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Feasibility Studies with the Aim of Developing a Bilateral Offset Credit Mechanism FY2011

Studies for Project Development and Organization

Energy-saving project for the manufacturing process of caustic soda & product through New Energy and Industrial Technology Development Organization (NEDO) Asahi Glass Co., LTD. & Others F/S for Bilateral Offset Credit Mechanism Category:Chemical EnergyEnergy--savingsaving project for the manufacturing process of caustic soda & chlorine ppgroduct through brine electroly sis FS b yy, Asahi Glass Co., LTD. & Others

Overview

To study the potential of CO2 emission reduction through converting the brine electrolysis process for caustic soda and chlorine production into the latest energy-efficient process for them.

Technology outline

・Caustic soda and chlorine products are indispensable chemicals for a variety of industries and public infrastructures. ・ Even now, in many countries, caustic soda and chlorine products are manufactured by inefficient brine electrolysis methods such as process and the diaphragm process, in spite of their inefficient energy performance and hazardous potentials. ・Japanese manufacturers have been developing and producing highly-efficient and eco-friendly - exchange membrane and related equipments , which is 20-30% energy efficient compare to conventional processs

Energy conserving potential

Electrolysis process Mercury Asbestos Ion-exchange diaphragm membrane Energy consumption rate 100 90-80 80-70 Comparison (Mercury 100%)

* Comparison on 50% caustic soda as standard product basis. The electric power consumption is sum total of steam energy for condensation and electrical power for each electrolysis. The steam energy is converted to electrical power at 1ton steam =200ACKWh. 1 F/S for Bilateral Offset Credit Mechanism Category:Chemical

Study items

① Design the best energy conserving system correspond to the current system and partner’s requirement. ② Establish MRV methodology for conversion . ③ Policy, Regulations and/or permissions related to plant conversion and construction. ④ Study of economic and financial scheme.

Boundary and Plant design

Table 1 Proposed Electrolyzer example plan Item Specification a)Type n-BiTAC833 (expandable to n-BiTAC844) b)The number of electrolyzer 6 c)The number of circuit 6 d)Membrane Flemion F-8020SP e) DSA f) Active cathode g)active electrolysis area 3.276m2 x 33 h)Dimensions - length (m) 3.6 - width (m) 242.4 - height (m) 1.6

Fig.1 Project boundary

2 F/S for Bilateral Offset Credit Mechanism Category:Chemical

MRV Discussion

To study and develop appropriate the MRV (Monitoring, Reporting and Verification) that are including methodology for emission reduction calculation, baseline setting.

Existing Methodology Study Methodology Investigation

CDM Methodology (energy efficiency improvement) Estimation of baseline emission AM0017, AM0018, AM0020, AM0038, AM0054, AM0056, AM0060, AM0061, AM0062, AM0068 AMS II-B, AMS II-C, AMS II-D MRV Estimation of for Bilateral project emission Other methodologies Mechanism

J-MRV, J-VER, Japan domestic credit, Other scheme for eligibility (RGGI, Establish the AB32, MSW GGAS) monitoring plan

Fig.2 MRV Development Eligibility and additionality 1. Improvement of energy efficiency by switching the electrolysis process to the ion- exchange membrane process. 2. Non- existence of regulation which regulates chlor-alakli production by mercury or asbestos diaphragm process in the host country. 3. Ion-exchange membrane is uncommon method in host country. 3 F/S for Bilateral Offset Credit Mechanism Category:Chemical

Estimated emission reduction in the FS

Mercury Ion-exchange Emission reduction Two site membrane ▲5.6x 104 t/y

Ripple effect on other site or region

Table 2. Estimated emission reduction of the conversion from mercury or diaphragm process into Ion‐exchange membrane (1000 Mt) Mexico World

Emission reduction (thousand t CO2e) ▲167 ▲11,300

•Precondition; Energy Consumption per ton of 100% NaOH production Mercury,= 3.32MWh/ t-NaOH, Diaphragm process=3.02MWh/t-NaOH, IM process=2.29MWh/ t-NaOH

CO2 emission factor for (average 2007-2009 , source: CO2 emission from combustion 2011 edition, IEA

Mexico= 0.455tCO2t/MWh, World =0.504 CO2t/MWh

Remaining issues to establish BOCM

‹Bilateral agreement and rule making in both countries ‹ Promotional incentives for energy conservation. z Capac ity bu ilding for improv ing consc iousness a bou t energy conserva tion z Financial incentive

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