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Reports of CDM/JI Feasibility Studies: FY2008

Title of Feasibility Study (FS)CDM Feasibility Study for Waste Electricity Utilization at a Locomotive Plant in China
FYFY 2008
Main Implementing EntityMitsubishi Research Institute, Inc.
FS Partner(s)-
Location of Project ActivityChina
Summary of FS ReportPDF (185KB)
Description of Project ActivityThis project aims to make effective use of enormous amount of electricity which is generated for testing newly manufactured or repaired diesel generation units (the electricity is lost by water rheostat) by changing the system in a railway locomotive manufacturing facility in China.
In the railway locomotive manufacturing facility, locomotives take performance tests before diesel generating unit are installed. At the moment, the electricity at the test stand is lost by water rheostat. Its frequency and output power would be stabilized and this electricity would be retrieved to be utilized in the factories by developing and installing a new inverter (commercially available inverter lacks stability). It would result in saving the electricity imported from the network to consume in the factories, and in reducing CO2 emission. There are 4 test stands and they are in operation on steady basis.
The project activity also include recovery and utilization of waste heat and waste gas generated on testing diesel generating unit. We will save energy by supplying steam produced by retrieved waste gas to steam line in the factory, and at the same time, will improve the production line to clean the parts by using waste heat, substituting steam supplied by boilers.
Targeted GHGCO2
Category of Project ActivityOthers (Energy Efficiency)
Duration of Project Activity/ Crediting Period1June 2009-31 December 2030 / 1April 2010-31March 2020
Baseline Scenario (including Methodology to be applied)We made a suggestion of revising AMS-III.Q to include waste electricity to the Small-Scale Working Group.
The project boundary includes the physical, geographical site of the facility where the waste gas/heat/electricity is produced and transformed into useful energy, i.e. the locomotive plant.
According to the latest version of "Combined tool to identify the baseline scenario and demonstrate additionality", it is confirmed that continuation of the current practice is the baseline scenario.
Waste electricity will replace the electricity from the existing grid and waste gas/heat will replace the heat supplied by existing steam from boiler in plant.
Demonstration of AdditionalityFollowing the steps of the Combined Tool, it is demonstrated that the IRR is less than the regular business standard.
Estimation of GHG Emission ReductionsAnnual average 19,456t-CO2 x 10 years
Monitoring Plan (including Methodology to be applied)For baseline emissions determination, monitoring shall consist of:
  • Metering the thermal and/ or electrical energy produced. In case of thermal energy the enthalpy of the thermal energy output stream like hot water/ steam should be monitored.
  • Metering the amount of waste gas/ electricity or the amount of energy contained in the waste heat.
Environmental Impact AnalysisIt is thought that there is no negative environmental effect or that it is avoidable because this project set the energy saving system inside the plants. By contrast, this project will promote environment protection in the area because it reduces the emission SO2 and NOX in the power grid and the emission of coal ash.
Issues and Tasks for Project MaterialisationIt has high feasibility because the counterpart shows motivation and the government expressed its will to support. Now, the details of the ESCO business are being discussed between the locomotive manufacturing company, Japanese investor (bank), and Chinese investors (bank and a private investor). We should pay attention to that CDM is operated in response to the results of the discussion.
Co-benefits EffectsConducting this project gives the reduction of 126tSO2/yr and 33tNOx/yr. Considering negative externality from literature review as well as the reduction amount of SO2 and NOx, we have suggested the following co-benefit indexes and calculated the actual value of the project. As a result, Index 1 indicates benefit of the project activity for air pollution is 1.8 times as large as that of climate change. Also Index 2 shows the investment efficiency of the project activity, from the environmental perspective, is 22.8 times as large as investment amount.

Co-benefit Index 1 (Index of Contribution to Co-benefit)
    Contribution Index --- Climate Change vs. Air Pollution
    = Amount of reduction of Negative Externality (Air Pollution)/Amount of reduction of Negative Externality (Climate Change)
    = 2.8
Co-benefit Index 2 (Index of Co-benefit Investment Efficiency)
    Index of Co-benefit Investment Efficiency
    = Negative Externality (Climate change+Air Pollution)/Investment Amount
    = 22.8

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