Baselinebofgaselectgeneration Sharma&Shrestha

7/28/2019 Baselinebofgaselectgeneration Sharma&Shrestha

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Case Study 1: Basic Oxygen

Furnace (BOF) Gas based

Electricity Generation

S. Kumar, S. Sharma and R.M. Shrestha

Asian Institute of Technology

4 April 2005


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To provide the background of Case study 1

Project description Baseline Methodology description

The project details Baseline Methodology

Methodology: Applicability conditions

Identification of Baseline scenario

Additionality

Project Boundary Baseline formulae

Leakage

Emission reductions

Data Sources and Vintage

Presentation

Objective

Presentation

Outline

Presentation Objective and Outline


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INTRODUCTION


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World steel production 965 million metric tonnes (mmt)((63.3% by BOF)

China (1st) 220.1 mmt; Japan 110.5 mmt; USA 90.4 mmt

India (8th) 31.8 mmt (48.7% by BOF process)

Total production for the Asian region was 41.4 mmt, a rise of

10.3% on February 2004.

China produced 24.8 mmt of crude steel in February, up21.2% on the same month in 2004.

Source: http://www.worldsteel.org/media/wsif/wsif2004.pdf

SOME STEEL DATA

2003

Feb.

2005


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The Jindal Vijayanagar Steel Plant (JVSL) is the mostmodern, technologically efficient and eco-friendly

integrated steel plant of its kind, and uses therevolutionary Corex technology.

The Plant has a hot rolling capacity of 2.5 million tpa.

During the production of steel using BOF process, CO is produced.

This has a calorific value of about 2,000 kcal/Nm3

. This gas is currently flared.

It is proposed to collect and use this gas

as a fuel in a power plant to produce electricity. The electricity to

be supplied to the state grid (about 95 GWh per year). The

power plant currently uses coal.

as a fuel for internal heating requirements of the plant

It is estimated that the primary emission reductions would amount

to 575,967 tonnes of CO2 during the 10 year crediting period.

Source: http://www.jvsl.com/; Project Document

SOME PROJECT DATA
http://www.jvsl.com/http://www.jvsl.com/


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BOF gas, 2000

Kcal/NM3

Used as fuel for heat

Power Plant(i) Supply to existing power plant (sister concern)

no capacity increase (BASE: only coal); &

(ii) Few New proposed power plant supplying to grid

PROJECT:Gas Collection,cleaning, storage

and distribution systemBase Case: Flared

PROJECT DESCRIPTION - SCHEMATIC

STEEL


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7Source: http://www.energymanagertraining.com/iron_steel/Iron_Steel_process.htm

BOF GAS

BASIC OXYGEN FURNACE (BOF) OPERATION


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8http://www.mapsofindia.com/states/index.html

.VSNL Plant

540 km

460 km

PROJECT LOCATION


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BASELINE

METHODOLOGY


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Methodology: Applicability conditions Part of waste gas used for internal heating requirements within the

steel manufacturing industry, and remaining waste gases wouldnormally have been flared in the absence of the project activity;

Project activity does not induce diversion of waste gases required forinternal usage, to project activity;

No change in process except changes due to collection, stabilizationand transportation of waste gases to electricity generators;

No local regulations/ programmes to constrain use of GHG intensivefuels (like coal), nor any regulation making use of waste gasesmandatory; and

Project activity results in supply of electricity to local grid, excludinggrids with surplus power, unless cost of generation and supply isfavourable for inter-grid transfers.

Though not stated methodology applicable to project that supplies gas to Existing power plant with no expansion of capacity, or

Existing power plant with gas meeting requirement of capacity expansion, or New power plant supplying to grid.


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Identification of Baseline Scenario

Approach 48(a) existing actual or historical.

The baseline scenario (ie. in the absence of the

proposed project activity) has the following

components: Flaring of excess BOF gas

In absence of use of BOF gas for electricity generation

use of more GHG intensive fuels for generation of additional

electricity at the existing power plants leading to emission ofGHG (Case I); and

need to establish new power plants to meet any shortfall in

supply, with possibility of further GHG emission (Case II).


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Identification of Baseline Scenario

Case I: Partial replacement of existing GHG intensive fuel in anexisting power plant (no generation increase).

The baseline scenario is therefore continued use of theGHG intensive fuel.

Baseline: GHG intensity of existing power plant.

Case II: Use of waste gas to generate additional power in existing

power plant and/ or generate power in new powerplant(s).

The baseline scenario in this case is electricity wouldhave otherwise been generated by the operation of grid-connected power plants and by addition of newgeneration sources.

Baseline: Combined Margin grid intensity based onACM0002 methodology.


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Additionality

Use of Tool for assessment anddemonstration of Additionality Investment analysis

investment comparison analysis using a financialindicator (such as IRR, NPV,cost benefit ratio,levelized cost of electricity generation or Rs./kWhvalues), and checking whether there is at least oneidentified alternative which is better for investment thanthe project activity.

The chosen alternative to the project is flaring of thewaste gases, and purchasing power from the grid. Thecost of power in the alternative scenario in comparisonto the project activity is Rs 1.94/kWh.


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Project Boundary

Source: Project Document

This includes points of generation of waste gases in steel mfg operation,

stabilisation, cleaning and transportation of these gases to the power plant

through a gas handling network, delivery of power to grid, and all associated

equipment for such project activity, under the control of the projectproponents.


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Baseline Case I: Formulae usedPartial replacement of existing GHG intensive fuel in an existing

power plant (no generation increase).


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Baseline Case 2: Formulae Used

Operating Margin

Build Margin

The sample group m consists of either: five power plants that have been built most recently [including plants under

construction], or

power plants capacity additions in the electricity system that comprise 20%

of the system generation (in GWh) and that have been built mostrecently [including plants under construction].

Use of waste gas to generate additional power in existing powerplant and/ or generate power in new power plant(s).

L k


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Leakage Due to use of displaced hydrocarbon fuel by other smaller power

generators who currently use renewables. However, in cases where there could be demand for power, such

possibilities are ruled out since this would necessitate replacementand use of alternate power generating technology, which may not befeasible for a smaller generator.

Diversion of waste gas use to producing electricity rate of waste gas generation fixed a priori, and the waste gas utilisation for internal heating and steam generation

cannot be less than the sectoral average in the country or region

CF: Correction Factor for gas quantity eligible for emissionreduction = Minimum[(X-Z), Y, W] / W Y : minimum quantity of waste gases flared in the steel manufacturing

industry (average of sector during the last 3 years)

Z: average amount of waste gases used for internal requirements ofall waste gas generators (in similar steel manufacturing sector) in theregion or country during the last 3 years

X: the minimum quantity of waste gases generated in the steelmanufacturing industry sector during the last 3 years, and

W: waste gas supplied to power plants

If the steel industry sector values for X,Y and Z are not available, thenCF = 1


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Emissions Reductions

In existing power plant where only fuel replacementoccurs ERy(1) = Baseline I * CF PEy

In existing power plant where fuel replacementoccurs along with additional power generation ERy(2) = (Baseline I + Baseline II)* CF PEy

In a Greenfield power plant connected to the grid orapproximate emission reduction ERy(3) = Baseline II* CF PEy

If more than one of the above occurs, thenERy(4) = (Baselinei * CF) - PEy

Note: PEy = 0


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Data Sources and Vintage

Fuel

Consumption, Calorific value, heat rate: Proprietary data Emission factor : IPCC

Heat Rate : Proprietary data

Electricity delivered: Regional Electricity Board

Waste Gas: Proprietary data

Local level data: 3 years old or of lesser vintage

Regional level data: 5 years vintage


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Next .

Basic information regarding the project has beenpresented

Whether the Methodology has been completelydefined

Transparency and Conservativeness has been taken

into account

Is the Methodology correctly applied

Thank You

Baselinebofgaselectgeneration Sharma&Shrestha

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