IRPC, a Thailand-based petrochemical company, is allying with GE Energy and General Carbon to register a proposed cogeneration power plant at its petrochemical complex in Rayong province as a Clean Development Mechanism (CDM) project.
The CDM program is an international emissions-reduction initiative overseen by the United Nations.
IRPC has signed a memorandum of understanding (MOU) with GE and General Carbon to seek project approval from the board that oversees the CDM program.
IRPC plans to replace the petrochemical complex’s older fuel oil power plant with a new, 200MW, natural gas-fueled cogeneration plant. The project is planned to help improve the facility’s energy efficiency, reduce its greenhouse gas emissions and reduce air emissions in this industrial area.
The proposed cogeneration plant would be powered by six Frame 6B gas turbines supplied by GE Oil & Gas and would provide a cleaner source of power and steam for IRPC’s operations.
The new CHP plant is expected to enable IRPC to reduce its emissions by an estimated 400,000 tons of CO2 equivalents per year, making the project eligible for 400,000 “certified emissions reduction” credits (CERs) that could be sold in the global carbon marketplace.
Under the MOU, General Carbon plans to develop the project design document and manage the CDM process through to registration with the CDM’s executive board. General Carbon also will facilitate the monetization of the carbon credits for IRPC if the natural gas cogeneration plant is registered.
Pailin Chuchottaworn, CEO of IRPC, said: “We are excited to join with GE Energy and Global Carbon to explore the potential benefits of this ‘first of its kind’ carbon credit project for our new CHP power plant. We are proud because it shows that going green is good for business. If successful, the carbon credits will be a bonus for our initiative to reduce our carbon footprint.”
IRPC has been exploring the carbon credit opportunity with GE Energy and General Carbon since its initial consideration of the CHP project in 2007.
Established under the international Kyoto Protocol, CDM allows developing countries to offset their investments in cleaner energy projects by selling CERs from these projects to developed countries that exceed their emissions quota.
Kovit Kantapasara, country executive for Thailand and Indochina, GE Energy, said: “This is a significant CDM demonstration project for Thailand and the rest of the world. It also offers an important example of the numerous potential benefits involving gas-based cogeneration.”
Presently, IRPC’s existing fuel-oil power plant generates 48MW of power and IRPC still needs to buy an additional 100MW from the local grid to meet the total energy requirements of its Rayong petrochemical complex. In comparison, when completed, the new gas-fired cogeneration plant would have a capacity of 200MW, capable of supplying all of IRPC’s refinery requirements.