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Climate Change Business
Opportunities
Climate Change Business Climate Change Business
Opportunities Opportunities
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GHG and climate change GHG and climate change GHG and climate change
Green house gas
(GHG)
Carbon-di-oxide (CO
2
)
Methane (CH
4
)
Nitrous oxide (N
2
O)
Per fluoro carbons (PFCs)
Hydro fluoro carbons (HFCs)
Sulphur hexa fluoride (SF
6
)
Green house gas
(GHG)
Carbon-di-oxide (CO
2
)
Methane (CH
4
)
Nitrous oxide (N
2
O)
Per fluoro carbons (PFCs)
Hydro fluoro carbons (HFCs)
Sulphur hexa fluoride (SF
6
)
Global Warming
Potential (GWP)
1
21
310
Upto 9,500
Upto 11,700
23,900
Global Warming
Potential (GWP)
1
21
310
Upto 9,500
Upto 11,700
23,900
Human activities are increasing the concentration of Green
House Gases (GHGs) in the atmosphere.
This enhances the green house effect, commonly known as
Climate Change
Human activities are increasing the concentration of Green
House Gases (GHGs) in the atmosphere.
This enhances the green house effect, commonly known as
Climate Change
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United Nation Framework Convention on Climate Change
(UNFCCC) adopted in Rio - Earth Summit 1992
First Major Initiative for International Cooperation in the area of
GHG mitigation
Primary objective being stabilization of GHG concentrations in
the atmosphere that would prevent interference with the
climate system.
Further strengthened at Kyoto in 1997, wherein the nations of
the world agreed that industrialized countries will reduce their
aggregate emission by 5.2% below 1990 levels by 2008-12
Global Initiatives on Climate Change Global Initiatives on Climate Change Global Initiatives on Climate Change
Kyoto Protocol entered into force on 16
th
Feb 2005 Kyoto Protocol entered into force on 16
th
Feb 2005
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Kyoto Protocol and CDM Kyoto Protocol and CDM Kyoto Protocol and CDM
Kyoto protocol - Establishes three mechanisms to
supplement national actions to achieve real, long term,
measurable and cost effective GHG reductions:
Clean Development Mechanism (CDM!)
International Emission Trading (IET!)
Joint Implementation (JI!)
Legally binding emission reduction targets for
GHGs only for Annex-1 (i.e., developed ) countries
Aim of reducing overall GHG emissions by at least
5.2% below 1990 levels in 2008-2012 commitment
period
Legally binding emission reduction targets for
GHGs only for Annex-1 (i.e., developed ) countries
Aim of reducing overall GHG emissions by at least
5.2% below 1990 levels in 2008-2012 commitment
period
Developed
Country Govt/
Pvt. Sector
Developing Country
GHG Abatement
Project
Carbon
Credits
Sale
proceeds
Carbon credits are measured in terms of Certified Emission Reduction (CER)
One CER equals 1 MT CO2 equivalent
Carbon credits are measured in terms of Certified Emission Reduction (CER)
One CER equals 1 MT CO2 equivalent
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Typical Kyoto Opportunities
(CDM Projects)
Renewable
energy
Waste
management
A/R projects
Waste heat
recovery
Hydro, Wind, Solar
Biomass / bagasse
Geothermal, Tidal
Cement
Steel / metallurgical
Coke ovens
Industrial fuel switch
(fossil -> clean)
Energy
efficiency
Fuel pellets
Power generation
Use as fuel
Waste-water mgmt. (biogas)
MSW management
Process
change Fertiliser: CO2 recovery
Refrigerant: HFC abatement
Aluminum: PFC control
Efficient
generation
Electrical
Thermal / fuel
Process
Efficient machines
T&D loss reduction
Steam saving
Thermal efficiency
Fly ash in cement
LPG, Natural gas
Biomass
Transportation
LPG, NG, Biodiesel
Modal shift, Pipeline
Carbon seqstration
Biodiesel production
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Availing the carbon credits Availing the carbon credits Availing the carbon credits
Project
Identification
Documentation
(PCN & PDD)
PDD Validation
by DOE
Finding
buyer
Contract with
buyer
Registration
with UNFCCC
Project
Construction
Project
operation
Generation of
Carbon credits
Verification/
Certification by DOE
UNFCCC / EB
Issues CERs
Buyer pays
Project proponent
CDM PROJECT
PROMOTER
BUYER OF CER CER
Endorsement
by DNA
E&Y E&Y
E&Y E&Y
E&Y E&Y E&Y E&Y
E&Y E&Y
E&Y E&Y
E&Y E&Y
PCN : Project Concept Note
PDD : Project Design Documentation
DOE : Designated Operational Entity
DNA : Designated National Authority of Host Country
CER : Certified Emission Reduction
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Qualifying criteria Qualifying criteria Qualifying criteria
Project start date on or after 1
st
January 2000
Cannot be a legal mandate
Should meet all additionality criteria as prescribed
by UNFCCC
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Determining Additionality Determining Determining Additionality Additionality
Whether project started after Jan 2000?
Whether CDM considered at the start of the project?
Documentary evidence?
Whether there is any regulatory/legal compulsion for the project?
Whether financial additionality exists?
Does CDM benefit makes the IRR acceptable?
Whether barrier overcome is demonstrated?
Technological barrier
Investment barrier (other than IRR)
Barrier due to prevailing practice
Any other barrier
Does it meet common practice test?
Whether similar other projects are also seeking CDM benefit?
Will CDM benefit help in alleviating the barrier?
Whether project started after Jan 2000?
Whether CDM considered at the start of the project?
Documentary evidence?
Whether there is any regulatory/legal compulsion for the project?
Whether financial additionality exists?
Does CDM benefit makes the IRR acceptable?
Whether barrier overcome is demonstrated?
Technological barrier
Investment barrier (other than IRR)
Barrier due to prevailing practice
Any other barrier
Does it meet common practice test?
Whether similar other projects are also seeking CDM benefit?
Will CDM benefit help in alleviating the barrier?
Conclude whether project additional or not Conclude whether project additional or not
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Carbon funds are available through Carbon funds are available through Carbon funds are available through
International tenders for CDM projects
Voluntary corporate initiatives
Multilateral Funds
EU commitment for carbon purchase through various schemes
Bilateral negotiations with the consortium of buyers
Carbon Price Carbon Price Carbon Price
Its a market-driven price
Approx prevailing price: Euro 10-15 / t of CO2-eqv
Its a market-driven price
Approx prevailing price: Euro 10-15 / t of CO2-eqv
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How Ernst & Young helps How Ernst & Young helps How Ernst & Young helps
Help in identification of project
Preparation of PIN and PCN
Preparation of Project Design Document
(PDD)
- Baseline study
- Environmental impact
- M & V Protocol
- Stakeholders comments
Assistance in PDD validation
Assistance in endorsement from the Ministry of Environment and Forests, GoI
Identify buyer of carbon credit for your project and facilitation for entering into
contract
Facilitation for certification of CERs throughout the crediting period
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Why Ernst & Young Why Ernst & Young
C
l
i
m
a
t
e

C
h
a
n
g
e

A
d
v
i
s
o
r
y

S
e
r
v
i
c
e
s
C
l
i
m
a
t
e

C
h
a
n
g
e

A
d
v
i
s
o
r
y

S
e
r
v
i
c
e
s
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Our Strength in CDM Advisory Our Strength in CDM Advisory Our Strength in CDM Advisory
Largest Market Share of registered CDM
Projects in the country (40%)
Knowledge Leadership and involvement in
Kyoto Protocol from early stages
Large team of Engineers and Post Graduates
with Energy and Environment background
CDM expertise at all the seven offices of E&Y in
India
International network
We are providing
CDM Advisory services to
> 475 CDM projects
150 approved by DNA
105 projects registered
OVER 35 transactions facilitated
Developed
6 Baseline
Methodologies
We are providing
CDM Advisory services to
> 475 CDM projects
150 approved by DNA
105 projects registered
OVER 35 transactions facilitated
Developed
6 Baseline
Methodologies
As on 18
th
July 2007:
Number of projects registered globally is 750+.
Number of projects registered from India is 257.
And number of projects
registered by E&Y is 105.
As on 18
th
July 2007:
Number of projects registered globally is 750+.
Number of projects registered from India is 257.
And number of projects
registered by E&Y is 105.
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Projects Registered - India
105, 41%
152, 59%
E&Y Others
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Consolidated Methodology for Increasing the Blend in Cement Production
--- Version 2
ACM 0005
Avoidance of methane from pit charcoal manufacturing process AMS IIIK
Waste gas and/or waste heat based steam generation or steam & power
generation [approved by meth panel to come up as consolidated
methodology]
NM 0179-rev
Consolidated methodology for waste gas and/or heat for power
generation --- Version 2
ACM 0004
Consolidated methodology for grid-connected electricity generation from
renewable sources --- Version 5
ACM0002
Steam optimization systems AM 0018
Methodology Title Methodology
Number
Experience in developing Baseline and Monitoring
methodology
Experience in developing Baseline and Monitoring
methodology
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Metal/Iron and Steel Sector Credentials Metal/Iron and Steel Sector Credentials
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Some E&Y Credentials Some E&Y Credentials in Metal/Iron & Steel Sector in Metal/Iron & Steel Sector
SAIL
1 project
Tata Steel
2 projects
Tata Metaliks
1 project
Tata Sponge Iron
2 projects
Ispat Industries
2 projects
Usha Martin
2 projects
Orissa Sponge Iron
1 project
Monnet Ispat
1 project
Essar Steel Limited
2 projects
Shri Ramrupai
1 project
Jai Balaji
1 project
Ispat Godawari
1 project
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Some E&Y Credentials Some E&Y Credentials in Metal/Iron & Steel Sector in Metal/Iron & Steel Sector
Sterlite Industries
5 projects
Sesa Goa Limited
2 projects
OCL India
1 project
Chhattisgarh Electricity
MSP Steel
1 project
1 project
Jindal Steel & Power
1 project
Visa Steel
2 project
Neelachal Ispat Nigam
Ltd
3 project
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Power Sector projects Power Sector projects
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!@
1 project
Maharashtra Energy
Development Agency
1 project
Calcutta Electricity
Supply Corporation
(CESC) Limited
3 project
Satyam Power
Company Limited
Chambal Power Limited
1 project
Aban Power Company
Limited
1 project
Tripura Power
Development Company
Pvt. Limited
1 project
Lanco Kondapalli
Power Pvt Limited
1 project
Raja Bhaskar Power
Generation Ltd
1 project
Hoogly Met Coke &
Power Company
1 project
1 project
Some E&Y CDM Credentials Some E&Y CDM Credentials in power sector projects in power sector projects
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#
!@
1 project
Lakshmi Overseas
Industries Limited
1 project
Sandur Power
Company Limited
3 project
OPG Energy Private
Limited
Santoshimatha Power
Projects Limited
1 project
Malwa Power Private
Limited
1 project
Patikari Power Private
Limited
1 project
Some E&Y CDM Credentials Some E&Y CDM Credentials in power sector projects in power sector projects
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Cement Sector Credentials Cement Sector Credentials
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Some E&Y Credentials Some E&Y Credentials in Cement Sector in Cement Sector
Aditya Birla Group
} Ultratech Cement 2 projects
} Aditya Cement 1 project
} Grasim South 2 projects
} Vikram Cement 3 projects
} Rajashree Cement 5 projects
} Grasim Raipur 2 projects
B K Birla Group
Kesoram Industries Limited :
Vasavadatta Cement 2 projects
M P Birla Group
} Satna Cement Works 1 project
} Chittor Cement Works 2 projects
} Durgapur Cement Works 1 project
} Raebarili Cement Works 1 project
Shree Cement
3 projects
Dalmia Cement
1 project
Binani Cement
3 projects
OCL India
2 projects
JK Cements
1 project
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Biomass based power projects Biomass based power projects
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Some E&Y Credentials Some E&Y Credentials in Biomass Power Generation Projects in Biomass Power Generation Projects
Clarion Power
Corporation Ltd., A.P.
(Rich husk)
Alwar Power Company Ltd.,
Rajasthan
(Mustard crop residue)
Nahar Spinning Mills Ltd.,
Punjab
(Rice Husk)
Oswal Woollen Mills Ltd.,
Punjab
(Rice Husk)
Vandana Vidhyut Ltd.,
Chattisgarh
(Rich husk)
Balarampur Chini Mills Ltd.,
U.P.
(Bagasse Cogen)
Triveni Engineering and
Industries Ltd., U.P.
(Bagasse Cogen)
Bannari Amman Sugars Ltd.,
Karnataka
(Bagasse Cogen)
Godavari Sugar Mills
Ltd., Karnataka
(Bagasse Cogen)
Hassan Biomass,
Karnataka
(Rich husk)
KMS Power Pvt. Ltd.,
A.P.
(Rich husk)
Sri Chamundeswari
Sugars Ltd., Karnataka
(Bagasse Cogen)
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Some E&Y Credentials Some E&Y Credentials in Biomass Power Generation Projects in Biomass Power Generation Projects
Deepak Spinners Ltd.,
M.P.
(Rich husk)
Amrit Projects,
W.B.
(Rich husk)
SCM Sugars Ltd.,
Karnataka
(Bagasse Congen)
Dhampur Sugars Ltd.,
U.P.
(Bagasse Congen)
EID Parry, Ltd.
T.N.
(Bagasse Congen)
Satya Maharishi Power
Corp. Ltd.
(Rice husk)
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E&Y CDM Credentials in Wind-power Sector E&Y CDM Credentials in Wind-power Sector
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Some E&Y Credentials Some E&Y Credentials in Wind in Wind- -power Sector power Sector
MSPL
3 projects
Suguna Poultry Farm
1 project
Godrej Agrovet Limited
1 project
Bellary Iron Ore
Private Limited
1 project
Hindustan Zinc
Limited
2 projects
Khivraj Motors
1 project
RBSSN Limited
1 project
Encon Services
1 project
Bannari Amman Group
2 project
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Some E&Y Credentials Some E&Y Credentials in Wind in Wind- -power Sector power Sector
Alembic Ltd
1 project
Nuziveedu Seeds
1 project
Shiva Texyarn
1 project
Y Mahabaleshwarappa &
Sons
1 project
Fairdeal Supplies
1 project
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!@
Hydro power projects Hydro power projects
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Some E&Y Credentials Some E&Y Credentials in in Hydel Hydel Power Based Projects Power Based Projects
Himalayan Crest Power
} 3 MW at Chandni in Sirmour District
} 3 MW at Manal in Sirmour District
} 3 MW at Timbi in Sirmour District
} 3 MW at Hurla in Kullu District
} 5 MW at Kurpan in Kullu District
Subhash Kabini Power
Corporation
2 x 10 MW at Kabini dam
in Karnataka
Ambuthirtha Power Pvt. Ltd.
2 x 11 MW
Swasti Power
22.5 MW Hydel Project
at Bhilangana, Uttaranchal
Punjab Hydro Power Ltd.
} 4.2 MW (1.4 MW + 1.5 MW + 1.3 MW)
at Dolowal, Salar, Bhanubhura in
Sangrur district
} 5.2 MW (2 MW + 2 MW + 1.2 MW) at
Lohgarh, Chakbhai, Sidhana in
Sangrur district
} 3.9 MW (1 MW + 1.9 MW + 1 MW) at
Babanpur, Killa, Sahoke in Sangrur
district
Shyam Energy Ltd.
1 x 6 MW
Neora Hydro Limited
1 X 3 MW
Ginni International
2 X 5 MW
Jaypee Karcham (Jaiprakash
Associates)
4 X 250 MW
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!@
Oil & Gas/Petrochemicals Sector Credentials Oil & Gas/Petrochemicals Sector Credentials
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#
Some E&Y Credentials Some E&Y Credentials in Oil & Gas/Petrochemicals Sector in Oil & Gas/Petrochemicals Sector
Essar Oil Limited
Numaligarh Refinery
Limited
3 projects
1 project
Haldia Petrochemicals
Limited
3 projects
Oil & Natural Gas
Corporation
13 projects
Reliance Industries
Limited
4 projects
Indian Oil
Corporation
6 projects
Bharat Petroleum
Corporation Ltd
5 projects
GAIL
Exploratory Study of GHG
reduction potential
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Some other E&Y Credentials Some other E&Y Credentials
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Some more E&Y CDM Credentials Some more E&Y CDM Credentials
Aditya Birla Group
} Indian Rayon & Industries Limited
3 projects
} Indo Gulf Fertiliser 1 project
B K Birla Group
} Kesoram Industries Limited : Birla
Tyres 1 project
} Kesoram Industries Limited :
Kesroam Rayon 1 project
RPG Group
} CESC Ltd. 3 projects
} Phillips Carbon Black Limited
2 projects
MEDA
1 project
The AP Paper Mill
1 project
Lanco Group
} Lanco Kondapalli Power 1 project
} Encon Services 1 project
} Aban Power 1 project
} Rithwik Power 1 project
Appollo Tyres
1 project
Indur Green
1 project
Hindustan Lever
2 projects
IFFCO
2 projects
BILT
3 projects
Chambal Power
1 project
OPG Limited
1 project
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#
Some more E&Y CDM Credentials Some more E&Y CDM Credentials
TNPL
1 project
ISA Power
1 project
KM Sugar
1 project
Sagar Sugar
1 project
NCS Sugar
1 project
Naturol Bioenergy
1 project
KMS Power
1 project
Tata Refractories
1 project
Clean Development Mechanism & Indian Fertilizer Industry
Aluminium Industry
&
Potential CDM Projects
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Aluminium Plants In India Aluminium Plants In India Aluminium Plants In India
The Aluminium Plants in India are :
HINDALCO : 0.242 MTPA
BALCO : 0.100 MTPA
NALCO : 0.230 MTPA
INDAL : 0.110 MTPA
MALCO : 0.030 MTPA
TOTAL : 0.712 MTPA (1.2% of Global)
The Aluminium Plants in India are :
HINDALCO : 0.242 MTPA
BALCO : 0.100 MTPA
NALCO : 0.230 MTPA
INDAL : 0.110 MTPA
MALCO : 0.030 MTPA
TOTAL : 0.712 MTPA (1.2% of Global)
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Aluminium Industry Energy Intensive Aluminium Industry Aluminium Industry Energy Intensive Energy Intensive
The Indian Auminiumindustry has a high power
consumption rate (15,000 - 18, 000 KWh / t Al) with
power costs constituting 20-40 % of the operating
costs. Globally, the power consumption rate is 13,000 -
15,000 kWh / t Al
The energy required to produce 1 tonne of aluminum
metal is roughly equivalent to the amount needed to
produce 138 tonnes of cement, 40 tonnes of urea, 27
tonnes of steel, 13 tonnes of paper, four tonnes of
cotton yarn, or 5.6 tonnes of caustic soda.
Thermal coal is primarily used for power generation in
captive power plants in Aluminium industries. Diesel,
liquefied petroleum gas (LPG), naphtha, and fuel oil
are some other fuels used in the production of
Aluminium.
The Indian Auminiumindustry has a high power
consumption rate (15,000 - 18, 000 KWh / t Al) with
power costs constituting 20-40 % of the operating
costs. Globally, the power consumption rate is 13,000 -
15,000 kWh / t Al
The energy required to produce 1 tonne of aluminum
metal is roughly equivalent to the amount needed to
produce 138 tonnes of cement, 40 tonnes of urea, 27
tonnes of steel, 13 tonnes of paper, four tonnes of
cotton yarn, or 5.6 tonnes of caustic soda.
Thermal coal is primarily used for power generation in
captive power plants in Aluminium industries. Diesel,
liquefied petroleum gas (LPG), naphtha, and fuel oil
are some other fuels used in the production of
Aluminium.
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Aluminum Production GHG Emissions Aluminum Production Aluminum Production GHG Emissions GHG Emissions
The GHG Emissions at various stages of
the Aluminium production are as follows:
Alumina Production:1.5-2.5 t CO
2
e / t Al
Electricity input : 15.6 MWh/t Al;
0-20 t CO2 e / t Al
Anode Carbon: 1.7-2.1 t CO2 e / t Al
PFC Generation: 0.02-24.5 t CO2 e/t Al
CF
4
and C
2
F
6
(Two Perfluoro Carbons
contribute to 40% of direct primary
Aluminium GHG Emissions
The GHG Emissions at various stages of
the Aluminium production are as follows:
Alumina Production:1.5-2.5 t CO
2
e / t Al
Electricity input : 15.6 MWh/t Al;
0-20 t CO2 e / t Al
Anode Carbon: 1.7-2.1 t CO2 e / t Al
PFC Generation: 0.02-24.5 t CO2 e/t Al
CF
4
and C
2
F
6
(Two Perfluoro Carbons
contribute to 40% of direct primary
Aluminium GHG Emissions
40
Aluminium Industry Process Flow Aluminium Industry Aluminium Industry Process Flow Process Flow
Bauxite, an aluminum ore is mined and
refined into alumina.
Then alumina is transformed into metallic
aluminum through Electrolytic reduction
in smelters.
Metallic Aluminium is then processed
(rolled, casted) to make finished products.
The Smelting operation is the most
energy intensive and causes CO
2
and PFC
emissions. The extent of energy required
and associated emissions largely depend
upon the type of technology used.
Bauxite, an aluminum ore is mined and
refined into alumina.
Then alumina is transformed into metallic
aluminum through Electrolytic reduction
in smelters.
Metallic Aluminium is then processed
(rolled, casted) to make finished products.
The Smelting operation is the most
energy intensive and causes CO
2
and PFC
emissions. The extent of energy required
and associated emissions largely depend
upon the type of technology used.
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Aluminium Manufacturing Process - Sources of Emissions Aluminium Manufacturing Process Aluminium Manufacturing Process - - Sources of Emissions Sources of Emissions
CO
2
Emissions
1. Bauxite Refining and Supporting Processes
2. Electrolytic reduction of Alumina (Smelting)
3. Smelting Supporting Processes
PFC Emissions
1. Smelting Process
The major Source of GHG Emission is the Smelting
Process as it is most energy intensive and therefore the
associated GHG emissions are high.
CO
2
Emissions
1. Bauxite Refining and Supporting Processes
2. Electrolytic reduction of Alumina (Smelting)
3. Smelting Supporting Processes
PFC Emissions
1. Smelting Process
The major Source of GHG Emission is the Smelting
Process as it is most energy intensive and therefore the
associated GHG emissions are high.
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Potential CDM projects in Aluminium Industry Potential CDM projects in Aluminium Industry Potential CDM projects in Aluminium Industry
Project Type
1. PFC reduction projects
2. Process improvement projects
3. Energy efficiency projects
Project Type
1. PFC reduction projects
2. Process improvement projects
3. Energy efficiency projects
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Methodologies applicable to Aluminium industry Methodologies applicable to Aluminium industry Methodologies applicable to Aluminium industry
Industry Specific Methodologies
AM 0030 : PFC emission reductions from anode effect
mitigation at primary aluminium smelting facilities
Generic Methodologies
ACM0004 : Consolidated methodology for waste gas and/or
heat for power generation - Version 2
ACM0009 : Consolidated methodology for industrial fuel
switching from coal or petroleum fuels to natural
gas - Version 3
AMS-II.A. : Supply side energy efficiency improvements
transmission and distribution
AMS-II.B. : Supply side energy efficiency improvements
generation
AMS-II.C. : Demand-side energy efficiency programmes for
specific technologies
AMS-II.D. : Energy efficiency and fuel switching measures for
industrial facilities
AMS-III.B.: Switching fossil fuels
44
Approved Methodology AM0030 Approved Methodology AM0030 Approved Methodology AM0030
1. Approved methodology AM0030 - PFC emission
reductions from anode effect mitigation at primary
aluminiumsmelting facilities
- developed by MGM International for project PFC
emission reductions at ALUAR Aluminio Argentino
2. Salient Features
1. Primarily aimed at the avoidance of PFC emissions in
Aluminium smelting facilities that use center work pre-bake cell
technology with bar brake (CWPB) or point feeder systems
(PFPB);
2. Requires three years historical data regarding current
efficiency, anode effect
3. At Aluminium smelting facilities that started operations before 31
December 2002;
4. At facilities where the existing number of pot lines and pots
within the system boundary is not increased during the crediting
period
1. Approved methodology AM0030 - PFC emission
reductions from anode effect mitigation at primary
aluminiumsmelting facilities
- developed by MGM International for project PFC
emission reductions at ALUAR Aluminio Argentino
2. Salient Features
1. Primarily aimed at the avoidance of PFC emissions in
Aluminium smelting facilities that use center work pre-bake cell
technology with bar brake (CWPB) or point feeder systems
(PFPB);
2. Requires three years historical data regarding current
efficiency, anode effect
3. At Aluminium smelting facilities that started operations before 31
December 2002;
4. At facilities where the existing number of pot lines and pots
within the system boundary is not increased during the crediting
period
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PFC Reduction Project PFC Reduction Project PFC Reduction Project
1. Fluoride contained in the raw material and anode carbon results in formation of
PFC
2. Level of PFC formation and emissions depends on type of technology, and
process conditions
3. A reduction in PFC generation can be attained by:
1. By switching to better smelting technology
2. By optimizing process of the technology in use
3. By capturing and recycling PFC gases
4. Few examples of the potential projects are:
1. Installation of point break feeders (PBF) in horizontal stud Soderberg (HSS) cells in aluminum
plants
2. Reduction in GHGs emission from primary aluminium smelter
3. PFC reduction by continous feeding of Aluminium plant
1. Fluoride contained in the raw material and anode carbon results in formation of
PFC
2. Level of PFC formation and emissions depends on type of technology, and
process conditions
3. A reduction in PFC generation can be attained by:
1. By switching to better smelting technology
2. By optimizing process of the technology in use
3. By capturing and recycling PFC gases
4. Few examples of the potential projects are:
1. Installation of point break feeders (PBF) in horizontal stud Soderberg (HSS) cells in aluminum
plants
2. Reduction in GHGs emission from primary aluminium smelter
3. PFC reduction by continous feeding of Aluminium plant
46
Energy Efficiency Projects Energy Efficiency Projects Energy Efficiency Projects
1. Various Energy Efficiency Projects that are applicable in
the aluminiumindustry are as follows:
1. Waste heat recovery
2. Co-generation
3. Smelter technology change to point feeder pre-bake (PFPB)
2. Other energy saving projects can be:
1. Improvements in bath chemistry;
2. Improved insulation to reduce heat losses;
3. Improved baking technology for carbon anodes;
4. Reduced carbon anode consumption per kilogram of
aluminiumproduced.
5. Optimizing burner positioning to enhance heat transfer in
Reverberatory furnaces
6. Improving air tightness in furnaces
7/26/2007
24 Ernst & Young
47
CDM Projects - Aluminium Sector CDM Projects CDM Projects - - Aluminium Sector Aluminium Sector
Aluminium Sector Projects
PFC emission reductions at ALUAR Aluminio Argentino
Under Validation stage
CERs : 86,000
Reduction in PFC emissions from primary Aluminium
smelters at Hindalco, Hirakud
Methodology Rejected
CERs : 912,000
PFC emission reduction through installation of Point
Break Feeders (PBF) in 468 Horizontal Stud Soderberg
(HSS) Cells in aluminum plants at INDAL, Hirakud -
Methodology Rejected
CERs : 256,000
48
CDM Projects - Aluminium Sector (contd.) CDM Projects CDM Projects - - Aluminium Sector ( Aluminium Sector (contd contd .) .)
Other projects in the Aluminium Sector
Registered
Yangquan Coal mine methane Advanced Industrial Furnace
Utilization Project
Technology A gas suspension furnace is installed to utilize
Coal mine methane as fuel in the Al(OH)
3
roasting process
CERs : 965,000
Under Validation
Fuel Switch Project of Shanxi Luneng Jinbei Aluminium Co., Ltd.
Technology the project involves switch over from higher
carbon intensive fuel to lower carbon intensive fuel.
CERs : 156,000
8.5 MW wind power project in Chitradurga district in Karnataka by
Jindal Aluminium Ltd
CERs : 15,000
7/26/2007
25 Ernst & Young
49
Summary Summary Summary
Aluminium is the second most consumed metal
in world.
Out of Indias total power consumption
(generation minus losses including pilferage),
50% is consumed by industry, and, out of this, as
much as 16% is consumed by the aluminum
industry.
Last but not the least, there are only a few CDM
projects in the Aluminium Industry.
Thus, there is enough scope of PFC emission
reduction and energy efficiency and vast CDM
potential in the Aluminium Industry.
Aluminium is the second most consumed metal
in world.
Out of Indias total power consumption
(generation minus losses including pilferage),
50% is consumed by industry, and, out of this, as
much as 16% is consumed by the aluminum
industry.
Last but not the least, there are only a few CDM
projects in the Aluminium Industry.
Thus, there is enough scope of PFC emission
reduction and energy efficiency and vast CDM
potential in the Aluminium Industry.
50
Data/info template Data/info template Data/info template
Stage at
present
Barriers/
Risks
GHG saved
quantification/ fossil
fuel saving/ energy
svings
Cap.
Invest-
ment
Date of
implemen
tation
Project description with how it
results in energy
efficiency/fossil fuel
savings/direct GHG emission
reduction
Sl.