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Reports of MOEJ/GEC JCM Project Planning Study: FY2013

Title of StudyJCM Project Planning Study
Integrated energy efficiency improvement at beer factory
FYFY 2013
Main Implementing EntityRENOVA, Inc.
Study PartnersHanoi Beer Alcohol and Beverages Corporation (HABECO), Habeco Me Linh factory, Vietnam Brewery Association, AI-AI Energy Associates, inc., Climate Experts Ltd., and Japan Quality Assurance Organization
Location of Project/ActivityTien phong Village, Me linh District, Hanoi, Viet Nam
Category of Project/ActivityEnergy Saving
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/ActivityThe purpose of this project is to dramatically reduce GHG emissions through the reduction of fuel and electricity consumption by introducing a multiple energy-saving, renewable energy facility system, whereby heating and cooling processes sequentially take place and a large amount of energy is consumed during the different manufacturing phases at a beer manufacturing factory. The subject factory is the Me Linh factory of Hanoi Beer Alcohol and Beverages Corporation (HABECO). HABECO is the third largest beer manufacturer in Vietnam.
JCM MethodologyEligibility Criteria
  • Criterion 1: Two or more of the following technologies are implemented in the project and there exists a maintenance plan:
  • Biogas boiler system, bottle washer heat recovery system, cascade cooling system, CO2 recovery & liquefaction system, fuel conversion once-through boiler, pasteurizer heat pump system, vapor recompression system (VRC), wort kettle heat recovery system
  • Criterion 2: Energy-saving effects of the project are calculated before the project using the energy structure analysis simulator.
  • Criterion 3: A project factory produces beer and/or carbonated beverages. The project factory is a factory built prior to the project.
  • Criterion 4: There are no drastic differences in production process and products between before and after the project implementation, or the drastic changes can be compensated. (“Drastic change” refers to a beer gravity change of more than XX%)
  • Criterion 5: Amount of electricity, fossil fuels and steam consumed in the area affected by project activities as well as the production volumes are measureable both before and after the project implementation. (It is desirable if the last 3-year data before the project is available. If the available data is less than 3 years, it needs to be adjusted. The adjustment is to be easily made using average yearly temperatures, etc.)
  • Criterion 6: In case new biomass sources are used in biogas utilization, an issuance of a certificate indicating “not used” and/or the past design drawings are provided by the factory to prove that these biomass sources were not used prior to the project implementation.
Default ValuesGHG emission original unit for fossil fuel: to simplify MRV procedures
Production volume correction coefficient of drink category and package category: To convert varieties of drink category(beer, bia hoi, carbonated drink) and package category(bottle, can, barrel) into each index
Calculation of Reference EmissionsCalculate the standard deviation of the efficiency correction coefficient to the production volume fluctuation and the efficiency fluctuation to the production volume fluctuation before the project using the data of energy consumption and production volume before the project.
Then calculate conservative reference emission by subtracting 1σ standard deviation of reference energy consumption original unit from BaU.
Monitoring Method
  • Electricity: Grid power (consumption):every 10 days, Fuel oil for emergency power source (purchase volume): every purchase, Fuel oil for emergency power source (consumption): every month, Emergency power source electricity (consumption): every month
  • Steam: Fuel oil for boiler (purchase volume): every purchase, Fuel oil for boiler (consumption): every month, Boiler-provided steam (consumption): every month, Supplier-provided Steam(consumption): every month
  • Shipment: Bottled beer (shipment): every shipping, Canned beer (shipment): every shipping
GHG Emission ReductionsCalculate GHG emission reduction by the difference of each energy consumption original unit (secondary energy) of reference/project scenario which are corrected for production volume fluctuation.
Calculation method for reference emission: 14,118 tCO2/year
Calculation method for project emission: 11,356 tCO2/year
GHG emission reduction: 2,762 tCO2/year (calculated with the production volume after extension)
Environmental ImpactsThis project is not subject to an environmental impact assessment (EIA).
Air pollutant declines with reduction of fossil fuel combustion amount.
Project and its Financial PlanRENOVA proposed introducing 6 energy efficiency technologies to HABECO. The length of investment-return will be 3 years and a few months when introducing all of these technologies utilizing JCM facility aid. HABECO shows strong interest in the proposal, that when they agree to operate the project, it will start in April 2015 at the soonest.
Promotion of Japanese TechnologiesJapanese technology has originality and superiority in software such as energy structure analysis simulator and plant maintenance instrument. However when it comes to simple energy efficiency facilities, there is no major difference in price and capability between Japanese and Western manufacturer, but Chinese is competitive with low price. In order to promote this project in Vietnam, facility aid to overcome an obstacle of initial investment, promotions of understanding for advantages in energy efficiency in the aspect of life cycle cost, and also of understanding for JCM are required.
Sustainable Development in Host CountryThe proposal is consistent to the national development strategy, climate change policy, and energy efficiency policy in Vietnam and it also contributes to strengthen competitiveness of the industry. Energy efficiency is especially an urgent obstacle in Vietnam with sudden rise of energy price. This project makes significant energy saving at factories, that therefore it is worth operating so as to overcome these obstacles.

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