Program organization research of Low-rank coal fuel waste heat drying project in a cement factory

22nd February, 2013

Ube Industries Ube Machinery Corporation Mizuho Information & Research Institute

NEDOs Feasibility Studies with the Aim of Developing a Joint Crediting Mechanism(JCM) SectorCement

Contents

1. 2. 3. 4. 5. 6. 7.

Project Outline Low-rank Coal Utilization Expansion Waste Heat Coal Drying Technology Reference Scenario setting Emission Reduction Calculation Estimated Potential of CO2 Reduction Conclusions
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NEDOs Feasibility Studies with the Aim of Developing a Joint Crediting Mechanism(JCM) SectorCement

1. Project Outline
Objective
Advancing on low-rank coal utilization expansion to meet increase of domestic coal demand, propagation of waste heat recovery system for coal drying to the existing cement plant aimed at both low-rank coal utilization and CO2 reduction can be achieved large reduction potential.

Survey in Summary
The effect of adoption the low-temperature waste heat recovery system for low-rank coal fuel drying into the existing cement plant will be evaluated in respect of utilization expansion of low-rank coal and its energy cost saving, and estimated the CO2 reduction potential.

Partner / Site
PT Semen Padang Indonesia, West Sumatra 3

NEDOs Feasibility Studies with the Aim of Developing a Joint Crediting Mechanism(JCM) SectorCement

1. Project Outline
Current Circumstances of Indonesian coal

Indonesian economic growth has been significantly developing and will continue in the future: (1) Indonesia will be needed to meet coal demands by foreign countries, while responding to sharply increase of domestic coal demands with its economic growth. (2) Indonesian government positions the domestic use of low-rank coal which has large reserve, as an economic growth measure. (3) In general, economic growth tends to lead to increase of CO2 emissions. It increases also by conversion into low-rank coal as the same. (4) However, the Indonesian government is trying as much as possible to suppress an increase of CO2 emissions with it's economic growth. (5) Low-rank coal utilization technology to realize the Low-Carbon Economic Growth" has been expected.

Possible Problems by Shifting from High(mid)-rank coal to Low-rank coal:

Increase of CO2 emissions Decrease in energy utilization efficiency or production efficiency (quantity)

Drying process with employed Low-temperature Waste Heat Recovery is Effective for Low-carbon Economic Growth.

Low-rank Coal

NEDOs Feasibility Studies with the Aim of Developing a Joint Crediting Mechanism(JCM) SectorCement

2. Low-rank coal Utilization Expansion

Current Circumstances and Projection of Indonesian coal
1. Only by medium-high-rank coal used as currently, both coal demand of domestic and export cannot be satisfied. 2. Especially to correspond to the drastic growth of domestic coal demand, low-rank coal with abundant reserve is required to be utilized. 3. The superiority of low-rank coal price merit is invariable. (See next.) 4. Projection planning of electricity sector which takes 65% of domestic demands also appropriates an increased part by low-rank coal. Low-rank coal ratio taken in the amount of the coal used plan to increase from 26% in 2011 to 54% in 2015. Cement sector seems to be most similar situation. And ratio of low-rank coal taken in the amount of coal used increases, and the coal rank conversion to Low from Medium + High proceeds also in existing plant. Minable years of coal reserves in Indonesia
Coal Rank Low Calorie Medium Calorie High Calorie Very High Calorie Total CV (air dry basis) [kcal/kg] <5,100 5,100-6,100 6,100-7,100 >7,100 Probable Reserve (A) [Mt] 8,709 9,967 2,272 182 13,448 Actual Production 2011 (B) [Mt] 35 198 94 327 Minable years (A/B) [y] 248 50 24 (41)

Coal production and domestic sales and export

600 500 400

Coal Consumption for each Coal rank by PLN Annual Consumption [Mt/y] 120 100 80 60 40 20 0 2011 2012 2013 2014 2015

Coal [Mt]

300 200 100 0

Production Domestic Sales Export

Low
Medium

2007 2008 2009 2010 2015 2020 2025 2030 2050

Source: Ministries of Energy and Mineral Resources

High

NEDOs Feasibility Studies with the Aim of Developing a Joint Crediting Mechanism(JCM) SectorCement

2. Low-rank coal Utilization Expansion

Current circumstances of Indonesian coal market trend
ICI-1 ICI-2 ICI-3 ICI-4 ICI-5

100 Index of calorie unit price ratio (ICI-1=100) [-]

ICI1

ICI2 ICI3

140 120

2012 average

90 Economical Merit

ICI4

ICI price [U$/t]

100 80 60 40 20
Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12

80

ICI5

70

60

Waste Heat Drying 0 10 20 30 40 50

50

Month - Year Coal Price Index (2009-2012)

Total Moisture (%) Caloric Unit Price Merit depend on TM (2012) 6

The superiority of low-rank coal price merit is invariable

NEDOs Feasibility Studies with the Aim of Developing a Joint Crediting Mechanism(JCM) SectorCement

3. Waste Heat Coal Drying Technology

Concept of Waste heat coal drying system (1) Coal dryer" is installed on the coal supply line of the existing cement plant. ( = Paddle type dryer of UMC original development ) (2) Heat Recovery of unused waste-heat from clinker cooler is connected. SP Waste Gas

Coal

Fuel Conversion to low rank coal is realized

Coal Mill

Conditioner Suspension Pre-heater EP Rotary Kiln NSP Tower Raw Materials

Air

(1) Coal Dryer

Limestone Mill

Stack

(2) Heat Recovery

Scope of facilities to be extended

Cooler Fan

Cement Production Process

Clinker Silo

NEDOs Feasibility Studies with the Aim of Developing a Joint Crediting Mechanism(JCM) SectorCement

3. Waste Heat Coal Drying Technology

Concept of UBE coal dryer
By drying low-rank coal through recovering unutilized low temperature waste heat (especially 70-200 deg.C) before feeding to the plant, a calorific value of the low-rank coal will be as much as that of high grade coal. Promoting low-rank coal utilization necessary to meet increase of domestic coal demand Abundant reserves of low-rank coal is advantageous for both stable supply and a price merit

Low-rank Coal

Waste Heat

Paddle type Dryer

Dried Coal (1) Concept of proposed technology is:

- Use waste heat from Industrial plant and/or own coal fired power plant - Reduce moisture content of lignite to as low level as sub-bituminous coal (ex. TM:50% (x1/2) 25%) - Taking advantage of existing plant - Without large-scale modification, the cheaper equipment cost is achieved

(2) Benefit of Ube's drying process: Suitable drier for low-temperature waste heat recovery system
- Recover unused waste heat at low temperature even in atmosphere composition gas - Dry coal at high drying efficiency under the considered safety operating condition - Ordinary sized coal in bulk fed directly to the coal dryer by existing coal handling systems.

NEDOs Feasibility Studies with the Aim of Developing a Joint Crediting Mechanism(JCM) SectorCement

3. Waste Heat Coal Drying Technology

Concept of waste heat coal drying and energy recovery process
92.3 t/h (3 x 30.8t/h) 45.0 %-TM High-moisture Coal
(From Existing Coal Conveyer)
185 260

50Coal

Clinker Cooler Waste Heate

Dryer

Bag Filter

Exshaust Gas

(*) Dry coal capacity = 487 k-t/y

65.5 22.5 t/h %-TM Dry Coal (To Existing Coal Mill)

Air

(2) Heat Recovery

(1) Coal Dryer

(3 x 21.8t/h)

Plot Plan
Area = 1,300m2 (48 x 28m)

NEDOs Feasibility Studies with the Aim of Developing a Joint Crediting Mechanism(JCM) SectorCement

4. Reference Scenario setting

Based on the sustainable Indonesian economic growth with in a view of sufficient coal supply-and-demand circumstances as a background, the scenario settling with aiming to achieve low-carbon growth was performed with considering to the expansion of low-rank coal utilization
Reference Scenario options Screening results Explanation Coal is directly input to a process. Based on the projection of Indonesian coal and its policy, the coal used will become lower rank coal. But using lower rank coal directly cause the reduction of production capacity. While economic growth will increase demand for cement sector, the choice of production by direct supply of low-rank coal is unlikely. Coal is input to a process after drying with coal (coal is selected because of economic attractive). It is consistent with the Indonesian measure to promote the use of low-rank coal. The coal drying technique is mature and feasible. This scenario is most feasible if this project doesnt exist. Coal is input to a process after pre-drying with low-temperature waste heat. This will become feasible only by using the technique to be installed this time. This scenario can realize the Indonesian policy to promote low-rank coal, with less CO2 emissions.

1. Without Drying

2. Fossil fuel Drying 3. Waste heat Drying

Reference Scenario Project Scenario

Reference ScenarioRS
CO2

Project ScenarioPJ
CO2 CO2

Fossil Fuel Heat Generator Coal Dryer

Waste Heat Heat Recovery Coal Dryer

CO2

Elec. Raw coal

Elec. Raw coal

Dry coal

Dry coal

The essence of proposed methodology is same to CDM methodology ACM0012 but proposed one include coal dryer in the boundary. And to evaluate the drying system, the simple and practical indirect monitoring is proposed.

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NEDOs Feasibility Studies with the Aim of Developing a Joint Crediting Mechanism(JCM) SectorCement

5. Emission Reductions Calculation

REy (Reference Emissions)
REfuel,y = HGPJRF EFCO2,fuel REfuel,y HGPJ
The reference CO2 emissions (from fossil fuel combustion) The amount of heat which is converted to product dry coal for the coal dryer by the project activity :Using PT monitoring value The efficiency of heat generator and dryer in the reference scenario (1(heat
generated/fossil fuel used)2(increased heat amount of coal/heat input to dryer))

PEy (Project Emissions)

PEfuel,y = 0
t-CO2/y

PEfuel,y

Project Emissions (fossil fuel)

t-CO2/y

Fossil fuel-derived Electricity-derived

Mcal/y

RF

:Estimated value

EFCO2,fuel

The CO2 emission factor of fossil fuel which is used for the coal dryer facility in the reference scenario :Default value

t-CO2 /Mcal

REelec,y = PRF,y TPJ,y EFCO2,elec,y 1,000 REelec,y PRF,y TPJ,y EFCO2,elec,y

The reference CO2 emissions (from electricity consumption) The rated power consumption of the coal dryer facility in the reference scenario :Estimated value The operating hours of the facility by the project activity :Monitoring value The CO2 emission factor of electricity :Default value t-CO2/y kW h/y t-CO2 /MWh

PEelec,y = ECPJ,y EFCO2,elec,y PEelec,y ECPJ,y EFCO2,elec,y

The project CO2 emissions (from electricity consumption) The electricity consumption of the coal dryer facilities by the project activity :Monitoring value The CO2 emission factor of electricity :Default value t-CO2/y MWh/y t-CO2 /MWh

ERy (Emission Reduction) = REy - PEy = (REfuel,y + REelec,y) - PEelec,y

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NEDOs Feasibility Studies with the Aim of Developing a Joint Crediting Mechanism(JCM) SectorCement

5. Emission Reductions Calculation

Conceptual diagram of monitoring method
Monitoring parameter (1) Electricity consumption measured by power meter PEelec,y
Heat receiving stream

Heat Recovery
( W2H2 )

Waste heat stream (air composition)

( W1H1 ) Coal

Coal dryer

Process
Air

Monitoring parameter (2 A. Direct measurement method

Measuring feed rate and analysis value (property) of coal, which were measured both at the inlet and the outlet of the coal dryer. Then calculating the W(Weight of coal) & H(Heat value of coal). HGPJ is calculated by HGPJ = (W2H2) - ( W1H1 )

Monitoring parameter (2 B. Indirect measurement method

Measuring flow rate, temperature and relative humidity of the gas both at the inlet and outlet of the coal dryer, then calculating the difference of water vapor amount contained in the gas by using those measured values. (The calculation result is equal to water amount drawn from the input coal.) By using the value of the water amount drawn from the input coal, finally calculating the increased heat amount from comparing the coal before/after drying.

Difficult to monitor continuously

Easy and highly accurate measurement method

(simple and practical )

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NEDOs Feasibility Studies with the Aim of Developing a Joint Crediting Mechanism(JCM) SectorCement

5. Emission Reduction Calculation

Symbol Parameters set before start of this project Monitoring parameter Explanation
The efficiency of heat generator and dryer (=1(RS)2(RS)) in the reference scenario The CO2 emission factor of fossil fuel which is used for the coal dryer facility in the reference scenario The rated power consumption of the coal dryer facility in the reference scenario The CO2 emission factor of electricity The amount of heat which is converted to product dry coal for the coal dryer by the project activity during the year Project operating time The electricity consumption of the coal dryer facility by the project activity during the year

Determination way
Designed value of assumed coal drier facilities that would be used in the reference scenario Estimating that the fossil fuel to be input is coal, and analyzing the input coal on a regular basis Designed value of assumed coal drier facilities that would be used in the reference scenario Using of the emission factor of a grid, or the emission factor of a power plant in the case where no grid is used To be upgraded as necessary. Continuous and automatic measuring and recording, by using temperature and flow rate data Continuous and automatic measuring and recording Continuous and automatic measuring and recording, by using electricity meter

RF EFCO2,fuel PRF,y EFCO2,elec,y

HGPJ T PJ,y EC PJ,y

REy (Reference Emissions) PEy (Project Emissions) REfuel,y = HGPJRF EFCO2,fuel Fossil fuel=119,662[Gcal/y]0.8[-]0.451[t-CO2/Gcal] PEfuel,y = 0 derived =67,310[t-CO2/y] REelec,y = PRF,y TPJ,y EFCO2,elec,y 1,000 PEelec,y = ECPJ,y EFCO2,elec,y Electricity=0 [t-CO2/y] =28,270[MWh/y] 0.743[t-CO2/MWh] derived <Conservative> =21,000[t-CO2/y] ERy (Emission Reduction) = REy - PEy = (REfuel,y + REelec,y ) - PEelec,y = ( 67,310 + 0) - ( 0 + 21,000 ) = 46,310 [tCO2/y]

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NEDOs Feasibility Studies with the Aim of Developing a Joint Crediting Mechanism(JCM) SectorCement

Calculation results of the Indonesian CO2 reduction potential of cement sector Before drying (TM=45%) 92.3 t/h Coal Consumption After drying (TM=22.5%) 65.5 t/h Annual Coal Requirement CO2 Reduction CO2 Reduction Potential Factor on Coal consumption
60
Annual Coal Consumption of Indonesian Cement sector

6. Estimated Potential of CO2 Reduction

Before drying (TM=45%) After drying (TM=22.5%) 0.687 Mt/y 0.487 Mt/y Coal Price merit = USD11.3M/y

(Based on current coal market)

46,310 t-CO2/y 0.0950 t-CO2/t-coal after drying

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Estimated and Possible Potential of CO2 reduction of Indonesian cement sector

Annual Coal Consumption [Mt] 50 40 30 20 0.77 10 0 0.08 0.17 0.27 0.85 0.94 1.03 1.14 1.25

Possible CO2 Reduction Potential Estimated CO2 Reduction Potential based on Increase coal demand from 2012

2.47 1.85 2.04 2.25 1.71 1.27 1.48

1.96
2

1.38

1.52

1.68

0.37

0.49

0.62

0.76

0.91

1.09

Low-rank coal
0

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Estimated CO2 Reduction [Mt]

2.72

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NEDOs Feasibility Studies with the Aim of Developing a Joint Crediting Mechanism(JCM) SectorCement

7. Conclusions
Simple and Practical MRV for Indonesian Low-Carbon Growth In order to effectively address the issue of climate change, each country will be needed to achieve low-carbon growth by utilizing technologies, markets, and finance. Based on the circumstances and the future orientations of Indonesia, and by adopting simple and practical MRV methodology that has been currently considered, the JCM will promote transfer of technology from Japan to Indonesia, and will enable to realize a economic growth with less CO2 emissions in Indonesia. Estimated and Possible Potential of CO2 reduction of Indonesian cement sector was calculated; Estimated CO2 reduction effect using the methodology in the project case of coal feed rate of 92.3 t-low-rank coal/h is approx. 46,310t-CO2/y Reduction potential of the CO2 in Indonesian Cement sector is set to 0.77Mt-CO2/y currently in maximum, and 1.96 2.72 MtCO2/y around 2025 is expected.

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Thank you for your attention.

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