IEEJ: November 2009

Northeast Asia Petroleum Forum 2009

Activities to Reduce CO2Emissions at Nippon Oil

Ono Hiroshi
Environment & Safety Department
Nippon Oil Corporation
1

IEEJ: November 2009

Outline of Presentation• Brief introduction of Nippon Oil• Activities to counter the global warmingin the Japanese oil industry• Activities to reduce CO2 emissions
at Nippon Oil» Activities and results» New energies

2

IEEJ: November 2009

Overview of Primary Energy Supply in Japan• Oil has been playing a leading role in the primaryenergy supply in Japan, but its share has beendeclining continuously.
million KL of oil
equivalent

Share of oil
60%

600
50050%

400
300

40%

200
100
0othershydronucleargascoaloil
Shareof oil

30%
1990 1995 2000 2005 20072020 2030
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IEEJ: November 2009

Nippon Oil Corporation• Nippon Oil Corporation is the leading company inthe Japanese oil industry.
CDU capacity
28.5%

Total
4.83 million BD

Sales of fuel oil

Number of gasstations

23.3%

Total
209 million kL

31.3%

Total
31,0004

IEEJ: November 2009

Outline of Presentation• Brief introduction of Nippon Oil• Activities to counter the global warmingin the Japanese oil industry• Activities to reduce CO2 emissions
at Nippon Oil» Activities and results» New energies

5

IEEJ: November 2009

Activities of Japanese Industries• Keidanren Action Plan
» Action plan of Japanese industries to meet Kyoto
protocol which requires Japan to reduce CO2 by 6%from the 1990 level.
» Individual action plan of 36 industries with quantitative
targets.
» CO2 covers more than 80% of the industrial emissions.
» Subject to the annual review by the government.
» Self binding action plan including use of emission-credit
as the last resort to reach the target.
» Many industries have already accomplished their targetsin 2007.
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IEEJ: November 2009

Action Plans of the Japanese oil industry• Emission reduction target of refineries:» In 2008-2012, energy consumption rate will be reducedby 13% from the 1990 level.
» The above covers 100% of the refineries in Japan.

• Introduction of bio-gasoline of 840,000KL ayear in 2010.

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IEEJ: November 2009

Current Situation• The initial target for the refinery energy consumption rate
was achieved in 2003.
• However, it is uncertain if the Japanese oil industry couldkeep it in 2008-2012, since it would deteriorate as the total
petroleum demand (refinery through-put) declines.
Energy consumption rateof refineries (L/KL)
11CO2 emission(million tons)
45

1040

▲13%
935target
830

725

1990

1997

2000

2008

8IEEJ: November 2009

Trend of Japanese Fuel Oil Market• Continuous increase of lighter products ratio.
• Frequent revision of regulation on quality of gasoline anddiesel.
• Rapid decrease of fuel oil demand since 2006.
Fuel oil demand(million KL)

Light and middle
distillate %
90250

8580

225500ppm S/diesel
50ppm S/diesel

75
2000ppm S/diesel

1% benzene/gasoline

7019902000

200
10ppm S/gaso & diesel

1752008
9IEEJ: November 2009

Refinery Operation Affected by Market Change• Change in the petroleum product structure has required theinstallation and expansion of cracking units.
• Regulations on oil products quality has required theinstallation and expansion of desulfurizing units andbenzene extraction units.
• Fuel consumption rate at refineries has been deteriorating
due to fuel oil demand decrease in recent years.
• Due to these changes in the oil market, the fuelconsumption in the Japanese refineries has increased since1990 despite that many energy conservation (Encon) efforts
and projects were implemented.

10

IEEJ: November 2009

Outline of Presentation• Brief introduction of Nippon Oil• Activities to counter the global warmingin the Japanese oil industry• Activities to reduce CO2 emission
at Nippon Oil» Activities and results» New energies

11

IEEJ: November 2009

Policies at Nippon Oil• Nippon Oil Group Philosophy» Your Choice of Energy• Create the energy of future, promoting prosperity
and harmony with nature.

• Policy on Environment Protection» Nippon Oil will endeavor to decrease emissions
continuously being a top-runner forenvironment protection.

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IEEJ: November 2009

Organizations on Environment• Environment and safety committee» Corporate policy on environment protection• Environment and safety conferences» Annual corporate action plan

• Environment and Safety Department» Total management of the action plan
» Planning and execution of CDM• Departments at the headquarters» Capital investment policy» Planning and execution of emission reduction• Refineries» Operation management» Planning and implementation of Encon items
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IEEJ: November 2009

CO2 Emission Reduction Through Supply Chain

CDM at oil fields

Encon atrefineries

Fuel savingin distribution

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IEEJ: November 2009

CDM Policy• Nippon oil aggressively pursues theopportunities of CDM projects,
by ourselves as well as through CDM funds.

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IEEJ: November 2009

Rang Dong Oil Field (Vietnam)
Rang Dong
oil field

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IEEJ: November 2009

CDM: Associated Gas Recovery at Rang Dong
• Associated gas is recovered at Rang Dong oil field and utilized togenerate electric power in Vietnam. Some 8 million tons of CO2emissions will be reduced by this project.
• This project was registered by the UN CDM Committee in February
2006 as the world first CDM project to utilize associated gas.
• Thus, Nippon Oil has established a CDM methodology, which has
been applied to 23 potential CDM projects in the world.

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IEEJ: November 2009

Energy Conservation at Refineries• The target of the fuel oil consumption rate for 2010 is set at
a level 20% lower than 1990.
• Currently the progress is on schedule.
• However, similarly with other Japanese refiners, more
efforts are required to meet the target for 2010.
Fuel consumption rate of refineries of Nippon Oil(L/KL)

12.0
11.0
10.0Target

9.0
8.0
1990

1995

2000

2005

2010

18

IEEJ: November 2009

Energy Conservation Activities in 2008
• Target:▲24,000KL of fuel oil (63,000 ton-CO2)• Result:▲69,000KL of fuel oil (180,000 ton-CO2)• Major Energy Conservation Items:» Sophisticated control of operation (▲10,000KL )» Enhanced heat recovery (▲13,000KL )» Improved furnace operation (▲4,000KL )» Improved utility system (▲2,000KL )» Improved fractionator operation (▲2,000KL )19

IEEJ: November 2009

Example-1: Sophisticated Control System• Advanced process control is applied at more than
30 refining units and utility systems.
• Real-time optimization is implemented at two
refining units successfully.
• Implementation and maintenance of thesophisticated control system is being managed by
the in-house control specialist team.

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Real-time Optimization

IEEJ: November 2009

•Process simulation•Optimization based on non-linear equations

RTO(Real-Time Optimization)

PerformanceSet points

APC(Advanced Process Control)

PerformanceSet points

DCS(Distributed Control System)•Multivariable predictive control•Optimization based on linear equations

Processvariables
Process

Output21

IEEJ: November 2009

Advanced Control of Utility System: 1Utility supply system

Steam balance

1B

2B

5B

6B

10B

9B

3B

1BT

3BT

4BT

5BT

6BT

8B

High pressure
steam
Middle pressure
steam

HPH

9CT

Low pressure
steam

1GTG

HPH

2GTG

Electricity balance
B: Boiler, GTG: Gas turbine generator, BT: Back pressure turbine,
CT: Condensing turbine, HPH: Feed water heater

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IEEJ: November 2009

Advanced Control of Utility System: 2Boilers
High pressure
steam

Middle pressuresteam
Refineryequipment

Steam turbines Electricity
Gas turbinesA
Middle pressure steam (t/h)

Electricity (MW)Fuel (kL/h)Purchase

Electric powercompany

Electricity
Sell

Electricity

High pressure steam (t/h)

Electricity

BoilerB ‥‥Customers

TurbineA
B ‥‥Steam balanceElectricity balance
Fuel consumption

Minimize this fuel consumption

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IEEJ: November 2009

Fuel consumption [GJ/H]

Advanced Control of Utility System: 3
Before
10B
6B
5B

9B

night

9B

After
10B
9B

night

10B
5B

6B

6B
5B
Generation of steam[ton/hour]

No priority in usingboilersPut priority in using
boilers with higher
efficiency▲18,000 ton-CO2 / year24

IEEJ: November 2009

Example-2: Maintenance of Steam Traps
Overall management
structure of steam traps

Construction/ updating
the database
Criteria of replacement

Maintenance /replacement of failed
steam traps

Follow-up analysis of theeffectReduced quantityof steam-1
Sep Oct-3-5-7-9-11-13-15

Novton/hInspection of all
steam traps

Result▲ Actual
Simulation▲20,000 ton-CO2 / year25

IEEJ: November 2009

CO2 Reduction in Product Distribution• Activities:» Optimization of the distribution/delivery routes andloading levels.
» Increase of large capacity tank trucks.

• Results» Unit fuel consumption rate in products
distribution/delivery decreased by 8% from 2006 to2008, resulting in CO2 emission reduction of 28,000
tons a year.

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IEEJ: November 2009

Outline of Presentation• Brief introduction of Nippon Oil• Activities to counter the global warmingin the Japanese oil industry• Activities to reduce CO2 emissions
at Nippon Oil» Activities and results» New energies

27

IEEJ: November 2009

Bio-fuel : ETBE
• Bio-ETBE was introduced in 2007.
• It will be increased to 840,000KL by 2010,
reducing 550,000 tons of CO2 emissions a year.
• Nippon Oil will become a major supplier of ETBEin Japan.

Bio-ETBE
Bio ethanol C2H5OH
Isobutene C4H8

Bio-ETBE

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IEEJ: November 2009

Bio-fuel : Bio-Diesel• Research work is being conducted together with a car
manufacturing company on improvement of theproduct quality of bio-diesel via hydrogenation.
Vegetableoils
Rapeseed

Direct Blend
Esterification

FAME(Fatty Acid Methyl Ester)Palm

Bio HydrofinedDiesel （BHD*）
BH-Fining ProcessSoybean*BHD ・・Trademark of registration is now under application

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IEEJ: November 2009

Activities on New Energies• Fuel Cell
» Nippon Oil has been conducting R&D on fuel cells
extensively since 1990.
» Now Nippon Oil is marketing fuel cells as a home energy
source, which would reduce CO2 emissions by 30%.
» By 2008, 1,300 units have been sold, realizing CO2
emission reduction of 1,600 ton/year.

• Solar Power (PV)» Solar power is an important element in the Japanese
government plan to reduce CO2 emissions by 25%.
» Nippon Oil is marketing Solar power (PV) system for homeuse, aggressively implementing research and investment forhigher efficiency solar cells.
30Strategy on Solar Power Generation System
Roadmap of the Japanese Government
2008
Firstgeneration

2010

2015

2020

2030

Crystalline silicon solar cell

Secondgeneration

Cool EarRoad m thap

Thin film solar cell
Dye-sensitized solar cell

Third generation
23yen/kWh*yen ≒US￠
Source: The cool earth – Innovative Energy
Technology Program (Japanese government)

High efficiency
solar cell

14yen/kWh7yen/kWh

Strategy of Nippon OilFirst Generation

Second GenerationDevelopment, manufacturing andmarketing

Establishment of a joint venture
SANYO ENEOS Solar Co. Ltd.

Acquisition of 46% equity stake of R&D of organic solar cellSpace Energy Corporation

Third Generation
Establishment of ENEOS
Laboratory with TokyoUniversity

31

IEEJ: November 2009IEEJ: November 2009

Thank you.
Contact : report@tky.ieej.or.jp

http://www.eneos.co.jp/english/index.html
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Emission Reduction Target of Japan• Emission reduction target of Japan:• ▲6% (1990  2008-2012)
Million ton

1,400
15%

1,300

6%

1,200
1,100

Other GHG
N2OCH4CO2(non-energy)
CO2(energy)

1,000Base 1995 2000 2005 2007

Target34

NEOS Activities by NPRC
<Nippon Petroleum Refining Company (NPRC) is a 100% owned subsidiary of Nippon Oil Corporation>

NPRC Efficient Operation Strategy (NEOS)
Top Management(Medium-term plan)

Plan (2008): ▲24,000kL(▲63,000 ton CO2)

Breakdown

ResultHead Office(Annual plan)

Breakdown

ResultRefineries(Annual plan)

Breakdown

ResultWorking Groups(Annual plan)

Achievement (2008): ▲69,000kL(▲180,000 ton CO2)
Breakdown•Optimization of operation: ▲10,000kL•Heat exchange: ▲8,000kL•Heat recovery: ▲5,000kL•Reduction of O2%: ▲4,000kL•Reduction of venting of steam: ▲2,000kL•Reduction of COT: ▲2,000kL
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NEOS Activities at Refineries
Refinery top management
SafetyProfitCSR

WG to improve
Gross

WG to reduce
CAPEX

WG to reduce
OPEX

Refinery A

Refinery B

Refinery C

WG

WG

WG

EnergyConservation

Cross-Refinery WG
WG

WG

WG

WG

WG

WG
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