Day-3, Mr. GC Dattaroy, Ippai, Goa

1

The 14th Regulators & Policymakers Retreat1st – 4th August, 2013, Goa Marriott Resort & Spa, Goa

Title: Waste Heat Utilisation

Speaker: G C Datta Roy

2The 14th Regulators & Policymakers Retreat 1st – 4th August, 2013, Goa Marriott Resort & Spa, Goa

DESL-Contributing EE & RE Development Globally

Enabled energy saving of approx

200 MW in commercial buildings,

industries and municipal facilities

Designed and Engineered

over 500 MW of biomass

based power plants and

cogeneration

Designed and

engineered 22 MW solid

waste to energy plant

Due Diligence &

Project developmen

t for 250 MW of

hydropower

400,000 LPD solar water heating in industrial processes


Talking Points in Brief

• Context• Glimpses-global policy development• Few DESL case illustration• Drivers & barriers• Innovative barrier strategy


The Context Furnace video.mp4

“Although it can be tricky and expensive to harness, waste heat is getting increased focus as a source of power in both the U.S. and China, mostly because of the quantities of heat out there. A study conducted by Lawrence Berkeley National Labs estimated in 2005 that the U.S. alone has 100 gigawatts of untapped electrical capacity in the form of waste heat that annually could produce 742 terawatt hours of power. That's bigger than the solar fleet, which gets measured in megawatts.”

Will waste heat be bigger than solar-Michael Kanellos-Greentechsolar; Jan 24, 2009


Japan

“The Japanese Ministry of Economy, Trade, and Infrastructure (METI) has released its budget plan for the 2013 fiscal year. In it, METI outlines a 10.5 trillion yen, or over $124 million budget proposal to partially subsidize the purchase and installation of low-temperature waste heat recovery systems at various industrial plants around the country. Affected plants will be those that can reduce their energy consumption by at least 15 kiloliters of oil-equivalent. The amount of subsidy received will be dependent on the temperature of the waste heat recovered and be entirely dependent on interested plants and businesses completing the installations of such systems by the end of September 2013”.

Industrial Info Resources, Dec 27, 2012


USA


Policy Interventions-Illustrative ExamplesCountry Policies*

Canada Depreciation of WHRPG accelerated by 50%

Program ERSOP in Ontario: feed-in tariff of 70 €/MWh for the electricityproduced from waste heat, for projects selected through calls for tenders

USAProject to amend the federal law in order to allow 30% tax credit on WHRPGprojects

A dozen States have acknowledged that waste heat is a renewable energysourceCalifornia (2011): investment aid of 0,8€/W, up to 3 MW (DSM)

Japan Accelerated depreciation and soft loansInvestment aid up to 50%

Italy Extension of the scope of White certificates to include WHRPG, with a new scale in 2011:one certificate is now worth 60 €/MWhe )

Norway Investment aid up to 20% and tax exemption on the electricity produced and self used.

*Panorama of public policies supporting power generation from industrial waste heat-ADEME, Oct, 2012


India Scenario-DESL Case Studies


Kiln-Sponge Iron

Key financial ratios (Feasibility study)Investment-Rs 20 CrsProject tenure-10 yearsPower sale rate-Rs 3.34 to 3.51/kWhProject IRR -26.12%Equity IRR -37.79%Average Debt Service Coverage Ratio-2.09


Forging Furnace-MSME

SME Steel Furnace (under implementation)Savings of PNG-24800 SCM/YearFinancial savings-Rs 9.6 Lacs/YearInvestment-Rs 2.0 lacsSimple payback-2.5 months


Industrial BoilersBoiler FG WHU recovery

Brief summary of the project is as follows.

·Boiler capacity-5.6 TPH·Steam pressure-16 Kg/cm2 g·Exit flue gas temperature-210oC

Various design modifications such as replacement with a higher sized economiser, installation of APH, installation of low pressure water heater were studied. As per recommendation, the unit implemented the economiser solution and derived the following benefits established by carrying out a performance test.

·Exit flue gas temperature reduced from 210oC to 132oC·Gain in overall boiler thermal efficiency-8%·Coal saving-1270 TPY·Financial saving-Rs 45.7 lacks per year·Cost of additional economiser-Rs 25 lacs·Payback-< 6 months


India Scenario-High Potential-Very Low Penetration (DESL database-2012)

Sector Application PenetrationCement Preheating High

WHR STG system LowIntegrated steel GTG One demo project

Hot gas recuperators HighSponge iron Preheating Low

WHR STG system LowSteel furnaces Recuperation Low

Other metal furnaces LowGlass furnaces Recuperator Low

WHR STG system One CDM project VAM Low

Paper Hood PV system MediumSugar/Biomass power Bagasse/Fuel drying Low

Refineries FCCU recuperator High WHR STG system Not known

Boilers Economisers/APH High (Partial gain) Low Temperature Low


India Scenario-WHRPG System

About 70 projects overall against 900 in China*

India yet to promote specific policy for WHU-PAT is likely to be a potential

driver

*ADEME report


Drivers & Barriers-(Recent Analysis)

Drivers• Economics (Energy prices,

Energy cost indices, Energy availability & quality)

• OE (for MSME)/Peer (Large scale) pressure

• Compliance

Barriers• Low awareness-quantification

of opportunities (market overall & individual units)

• Technology-real & perceived risks

• Lack of warranty services-Sustaining initial gain

• Market uncertainty-impact on return

• Regulatory

Unlike in such cases, successful demos/pilots

do not seem to have made desired impact


Barrier Strategy• Assessment of the market opportunities

– Grades (High, medium & low temperatures)– Sectors – Technologies (Process, Power, VAM, ORC)

• Common strategy– Awareness & promotion– Policy development & deployment– Demo projects

• Need for strategy innovation


Proposed Strategy Innovation• WHR Alliance (Cluster, Sectoral, National)

Units/Clusters/

Sectors

Vendors

BEE/SDAs

Banks/FIsServiceproviders

Technical Institutes

OEM (MSME)


Conclusion• WHU-Next big thing in the EE domain• Overall market potential high but not yet quantified-need for

market assessment study• Penetration very low even in the relatively better identified

markets• Need for innovative strategy-WHRA proposed under the

USAID sponsored PACE-D project (Capturing the learning from the successful development of ‘Appliance Standard’ &‘Green Building’ markets in India)

• Process initiated in one of the MSME Furnace cluster • Successful implementation can catalyse faster development of

the WHU market


Thank YouDr. G. C. Datta Roy

Chief Executive OfficerDevelopment Environergy Services Ltd. (Formerly Dalkia Energy Services Ltd)

# 819, 8th Floor, Antriksh Bhawan 22, Kasturba Gandhi Marg, New Delhi - 110001

Tel-+91 11 4079 1107 Fax-+91 11 4079 1101Mob-+91 95829 40363 [email protected]

www.deslenergy.com

mailto:[email protected]

http://www.deslenergy.com/

Day-3, Mr. GC Dattaroy, Ippai, Goa

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