Caprolactam (C6H11NO) is an important raw material in the production of Nylon 6 which is used in various industries, given its special characteristics. It is very durable and can withstand high temperature well, yet still maintains excellent flexibility. It is used in many different high quality products such as in the textile industry for clothed and swimwear, canvas production, casting nets for deep-sea fishing, etc.

Thai Caprolactam Public Co., Ltd. (hereinafter “TCL”) is the first producer and distributor of caprolactam and ammonium sulphate in Thailand and Southeast Asian region and have operated since the actual caprolactam production had commenced in 1997. And TCL had conducted three production capacity expansions by December 2005. (the design capacity in December 2005: 111,860 tCaprolactam/yr (329[tCaprolactam /day]* 340 [day/yr]) same as the current situation) In TCL, nitrous oxide (N2O) is generated by side reaction of ammonia oxidation reaction of Hydroxylamine production unit, which is intermediate of caprolactam production. Ammonia oxidation section generates NO/NO2 gases by oxidize ammonia with oxygen at Ammonia Oxidation Reactor by precious catalyst gauze.

The aim of the project activity is to reduce N2O emission of the tail gas emitted from Ammonium Nitrite Preparation process 1 by installation of a DeN2O catalyst in TCL. Then, in TCL, NH3 Selective Catalytic Reduction (NH3-SCR) technology has been used to reduce NOx concentration in the tail gas emitted from Ammonium Nitrite Preparation process. SCR reduce around 95% of NOx emissions.

This technology is continued to be used, because of effluent gas compliance with local environmental regulations.

On the other hand, N2O is not a toxic substance and is not regulated in Thailand. Therefore, it has been released to atmosphere without any recovery or any specific treatment at the targeted facility of the TCL. TCL has no plan to implement N2O abatement under such situation if the proposed project would not be implemented as CDM. There is no economic incentive to recover and utilize or sell N2O as a product, technically and economically, except for CERs.

In addition, the project does not result that the amount of production would exceed the design capacity although the production has been and expected to be increased gradually. Therefore, without CERs, TCL will continue releasing N2O to the atmosphere under its normal operation (i.e., will continue the current practice) The project is to introduce catalytic DeN2O equipment at the tail point before release to the atmosphere. The technologies are provided by N.E. Chemcat (catalyst) and SUMITOMO METAL MINING ENGINEERING (engineering). It is expected that the equipment can decompose more than 85% of the N2O, which would be emitted otherwise. 2 In addition to reduce N2O emissions, the project transfers a clean technology which is not yet widely commercialized even in industrialized countries. It also includes the training course for operation of the DeN2O equipment and also for accurate monitoring. The local employment will be created through the direct/indirect economical effects through the project activity.

As for the contribution of sustainable development for local, host country, the N2O abatementechnology will be introduced to the project, which will be beneficial to further promote the application of the advanced technology, which is not yet widely commercialized even in the industrialized countries. Furthermore the implementation of the project activity includes the training course for accurate monitoring, which will provide the staffs of TCL with an opportunity to learnew technology and improve their skills.

Project participants: