Cogeneration Project - Benefits (Part 2)

PERFORMANCE ENHANCEMENT
1.A well-designed and operated cogeneration plant will always provide better energy efficiency than conventional plant, leading to both energy and cost savings. With the implementation of the Cogen Project, the total energy efficiency will be increased from 63.9% to 82.7%. This is due to the fact that exhaust gas that is readily available from the gas turbines is used to heat up the boiler feed water to generate the high pressure steam

2.In addition to the direct cost savings, cogeneration also yields significant environmental benefits through using fossil fuels more efficiently. In particular, it is a highly effective means of reducing carbon dioxide (CO2) and sulphur dioxide (SO2) emissions. Oxides of nitrogen (NOx) are also generally reduced by the introduction of modern combustion system. Based on the analysis, approximately half million ton per year of CO2 and more than one thousand ton per year of NOx and SOx will be reduced by the implementation of the Cogen Project.

3.The fact that all five (5) generators running at partial load and providing about 40% of spinning reserve, has increased the availability of cogen power supply to 99.76% which is above the actual reliability of the TNB power supply to the refinery in year 2005.

4.A single fuel is used to generate steam and electricity, so cost savings are dependent on the price-differential between the primary energy fuel and the bought-in electricity that the cogeneration has displaced. Based on the Single Complex Economic Model, it is expected that an energy cost reduction in the range of RM XX million per annum will be achieved upon operating the cogeneration plant.