LIQUID CARBON DIOXIDE (LCD)

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- COVER SHEET -

Number: F-2

Title: LIQUID CARBON DIOXIDE (LCD) BLOWN FOAM

Application: Conversion from the use of CFC-11 to Liquid Carbon Dioxide (LCD) in the manufacture of flexible PU foam
(slabstock)

Technical
Clearance: Mike Jeffs
OORG Foams Sector Advisor
Ozone Operations Resource Group (OORG)

Clearance Date: April 1997 [This template is provisional and will be OORG-reviewed again in one year]

Source: Montreal Protocol Unit

Global Environment Division
Environment Department
World Bank
1818 H St. NW
Washington, D.C. 20433
Tel: (202) 473-2897
Fax: (202) 522-3258

Software: Microsoft Word, Version 6.0a

___________________________________

TABLE OF CONTENTS

1. Introductory Overview
2. Generic Enterprise Baseline Information Checklist
3. Generic Template for Conversion
4. Generic Template for Incremental Operating Cost Calculation
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5. Generic Plant Layout Diagram (tentative, if obtainable)
1. INTRODUCTORY OVERVIEW

A. Background and Purpose of this Template

Montreal Protocol project design templates have been in use by the Fund Secretariat and the implementing agencies (UNDP, UNIDO and the World Bank) since early
1996 as a key resource in guiding technical decisions concerned with the selection of eligible technology options for various manufacturing production line activities,
configurations, equipment specifications and costs. As such, the templates have been useful to local enterprise managers, international and local technical consultants, agency
task managers, and local MP units alike by virtue of the fact that they provide a common framework and a measure of confidence to decision makers concerning the full array of
both explicit and implicit Montreal Protocol Multilateral Fund Executive Committee (EC) policy guidance on project eligibilities and grant financing allowances.

Project design templates have been employed both as conceptual blueprints for investment project preparation and planning as well as as checklists to guide the World
Bank’s Ozone Operations Resource Group (OORG) technical reviews and clearances prior to project funding consideration by the EC. The purpose of periodic revision of the
template is twofold: (1) to update and incorporate lessons learned to date in applying and using the template; and (2) to expand or revise the template as necessary in order to
incorporate these advances.

B. How to Use the Template

Technology Transfer

The template is set forth in a matrix layout within an outline format. The initial focus of the template (Section 1) is upon the key components which an enterprise must
undertake for a successful technology transfer, namely, (1) the acquisition of the technology from a qualified technology supplier, (2) implementation of the technology through
appropriate trials and validation testing at the plant site, (3) training of workers in the technology process, including safety elements, and (4) final commissioning and
certification of successful implementation of the technology transfer.

The actual requirements at any particular enterprise plant site will depend upon the existing baseline conditions. See the Generic Enterprise Baseline Checklist,
attached. Once the baseline conditions have been ascertained, the appropriate approach to acquiring the necessary technology and associated justification is determined. In each
case, a range of eligible costs has been estimated based upon experience to date with EC-approved projects of the same type. Note that the more technologically advanced and
equiped the enterprise is, the less costly technology acquisition is likely to be.

Equipment Specification

The second focus of the template (Section 2) identifies the various equipment components which need to be either retrofitted or replaced. The existing baseline
equipment specification and/or condition will determine whether it will need to be retrofitted or replaced. For example, any current high pressure metering systems can be
integrated into the LCD system, whereas low pressure equipment generally needs to be replaced.

Civil Works

The third focus of the template (Section 3) is the civil works, or plant facility and layout, such as power addition/relocation, an equipment platform and other local
works required to install and to connect the new equipment.
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ENTERPRISE
BASELINE INFORMATION
CHECKLIST

FOR CONVERSION FROM CFC-11 FOAM BLOWING

TO
LIQUID CARBON DIOXIDE (LCD)
IN
FLEXIBLE PU FOAM (SLABSTOCK)

1. BASELINE CHEMICAL CONSUMPTION AND UNIT PRODUCTION

1.1 BASELINE ANNUAL ODP CONSUMPTION

YEAR POLYOL ISOCYANATE CFC-11 MC REMARKS

YEAR 1 kg kg kg kg
YEAR 2 kg kg kg kg
YEAR 3 kg kg kg kg
LAST 12 MONTHS kg kg kg kg

(Take the highest value from the three eligible calculations (average of the last three years, last calendar year, or last 12 months)).

1.2 BASELINE ANNUAL UNIT PRODUCTION

YEAR UNITS REMARKS

YEAR 1
YEAR 2
YEAR 3
LAST 12 MONTHS

(Take the highest value from the three eligible calculations (average of the last three years, last calendar year, or last 12 months)).
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2. BASELINE EQUIPMENT

2.1 FOAM PRODUCTION UNIT

EXISTING EQUIPMENT SPECIFICATIONS

TYPE BRAND MODEL CAPACITY AGE OTHER INFORMATION
NAME NUMBER (YRS)

Notes:
- Choose from the following types:
- Maxfoam HP/LP
- Varimax HP/LP
- Conventional HP/LP
- Roundblock HP/LP
- Vertifoam HP/LP
- Provide the maximum capacity of the standard polyol.
- Indicate under “other information” what metering units are high pressure, if any.

2.2 METERING/STORAGE SYSTEM

CHEMICAL METERING STORAGE PUMP TANK OTHER

CAPACITY CAPACITY LOCATION LOCATION INFORMATION
POLYOL
TDI
CFC-11
MC
CATALYSTS
OTHERS

Notes:
- List all separate metering streams
- Indicate any buffer pumps, pressurized tanks, etc.
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3. PLANT LAYOUT

Provide a schematic plant layout that clearly identifies the relative position of all storage facilities, pumps, etc. to the foaming unit and any empty space that can be used for the
LCD metering and storage systems.
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LIQUID CARBON DIOXIDE (LCD)

FLEXIBLE FOAM PROJECT TEMPLATE
(F-2) Clearance Date: April 1997
Draft Date: May 1, 1997 1:32 PM

APPLICATION: Flexible Slabstock Polyurethane Foam (Continuous Process)

DESCRIPTION: Production unit consisting of one foam dispenser, with accessories.

1. TECHNOLOGY TRANSFER: The enterprise has to acquire the technical knowledge to apply non-CFC technology. This consists of four potential components:
1. Acquisition of actual technology;
2. Implementation of the technology on site through trials and validation testing;
3. Instruction of relevant personnel in process and safety;
4. Proof of successful implementation through commissioning/certification.

1.1 TECHNOLOGY ACQUISITION: To provide the enterprise with the required knowledge of the CFC free process.

ELIGIBLE APPLICABILITY/ ELIGIBLE

BASELINE OPTIONS DESCRIPTION JUSTIFICATION COST RANGE

None. License Formal license agreement with Only fees/royalties are involved.. Max. US$75,000
equipment supplier that includes Additional costs by the
technology transfer. enterprise.
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1.2 TRIALS AND TESTING: To establish the technology and the new equipment and process.

ELIGIBLE APPLICABILITY/ ELIGIBLE

BASELINE OPTIONS DESCRIPTION JUSTIFICATION COST RANGE

1. Description of the ability of 1. Conducted by the 1. Trials with in-house staff and 1. When confidentiality is a factor.
the enterprise to conduct enterprise. equipment. Up to US$ 5,000
laboratory scale or industrial per foam type.
scale trials. .
Up to US$ 5,000
2. Description of the product 2. Conducted by the 2. Trials overseen by vendor. 2. When vendor is to be responsible for
per foam type.
range that establishes the vendor(s). quality of chemicals/equipment.
number of trials.
Up to US$ 5,000
3. Conducted by 3. Outside expert(s) will oversee trials. 3. When inadequate vendor/in-house
per foam type.
outside expert(s). support.
Up to US$20,000
expert costs.

1.3 TRAINING: To instruct the enterprise staff on the process/safety aspects of the new technology.

ELIGIBLE APPLICABILITY/ ELIGIBLE

BASELINE OPTIONS DESCRIPTION JUSTIFICATION COST RANGE

1. Description of the in-house 1. Conducted by the 1. Training with in-house staff. 1. When confidentiality is a factor. Up to US$10,000 for
capability available with the enterprise. outside training of one
enterprise. person.

2. Conducted by the 2. Training overseen by vendor and may 2. When vendor is to be responsible for Included in the
equipment or the include training at the vendor's premises. quality of the chemicals and equipment. licensing costs.
chemical vendor.

3. Conducted by third 3. Outside expert(s) will oversee 3. When inadequate vendor/in-house Included in the expert
part experts. training. support. costs for trials.
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1.4 CERTIFICATION AND COMMISSIONING: To ascertain that the new technology is effective.

ELIGIBLE APPLICABILITY/ ELIGIBLE

BASELINE OPTIONS DESCRIPTION JUSTIFICATION COST RANGE

1. None 1. Conducted by the 1. Enterprise certifies and the 1. In case of in-house technology Included in cost of
enterprise. implementing agency confirms. transfer. LCD trials, testing, and
agency overhead costs..

2. Conducted by the 2. Enterprise certifies and the 2. In case vendor(s) support the
vendor(s). implementing agency confirms. technology implementation.

3. Conducted by 3. Outside expert(s) certifies and the 3. In case technology is supported by

outside expert(s). enterprise confirms. third party expert(s).
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2. EQUIPMENT: The enterprise has to retrofit/replace existing machinery or add new machinery if not suitable for applying the new technology. This consists of
four potential components:
2.1 Liquid Carbon Dioxide (LCD) System
2.2 LCD Storage and Handling System
2.3 High Pressure Metering

2.1 LIQUID CARBON DIOXIDE (LCD) SYSTEM

ELIGIBLE APPLICABILITY/ ELIGIBLE

BASELINE OPTIONS DESCRIPTION JUSTIFICATION COST RANGE
Retrofitting LCD metering, mixing and laydown Needed to inject and mix the LCD in the
None Up to US $ 250,000
device, including auxiliaries. other components and to assure proper
decompression prior to laydown.

2.2 LCD STORAGE AND HANDLING SYSTEM

ELIGIBLE APPLICABILITY/ ELIGIBLE

BASELINE OPTIONS DESCRIPTION JUSTIFICATION COST RANGE

None Bulk supply. Install refrigerated LCD tank and Large production levels. Two months Up to US $ 55,000
cryogenic unit. requirement to be stored. Lease is recommended.

2.3 HIGH PRESSURE METERING SYSTEM

ELIGIBLE APPLICABILITY/ ELIGIBLE

BASELINE OPTIONS DESCRIPTION JUSTIFICATION COST RANGE

1. Existing dispensers are high 1. Reattachment 1. Existing pumps are reattached to new 1. N.A. Included in 2.1.
pressure (>100 bar). mixing head.

2. Existing dispensers are low 2. Replacement 2. Replacement by high pressure 2. To assure proper cell structure to Up to US $80,000
pressure (<100 bar). dispensers of TDI and water stream. avoid destabilization.
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3. CIVIL WORKS

ELIGIBLE APPLICABILITY/ ELIGIBLE

BASELINE OPTIONS DESCRIPTION JUSTIFICATION COST RANGE

Not applicable. Installation of support To assure proper installation and Re-positioning of some equipment is Up to US $25,000
frame to allocate LCD connection. essential for LCD system operation.
system, connection of
utilities, etc..
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LCD TECHNOLOGY

INCREMENTAL OPERATING COSTS

1. METHOD OF CALCULATION

THE EXISTING, APPROVED, MC TEMPLATE HAS BEEN USED AS A REFERENCE FOR IDENTIFICATION OF THE
DIFFERENT COST ELEMENTS AND THEIR IMPACT ON THE IOC.

2. ELEMENTS TO BE INCLUDED IN THE CALCULATION

- PRICES USED ARE DDU, DELIVERED, EXCLUDING ANY APPLICABLE DUTIES AND TAXES

- CFC-11 TO BE REPLACED BY AN EQUIMOLAR AMOUNT OF CO2

- A DIFFERENT SURFACTANT IS REQUIRED TO ACHIEVE PROPER CELL STABILIZATION

- EXTRA ENERGY CONSUMPTION, RELATED TO THE REQUIRED COOLING OF THE CO2 AND THE USE OF HIGH
PRESSURE PUMPS IS REFLECTED

- ONLY THAT PART OF THE PRODUCTION THAT CURRENTLY USES CFC-11 WILL BE TAKEN AS BASELINE
PRODUCTION

- COSTS OF ADDITIONAL MAINTENANCE ARE ASSUMED TO BE 5% OF THE PERTINENT INCREMENTAL

EQUIPMENT LESS THE VALUE OF REPLACED EQUIPMENT

- INCREMENTAL EQUIPMENT THAT WILL BE RENTED, SUCH AS THE LCD STORAGE TANK, WILL BE
INCLUDED FOR THE ANNUAL RENT TO BE PAID

- INCREMENTAL YIELD LOSSES ARE TREATED IDENTICALLY TO THE APPROVED MC TEMPLATE

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3. ASSUMPTIONS (EXAMPLE TAKEN FROM LUCKY FOAM PROJECT, THAILAND)

ITEM PRICE US$ CONSUMPTION CONSUMPTION INFORMATION

BEFORE (/y) AFTER (/y) SOURCE
CFC-11 2,000/t 110 t - MARKET AVG.
CO2 700/t - 29 t RECIPIENT
SURFACTANT 11,000/t 1.5 t - RECIPIENT
SURFACTANT 14,000/t - 1.5 t RECIPIENT
ENERGY .10/kwh - 75,000 kwh POWER CO.
PRODUCTION TO BE 2,500 t 3,000 t 3,000 t RECIPIENT
RECONVERTED

3.1 OTHER PARAMETERS ASSUMED

ITEM VALUE INFORMATION SOURCE

INVESTMENT IN EQUIPMENT US$ 980,000 CANNON, RECIPIENT (VENTILATION)
CFC-11/CO2 RATIO 1.00/0.26 CANNON
INCREMENTAL YIELD LOSS/Y 3%/2%/1% MC TEMPLATE
CO2 STORAGE TANK RENTAL US$ 20,000 LOCAL GAS SUPPLIER
MAINTENANCE 5% OF INCREMENTAL INVESTMENT COST MC TEMPLATE

4. IOC CALCULATIONS (x 1,000 US$)

COST ITEM YEAR 1 YEAR 2 YEAR 3 YEAR 4 TOTAL

BASELINE:
CFC-11 220 220 220 220
SURFACTANT 16.5 16.5 16.5 16.5
TOTAL 236.5 236.5 236.5 236.5
POST PROJECT:
CO2 20.3 20.3 20.3 20.3
SURFACTANT 21 21 21 21
INCREMENTAL YIELD LOSS 225 150 75 -
INCREMENTAL ENERGY 15 15 15 15
INCREMENTAL MAINTENANCE 49 49 49 49
TANK RENTAL 20 20 20 20
TOTAL 350.3 275.3 200.3 125.3
IOC 113.8 38.8 (36.2) (111.2) 5.2
DISCOUNT FACTOR .91 .83 0.75 0.68
NET PRESENT VALUE (NPV) 104 32 (27) (75) 34
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