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Eden Jack 19 May 2011 Omnia Fertilizer Ltd Nitrous Oxide Reduction Project (UNFCCC Reg No. 0752) CDM Awareness Raising Workshop

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Page 1: Omnia Fertilizer Ltd Nitrous Oxide Reduction Project Omnia... · Omnia Fertilizer Ltd. Nitrous Oxide Reduction Project ... JV Nalco. Omnia Responsible Care Signatory. ... Slide 1

Eden Jack 19 May 2011

Omnia Fertilizer LtdNitrous Oxide Reduction Project

(UNFCCC Reg No. 0752)

CDM Awareness Raising Workshop

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Presentation Outline

• Introduction Omnia• Nitric Acid Plant• Project Evaluation• Project Execution• EnviNox• CDM Process• Summary

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Omnia Group

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Fertilizers

Bulk Fertilizers (eg)•

LAN

4:3:4 / 2:3:2•

Greensulph

Speciality Products (eg)•

CN (FBG Technology)

MgNO3

Liquid Fertilizer (eg)•

UAN

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Explosives /Chemicals

Ammonium Nitrate based explosives•

Detonators

Protea Chemicals•

Zetachem

JV Nalco

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Omnia

Responsible Care SignatoryISO 9001ISO14001

OSHAS 18001ISO 17025

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Omnia

Process of building New Facilities:•

Ammonia Logistics

Nitric Acid Plant•

Ammonium Nitrate

Solution•

Porous

Estimated cost R1.4bn•

Fertilizer and Explosives Market

Commissioning 2012

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2008

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Nitric Acid Plant

Ostwald Technology•

Built 1982

UHDE Process•

Dual Pressure Technology•

Low pressure NH3

Conversion•

High pressure Absorption

650 tpd, re-rated 750tpd, 100% acid

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Converter Primary Reactions

4 NH3

+ 5 O2

→ 4 NO + 6 H2

O

4 NH3

+ 3 O2

→ 2 N2

+ 6 H2

O

4 NH3

+ 4 O2

→ 2 N2

O + 6 H2

O

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Reactions Downstream of Converter

Oxidation of NO•

2NO + O2

2NO2

N2

O4

Absorption•

3NO2

+ H2

O 2HNO3

+ NO

N2

O4

+ H2

O HNO2

+ HNO3

3HNO2

HNO3

+ H2

O + 2NO

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Reactions Downstream-

Converter

2 NH3

+ 8 NO → 5 N2

O + 3 H2

O

4 NH3

+ 4 NO + 3 O2

→ 4 N2

O + 6 H2

O

Nitric Acid Plant Basis

Combustion of NH3, over Pt/Rh

catalyst •

NOx

94-96%•

N2O 4-6%

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Study

Kyoto Protocol•

Methodology AM0028 was completed 2005

GWP 310•

Specific to Selective Catalytic Reduction (SCR)

Feasibility 2005

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Basis for EnviNOx

Installation

Reduce Greenhouse Gas Emission (GHG)•

Legislation

South Africa non Annex 1 Country

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Project Evaluation•

UHDE technology•

Primary, Secondary or Tertiary

Primary Abatement

Secondary/Tertiary Abatement•

Capital cost

Catalyst Leased/ Own•

Efficiency Guarantees

Retrofit Design •

Installation Process

Plant Availability•

Approved Methodologies

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Tertiary Abatement (considerations)

Capital Cost•

Analyser

Delta-V•

Structure and Reactor

Catalyst•

Plant Availability

Lower Tail Gas Temperature

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Tertiary Abatement

Superior Product-

Guarantees•

Proven Technology

Does not hamper the process-

end of pipe design•

Retrofit design

CDM UNFCCC considerations

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Nitric Acid Plant Basis

Combustion of NH3, over Pt/Rh

catalyst •

NOx

94-96%

N2O 4-6%•

UHDE technology•

Primary, Secondary or Tertiary

Economics•

Social Responsibility

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Project Execution

Project initiated 2006•

UHDE

Omnia Project Department•

Emerson

Management (CDM)

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Project Boundary for N2O Destruction Facility at Omnia’s Nitric Acid Plant

heatexchanger

Ammonia

nitric acid

N20destruction

facility

Tail gas turbine

To atmosphere

Natural gas

Clean tail gas

tail gas

Process Water

coolingwater

AmmoniaOxidationReactor

Air

Ammonia Gas

Heat exchanger

Boiler

N2O2H2O

AmmoniaOxidationcatalyst

process gaswith N2O, NO2 & NOx

N2O destruction facility

Project Boundary

absorptiontower

Project Boundary For N2O Destruction Facility at Omnia’s Nitric Acid Plant Fig.2

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EnviNox Structure

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Empty Envinox Reactor

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Tail Gas Flow Measurement

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EnviNox

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EnviNox

EnviNox UnitNOx

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58Day

ppm

Nox inNox out

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EnviNox

EnviNox UnitN2O

0.0

200.0

400.0

600.0

800.0

1000.0

1200.0

1400.0

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58

Day

ppm

N2O InN2O Out

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EnviNox

EnviNox Efficiency

92.0

93.0

94.0

95.0

96.0

97.0

98.0

99.0

100.0

sep

nov jan

mar

may jul

sep

nov jan

mar

may jul

sep

nov jan

mar

Months 2008 - 2011

%

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Nitric Acid Plant Stack

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Process

Omnia Project•

Prior Consideration Form

Project Identification Note (PIN)•

Letter of Approval (LoA) South African DNA

Project Design Document•

Validation

Registered May 2007•

Plant commissioned February 2008

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CDM Process

Safety and training•

Completed a preliminary verification audit•

Successful Audit

400k t CER’s

delivery,

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CDM Process

Table 9: Estimated Ex-ante Emissions Reduction during the first 7-year crediting period (tCO2 e)

Year (1) Project Emissions Leakage Baseline Emissions Emissions Reduction

2008 32,797 0 512,188 479,391

2009 33,417 0 521,872 488,455

2010 53,284 0 512,188 458,904

2011 52,389 0 503,580 451,191

2012 33,417 0 521,872 488,455

2013 32,797 0 512,188 479,391

2014 54,292 0 521,872 467,580

Total 292,391 0 3,605,759 3,313,368

Notes:

(1) Year is defined as the time period between April 1 and March 31 of subsequent year

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CDM ProcessVerification

Reports

Number From To Audit CER's Issuance

1 26/02/2008 17/03/2008 Jul-08 26276 Mar-09

2 18/03/2008 08/07/2008 Jul-08 157285 Jan-09

3 09/07/2008 31/01/2009 Feb-09 321234 Sep-10

4 01/02/2009 31/05/2009 Nov-09 151795

5 01/06/2009 31/10/2009 Nov-09 169105

6 01/11/2009 31/05/2010 Aug-10 251999

7 01/06/2010 30/11/2010 Feb-11 204089

8 01/12/2010 31/04/2011 Jun-11 191359

Total 1473142

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CDM Process

Verification 1 –

3•

Installation didn’t match Methodology

Installation did not match PDD•

Preliminary audit did not pick up either

DOE’s

were pedantic about process•

Monitoring report and plan were sophisticated and complex

Reports generated from the system•

Communication and back ups

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CDM Process

Unable to change PDD•

Unable to change installation retrofit

Process -

Request for Deviation from UNFCCC•

Process took approximately 6 months

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CDM Process

Verification 4 –

6•

New DOE appointed

New Criteria•

New criteria from EB

Request for deviation does not apply•

Re-submit Request for Revision

Change Hardware•

Change PDD

Change Monitoring Report and Monitoring Plan•

Revision completed 14 months April 2011

Verification 4 Completeness check

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CDM Process

Verification 7 onward•

Template change for Monitoring Report

EB requirements change•

DOE requirements change

Process change and focus

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Summary

Achieved Greenhouse Gas Reduction•

Stack Emissions clear

Omnia Social Responsibility/ Responsible Care

Kyoto and Post 2012•

CDM and UNFCCC

CER prices and market•

Methodology

DOE requirements•

Africa not capitalized on the framework effectively

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Concerns /Comments

Thank Youwww.omnia.co.za

[email protected]