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PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03
CDM – Executive Board
1
CLEAN DEVELOPMENT MECHANISM
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD)
Version 03 - in effect as of: 22 December 2006
CONTENTS
A. General description of the small scale project activity
B. Application of a baseline and monitoring methodology
C. Duration of the project activity / crediting period
D. Environmental impacts
E. Stakeholders’ comments
Annexes
Annex 1: Contact information on participants in the proposed small scale project activity
Annex 2: Information regarding public funding
Annex 3: Baseline information
Annex 4: Monitoring Information
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SECTION A. General description of small-scale project activity
A.1 Title of the small-scale project activity:
>>
Waste heat recovery and utilization for power generation at DG Cement Khairpur Plant
Version 01
Date: 13/2/2012
A.2. Description of the small-scale project activity:
>>
DG Khan Cement Company Limited (DGKCC, hereafter referred to as DG Cement) is a leading
manufacturer of cement in Pakistan. It is part of Nishat Group which ranks among top five business
houses of Pakistan. DG Cement has two cement manufacturing plants, one in District Dera Ghazi Khan
and other at Khairpur, District Chakwal.
The waste heat recovery equipment will be installed on the 6700 tonnes per day (TPD) kiln of Khairpur
Plant. The kiln started its operation in March 2007.
At present, almost all the waste heat from the clinker production process at the DG Cement Khairpur
Plant is vented to atmosphere; only a small portion of waste heat is recovered for pre-heating of raw
inputs and drying of coal. DG Cement has a 36 MW grid electricity import connection. The cement
factory also has its own captive power plant having total installed capacity of 33 MW (it consists of two
Wartsila 18V50DF engines each having a capacity of 16.5 MW). These gen-sets were commissioned in
July 2007 and are designed to use Natural Gas (NG) as the main fuel; diesel is used as the pilot fuel
whereas Heavy Fuel Oil (HFO) is used as back up fuel. Power demand of the cement plant is met both by
the grid as well as an existing captive power plant.
The proposed project activity involves installation of Kalina cycle based waste heat recovery system
which includes three Heat Recovery Vapour Generators (HRVGs) having total capacity of 83tph (tonnes
per hour) and one vapour Turbo Generator (TG) having gross electricity generation capacity of 11 MW.
HRVGs shall be installed at Preheater (PH) and Air Quenched Cooler (AQC) ends of the kiln.
The project activity shall be commissioned in August 2012; net electricity generated by the project
activity (68,112 MWh/yr) will displace grid electricity imports and result in annual average emissions
reduction of 31,713 tonnes of CO2.
The project activity will also contribute towards sustainable development of the following:
Environmental Development
significant reduction in the emissions of Greenhouse Gases
improvement of the local environment by reduction in temperature of the vented hot air
conservation of local fossil fuel resources by avoiding fossil fuel based grid electricity
Social Development alleviation of poverty by providing labour employment opportunities to the local community
during construction phase
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creation of new permanent jobs during construction and operation phase
positive impact on local communities by avoiding grid electricity which will become available to
domestic consumers
addition to power generation capacity of Pakistan
less health impact for the population through less emission of greenhouse gases and particles
Economic Development
employment opportunities for the local people
Technology Development
introducing modern technology in the country (technology transfer)
setting up an example of sustainable development to be followed by other cement factories
A.3. Project participants:
>>
The table below illustrates the participants involved in the proposed CDM project activity. Contact
information is provided in Annex 1.
Table A.3.1: Project participants
Name of Party involved
((host) indicates a host Party)
Private and/or public
entity(ies)
project participants
(as applicable)
Kindly indicate if
the Party involved
wishes to be
considered as
project participant
(Yes/No)
Islamic Republic of Pakistan (host) D.G. Khan Cement Company
Limited (private entity) No
Islamic Republic of Pakistan (host) Carbon Services (Private)
Limited (private entity) No
Switzerland First Climate (Switzerland) AG
(private entity) No
A.4. Technical description of the small-scaleproject activity:
A.4.1. Location of the small-scale project activity:
>>
Khairpur
A.4.1.1. Host Party (ies):
>>
Islamic Republic of Pakistan
A.4.1.2. Region/State/Province etc.:
>> Punjab
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A.4.1.3. City/Town/Community etc:
>>
The project is located at:
DG Cement Khairpur Plant
Khairpur village, Kallar Kahar, Chakwal District
The company is headquartered at:
Nishat House, 53 – A, Lawrence Road,
Lahore, Pakistan
A.4.1.4. Details of physical location, including information allowing the
unique identification of this small-scale project activity:
>>
D.G. Khan Cement Company Khairpur Plant is located in Kallar Kahar, District Chakwal; it is situated 22
km to the south of Chakwal and 2 km to the East of Khairpur village.
Exact location of the plant, with respect to its geographical coordinates, is:
Latitude: 32°43'42"
Longitude: 72°48'54"
The location of the project is illustrated in the figures below.
FigureA.4.1.4.1: Location of DG Cement Khairpur Plant
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Figure A.4.1.4.2: DGKCC Khairpur Plant
A.4.2. Type and category(ies) and technology/measure of the small-scale project activity:
>>
In accordance with Appendix B of the Simplified Modalities and Procedures for Small-Scale CDM
Project Activities, the project activity falls under the following type and category:
Type III: Other project activities
Category Q: Waste energy recovery (gas/heat/pressure) projects
Sectoral Scope 4: Manufacturing industries
Khairpur plant of DG Cement Limited has only one kiln of capacity 6700 TPD which was commissioned
in March 2007.The kiln is a Rotax 2 support kiln (length 66 meters, diameter 5.50 meters) which was
designed by F.L.Smidth Denmark.
In the baseline situation, almost all the waste heat from the clinker production process is vented to
atmosphere; only a small portion of waste heat is recovered for pre-heating of raw inputs and drying of
coal. DG Cement has a 36 MW grid electricity import connection. The cement factory also has its own
captive power plant having total installed capacity of 33 MW (it consists of two Wartsila 18V50DF
engines each having a capacity of 16.5 MW). These gen-sets were commissioned in July 2007 and are
designed to use Natural Gas (NG) as the main fuel; diesel is used as the pilot fuel whereas Heavy Fuel Oil
(HFO) is used as back up fuel. Power demand of the cement plant is met both by the grid as well as an
existing captive power plant.
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The proposed project activity involves installation of Kalina cycle based waste heat recovery system
which includes three Heat Recovery Vapour Generators (HRVGs) having total capacity of 83tph (tonnes
per hour) and one vapour Turbo Generator (TG) having gross electricity generation capacity of 11 MW.
Two Heat Recovery Vapour Generator units will be installed at the pre-heater ends of the kiln (one for
each pre-heater) and one Heat Recovery Vapour Generator unit will be installed at the cooler end of the
kiln. The vapours (ammonia-water vapour mix) will then be fed to the Turbo Generator.
The project activity uses Kalina cycle to recover the heat effectively from the low temperature gasses and
generate ammonia water vapours as working fluid. The system can vary the composition of the working
fluid throughout the power cycle, and utilize power plant system designs that achieve a high level of heat
recovery. This technology is more effective than the conventional Rankine cycle technology. The use of
this technology enables a substantial higher power output, due to a highly efficient heat transfer rate.
The Kalina cycle process uses a binary working fluid of ammonia and water with proprietary and
patented processes for varying the ammonia concentration throughout the system and for heat
recuperative stages for increased efficiency. The use of ammonia permits efficient use of waste heat
streams by causing boiling to start at lower temperatures. The use of a binary fluid allows the composition
of the working fluid to be varied through the use of distillation, providing a richer concentration through
the HRVGs and leaner composition in the low-pressure condenser. Since the molecular weight of
ammonia is close to that of water, a standard backpressure turbine is used with improved sealing
arrangements.
Ammonia is not harmful to the environment. It starts to boil at a lower temperature than water, and a
mixture of ammonia and water will boil over a varying temperature range, allowing the working fluid
temperature to more closely parallel to the heat source temperature. Therefore, it is possible to decrease
the flue gas outlet temperature to a lower value, i.e. increase in thermal utilization of the heat.
Additionally since the mixture has no static boiling point, the recovered efficiency is higher than that of a
Rankine cycle.
The project equipment is brand new and uses environmentally safe state of the art technology. It is the
world’s largest Kalina Cycle based power plant which is also first-of-its-kind waste heat recovery plant in
the cement industry of Pakistan, both in terms of technology as well as size of installation. The
technology will be transferred from Denmark. A list of major equipment of project activity is given below
in Table A.4.2.1.
Table A.4.2.1: Project equipment
Specifications of Heat Recovery Vapour Generators
Equipment Manufacturer Gross Vapour
Generation Flue Gas Temperature
HRVG 1
At PH end of kiln
FL Smidth Cumulative
83 tph
Inlet: 314 ºC
Outlet: 151 ºC
HRVG 2
At PH end of kiln
Inlet: 314 ºC
Outlet: 151 ºC
HRVG 3
At AQC end of kiln
Inlet: 307 ºC
Outlet: 138 ºC
Specification of Vapour Turbo-generator
Manufacturer FL Smidth
Type Backpressure
Rated power output 11 MW
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Net guaranteed power output 8.6 MW
Gross Vapour Available (Kg/Hr) at Turbine inlet 83,000
Turbine inlet temperature 289 ºC
Turbine inlet pressure 58 bar a
Turbine exhaust temperature 95 ºC
Turbine exhaust pressure 2.1 bar a
Operational characteristics of the turbo-generator are provided below in Table A.4.2.2
Table A.4.2.2: Operational characteristics of turbo-generator
Operational days per annum 330
Operational hours per day 24
Net Guaranteed electricity generation
(MWh/year) 8.6*330*24= 68,112
The project activity shall be commissioned in August 2012. The project technology is not likely to be
substituted by other or more efficient technologies within the crediting period of the project activity.
The net electricity generated by the project activity (68,112 MWh/yr) will partially displace fossil fuel
based grid electricity and will result in, on average 31,713tonnes of CO2 emissions reduction per annum.
Following is the schematic of project activity:
Figure A.4.2.1: Schematic of project activity
Clinker Production at Kiln
HR
VG
s
Vapour Turbo-Generator
Power Waste heat
Ammonia water
vapours
Distillation and Condensation Sub-
System
Ammonia water vapours
Cement Works
Raw Materials
Hot Exhaust for preheating incoming raw material
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A.4.3 Estimated amount of emission reductions over the chosen crediting period:
>>
The annual & total estimation of emission reductions for the fixed crediting period of 10 years (from
01/10/2012 to 30/09/2022) is provided below in Table A.4.3.1.
Table A.4.3.1: Emission reductions over the crediting period
Years Annual estimation of emission reductions in
tonnes of CO2 e
Year 1 31,713
Year 2 31,713
Year 3 31,713
Year 4 31,713
Year 5 31,713
Year 6 31,713
Year 7 31,713
Year 8 31,713
Year 9 31,713
Year 10 31,713
Total estimated reductions
(tonnes of CO2 e) 317,130
Total number of crediting years 10
Annual average over the crediting period of
estimated reductions (tonnes of CO2 e) 31,713
A.4.4 Public funding of the small-scale project activity:
>>
There is no public funding involved in the project activity.
A.4.5 Confirmation that the small-scale project activity is not a de-bundled component of
a large scale project activity:
>>
Appendix C of the Simplified Modalities and Procedures for Small-Scale CDM Project Activities defines the following rules to determine whether the small-scale project activity is a de-bundled
component of a large scale project activity or not:
“A proposed small-scale project activity shall be deemed to be a de-bundled component of a large project
activity if there is a registered small-scale CDM project activity or an application to register another small-
scale CDM project activity:
(1) With the same project participants;
(2) In the same project category and technology/measure;
(3) Registered within the previous 2 years; and
(4) Whose project boundary is within 1 km of the project boundary of the proposed small-scale activity at
the closest point”
The project activity at DG Cement Khairpur Plant is not a de-bundled component of a large project
activity as in the last two years there is no registered small scale CDM project activity, or an application
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to register another small-scale CDM project activity by DG Cement in the same project category whose
project boundary lies within 1 km of the project boundary of the proposed small-scale project activity1.
SECTIOsN B. Application of a baseline and monitoring methodology
B.1. Title and reference of the approved baseline and monitoring methodology applied to the
small-scale project activity:
>>
AMS-III.Q: Waste Energy Recovery (gas/heat/pressure) Projects / Version 04
Valid from April 29, 2011
The methodology also refers to “ACM0012: Consolidated baseline methodology for GHG emission
reductions from waste energy recovery projects” for the estimation of the capping factor. Therefore,
corresponding section of ACM0012 / Version 04.0.0 (valid from April 15, 2011) is used.
Referred Tools:
Tool to calculate the emission factor for an electricity system (Version 02.2.1)
B.2 Justification of the choice of the project category:
>>
The present project activity involves waste heat recovery from cement manufacturing kiln. For the waste
heat from the kiln, AMS-III.Q is applicable. Here below the applicability conditions of the applied
methodology are checked.
Table B.2.1: Applicability check
Applicability Condition Applicability Check
1. The category is for project activities that utilize waste gas
and/or waste heat at existing facilities as an energy source for:
(a) Cogeneration; or
(b) Generation of electricity; or
(c) Direct use as process heat; or
(d) Generation of heat in elemental process (e.g. steam,
hot water, hot oil, hot air); or
(e) Generation of mechanical energy.
The project utilizes waste heat from
existing kiln as energy source for
generation of electricity (case b).
Condition is fulfilled.
2. The category is also applicable to project activities that use
waste pressure to generate electricity at existing facilities.
This condition is not relevant to the
project activity it does not involve
recovery of waste pressure for
generation of electricity.
3. The recovery of waste gas/heat/pressure should be a new
initiative (no waste gas/heat/pressure was recovered from the
project activity source prior to the implementation of the
project activity).
No waste heat was recovered for energy
generation purpose from the project
activity source prior to the
implementation of the project activity.
1 It may be pertinent to mention here that DG Cement has a registered small-scale project activity, DGKCC Waste
Heat Recovery and Utilization for 10.4 MW Power Generation at Dera Ghazi Khan Plant (refer # 4591) at its
Khofli Sattai Plant, which is in the same project category. However, the two plants of DG Cement (Khairpur and
Khofli Sattai) are separated by a distance of approximately 562 kms.
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So the project activity is a new
initiative.
Condition is fulfilled.
4. Measures are limited to those that result in emission
reductions of less than or equal to 60 kt CO2 equivalent
annually.
The project activity results in emission
reductions of 31.713 kt CO2 equivalent
annually which is less than 60 kt CO2.
Condition is fulfilled.
5. (a) The energy produced with the recovered waste
gas/heat/or waste pressure should be measurable;
The electricity produced by the project
activity is measurable.
Condition is fulfilled.
5. (b) Energy generated in the project activity may be used
within the industrial facility or exported to other industrial
facilities (included in the project boundary);
The energy generated in the project
activity is used within the industrial
facility.
Condition is fulfilled.
5. (c) Electricity generated in the project activity may be
exported to the grid or used for captive purposes; However, the
methodology is not applicable to projects where the waste
gas/heat/pressure recovery project is implemented in a single-
cycle power plant (e.g. gas turbine or diesel generator) where
heat (energy) generated on site is not utilizable for any other
purposes on-site except to generate power. Such project
activities shall consider AMS-III.AL “Conversion from single
cycle to combined cycle power generation”. The projects
recovering waste energy from such power plants for the
purpose of generation of heat only can apply this methodology;
The project activity does not
export any electricity to the grid.
The electricity generated in the
project activity would be used for
captive purposes only and would
displace electricity imports from
the grid.
The waste heat recovery project is
not implemented in a single cycle
power plant. The project activity
recovers waste heat from the
clinker production process and
utilizes it for power generation.
Condition is fulfilled.
5. (d) For a project activity which recovers waste
gas/heat/pressure for power generation from multiple sources
(e.g. kiln and single-cycle power plant), this methodology can
be used in combination with AMS-III.AL provided that:
(i) Within the project activity it is possible to distinguish
two distinct waste energy sources such that:
• Waste energy source-I (e.g. kiln) belongs to such
waste heat sources which are eligible under AMS-
III.Q;
• Waste energy source-II (e.g. single-cycle power unit)
belongs to such waste heat sources which are eligible
under AMS-III.AL;
(ii) It is possible, for each waste energy source, to
determine the baseline according to the specific
methodology referred to;
(iii) It is possible to objectively allocate the electricity
produced in the project activity to each waste energy
source, by means of one of the following methods:
• Through separate measurements of the electricity
This condition is not relevant because
the project activity recovers waste heat
for power generation only from single
waste heat source i.e. kiln.
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produced by utilizing waste energy from each waste
energy source; or
• Through separate measurements of the energy content
of the waste energy carrying medium (WECM)
streams used for electricity production; or
• Through separate measurements of the energy content
of the waste energy streams that are associated with
each waste energy source and used for electricity
production or for the WECM generation in a common
waste heat recovery system (e.g. if steam is generated
by waste heat from a kiln and waste heat from an
internal combustion engine in a common waste heat
recovery boiler);
5. (e) The emission reductions are claimed by the generator of
energy using waste energy;
The emission reductions are claimed by
DGKCC, which is the generator of
energy using waste heat.
Condition is fulfilled.
5. (f) In cases where the energy is exported to other facilities
(included in the project boundary), the following are required:
(i) All historical information from the recipient plants;
(ii) An official agreement exists between the owners of
the project energy generation plant (henceforth
referred to as generator, unless specified otherwise)
with the recipient plant(s) that the emission reductions
would not be claimed by the recipient plant(s) for
using a zero-emission energy source;
This condition is not relevant because
energy is not exported to other facilities
but used by the same facility where
waste energy is recovered.
5. (g) For those facilities and recipients included in the project
boundary, that prior to implementation of the project activity
(current situation) generated energy on-site (sources of energy
in the baseline), the credits can be claimed for minimum of the
following time periods:
(i) The remaining lifetime of equipments currently being
used; and
(ii) Crediting period;
The source of energy in the baseline is
the kiln which has a technical lifetime
that extends beyond the crediting
period. Therefore the credits are
claimed for the whole duration of the
selected crediting period (10 years).
Condition is fulfilled.
5. (h) The waste gas/heat/pressure utilized in the project
activity would have been flared or released into the
atmosphere in the absence of the project activity. This shall be
proven by one of the following options:
(i) By direct measurements of energy content and
amount of the waste gas/heat/pressure for at least three
years prior to the start of the project activity;
(ii) Energy balance of relevant sections of the plant to
prove that the waste gas/heat/pressure was not a
source of energy before the implementation of the
project activity. For the energy balance the
representative process parameters are required. The
energy balance shall demonstrate that the waste
gas/heat/pressure was not used and also provide
conservative estimations of the energy content and
The waste heat utilized in the project
activity would have been released into
the atmosphere in absence of the project
activity. This is proven by using option
iii. Energy bills and annual financial
reports of the company, audited by a
competent third party, demonstrate that
all the energy required for the process
has been procured commercially
Condition is fulfilled.
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amount of waste gas/heat/pressure released;
(iii) Energy bills (electricity, fossil fuel) to demonstrate
that all the energy required for the process (e.g. based
on specific energy consumption specified by the
manufacturer) has been procured commercially.
Project participants are required to demonstrate
through the financial documents (e.g. balance sheets,
profit and loss statement) that no energy was
generated by waste gas/heat/pressure and sold to other
facilities and/or the grid. The bills and financial
statements should be audited by competent authorities;
(iv) Process plant manufacturers’ original
specification/information, schemes and diagrams from
the construction of the facility could be used as an
estimate of quantity and energy content of waste
gas/heat/pressure produced for rated plant capacity per
unit of product produced.
6. For the purpose of this category waste energy is defined as: a
by-product gas/heat/pressure from machines and industrial
processes having potential to provide usable energy, for which
it can be demonstrated that it was wasted. For example gas
flared or released into the atmosphere, the heat or pressure not
recovered (therefore wasted). Gases that have intrinsic value in
a spot market as energy carrier or chemical (e.g., natural gas,
hydrogen, liquefied petroleum gas, or their substitutes) are not
eligible under this category.
The project activity utilizes waste
(heat) from clinker production process.
The waste heat was vented into the
atmosphere prior to the project activity.
The waste heat from the clinker
production process has no intrinsic
value in the spot market as energy
carrier or chemical. Thus this category
is applicable to waste heat from clinker
production process.
Condition is fulfilled.
B.3. Description of the project boundary:
>>
The geographical extent of the project boundary includes the sites of the facility where:
waste heat is produced
waste heat is transformed into electricity
the transformed electricity is utilized
Therefore, the kiln where the waste heat is generated, the waste heat recovery system where it is
transformed into electrical energy and the plants within the facility where the generated electricity is
consumed delineates the project boundary.
The grid is not included in the project boundary as electricity generated by the project activity is not
exported to the grid. The project activity only displaces the electricity imported from the grid.
This is illustrated in Figure B.3.1.
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Figure B.3.1: Project boundary
B.4. Description of baseline and its development:
>>
In the baseline situation, the high temperature exhaust of the kiln is vented to the atmosphere; only a
small portion of the waste heat generated is recovered from the feed end of the kiln and is circulated for
preheating raw inputs and drying of coal. There are no potential alternatives of waste heat utilization in
the vicinity of the factory.
DGKCC receives electricity from two sources, grid and captive power plant. However, grid supply in
Pakistan is not reliable; therefore the captive power plant is used as base load, and does not modify its
regime once the project activity is in place. Table B.4.1 given below shows that share of grid electricity is
fluctuating every year due to its unreliability. Therefore, the electricity produced by the project activity
only displaces grid electricity. This is also toward conservativeness as the grid electricity emission factor,
0.4656 tCO2/MWh, is lower than the captive power plant emission factor, 0.4703 tCO2/MWh2.
Table B.4.1: Historical data
Year
2007/08
Year
2008/09
Year
2009/10 Average
Clinker production by kiln (t/yr) 1,861,663 1,945,962 2,404,629 2,070,751
Electricity imported from grid (MWh/yr) 55,738 40,570 80,207 58,838
Electricity generated by captive power 130,689 148,129 146,406 141,741
2 Calculations for emission factors of grid and captive power plant are done in separate spread sheets, details are also
provided in Annex 3.
6700 TPD Kiln
WASTE HEAT RECOVERY
Cem
ent
Wo
rks
Waste Heat
8.6 MW Project
electricity
Grid electricity
Project Boundary
National Grid
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plant (MWh/yr)
Total electricity consumption (MWh/yr) 186,427 188,699 226,613 200,580
Share of grid electricity (%/yr) 30% 21% 35% 29%
Share of captive generation (%/yr) 70% 79% 65% 71%
Hence continuation of the current practice, venting the waste heat from kiln into the atmosphere and
supply of electricity from the national grid, is the most plausible baseline scenario in absence of the
proposed CDM project activity.
B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below
those that would have occurred in the absence of the registered small-scale CDM project activity:
>>
Prior CDM Consideration and continued effort to secure CDM status
The starting date of the project activity is the October 30, 2010 which corresponds to the date of signing
contract between DGKCC and F.L.Smidth A/S. of Denmark. DGKCC was aware of CDM since June
2007 and it played an instrumental role in the investment decision taken on the August 10, 2010 to
implement the proposed CDM project activity. Discussions with CDM consultants started in June 2007
with Factor Consulting (later First Climate (Switzerland) AG) and Carbon Services (Private) Limited.
During the whole implementation phase before validation, DGKCC was accompanied by the CDM
consultants. Project timeline is given below in Table B.5.1
Table B.5.1: Project Timeline
Milestone Date Source
CDM Awareness June 2007
Email communication
between Carbon Services and
DGKCC
Investment Decision August 10, 2010 Project Approval
Documentation
Project Start Date October 30, 2010 Contract between project
proponent and contractor
Prior CDM Consideration
Notification sent to UNFCCC and
DNA Pakistan
January 19, 2011 E-mail sent to UNFCCC and
DNA
Start of civil works March 25, 2011 Company Information
Request for validation sent to DOE September 29, 2011 E-mail sent to DOE
Environmental Approval of the
Project Activity January 10, 2012
Environmental Approval
Letter provided by by
Environmental Protection
Department, Punjab
Validation Contract signed with DOE January 20, 2012 Validation Contract
Expected project commissioning August 2012 Gantt chart in contract
document
Assessment and demonstration of additionality
According to Attachment A to Appendix B of the Simplified Modalities and Procedures for Small-
Scale CDM Project Activity, "Project participants shall provide an explanation to show that the project
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activity would not have occurred anyway due to at least one of the following barriers: (a) Investment
barriers, (b) Technological barriers, (c) Barrier due to prevailing practice and (d) other barriers.”
The barrier chosen to demonstrate additionality is the prevailing practice barrier option (c). Analysis of
the prevailing practice barrier is provided below
Barrier due to prevailing practice
The project activity is the first-of-its-kind in Pakistan both in terms of its technology as well as size of
installation; the project activity uses Kalina cycle based waste heat recovery system for power generation
which has never been used before in the cement industry of Pakistan3; secondly, as confirmed by the
technology supplier, FLSmidth, this Kalina Cycle based waste heat recovery power plant is the largest
installation in the world4.
Furthermore, the project participants have chosen a fixed crediting period of 10 years with no option of
renewal.
The project activity is additional as it fulfils the conditions as specified in paragraph 5 of the
GUIDELINES ON ADDITIONALITY OF FIRST-OF-ITS-KIND PROJECT ACTIVITIES, Version 01.0
(EB 63, Annex 11):
“A proposed project activity is the First-of-its-kind in the applicable geographical area if :
(a) The project is the first in the applicable geographical area that applies a technology that is different
from any other technologies able to deliver the same output and that have started commercial operation
in the applicable geographical area before the start date of the project; and
(b) Project participants selected a crediting period for the project activity that is “a maximum of 10
years with no option of renewal”
In view of the analysis provided above it can be concluded that the proposed CDM project activity is fully
additional.
3 First of its kind confirmation letter provided by All Pakistan Cement Manufacturers Association (APCMA)
4 Press release by FLSmidth available at
http://www.flsmidth.com/en-US/News+and+Press/Company+Announcements?feeditem=1524510
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B.6. Emission reductions:
B.6.1. Explanation of methodological choices:
>>
The emission reductions of the project activity have been calculated according to AMS-III.Q (Version
04).
Baseline emissions
As the electricity is obtained from a specific existing power plant and from the grid, baseline emissions
can be calculated as follows:
j i
yjiElecyjiwcmcapyelec EFEGffBE )*(** ,,,,,, (1)
Where:
BEelec,y Baseline emissions due to displacement of electricity during the year y in tons of
CO2
EGi,j,y The quantity of electricity supplied to the recipient j by generator, that in the
absence of the project activity would have been sourced from ithsource (i can be
either grid or identified source) during the year y in MWh
EFelec,i,j,y The CO2 emission factor for the electricity source i (i=gr (grid) or i=is (identified
source)), displaced due to the project activity, during the year y in tons CO2/MWh
fwcm Fraction of total electricity generated by the project activity using waste energy.
This fraction is 1 if the electricity generation is purely from use of waste energy.
If the boiler providing steam for electricity generation uses both waste and fossil
fuels, this factor is estimated using equation (7). If the steam used for generation
of the electricity is produced in dedicated boilers but supplied through common
header, this factor is estimated using equation (7)/(9).
Note: For project activity using waste pressure to generate electricity, electricity
generated from waste pressure use should be measurable and this fraction is 1
fcap Capping factor to exclude increased waste energy utilization in the project year y
due to increased level of activity of the plant, relative to the level of activity in the
base years before project start. The ratio is 1 if the waste energy generated in
project year y is same or less than that generated in base years.
fcap shall be estimated according to the corresponding section of ACM0012
“Consolidated baseline methodology for GHG emission reductions from waste
energy recover projects”
Emission Factor of Grid
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The baseline generation source is grid, the parameter EGi,j,y corresponds to EGgr,y and the emission factor
EFelec,i,j,y corresponds to EFElec,gr,y. The CO2 emission factor is determined ex ante as per “Tool to
calculate the emission factor for an electricity system” (Version 02.2.1) and fixed for entire crediting
period. The calculation is done in a separate excel spread sheet and the details are provided in Annex 3.
Calculation of fwcm
The electricity generation of the project is purely from use of waste heat, then according to the
methodology fwcm= 1.
Calculation of fcap
According to the requirements of AMS.III.Q (Version 04) the capping factor fcap should be calculated
using proper equations from ACM0012 “Consolidated baseline methodology for GHG emission
reductions from waste energy recover projects”
As an introduction to the element of conservativeness, this methodology requires that baseline emissions
should be capped irrespective of planned/unplanned or actual increase in output of plant, change in
operational parameters and practices, change in fuel type and quantity resulting in an increase in
generation of waste energy. In case of planned expansion a separate CDM project should be registered
for additional capacity. The cap can be estimated using the three Methods described below. Project
proponents shall use Method-1 to estimate the cap if data is available. In case of project activities
implemented in a new facility, or in facilities where three-year data on production is unavailable,
Method-2 shall be used. In case the project proponents demonstrate technical limitations in direct
monitoring of waste heat / pressure of waste energy carrying medium (WECM), then Method-3 is used.
Method-1
Where the historical data on energy released by the waste energy carrying medium is available, the
baseline emissions are capped at the maximum quantity of waste energy released into the atmosphere
under normal operation conditions in the three years previous to the project activity.
Method-2
The manufacturer’s data for the industrial facility shall be used to estimate the amount of waste energy
the industrial facility generates per unit of product generated by the process that generates waste energy
(either product of departmental process or product of entire plant, whichever is more justifiable and
accurate). In case any modification is carried out by the project proponent or in case the manufacturer’s
data is not available for an assessment, this should be carried out by independent qualified/certified
external process experts such as a chartered engineer on a conservative quantity of waste energy
generated by plant per unit of product manufactured by the process generating waste energy. The value
arrived based on above sources of data, shall be used to estimate the baseline cap (fcap). The
documentation of such assessment shall be verified by the validating DOE.
Method-3
In some cases, it may not be possible to measure the waste energy (heat, sensible heat, heat of reaction,
heat of combustion etc.), enthalpy or pressure content of WECM. Therefore there is no historic data
available for these cases. These cases may be of following two types.
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Case 1: The energy is recovered from WECM and converted into final output energy through waste heat
recovery equipment. For example, the useful energy (e.g., steam) is produced using waste energy
generated by a chemical reaction. For such cases fcap should be the ratio of maximum energy that could
be recovered (MER) by the waste heat recovery equipment implemented under the CDM project activity
and the actual energy recovered under the project activity (using direct measurement). The MER should
be based on information on the characteristics of the key product/by product. For existing facilities this
can be obtained from historical information and for Greenfield facilities, manufacturer’s specifications
on these key parameters can be used.
Case 2: The energy is recovered from WECM in intermediate energy recovery equipment using an
intermediate source. For example, an intermediate source to carry energy from primary WECM may
include the sources such as water, oil or air to extract waste energy entrapped in chemicals (heat of
reaction) or solids (sensible heat), which is further recovered in the waste heat recovery equipment to
generate final output energy. For such cases fcap should be the ratio of maximum energy that could be
recovered (MER) by waste heat recovery equipment implemented under the CDM project activity
(considering the losses due to exchange of energy) and actual intermediate energy recovered under the
project activity (using direct measurement). The MER should be based on information on the
characteristics of the key product/by product. For existing facilities this can be collected from historical
information and for Greenfield facilities, manufacturer’s specifications on these key parameters can be
used.
Since there is no historical data on parameters of the waste energy from the cement clinker production
and it is not possible to measure it due to different technical reasons, Method-3 for fcap calculation was
chosen.
As there are heat exchangers in the project scenario where waste energy is transferred from WECM to
ammonia-water mix for vapours generation and further production of electricity, therefore Case 1 of
Method-3 for fcap calculation is used.
Therefore, fcap is determined using Equation (40) of ACM0012 / Version 04.0.0 :
yOE
BLOE
capQ
Qf
,
, (2)
Where:
QOE,BL = Output/intermediate energy that can be produced (TJ), to be determined on the basis of
maximum energy that could be recovered from the WECM (MER), which would have
been released (or WECM would have been flared or energy content of WECM would
have been wasted) in the absence of CDM project activity.
QOE,y = Quantity of actual output/intermediate energy generated during year y (TJ)
In the proposed project, the theoretical electricity output BLOEQ , is 68,112 MWh/year i.e. (68,112 * 3.6 *
10-3
= 245.203 TJ electrical). The actual output electricity yOEQ , will be determined ex post by actual
measurement. As per project plan, there is no reason to believe that the energy recovered will be different
from the theoretical value for which the waste heat recovery system has been designed. Therefore, the
ratio is assumed to be 1 for ex ante calculations and will be settled ex post.
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fcap = 1
Project emissions
Project Emissions include emissions due to combustion of auxiliary fuel to supplement waste gas and
emissions due to consumption of electricity by the project activity.
If the waste gas contains carbon monoxide or hydrocarbons, other than methane, and the waste gas is
vented to the atmosphere in the baseline situation, project emissions have to include CO2 emissions due to
the combustion of the waste gas.
There is no auxiliary fuel combustion in the project activity to supplement waste gas and the turbo-
genset consumes its own electricity for auxiliary needs. Similarly, the project activity does not incinerate
any waste gas to generate energy. Therefore, the project emissions are considered zero.
Leakage Emissions
If equipment currently being utilised is transferred from outside the boundary to the project activity,
leakage is to be considered.
Leakage is conserved to be zero as the project activity only involves installation of new equipment and
there is no transfer of equipment from outside the project boundary to the project activity.
Emission reductions
Emission reductions are calculated as follows:
yyyy LEPEBEER (3)
Where:
yER Emission reductions in year y (t CO2e/yr)
yBE Baseline emissions in year y (t CO2e/yr)
yPE Project emissions in year y (t CO2/yr)
yLE Leakage emissions in year y (t CO2/yr)
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B.6.2. Data and parameters that are available at validation:
Data / Parameter: QOE,BL
Data unit: TJ/yr
Description: Output electricity that can be theoretically produced, to be determined on the
basis of maximum recoverable energy.
Source of data to be
used: Equipment Specifications
Value of data 245.203
Description of
measurement methods
and procedures to be
applied:
The value is calculated by converting 68,112 MWh/yr (i.e. calculated on the basis
of 8.6 MW net value) to TJ by multiplying with 3.6*10-3
QA/QC procedures to
be applied:
Any comment:
Data / Parameter: fcap
Data unit: %
Description: Capping factor to exclude increased waste energy utilization in the project year
y due to increased level of activity of the plant, relative to the level of activity in
the base years before project start. The ratio is 1 if the waste energy generated
in project year y is same or less than that generated in base years.
Source of data used: Chosen according to Case 1 of Method -3 as specified in ACM 0012
Value applied: 100
Justification of the
choice of data or
description of
measurement methods
and procedures actually
applied :
fcap= 1 or 100%, calculated as per the procedure as mentioned in Case 1 of
Method -3 as specified in ACM 0012
Any comment:
Data / Parameter: fwcm
Data unit: %
Description: Fraction of total energy generated by the project activity using waste energy.
This fraction is 1 if the energy generation is purely from use of waste energy in
the project generation unit.
Source of data used: Technical Description Document of the Waste Heat Recovery Equipment
Value applied: 100
Justification of the
choice of data or
description of
measurement methods
and procedures actually
applied :
The electricity generation of the project is purely from use of waste heat, then
according to the methodology fwcm= 1 or 100%.
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Any comment:
Data / Parameter: COEFHFO
Data unit: tCO2/TJ
Description: Emission Coefficient of HFO
Source of data used: Table 2.3 “Default Emission Factors for Stationary Combustion in
Manufacturing Industries and Construction”, Chapter 2: Stationary Combustion,
2006 IPCC Guidelines for National Greenhouse Gas Inventories
Value applied: 77.4
Justification of the
choice of data or
description of
measurement methods
and procedures actually
applied :
Given that local value is not available, IPCC default value is used
Any comment: Used to calculate the grid emission factor EFgrid (see details in Annex 3)
Data / Parameter: COEFdiesel
Data unit: tCO2/TJ
Description: Emission Coefficient of diesel
Source of data used: Table 2.3 “Default Emission Factors for Stationary Combustion in
Manufacturing Industries and Construction”, Chapter 2: Stationary Combustion,
2006 IPCC Guidelines for National Greenhouse Gas Inventories
Value applied: 74.1
Justification of the
choice of data or
description of
measurement methods
and procedures actually
applied :
Given that local value is not available, IPCC default value is used
Any comment: Used to calculate the grid emission factor EFgrid (see details in Annex 3)
Data / Parameter: COEFcoal
Data unit: tCO2/TJ
Description: Emission Coefficient of coal
Source of data used: Table 2.3 “Default Emission Factors for Stationary Combustion in
Manufacturing Industries and Construction”, Chapter 2: Stationary Combustion,
2006 IPCC Guidelines for National Greenhouse Gas Inventories
Value applied: 96.1
Justification of the
choice of data or
description of
measurement methods
and procedures actually
applied :
Given that local value is not available, IPCC default value is used
Any comment: Used to calculate the grid emission factor EFgrid (see details in Annex 3)
Data / Parameter: COEFNG
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Data unit: tCO2/TJ
Description: Emission Coefficient of Natural Gas
Source of data used: Table 2.3 “Default Emission Factors for Stationary Combustion in
Manufacturing Industries and Construction”, Chapter 2: Stationary Combustion,
2006 IPCC Guidelines for National Greenhouse Gas Inventories
Value applied: 56.1
Justification of the
choice of data or
description of
measurement methods
and procedures actually
applied :
Given that local value is not available, IPCC default value is used
Any comment: Used to calculate the grid emission factor EFgrid (see details in Annex 3)
Data / Parameter: NCVHFO
Data unit: TJ/t
Description: Net Calorific Value of HFO
Source of data used: Table in appendix 7.4 of Pakistan Energy Year Book 2010
Value applied: 0.04077
Justification of the
choice of data or
description of
measurement methods
and procedures actually
applied :
Public available source for the grid emission factor calculation
Any comment: Used to calculate the grid emission factor EFgrid (see details in Annex 3)
Data / Parameter: NCVDiesel
Data unit: TJ/t
Description: Net Calorific Value of diesel
Source of data used: Table in appendix 7.4 of Pakistan Energy Year Book 2010
Value applied: 0.04402
Justification of the
choice of data or
description of
measurement methods
and procedures actually
applied :
Public available source for the grid emission factor calculation
Any comment: Used to calculate the grid emission factor EFgrid (see details in Annex 3)
Data / Parameter: NCVCoal
Data unit: TJ/t
Description: Net Calorific Value of coal
Source of data used: Table M-1 in appendix of WAPDA statistics
Value applied: 0.01172
Justification of the
choice of data or
description of
Public available source for the grid emission factor calculation
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measurement methods
and procedures actually
applied :
Any comment: Used to calculate the grid emission factor EFgrid (see details in Annex 3)
Data / Parameter: NCVNatural Gas
Data unit: TJ/MMCFT (tera joule per million cubic feet)
Description: Net Calorific Value of natural gas
Source of data used: Table in appendix 7.4 of Pakistan Energy Year Book 2010
Value applied: 0.97971
Justification of the
choice of data or
description of
measurement methods
and procedures actually
applied :
Public available source for the grid emission factor calculation
Any comment: Used to calculate the grid emission factor EFgrid (see details in Annex 3)
Data / Parameter: FCHFO
Data unit: ton
Description: Annual consumption of HFO
Source of data used: Pakistan Energy Year Book 2010
Value applied:
2007-08 2008-09 2009-10
6,923,707 7,405,059 8,564,578
Justification of the
choice of data or
description of
measurement methods
and procedures actually
applied :
Public available source for the grid emission factor calculation
Any comment: Used to calculate the grid emission factor EFgrid (see details in Annex 3)
Data / Parameter: FCDiesel
Data unit: ton
Description: Annual consumption of diesel
Source of data used: Pakistan Energy Year Book 2010
Value applied: 2007-08 2008-09 2009-10
160,226 165,359 249,248
Justification of the
choice of data or
description of
measurement methods
and procedures actually
applied :
Public available source for the grid emission factor calculation
Any comment: Used to calculate the grid emission factor EFgrid (see details in Annex 3)
Data / Parameter: FCCoal
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Data unit: ton
Description: Annual consumption of coal
Source of data used: Pakistan Energy Year Book 2010
Value applied: 2007-08 2008-09 2009-10
162,200 112,520 125,482
Justification of the
choice of data or
description of
measurement methods
and procedures actually
applied :
Public available source for the grid emission factor calculation
Any comment: Used to calculate the grid emission factor EFgrid (see details in Annex 3)
Data / Parameter: FCNatural Gas
Data unit: MMCFT (million cubic feet)
Description: Annual consumption of NG
Source of data used: Pakistan Energy Year Book 2010
Value applied: 2007-08 2008-09 2009-10
429,892 404,140 366,906
Justification of the
choice of data or
description of
measurement methods
and procedures actually
applied :
Public available source for the grid emission factor calculation
Any comment: Used to calculate the grid emission factor EFgrid (see details in Annex 3)
Data / Parameter: EGHFO
Data unit: GWh
Description: Annual gross electricity generated on HFO
Source of data used: Pakistan Energy Year Book 2010
Value applied: 2007-08 2008-09 2009-10
30,169 31,749 35,170
Justification of the
choice of data or
description of
measurement methods
and procedures actually
applied :
Public available source for the grid emission factor calculation
Any comment: Used to calculate the grid emission factor EFgrid (see details in Annex 3)
Data / Parameter: EGdiesel
Data unit: GWh
Description: Annual gross electricity generated on diesel
Source of data used: Pakistan Energy Year Book 2010
Value applied: 2007-08 2008-09 2009-10
649 674 1005
Justification of the
choice of data or
Public available source for the grid emission factor calculation
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description of
measurement methods
and procedures actually
applied :
Any comment: Used to calculate the grid emission factor EFgrid (see details in Annex 3)
Data / Parameter: EGcoal
Data unit: GWh
Description: Annual gross electricity generated on coal
Source of data used: Pakistan Energy Year Book 2010
Value applied: 2007-08 2008-09 2009-10
136 113 116
Justification of the
choice of data or
description of
measurement methods
and procedures actually
applied :
Public available source for the grid emission factor calculation
Any comment: Used to calculate the grid emission factor EFgrid (see details in Annex 3)
Data / Parameter: EGNatural Gas
Data unit: GWh
Description: Annual gross electricity generated on NG
Source of data used: Pakistan Energy Year Book 2010
Value applied: 2007-08 2008-09 2009-10
32,923 29,678 28,079
Justification of the
choice of data or
description of
measurement methods
and procedures actually
applied :
Public available source for the grid emission factor calculation
Any comment: Used to calculate the grid emission factor EFgrid (see details in Annex 3)
Data / Parameter: EGnuc
Data unit: GWh
Description: Annual gross electricity generated by nuclear plants
Source of data used: Pakistan Energy Year Book 2010
Value applied: 2007-08 2008-09 2009-10
3,077 1,618 2,894
Justification of the
choice of data or
description of
measurement methods
and procedures actually
applied :
Public available source for the grid emission factor calculation
Any comment: Used to calculate the grid emission factor EFgrid (see details in Annex 3)
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Data / Parameter: EGhydro
Data unit: GWh
Description: Annual gross electricity generated by hydro plants
Source of data used: Pakistan Energy Year Book 2010
Value applied: 2007-08 2008-09 2009-10
28,707 27,784 28,093
Justification of the
choice of data or
description of
measurement methods
and procedures actually
applied :
Public available source for the grid emission factor calculation
Any comment: Used to calculate the grid emission factor EFgrid (see details in Annex 3)
Data / Parameter: ECnuc
Data unit: GWh
Description: Annual auxiliary electricity consumption by nuclear plants
Source of data used: Pakistan Energy Year Book 2010
Value applied: 2007-08 2008-09 2009-10
258 143 231
Justification of the
choice of data or
description of
measurement methods
and procedures actually
applied :
Public available source for the grid emission factor calculation
Any comment: Used to calculate the grid emission factor EFgrid (see details in Annex 3)
Data / Parameter: EChydro
Data unit: GWh
Description: Annual auxiliary electricity consumption by hydro plants
Source of data used: Pakistan Energy Year Book 2010
Value applied: 2007-08 2008-09 2009-10
86 84 87
Justification of the
choice of data or
description of
measurement methods
and procedures actually
applied :
Public available source for the grid emission factor calculation
Any comment: Used to calculate the grid emission factor EFgrid (see details in Annex 3)
Data / Parameter: ECthermal
Data unit: GWh
Description: Annual auxiliary electricity consumption by thermal power plants
Source of data used: Pakistan Energy Year Book 2010
Value applied: 2007-08 2008-09 2009-10
3,343 1,840 1,942
Justification of the Public available source for the grid emission factor calculation
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choice of data or
description of
measurement methods
and procedures actually
applied :
Any comment: Used to calculate the grid emission factor EFgrid (see details in Annex 3)
Data / Parameter: EI
Data unit: GWh
Description: Annual net imports from other grids outside the host country
Source of data used: Pakistan Energy Year Book 2010
Value applied: 2007-08 2008-09 2009-10
199 227 249
Justification of the
choice of data or
description of
measurement methods
and procedures actually
applied :
Public available source for the grid emission factor calculation
Any comment: Used to calculate the grid emission factor EFgrid (see details in Annex 3)
Data / Parameter: EFGrid
Data unit: tCO2/MWh
Description: Emission factor of the grid
Source of data used: Pakistan Energy Year Book 2010
Value applied: 0.4656
Justification of the
choice of data or
description of
measurement methods
and procedures actually
applied :
Calculated as per “Tool to calculate the emission factor for an electricity system
/ Version 02.2.1”
Any comment: The detailed calculation of the grid emission factor is provided in Annex 3. The
grid emission factor is calculated ex-ante and fixed for the entire crediting
period of the project activity.
Data / Parameter: EGChistorical
Data unit: MWh/yr (Mega watt hours per year)
Description: Electricity generated by captive power plant in historical year
Source of data used: Historical data provided by DGKCC
Value applied: 2007/08 2008/09 2009/10
130,689 148,129 146,406
Justification of the
choice of data or
description of
measurement methods
The data has been taken from power generation reports of DGKCC, QMS
procedures are followed in measurement and reporting this value.
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and procedures actually
applied :
Any comment:
Data / Parameter: EIGhistorical
Data unit: MWh/yr (Mega watt hours per year)
Description: Electricity imported from grid in historical year
Source of data used: Historical data provided by DGKCC
Value applied: 2007/08 2008/09 2009/10
55,738 40,570 80,207
Justification of the
choice of data or
description of
measurement methods
and procedures actually
applied :
The data has been taken from electricity consumption reports of DGKCC, QMS
procedures are followed in measurement and reporting this value.
Any comment:
B.6.3 Ex-ante calculation of emission reductions:
The equations involved in ex-ante calculations are enumerated in section B.6.1. Detailed emission
reduction calculations are provided in a separate EXCEL sheet.
Baseline emissions
Baseline emissions are calculated as:
j i
yjiElecyjiwcmcapyelec EFEGffBE )*(** ,,,,,, (1)
= 1*1*68,112*0.4656
= 31,713 tCO2 / yr
Following equation is used to determine fcap:
yOE
BLOE
capQ
Qf
,
, (2)
= 245.203 / 245.203
= 1
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Project emissions
There is no auxiliary fuel combusted in the project activity to supplement waste gas and the waste heat
recovery system consumes its own electricity for auxiliary needs. Similarly, the project activity does not
incinerate any waste gas to generate energy. Therefore, the project emissions are considered zero.
0yPE
Leakage
Leakage is conserved to be zero as the project activity only involves installation of new equipment and
there is no transfer of equipment from outside the project boundary to the project activity.
0yLE
Emission reductions
Emission reductions are calculated as follows:
yyyy LEPEBEER (5)
= 31,713 – 0 – 0
= 31,713 t CO2 / yr
B.6.4 Summary of the ex-ante estimation of emission reductions:
>>
A summary of the ex-ante estimation of emission reductions for the fixed crediting period of 10 years
(from 01/10/2012 to 30/09/2022) is provided below.
Table B.6.4.1: Ex-ante estimation of emission reductions
Year
Estimation of
project activity
emissions
(tonnes of CO2 e)
Estimation of
baseline
emissions
(tonnes of CO2 e)
Estimation of
leakage
(tonnes of CO2 e)
Estimation of
overall emission
reductions
(tonnes of CO2 e)
Year 1 0 31,713 0 31,713
Year 2 0 31,713 0 31,713
Year 3 0 31,713 0 31,713
Year 4 0 31,713 0 31,713
Year 5 0 31,713 0 31,713
Year 6 0 31,713 0 31,713
Year 7 0 31,713 0 31,713
Year 8 0 31,713 0 31,713
Year 9 0 31,713 0 31,713
Year 10 0 31,713 0 31,713
Total
(tonnes of CO2 e) 0 317,130 0 317,130
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B.7 Application of a monitoring methodology and description of the monitoring plan:
Data / Parameter: EGi,j,y
Data unit: MWh
Description: Net electricity generated by waste heat recovery based turbo-generator
Source of data to be
used: Internal records
Value of data applied
for the purpose of
calculating expected
emission reductions in
section B.5
68,112
Description of
measurement methods
and procedures to be
applied:
Measuring Equipment: Energy Meter
Data type: Measured
Frequency of measurement: Monthly
QA/QC procedures to
be applied: QMS procedures will be followed in recording & reporting of parameter.
Any comment:
Data / Parameter: QOE,y
Data unit: TJ
Description: Electrical output generated by waste heat recovery based turbo-generator during
year y
Source of data to be
used: Electricity generation report
Value of data 245.203
Description of
measurement methods
and procedures to be
applied:
Calculated (By converting MWh to TJ by multiplying with 3.6*10-3
)
QA/QC procedures to
be applied:
Any comment:
B.7.2 Description of the monitoring plan:
>>
Monitoring plan involves metering the electrical energy produced by the project activity. Based on that,
fcap will be determined according to Case 1: method 3 of ACM0012 as illustrated in section B.6.1 of the
PDD.
Data for electricity consumption by plant is collected by electrical supervisor, and ECS plant guide
software. Electrical Managers verify the data for electricity consumption.
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Power house data is collected by Power House Operators; who record the data for electricity generation
and fuel consumption at the power plant. Daily power generation report is prepared by Power House Shift
Engineers which are later verified by Incharge Power House/Power House Manager.
QMS (Quality Management System) shall be followed in reporting and recording of all the monitoring
parameters described in Section B.7.1. In case some data is missing or incorrect, it will be reconstructed
or rectified based on the information sought from the historical data record which is similar in terms of
operating conditions and parameters. An electronic spread sheet model will be used for archiving
electronic data.
The person in charge of the project monitoring will conduct annual internal audits, checking the above
mentioned procedures for collecting data.
The person in charge of quality assurance would make sure that all the equipment used for measuring data
are properly and timely calibrated. Each equipment/meter should have a calibration tag attached to it
showing equipment name, model, date of last calibration and the date when next calibration is due. To
ensure the reliability of the data, calibration of all measuring devices would be done according to a
planned calibration.
Table B.7.2.1 shows the responsibilities of personnel monitoring the operation of proposed CDM activity.
Table B7.2.1: Designation of Personnel Involved in Monitoring
Parameter Data
Collection
Daily Data
Log
Preparation
Initial Data
Verification
Final Data
Verification
Data Auditing
Designation Frequency
Electricity
Generation Operator Shift Engineer Incharge Manager
Internal
Auditors Annual
B.8 Date of completion of the application of the baseline and monitoring methodology and the
name of the responsible person(s)/entity(ies)
>>
Date of completion: 13/02/2012
Name of the responsible entities: First Climate (Switzerland) AG
Stauffacherstrasse 45
CH-8004 Zurich
Switzerland
URL: www.firstclimate.com
Contact person: Mr.NikolausWohlgemuth
Email: nikolaus.wohlgemuth@firstclimate.com
Carbon Services (Private) Limited
19 Davis Road, 2nd
Floor, Al Maalik,
Lahore
Pakistan
URL: www.carbon.com.pk
Contact person: Mr. Omar M Malik
Email: omar.malik@carbon.com.pk
Both, First Climate (Switzerland) AG and Carbon Services (Private) Limited, are project participants.
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SECTION C. Duration of the project activity / crediting period
C.1 Duration of the project activity:
C.1.1. Starting date of the project activity:
>>
Starting date of the project activity is October 30, 2010 which is the date of signing contract between
DGKCC and FLSmidth A/S.
C.1.2. Expected operational lifetime of the project activity:
>>
20 years 0 months
C.2 Choice of the crediting period and related information:
C.2.1. Renewable crediting period
C.2.1.1. Starting date of the first crediting period:
>>
Not applicable
C.2.1.2. Length of the first crediting period:
>>
Not applicable
C.2.2. Fixed crediting period:
C.2.2.1. Starting date:
>>
01/10/2012
C.2.2.2. Length:
>>
10 years 0 months
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SECTION D. Environmental impacts
>>
D.1. If required by the host Party, documentation on the analysis of the environmental impacts
of the project activity:
>>
According to the host country regulations, the project activity had to receive an Environmental Approval
from the Environment Protection Department of the local government, upon submission of an Initial
Environmental Examination (IEE) Report by the project proponent.
The IEE points out that the project will be beneficial to the environment as utilization of waste heat and
thus avoiding fossil fuel based grid electricity are made possible by the new technology. No negative
environmental impacts are to be considered, as the technology to be adopted is mature and safe, once
appropriate operation and maintenance procedure are in place.
The environmental analyses conducted by DGKCC for the project are consistent in demonstrating that the
project activity is expected to remain fully compliant with NEQS (National Environmental Quality
Standards). In fact, it is expected that pollutant emissions (both of local concern and global concern, such
as CO2) will reduce from the current levels.
D.2. If environmental impacts are considered significant by the project participants or the host
Party, please provide conclusions and all references to support documentation of an environmental
impact assessment undertaken in accordance with the procedures as required by the host Party:
>>
Neither the project participants nor the host Party have any concern about negative environmental impacts
associated with the project activity, given that project activity aims at reducing the local and global
environmental impacts of the industrial site where the project activity is to be implemented.
IEE Report (Initial Environmental Examination Report) and the accompanying approval request letter
were submitted on July 18, 2011. The environmental approval to the project activity was granted on
January 10, 2012.The I.E.E report does not raise any particular issue with regard to the environmental
impact of the project.
SECTION E. Stakeholders’ comments
>>
E.1. Brief description how comments by local stakeholders have been invited and compiled:
>>
The local stakeholders’ consultation meeting is a requirement by Designated National Authority (DNA)
of CDM Pakistan, as well as it is required for the CDM PDD. The DNA issues Host Country Approval to
the project participants after the stakeholders’ consultation meeting is conducted and all the evidences are
provided to it.
Stakeholders were informed about the project activity through specific advertising published by the
project owner in the local media (newspaper, public notice boards within and surrounding the DG Cement
Khairpur Plant).
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The Stakeholder consultation meeting was held on Jan 28, 2011 at DG Cement Khairpur Plant and was
open to anybody willing to participate (private citizens, representatives of associations, interest groups,
unions, public authorities, NGOs etc.).
The meeting was introduced by the representative of the project owner who explained in details the
project activity and stimulated the debate and the expression of comments.
E.2. Summary of the comments received:
>>
Comments from the stakeholders were collected in written form during and after the meeting. These are
summarized below Table E.2.1.
Table E.2.1: Summary of the comments
Sr. No. Stakeholder’s
Name Designation Qualification Address
Comments/Views about the
Project
1. Ghulam Shabbir Teaching M.A (English)
(Urdu)
G.H.S.S
Kallar Kahar
Waste heat recovery
project will help to
minimise environmental
pollution.
It will be useful for the
environmental conditions
global warming and green-
house effects.
By storing heat it will
produce electricity.
It will also help to
overcome the problems of
unemployment
2.
Capt.
Muhammad Gul
Malik
Rtd. Capt from
Artillery F.A
Khairpur
Kalar Kahar
Chakwal
I am so grateful to all senior
persons to invite us in this
briefing.
I cannot tell my personal
opinion about this project but I
can say that there are very few
people who have good thinking
about improvement of
Pakistan’s economy. This
project will give great oxygen
to not only D.G. Cement but
also to Pakistanis. I am again
grateful to Mian Mansha and
his great son for good thinking.
3.
Mian
Muhammad
Riaz Khan
F.Sc.
Khairpur
District
Chakwal
After hearing the briefing of
Mr. Khalid I have come to
know that Mansha Group is
trying to generate electricity by
recovering the waste heat. May
God create more people like
these which help country’s
progress
4. Amjad Hussain Teaching M.A G.H.S.S
Kallar Kahar
The waste heat recovery clean
development project is very
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useful for local environment.
Our country is facing energy
crises this project will help to
improve production of
electricity and also reduce the
pollution
5. Malik Nasir
Ahmad S.S.T Teacher M.A/M.Ed
Government
Higher
secondary
School Kallar
Kahar
No doubt it is a good project. In
future this project will produce
significant electricity and use
gases which produce pollution.
Due to production of electricity
we will come to control the
load shedding in this particular
area and in our country.
6. Muhammad
Zariat Retired Teacher
B.A/B.Ed-
M.A/M.Ed
Village P.O:
Daulat pur
Tehsil,
P.D.Khan
District
Jehlum
After the briefing of G.M, I am
impressed with it. It is modern
development. It is our
requirement in these difficult
circumstances. In the end I
appreciate this modern
development.
7. Imiaz Ahmad Shopkeeper Matric
Tehsil and
District
Chakwal
With this project activity
impact on the environment are
very positive, jobs will be
created and country will benefit
from it.
8. WajidHussain Land Surveyor F.A
P.O Minhal,
Tehsil Choa
Saiden Shah
District
Chakwal
Waste heat recovery project is
better for environment. We are
happy with this project and we
want this project to complete as
soon as possible. Because it is
better for electricity. It is also
better for unemployed persons.
9. Muhammad
Hanif Labour Primary
Environment will be improved
with the installation of this
project. This project will create
jobs and electricity.
Government will benefit from
it. I am in full favour of this
plant.
10. Hafiz M Akhtar Matric Chak Khushi,
Kallar Kahar
D.G Cement plant is very
benefiting for us e.g. Jobs,
hospital etc. With the
installation of heat recovery
plant environment will be
better, electricity will be
generated, job opportunities
will be created and area will
prosper.
11. Talat Amir F.A
Kallar Kahar
P.O Kallar
Kahar
I totally agree with the project
activity of D.G Cement factory.
12. Mazhar Agriculturist Matric Village Dolat With the installation of heat
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pur, Tehsil
Pind dadan
khan, District
Jehlum
recovery plant environment will
be better, job opportunities will
create and deficiency of
electricity will be reduced.
13. Noor Ahmad Shopkeeper Metric
Kallar Khahar
District Khair
pur, Chakwal
I am in full favour of this
project activity at the D.G Khan
cement factory. With the
installation of heat recovery
plant electricity will be
generated and environment will
be better and also job
opportunities will be created.
14. Malik Iftikhar
Ahmad
Principal
G.H.S.S Kallar
Kahar
M.A Political
Science
Government
Higher
Secondary
School, Kallar
Khar
It is a good project because it
will benefit the local
community. D.G Cement has
already doing well in the
welfare programs in health and
education sector. When
electricity will be generated
from the waste heat the
environment will be cleaner.
15.
Malik
Muhammad
Waseem
Students D.A.E
(Electronics)
District
Chakwal
Waste heat recovery
project will help to
minimise environmental
pollution.
It will be useful in reducing
global warming.
By heat recovery electricity
will be generated.
E.3. Report on how due account was taken of any comments received:
>>
All the comments received at the stakeholders meeting were expressing a positive opinion of the project.
The personnel at DGKCC explained in detail the technical, environmental, and social consequences of
utilization of waste heat recovery for power generation. The stakeholders were satisfied, and were
supportive to the project. In conclusion, no concerns were expressed by the stakeholders, which
eventually expressed appreciation for initiative of DGKCC.
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Annex 1
CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY
Organization: D.G. Khan Cement Company Limited
Street/P.O.Box: 53 – A, Lawrence Road
Building: Nishat House
City: Lahore
State/Region: Punjab
Postfix/ZIP:
Country: Pakistan
Telephone: +92 42 111 11 33 33
FAX: +92 42 6367414
E-Mail:
URL: www.dgcement.com
Represented by:
Title: Chief Executive Officer
Salutation: Mr
Last Name: Mansha
Middle Name:
First Name: Raza
Department:
Mobile:
Direct FAX: +92 42 6367414
Direct tel: +92 42 111 11 33 33
Personal E-Mail: rmansha@dgcement.com
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Organization: Carbon Services(Private)Limited
Street/P.O.Box: 19 Davis Road
Building: 2nd Floor, Al Maalik,
City: Lahore
State/Region: Punjab
Postfix/ZIP:
Country: Pakistan
Telephone: +92-42-36313235 / 36313236
FAX: +92-42-36312959
E-Mail:
URL: www.carbon.com.pk
Represented by: Mr. Omar M. Malik
Title: Director
Salutation: Mr
Last Name: Malik
Middle Name: M
First Name: Omar
Department:
Mobile: +92-300-8463743
Direct FAX: +92-42-36312959
Direct tel: +92-42-36313235 / 36313236
Personal E-Mail: omar.malik@carbon.com.pk
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Organization: First Climate (Switzerland) AG
Street/P.O.Box: Stauffacherstr.45
Building:
City: Zurich
State/Region: Zurich
Postcode/ZIP: 8004
Country: Switzerland
Telephone: +41-44-298 2800
FAX: +41 44-298 2899
E-Mail: info@firstclimate.com
URL: www.firstclimate.com
Represented by:
Title: Board Member
Salutation: Mr
Last name: Lüchinger
Middle name:
First name: Alexander
Department:
Mobile:
Direct FAX: +41 44 298 28 99
Direct tel: +44 44 298 28 07
Personal e-mail: alexander.luechinger@firstclimate.com
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Annex 2
INFORMATION REGARDING PUBLIC FUNDING
There is no public funding involved in the project activity
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Annex 3
BASELINE INFORMATION
Captive Power Plant Emission Factor Determination
Fuel Characteristics
Density of diesel kg/l 0.87
NCV of diesel
BTU/lb 18,260
MJ/l 36.95
Emission coefficient of diesel tCO2/TJ 74.8
NCV of HFO
BTU/lb 17,308
GJ/t 40.2584
Emission factor of HFO tCO2/GJ 0.0788
NCV of natural gas
BTU/ft3 828
MJ/Nm3 30.85
Emission factor of natural gas tCO2/GJ 0.0583
Emission Factor of Captive Power Plant
Year
2007/08
Year
2008/09
Year
2009/10 Total
Total electricity generated by
captive power plant MWh/yr 130,689 148,129 146,406 425,224
HFO Consumption t/yr 1,154 3,653 1,646 6,452
Natural Gas Consumption Nm3 3,640,664 34,209,019 34,167,643 72,017,325
Diesel Consumption l/yr 322,143 323,126 333,233 978,502
Weighted Average Coefficient of
captive power plant tCO2/GJ 0.0601
Total energy consumption by
captive power plant in historical
years GJ 3328423.53
Emission factor for captive
power plant tCO2/MWh 0.4703
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Grid Emission Factor Determination
The grid emission factor has been determined according to “Tool to calculate the emission factor for an
electricity system” version 02.2.1 (hereafter referred to as “the Tool”)
Electricity baseline emission factor (EFGrid, CM, BL) is calculated ex-ante as a combined margin consisting
of a combination of operating margin (OM) and build margin (BM) factors according to the following
steps:
STEP 1: Identify the relevant electricity systems;
STEP 2: Choose whether to include off-grid power plants in the project electricity system (optional);
STEP 3: Select a method to determine the operating margin (OM);
STEP 4: Calculate the operating margin emission factor according to the selected method;
STEP 5: Calculate the build margin (BM) emission factor,
STEP 7: Calculate the combined margin (CM) emission factor.
Step 1 – Identify the relevant electricity systems
Pakistani DNA has not published any delineation of the project electricity system and a connected
electricity system. Moreover, the criteria provided in the “Tool to calculate the emission factor for an
electricity system” under Step 1 do not result in a clear grid boundary as
1) a spot market for electricity does not exist in Pakistan
2) there is no official data available with regard to the operation of the transmission line between
different electricity systems.
In such cases, the Tool suggests “to use a regional grid definition in the case of large countries with
layered dispatch systems (e.g. provincial/regional/national)” to distinguish a connected electricity system.
In Pakistan, the electricity supply business is a sort of monopoly of two companies. For Karachi city and
adjoining areas of Sindh and Balochistan, it is under Karachi Electric Supply Corporation (KESC).
For rest of the Pakistan it falls under Water and Power Development Authority (WAPDA). In 1998, as
part of the government’s privatization policy, the National Transmission & Despatch Company (NTDC)5
“was organized to take over all the properties, rights and assets obligations and liabilities of 220 KV and
500 KV Grid Stations and Transmission Lines/Network Transmission Lines/Network owned by Pakistan
Water and Power Development Authority (WAPDA). Both NTDC and KESC operate their own
transmission networks but they are also physically interconnected to each other at two points6 and trade
electricity in significant amounts7 in a sort that they both together constitute the national grid system,
which becomes the project electricity system also.
5 cf. www.ntdc.com.pk
6 One is the Jamshoro - BinQasim link in East of Karachi and other is HUBCO-KESC link in West of Karachi.
7 Actually 32% of total electricity supply in KESC in the year 2006/7 was purchased from NTDC. Cf.
PEPCO/National Transmission & Despatch Co. (NTDC)/Planning Power Department (NTDC) 2008: Electricity
Marketing Data (Power Systems Statistics), 32nd
issue, Updated up to 30th
June 2007. p. 90
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The project activity is connected to the grid of Faisalabad Electric Supply Company Limited (FESCO),
which is one of nine newly created distribution companies8 and connected to NTDC, which is part of the
national grid system.
Step 2: Choose whether to include off-grid power plants in the project electricity system (optional)
The Tool allows the project participant to choose between the following two options to calculate the
operating margin and build margin emission factor:
Option I: Only grid power plants are included in the calculation
Option II: Both grid power plants and off-grid power plants are included in the calculation.
Option I is chosen as data is publicly available only for grid power plants.
Step 3 – Select a method to determine the operating margin (OM)
The Tool offers four options for the calculation of the Operating Margin emission factor(s) (EFgrid,OM,y):
(a) Simple OM, or
(b) Simple adjusted OM, or
(c) Dispatch Data Analysis OM, or
(d) Average OM.
Information to carry out a detailed dispatch data analysis is not publicly available; therefore the dispatch
data analysis OM is not selected for the proposed project and the Simple OM option is chosen.
The Simple OM requires that the share of low-cost/must-run resources constitutes less than 50% of the
total net electricity generation of the national grid. In Pakistan, the share of low-cost/must-run resources
usually constitutes less than 50% of the total net electricity generation of the national grid.
According to the Tool, for simple OM, the emission factor can be calculated using either of the two
following data vintages:
Ex ante option: For grid power plants, a 3-year generation weighted average, based on the most
recent data available at the time of submission of the CDM-PDD for validation, without
requirement to monitor and recalculate the emissions factor during the crediting period. For off-
grid power plants, use a single calendar year within the 5 most recent calendar years prior to the
time of submission of CDM-PDD or
Ex post option: The year in which the project activity displaces grid electricity, requiring the
emission factor to be updated annually during monitoring. The data required to calculate the
emission factor for year y is usually only available later than six months after the end of year y.
Project proponents employ the “ex-ante option” for its operating margin calculation.
Step 4 - Calculate the operating margin emission factor according to the selected method
8 http://www.nepra.org.pk/lic_distribution.htm
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The simple OM emission factor is calculated as the generation-weighted average CO2 emissions per unit
of net electricity generated (tCO2/MWh) by all generating power plants serving the system, not including
low-cost/must-run power/units. The Tool offers two options for the calculation of the Simple OM.
Option A: Based on the net electricity generation and a CO2 emission factor of each power unit; or
Option B: Based on the total net electricity generation of all power plants serving the system and the fuel
types and total fuel consumption of the project electricity system (Option B);
Option B can only be used if:
(a) The necessary data for Option A is not available; and
(b) Only nuclear and renewable power generation are considered as low-cost/must-run sources and the
quantity of electricity supplied to the grid by these sources is known; and
(c) Off-grid power plants are not included in the calculation (i.e., if Option I has been chosen in Step 2)
In the Pakistani public available data, CO2 emission factor for each power generation unit is not available.
Only nuclear and renewable generation are considered as low-cost/must-run sources; furthermore, the
quantity of electricity supplied to the grid by these sources is known. Finally, off-grid plants are not
considered in the calculation; therefore, Option B is chosen.
For Option B, the Simple OM emission factor is calculated based on the net electricity supplied to the
grid by all power plants serving the system, not including low-cost / must-run power plants / units, and
based on the fuel type(s) and total fuel consumption of the project electricity system:
y Grid , OM simple,EF =
, , 2, ,* *i y i y CO i y
i
y
FC NCV EF
EG [Eq.7]
Where:
EF
Grid, OM simple, y is the simple operating margin CO
2 emission factor in year y (tCO2/MWh)
FCi,y
is the amount of fossil fuel type i consumed in the project electricity system in
year y (mass or volume unit)
NCVi,y
is the net calorific value (energy content) of fossil fuel type i in year y (GJ / mass
or volume unit)
EFCO2,i,y
is the CO2 emission factor of fossil fuel type i in year y (tCO
2/GJ)
EGy is the net electricity generated and delivered to the grid by all power sources
serving the system, not including low-cost / must-run power plants / units, in year
y (MWh)
i are all fossil fuel types combusted in power sources in the project electricity
system in the baseline period
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y is the relevant year as per the data vintage chosen in step 3.
Step 5. Calculate the build margin (BM) emission factor
In terms of vintage of data, project participants can choose between one of the following two options:
Option 1. For the first crediting period, calculate the build margin emission factor ex-ante based on the
most recent information available on units already built for sample group m at the time of CDM-PDD
submission to the DOE for validation. For the second crediting period, the build margin emission factor
should be updated based on the most recent information available on units already built at the time of
submission of the request for renewal of the crediting period to the DOE. For the third crediting period,
the build margin emission factor calculated for the second crediting period should be used. This option
does not require monitoring the emission factor during the crediting period.
Option 2. For the first crediting period, the build margin emission factor shall be updated annually, ex-
post, including those units built up to the year of registration of the project activity or, if information up to
the year of registration is not yet available, including those units built up to the latest year for which
information is available. For the second crediting period, the build margin emissions factor shall be
calculated ex-ante, as described in option 1 above. For the third crediting period, the build margin
emission factor calculated for the second crediting period should be used.
In accordance with the ex-ante calculation of the operating margin (see Step 3), Option 1 is chosen.
The sample group of power units m used to calculate the build margin consists should be determined as
per the following procedure, consistent with the data vintage selected above:
(a) Identify the set of five power units, excluding power units registered as CDM project activities,
that started to supply electricity to the grid most recently (SET5-units) and determine their annual
electricity generation (AEGSET-5-units, in MWh);
(b) Determine the annual electricity generation of the project electricity system, excluding power
units registered as CDM project activities (AEGtotal, in MWh). Identify the set of power units,
excluding power units registered as CDM project activities, that started to supply electricity to
the grid most recently and that comprise 20% of AEGtotal (if 20% falls on part of the generation
of a unit, the generation of that unit is fully included in the calculation) (SET≥20%) and determine
their annual electricity generation (AEGSET-≥20%, in MWh);
(c) From SET5-units and SET≥20% select the set of power units that comprises the larger annual
electricity generation (SETsample); Identify the date when the power units in SETsample started to
supply electricity to the grid. If none of the power units in SETsample started to supply electricity
to the grid more than 10 years ago, then use SETsample to calculate the build margin. Ignore steps
(d), (e) and (f).
Otherwise:
(d) Exclude from SETsample the power units which started to supply electricity to the grid more than
10 years ago. Include in that set the power units registered as CDM project activity, starting with
power units that started to supply electricity to the grid most recently, until the electricity
generation of the new set comprises 20% of the annual electricity generation of the project
electricity system (if 20% falls on part of the generation of a unit, the generation of that unit is
fully included in the calculation) to the extent is possible. Determine for the resulting set
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(SETsample-CDM) the annual electricity generation (AEGSET-sample-CDM, in MWh);
If the annual electricity generation of that set is comprises at least 20% of the annual electricity
generation of the project electricity system (i.e. AEGSET-sample-CDM ≥ 0.2 × AEGtotal), then use the
sample group SETsample-CDM to calculate the build margin. Ignore steps (e) and (f).
Otherwise:
(e) Include in the sample group SETsample-CDM the power units that started to supply electricity to the
grid more than 10 years ago until the electricity generation of the new set comprises 20% of the
annual electricity generation of the project electricity system (if 20% falls on part of the
generation of a unit, the generation of that unit is fully included in the calculation);
(f) The sample group of power units m used to calculate the build margin is the resulting set
(SETsample-CDM->10yrs).
As shown in the attached EXCEL file, AEGSET-5-units is largely below AEGSET-≥20%, so SET≥20% is selected
as SETsample. Also, given that there are not CDM power plants that can be included and the SETsample
includes plants that are operating since more than 10 years, SETsample is equivalent to SETsample-CDM->10yrs.
Then, the build margin emissions factor is the generation-weighted average emission factor (tCO2/MWh)
of all power units m during the most recent year for which power generation data is available, calculated
as follows:
Grid , BM , yEF =
m
ym
m
ymELym
EG
EFEG
,
,,, *
Eq.13]
Where:
EFGrid, BM, y is the Build Margin CO2emission factor in the year y (tCO2/MWh)
EGm,y is the net quantity of electricity generated and delivered to the grid by power unit m in the
year y (MWh)
EFEL,m,y is the CO2 emission factor of power unit m in year y (tCO2/MWh)
m are the power units included in the build margin
y is the most recent historical year for which the power generation data is available
The CO2 emission factor of each power unit m (EFEL,m,y ) should be determined as per the guidance in step
4 (a) for the simple OM, using options A1, A2 or A3, using for y the most recent historical year for which
power generation data is available, and using for m the power units included in the build margin.
If the power units included in the build margin m correspond to the sample group SETsample-CDM->10yrs, then,
as a conservative approach, only option A2 from guidance in Step 4 (a) can be used and the default values
provided in Annex 1 of the Tool shall be used to determine the parameter ηm,y.
On the basis of the data available, option A2 is used:
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Step 6 - Calculate the combined margin emission factor
The calculation of the combined margin (CM) emission factor (EFgrid,CM,y) is based on one of the
following methods:
(a) Weighted average CM; or
(b) Simplified CM.
The weighted average CM method (option A) should be used as the preferred option.
The simplified CM method (option b) can only be used if:
The project activity is located in a Least Developed Country (LDC) or in a country with less than
10 registered projects at the starting date of validation; and
The data requirements for the application of step 5 above cannot be met.
Method (a), weighted average CM, is selected.
Therefore, the combined margin emission factor is calculated as follows:
EFgrid,CM,y = wOM * EFgrid,OM,y + wBM * EFgrid,BM,y [Eq.14]
Where:
EFGrid, BM, y is the build margin CO2 emission factor in the year y (tCO2/MWh)
EFGrid, OM, y is the operating margin CO2 emission factor in the baseline period (tCO2/MWh)
wOM is the weighting of operating margin emissions factor (%)
wBM is the weighting of build margin emissions factor (%).
The default weights are as follows: wOM = wBM = 0.5.
The attached EXCEL sheet reflects the methodological selections indicated above, and provides the final
result.
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03
CDM – Executive Board
48
Annex 4
MONITORING INFORMATION
Please refer to section B.7.1 and B.7.2.
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