JCM PROJECT : How Well Does the JCM Answers Private Sector Needs?”

JCM PROJECT : How Well Does the JCM Answers Private Sector Needs?”. Semen Indonesia case (30,6 MW WHRPG Tuban Plant - Indonesia, up to 122,000 ton CO2 is expected to reduce).

Scheme of JCM Project Japan - Indonesia

Private Sectors require  simpler,  more reliable, and faster scheme. 

JCM has pursued progressively some remarkable milestone regarding the settlement of term and conditions of JCM dissemination and implementation and always involve Private Sectors to: Develops/revises the rules, guidelines and methodologies,Registers projects, and Discusses the implementation of JCM.

 

Evidence and Indicative Responses of Private Sectors by following the JCM Scheme:

Private sectors have come to the same understanding and point of view regarding the JCM scheme --> Simpler.

Private Sectors become more eager and optimist in achieving the GHG reduction target --> Reliable

Due to Private Sectors involvement since the beginning by JCM, the number of project increases from time to time --> Faster

 

Tracking the process of the JCM, during one year, JCM success to bring JCM Scheme into action. We may conclude that the process is fairly fast.

MRV by Third Party Entity (TPE)

Regarding the TPE, Private Sectors still require some improvements and simplifications (should be simpler and lower price).  A number of  issues that should be adressed:

The MRV project performance of CO2 reduction will be done by TPE and the cost will be born by the project host along the MRV years, The TPE must be a verified and certified entity. At the end this cost will be supposedly become another cost to Private Sectors (indirectly). A “verified and certified” should not be “in complicated manner” à It will create additional cost, The number of TPE is limitied and no Indonesian entity registered so far, MRV cost is not included in project budget a part of the operational cost.

Step of JCM Project at Semen Indonesia case (30,6 MW WHRPG Tuban Plant - Indonesia, up to 122,000 ton CO2 is expected to reduce):

Indonesia JCM Secretariat and Related Ministries Visited PT Semen Indonesia.

Tuban - On June 25 June 2014, JCM Secretariat, Coordinating Ministry of Economic Affairs, and Ministry of Energy and Mineral Resources visit PT Semen Indonesia, which is located at Tuban, East Java. During the visit, discussion on the last status update of JCM projects in PT Semen Indonesia was conducted.

PT Semen Indonesia together with JFE Engineering, as its Japanese partner, is running a project called "Power generation by waste heat recovery in cement industry". It is a 526 billion rupiah project, which utilize waste heat that is produced by the factory's activity to be fed to a boiler and produce steam to generate the power generator.

PT Semen Indonesia is interested in this project because not only it is environmentally friendly and reduces green house gas emission, but also it increases the factory's energy efficiency. With waste heat recovery, PT Semen Indonesia can save up to 85% of its electricity bill. Moreover, each year up to 122,000 ton CO2 is expected to reduce.

Now, the project is in its design and procurement of main equipment. This project is expected to finish on December 2016 (RKA).

Semen Indonesia Build Power Plant worth IDR638 Billion (October 22, 2014) by JCM Project Scheme.

PT Semen Indonesia Tbk (SMGR) began a construction of the power plant by utilizing the exhaust gas (Waste Heat Recovery Power Generation / WHRPG) Tuban I - IV with a capacity of 30.6 MW. These WHRPG project is a collaboration between Semen Indonesia and JFE Engineering Japan. Projects with an investment of IDR 638 billion is conducted groundbreaking by President Director of Semen Indonesia, Dwi Soetjipto and in Tuban.

Ground Breaking of WHRPG Project

So an explanation of JCM PROJECT : How Well Does the JCM Answers Private Sector Needs?” and may be useful for the readers. 

Send regards for success.................