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Reports of MOEJ/GEC JCM Project Planning Study: FY2013

Title of StudyJCM Project Planning Study
Introduction of the regenerative burners to the aluminum furnaces at the automotive components manufacturer
FYFY 2013
Main Implementing EntityToyotsu Machinery Corporation
Study PartnersMizuho Bank, Ltd., and
PT. Toyota Tsusho Indonesia
Location of Project/ActivityJakarta, Indonesia
Category of Project/ActivityEnergy Efficiency
Study Report

Note: JCM proposed methodology, and calculation sheet are the result of the study. They have neither been officially approved, nor are guaranteed to be officially approved under the JCM.
Description of Project/ActivityIn the proposed project, we plan to install “Regenerative Burner” that has ability to generate the heat for aluminum furnaces as the replacement of the conventional burners installed in the automotive components manufacturer in Indonesia, in order to reduce fossil fuel consumption and CO2 reduction.
JCM MethodologyEligibility Criteria1. The furnace is either of the following types for the aluminum casting process:
・ Melting furnace
・ Holding furnace
2. Project type is either greenfield, expansion of the existing facility or replacement of the existing facility.
3. Electricity used in the project activity is purchased from the Java-Bali Grid.
4. Regenerative burner is applied to the furnace under the project activity.
5. The manufacturer of the furnace or the burner has constructed the maintenance system before introducing the regenerative burner including the followings:
・It has a district factory of facility manufacturing or a district office of facility supply.
・It makes a maintenance contract (maintenance against malfunction and parts supply) with the user of the facility.
Default Values1. CO2 emission factor of the Java-Bali grid in year: 0.741tCO2/MWh (2010, ex-ante)
2. Energy consumption intensity used for each type of industrial furnace is shown below (default value).
    ・Melting furnace: 870,000 kcal/Ton
    ・Holding furnace: 93 kcal/kg*h
3. Use IPCC data for calorific value of natural gas and CO2 emission factor of natural gas according to the kind of fuel.
Calculation of Reference EmissionsCO2 emissions are calculated based on the estimated consumption of fossil fuel in the assumed facility to be introduced without the proposed project.
Got sampling data of the candidate company plants, screened on work road to the capacity, determined the best value as the reference.
Monitoring Method- Consumption of fossil fuel (natural gas): Monthly
- Consumption of electricity: Monthly
- Material weight for melting: Each time and total of month
- Holding time of the holding furnace: Monthly
GHG Emission ReductionsReference CO2 emissions is calculated under the assumption of energy consumption intensity of the furnace without the project activity, which is decided for each type of melting furnace and holding furnace, the same type and the same manufacturing output with the project activity to introduce the regenerative burner.
Estimated Emission Reductions:1,622 (tCO2)/year at the project site.
Environmental ImpactsThis project gives no increase of environmental effect.
Project and its Financial PlanReplace one melting furnace with capacity 1,500 kg/h and 13 holding furnaces for the motorcycle manufacturer. Financial study by cash flow analysis shows IRR 26.45% with 50% subsidy for initial investment.
Promotion of Japanese TechnologiesRegenerative burner of Japan is developed in the 1990s, and has advantage over the overseas products in low NOx and high efficiency. Japanese manufacturer has outlets in Jakarta area and gives support to the customer. Bloom engineering, world giant in the burner, has no outlet in Jakarta area. Asian manufacture sell low cost regenerative burner, 20% of the Japanese burner in cost, but the product has problem in reliability and durability. Japanese regenerative burner will be applied to the melting furnace and holding furnace under the project activity.
Sustainable Development in Host CountryEnergy consumption in Indonesia is increasing year by year, and energy saving Regenerative burner technique will help sustainable development. Regenerative burner will apply to iron heating and heat treatment furnace more effectively than for nonferrous furnace because of high temperature usage.

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