JCM_ID_F_PDD_ver01.1

JCM Project Design Document Form
A. Project description
A.1. Title of the JCM project
GHG emission reductions through utility facility operation optimization system for refineries inthe Republic of Indonesia
A.2. General description of project and applied technologies and/or measures
The proposed project aims to achieve GHG emission reductions at an existing oil refinery inIndonesia through introduction of a utility facility operation optimization technology.
The project involves introduction of a utility facility operation optimization technology to theutility facility at one of the existing refineries of PERTAMINA1, Refinery Unit IV (hereafterreferred to as RU IV), located in Cilacap, Central Java. The target utility facility at RU IV
consists of 10 boilers, which supply high pressure steam to the steam turbine generators.
"RENKEI Control", or the utility facility operation optimization technology by Azbil
Corporation (hereafter referred to as Azbil) to be introduced by the project optimizes theoperation of existing utility facilities at RU IV through application of software algorithm using
linear programming method and advanced process control. A remote monitoring system tomonitor the performance of the system is also installed. As a result, a great saving in fuelconsumption for the utility facility is achieved.
The expected annual emission reduction that would be achieved by the proposed project is
20,000 ton CO2. The actual emission reduction may vary depending on the actual operation of
the target utility facility.

A.3. Location of project, including coordinates
Country

Republic of Indonesia

Region/State/Province etc.:

Central Java
Jl. Letjen Haryono MT. 77 Lomanis, Cilacap

City/Town/Community etc:
Latitude, longitude

1

S 7.703388
E 109.005269A state-owned energy company in Indonesia1JCM_ID_F_PDD_ver01.1

A.4. Name of project participants
The Republic of Indonesia

PT. PERTAMINA (PERSERO)

JapanAzbil Corporation

A.5. Duration
Starting date of project operation

01/01/2018

Expected operational lifetime of project

5 years

A.6. Contribution from Japan
The proposed project receives support from the government of Japan. The project has been
selected as one of the JCM demonstration projects by the New Energy and Industrial
Technology Development Organization (hereafter referred to as NEDO), one of the largest
national public research and development management organizations in Japan. The purpose ofNEDO's JCM demonstration projects is to demonstrate the effectiveness of advanced clean
energy and low-carbon technologies which leads to GHG emission reductions through theintroduction of such technologies in the partner country, i.e. Indonesia. As a result of thefinancial support provided by NEDO's program, implementation cost of the proposed JCM
project has been financed by Japanese government. Further, implementation of thedemonstration project promotes dissemination of low-carbon technologies in Indonesia. Inaddition, as a part of NEDO program, know-how transfer to the operators in Indonesia for
operation and maintenance of the utility facility operation optimization technology has beenplanned.
B. Application of an approved methodology(ies)B.1. Selection of methodology(ies)
Selected approved methodology No.

ID_AM007

Version number

Ver01.0

B.2. Explanation of how the project meets eligibility criteria of the approved methodology
Eligibility

Descriptions specified in theProject information

criteria

methodology
The project is implementation ofoperation optimization of boilers togenerate steam, throughintroduction of Utility Facility
Operation Optimization
Technology.

One of the utility facility operation
optimization technologies, "RENKEIControl” of Azbil is implemented in thisproject.

Criterion 12

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Criterion 2

Criterion 3

Criterion 4

The site of introduction is anexisting industrial facility which
includes two or more boilers togenerate steam.
Historical
dataforfuelconsumption, fuel characteristics(type of fuel, net calorific value)and generation of steam is
identifiable for individual boiler forat least one year, as specified in themethodology.
All steam demand is met internallyand not sourced from outside theindustrial facility.

The target utility facility consists of 10boilers, which supply high pressure steam
to the steam turbine generators.
Distributed Control System of the target
utility facility has a capability ofhistorical data collection at least one year
for each utility boiler.

The demand of high pressure steam
generated by boilers is mainly for thesteam turbine generators and some is forprocess unit consumption. All steam
demand is met internally and not sourced
from outside the industrial facility.

C. Calculation of emission reductions
C.1. All emission sources and their associated greenhouse gases relevant to the JCM project
Reference emissions
Emission sources

GHG type

Consumption of fuel oil and fuel gas of each boiler

CO2

Project emissions
Emission sources

GHG type

Consumption of fuel oil and fuel gas of each boiler

CO2

C.2. Figure of all emission sources and monitoring points relevant to the JCM project3

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All monitored data which are required for verification/issuance will be kept and archived
electronically for two years after the final issuance of the credits.
C.3. Estimated emissions reductions in each year
YearEstimated

Reference Estimatedemissions (tCO2e)

Project EstimatedEmissions (tCO2e)

Emission

Reductions (tCO2e)

2013

---

2014

---

2015

---

2016

---

2017

---

2018

1,206,432.4

1,186,432.4

20,0002019

1,206,432.4

1,186,432.4

20,0002020

1,206,432.4

1,186,432.4

20,000Total

3,619,296

3,559,296

60,000(tCO2e)D. Environmental impact assessment
Legal requirement of environmental impact assessment for No
the proposed project4

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E. Local stakeholder consultation
E.1. Solicitation of comments from local stakeholders
To solicit comments from local stakeholders, a consultation meeting was planned by the project
participants, and the project participants invited various stakeholders. Details of the localstakeholders consultation meeting is summarized as follows:
Date and Time:

18 July 2017, 9:00-12:00

Venue: Hotel Ciputra Semarang
Address: Jl. Simpang Lima, Semarang , Central Java, Indonesia
Following organization from Indonesia side were invited to the consultation meeting:-Indonesia JCM Secretariat-Coordinating Ministry of Economic Affairs (CMEA)-Department of Industry and Trade (Dinperindag), Central Java Province-Department of Energy and Mineral Resources (DESDM), Central Java Province-Department of Environment and Forestry (DLHK), Central Java Province-Regional Environment Management Board of Central Java Province-Bureau of Regional Autonomy and Cooperation, PPI Secretariat of Central Java
Regional Secretariat-Department of Manpower and Industry (Disnakerin), Cilacap Regency-Department of Environment, Cilacap Regency-Directorate of Technical and Environment, Directorate General of Oil and Gas, Ministryof Energy and Mineral Resources (MEMR)-Indonesia Petroleum Association (IPA)-Society of Indonesia Petroleum Engineer-Society of Indonesia Oil and Gas Production Facility Expert

The total of twenty six stakeholders from the invited agencies and the project developers
attended the meeting. At the meeting, JCM implementation status in Indonesia was firstpresented by Indonesian JCM Secretariat. Then the details of the proposed JCM project andthe technology to be introduced were explained by representative of Azbil who is in charge ofthe technical design of the project. Any queries in relation to JCM application in Indonesia
was answered by Indonesian JCM Secretariat. There were no negative comments toward theproposed project expressed during the stakeholders meeting by the attendees. The comments
received during the local stakeholders meeting, along with the responses/action to the5

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comments, are summarized in the following section.
For those who were invited and were unable to attend the meeting, the project participants sent
presentation materials used during the meeting, requesting them to send their comments, if any.
The project did not receive any comments from those who were invited and were not able toattend the local stakeholders' consultation meeting.
E.2. Summary of comments received and their consideration
Stakeholders

Comments received

Consideration of comments received

Departmentof Can JCM be used to finance / There are 3 renewable energy JCM

Energyand assist for the development of projects

Mineraldevelopmentinnew renewable energy power Indonesia: 1.6MW solar power project

Resources, Central plants, such as a geothermal atJava Province

underJakabaringstadiumatSouthPower Plant? There are a few Sumatera for Asian Games in 2018,
potential places for Geothermal 600 kW rooftop solar panel project at
to be developed in Central Java, an industry in Cileungsi, West Java; 10but

investment

towards MW hydropower

plant in North

geothermal is not attractive for Sumatera. As such, JCM can be used
investors and private sectors.

to assist for development of new
renewable energy project.
JCM support may not be sufficient toovercome the risks associated withgeothermal

projects,

however.

Investors may be interested at the laterstage after successful exploration,
especially for locations in Eastern partof Indonesia, where electricity selling
price is much higher. (answered byIndonesia JCM Secretariat)
No further action required.
Departmentof DLHK has been assigned to do PERTAMINA will certainly cooperate

Environment

and GHG inventory for Central Java to submit the required data once it

Forestry (DLHK), Province. PERTAMINA RU IV receives the official request from Local
CentralProvince

Java is requested to cooperate by Government of Central Java.
submitting relevant data to thelocal government.

No further action required.
6

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Directorateof How does JICA involve in JCM JICA in the case of JCM in Indonesia

Technicaland project?

ishaving

cooperationwithEnvironment,

Coordinating Ministry of Economic

Directorate

Affairs to give assistance / funding toGeneral of Oil andoperateGas, Ministry of(answeredEnergy

Secretariat)

andMineral Resources

theIndonesia
bysecretariat.

Indonesia

JCM

No further action required.
In

thepresentation by the The emission reductions from eachsecretariat, there have been a projectvary.

Thereareprojects

total of 30 projects under JCM reducing only 29 tCO2 / year or 549
with total investment of about tCO2 / year. Some projects on the other
USD 150 million. What are the hand can reduce more than 10,000
total reductions of CO2 from tCO2 /these 30 projects?

year, with much higher

investment costs.
No further action required.

Pertamina RU IV

Pertamina RU IV would like to Following

theJCM

have assistance from Indonesia procedures,

bothvalidation

government during the process verification

isconducted

standardandinaof validation and verification, to transparent manner. So it is unlikely
maintainobjectivity

andto there will be any dispute happening.

avoid any potential dispute in Should there is any trouble; it is free tothe future

seek advice from JCM secretariat orCoordinating Ministry of Economic
Affairs. (answered by Indonesia JCMSecretariat)
No further action required.

Does the Implementation of The expected effect of installation ofAzbiltechnology affectthe Azbil technology towards PROPER

scoring under the performance evaluation would be positive albeit
rateassessment

environmental

programin minimal. (answered by Indonesia JCM

management Secretariat)(PROPER) for the company?

7

No further action required.

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F. References
N/A
Reference lists to support descriptions in the PDD, if any.

Annex
N/A

Revision history of PDD
VersionDate

Contents revised

01.0

01/09/2017

First Edition02.009/02/2018

Second Edition8