Environmental Impact Assessment

The MONRE is in charge of Environmental Impact Assessments (hereinafter EIAs) in Viet

Nam Under the Law on Environmental Protection which was completely rewritten in 2005 the

authority to approve EIAs was relegated tomdashdepending on the projects characteristicsmdashthe

Vietnam Environment Association (VEA an organization under the MONRE) central government

ministries and agencies or local agencies

The list of projects requiring the drafting of an EIA report appears in Appendix 1 of the decree on

Detailing and Guiding the Implementation of a Number of Articles of the Law on Environmental

Protection (Decree 802006ND-CP) of August 9 2006 According to this an EIA does not have to

be performed when building a glass furnace

JCM Demonstration Study (DS) 2013 ndash Final Report

lt10gt

(ii) Consultation with Local Stakeholders

In Viet Nam matters such as environmental impacts accompanying project implementation are

generally left to the judgment of the Peoples Committee and public comments are rarely solicited

from employees or local residents For this project as well we told Ralaco several times to question

stakeholders about their opinions as in the past when we aspired to carry out CDM projects

Finally in addition to explaining the automatic fuel-air ratio control system to furnace operators

Ralaco gathered local residents for an information session No particularly negative comments were

raised at that time

In this study Furnace B had been equipped with an IFC automatic fuel-air ratio control system

that had already demonstrated results so the plant employees generally had a positive attitude about

saving furnace energy Employees commented that they also want to improve energy efficiency for

Furnace C which is slated for an upgrade in 2014 due to its currently extremely high basic units of

energy

(iii) Monitoring Plan

In cooperation with Ralaco we formed a Monitoring Plan for this project which we organized

into the Monitoring Plan Sheet and Monitoring System Sheet

(iv) Calibration of Measuring Instruments

We confirmed that the fuel oil flow meters and electricity meters used in the furnaces as well as

the speed sensors used to calculate production volume are not calibrated This corresponds to all

Option C monitoring Since a margin of error of no more than plus or minus 5 is demanded by

JCM we need to stipulate recalibration for the monitoring system

(3) Project development and implementation

(i) Japanrsquos contribution

According to interviews with the Vietnam Glass Association and suppliers of raw materials for

glass glass production volumemdashprincipally of glass panesmdashhas continued to trend upward in

recent years as well With the greater production of liquid crystal products and other goods coupled

with rising construction demand in recent years additional installations of and renewed demand for

glass furnaces is forecast for the future as well

Japans glass furnaces have extremely high energy consumption efficiency due to technical

expertise accumulated over many years Therefore we can contribute to long-term reductions in

energy consumption as well as the popularization of and advancements in energy-saving technology

for the host country by transferring this sort of technology

Comparing performance and price with other countries technology it is thought that Japan will

compete with Chinese companies who have an advantage in price We confirmed that Ralaco too

has installed glass furnaces equipped with a Chinese-made automatic fuel-air ratio control system

When we inquired with them about initial costs they said Chinese products cost half as much as

Japanese ones and indicated that price or some other incentive would be needed in order to

JCM Demonstration Study (DS) 2013 ndash Final Report

lt11gt

encourage them to install Japanese-made technology

Because of this it is thought that providing a certain percentage of funding such as equipment

subsidies or issuing credit under the JCM system will promote the project and make it valid

In addition Ralaco is proactive in its CSR as exemplified by its release of products with a small

environmental impact It is thought that expectations of a publication effect could also help promote

this project to such companies as a project that applied the JCM framework

(ii) Environmental integrity

This project attempts to raise combustion efficiency and lower fuel consumption by optimizing

the atmospheric ratio of existing melting furnaces Thus by implementing this project there is

thought to be little negative effect in environmental terms and there will be no more than limited

noise and such due to construction accompanying the installation of energy-saving systems As a

positive effect the project will attempt to lessen atmospheric pollution by reducing the usage of

fossil fuels

(iii) Sustainable development in host country

It is believed that demand for glass will continue to grow in the host country Therefore pushing

ahead with the installation of energy-saving glass furnaces can while leading to better efficiency in

energy consumption also help improve the level of energy-saving technology in the long-term thus

enabling a large contribution to the sustainable development of the host country

Page 9: Energy efficiency improvement of glass furnacegec.jp/gec/en/Activities/fs_newmex/2013/2013ds04_rep.pdf · system, Plant engineering (design, supervise of construction, maintenance)

JCM Demonstration Study (DS) 2013 ndash Final Report

lt6gt

Parameter Description Frequency and media for

monitoring Notes

Record above stated on a

ledger every day and

conclude them at the end

of month

4 Weight per

article

Grasping by sampling No quality standard

regarding weight On the other

hand the standard on profound

of tube does exist measure

weight as first screening

Figure Monitoring structure

Monitoring Implementation Results

These are the results of the monitoring implemented in this project

Table Monitoring Implementation Results

Parameter (Unit) Monitoring

Option Original Data

Values

Reference Project

Production

volume

(t-Glassyr)

Option C company control

records

6834 9931

Fuel usage

(kLyr)

Option C company control

records

2362 1797

Head Quarter

Accounting Dept

Heavy oil

Manager

Electricity

Manager

Production

Manager

Shipping

Manager

Factory

Manager

Daily and monthly report

Monthly report

bull Data collection

bull Compile data for reporting

bull Compile

consumption data

of each furnace

bull Compile

consumption data

of each furnace

bull Compile melting

volume of each

furnace

bull Compile shipping

data

JCM Demonstration Study (DS) 2013 ndash Final Report

lt7gt

Parameter (Unit) Monitoring

Option Original Data

Values

Reference Project

Power usage

(MWhyr)

Option C company control

records

0 8708

(iv) Calculation of GHG emissions (including reference and project emissions)

Calculation of Reference Emissions

EMRR = SEMBP POPJ

EMRR Reference CO2 emission in year y [t-CO2y]

SEMBP Specific CO2 emission from the energy source before the project

[t-CO2 t-Glass]

POPJ Production volume of project activity in year y [t-Glassyear]

Below listed values are used in this project

Parameter Value Unit Notes

EMRR 10279 t-CO2y Refer above calculation formula

SEMBP 1035 t-CO2 t-Glass Refer below calculation formula

POPJ 9931 t-Glassyear Production from September 2012 until August 2013

SEMBP = (EMBP_fuel EMBP_electricity) POBP

=

i

ifuelifuelBPifuel CFHVF12

44 + ELBP CFelectricity POBP

EMBP_fuel CO2 emission from the fossil fuel before the project [t-CO2y]

EMBP_electricity CO2 emission from the grid electricity before the project [t-CO2y]

POBP Production volume before the project [t-Glassyear]

FfueliBP Fossil fuel consumption before the project [1000Nm3y or ty or kLy]

HVfueli Net calorific value of fossil fuel i [GJ1000Nm3 or t or kL]

CFfueli Carbon emission factor of fossil fuel i [t-CGJ]

ELBP Grid electricity consumption before the project [MWhy]

CFelectricity CO2 emission factor of the grid electricity [t-CO2MWh]

Below listed values are used in this project

Parameter Value Unit Notes

SEMBP 1035 t-CO2t-Glass -

EMBP_fuel 18864 t-CO2y -

EMBP_electricity 0 t-CO2y -

JCM Demonstration Study (DS) 2013 ndash Final Report

lt8gt

Parameter Value Unit Notes

POBP 6834 t-Glassy

Multiply average value for production volume from

January 2005 until August 2007 (5695

t-Glassmonth) and 12 month

FfueliBP 2220 kLy

Multiply average value for heavy oil consumption

from January 2005 until August 2007 (1850

t-FOmonth) and 12 month then divide by conversion

factor (094 Ralacorsquos operating value)

HVfueli 419 GJkL 2006 IPCC Guidelines for National Greenhouse Gas

Inventories

CFfueli 00195 t-CGJ 2006 IPCC Guidelines for National Greenhouse Gas

Inventories

ELBP 0 MWhy No consumption before the project

CFelectricity 05408 t-CO2MWh Official announcement value of Ministry of Natural

Resources and Environment 2011

Calculation of Project Emissions

EMPJ = EMPJ_fuel EMPJ_electricity

=

i

ifuelifuelPJifuel CFHVF12

44 + ELPJ CFelectricity

EMPJ Project CO2 emission in year y [t-CO2y]

EMPJ_fuel Project CO2 emission from the fossil fuel in year y [t-CO2y]

EMPJ_electricity Project CO2 emission from the grid electricity in year y [t-CO2y]

FfueliPJ Project consumption of fossil fuel source i in year y

[1000Nm3y or ty or kLy]

HVfueli Net calorific value of fossil fuel source i [GJ1000Nm3 or t or kL]

CFfueli Carbon emission factor of fossil fuel source i [t-CGJ]

ELPJ Project consumption of the grid electricity in year y [MWhy]

CFelectricity CO2 emission factor of the grid electricity [t-CO2MWh]

Below listed values are used in this project

Parameter Value Unit Notes

EMPJ 5854 t-CO2y Refer above calculation formula

EMPJ_fuel 5383 t-CO2y Refer above calculation formula

EMPJ_electricity 4709 t-CO2y Refer above calculation formula

FfueliPJ 1797 kLy Heavy oil consumption from September 2012

until August 2013

JCM Demonstration Study (DS) 2013 ndash Final Report

lt9gt

Parameter Value Unit Notes

HVfueli 419 GJkL 2006 IPCC Guidelines for National Greenhouse

Gas Inventories

CFfueli 00195 t-CGJ 2006 IPCC Guidelines for National Greenhouse

Gas Inventories

ELPJ 8708 MWhy Grid electricity consumption from September

2012 until August 2013

CFelectricity 05408 t-CO2MWh Official announcement value of Ministry of

Natural Resources and Environment 2011

Calculation of Emission Reduction

ER = ( EMRR - EMPJ ) α

ER CO2 emission reduction in year y [t-CO2y]

EMRR Reference CO2 emission in year y [t-CO2y]

EMPJ Project CO2 emissions in year y [t-CO2y]

α Discount rate of emission reductions []

Provisional value 8

Below listed values are used in this project The emission reduction is computed as 354 t-CO2year

Parameter Value Unit Notes

ER 354 t-CO2y Refer above calculation formula

EMRR 10279 t-CO2y -

EMPJ 5854 t-CO2y -

α 8 Default value (Provisional value)

(2) Development of JCM Project Design Document (PDD)

(i) Environmental Impact Assessment

The MONRE is in charge of Environmental Impact Assessments (hereinafter EIAs) in Viet

Nam Under the Law on Environmental Protection which was completely rewritten in 2005 the

authority to approve EIAs was relegated tomdashdepending on the projects characteristicsmdashthe

Vietnam Environment Association (VEA an organization under the MONRE) central government

ministries and agencies or local agencies

The list of projects requiring the drafting of an EIA report appears in Appendix 1 of the decree on

Detailing and Guiding the Implementation of a Number of Articles of the Law on Environmental

Protection (Decree 802006ND-CP) of August 9 2006 According to this an EIA does not have to

be performed when building a glass furnace

JCM Demonstration Study (DS) 2013 ndash Final Report

lt10gt

(ii) Consultation with Local Stakeholders

In Viet Nam matters such as environmental impacts accompanying project implementation are

generally left to the judgment of the Peoples Committee and public comments are rarely solicited

from employees or local residents For this project as well we told Ralaco several times to question

stakeholders about their opinions as in the past when we aspired to carry out CDM projects

Finally in addition to explaining the automatic fuel-air ratio control system to furnace operators

Ralaco gathered local residents for an information session No particularly negative comments were

raised at that time

In this study Furnace B had been equipped with an IFC automatic fuel-air ratio control system

that had already demonstrated results so the plant employees generally had a positive attitude about

saving furnace energy Employees commented that they also want to improve energy efficiency for

Furnace C which is slated for an upgrade in 2014 due to its currently extremely high basic units of

energy

(iii) Monitoring Plan

In cooperation with Ralaco we formed a Monitoring Plan for this project which we organized

into the Monitoring Plan Sheet and Monitoring System Sheet

(iv) Calibration of Measuring Instruments

We confirmed that the fuel oil flow meters and electricity meters used in the furnaces as well as

the speed sensors used to calculate production volume are not calibrated This corresponds to all

Option C monitoring Since a margin of error of no more than plus or minus 5 is demanded by

JCM we need to stipulate recalibration for the monitoring system

(3) Project development and implementation

(i) Japanrsquos contribution

According to interviews with the Vietnam Glass Association and suppliers of raw materials for

glass glass production volumemdashprincipally of glass panesmdashhas continued to trend upward in

recent years as well With the greater production of liquid crystal products and other goods coupled

with rising construction demand in recent years additional installations of and renewed demand for

glass furnaces is forecast for the future as well

Japans glass furnaces have extremely high energy consumption efficiency due to technical

expertise accumulated over many years Therefore we can contribute to long-term reductions in

energy consumption as well as the popularization of and advancements in energy-saving technology

for the host country by transferring this sort of technology

Comparing performance and price with other countries technology it is thought that Japan will

compete with Chinese companies who have an advantage in price We confirmed that Ralaco too

has installed glass furnaces equipped with a Chinese-made automatic fuel-air ratio control system

When we inquired with them about initial costs they said Chinese products cost half as much as

Japanese ones and indicated that price or some other incentive would be needed in order to

JCM Demonstration Study (DS) 2013 ndash Final Report

lt11gt

encourage them to install Japanese-made technology

Because of this it is thought that providing a certain percentage of funding such as equipment

subsidies or issuing credit under the JCM system will promote the project and make it valid

In addition Ralaco is proactive in its CSR as exemplified by its release of products with a small

environmental impact It is thought that expectations of a publication effect could also help promote

this project to such companies as a project that applied the JCM framework

(ii) Environmental integrity

This project attempts to raise combustion efficiency and lower fuel consumption by optimizing

the atmospheric ratio of existing melting furnaces Thus by implementing this project there is

thought to be little negative effect in environmental terms and there will be no more than limited

noise and such due to construction accompanying the installation of energy-saving systems As a

positive effect the project will attempt to lessen atmospheric pollution by reducing the usage of

fossil fuels

(iii) Sustainable development in host country

It is believed that demand for glass will continue to grow in the host country Therefore pushing

ahead with the installation of energy-saving glass furnaces can while leading to better efficiency in

energy consumption also help improve the level of energy-saving technology in the long-term thus

enabling a large contribution to the sustainable development of the host country

Page 10: Energy efficiency improvement of glass furnacegec.jp/gec/en/Activities/fs_newmex/2013/2013ds04_rep.pdf · system, Plant engineering (design, supervise of construction, maintenance)

JCM Demonstration Study (DS) 2013 ndash Final Report

lt7gt

Parameter (Unit) Monitoring

Option Original Data

Values

Reference Project

Power usage

(MWhyr)

Option C company control

records

0 8708

(iv) Calculation of GHG emissions (including reference and project emissions)

Calculation of Reference Emissions

EMRR = SEMBP POPJ

EMRR Reference CO2 emission in year y [t-CO2y]

SEMBP Specific CO2 emission from the energy source before the project

[t-CO2 t-Glass]

POPJ Production volume of project activity in year y [t-Glassyear]

Below listed values are used in this project

Parameter Value Unit Notes

EMRR 10279 t-CO2y Refer above calculation formula

SEMBP 1035 t-CO2 t-Glass Refer below calculation formula

POPJ 9931 t-Glassyear Production from September 2012 until August 2013

SEMBP = (EMBP_fuel EMBP_electricity) POBP

=

i

ifuelifuelBPifuel CFHVF12

44 + ELBP CFelectricity POBP

EMBP_fuel CO2 emission from the fossil fuel before the project [t-CO2y]

EMBP_electricity CO2 emission from the grid electricity before the project [t-CO2y]

POBP Production volume before the project [t-Glassyear]

FfueliBP Fossil fuel consumption before the project [1000Nm3y or ty or kLy]

HVfueli Net calorific value of fossil fuel i [GJ1000Nm3 or t or kL]

CFfueli Carbon emission factor of fossil fuel i [t-CGJ]

ELBP Grid electricity consumption before the project [MWhy]

CFelectricity CO2 emission factor of the grid electricity [t-CO2MWh]

Below listed values are used in this project

Parameter Value Unit Notes

SEMBP 1035 t-CO2t-Glass -

EMBP_fuel 18864 t-CO2y -

EMBP_electricity 0 t-CO2y -

JCM Demonstration Study (DS) 2013 ndash Final Report

lt8gt

Parameter Value Unit Notes

POBP 6834 t-Glassy

Multiply average value for production volume from

January 2005 until August 2007 (5695

t-Glassmonth) and 12 month

FfueliBP 2220 kLy

Multiply average value for heavy oil consumption

from January 2005 until August 2007 (1850

t-FOmonth) and 12 month then divide by conversion

factor (094 Ralacorsquos operating value)

HVfueli 419 GJkL 2006 IPCC Guidelines for National Greenhouse Gas

Inventories

CFfueli 00195 t-CGJ 2006 IPCC Guidelines for National Greenhouse Gas

Inventories

ELBP 0 MWhy No consumption before the project

CFelectricity 05408 t-CO2MWh Official announcement value of Ministry of Natural

Resources and Environment 2011

Calculation of Project Emissions

EMPJ = EMPJ_fuel EMPJ_electricity

=

i

ifuelifuelPJifuel CFHVF12

44 + ELPJ CFelectricity

EMPJ Project CO2 emission in year y [t-CO2y]

EMPJ_fuel Project CO2 emission from the fossil fuel in year y [t-CO2y]

EMPJ_electricity Project CO2 emission from the grid electricity in year y [t-CO2y]

FfueliPJ Project consumption of fossil fuel source i in year y

[1000Nm3y or ty or kLy]

HVfueli Net calorific value of fossil fuel source i [GJ1000Nm3 or t or kL]

CFfueli Carbon emission factor of fossil fuel source i [t-CGJ]

ELPJ Project consumption of the grid electricity in year y [MWhy]

CFelectricity CO2 emission factor of the grid electricity [t-CO2MWh]

Below listed values are used in this project

Parameter Value Unit Notes

EMPJ 5854 t-CO2y Refer above calculation formula

EMPJ_fuel 5383 t-CO2y Refer above calculation formula

EMPJ_electricity 4709 t-CO2y Refer above calculation formula

FfueliPJ 1797 kLy Heavy oil consumption from September 2012

until August 2013

JCM Demonstration Study (DS) 2013 ndash Final Report

lt9gt

Parameter Value Unit Notes

HVfueli 419 GJkL 2006 IPCC Guidelines for National Greenhouse

Gas Inventories

CFfueli 00195 t-CGJ 2006 IPCC Guidelines for National Greenhouse

Gas Inventories

ELPJ 8708 MWhy Grid electricity consumption from September

2012 until August 2013

CFelectricity 05408 t-CO2MWh Official announcement value of Ministry of

Natural Resources and Environment 2011

Calculation of Emission Reduction

ER = ( EMRR - EMPJ ) α

ER CO2 emission reduction in year y [t-CO2y]

EMRR Reference CO2 emission in year y [t-CO2y]

EMPJ Project CO2 emissions in year y [t-CO2y]

α Discount rate of emission reductions []

Provisional value 8

Below listed values are used in this project The emission reduction is computed as 354 t-CO2year

Parameter Value Unit Notes

ER 354 t-CO2y Refer above calculation formula

EMRR 10279 t-CO2y -

EMPJ 5854 t-CO2y -

α 8 Default value (Provisional value)

(2) Development of JCM Project Design Document (PDD)

(i) Environmental Impact Assessment

The MONRE is in charge of Environmental Impact Assessments (hereinafter EIAs) in Viet

Nam Under the Law on Environmental Protection which was completely rewritten in 2005 the

authority to approve EIAs was relegated tomdashdepending on the projects characteristicsmdashthe

Vietnam Environment Association (VEA an organization under the MONRE) central government

ministries and agencies or local agencies

The list of projects requiring the drafting of an EIA report appears in Appendix 1 of the decree on

Detailing and Guiding the Implementation of a Number of Articles of the Law on Environmental

Protection (Decree 802006ND-CP) of August 9 2006 According to this an EIA does not have to

be performed when building a glass furnace

JCM Demonstration Study (DS) 2013 ndash Final Report

lt10gt

(ii) Consultation with Local Stakeholders

In Viet Nam matters such as environmental impacts accompanying project implementation are

generally left to the judgment of the Peoples Committee and public comments are rarely solicited

from employees or local residents For this project as well we told Ralaco several times to question

stakeholders about their opinions as in the past when we aspired to carry out CDM projects

Finally in addition to explaining the automatic fuel-air ratio control system to furnace operators

Ralaco gathered local residents for an information session No particularly negative comments were

raised at that time

In this study Furnace B had been equipped with an IFC automatic fuel-air ratio control system

that had already demonstrated results so the plant employees generally had a positive attitude about

saving furnace energy Employees commented that they also want to improve energy efficiency for

Furnace C which is slated for an upgrade in 2014 due to its currently extremely high basic units of

energy

(iii) Monitoring Plan

In cooperation with Ralaco we formed a Monitoring Plan for this project which we organized

into the Monitoring Plan Sheet and Monitoring System Sheet

(iv) Calibration of Measuring Instruments

We confirmed that the fuel oil flow meters and electricity meters used in the furnaces as well as

the speed sensors used to calculate production volume are not calibrated This corresponds to all

Option C monitoring Since a margin of error of no more than plus or minus 5 is demanded by

JCM we need to stipulate recalibration for the monitoring system

(3) Project development and implementation

(i) Japanrsquos contribution

According to interviews with the Vietnam Glass Association and suppliers of raw materials for

glass glass production volumemdashprincipally of glass panesmdashhas continued to trend upward in

recent years as well With the greater production of liquid crystal products and other goods coupled

with rising construction demand in recent years additional installations of and renewed demand for

glass furnaces is forecast for the future as well

Japans glass furnaces have extremely high energy consumption efficiency due to technical

expertise accumulated over many years Therefore we can contribute to long-term reductions in

energy consumption as well as the popularization of and advancements in energy-saving technology

for the host country by transferring this sort of technology

Comparing performance and price with other countries technology it is thought that Japan will

compete with Chinese companies who have an advantage in price We confirmed that Ralaco too

has installed glass furnaces equipped with a Chinese-made automatic fuel-air ratio control system

When we inquired with them about initial costs they said Chinese products cost half as much as

Japanese ones and indicated that price or some other incentive would be needed in order to

JCM Demonstration Study (DS) 2013 ndash Final Report

lt11gt

encourage them to install Japanese-made technology

Because of this it is thought that providing a certain percentage of funding such as equipment

subsidies or issuing credit under the JCM system will promote the project and make it valid

In addition Ralaco is proactive in its CSR as exemplified by its release of products with a small

environmental impact It is thought that expectations of a publication effect could also help promote

this project to such companies as a project that applied the JCM framework

(ii) Environmental integrity

This project attempts to raise combustion efficiency and lower fuel consumption by optimizing

the atmospheric ratio of existing melting furnaces Thus by implementing this project there is

thought to be little negative effect in environmental terms and there will be no more than limited

noise and such due to construction accompanying the installation of energy-saving systems As a

positive effect the project will attempt to lessen atmospheric pollution by reducing the usage of

fossil fuels

(iii) Sustainable development in host country

It is believed that demand for glass will continue to grow in the host country Therefore pushing

ahead with the installation of energy-saving glass furnaces can while leading to better efficiency in

energy consumption also help improve the level of energy-saving technology in the long-term thus

enabling a large contribution to the sustainable development of the host country

Page 11: Energy efficiency improvement of glass furnacegec.jp/gec/en/Activities/fs_newmex/2013/2013ds04_rep.pdf · system, Plant engineering (design, supervise of construction, maintenance)

JCM Demonstration Study (DS) 2013 ndash Final Report

lt8gt

Parameter Value Unit Notes

POBP 6834 t-Glassy

Multiply average value for production volume from

January 2005 until August 2007 (5695

t-Glassmonth) and 12 month

FfueliBP 2220 kLy

Multiply average value for heavy oil consumption

from January 2005 until August 2007 (1850

t-FOmonth) and 12 month then divide by conversion

factor (094 Ralacorsquos operating value)

HVfueli 419 GJkL 2006 IPCC Guidelines for National Greenhouse Gas

Inventories

CFfueli 00195 t-CGJ 2006 IPCC Guidelines for National Greenhouse Gas

Inventories

ELBP 0 MWhy No consumption before the project

CFelectricity 05408 t-CO2MWh Official announcement value of Ministry of Natural

Resources and Environment 2011

Calculation of Project Emissions

EMPJ = EMPJ_fuel EMPJ_electricity

=

i

ifuelifuelPJifuel CFHVF12

44 + ELPJ CFelectricity

EMPJ Project CO2 emission in year y [t-CO2y]

EMPJ_fuel Project CO2 emission from the fossil fuel in year y [t-CO2y]

EMPJ_electricity Project CO2 emission from the grid electricity in year y [t-CO2y]

FfueliPJ Project consumption of fossil fuel source i in year y

[1000Nm3y or ty or kLy]

HVfueli Net calorific value of fossil fuel source i [GJ1000Nm3 or t or kL]

CFfueli Carbon emission factor of fossil fuel source i [t-CGJ]

ELPJ Project consumption of the grid electricity in year y [MWhy]

CFelectricity CO2 emission factor of the grid electricity [t-CO2MWh]

Below listed values are used in this project

Parameter Value Unit Notes

EMPJ 5854 t-CO2y Refer above calculation formula

EMPJ_fuel 5383 t-CO2y Refer above calculation formula

EMPJ_electricity 4709 t-CO2y Refer above calculation formula

FfueliPJ 1797 kLy Heavy oil consumption from September 2012

until August 2013

JCM Demonstration Study (DS) 2013 ndash Final Report

lt9gt

Parameter Value Unit Notes

HVfueli 419 GJkL 2006 IPCC Guidelines for National Greenhouse

Gas Inventories

CFfueli 00195 t-CGJ 2006 IPCC Guidelines for National Greenhouse

Gas Inventories

ELPJ 8708 MWhy Grid electricity consumption from September

2012 until August 2013

CFelectricity 05408 t-CO2MWh Official announcement value of Ministry of

Natural Resources and Environment 2011

Calculation of Emission Reduction

ER = ( EMRR - EMPJ ) α

ER CO2 emission reduction in year y [t-CO2y]

EMRR Reference CO2 emission in year y [t-CO2y]

EMPJ Project CO2 emissions in year y [t-CO2y]

α Discount rate of emission reductions []

Provisional value 8

Below listed values are used in this project The emission reduction is computed as 354 t-CO2year

Parameter Value Unit Notes

ER 354 t-CO2y Refer above calculation formula

EMRR 10279 t-CO2y -

EMPJ 5854 t-CO2y -

α 8 Default value (Provisional value)

(2) Development of JCM Project Design Document (PDD)

(i) Environmental Impact Assessment

The MONRE is in charge of Environmental Impact Assessments (hereinafter EIAs) in Viet

Nam Under the Law on Environmental Protection which was completely rewritten in 2005 the

authority to approve EIAs was relegated tomdashdepending on the projects characteristicsmdashthe

Vietnam Environment Association (VEA an organization under the MONRE) central government

ministries and agencies or local agencies

The list of projects requiring the drafting of an EIA report appears in Appendix 1 of the decree on

Detailing and Guiding the Implementation of a Number of Articles of the Law on Environmental

Protection (Decree 802006ND-CP) of August 9 2006 According to this an EIA does not have to

be performed when building a glass furnace

JCM Demonstration Study (DS) 2013 ndash Final Report

lt10gt

(ii) Consultation with Local Stakeholders

In Viet Nam matters such as environmental impacts accompanying project implementation are

generally left to the judgment of the Peoples Committee and public comments are rarely solicited

from employees or local residents For this project as well we told Ralaco several times to question

stakeholders about their opinions as in the past when we aspired to carry out CDM projects

Finally in addition to explaining the automatic fuel-air ratio control system to furnace operators

Ralaco gathered local residents for an information session No particularly negative comments were

raised at that time

In this study Furnace B had been equipped with an IFC automatic fuel-air ratio control system

that had already demonstrated results so the plant employees generally had a positive attitude about

saving furnace energy Employees commented that they also want to improve energy efficiency for

Furnace C which is slated for an upgrade in 2014 due to its currently extremely high basic units of

energy

(iii) Monitoring Plan

In cooperation with Ralaco we formed a Monitoring Plan for this project which we organized

into the Monitoring Plan Sheet and Monitoring System Sheet

(iv) Calibration of Measuring Instruments

We confirmed that the fuel oil flow meters and electricity meters used in the furnaces as well as

the speed sensors used to calculate production volume are not calibrated This corresponds to all

Option C monitoring Since a margin of error of no more than plus or minus 5 is demanded by

JCM we need to stipulate recalibration for the monitoring system

(3) Project development and implementation

(i) Japanrsquos contribution

According to interviews with the Vietnam Glass Association and suppliers of raw materials for

glass glass production volumemdashprincipally of glass panesmdashhas continued to trend upward in

recent years as well With the greater production of liquid crystal products and other goods coupled

with rising construction demand in recent years additional installations of and renewed demand for

glass furnaces is forecast for the future as well

Japans glass furnaces have extremely high energy consumption efficiency due to technical

expertise accumulated over many years Therefore we can contribute to long-term reductions in

energy consumption as well as the popularization of and advancements in energy-saving technology

for the host country by transferring this sort of technology

Comparing performance and price with other countries technology it is thought that Japan will

compete with Chinese companies who have an advantage in price We confirmed that Ralaco too

has installed glass furnaces equipped with a Chinese-made automatic fuel-air ratio control system

When we inquired with them about initial costs they said Chinese products cost half as much as

Japanese ones and indicated that price or some other incentive would be needed in order to

JCM Demonstration Study (DS) 2013 ndash Final Report

lt11gt

encourage them to install Japanese-made technology

Because of this it is thought that providing a certain percentage of funding such as equipment

subsidies or issuing credit under the JCM system will promote the project and make it valid

In addition Ralaco is proactive in its CSR as exemplified by its release of products with a small

environmental impact It is thought that expectations of a publication effect could also help promote

this project to such companies as a project that applied the JCM framework

(ii) Environmental integrity

This project attempts to raise combustion efficiency and lower fuel consumption by optimizing

the atmospheric ratio of existing melting furnaces Thus by implementing this project there is

thought to be little negative effect in environmental terms and there will be no more than limited

noise and such due to construction accompanying the installation of energy-saving systems As a

positive effect the project will attempt to lessen atmospheric pollution by reducing the usage of

fossil fuels

(iii) Sustainable development in host country

It is believed that demand for glass will continue to grow in the host country Therefore pushing

ahead with the installation of energy-saving glass furnaces can while leading to better efficiency in

energy consumption also help improve the level of energy-saving technology in the long-term thus

enabling a large contribution to the sustainable development of the host country

Page 12: Energy efficiency improvement of glass furnacegec.jp/gec/en/Activities/fs_newmex/2013/2013ds04_rep.pdf · system, Plant engineering (design, supervise of construction, maintenance)

JCM Demonstration Study (DS) 2013 ndash Final Report

lt9gt

Parameter Value Unit Notes

HVfueli 419 GJkL 2006 IPCC Guidelines for National Greenhouse

Gas Inventories

CFfueli 00195 t-CGJ 2006 IPCC Guidelines for National Greenhouse

Gas Inventories

ELPJ 8708 MWhy Grid electricity consumption from September

2012 until August 2013

CFelectricity 05408 t-CO2MWh Official announcement value of Ministry of

Natural Resources and Environment 2011

Calculation of Emission Reduction

ER = ( EMRR - EMPJ ) α

ER CO2 emission reduction in year y [t-CO2y]

EMRR Reference CO2 emission in year y [t-CO2y]

EMPJ Project CO2 emissions in year y [t-CO2y]

α Discount rate of emission reductions []

Provisional value 8

Below listed values are used in this project The emission reduction is computed as 354 t-CO2year

Parameter Value Unit Notes

ER 354 t-CO2y Refer above calculation formula

EMRR 10279 t-CO2y -

EMPJ 5854 t-CO2y -

α 8 Default value (Provisional value)

(2) Development of JCM Project Design Document (PDD)

(i) Environmental Impact Assessment

The MONRE is in charge of Environmental Impact Assessments (hereinafter EIAs) in Viet

Nam Under the Law on Environmental Protection which was completely rewritten in 2005 the

authority to approve EIAs was relegated tomdashdepending on the projects characteristicsmdashthe

Vietnam Environment Association (VEA an organization under the MONRE) central government

ministries and agencies or local agencies

The list of projects requiring the drafting of an EIA report appears in Appendix 1 of the decree on

Detailing and Guiding the Implementation of a Number of Articles of the Law on Environmental

Protection (Decree 802006ND-CP) of August 9 2006 According to this an EIA does not have to

be performed when building a glass furnace

JCM Demonstration Study (DS) 2013 ndash Final Report

lt10gt

(ii) Consultation with Local Stakeholders

In Viet Nam matters such as environmental impacts accompanying project implementation are

generally left to the judgment of the Peoples Committee and public comments are rarely solicited

from employees or local residents For this project as well we told Ralaco several times to question

stakeholders about their opinions as in the past when we aspired to carry out CDM projects

Finally in addition to explaining the automatic fuel-air ratio control system to furnace operators

Ralaco gathered local residents for an information session No particularly negative comments were

raised at that time

In this study Furnace B had been equipped with an IFC automatic fuel-air ratio control system

that had already demonstrated results so the plant employees generally had a positive attitude about

saving furnace energy Employees commented that they also want to improve energy efficiency for

Furnace C which is slated for an upgrade in 2014 due to its currently extremely high basic units of

energy

(iii) Monitoring Plan

In cooperation with Ralaco we formed a Monitoring Plan for this project which we organized

into the Monitoring Plan Sheet and Monitoring System Sheet

(iv) Calibration of Measuring Instruments

We confirmed that the fuel oil flow meters and electricity meters used in the furnaces as well as

the speed sensors used to calculate production volume are not calibrated This corresponds to all

Option C monitoring Since a margin of error of no more than plus or minus 5 is demanded by

JCM we need to stipulate recalibration for the monitoring system

(3) Project development and implementation

(i) Japanrsquos contribution

According to interviews with the Vietnam Glass Association and suppliers of raw materials for

glass glass production volumemdashprincipally of glass panesmdashhas continued to trend upward in

recent years as well With the greater production of liquid crystal products and other goods coupled

with rising construction demand in recent years additional installations of and renewed demand for

glass furnaces is forecast for the future as well

Japans glass furnaces have extremely high energy consumption efficiency due to technical

expertise accumulated over many years Therefore we can contribute to long-term reductions in

energy consumption as well as the popularization of and advancements in energy-saving technology

for the host country by transferring this sort of technology

Comparing performance and price with other countries technology it is thought that Japan will

compete with Chinese companies who have an advantage in price We confirmed that Ralaco too

has installed glass furnaces equipped with a Chinese-made automatic fuel-air ratio control system

When we inquired with them about initial costs they said Chinese products cost half as much as

Japanese ones and indicated that price or some other incentive would be needed in order to

JCM Demonstration Study (DS) 2013 ndash Final Report

lt11gt

encourage them to install Japanese-made technology

Because of this it is thought that providing a certain percentage of funding such as equipment

subsidies or issuing credit under the JCM system will promote the project and make it valid

In addition Ralaco is proactive in its CSR as exemplified by its release of products with a small

environmental impact It is thought that expectations of a publication effect could also help promote

this project to such companies as a project that applied the JCM framework

(ii) Environmental integrity

This project attempts to raise combustion efficiency and lower fuel consumption by optimizing

the atmospheric ratio of existing melting furnaces Thus by implementing this project there is

thought to be little negative effect in environmental terms and there will be no more than limited

noise and such due to construction accompanying the installation of energy-saving systems As a

positive effect the project will attempt to lessen atmospheric pollution by reducing the usage of

fossil fuels

(iii) Sustainable development in host country

It is believed that demand for glass will continue to grow in the host country Therefore pushing

ahead with the installation of energy-saving glass furnaces can while leading to better efficiency in

energy consumption also help improve the level of energy-saving technology in the long-term thus

enabling a large contribution to the sustainable development of the host country

Page 13: Energy efficiency improvement of glass furnacegec.jp/gec/en/Activities/fs_newmex/2013/2013ds04_rep.pdf · system, Plant engineering (design, supervise of construction, maintenance)

JCM Demonstration Study (DS) 2013 ndash Final Report

lt10gt

(ii) Consultation with Local Stakeholders

In Viet Nam matters such as environmental impacts accompanying project implementation are

generally left to the judgment of the Peoples Committee and public comments are rarely solicited

from employees or local residents For this project as well we told Ralaco several times to question

stakeholders about their opinions as in the past when we aspired to carry out CDM projects

Finally in addition to explaining the automatic fuel-air ratio control system to furnace operators

Ralaco gathered local residents for an information session No particularly negative comments were

raised at that time

In this study Furnace B had been equipped with an IFC automatic fuel-air ratio control system

that had already demonstrated results so the plant employees generally had a positive attitude about

saving furnace energy Employees commented that they also want to improve energy efficiency for

Furnace C which is slated for an upgrade in 2014 due to its currently extremely high basic units of

energy

(iii) Monitoring Plan

In cooperation with Ralaco we formed a Monitoring Plan for this project which we organized

into the Monitoring Plan Sheet and Monitoring System Sheet

(iv) Calibration of Measuring Instruments

We confirmed that the fuel oil flow meters and electricity meters used in the furnaces as well as

the speed sensors used to calculate production volume are not calibrated This corresponds to all

Option C monitoring Since a margin of error of no more than plus or minus 5 is demanded by

JCM we need to stipulate recalibration for the monitoring system

(3) Project development and implementation

(i) Japanrsquos contribution

According to interviews with the Vietnam Glass Association and suppliers of raw materials for

glass glass production volumemdashprincipally of glass panesmdashhas continued to trend upward in

recent years as well With the greater production of liquid crystal products and other goods coupled

with rising construction demand in recent years additional installations of and renewed demand for

glass furnaces is forecast for the future as well

Japans glass furnaces have extremely high energy consumption efficiency due to technical

expertise accumulated over many years Therefore we can contribute to long-term reductions in

energy consumption as well as the popularization of and advancements in energy-saving technology

for the host country by transferring this sort of technology

Comparing performance and price with other countries technology it is thought that Japan will

compete with Chinese companies who have an advantage in price We confirmed that Ralaco too

has installed glass furnaces equipped with a Chinese-made automatic fuel-air ratio control system

When we inquired with them about initial costs they said Chinese products cost half as much as

Japanese ones and indicated that price or some other incentive would be needed in order to

JCM Demonstration Study (DS) 2013 ndash Final Report

lt11gt

encourage them to install Japanese-made technology

Because of this it is thought that providing a certain percentage of funding such as equipment

subsidies or issuing credit under the JCM system will promote the project and make it valid

In addition Ralaco is proactive in its CSR as exemplified by its release of products with a small

environmental impact It is thought that expectations of a publication effect could also help promote

this project to such companies as a project that applied the JCM framework

(ii) Environmental integrity

This project attempts to raise combustion efficiency and lower fuel consumption by optimizing

the atmospheric ratio of existing melting furnaces Thus by implementing this project there is

thought to be little negative effect in environmental terms and there will be no more than limited

noise and such due to construction accompanying the installation of energy-saving systems As a

positive effect the project will attempt to lessen atmospheric pollution by reducing the usage of

fossil fuels

(iii) Sustainable development in host country

It is believed that demand for glass will continue to grow in the host country Therefore pushing

ahead with the installation of energy-saving glass furnaces can while leading to better efficiency in

energy consumption also help improve the level of energy-saving technology in the long-term thus

enabling a large contribution to the sustainable development of the host country

Page 14: Energy efficiency improvement of glass furnacegec.jp/gec/en/Activities/fs_newmex/2013/2013ds04_rep.pdf · system, Plant engineering (design, supervise of construction, maintenance)

JCM Demonstration Study (DS) 2013 ndash Final Report

lt11gt

encourage them to install Japanese-made technology

Because of this it is thought that providing a certain percentage of funding such as equipment

subsidies or issuing credit under the JCM system will promote the project and make it valid

In addition Ralaco is proactive in its CSR as exemplified by its release of products with a small

environmental impact It is thought that expectations of a publication effect could also help promote

this project to such companies as a project that applied the JCM framework

(ii) Environmental integrity

This project attempts to raise combustion efficiency and lower fuel consumption by optimizing

the atmospheric ratio of existing melting furnaces Thus by implementing this project there is

thought to be little negative effect in environmental terms and there will be no more than limited

noise and such due to construction accompanying the installation of energy-saving systems As a

positive effect the project will attempt to lessen atmospheric pollution by reducing the usage of

fossil fuels

(iii) Sustainable development in host country

It is believed that demand for glass will continue to grow in the host country Therefore pushing

ahead with the installation of energy-saving glass furnaces can while leading to better efficiency in

energy consumption also help improve the level of energy-saving technology in the long-term thus

enabling a large contribution to the sustainable development of the host country