JCM Model Project Power generation by waste heat

recovery in cement industry

2

About JFE Engineering Corporation

Project Information

Project Scheme & Schedule

Advantage & Challenge

Future Market

JFE Group Structure

3

5

42,500

Net Sales(million US$)

Employees 26,900

JFE Steel

6,200

Net Sales(million US$)

Employees 17,800

JFE Shoji Trade

JFE Holdings (holding company)

45.93 % 100 %

7,400

Net Sales(million US$)

Employees 2,840

JFE Engineering

Japan Marine United

(FY2013, US$1=JPY100)

JFE Holdings 45.93% IHI 45.93% Hitachi Zosen 8.15%

JFE Engineering Business Field

Environment

Energy

Steel Structure

Industrial Machinery

Net Sales (million ＄)

2,840 -Waste-to-Energy -Biomass -Water Solution

-Pipeline -LNG -Power Plant

-Bridges -Coastal structure -High rise structure

-Logistics (Bicycle Parking System, Container warehouse, Port cranes)

4

Global Network

5

Asia & Oceania

Frankfurt(Regional Head Office)

Singapore (Regional Head Office)

Singapore Kuala Lumpur (Malaysia) Jakarta (Indonesia) Hanoi, Ho Chi Minh (Vietnam) Yangon (Myanmar) Manila (Philippines) Mumbai, Pune (India) Brisbane (Australia)

Beijing (Regional Head Office)

America

Asia & Oceania Europe Frankfurt (Germany) Rome (Italy)

Long Beach (USA)

Middle East Al Khobar

China Shanghai Beijing Hong Kong

Long Beach Al Khobar

Subsidary Company J&M Steel Solutions Company Limited (Myanmar) PT. Enercon (Indonesia)

6

Project Name

Power generation by waste heat recovery in cement

industry

Project Participants

JFE Engineering Corporation PT Semen Indonesia*1

Total Investment 44 Million US$*2

Project Period July 2014～August 2016

Site Tuban Plant, East Jawa

Power Generation 28MW

GHG Reduction 122,000t-CO2/y

Tuban Plant

Tuban Plant *1: The biggest Cement Company in Indonesia *2: US$1=JPY120

Project Information

7

Cement Production Process

Hot Exhaust

Gas

350ºC

400ºC

Hot Exhaust

Gas

GHG Reduction

8

電力

Net Electricity Generation

165,126MWh

GHG Reduction 122,000tCO2/y

＝165,126MWh/y *0.741tCO2e/MWh

Grid Power

Self-Consumption 21,024MWh

SP･AQC Boiler

Stack EP

Raw Mill

Suspension Preheater

Rotary Kiln Clinker Cooler

EP Stack

Coal-fired Power Plant

SP Boiler AQC Boiler

Turbine Generator

Hot Exhaust Gas

Cement Production Process

Steam Steam

9

Indonesian Government

JCM Joint Committee

JFE Engineering Corporation

PT Semen Indonesia

International Consortium

Finance (up to the half)

at least half of JCM credits issued

JCM Model Project Scheme

Japanese Government Ministry of the Environment

Project Schedule

10

FY2013 FY2014 FY2015 FY2016

Feasibility Study

Submit Proposed Methodology

Apply for Finance

Project Execution

Develop PDD

Validation

Monitoring

Registration

Verification

Issuance

Approved in May

Approved in July

Expected to complete in August

October 2016~March 2021

Expected to complete in October

JCM Model Project Advantage

11 11

Reduce Initial Investment

Employ High and Reliable Technology →Energy Save = Cost Reduction

Initial Invest ment

Low Price Low

Quality

Initial Invest ment

JCM Financing

Reduce

JCM Model Project Challenge

12 12

How to monitor power consumption efficiently?

How could we execute project successfully as consortium?

Japanese Government Ministry of the Environment

Indonesian Government

JFE Engineering Corporation

PT Semen Indonesia

Governments

Consortium

Cement Production: 22.5Mt/y Power Generation: 57MW GHG Reduction: 250,000t-CO2/y

Vietnam

Future Market

13

Cement Production: 45.0Mt/y Power Generation: 112.5MW GHG Reduction: 710,000t-CO2/y

Indonesia

Cement Production: 45.0Mt/y Power Generation: 112.5MW GHG Reduction: 490,000t-CO2/y

Cement Production: 20.3Mt/y Power Generation: 50MW GHG Reduction: 270,000t-CO2/y

Malaysia

Thailand

14

Thank you for your kind attention!