CN-CF-Meishan CDQ Project

dropped

Failure

The objective of the Meishan Coke Dry Quenching Project for China is to reduce Carbon Dioxide (C02) emissions by displacing electricity consumption at a large iron and steel company compared with the baseline scenario - Coke Wet Quenching (CWQ), and purchase of coal-fired electricity from the grid by installing energy recovery facilities with the leverage of a Carbon Finance transaction. There are two components to the project. The first component is the phase I and II construction and operation of Coke Dry Quenching (CDQ) units and subsequent electricity generation that will result in Certified Emission Reductions (CERs). The CERs will be achieved through recovery of the waste heat of hot coke from coke ovens by introducing advanced CDQ technology replacing the existing CWQ process. The installation of the first CDQ unit in Phase I is associated with the replacement of two of the three existing coke ovens and the associated CWQ unit which are outdated and do not meet recommended Chinese sector cleaner production criteria. The first CDQ unit and its back-up CWQ are expected to become operational when the first two new coke ovens in the Overall Improvement Plan begin production in March 2008. After the Phase I CDQ unit is operational, Meishan plans to construct a second CDQ unit as part of a planned expansion of production capacity by 2010. The production capacity and technical specifications for the CDQ unit in Phase II are identical to those in Phase I. The second component is the CERs purchase. The World Bank managed Spanish Carbon Fund (SCF) will finance the purchase of emission reduction credits resulting from the electricity supply derived from the project to the commercial electricity grid. The expected total CERs produced from this project is estimated to be 1.87 million tons of CO2 equivalents Tons of carbon dioxide equivalents (tCOze) over ten years (February 2008 - January 2018). The purchase will be a performance-based contract under which payments are triggered by successful verification of the reduction of Greenhouse Gas (GHG) emissions by an accredited Designated Operational Entity (DOE) under the rules of the Kyoto Protocol. The quantity of CERs to be contracted, the length of time over which the purchase will be made, and the price paid will be agreed between the World Bank, on behalf of the SCF, and the project sponsor during Emission Reduction Purchase Agreement (ERPA) negotiations.

FY17 - Industry, Trade and Services

World Bank Group

Project

Power Generation (CCGT), Steel, Metal, Commercial, Government