The owner of a small syngas production plant in China wants to reduce his energy costs, and a technology provider can supply a 15 MW heat exchanger to do this. The waste heat from the cooling process during syngas production is recovered and used to pre-heat the input steam. With the implementation of the heat exchangers, the energy input from fossil fuel in the system can be decreased by 450 TJ/year. Even with the reduction in energy costs, the payback time for the investment is very long. The project implementation is therefore facing an investment and financial barrier.
The technology provider, encountering difficulties in selling their equipment, contacts Tricorona. Tricorona evaluates the carbon finance potential of the project. Given the energy savings in the syngas production plant and the fuel type used, the project is estimated to generate around 65,000 CERs annually. This could potentially bring carbon finance about €400,000 per annum. The project is considered CDM eligible. With a carbon credits purchase agreement, guaranteeing an income stream to the plant owner, the expected payback time decreases. With the help of Tricorona, the technology provider secures the sale of the equipment.