EEESD’08 The 4th IASME/WSEAS International Conference Algarve, Portugal, June 11-13, 2008

IMPLEMENTATION OF CLEAN DEVELOPMENT MECHANISM (CDM)

METHODOLOGIES IN NATURAL GAS CHP PLANT

Table of contents

• Introduction

• Analysis of energy requirements in “Sojaprotein”

• Cogeneration plant selection

• Techno – economic study

• CDM project and CHP

• Selection of CDM methodology

• Application of CDM methodology

• Conclusion

Introduction

The sustainable development (3P principle):

• people – social dimension

• profit – economic dimension

• planet – ecological dimension

3P principle is not accomplishable in some countries.

CDM is mechanism which stimulate the economic dimension of project.

Analysis of energy requirements in “Sojaprotein”

Sojaprotein a.d. from Becej is a joint stock company for soybean processing.Only one of this kind in Serbia and the most significant in the Central and East Europe.• 900 t/day• 270.000 t/year

Energy sources used in Sojaprotein:• natural gas• masut (stand-by fuel) • electricity

Analysis of energy requirements in “Sojaprotein”

Annual energy consumption and energy costs in Sojaprotein.

Basic unitsConversion factor

Energy consumpti

on

Energy costs

[GJ] [€]Natural gas

10412213 [m3] 0,0342 355995,72 2 825 669,2

Electricity 24867840 [kWh]

3.6 x 10–3 89524,22 856 495,8

Total: 445 519,9 3 682 165

Analysis of energy requirements in “Sojaprotein”

The new Soy Protein Isolates and Concentrates Plant is planned to be constructed in the existing factory yard.Energy sources that will be used for the new plant:• natural gas• masut (stand-by fuel)• electricity • biomass

Energy requirements for the new plant:• electricity – 8,67 MWe• heat – 11,5 MWt for air heating • steam – 10 t/h dry saturated steam at 10 bar

Analysis of energy requirements in “Sojaprotein”

Review of existing energy equipments:• 2 x 14 t/h natural gas/masut boilers• 1 x 15 t/h biomass boiler (chopped soybean straw)

Energy requirements (Existing + New plant):• steam – 20÷24 t/h• heat – 11,5 MWt (heat the drying air for spray driers in a new plant)• electricity – 9÷10,5 MWe

Cogeneration?

Cogeneration plant selection

Load [%] 100 100 100 100 100Inlet Air Temperature

[°C] 11 -20 0 10 20

Power [MW] 10.55 11.90 11.18 10.61 9.94Efficiency Factor, Electric

[%] 31.95 32.48 32.31 31.96 31.50

Combustion Products Quantity

[kg/s] 41.80 46.20 43.67 41.98 40.06

Outlet Combustion Products Temp.

[°C] 487 459 477 486 494

Nominal Operation Characteristics of Cogeneration Plant.

Cogeneration plant selection

Techno – economic study

Costs = investment + maintenance + additional quantity of gas for cogeneration plant

Income = generated electricity

Investment Cost O&M Cost Gas price Electricity price

5000000 [e] 15 [e/h] 0,29 [e/m3] 0,0366 [e/kWh]

UNPROFITABLE (annual profit < annual costs)Actual electricity price for industry, being significantly lower from electricity price in neighborhood countries!(Hungary 0,1012 e/kWh, Romania 0,0894 e/kWh, Bulgaria 0,0588 e/kWh the price include all taxes 2007.)

CDM project and CHP

Types of Combined Energy Generation Projects within CDM Mechanism:I.CDM projects – Renewable energy resources II.CDM projects – Energy efficiency increaseIII.Other CDM projects

Some approved CDM methodology applicable for combined energy production projects:ACM002, ACM006, ACM0012, AM0014, AM0024, AM0036.

Selection of CDM methodology

Applicability of the mentioned methodologies is influenced directly by the conditions defined within each methodology.Based on the analysis carried out on the applicability of methodologies, AM0014 was selected.

Methodology AM0014 enable its application for combined heat and power generation, using natural gas as a fuel, with certain limitations.

Application of CDM methodology

Baseline Scenario – Power and Heat Energy Supply

Heat Energy Supply Power SupplyExisting facility

From existing boiler houseusing natural gas as a fuels Grid-connected

New SPI Plant

Construction of a new boilerhouse, using natural gas as afuel

Grid-connected

Through applied methodology AM0014 for the selected CHP plant in Sojaprotein, the achieved savings could be 51,034.5 eq/year or approx. 360,000 €/year, using equivalent emission value for 1t CO2 eq = 7 euro.

Application of CDM methodology

ABECBF - Annual baseline scenario energy consumption [GJ/year] 455,600

CAHO - Annual heat energy production in a combined plant

[GJ/year] 410,040

eb - Coefficient of efficiency for boilers in industrial facilities (proposed value for calculation) [-] 0.9

AOH - Annual operation hours of facility [h/year] 6700

NoWD - Number of working days [w.d./year]

335

Baseline scenario

TBEth -Total equivalent emission of CO2, produced by natural gas combustion in baseline scenario t CO2/year 103,591

Project scenario

TPEth

Total equivalent emission of CO2, produced by natural gas combustion in project scenario t CO2/year 52 556,5

Achieved savings through CDM project application: t CO2/year 51 034,5

Conclusion

Based on the results obtained from techno-economic study, it could be concluded that the construction of selected cogeneration plant is unprofitable one in this moment, due to an actual power cost.

Referring the selection of CDM methodology for combined power and heat energy, the analysis of approved methodologies was done.

Only the technical analysis of CDM project application is shown in this paper, without any financial analysis, as well as any analysis of the project “supplementary“.

Conclusion

The first obstacle for CDM project realization is nonexistence of Designated National Authorities (DNA), required for CDM project realization in Republic of Serbia.

For the case of CDM project component application, the following limitations should be kept in mind: • financial transparency of proposed projects,• complexity of CDM cycle itself, • CDM project risks, • time required for project cycle realization (1-2 years), • costs associated with CDM project realization