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Saving Money Through Efficiency

Artist Impresion

HTJ Green City Cogeneration

Plant

By:

datohjmatisa@gmail.com

GREEN

TECHNOLOGY

GREEN TECHNOLOGY

Malaysia's pledge: To reduce carbon emission up to 40% in terms of

emission intensity of GDP by 2020 compared with its 2005 levels

Green technology refers to product, equipment or system which comply

to the following criteria:

* It minimise environmental quality degradation

* It has low or zero GHG emission

* It is save to be used and provide better and healthy

environment to all life

* Save energy and natural resource

* Promote renewable energy resource

Cogeneration system is a green technology system since it has high

efficiency thus save energy

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Rujukan :

BLUE PRINT

Kerajaan Negeri Melaka

Melaka Maju Negeriku sayang

Negeri Bandar Teknologi Hijau 2011-2020

1. DASAR PEMBANGUNAN MAMPAN NEGARA

(Seksyen 1.3 : Dasar Teknologi Hijau Negara)

Sektor Tenaga

• Sektor bekalan Tenaga : Aplikasi Teknologi hijau dalam

penjanaan tenaga dan pengurusan bekalan tenaga,

termasuk penjanaan bersama (co-generation) di

sektor industri dan komersil ; dan

• Sektor Penggunaan Tenaga : Aplikasi teknologi hijau dalam

semua sektor penggunaan tenaga dan dalam program

pengurusan permintaan tenaga.

BLUE PRINT DASAR

TEKNOLOGI HIJAU

BLUE PRINT DASAR

TEKNOLOGI HIJAU

PROJECT

ADVANTAGES

Advantage

- What Is Cogen

Cogeneration is a process system that produce both electricity & steam (processed for district cooling)

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(Air conditioning)

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(air conditioning)

Advantage-

Cogen Versus Power Plant

By having Cogen, Melaka is supporting

green technology industry as aimed by

Melaka Green Technology Council

Melaka owns equity as cogen plant owner ,

contribute long term State income based on

equity.

By having Cogen, HTJ Green City contribute

CO2 emission reduction.

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Advantage-

Cogen Benefit To Melaka

GHG emission per annum coal plant= KWHe xGHG rate =12,600 x24x365 x0.8x949 = 83,797 ton of CO2

GHG emission per annum gas plant= KWHe xGHG rate = 12,600 x24x365 x0.8x428 = 37,792 ton of CO2

GHG emission per annum gas DC= KWHe xGHG rate =12,600 x24x365 x0.8x148 = 13,068 ton of CO2

GHG emission per annum COGEN= KWHe xGHG rate =12.600 x24x365 x0.8x49 = 4,326 ton of CO2

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Advantage-

HTJ Green City Reduce CO2 Emisson

Advantage-Melaka Reduce

CO2 79K ton/Yr

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coal pwr gas pwr gas dc cogen

GHG in ton 83,797 37,792 13,068 4,326Reduce COGEN vs coal 79,471 0 0 0

Reduce COGEN vs gas 33,466 0 0 0

Reduce COGEN vs gas DC 8,742 0 0 0

Conventional district cooling Cogeneration

1 District Cooling use Electric chiller (ECC)

& R14 refrigerant harm-full to

environment

Cogen use Steam Chiller &Lithium

Bromide( salt) refrigerant, not harm to

environment

2 ECC use electricity TNB power plant. 1

MWh electricity produced consume

7million BTU gas. Plant efficiency 55%,

4.2 million BTU of gas wasted for each

1MWh

Cogen efficiency 85%, saving 30% gas

fuel compare gas power plant.

3 To run ECC, electricity is used originated

from power plant. 12.6MW coal plant

emit 79,000 ton carbon per annum

Cogen use lesser fuel energy and a

12.6MW cogen plant produced 4,326 ton

CO2 per annum.

4 Even SAC is used (gas direct firing), heat

wasted since NO heat recovery.12.6MW

DC plant produce 13,068 ton CO2 per

annum.

Cogen use HRSG, to RECOVER heat

from wasted to air.

5 District cooling an old version technology,

less value green technology for CO2

reduction to reduce global warming.

Cogen, a green technology initiative

reduce CO2 emission, fuel saving. Reduce

global warming.

Advantage-

District Cooling Versus Cogeneration

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PROJECT

PROPOSAL

PROJECT PROPOSAL

Proposed Cogen HTJ Green CityMITC

PROJECT PROPOSAL

Cogen Location

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FINANCIAL

IMPLICATION

FINANCIAL IMPLICATION

Financial Summary

CAPEX RM 128.00 million

IRROI 23.2%

Payback 4.0 years

NPV at 12% RM118.33 million

Revenue About 48.49 millon/yr

EPCC cost RM 112.64 million

Civil Cost RM 14.08 million

OPEX RM 10.358 million

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FINANCIAL IMPLICATION

Financial Summary

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Pre-tax Project IRR 23.2%Pre-tax project nominal Internal Rate of Return (IRR)

Pre-tax Project NPV 118,327 ('000) Ringgit 38,669 ('000) US $

Post-tax Project IRR 21.4% Area_Fin_CorporatePost-tax nominal project Internal Rate of Return (IRR)

Post-tax Project NPV 100,410 ('000) Ringgit 32,814 ('000) US $Post-tax Net Present Value (NPV)

Post-tax Equity IRR 21.4%Post-tax nominal equity Internal Rate of Return (IRR)

Discounted payback time 5.6 Years

Simple payback time 4.0 Years

Total investment costs (incl. contingency) 128,000 ('000) Ringgit 41,830 ('000) US $

Avoided investment (if cogen is implemented) 0 ('000) Ringgit 0 ('000) US $ Area_Fin_Ba_Avoidinvest

Discount rate 10.0%

Equity 100.0%

Financial project lifetime 15 Years

Cash flow coverage ratios Minimum Average Area_Fin_Ratios

Pre-tax of interest

of debt service

Post-tax of interest

of debt service

Pre-tax Net Present Value (NPV)

FINANCIAL IMPLICATION

Estimated CAPEX & OPEX Cost

CONVENTIONAL

DISTRICT COOLING

COGEN-DCS

CAPEX 67,053,881.05 RM75,182,000.00

Annual OPEX

NA RM 10,239,996.92

(For an 7,000RT/12.6MW plant))

Note: Operating cost about half compared to conventional. The

bigger is the capacity, the smaller in percentage is the operating cost

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FINANCIAL IMPLICATION Revenue Source

1) From sales of electricity to captive(own

use) power ( Not to grid)

2) From sales of chilled water to captive

user (HTJ Green City Buildings & UTeM)

3) CER Sales

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FINANCIAL IMPLICATION Revenue

FINANCIAL IMPLICATION Cogen Revenue Calculation

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REVENUE HTJ Green City GAS COGEN ( Installed 12.6MW & 7000RT )

Demand /ANNUM Remarks

Elect MD For Max Demand 10,395.0 KW 124,740 KW

Max Demand is

charged monthly

rate 35.6 RM/KW 0 RM a(

for HTJ Green City Melaka( KWhr) 239,085 113,400 KWH 64,894,095 KWH 187 + 178 days a year

peak offpeak peak offpeak

124,740 114,345 56,700 56,700 64,894,095.0 kwh

Elect TarifC2 MD 38.6

Cost 0.288 0.177 0.288 0.177 RM/KWh 0.0 RM b

Elect Tarif B MD

Low Volt commercial 0.393 0.0

ElectTarif C1u Max D 25.9 3,230,766.0 monthly charge

rate 0.312 20,246,957.6

TBB 8.5 C.Load 10,395.00 0.0 monthly charge

RTH For Max Demand 7,560.0 RT 90,720.0 KWH

Max Demand is

charged monthly

COOLING Cost 74.0 RM/RT 6,713,280.0 RM c

For Demand 90,720.0 76,860.0 RTH 30,645,720.0 RTH 187 + 178 days a year

Cost 0.550 RM/KW/M 16,855,146.0 RM d - for UTP is 55sen

CER Capacity(MW) x.85plant factorx24hrsx365days x emission factor .85 2,440,247.8 RM

Plant Gross REVENUE 65.8 49,486,397.44 RM a+b+c+c+d

Plant Operating Cost 10,357,809.06 RM

Tariff C1U (TNB) Plant Opertaing profit 52.0 39,128,588.38 RM

rate 0.312 RM

MD rate 25.9 RM Total electricity 23,477,723.6

TBB of CL 8.5 RM Total CHW 23,568,426.0

other than electricity 26,008,673.8

daily( in weekday) daily( in holiday)