NEDO-IC-OOER23 Feasibility Study on the Utilization of High Sulfur Pet. Coke as a By-Product at SINOPEC Fujian Petrochemical Company Limited March, 2001 New Energy and Industrial Technology Development Organization (NEDO) Entrusted to Chiyoda Corporation 020005084-7 Feasibility Study on the Utilization of High Sulfur Pet. Coke as a By-Product at SINOPEC Fujian Petrochemical Company Limited CHIYODA CORPORATION March, 2001 The investigation target : This basic survey carries out for Fujian Petrochemical Co. Ltd., Fujian Province, China. This project is the basic investigation for cutting down the greenhouse gas by the energy conservation introduction of technology of our country. The effective utilization of high sulfur petroleum coke Project in the petroleum refinery is planned, and the energy conservation cost performance of the project, the greenhouse- gas curtailment cost performance, profitability, circulation, etc. are investigated. Clean Development Mechanism which our company will carry out in the future (henceforth CDM) It aims at investigating that it should consider as the promising project connected. NEDO-IC-OOER23 Feasibility Study on the Utilization of High Sulfur Pet. Coke as a By-Product at SINOPEC Fujian Petrochemical Company Limited March, 2001 New Energy and Industrial Technology Development Organization (NEDO) Entrusted to Chiyoda Corporation Introduction This report is summarized the conclusions on Feasibility Study on the Utilization of High Sulfur Pet. Coke as a By-Product atSINOPEC Fujian Petrochemical Company Limited Fujian Province, China which Chiyoda Corporation was contracted as a joint implement project in the 2000 fiscal year from the New Energy and Industrial TechnologyDevelopment Organization (NEDO). The Third Conference of the Parties to the United Nations Framework Convention on Climate Change (COP3) was held in Kyoto, Japan in December 1997, and at the conclusion of the conference, the Kyoto Protocol was targeted for developed countries (including former USSR and Eastern Europe) to reduce their overall averaged emission rate of greenhouse effect gases such as carbon dioxide by at least 5 percent below 1990 levels between 2008 to 2012 in order to prevent the global warming. In the Kyoto Protocol, the reduction target for Japan is adopted to 6 percent. Joint Implementation(JI) and Clean Development Mechanism(CDM) are possible measures provided by the Kyoto Protocol to afford flexibility for achieving this goal positively acted to reduce the emissions of greenhouse effect gases collaboratively and distributing the result among numerous countries. The purpose of this basic survey is to find the Project, which contributes to the reduction of the greenhouse effect gas with the maintainable economic development in a partner's country, by introducing the Japanese energy conservation technology. It is also to aim at finding the possible project, which will be realized as Clean Development Mechanism with the corporation in Japan, through this feasibility study on the project planning need to be examined in details. Considering the above background and objective, this Effective utilization of high sulfur petroleum coke Project is selected and feasibility studies are conducted for Fujian Petrochemical Co. Ltd., Fujian Province, China.. The contents of this survey are to study the effects of the energy conservation and reduction of the greenhouse effect gas by the new provision of the Integrated gasification combined cycle(IGCC) facility which carried out the effective utilization of the petroleum coke. By carrying out this project, the investigation result which it not only can gain the reduction of the large greenhouse gas, but is that which satisfies the energy conservation goal and the profitability of refinery operation of the Fujian Petrochemical Co. Ltd., was obtained. For project realization, the detailed plot including the money raising will be examined with the counter partner, and it will correspond from now on. Finally, we, Chiyoda Corporation, wish to express our gratitude to the persons to be cooperated with this feasibility study, and sincerely hope that this report will be useful to all persons concerned. March, 2001 Chiyoda Corporation Member List for Feasibility Study Company Name Division/Dept./Group Title Name Chiyoda Ryuzo Energy Project Division Project Manager Corporation Watari NCF Team Chiyoda Tsutomu Domestic Business Dept. Manager Corporation Fujishiro Chiyoda Ryuichi Industrial Facility Project Division General Manager Corporation Araki Environmental Project Dept. Chiyoda Hisao Industrial Facility Project Division Assistant General Corporation Takahashi Environmental Project Dept. Manager Chiyoda Misao Industrial Facility Project Division Manager Corporation Tateno Environmental Project Dept.. Chiyoda Yusuke Industrial Facility Project Division Manager Corporation Shimada Environmental Project Dept. Chiyoda Syozo Industrial Facility Project Division Manager Corporation Mori Environmental Project Dept.. Chiyoda Taro Energy Project Division Engineer Corporation Ogawa NCF Team Chiyoda Ginnjiro Front End Engineering Division General Manager Corporation Fujima Process Engineering Dept. Chiyoda Hiroo Detailed Engineering Division Engineering Corporation Tsuruta Mechanical Engineering Dept. 1 Consultant Chiyoda Hideki Energy Project Division Assistant General Corporation Hori NCF Team Manager Chiyoda Hiriyasu Detailed Engineering Division Assistant General Corporation Naito Electrical Engineering Dept. Manager Chiyoda Kumao Project Control Dept. Assistant General Corporation Sato Manager Chiyoda Musashi Energy Project Division Engineer Corporation Sekine NCF Team Chiyoda Toshio Detailed Engineering Division Assistant General Corporation Takano Control System Engineering Dept. Manager Chiyoda Taketoshi Detailed Engineering Division Engineer Corporation Machidaa Mechanical Engineering Dept.l Company Name Division/Dept./Group Title Name Chiyoda Takashi Detailed Engineering Division Engineering Corporation Noto Mechanical Engineering Dept.2 Consultant Chiyoda Kunio Detailed Engineering Division Assistant General Corporation Suzuki Control System Engineering Dept. Manager Chiyoda Shin taro Detailed Engineering Division Engineer Corporation Abe Control System Engineering Dept. Chiyoda Shizuo Detailed Engineering Division Engineering Corporation Ishikawa Mechanical Engineering Dept.l Consultant Chiyoda Tomoyoshi Detailed Engineering Division Assistant General Corporation Ohara Mechanical Engineering Dept.2 Manager Chiyoda Toshiyuki Procurement Division Assistant General Corporation Horiike Purchasing Dept. Manager Chiyoda Yukihiro Energy Project Division Engineer Corporation Yamamoto NCF Team Chiyoda Daisuke Domestic Business Dept. General Manager Corporation Wakabayashi Chiyoda Kouichi Domestic Business Dept. Assistant General Corporation Kara Manager Chiyoda Takashi Industrial Facility Project Division Manager Corporation Sakamoti Environmental Project Dept. Chiyoda Akemi International Business Dept. Manager Corporation Takahashi Contents Feasibility Study on the Utilization of High Sulfur Pet. Coke as a By-Product at SINOPEC Fujian Petrochemical Company Limited Fujian Province, China Summary.......................................................................................................................... S-l 1. Basis of Project ................................................................................................................ 1-3 1.1 Present Status of Partner Country.............................................................................. 1-3 1.1.1 Political, Economic and Social Conditions ..................................................... 1-3 1.1.2 Energy Situation ........................................................................................... 1-21 1.1.3 Needs for Projects for CDM.......................................................................... 1-71 1.2 The Need for Introduction of Energy Conservation Technology in the Target Industry ...............................................................................................1-77 1.3 Significance, Need, Effect of the Project Concerned, and Dissemination of the Results to Similar Industries..........................................1-79 2. Materialization of Project Plan........................................................................................ 2-3 2.1 Project Planning .........................................................................................................2-3 2.1.1 Outline of the Regional Conditions of the Project Site................................... 2-5 2.1.2 Description of Project ................................................................................... 2-17 2.1.3 Greenhouse gases, Etc. Targeted for This Project .........................................2-22 2.2 Overview of the Project Site (Company)............................................................... 2-23 2.2.1 Level of Interest at the Project Site................................................................2-23 2.2.2 State of Related Facilities at the Project Site (Company)............................. 2-26 2.2.3 Project Implementation Ability at the Project Site (Company) ..................... 2-41 (1) Technical ability ................................ 2-41 (2) Management system ..................................................................................... 2-41 (3) Management base and management policy................................................... 2-42 (4) Financial