International Copper Association

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International Copper Association

Sustainable Energy, CDM and copper

CarbonExpo03 May 07

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Programme

Introduction H de KeulenaerCopper’s Carbon Roadmap H de KeulenaerCurrent projects

India H de KeulenaerLatin America G GarciaChina S Hopper

Summation A MarcuQ&A M MainConclusions V Perez

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Our Carbon Team

Name Role E-mail

Hans De Keulenaer Global [email protected]

Glycon Garcia L.Am [email protected]

Sam Hopper China [email protected]

Wilson Jin China [email protected]

Mayur Karmarkar India [email protected]

Steven Sim SEA [email protected]

Roman Targosz JI [email protected]

Sergio Ferreira Global [email protected]

Marcela Main Global [email protected]

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Leading organization for promoting copper worldwide• Developing new markets; defending mature markets

• Introducting new technology; improving existing technologies

40 member companies across copper value chain

$76M operating budget (including co-funding)

Professional service organization

• Integrated global industry platform

• Knowledge-based

• Market-focused

• Impact-oriented

• Member-driven

INTERNATIONAL COPPER ASSOCIATION

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Vision• Maximizing copper’s recognized value and contribution to

sustainable supply and use of electricity

Strategy• Support regulators in formulation and enforcement

of favorable regulations• Work with OEMs to accelerate introduction and adoption

of new technologies• Communicate with end-users on value of those solutions• Collaborate with sustainable energy advocates on market

development activities• Cooperate with private partnerships to drive bottom-up

market transformation

ICA’S Sustainable Energy Program

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1 MW turbine• Using 2 t copper• Saving 50 GWh and

35 kt CO2

3,600 Premium 11 kW motors

• Using 9 t copper• Saving 90 GWh

and 63 kt CO2

250 kW PV cells• Using 1 t copper• Saving 5 GWh and 3.5

kt CO2

150 amorphous 1.6 MW transformers• Using 100 t copper• Saving 85 GWh

and 60 kt CO2

VALUE OF SUSTAINABILITY$1M investment in sustainability =

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Carbon Strategy for Copper

Strong link between copper use and energy sustainability, e.g.

High efficiency motor systems, high efficiency power distribution

• 20-30% more copper means 20-30% reduced emissions

Wind power, photovoltaics• 5-10 times more copper intensive compared to conventional

power generation

Further opportunities in industrial process heat, building energy management, …

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Carbon Strategy for Copper

A few potentialsElectricity distribution networks

• Global loss: 1,279 TWh/year; 30-50% improvement potential• Saving 250 – 375 million tonne CO2e emissions / year• E.g. upgrading 1000 transformers to high efficiency produces

5,000 CER’s per year

Motor systems• Consume 1,500 – 2,200 TWh/year; 30% improvement

potential• 900 – 1,400 million tonne CO2e emission / year• E.g. upgrading 7 MW of motor capacity to high efficiency

produces 5,000 CER’s per year

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Carbon Projects considered

Component-based:Improve efficiency of rural transformersImprove efficiency of industrial motors

Systems-oriented:Reduce energy intensity of industrial motor system

• Less kWh per liter water pumped, or per m3 compressed air

Reduce energy intensity of industrial site• Less kWh per unit production

High efficiency street lightingBuilding energy management

Introducing new technology:High efficiency electrical process heatSmall-scale distributed generation

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Priorities

Technology Baseline Opportunity Additionality Project proponents

Electricity distribution

Motor systems Street lighting Small-scale generation

Electric process heat

Building energy management

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Approach

Small-scale projectsSimplified methodology

Maximum 60 GWh/year for energy efficiency• (for electricity, 60 GWh ~ 42 kt CO2e)

Programmatic CDMAvoid limitations of small-scale CDM projects?

Possibility to operate in more than 1 country?

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Mayur Karmarkar

CarbonExpo

Cologne – May 2007

Programmatic CDMEnergy-Efficient Transformers

Energy Efficiency in India

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India CDM Activity

Project objective Developing a market mechanism for improving penetration of energy efficient distribution transformers (Programmatic CDM project)

PDD Partners Central Electricity AuthorityBureau of Energy EfficiencyRural Electrification CorporationInternational Copper Promotion Council (India)Hitachi Metals Ltd.

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India CDM Activity

CDM project beneficiariesPower distribution utilities in India (Private & Provincial Government owned Public utilities)Power sector financers (Federal Government)

Aggregated potential 300 Million kWh per year i.e. 261,000 Tons of CO2 per year.

(Assumption – 100% country penetration of energy efficient distribution transformers)

StatusUnder PDD development stage

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Glycon Garcia

CarbonExpo


Business CaseCDM for Efficient Electrical Motors

Energy Efficiency in Chile

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CDM Potential

Electrical motors consume about 50% of the electrical energy in Chile app.: 22.75 TWh/yr.

If we introduce efficient electrical motors (new and replacement) and VSD (Variable Speed Drives), it is possible to reduce the electrical energy consumption by: 1,578.9 GWh/year.

That means app.: 897,517 TCO2e/year.

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Project Partners

ICA: Latin-American Sponsor.National Program of Energy Efficiency (N.P.E.E.): Chilean Sponsor.WEG: Motors and VSDs manufacturer, financing new equipment, recycling old motors.Industry: Currently ICA’s Chile (Procobre) has the commitment from the Chilean mining sector to support this program.

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Replacement Program of Electrical Motors

LoadStandard MotorLine

Premium Motor

Load

LineVariable Speed Drives

Standard Motor

Recycling

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CDM Project Activities 2007

Develop a small scale project (savings < 15 GWh/yr).

Use the E.E. simplified baseline and monitoring methodology.

Change about 70 motors between 5 HP and 500 HP

Use high efficiency motors and VSDs.

Savings 15 GWh per year (US$1,000,000).

Reductions 9,000 TCO2e per year.

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Next Steps (2008-2010)

Develop a Large Scale CDM Project:

Proposal for a methodology for a Large Scale CDM Project (ends of 2007)

Define program of activities (2008-2010)

Engage different economical and industrial sectors..

For Latin America

Identify potential partners/co-founders, beyond WEG and ICA who are willing to develop and implement E.E. motors in Latin America.

Replicate the project experience for all potential countries.

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Sam Hopper

CarbonExpo


CDM for Industrial Energy Efficiency

Energy Efficiency in China

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Developing Latent Capacity of CDM in Energy Engineering

Based on the 11th Five-Year Plan:

1. Regional Cogeneration:Cogeneration will increase by 40 million watt

Annual Energy Conservation: 35 Mtce

Emission reduction about 90million tons CO2e/year

2. Industry waste gas recyclingBest practices in iron & steel enterprises are expected to contribute annual savings of 2.66 Mtce

15 million tons CO2e/year through the use of residual heat in cement manufacturing

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Developing Latent Capacity of CDM in Energy Engineering (cont’d)

3. Energy-efficient motor systemsHigh efficiency motors, variable-speed drives and auto-control system technology increase operation efficiency 1% or 20 billion kWh per year

Emission reduction about 15 million tons CO2e/year

4. Structural energy-conservation engineering50% energy savings in residential and public buildings

Saving 50 Mtce/year

Equivalent to about 130 million tons CO2e/year

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Developing Latent Capacity of CDM in Energy Engineering (cont’d)

5. Green Lights ProgramEnergy saving green light systems in public facilities and residential buildings

Emission reduction about 23 million tons CO2e/year

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Project schedule

When What Who Comment

4Q06 set up CDM work group ICA　Tsinghua University

China end use energy efficiency project

consultant ( CDM methodology)

consultant ( CDM methodology & business)

1Q07 seek the project and contact with the developer in industry waste gas generation & motor efficiency area

China copper smelters / cement industry to help the developer to do the PIN & PDD

ICA China & consultants

2Q07 research on energy efficiency project ( including methodology on motor & transformer efficiency area)

work with consultants try to overcome the barriers of energy efficiency CDM projects

ICA China /consultants / other orgs.

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The Barriers for Developing Energy Efficiency Projects with CDM

1. Few CDM methodologies on energy efficiency projects available, for example, cogeneration, industries conservation rebuilding project.

2. CERs from energy efficiency projects vary with production

3. Compared to other energy projects, efficiency projects tend to be smaller scale

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CDM for Street Lighting

Energy Efficiency in China

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Project Description

Location:Ningbo, China: Population 5.57 million

Promotor:NSLAD: Ningbo Street Lighting Administration Division

Electricity Consumption by Street Lighting 40,070 MWh/year (2006)

Street Lighting can save electricity by approximately 30-40%

Reduce GHG emissions by 13,920 tCO2/year.

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Four main blocks of activity1. Pilot demonstration project

2. Large-scale project through ESCO financing (based on successful pilot project)

3. Financing through CDM (for large-scale project)

4. Dissemination to other municipalities

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Implementation

The technology we’re going to use to retrofit with EE street lighting in Ningbo is called “tapped ballast” or “multi-tap ballast”.

Multi-Tap Ballast: A ballast with tapped leads (wires) on the primary side, which enables the ballast to function on more than one supply voltage.

It is reliable and cost-effective compared with other dimming technologies like electronic ballasts.

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Approach

1. The project will finance installation of EE street lighting equipment worth €40,000

2. Large-scale EE street lighting tender to ESCOs estimated at a few hundred thousands euros

3. Baseline methodology and the complete CDM documentation package will be produced

4. More than 100 municipality officials and engineers are expected to benefit from training workshops and dissemination seminars

5. Guidelines for financing EE street lighting projects through ESCO will be disseminated through municipalities in China.

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Expected impact

1. Demonstrate the technical and economic feasibility of EE street lighting through ESCO financing

2. Street lighting represents about 3 - 4% of China’s electricity consumption, the replication potential for China (Asia) is very large

3. Since nearly 67% of China’s energy needs are met by coal, the environmental benefits through EE street lighting are very high

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Andrei Marcu

CarbonExpo


Energy Efficiency – a business opportunity within the CDM

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CarbonExpo


Q&A

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CarbonExpo


Conclusion

Documents

International Copper Association