E&YCDM Presentation BALCO 260707

8/12/2019 E&YCDM Presentation BALCO 260707

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Climate Change Business

Opportunities

Climate Change BusinessClimate Change Business

OpportunitiesOpportunities

2 !@#

GHG and climate changeGHG and climate changeGHG and climate change

Green house gas(GHG)

Carbon-di-oxide (CO2)

Methane (CH4)

Nitrous oxide (N2O)

Per fluoro carbons (PFCs)

Hydro fluoro carbons (HFCs)

Sulphur hexa fluoride (SF6)

Green house gas(GHG)

Carbon-di-oxide (CO2)

Methane (CH4)

Nitrous oxide (N2O)

Per fluoro carbons (PFCs)

Hydro fluoro carbons (HFCs)

Sulphur hexa fluoride (SF6)

Global WarmingPotential (GWP)

1

21

310

Upto 9,500

Upto 11,700

23,900

Global WarmingPotential (GWP)

1

21

310

Upto 9,500

Upto 11,700

23,900

Human activities are increasing the concentration of Green

House Gases (GHGs) in the atmosphere.

This enhances the green house effect, commonly known as

Climate Change

Human activities are increasing the concentration of Green

House Gases (GHGs) in the atmosphere.

This enhances the green house effect, commonly known as

Climate Change


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United Nation Framework Convention on Climate Change

(UNFCCC) adopted in Rio - Earth Summit 1992

First Major Initiative for International Cooperation in the area of

GHG mitigation

Primary objective being stabilization of GHG concentrations in

the atmosphere that would prevent interference with the

climate system.

Further strengthened at Kyoto in 1997, wherein the nations of

the world agreed that industrialized countries will reduce their

aggregate emission by 5.2% below 1990 levels by 2008-12

Global Initiatives on Climate ChangeGlobal Initiatives on Climate ChangeGlobal Initiatives on Climate Change

Kyoto Protocol entered into force on 16th Feb 2005Kyoto Protocol entered into force on 16th Feb 2005

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Kyoto Protocol and CDMKyoto Protocol and CDMKyoto Protocol and CDM

Kyoto protocol - Establishes three mechanisms to

supplement national actions to achieve real, long term,

measurable and cost effective GHG reductions:

Clean Development Mechanism (CDM!)

International Emission Trading (IET!)

Joint Implementation (JI!)

Legally binding emission reduction targets for

GHGs only for Annex-1 (i.e., developed ) countries

Aim of reducing overall GHG emissions by at least

5.2% below 1990 levels in 2008-2012 commitment

period

Legally binding emission reduction targets for

GHGs only for Annex-1 (i.e., developed ) countries

Aim of reducing overall GHG emissions by at least

5.2% below 1990 levels in 2008-2012 commitment

period

Developed

Country Govt/

Pvt. Sector

Developing Country

GHG Abatement

Project

Carbon

Credits

Sale

proceeds

Carbon credits are measured in terms of Certified Emission Reduction (CER)

One CER equals 1 MT CO2 equivalent

Carbon credits are measured in terms of Certified Emission Reduction (CER)

One CER equals 1 MT CO2 equivalent


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Typical Kyoto Opportunities(CDM Projects)

Renewable

energy

Waste

management

A/R projects

Waste heat

recovery

Hydro, Wind, Solar

Biomass / bagasse

Geothermal, Tidal

Cement

Steel / metallurgical

Coke ovens

Industrial fuel switch

(fossil -> clean)

Energy

efficiency

Fuel pelletsPower generation

Use as fuel

Waste-water mgmt. (biogas)

MSW management

Process

change Fertiliser: CO2 recovery

Refrigerant: HFC abatement

Aluminum: PFC control

Efficientgeneration

Electrical

Thermal / fuel

Process

Efficient machines

T&D loss reduction

Steam saving

Thermal efficiency

Fly ash in cement

LPG, Natural gas

Biomass

Transportation LPG, NG, Biodiesel

Modal shift, Pipeline

Carbon seqstration

Biodiesel production

6 !@#

Availing the carbon creditsAvailing the carbon creditsAvailing the carbon credits

Project

Identification

Documentation

(PCN & PDD)

PDD Validation

by DOE

Finding

buyer

Contract with

buyer

Registration

with UNFCCC

Project

Construction

Project

operation

Generation of

Carbon credits

Verification/

Certification by DOE

UNFCCC / EB

Issues CERs

Buyer pays

Project proponent

CDM PROJECTPROMOTER

BUYER OF CER CER

Endorsement

by DNA

E&YE&Y

E&YE&Y

E&YE&Y E&YE&Y

E&YE&Y

E&YE&Y

E&YE&Y

PCN : Project Concept Note

PDD : Project Design Documentation

DOE : Designated Operational Entity

DNA : Designated National Authority of Host Country

CER : Certified Emission Reduction


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Qualifying criteriaQualifying criteriaQualifying criteria

Project start date on or after 1st January 2000

Cannot be a legal mandate

Should meet all additionality criteria as prescribed

by UNFCCC

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Determining AdditionalityDeterminingDetermining AdditionalityAdditionality

Whether project started after Jan 2000?

Whether CDM considered at the start of the project?

Documentary evidence?

Whether there is any regulatory/legal compulsion for the project?

Whether financial additionality exists?

Does CDM benefit makes the IRR acceptable?

Whether barrier overcome is demonstrated?

Technological barrier

Investment barrier (other than IRR)

Barrier due to prevailing practiceAny other barrier

Does it meet common practice test?

Whether similar other projects are also seeking CDM benefit?

Will CDM benefit help in alleviating the barrier?

Whether project started after Jan 2000?

Whether CDM considered at the start of the project?

Documentary evidence?

Whether there is any regulatory/legal compulsion for the project?

Whether financial additionality exists?

Does CDM benefit makes the IRR acceptable?

Whether barrier overcome is demonstrated?

Technological barrier

Investment barrier (other than IRR)

Barrier due to prevailing practiceAny other barrier

Does it meet common practice test?

Whether similar other projects are also seeking CDM benefit?

Will CDM benefit help in alleviating the barrier?

Conclude whether project additional or notConclude whether project additional or not


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Carbon funds are available throughCarbon funds are available throughCarbon funds are available through

International tenders for CDM projects

Voluntary corporate initiatives

Multilateral Funds

EU commitment for carbon purchase through various schemes

Bilateral negotiations with the consortium of buyers

Carbon PriceCarbon PriceCarbon Price

Its a market-driven price

Approx prevailing price: Euro 10-15 / t of CO2-eqv

Its a market-driven price

Approx prevailing price: Euro 10-15 / t of CO2-eqv

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How Ernst & Young helpsHow Ernst & Young helpsHow Ernst & Young helps

Help in identification of project

Preparation of PIN and PCN

Preparation of Project Design Document

(PDD)

- Baseline study

- Environmental impact

- M & V Protocol

- Stakeholders comments

Assistance in PDD validation

Assistance in endorsement from the Ministry of Environment and Forests, GoI

Identify buyer of carbon credit for your project and facilitation for entering into

contract

Facilitation for certification of CERs throughout the crediting period


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Why Ernst & YoungWhy Ernst & Young

C

limateChangeAdvisory

S

ervices

C

limateChangeAdvisory

S

ervices

12 !@#

Our Strength in CDM AdvisoryOur Strength in CDM AdvisoryOur Strength in CDM Advisory

Largest Market Share of registered CDM

Projects in the country (40%)

Knowledge Leadership and involvement in

Kyoto Protocol from early stages

Large team of Engineers and Post Graduates

with Energy and Environment background

CDM expertise at all the seven offices of E&Y in

India

International network

We are providing

CDM Advisory services to

> 475 CDM projects

150 approved by DNA

105 projects registered

OVER 35 transactions facilitated

Developed

6 Baseline

Methodologies

We are providing

CDM Advisory services to

> 475 CDM projects

150 approved by DNA

105 projects registered

OVER 35 transactions facilitated

Developed

6 Baseline

Methodologies

As on 18th July 2007:

Number of projects registered globally is 750+.

Number of projects registered from India is 257.

And number of projects

registered by E&Y is 105.

As on 18th July 2007:

Number of projects registered globally is 750+.

Number of projects registered from India is 257.

And number of projects

registered by E&Y is 105.


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Projects Registered - India

105, 41%

152, 59%

E&Y Others

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Consolidated Methodology for Increasing the Blend in Cement Production

--- Version 2

ACM 0005

Avoidance of methane from pit charcoal manufacturing processAMS IIIK

Waste gas and/or waste heat based steam generation or steam & power

generation [approved by meth panel to come up as consolidated

methodology]

NM 0179-rev

Consolidated methodology for waste gas and/or heat for powergeneration --- Version 2

ACM 0004

Consolidated methodology for grid-connected electricity generation fromrenewable sources --- Version 5

ACM0002

Steam optimization systemsAM 0018

Methodology TitleMethodology

Number

Experience in developing Baseline and Monitoring

methodology

Experience in developing Baseline and Monitoring

methodology


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Metal/Iron and Steel Sector CredentialsMetal/Iron and Steel Sector Credentials

16 !@#

Some E&Y CredentialsSome E&Y Credentialsin Metal/Iron & Steel Sectorin Metal/Iron & Steel Sector

SAIL1 project

Tata Steel2 projects

Tata Metaliks1 project

Tata Sponge Iron2 projects

Ispat Industries2 projects

Usha Martin2 projects

Orissa Sponge Iron1 project

Monnet Ispat1 project

Essar Steel Limited2 projects

Shri Ramrupai1 project

Jai Balaji1 project

Ispat Godawari1 project


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Some E&Y CredentialsSome E&Y Credentialsin Metal/Iron & Steel Sectorin Metal/Iron & Steel Sector

Sterlite Industries5 projects

Sesa Goa Limited2 projects

OCL India1 project

Chhattisgarh Electricity

MSP Steel1 project

1 project

Jindal Steel Power1 project

Visa Steel2 project

Neelachal Ispat NigamLtd3 project

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Power Sector projectsPower Sector projects


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1 project

Maharashtra Energy

Development Agency

1 project

Calcutta Electricity

Supply Corporation

(CESC) Limited

3 project

Satyam Power

Company Limited

Chambal Power Limited

1 project

Aban Power Company

Limited

1 project

Tripura Power

Development Company

Pvt. Limited

1 project

Lanco Kondapalli

Power Pvt Limited

1 project

Raja Bhaskar Power

Generation Ltd

1 project

Hoogly Met Coke &Power Company

1 project1 project

Some E&Y CDM CredentialsSome E&Y CDM Credentials in power sector projectsin power sector projects

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1 project

Lakshmi OverseasIndustries Limited

1 project

Sandur Power

Company Limited

3 project

OPG Energy Private

Limited

Santoshimatha Power

Projects Limited

1 project

Malwa Power PrivateLimited

1 project

Patikari Power Private

Limited

1 project

Some E&Y CDM CredentialsSome E&Y CDM Credentials in power sector projectsin power sector projects


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Cement Sector CredentialsCement Sector Credentials

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Some E&Y CredentialsSome E&Y Credentialsin Cement Sectorin Cement Sector

Aditya Birla Group} Ultratech Cement 2 projects

}Aditya Cement 1 project

} Grasim South 2 projects

} Vikram Cement 3 projects

} Rajashree Cement 5 projects

} Grasim Raipur 2 projects

B K Birla GroupKesoram Industries Limited :

Vasavadatta Cement 2 projects

M P Birla Group} Satna Cement Works 1 project

} Chittor Cement Works 2 projects

} Durgapur Cement Works 1 project

} Raebarili Cement Works 1 project

Shree Cement3 projects

Dalmia Cement1 project

Binani Cement3 projects

OCL India2 projects

JK Cements1 project


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Biomass based power projectsBiomass based power projects

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Some E&Y CredentialsSome E&Y Credentialsin Biomass Power Generation Projectsin Biomass Power Generation Projects

Clarion PowerCorporation Ltd., A.P.(Rich husk)

Alwar Power Company Ltd.,Rajasthan(Mustard crop residue)

Nahar Spinning Mills Ltd.,Punjab(Rice Husk)

Oswal Woollen Mills Ltd.,Punjab(Rice Husk)

Vandana Vidhyut Ltd.,Chattisgarh(Rich husk)

Balarampur Chini Mills Ltd.,U.P.(Bagasse Cogen)

Triveni Engineering andIndustries Ltd., U.P.(Bagasse Cogen)

Bannari Amman Sugars Ltd.,Karnataka(Bagasse Cogen)

Godavari Sugar MillsLtd., Karnataka(Bagasse Cogen)

Hassan Biomass,Karnataka(Rich husk)

KMS Power Pvt. Ltd.,A.P.(Rich husk)

Sri ChamundeswariSugars Ltd., Karnataka(Bagasse Cogen)


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Some E&Y CredentialsSome E&Y Credentials in Biomass Power Generation Projectsin Biomass Power Generation Projects

Deepak Spinners Ltd.,M.P.(Rich husk)

Amrit Projects,W.B.(Rich husk)

SCM Sugars Ltd.,Karnataka(Bagasse Congen)

Dhampur Sugars Ltd.,U.P.(Bagasse Congen)

EID Parry, Ltd.T.N.(Bagasse Congen)

Satya Maharishi PowerCorp. Ltd.(Rice husk)

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E&Y CDM Credentials in Wind-power SectorE&Y CDM Credentials in Wind-power Sector


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Some E&Y CredentialsSome E&Y Credentialsin Windin Wind--power Sectorpower Sector

MSPL3 projects

Suguna Poultry Farm1 project

Godrej Agrovet Limited1 project

Bellary Iron OrePrivate Limited1 project

Hindustan ZincLimited2 projects

Khivraj Motors1 project

RBSSN Limited1 project

Encon Services1 project

Bannari Amman Group2 project

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Some E&Y CredentialsSome E&Y Credentialsin Windin Wind--power Sectorpower Sector

Alembic Ltd1 project

Nuziveedu Seeds1 project

Shiva Texyarn1 project

Y MahabaleshwarappaSons1 project

Fairdeal Supplies1 project


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Hydro power projectsHydro power projects

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Some E&Y CredentialsSome E&Y Credentialsinin HydelHydelPower Based ProjectsPower Based Projects

Himalayan Crest Power} 3 MW at Chandni in Sirmour District

} 3 MW at Manal in Sirmour District

} 3 MW at Timbi in Sirmour District

} 3 MW at Hurlain Kullu District

} 5 MW at Kurpan in Kullu District

Subhash Kabini PowerCorporation2 x 10 MW at Kabini dam

in Karnataka

Ambuthirtha Power Pvt. Ltd.2 x 11 MW

Swasti Power22.5 MW Hydel Project

at Bhilangana, Uttaranchal

Punjab Hydro Power Ltd.} 4.2 MW (1.4 MW + 1.5 MW + 1.3 MW)

at Dolowal, Salar, Bhanubhura inSangrur district

} 5.2 MW (2 MW + 2 MW + 1.2 MW) atLohgarh, Chakbhai, Sidhana in

Sangrur district

} 3.9 MW (1 MW + 1.9 MW + 1 MW) atBabanpur, Killa, Sahoke in Sangrur

district

Shyam Energy Ltd.1 x 6 MW

Neora Hydro Limited1 X 3 MW

Ginni International2 X 5 MW

Jaypee Karcham (JaiprakashAssociates)4 X 250 MW


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Oil & Gas/Petrochemicals Sector CredentialsOil & Gas/Petrochemicals Sector Credentials

32 !@#

Some E&Y CredentialsSome E&Y Credentialsin Oil & Gas/Petrochemicals Sectorin Oil & Gas/Petrochemicals Sector

Essar Oil Limited

Numaligarh RefineryLimited

3 projects

1 project

Haldia PetrochemicalsLimited3 projects

Oil Natural GasCorporation13 projects

Reliance IndustriesLimited4 projects

Indian OilCorporation6 projects

Bharat PetroleumCorporation Ltd5 projects

GAILExploratory Study of GHGreduction potential


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Some other E&Y CredentialsSome other E&Y Credentials

34 !@#

Some more E&Y CDM CredentialsSome more E&Y CDM Credentials

Aditya Birla Group} Indian Rayon & Industries Limited

3 projects

} Indo Gulf Fertiliser 1 project

B K Birla Group} Kesoram Industries Limited : Birla

Tyres 1 project

} Kesoram Industries Limited :

Kesroam Rayon 1 project

RPG Group} CESC Ltd. 3 projects

} Phillips Carbon Black Limited

2 projects

MEDA1 project

The AP Paper Mill

1 project

Lanco Group} Lanco KondapalliPower 1 project

} Encon Services 1 project

} Aban Power 1 project

} Rithwik Power 1 project

Appollo Tyres1 project

Indur Green1 project

Hindustan Lever2 projects

IFFCO2 projects

BILT3 projects

Chambal Power1 project

OPG Limited1 project


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Some more E&Y CDM CredentialsSome more E&Y CDM Credentials

TNPL1 project

ISA Power1 project

KM Sugar1 project

Sagar Sugar1 project

NCS Sugar1 project

Naturol Bioenergy1 project

KMS Power1 project

Tata Refractories1 project

Clean Development Mechanism & Indian Fertilizer Industry

Aluminium Industry

&

Potential CDM Projects


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Aluminium Plants In IndiaAluminium Plants In IndiaAluminium Plants In India

The Aluminium Plants in India are :

HINDALCO : 0.242 MTPA

BALCO : 0.100 MTPA

NALCO : 0.230 MTPA

INDAL : 0.110 MTPA

MALCO : 0.030 MTPA

TOTAL : 0.712 MTPA (1.2% of Global)

The Aluminium Plants in India are :

HINDALCO : 0.242 MTPA

BALCO : 0.100 MTPA

NALCO : 0.230 MTPA

INDAL : 0.110 MTPA

MALCO : 0.030 MTPA

TOTAL : 0.712 MTPA (1.2% of Global)

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Aluminium Industry Energy IntensiveAluminium IndustryAluminium Industry Energy IntensiveEnergy Intensive

The Indian Auminium industry has a high power

consumption rate (15,000 - 18, 000 KWh / t Al) with

power costs constituting 20-40 % of the operating

costs. Globally, the power consumption rate is 13,000 -

15,000 kWh / t Al

The energy required to produce 1 tonne of aluminum

metal is roughly equivalent to the amount needed to

produce 138 tonnes of cement, 40 tonnes of urea, 27

tonnes of steel, 13 tonnes of paper, four tonnes of

cotton yarn, or 5.6 tonnes of caustic soda.

Thermal coal is primarily used for power generation in

captive power plants in Aluminium industries. Diesel,

liquefied petroleum gas (LPG), naphtha, and fuel oil

are some other fuels used in the production of

Aluminium.

The Indian Auminium industry has a high power

consumption rate (15,000 - 18, 000 KWh / t Al) with

power costs constituting 20-40 % of the operating

costs. Globally, the power consumption rate is 13,000 -

15,000 kWh / t Al

The energy required to produce 1 tonne of aluminum

metal is roughly equivalent to the amount needed to

produce 138 tonnes of cement, 40 tonnes of urea, 27

tonnes of steel, 13 tonnes of paper, four tonnes of

cotton yarn, or 5.6 tonnes of caustic soda.

Thermal coal is primarily used for power generation in

captive power plants in Aluminium industries. Diesel,

liquefied petroleum gas (LPG), naphtha, and fuel oil

are some other fuels used in the production of

Aluminium.


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Aluminum Production GHG EmissionsAluminum ProductionAluminum Production GHG EmissionsGHG EmissionsThe GHG Emissions at various stages ofthe Aluminium production are as follows:

Alumina Production:1.5-2.5 t CO2 e / t Al

Electricity input : 15.6 MWh/t Al;

0-20 t CO2 e / t Al

Anode Carbon: 1.7-2.1 t CO2 e / t Al

PFC Generation: 0.02-24.5 t CO2 e/t Al

CF4 and C2F6 (Two Perfluoro Carbonscontribute to 40% of direct primaryAluminium GHG Emissions

The GHG Emissions at various stages ofthe Aluminium production are as follows:

Alumina Production:1.5-2.5 t CO2 e / t Al

Electricity input : 15.6 MWh/t Al;

0-20 t CO2 e / t Al

Anode Carbon: 1.7-2.1 t CO2 e / t Al

PFC Generation: 0.02-24.5 t CO2 e/t Al

CF4 and C2F6 (Two Perfluoro Carbonscontribute to 40% of direct primaryAluminium GHG Emissions

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Aluminium Industry Process FlowAluminium IndustryAluminium Industry Process FlowProcess Flow

Bauxite, an aluminum ore is mined and

refined into alumina.

Then alumina is transformed into metallic

aluminum through Electrolytic reduction

in smelters.

Metallic Aluminium is then processed

(rolled, casted) to make finished products. The Smelting operation is the most

energy intensive and causes CO2 and PFC

emissions. The extent of energy required

and associated emissions largely depend

upon the type of technology used.

Bauxite, an aluminum ore is mined and

refined into alumina.

Then alumina is transformed into metallic

aluminum through Electrolytic reduction

in smelters.

Metallic Aluminium is then processed

(rolled, casted) to make finished products.

The Smelting operation is the most

energy intensive and causes CO2 and PFC

emissions. The extent of energy required

and associated emissions largely depend

upon the type of technology used.


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Aluminium Manufacturing Process - Sources of EmissionsAluminium Manufacturing ProcessAluminium Manufacturing Process -- Sources of EmissionsSources of EmissionsCO2 Emissions

1. Bauxite Refining and Supporting Processes

2. Electrolytic reduction of Alumina (Smelting)

3. Smelting Supporting Processes

PFC Emissions

1. Smelting Process

The major Source of GHG Emission is the Smelting

Process as it is most energy intensive and therefore the

associated GHG emissions are high.

CO2 Emissions

1. Bauxite Refining and Supporting Processes

2. Electrolytic reduction of Alumina (Smelting)

3. Smelting Supporting Processes

PFC Emissions

1. Smelting Process

The major Source of GHG Emission is the Smelting

Process as it is most energy intensive and therefore the

associated GHG emissions are high.

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Potential CDM projects in Aluminium IndustryPotential CDM projects in Aluminium IndustryPotential CDM projects in Aluminium Industry

Project Type

1. PFC reduction projects

2. Process improvement projects

3. Energy efficiency projects

Project Type

1. PFC reduction projects

2. Process improvement projects

3. Energy efficiency projects


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Methodologies applicable to Aluminium industryMethodologies applicable to Aluminium industryMethodologies applicable to Aluminium industryIndustry Specific MethodologiesAM 0030 : PFC emission reductions from anode effect

mitigation at primary aluminium smelting facilities

Generic Methodologies

ACM0004 : Consolidated methodology for waste gas and/or

heat for power generation - Version 2

ACM0009 : Consolidated methodology for industrial fuel

switching from coal or petroleum fuels to natural

gas - Version 3

AMS-II.A. : Supply side energy efficiency improvements

transmission and distributionAMS-II.B. : Supply side energy efficiency improvements

generation

AMS-II.C. : Demand-side energy efficiency programmes for

specific technologies

AMS-II.D. : Energy efficiency and fuel switching measures for

industrial facilities

-

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Approved Methodology AM0030Approved Methodology AM0030Approved Methodology AM0030

1. Approved methodology AM0030 - PFC emission

reductions from anode effect mitigation at primaryaluminium smelting facilities

- developed by MGM International for project PFCemission reductions at ALUAR Aluminio Argentino

2. Salient Features

1. Primarily aimed at the avoidance of PFC emissions in

Aluminium smelting facilities that use center work pre-bake cell

technology with bar brake (CWPB) or point feeder systems(PFPB);

2. Requires three years historical data regarding current

efficiency, anode effect

3. At Aluminium smelting facilities that started operations before 31

December 2002;

4. At facilities where the existing number of pot lines and pots

within the system boundary is not increased during the crediting

period

1. Approved methodology AM0030 - PFC emission

reductions from anode effect mitigation at primary

aluminium smelting facilities

- developed by MGM International for project PFCemission reductions at ALUAR Aluminio Argentino

2. Salient Features

1. Primarily aimed at the avoidance of PFC emissions in

Aluminium smelting facilities that use center work pre-bake cell

technology with bar brake (CWPB) or point feeder systems(PFPB);

2. Requires three years historical data regarding current

efficiency, anode effect

3. At Aluminium smelting facilities that started operations before 31

December 2002;

4. At facilities where the existing number of pot lines and pots

within the system boundary is not increased during the crediting

period


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PFC Reduction ProjectPFC Reduction ProjectPFC Reduction Project1. Fluoride contained in the raw material and anode carbon results in formation of

PFC

2. Level of PFC formation and emissions depends on type of technology, and

process conditions

3. A reduction in PFC generation can be attained by:

1. By switching to better smelting technology

2. By optimizing process of the technology in use

3. By capturing and recycling PFC gases

4. Few examples of the potential projects are:

1. Installation of point break feeders (PBF) in horizontal stud Soderberg (HSS) cells in aluminum

plants

2. Reduction in GHGs emission from primary aluminium smelter

3. PFC reduction by continous feeding of Aluminium plant

1. Fluoride contained in the raw material and anode carbon results in formation of

PFC

2. Level of PFC formation and emissions depends on type of technology, and

process conditions

3. A reduction in PFC generation can be attained by:

1. By switching to better smelting technology

2. By optimizing process of the technology in use

3. By capturing and recycling PFC gases

4. Few examples of the potential projects are:

1. Installation of point break feeders (PBF) in horizontal stud Soderberg (HSS) cells in aluminum

plants

2. Reduction in GHGs emission from primary aluminium smelter

3. PFC reduction by continous feeding of Aluminium plant

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Energy Efficiency ProjectsEnergy Efficiency ProjectsEnergy Efficiency Projects1. Various Energy Efficiency Projects that are applicable in

the aluminium industry are as follows:

1. Waste heat recovery

2. Co-generation

3. Smelter technology change to point feeder pre-bake (PFPB)

2. Other energy saving projects can be:

1. Improvements in bath chemistry;

2. Improved insulation to reduce heat losses;

3. Improved baking technology for carbon anodes;

4. Reduced carbon anode consumption per kilogram of

aluminium produced.

5. Optimizing burner positioning to enhance heat transfer in

Reverberatory furnaces

6. Improving air tightness in furnaces


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CDM Projects - Aluminium SectorCDM ProjectsCDM Projects --Aluminium SectorAluminium Sector Aluminium Sector Projects

PFC emission reductions at ALUAR Aluminio Argentino

Under Validation stage

CERs : 86,000

Reduction in PFC emissions from primary Aluminium

smelters at Hindalco, Hirakud

Methodology Rejected

CERs : 912,000

PFC emission reduction through installation of Point

Break Feeders (PBF) in 468 Horizontal Stud Soderberg

(HSS) Cells in aluminum plants at INDAL, Hirakud -

Methodology Rejected

CERs : 256,000

48

CDM Projects - Aluminium Sector (contd.)CDM ProjectsCDM Projects --Aluminium Sector (Aluminium Sector (contdcontd.).)Other projects in the Aluminium Sector

Registered

Yangquan Coal mine methane Advanced Industrial Furnace

Utilization Project

Technology A gas suspension furnace is installed to utilize

Coal mine methane as fuel in the Al(OH)3 roasting process

CERs : 965,000

Under Validation

Fuel Switch Project of Shanxi Luneng Jinbei Aluminium Co., Ltd. Technology the project involves switch over from higher

carbon intensive fuel to lower carbon intensive fuel.

CERs : 156,000

8.5 MW wind power project in Chitradurga district in Karnataka by

Jindal Aluminium Ltd CERs : 15,000


25/25

7/26/2007

49

SummarySummarySummary Aluminium is the second most consumed metal

in world.

Out of Indias total power consumption

(generation minus losses including pilferage),

50% is consumed by industry, and, out of this, as

much as 16% is consumed by the aluminum

industry.

Last but not the least, there are only a few CDM

projects in the Aluminium Industry.

Thus, there is enough scope of PFC emission

reduction and energy efficiency and vast CDM

potential in the Aluminium Industry.

Aluminium is the second most consumed metal

in world.

Out of Indias total power consumption

(generation minus losses including pilferage),

50% is consumed by industry, and, out of this, as

much as 16% is consumed by the aluminum

industry.

Last but not the least, there are only a few CDM

projects in the Aluminium Industry.

Thus, there is enough scope of PFC emission

reduction and energy efficiency and vast CDM

potential in the Aluminium Industry.

50

Data/info templateData/info templateData/info template

Stage at

present

Barriers/

Risks

GHG saved

quantification/ fossil

fuel saving/ energy

svings

Cap.

Invest-

ment

Date of

implemen

tation

Project description with how it

results in energy

efficiency/fossil fuel

savings/direct GHG emission

reduction

Sl.

Documents

E&YCDM Presentation BALCO 260707