Investigating the Role of Carbon Sales Earnings in the Economic Justification of Energy Optimization Projects in Shahid Hasheminejad and Fajr Jam Jet Refineries

In this paper, the potential of 10 proposed projects under the Clean Development Mechanism, their prioritization and future steps for registering selected projects at the United Nations Executive Board has been examined for Shahid Hasheminejad and Fajr Jam Iran refineries. For this purpose, the amount of greenhouse gas emissions from the combustion, process and runoff of the two refineries was initially estimated and calculated to identify the sources of the acute emissions. Then, according to the amount and distribution share of each equipment and processes, emission reduction methods are tailored to the sources of the publication. The possibility of developing these emission reduction methods under the Clean Development Mechanism (CDM) has been examined by examining parameters such as the availability of the approved methodology, the adaptation of the methodology to the conditions governing the project site, and the amount of emission reductions generated by the projects. Accordingly, at the first two refineries, 10 projects with approved methodology were first identified and prioritized, but due to the lack of sufficient information and therefore the lack of examination of technical feasibility of the project and the commencement of the project activities without considering the CDM issues, only five projects were able to register under the CDM. The results of economic analysis show that without CDM revenues, out of the five selected projects, the two projects are economically unjustified and are justifiable with the proceeds from the sale of emission reduction certificates (CERs); therefore, only three of the selected projects have a redundant and expandable role Under the CDM. Finally, the initial idea of the project was sent to the Environmental Protection Agency for three projects of the installation of an economizer in boilers in Khangiran refinery, installation of recycled boiler at the outlet of the Khangiran refinery and the installation of a recovery boiler at the turbine output of the refueling compressor gases at the Fajr Jam refinery. The results of economic analysis indicate that the internal rate of return on capital for the above projects is from 0.7%, 5.33% and 0.69% respectively, without the proceeds from the sale of certificates to 14.29, 11.98 and 23.3 respectively, 18 percent increase in certified earnings, which means that the feasibility of the above projects with economic CDM revenues.