DISCUSSION PURPOSE ONLYJCM Project Development by JFE

July 2018

DISCUSSION PURPOSE ONLYJFE Group Structure
JFE Engineering
Est. 1912

Est. 1951

Net Sales(million $)3,900

Employees

9,300

JFE SteelJFE Holdings, Inc.
(est. 2002)

Net Sales(million $)27,200

Employees
Equity-method affiliate

Japan Marine United

44,400JFE Shoji Trade
Net Sales(million $)19,100

Employees

6,800

Copyright 2018 © JFE Engineering Corporation All Rights Reserved5(FY2017)

2DISCUSSION PURPOSE ONLY

Global Network
CEO Mr. Oshita

Tokyo / Yokohama(Headquarters)

AmericaLong Beach (USA)EuropeDuisburg (Germany)
Rome (Italy)

Middle East
Al Khobar (Saudi Arabia)

Asia & Oceania
Singapore
Kuala Lumpur (Malaysia)
Jakarta (Indonesia)
Hanoi, Ho Chi Minh (Vietnam)
Bangkok (Thailand)
Yangon (Myanmar)
Manila (Philippines)
Delhi, Pune, Mumbai (India)
Shanghai, Beijing (China)
Copyright 2018 © JFE Engineering Corporation All Rights Reserved

3

DISCUSSION PURPOSE ONLY

Smart Infrastructure for Global Environment

Waste-to-Energy

Waste Heat Recovery

JFE offers the world leading technology

Biogas (Sludge Treatment)

Geothermal Power Plant
Copyright 2018 © JFE Engineering Corporation All Rights Reserved

4DISCUSSION PURPOSE ONLYJCM Project DevelopmentVietnam
Waste Heat Recovery Power Generation at Cement Factory inQuang Ninh Province FS(2015)

MyanmarIntroduction of Waste to Energy Plant in Yangon CityFS(2014), Model Project(2015)

Indonesia
Power Generation by Waste-heat Recovery in Cement Industry
PS(2013), Model Project(2014)
Copyright 2018 © JFE Engineering Corporation All Rights Reserved

5

DISCUSSION PURPOSE ONLY<Project 1>
Power Generation by Waste-heat
Recovery in Cement Industry- Registered Project ID013,10 Jul. 2018

Copyright 2018 © JFE Engineering Corporation All Rights Reserved6DISCUSSION PURPOSE ONLY

Project Summary
Counterpart PT Semen Indonesia
Site

Tuban Plant,
East Jawa

PowerGeneration

28MW

Expected
GHG
Reductions

149,063 tCO2/year

Site
Tuban CitySurabaya
City
Copyright 2018 © JFE Engineering Corporation All Rights Reserved

7DISCUSSION PURPOSE ONLY

Current Project Implementation
14 Mar 18 Request of registration
30 Apr 18 Starting date of project operation
No.1 SP Boiler

10 Jul 18Registration of projectNo.1 AQC Boiler

Estimated emission reductions in each year
99,375 (in 2018)
149,063 (in 2019)
149,063 (in 2020)
・・・

Air Cooled Condenser

Expected operational lifetime : 9 years
Copyright 2018 © JFE Engineering Corporation All Rights Reserved

8DISCUSSION PURPOSE ONLY

Project Scheme
Japanese Government

Indonesian Government

JCM Agreement
Contract Formation
on JCM
GHGReductions

Semen Indonesia’s Budget

JCM Subsidy from Japan

International Consortium Construction
 Operation
 Maintenance
 MRV Engineering Equipment Supply

Copyright 2018 © JFE Engineering Corporation All Rights Reserved

9DISCUSSION PURPOSE ONLY

Overview of WHR System
Turbine Generator

Electricity

Reduction of gridpower supply =Reduction of CO2
Steam20%

SteamElectricity

SP Boiler

20 80% %Coal-fired Power Plant

AQC Boiler

Hot Exhaust Gas

Hot ExhaustGasSuspension
Preheater

Cement Production
ProcessEP
Rotary Kiln
StackRaw MillClinkerCooler

Copyright 2018 © JFE Engineering Corporation All Rights Reserved

EPStack10DISCUSSION PURPOSE ONLY

Eligibility Criteria - Approved Methodology ID_AM001
Criterion 1

The project utilizes waste heat from a cement production facility by waste
heat recovery (WHR) system to generate electricity

Criterion 2

WHR system consists of a Suspension Preheater boiler (SP boiler) and/or Air
Quenching Cooler boiler (AQC boiler), turbine generator and cooling tower

Criterion 3

WHR system utilizes only waste heat and does not utilize fossil fuels as a heatsource to generate steam for power generation

Criterion 4

WHR system has not been introduced to a corresponding cement kiln of theproject prior to its implementation

Criterion 5

The cement factory where the project is implemented is connected to a grid
system and the theoretical maximum electricity output of the WHR
system, which is calculated by multiplying maximum electricity output of theWHR system by the maximum hours per year (24*365=8,760 hours), is notgreater than the total amount of the electricity imported to the cement
factory from the grid system:> During the previous year before the validation, if the validation ofthe project is conducted before the operation of the project, or> During the previous year before the operation of the project, if thevalidation of the project is conducted after the operation of the projectCriterion 6

The WHR system is designed to be connected only to an internal power gridof the cement factory.
Copyright 2018 © JFE Engineering Corporation All Rights Reserved

11

DISCUSSION PURPOSE ONLY

Calculation of Reference Emissions
ABCDE(A*B*C*D)

Generation
Capacity(MW)

Operatingday peryear(days/y)Time(hrs/day）OperatingRateElectricity(MWh)

Dry Season

28

164.5

241110,544

Rainy Season

22164.5

24

186,856

3.69

365

24

132,324

Quantity of Electricity
Generation

The quantity ofelectricity
consumption

The quantity of net electricity generation by the WHR
system which replaced grid electricity import

165,076

REp = EGp * EFgrid＝ 165,076 MWh/y * 0.903 tCO2 e/MWh＝ 149,063 tCO2e/y
Copyright 2018 © JFE Engineering Corporation All Rights Reserved

12DISCUSSION PURPOSE ONLY

Potential Replication of WHR Technology
CO2 Emission Reduction

Electricity Reserve for theCommunity

No Additional Fuel Required

Savings on Production Costs

Potential reduction ofGHG emission :1,150,000 tCO2/y @ 25
factories in Indonesia

Copyright 2018 © JFE Engineering Corporation All Rights Reserved

13

DISCUSSION PURPOSE ONLY

<Project 2>
Introduction of Waste to Energy
Plant in Yangon City
- Approved Methodology MM_AM001

Copyright 2018 © JFE Engineering Corporation All Rights Reserved

14

DISCUSSION PURPOSE ONLY

Project SummaryFirst WTE Project with JCM

CounterpartSiteTechnology
GHG Emission
Reduction

First WTE Project in Myanmar

Yangon City Development
Committee
Mingalardon area, Yangon City,MYANMAR
Waste to Energy(WTE)
Incinerator : 60ton/day
Generator : 0.7MW
4,700t-CO2/year

Facility Opening Ceremony on April 7th

Copyright 2018 © JFE Engineering Corporation All Rights Reserved15

DISCUSSION PURPOSE ONLY

Project Scheme
Myanmar Government

September 16, 2015

Japanese Government

JCM Agreement
Contract Formation
on JCM
GHG
Reductions

Yangon City’s Budget

JCM Subsidy from Japan

Yangon CityDevelopment Committee

JFE Engineering CorporationInternational Consortium Operation
 Maintenance Monitoring Reporting Engineering Procurement
 Construction
 SV for commissioning
Copyright 2018 © JFE Engineering Corporation All Rights Reserved

16

DISCUSSION PURPOSE ONLY

Benefit of Waste to Energy Project
CH4MSWBaseline Scenario

CO2PowerGenerationLandfill

Project Scenario
CH4CO2GHG Emission Reduction
CO2

Powergeneration(exported to the grid)
Copyright 2018 © JFE Engineering Corporation All Rights Reserved

Reduction of CO2emission from fossil
fuel consumption atpower plant

17

DISCUSSION PURPOSE ONLY

Expected GHG Emission Reductions
4,732 tCO2/ year

(2,358tCO2 accounts for the energy-originated CO2)
 The calculation is based on the condition of 60t of waste treated per day andoperation of 310days per year, 24 hours per day (operating ratio: 85%).
 The emission factor refers to the latest CDM project in Myanmar (0.8tCO2/MWh).

Copyright 2018 © JFE Engineering Corporation All Rights Reserved

18

DISCUSSION PURPOSE ONLY

2 Phase Timeline toward Paradigm Shift

Small Scale WTE
As a Model Project

Larger Scale WTE

Capacity Building,Regulation Setting,Training of WTE Operation,
Finance Arranging, etc.

Copyright 2018 © JFE Engineering Corporation All Rights Reserved

Complete
IntegratedWasteManagement19

Thank you

http://www.jfe-eng.co.jp/en/