2.1.1.2. Fuel Consumption Baseline

The fuel consumption baseline started by analyzing the possibilities of cogeneration in the representative Company A (Section 2.1.1.1), which uses heat (produced by burning diesel) for its manufacturing process. The fuel consumption of this company served as the basis to start filtering

the data provided by the ARCH. The company uses a typical small boiler (186 kWth) that produces saturated steam at 140–150 ◦C, working ~6 h/day, 5 days/week, and employing up to 7570 L/month (i.e., 90,840 L/year) of diesel. A preliminary computation (following works of [43,44,47] and energy balances) showed that, if the company was interested in adopting cogeneration, the size of the cogeneration plant would be close to 300 kWel. This cogeneration unit could operate, for instance, on a diesel or a gas engine (depending on the fuel available) and use the waste heat for producing the steam for the process (in a HRSG). However, according to a study conducted in the industrial sector in Mexico (with weather conditions somehow similar to those in Ecuador), the projects on cogeneration that o ffer better prospective, from an economic viewpoint, are those larger than 500 kWel [72]. Therefore, the minimum capacity of the cogeneration plants in the Ecuadorian industry, in all cases and at this level of the study, should be 500 kWel, which corresponds to a cogeneration plant that demands ~90,800 <sup>L</sup>/year of diesel (or any diesel equivalent fuel) Consequently, the fuel consumption data filtering process started by considering a baseline of diesel or fuel oil consumption of 90,800 <sup>L</sup>/year (76.19 t/year).

The information on fossil fuel consumption provided by the ARCH included data on type of fuel, amount, company's name, location and information on the main products of the company. This information was used to identify the location of each industrial plant. The types of fuels consumed in the country are as follows: fuel oil, diesel fuel (for both industry and transportation), gasoline (both regular and premium), liquefied petroleum gas (LPG), and NG in a smaller amount (all fuels were converted to diesel equivalent fuel). The initial list included ~500,000 companies and institutions. An initial filtering process removed from the list companies that a) reported LPG consumption, since in the country LPG is not used for industrial processes, except some hotels, hospitals, and shopping malls that have centralized LPG supply in relatively small amounts, and b) companies that sell diesel and gasoline for transportation (i.e., gas stations). The resulting list was filtered again by removing institutions that reported large amounts of diesel consumption for transportation only (e.g., municipal governments; ministries from the Ecuadorian government; and civil engineering companies that use diesel for transport/operation of heavy machinery for the construction of roads, bridges, and large buildings in the country). After a quantitative analysis, similar to that conducted for company A, it was found that the cogeneration capacity in companies consuming <151,400 <sup>L</sup>/year of fuel-oil or diesel will be <500 kWel. Thus, the final fuel consumption baseline for selecting the companies where cogeneration could potentially be adopted was 151,400 <sup>L</sup>/year of diesel and/or fuel oil (both with approximately similar high heating value—HHV). Therefore, the list was reduced to ~1000 companies.

#### 2.1.1.3. Final List of Industrial Companies That Could Adopt Cogeneration

The resulting lists (after filtering the ARCONEL and the ARCH data) were put together to prepare a final list of industrial companies (including hotels and hospitals) at a national level. Although the majority of the companies from the filtered ARCH list were also present in the filtered ARCONEL list, some companies were present in one list only since they reported high electricity consumption but low fuel consumption (e.g., plastics processing and ice making companies) and vice versa (e.g., fishing companies). After a case by case analysis, the final list was comprised of 555 companies (See Figure 4). All the 555 companies from the list, except 2 (from the oil palm industry, which are located in the Amazonian region), are located in the coast (~57%) and in the Andean highlands (~43%) regions. Among this list, there were sixteen companies working on shrimp growing/processing and eight ice making plants. These companies reported both high electricity and diesel consumption, but the chances of cogeneration were apparently negligible, since it was identified that the fuels were used for water pumping using internal combustion (diesel) engines in places where no electricity grids were available for shrimp pools operation and/or for land transport (using trucks). Thus, we decided to keep these companies in the final list to confirm the possibilities of cogeneration after visiting some of those plants.

**Figure 4.** Flow diagram showing the selection of the companies where cogeneration is proposed.

#### 2.1.2. Classification of Companies by Clusters and Validation of Data

The 555 companies in the final list were classified by clusters, which helped to organize visits to confirm the energy consumption data and to identify and record the corresponding industrial processes, including the identification of hot/cold fluids and their characteristics. The companies were grouped into twelve categories or clusters of industries, following the International Standard Industrial Classification of All Economic Activities (ISIC) [73,74]. Airports, shopping malls, and oil refineries were included in the cluster "others". Table 3 shows the list of clusters and the number of companies in each cluster. The information provided by the ARCONEL and the ARCH was validated by visiting 162 companies (~30% of the total), as detailed in Table 3. The selection of the companies to visit considered the amount of companies per cluster, the sizes, location, and the types of manufacturing processes to guarantee that all types of industries were visited. Interview survey formats (asking about energy consumption, types and amounts of fuels, industrial process, types and conditions of industrial fluids, if cogeneration has been adopted in the plant and the corresponding conditions, and other aspects to determine cogeneration potential) were used to collect the information provided by the industrial companies.


**Table 3.** Classification of industrial companies into clusters, types of industries in each cluster, amount of industrial plants visited, and types of predominant cold/hot fluids identified.

\* Three airports were included in the study: Guayaquil, Quito, and Cuenca. The rest of airports in the country operate only sporadically and are not candidates for cogeneration. \*\* The three main oil refineries in the country [6] were included. \*\*\* Air conditioning.

#### 2.1.3. Selection of Cogeneration Technologies

The following considerations were made for selecting the cogeneration technology that fits into the industrial plants' requirements:


#### 2.1.4. Computation of the Potential of Cogeneration of Ecuador

The potential of cogeneration of Ecuador was determined in two steps. First, the sum of the potential of cogeneration of all industries by each cluster was conducted. Then, the potential of each cluster was added to obtain the potential at a national level. Regarding cogeneration sizing at the industry level, the computations were first conducted for the industrial plants that were visited (see Section 2.1.2), and computations were carried out for the rest of the plants, using the information on the fuels and electricity consumption, as well as its location, working conditions, and size in a case by case basis. The main steps for computing the potential of cogeneration of a specific company were as follows (see Appendix B for equations used):




\* Single effect chillers are more convenient for diesel (and gas) engines [71].

#### 2.1.5. Assessment of Impacts of Cogeneration in Ecuador
