Award of an on-site cogeneration project in Thailand and acceptance as a model project using Joint Crediting Mechanism in FY2015

Posted on 15 December 2016

NS-OG Energy Solutions (Thailand) Ltd. (hereinafter, “NSET”), a joint venture company between Nippon Steel & Sumikin Engineering Co., Ltd. (Representative Director and President: Shinichi Fujiwara; Head Office: Shinagawa-ku, Tokyo; hereinafter, “NSENGI”) and Osaka Gas Singapore Pte. Ltd. (CEO: Tetsuji Yoneda; hereinafter, “OGS”), a subsidiary of Osaka Gas Co., Ltd. (Representative Director and President: Takehiro Honjo; Head Office: Chuo-ku, Osaka City; hereinafter, “OG”) received an order for an on-site cogeneration project* for Thai Honda Manufacturing Co., Ltd. (hereinafter, “THM”), a Honda Group subsidiary manufacturing
motorcycles in Thailand. NSET is owned 70% by NSENGI and 30% by OGS.
The awarded project for highly efficient gas engine cogeneration facility and chilled water supply facility  (hereinafter,  “energy  supply  facility”)  was  proposed  to  THM  based  on  the  cogeneration operating know-how accumulated over the years by NSENGI and OG. In developing this on-site cogeneration  project,  THM  cooperated  with  NSENGI  and  OG  to  summarize  the  energy  usage requirements  and  review  the  heat  utilization  processes  in  its  motorcycle  plants  in  order  to effectively  use  waste  hot  water  from  gas  engine.  Optimizing  both  energy  supply  and  demand through  the  joint  review  of  energy  usage  in  THM’s  motorcycle  plants  between  THM  and  NSET enabled a highly efficient energy system to be developed.
In this project, NSENGI undertakes the overall construction work including design, procurement, installation,  and  operational  instruction.  NSET,  meanwhile,  will  own  the  energy  supply  facility introduced on the premises of the THM factory, undertake the operation and maintenance for 15 years,  and  provide  THM  with  electricity,  steam,  hot  water,  and  chilled  water  necessary  for  the operation of the factory. By utilizing energy in multiple ways, the project will reduce the primary energy and the energy cost at THM. The project will also stabilize the factory’s power source by introducing on-site power production by cogeneration.
In the meantime, by utilizing Japan’s leading low-carbon technologies to reduce CO2 emissions, this project is accepted as a model project of the Ministry of the Environment (JAPAN) aiming to obtain credit  under  the  Joint  Crediting  Mechanism,  a  bilateral  credit  system,  (hereinafter,  “JCM”)  in FY2015. This project is expected to result in a reduction of about 100,000 tons of CO2 emissions over 15 years, contributing to Japan’s CO2 emissions reduction target by using JCM.

NSENGI and OG will continue contributing to clients’ efforts toward the realization of a low-carbon society and expansion of business in Thailand by providing environmentally friendly and economically feasible energy engineering solutions by utilizing their abundant experience in construction, operation, and maintenance of such fields.
* A project providing operation and maintenance, in addition to cogeneration facility engineering.
[Outline of the on-site cogeneration project to THM]
○ Gas engine cogeneration facility

● Generating output: 7,000 kW
● Hot water supply capacity: 2,000 kW
● Steam supply capacity: 4 t/h
●Chilled water supply capacity: 1,400 RT
● Expected CO2 reductions: 7,000 t-CO2/year
● Business starts in February 2018 (planned)

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