cdm/energy efficiency projects egypt : group ii

Energy Efficiency SS-CDM - Egypt 1 Tunis, Sept 22-24, 2004

TIMS/EEAA Jerba-CDM-Investment-Forum UNEP RISOE / APEX

CDM/Energy Efficiency CDM/Energy Efficiency ProjectsProjects

EGYPT : Group IIEGYPT : Group IIIhab ElmassryIhab Elmassry, M. Sc., CEM, DGCP

Energy Solutions BusinessEgypt & Middle East

Cummins Power Generation - UKMobile +(2) 012-312-5477, Fax +(202) 401-1202

Email: Email: [email protected]@link.net



Discussion Points

1.1. Egypt Energy Outlook Egypt Energy Outlook

2.2. SS EE - CDM projectsSS EE - CDM projects• Plant DescriptionPlant Description• Technology DescriptionTechnology Description• Energy ConsumptionEnergy Consumption• Sources of GHGSources of GHG• BL & CERsBL & CERs

3.3. Energy Efficiency Business in EgyptEnergy Efficiency Business in Egypt



1. Egypt Energy Outlook1. Egypt Energy OutlookElectricityElectricity Cons.(02/03) 81 TWh

Installed Power 18 GW

Fuel

NG 21 M TOE

Fuel #2 8.6 M TOE

Fuel #6 6 M TOE

Mediterranean Sea

DamiettaRosetta

AlexandriaNew Damietta

Port Said

Bahareya Oasis

Ind cities

Cairo

El-Menya



Fuel Consumption in EgyptFuel Consumption in Egyptton LO HO NGIndustry 2,322,000 4,021,000 4,790,000 Transportation 5,284,000 521,000 144,000 Agriculture 3,000 Res/Comm 370,000 Electricity 28,000 1,498,000 11,578,000 Petroleum 474,000 217,000 2,075,000

Total 8,111,000 6,257,000 18,957,000 TOE 8,646,000 6,082,000 21,060,000 Electricity 0.3% 23.9% 61.1%



110 Million ton (2002)

Egypt CO2 Emissions



Projects to be presentedProjects to be presentedCogeneration

• 1.1 MWe Cogeneration @ Elnasr For Paper (PDD)• 1.3 MWe Cogeneration @ Misr Elmonofia for textile (PIN)

Fuel Switching

• Fuel switching @ Glass for dyeing (PDD)• Fuel switching @ clay bricks factories (PIN)

Energy Management System (EMS)

• EMS @ Zenotex for dyeing (PIN)



EE DefinitionEE Definition• There is no single definition, But …There is no single definition, But …

Doing the same with less

Energy efficiency measures are designed to reduce the amount of fuel/energy consumed without losing any of the value of the product or process.

Improving energy efficiency is a technological means to reduce emissions of greenhouse gases without increasing production costs.http://www.google.com/search?hl=en&lr=&ie=UTF-8&oi=defmore&q=define:Energy+Efficiency



I. Cogeneration ProjectsI. Cogeneration Projects

• Small Scale CDM projectsSmall Scale CDM projects

• Plant namesPlant names

1.1. Elnasr for paper & Carton Elnasr for paper & Carton (PDD)(PDD)

2.2. Misr Elmnofia for textile Misr Elmnofia for textile (PIN)(PIN)



TechnologyTechnologyCogeneration Cogeneration is the is the

simultaneoussimultaneous generation of usable generation of usable

heat and power, heat and power, usually usually electricityelectricity, in a , in a

single single process from process from the same fuelthe same fuel..

CHP is not a new CHP is not a new technologytechnologyUsed in Thomas Used in Thomas

Edison’s first electric Edison’s first electric generating plant in generating plant in

18911891



Fuel + air

LossesSteam

Electricity

Losses

Steam

ElectricityFuel + air

Losses

Cost of

Electricity

+

Heat

Cogeneration Vs Conventional SystemCogeneration Vs Conventional System



Benefits of CogenerationBenefits of Cogeneration

• Energy efficientEnergy efficient

• Reduction in kWh and Reduction in kWh and heat costsheat costs

• Reduction in air Reduction in air emissionsemissions



1. Elnasr’s Project Summary1. Elnasr’s Project Summary• Plant NamePlant Name Elnasr Company for PaperElnasr Company for Paper

• LocationLocation Alexandria, EgyptAlexandria, Egypt

• PDD PDD Draft version has been issuedDraft version has been issued

• Technology Technology NG-Based Cogeneration NG-Based Cogeneration PackagePackage

• SizeSize 1.1 MW1.1 MWee & 1 t/hr Sat. Steam & 1 t/hr Sat. Steam

• Project cat.Project cat. Small Scale, EEI - II-DSmall Scale, EEI - II-D

• InvestmentInvestment $370,000$370,000

• COCO2 ReductionReduction 2,500 ton/yr2,500 ton/yr



Plant BackgroundPlant BackgroundAnnual operating hrs 8760 hrMax. electrical demand 2000 kWVoltage level 11/0.38 KVDiesel engine 800 kWThe plant cover its electric demand through utility grid and

diesel gen-sets. Not synchronized in with the utility grid.NG available

Two boilers exists one out of order. The on service boiler data is • Rated pressure 25 barg

• Operating pressure 12.5 barg

• Process pressure 4 barg

• 2 burners 1 NG/Light oil & 1 heavy oil



900 MWh/mo



1,240 kW

1,320 kW



Elnasr Co. for Paper SLD

To 560 kW 6 kV motor

Feeder A Feeder B

MV Bus bar

TR 21 MVA

0.4 kV

Low voltage loads

Low voltage loads

TR 3 1 MVA

G2

380 V level

NC

TR 4 1 MVA

11 kV side

0.5 MVA

Change over switch

G1

1 MVATR 11 MVA

Other loadsOther loads



Possible AlternativesPossible Alternatives

Cogen scheme Cogen scheme • Gen-set-based / GT-based Gen-set-based / GT-based

• connectionconnection

• Isolated modeIsolated mode• Parallel mode (synchronized with Parallel mode (synchronized with

utility)utility)



To 560 kW 6 kV motor

Feeder A Feeder B

MV Bus bar

TR 21 MVA

0.4 kV

Low voltage loads

Low voltage loads

TR 3 1 MVA

380 V level

NC

TR 4 1 MVA

11 kV side

TR 11 MVA

Supply steam base load @ 4barg

Supply electric base load @ 11 kV

Proposed SLD



Cummins QSk60 Gas-Gen Set

No kWh export

Sell Back price???



BaselineBaseline• Type II - D – Energy Efficiency ImprovementType II - D – Energy Efficiency Improvement

• BL emissions are the current emissions of BL emissions are the current emissions of the facility due to self-generation, the facility due to self-generation,

kWh from utility grid & boiler.kWh from utility grid & boiler.

• Cogen input fuel is pipeline NG and output Cogen input fuel is pipeline NG and output is electricity (kWh) and heat (saturated is electricity (kWh) and heat (saturated steam). This will cover kWh & ton/hr base steam). This will cover kWh & ton/hr base loads.loads.

MGM-Metrogas 3MW Cogen



BL - BL - Most Recent Central Power Most Recent Central Power Station in EgyptStation in Egypt

year Plant name Type Installed MW

Gross Generated

GWh

Fuel Cons. (KTOE)

2001

Ayoun Mousa Steam 640 3,847 814

2000

Elarish Steam 66 443 115

2000

Sedikreir 1,2 Steam 640 3,742 757

1999

Elkraymat Steam 1,254 6,335 1335

1995

Exp. Cairo west Steam 660 3,840 845

Total 3,260 18,207 3,866CO2 emissions factor 525 kg

CO2/MWh



IPCCC Emission FactorsIPCCC Emission FactorsItem Value Unit Data Source

NG Lower Heating Value 36,852 kJ /m3 Local Distribution Company

NG Methane Number > 80% Local Distribution Company

CO2 emission factor (combustion) 56.10 kg/GJIPCCC, vol3,1996- Table 1-1 pag 1.13. NG (dry): 13.31 t C/TJ LHV * 44/12 = 56.1 t CO2/TJ .

N2O emission factor (combustion) 2.30 kg/TJ IPCCC, vol3,1996- Table 1-19 pag 1.57. NG boiler

Global Warming Potential of (N2O) 310.0 Article 5, sec 3 of Kyoto Protocol, GWP value is as agreed on at COP3.

CH4 emission factor (combustion) 1.40 kg/TJ IPCCC, vol3,1996- Table 1-16 pag 1.54. NG boiler

CH4 emission factor (NG production) 0.07 kg/GJIPCCC, vol3,1996- Table 1-64 pag 1.131. 39590 to 96000 kg/PJ of NG production. An average value of 70000 kg/PJ is considered here.

CH4 emission factor (NG pipeline

leakage)0.23 kg/GJ

IPCCC, vol3,1996- Table 1-64 pag 1.131. 116610 to 340000 kg/PJ of NG consumed. An average value of 230000 kg/PJ is considered here.

CH4 emission factor (Production NG &

pipeline leakage)0.30 kg/GJ Sum of Production & Pipline Leakage

Global Warming Potential of CH4 21.0 Article 5, sec 3 of Kyoto Protocol, GWP value is as agreed on at COP3.



Project BoundaryProject Boundary

Elnasr Plant

Boiler

Electricity from public utility

NG Steam

Elec. Power

Elec. PowerG

Fuel #2

Plant site Project site

Elnasr Plant

BoilerNG Steam

Elec. Power

NG

Cogen unit

Project boundary



Project & BL Emissions Project & BL Emissions Source Project Baseline

Direct on-site 1. CO2 emissions from the NG burnt by the cogeneration unit

2. Methane and Nitrous Oxide emissions from NG combustion by cogeneration unit.

None

Direct off-site

None

Indirect on-site

None None

Indirect off-site 1. Methane emissions from NG production & pipeline leakage associated with gas consumption of cogeneration.

1. CO2 emissions from the NG consumption in heat producing equipment (boiler) that is substituted by cogeneration unit

2. Methane and Nitrous Oxide emissions from NG combustion in heat producing equipment (boiler) that is substituted by cogeneration unit.

3. Methane emissions from leakage from NG production and pipeline leakage associated with NG consumption that is substituted by of cogeneration

4. CO2 emissions from on-site kWh generation by diesel gen-set.

5. CO2 emissions for electricity generation that is

substituted by cogeneration unit including associated transmission and distribution losses.



CERsCERs

• Crediting Period: Crediting Period: 10 years 10 years

• 11st yr of the Crediting Period: yr of the Crediting Period: 20062006

• Baseline emissions 7,938 ton CO2 eq

• Project emissions 5,391 ton CO2 eq

• Emissions reductions 2,546 ton CO2 eq



BarriersBarriers• I.I. Investment/financial barrierInvestment/financial barrier

– A cogeneration project is relatively a capital A cogeneration project is relatively a capital intensive project.intensive project.

– There is no clear financing mechanism for EE There is no clear financing mechanism for EE projects.projects.

– Banks and leasing companies’ interest rates Banks and leasing companies’ interest rates are high.are high.

– Subsidy that imposed on electricity and Subsidy that imposed on electricity and energyenergy pricesprices. .

– Relatively high simple payback periods, in best Relatively high simple payback periods, in best cases it is not less than 7 years.cases it is not less than 7 years.



Barriers Barriers (Cont.)(Cont.)• III.III. InstitutionalInstitutional

– The reluctance of the utility to purchase the The reluctance of the utility to purchase the excess kWh. excess kWh.

– The lack of long-term plans supported by the The lack of long-term plans supported by the government for cogeneration promotion. government for cogeneration promotion.

– No cogeneration PPANo cogeneration PPA– Low selling back tariff Low selling back tariff – Procedure for interconnection requirementsProcedure for interconnection requirements

• IV.IV. Technological:Technological:– Few number of small scale cogeneration Few number of small scale cogeneration

projects are already installed, this leads to projects are already installed, this leads to operation & performance riskoperation & performance risk



MonitoringMonitoringID Data type Data

variableData unit

Measured (m),

calculated (c) or

estimated (e)

Recordingfrequency

1 NG consumption by cogeneration unit

Cogen NGcons

M3 m monthly

2 Cogeneration electricity supplied to the plant

Cogen kWhout

kWh m monthly

3 Cogeneration heat output

Cogen steamout

Ton/hr m monthly

Energy efficiency is not an exact

science



EIAEIA

• No need for EIA, as it is < 5 MWNo need for EIA, as it is < 5 MWe

• Form B is only required.Form B is only required.



2. Misr Elmonofia’s 2. Misr Elmonofia’s ProjectProject• Plant NamePlant Name Misr Elmonofia Company for TextileMisr Elmonofia Company for Textile

• LocationLocation Monofia, EgyptMonofia, Egypt

• PDD PDD Draft version is being prepareDraft version is being prepare

• Technology Technology NG-Based Cogeneration NG-Based Cogeneration PackagePackage

• SizeSize 1.3 MWe & 1.4 t/hr Sat. Steam1.3 MWe & 1.4 t/hr Sat. Steam

• Project cat.Project cat. Small Scale, II-DSmall Scale, II-D


• COCO2 ReductionReduction 2,600 ton/yr2,600 ton/yr



BackgroundBackgroundCurrent Annual kWhCurrent Annual kWh 9.5 GWh 9.5 GWh

(utility)(utility)

Average DemandAverage Demand 1.3 MW1.3 MW

Existing Annual Self GenExisting Annual Self Gen 3.9 GWh 3.9 GWh

Total Plant energy consumptionTotal Plant energy consumption 13.4 GWh13.4 GWh

Plant Average DemandPlant Average Demand 1.5 MW1.5 MW

Boiler Boiler 2 * 7.5 ton/hr @ 8 barg2 * 7.5 ton/hr @ 8 barg

Average steam load Average steam load 1.8 to 1.3 ton/hr1.8 to 1.3 ton/hr



Cummins QSV81 Gas-Gen Set



Misr Elmonofia SummaryMisr Elmonofia Summary• Estimated total Project Cost Estimated total Project Cost $415,000$415,000

• PDD PDD Draft PDD almost completedDraft PDD almost completed

• Crediting Period: Crediting Period: 10 years 10 years

• First year of the Crediting Period: First year of the Crediting Period: 20062006

• Annual CERs Expected: Annual CERs Expected: 2,600 ton CO2,600 ton CO2



Cogeneration Potential in EgyptCogeneration Potential in Egypt

• Previous studies shows that there is Previous studies shows that there is a reat potential of cogen application a reat potential of cogen application in Egypt.in Egypt.

1,200 MW1,200 MWe to 800 MW to 800 MWe



II. Fuel Switching ProjectsII. Fuel Switching Projects

• Glass for Dyeing (PDD)Glass for Dyeing (PDD)

• 100 Bricks Plants (PIN)100 Bricks Plants (PIN)



Fuel Switching at Glass for Dyeing (PDD)

• Plant name Plant name Glass for DyeingGlass for Dyeing

• LocationLocation Shoubra Elkhama, EgyptShoubra Elkhama, Egypt


• Baseline EmissionsBaseline Emissions 17,535 t CO17,535 t CO2e / yre / yr

• Project Emission Project Emission 12,935 12,935 t COt CO2e / yre / yr

• Reduction Reduction 4,6004,600 ton CO ton CO2/yr/yr

• CR period CR period 3 x 7 yrs3 x 7 yrs

• Debundled Debundled NoNo



Plant DescriptionPlant Description

• The plant main operations are:-The plant main operations are:-•Souring, Bleaching & Rinsing of cotton Souring, Bleaching & Rinsing of cotton

fabricsfabrics

•DyeingDyeing

•PrintingPrinting

• Operates 24 hrs, 365 day/yrOperates 24 hrs, 365 day/yr

• The plant has:-The plant has:-– 2 x 6 ton/hr Fuel oil-fired steam boiler 2 x 6 ton/hr Fuel oil-fired steam boiler – 1 x 4 ton/hr Gas oil-fired oil boiler 1 x 4 ton/hr Gas oil-fired oil boiler



Monthly Fuel Consumption At GlassMonthly Fuel Consumption At Glass

Av GO 87 KLiter, FO, 390 ton



Proposed Project Proposed Project TechnologyTechnology

• It is straight forward applicationIt is straight forward application

• Replacement of FO & GO fired burners Replacement of FO & GO fired burners with NG-fired ones + automatic CS.with NG-fired ones + automatic CS.

• NG is available close to plant fence, NG is available close to plant fence, NG Reduction station and internal NG NG Reduction station and internal NG piping work are included.piping work are included.

• No major technological barrier No major technological barrier involvedinvolved



Emission ReductionEmission Reduction

• Higher fuel use Higher fuel use efficiency, the efficiency, the overall efficiency of overall efficiency of the boilers is the boilers is expected to be expected to be higher than the higher than the current state.current state.

• Eliminate fuel oil Eliminate fuel oil and gas oil and gas oil consumptions consumptions

Fuel Type CO2 (t C / Tj)

CH4 (kg / Tj)

N2O (kg / Tj)

Fuel Oil (Mazout ) 21.1 5 0.6

Gas Oil (Solar) 20.0 5 0.6

Natural Gas 15.3 2 0.1



BL MethodologyBL Methodology

• Type III - Switching fossil fuelsType III - Switching fossil fuels

• project boundary is the physical and project boundary is the physical and geographical site where the fuel geographical site where the fuel combustion affected by the fuel-combustion affected by the fuel-switching measure occurs. switching measure occurs.

• BL emissions are the current BL emissions are the current emissions of the facility due to FO & emissions of the facility due to FO & GO combustion.GO combustion.



MonitoringMonitoring

• the proposed monitoring plant shall the proposed monitoring plant shall consist of:-consist of:-– Metering the input fuel consumptionMetering the input fuel consumption– Boilers combustion efficiency.Boilers combustion efficiency.

• Overall boiler thermal efficiency will Overall boiler thermal efficiency will

be estimated based on the physical be estimated based on the physical conditions of boiler’s body insulation.conditions of boiler’s body insulation.



EIAEIA

• No EIA is required for switching from No EIA is required for switching from FO & GO to NG is required by the FO & GO to NG is required by the Egyptian regulations. Egyptian regulations.



Fuel switching of clay bricks factories (PIN)

• Plant NamePlant Name 100 Clay Bricks Plants100 Clay Bricks Plants

• LocationLocation Arab Abou Sead, EgyptArab Abou Sead, Egypt

• PDD PDD PIN has been issuedPIN has been issued

• Technology Technology Fuel SwitchingFuel Switching

• SizeSize 100 Clay Bricks100 Clay Bricks

• Project cat.Project cat. Type III - Switching fossil fuelsType III - Switching fossil fuels

• InvestmentInvestment $ 10 Million$ 10 Million

• COCO2 ReductionReduction 500,000 500,000 ton/yrton/yr

• Credit period Credit period 3 x 7 years3 x 7 years



Fuel Switching in EgyptFuel Switching in Egypt

• Egyptian LDCs are promoting for FS Egyptian LDCs are promoting for FS projectsprojects

• EGAS has a programme for FS in EGAS has a programme for FS in industrial sector.industrial sector.



III. Energy Management III. Energy Management System (EMS)System (EMS)

• A detailed energy audit report, A detailed energy audit report, which includes 11 industrial dyeing which includes 11 industrial dyeing plants in different locations, was plants in different locations, was conducted in March 2000. conducted in March 2000.

• Zenotex for Dyeing is selected as an Zenotex for Dyeing is selected as an exampleexample



ZenotexZenotex SummarySummary (PIN)(PIN)

• Plant NamePlant Name Zenotex for DyeingZenotex for Dyeing• LocationLocation Alexandria, EgyptAlexandria, Egypt• PDD PDD PIN has been issuedPIN has been issued• Technology Technology EMSEMS• Project cat.Project cat. Small Scale, EEI - II-CSmall Scale, EEI - II-C• InvestmentInvestment $728,000$728,000• Credit periodsCredit periods 2x7 years2x7 years• BL COBL CO2 EmissionEmission 15,950 ton/yr15,950 ton/yr• Project EmissionProject Emission 9,150 ton/yr9,150 ton/yr• COCO2 ReductionReduction 6,800 6,800 ton/yrton/yr



Technology – Centralized EMSTechnology – Centralized EMS

•High Efficient insulation materialHigh Efficient insulation material

•Existing control system TuningExisting control system Tuning

•Waste Heat Recovery (cooling Waste Heat Recovery (cooling water &hot/waste water)water &hot/waste water)

•Recovery of condensateRecovery of condensate

•Boiler tune upBoiler tune up



Summary of COSummary of CO22 Reduction (11 Plants) Reduction (11 Plants)

CO2 reduction 44,702 ton/yr

Fuel saving 14,550 TOE/yr

Investment cost $ 4.3 Million



Energy Efficiency Energy Efficiency Potential & OpportunitiesPotential & Opportunities

Applicable technologies as CDM projects (examples)

•Cogeneration

•waste Heat Recovery

•Energy Management System

•Combustion Control

•Fuel Switching

•High efficient Refractories

•…..

ECEP* Project 1989-1998

* Energy Conservation & Environment Project (ECEP), USAID project



Annual CO2 Emission Reductions (M tons)

EMS

Cogeneration

CCS

WHR

FS

0 1.4 6.30.7 2.82.1 3.5 4.2 4.9 5.6



Estimated CO2 Reduction (12 Million ton)

cdm/energy efficiency projects egypt : group ii

Documents

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