[biomass boiler heating fueled by agricultural...

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MRV Demonstration Study (DS) using a Model Project 2012 Final Report

[Biomass Boiler Heating Fueled by Agricultural Waste]

(Implemented by Joint Venture of Mitsui Consultants and Japan Environmental Consultants)

Study Partners Carbon Finance Unit (CFU) of Ministry of Environment of Moldova,

Japan Weather Association (JWA) Location of Project/Activity

Republic of Moldova

Category of Project/Activity

Biomass Utilization

Description of Project/Activity

Many communities in poor rural and agricultural regions are experiencing difficulty securing a source of heating in the winter season due to the rising price of fossil fuels in Moldova. To respond this problem, Japan International Cooperation Agency (JICA) and United Nations Development Programme (UNDP) have begun a program to assist these communities in switching from fossil fuels such as coal to biomass fuel in Moldova. Straw-fired boilers funded by the Grant Aid for Grass-roots Human Security Project program of the Japanese Ministry of Foreign Affairs and the World Bank (WB) and pellet boilers funded by Moldova Social Investment Fund (MSIF) were selected as target facilities for this study. Green House Gas (GHG) emissions will be reduced by switching from fossil fuels such as coal to biomass fuel.

Eligibility Criteria [Criteria 1] Fossil fuel used for boilers shall be replaced by biomass residues. [Criteria 2] The project activity involves installation of (a) new boiler(s) to make energy use of biomass residue including biomass pellet for heat generation whose capacity is larger than 45 kW and energy efficiency is higher than 80%. [Criteria 3] The biomass residue would otherwise be unutilized without the project activity. [Criteria 4] The heat generated in the boiler would not be used for power generation.

Reference Scenario and Project/Activity Boundary

Identified alternative scenario regarding how to handle generated heat and biomass residue and established the most appropriate reference scenario by barrier analysis.

Without the project, existing boilers would continue to operate using the same fossil fuels.

Without the project, biomass residue would be thrown away or left in a farm field to decompose under aerobic conditions or burned without management and not utilized for energy.

Project boundaries are as follows. GHG emissions related to operation of agricultural machinery to

collect, bale, and transport biomass residue used for the project.

GHG emissions related to the transportation of biomass burned in a boiler.

GHG emissions related to the operation of a pelletizing system (crushing, drying, pelletizing)

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GHG emissions related to use of electricity or consumption of fossil fuel at the project site – e.g. use of a tractor to place biomass residue into a boiler, or a shredder for biomass residue. However, fossil fuels mixed with biomass is not included.

Calculation Method Options

Four different calculation methods were prepared as follows. 1-1: Use heat meter to estimate reference emission. Use default values for emissions related to transportation process etc. 1-2: Use heat meter to estimate reference emission. Use project specific value for emission related to transportation process etc. 2-1: NOT use heat meter to estimate reference emission. Use default values for emission related to transportation process etc. 2-2: NOT use heat meter to estimate reference emission. Use project specific value for emission related to transportation process etc.

Default Values set in Methodology

[Default values] CO2 emission factor for fossil fuel

Coal (Anthracite): 0.0983 tCO2/GJ Diesel Oil: 0.0741 tCO2/GJ Source: Implied CO2 emission factors has been deduced from the National Inventory Report of the Republic of Moldova (information from Climate Change office, Ministry of Environment of Moldova)

CO2 emission factor for diesel trucks 0.0011 tCO2/km Source: Diesel HGV Road Freight Conversion Factors, 2011 Guidelines to Defra / DECC's GHG Conversion Factors for Company Reporting, Department of Energy and Climate change, UK

Net calorific value of diesel 35.7 GJ/kl Source: Based on “Instruction for compiling Statistical Report No.1-BE “Energy Balance”, approved through Order No. 88 from 3 October 2012”

Boiler efficiency under the reference scenario 1.0 to ensure conservativeness Source: Based on this study

Moisture content of biomass residue Biomass pellet: 11% Straw (Indoor storage, Covered storage): 20% Straw (Open field storage): 30% Fuel wood: 40% Source: Based on this study

Project emission factor Non-processed biomass residue: 0.02 Biomass pellet: 0.10 Source: Based on this study

Net calorific value of biomass residue (GJ/t) Wheat straw: 18.04 Soya straw: 18.04 Corn: 17.95 Sunflower shell: 20.02 Reed: 17.60

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Wood (elm): 19.10 Wood (acasia): 20.11 Vine: 18.92 Wood (pine): 19.99 Wood (poplar): 19.18 Wood (wicker): 19.18 Weeping willow: 18.94 Furniture fabrication residues: 18.92 Source: Measured in this study and “Report regarding the scientific and innovational activity, based on the contract “Assessment of calorific value of lignocelluloses biomass collected from different climatic zones of the Republic of Moldova””

[Project specific value] Grid electricity CO2 emission factor

0.4434 tCO2/MWh Source: Moldova 2010 Grid Emission Factor Calculation

Boiler efficiencies Existing boiler (values were provided by CFU) 0.92 (natural gas) 0.67(coal) Straw boiler (based on manufacturer catalog) 0.81 (Hirtopul Mare G*) 0.80 (Hirtopul Mare K*) 0.815 (Viisoara G., Chiscareni L) Biomass pellet boiler (based on manufacturer catalog) 0.86 (Moldagrotechnica, Fundurii Vechi Comminity Center and Balatina Community Center) [*G=Gymnasium, K=Kindergarten, L=Lyceum]

Taking into account of variations in boiler efficiency caused by the operational variation of boilers, we adopted 0.5 as the correction factor of boiler efficiency and multiplied the boiler efficiency by the factor.

Monitoring Method Cumulative heat generated by a boiler (QBM,y)[GJ/y]: Measured continuously via heat meter. Weight of biomass residue inputs (PCBM,y)[t/y]: Count straw bales or pellet buckets fed into boiler after determining average bale weight or bucket weight of pellets.

Result of Monitoring Activity

The monitoring period is divided into two periods. During the first monitoring period, outside temperature was higher than usual. For this reason, there were sites where boilers was operated only intermittently.

First Monitoring Period ・Hirtopul Mare Gymnasium: November 27 - November 30, 2012 ・Hirtopul Mare Kindergarten: November 7 - November 30, 2012 ・Viisoara Gymnasium: November 14 - November 30, 2012 ・Chiscareni Lyceum & Gymnasium: November 14 - November 29, 2012 ・Moldagrotehnica: November 8 - November 30, 2012

Second Monitoring Period ・Hirtopul Mare Gymnasium: December 1, 2012 – January 23, 2013 ・Hirtopul Mare Kindergarten: December 1, 2012 – January 23, 2013 ・Viisoara Gymnasium: December 1, 2012 – January 23, 2013 ・Chiscareni Lyceum: December 1, 2012 – January 23, 2013 ・Moldagrotehnica: December 1, 2012 – January 23, 2013

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・Fundurii Vechi Multifinctional Community Center: January 7 – January 23, 2013 ・Balatina Multifinctional Community Center: January 14 – January 23, 2013

GHG Emissions and its Reductions

Emission reductions based on second monitoring period data (unit: tCO2) Hirtopul Mare Kindergarten

算定手法 RE (2) PE (2) ER (2) REy PEy ERy 1-1 25.29 0.51 24.78 74.93 1.51 73.42 1-2 25.29 0.35 24.93 74.93 1.04 73.87 2-1 27.70 0.55 27.14 82.07 1.63 80.41 2-2 27.70 0.35 27.35 82.07 1.04 81.04

[RE=Reference Emissions, PE=Project Emission, ER=Emission Reductions]

Note: (2): Second monitoring period (54 days) Yearly value: calculated by set the boiler annual operation date as 160

days. Method and Result of Verification

We entrusted the verification of the monitoring results to East-Europe Consulting Associates (EECA) and Rina Simtex Organismul de Certificare (Rina). As EECA had no experience of CDM related project, the outputs were not sufficient. On the other hand, Rina has experience enough to do the verification. Verifiers had commented on the monitoring reports prepared by CFU and all of them were solved with evidences provided by CFU.

Environmental Impacts

<Smoke Particulate Matter > Due consideration must be given to straw boiler smoke stack height and selection of boiler sites because there is a possibility that the concentration of smoke/particulate matter may exceed European Union (EU) standards. In the case of pellet boilers, environmental impact is minimum due to the provision of a dust collector.

<Ash> Boiler ash is to be utilized as fertilizer in farm fields.

Promotion of Japanese Technology

Establishment of a long-term fuel supply chain and maintenance service system will work to promote Japanese technologies. The supply chain and service system are both assisted and funded by JICA's Grant Aid project due to superiority of Japanese pellet boiler technology.

Sustainable Development in Host Country

Effective use of unutilized domestic resources Creation of new industry Job creation Positive economic impact of domestic investment as outbound currency flows are reduced

MRV DS Report in 2012

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Study Title: MRV Demonstration Study using a Model Project “Biomass Boiler Heating Fueled by Agricultural Waste” Study Entity: Joint Venture of Mitsui Consultants and Japan Environmental

Consultants 1. Study Implementation Scheme: (1) Contractor

MRV Methodology establishment support tasks (plan, design/prototype format establishment, demonstration study analysis, verification/correction)

Japan Weather Association (JWA)

Conduct monitoring / Assist in collection of information in Moldova

Carbon Finance Unit (CFU) (Host country)

Third-party verification entities (To verify feasibility of proposed MRV)

A) Rina Simtex Organismul de Certificare SRL (Romania) B) “East-Europe Consulting Association” SRL (Host country)

(2) Other organizations Installation of instrument devices / Assistance in data collection

“PIROTERM SERVICE” SRL (Host country)

Measure of Net Calorific Value

State Agrarian University (State Agricultural University)

2. Overview of Project/Activity (1) Description of Project/Activity Contents:

This project will reduce CO2 emission by switching fossil fuel (coal, natural gas) to biomass fuel by executing this project. There are seven targeted project sites, and a total of ten straw boilers and pellet boilers are planned for installation (See Table 2-1).

Table 2-1 Summary of Project/Activity Contents Facility

No. Facility Name1

Project/Activity Contents and Boiler Capacity

Counterpart

Owner Heat

Meter*2 1 Hirtopul Mare Kindergarten 150 kW Straw Boiler x1 CFU Village 1 unit 2 Hirtopul Mare Gymnasium 190 kW Straw Boiler x1 CFU Village 1 unit

3 Chiscareni Lyceum & Gymnasium

600 kW Straw Boiler x1 CFU Village 1 unit

4 Viisoara Gymnasium 300 kW Straw Boiler x1 CFU Village 1 unit

5 “Moldagrotehnica” SA 75 kW Pellet Boiler x2 (One of boiler use coal)

CFU Moldagro-

tehnica 2 units

6 Funduri Vechi Community Center

50 kW Pellet Boiler x2 CFU Village 1 unit

7 Balatina Community Center 50 kW Pellet Boiler x2 CFU Village 1 unit Total 10 Boilers Total 8 units


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Note: *1) Gymnasium：Elementary/Middle High School (1~ 9 Grade)、Lyceum：High School (10 ~12 Grade) *2) SHARKY 775

(2) Situations of Host Country: According to the “Energy Strategy of the Republic of Moldova until 2020”, the country

has set an objective of increasing the share of renewable energy in the total energy mix from 6% in 2010 to 20% in 2020. The “Energy Strategy of the Republic of Moldova until 2030” stipulates two targets: 1) to increase the share of biofuels to at least 10% of all fuels used in 2020 and 2) to increase the share of annual electricity production from renewable energy sources, to 10% by 2020.

As a further goal and a countermeasure against climate change, “ Low Emissions Development of the Republic of Moldova to the year 2020” sets the target of reducing total national GHG emissions by 2020 by no less than 25% of the base year (1990) level. (3) Complementarity of the CDM:

Project/Activity targets biomass boilers provided by Grant Assistance for Grass-roots Human Security Project and World Bank and pellet boilers installed at private companies at their own expense.

As a part of “The Preparatory survey of the Project for Effective Use of Biomass Fuel in the Republic of Moldova" conducted by Japan International Cooperation Agency (JICA), pellet boilers are to be installed at several educational institutions in the central region.

Project activities contribute to GHG emission reduction by replacing fossil fuel with biomass fuel at all sites. However, under the Clean Development Mechanism (CDM) system of the current Kyoto Protocol, obtaining approvals from international communities for emission credit obtained from Grant Aid project is difficult due to the impact of the additionality clause of the system. Thus, few Grant Aid projects were approved as CDM projects.

Moreover, amount of GHG emission reduction is small, and there are many project sites. Therefore, even if the project is approved to be CDM project, it is considered unlikely to be profitable due to the cost and labor associated with CDM certification process.

If emission trade is established by JCM/BOCM in this project, not only it can be used for biomass boilers in Moldova, but also it can be applied for biomass boilers in other countries. (4) Initial Investment for the Model Project:

Project/Activity's initial investment (including VAT) is stated in Table 2-2. (Exchange rate: 1 Moldova Lei = 7 Yen)


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Table 2-2 Approximate Initial Investment

Source: Interview with Moldagrotehnica 3. Contents of the Study (1) Issues to be addressed in the Study:

Third-party verification entities (Verifiers) National Institute of Standardization and Metrology (NISM) is initially expected to be a

candidate for the verifier. However, since the survey found that it was not an appropriate organization for the verifier, verifiers were decided from a recommended list of private companies and International Organization for Standardization (ISO) certified institutions provided by CFU. As a result, two private companies (based in Romania and Moldova respectively) were selected and contracted for the verification.

Heating Season Heating season was assumed for the purposes of this investigation, to begin in the

beginning of October, and the monitoring period was set to begin on October 1st. This study set two monitoring periods (first period: 15 October 2012 – 30 November 2012, second period: 1 December 2012 – 23 February 2013). However, it actually began in the middle of November due to the warm winter experienced in the year 2012. The first monitoring period was consequently shortened by more than a month.

(2) Process to Solve the Issues in the Study: On-Site Work: 1st Round (Period: July 8 - July 18) Study Contents:

Meeting with Minister of Environment, Mr. Gheorghe SALARU: the Minister agreed to designate the CFU under Ministry of Environment as the primary counterpart and cooperation for the survey team

Meeting with a local instrument device installation contractor, PIROTERM SERVICE SR, for installation of heat meters, data recording, and maintenance

Visited pellet factories and candidate sites for project activities Obtained information regarding the cost of producing pellets, electricity, etc

On-Site Work: 2nd Round (Period: September 22 - October 6) Study Contents:

(Lei) (Lei) (Lei) (Lei)Hirtopul Mare Kindergarten150kW Straw Boiler (RAU-2-181)Hirtopul Mare Gymnasium190kW Straw Boiler (AKU-190)Chiscareni Lyceum & Gymnasium600kW Straw Boiler (RAU-2-600)Viisoara Gymnasium300kW Straw Boiler (RAU331)“Moldagrotehnica” SA75kW Pellet Boiler (CGM75-75kW)Funduri vechi community center50kW Pellet Boile (CGM50-50kW)Balatina community center50kW Pellet Boile (CGM50-50kW)

3,081,840 210,000 49,000 3,340,840 23,385,880Total

BoilerPrice Boiler Cost

863,800

863,800

FacilityNo.

TotalAmount(Yen)

3,870,160

4,210,360

7,537,600

4,957,960

1,082,200

123,400

7 43,200 2 86,400 30,000 7,000 123,400

6 43,200 2 86,400 30,000 7,000

708,280

5 58,800 2 117,600 30,000 7,000 154,600

4 671,280 1 671,280 30,000 7,000

601,480

3 1,039,800 1 1,039,800 30,000 7,000 1,076,800

2 564,480 1 564,480 30,000 7,000

Facility Name UnitTotal

Amount(Lei)

1 515,880 1 515,880 30,000 7,000 552,880

Piping/Electrical

Work

Transport/Installation


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Visited target sites. Requested that prospective boiler owners/managers (School principals, etc.) cooperate and take part in the study and grant permission for installing heat meters. Determined conditions of primary storage areas (close to farm field) and secondary storage areas (near a boiler) for baled straw.

Visited three pellet factories (BIOS-GRM SRL, Pohoarna Agro SRL, Floarea Soarelui SRL) and obtained information regarding transport distances for raw materials and pellets and electricity consumption.

Conducted a seminar titled "CO2 Reduction Monitoring Demonstration Study for New bilateral Offset Credit Mechanism between Moldova and Japan" in a conference room in Ministry of Environment on September 28. CFU employees, officials from the State Ecological Inspectorate, Energy Efficiency Agency (under Ministry of Economy), Climate Change Office (Ministry of Environment), and candidates for the role of verifier participated the seminar.

Visited Agrarian State University of Moldova for a meeting with Professor Grigore MARIAN. CFU requested research into calorific values of wheat straw, soy straw, maize (corn) residuals, sunflower husk, and fire woods.

Meeting with 4 private companies for the candidate for the role of verifier and requested them to provide a proposal and cost estimate for the study.

On-Site Work: 3rd Round (Period: December 8 - December 22) Study Contents:

Selected RINA SIMTEX Organismul de Certificare SRL (Head Quarter: Bucharest, Romania) and I.M. “East-Europe Consulting Associates” SRL (Head Quarter: Chisinau, Moldova) for the verifier and commissioned for the study.

Selected two new community centers in Glodeni Rayon as the project activity sites since it was found that the greenhouse farm, "Fructagrocom", initially selected for the target site would not operate during the winter season this year.

On-Site Work: 4th Round (Period: February 10 - February 22) Study Contents:

Meeting with Minister of Environment, Mr. Gheorghe SALARU: the Minister agreed the cooperation for implementation of JCM/BOCM project.

Visited Agrarian State University of Moldova for a meeting with Professor Grigore MARIAN. Professor MARIAN reported the result of calorific values of biomass residuals, Reed, and woods by regions. The study concluded no significant difference in calorific values between Northern, Central, and Southern part of Moldova. Project values of NCV are set based on these results.

Meeting with Mr. Dumitru Braga of East-Europe Consulting Associates (Verifier). Questions and answers for CL and CAR of first verification report for the first monitoring report.

Meeting with Mrs. Mariana IONESCU of Rina Simtex (Verifier). CL and CAR of first verification report for the first monitoring report had been already resolved. Requested early submission of second verification report.

Measured moisture contents of woods by a moisture meter at Chiscareni Lyceum & Gymnasium and Viisoara Gymnasium.


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4. Results of MRV Demonstration Study (1) GHG Emission Reduction via Implementation of Project/Activity: <CO2 Emission Reductions by Project Activities>

GHG Emissions will be reduced by switching the fuels consumed in the boilers from fossil fuels such as coal to biomass residual fuels such as wheat straw.

<MRV Methodology for quantitative evaluation of GHG Emissions>

Suggested MRV Methodology refers to CDM Methodology (AM0036 Fuel switch from fossil fuels to biomass residues in boilers for heat generation) and Small-Scale Methodology (AMS I.C. Thermal energy production with or without electricity). The contents of the MRV Methodology compared with CDM Methodologies are described below;

1) Reference Emissions

Reference emissions from fossil fuel combustion in the existing boilers are determined by multiplying the heat values generated with biomass residue combustion that would have been generated from fossil fuel combustion in absence of the project activity. It is normally recognized as difficult and unrealistic to correctly weigh the biomass residue and measure or estimate the moisture content ratio (which is deeply related to the Net Calorific Value) with a high degree of accuracy.

Though we still have employ this calculation method for CDM project, we propose the method to calculate the reference emissions by measuring the heat value generated in the boilers using heat meters, which enable us to measure the heat value more simply and with a high degree of accuracy. That will allow us to monitor the heat value generated by the biomass residue combustion in the boiler more easily and accurately regardless of the kinds of biomass and variations in moisture content.

In the case where heat meters are not used, the monitoring of moisture content of biomass residue has a significant impact on the calculated heat value. In order to simplify the monitoring process, we set conservative default values for the moisture content in each storage condition (e.g. indoor/outdoor storage).

2) Project Emissions

Project emissions are calculated based on the amount of fossil fuels (diesel oil) used in the process of collection, transportation of the biomass residue and loading of the biomass fuel into boilers, as well as electricity consumed for pelletizing. Taking into account that the biomass residues planned for fuel use are locally produced, the amount of excess fossil fuel used for the collection, transporting and input process to boilers is not thought to be large. We determined conservative default values for project CO2 emission factors based on the information collected during site survey and simplified the calculation method of project CO2 emissions, furthermore we made it possible to calculate the conservative emission reductions despite the inherent difficulty in monitoring and measuring. Through our survey, it was found that the biomass residues have often been purchased in nearby neighborhoods and horse carts are also often used for transporting the biomass fuels. Therefore as the CO2 emissions generated by fossil fuel combustion are considerably small, and we can set a default “project emission factor” at 0.02 for all these processes will be appropriate and conservative enough.


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This factor will be multiplied by the reference emission to estimate the project emission.

The project emission factor for pelletizing is set at 0.1 based on the analysis of data obtained in this study.

In order to reduce the number of items monitored, we adopted a CO2 emissions calculation method that sets the unit CO2 emissions per ton of biomass residue in each process of collection, transporting, pelletizing and fuel input based on the findings of monitoring performed over a specified time period and multiply these unit CO2 emissions by annual consumption quantities of biomass residue. (2) Eligibility Criteria for MRV Methodology Application: This methodology is applicable to projects that fully satisfy the following cases.

[Eligibility Criteria] Check Criteria 1 Fossil fuel used for boilers shall be replaced by biomass residues Criteria 2 The project activity involves installation of (a) new boiler(s) to make

energy use of biomass residue including biomass pellet for heat generation whose capacity is larger than 45 kW and energy efficiency is more than 80%.

Criteria 3 The biomass residue would otherwise be unutilized or poorly utilized without the project activity.

Criteria 4 The heat generated in the boiler is not used for power generation. [Reason for the additional emission reductions] Criteria 1: Switching boiler fuel supply from fossil fuels to biomass residues will ensure a

reduction of CO2 emissions from fossil fuel combustion in the existing boilers. Criteria 2: Existing boilers should not be used as biomass boilers. Therefore fossil fuel would

be used in the existing boilers if the project was not been conducted. This will ensure that the fuel used before being switched into agricultural residue is fossil fuel. Requirements for the newly installed boilers are that the boilers would be biomass boilers burning agricultural residues such as wheat straw or biomass pellets, and the boiler combustion ratio is over 0.8 which corresponds the lowest ratio of operated biomass boilers in Moldova. Besides, boiler capacity has been set to over 45 kW so that small-sized boiler will be excluded.

Criteria 3: It is ensured that this project has no impact on other uses of the biomass residues. Criteria 4: The heat value generated from biomass boiler should not be used for power

generation.

(3) Calculation Method Options: Calculation Method 1-1: Reference emissions are calculated from values measured with heat

meters. Project emissions from collection, transporting and fuel input process including fossil fuel consumption, are calculated with default values.

Calculation Method 1-2: Reference emissions are calculated from values measured with heat meters. Project emissions from collection, transporting and fuel input process including fossil fuel consumption, are calculated with project specific values.

Calculation Method 2-1: Reference emissions are calculated from annual consumption of biomass residue. Project emissions from collection, transporting and fuel input process including fossil fuel consumption, are calculated with default


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values. Calculation Method 2-2: Reference emissions are calculated from annual consumption of

biomass residue. Project emissions from collection, transporting and fuel input process including fossil fuel consumption, are calculated with project specific values.

Use the default values for project emission

from fossil fuels

CalculationMethod 1-1


Yes

No

Calculation Method 2-1


Yes

No

Use heat meter to measure accumulated heat

generation by boiler

Use the default values for project emission

from fossil fuels

Yes

No

Figure 4-1 Calculation Method Options

(4) Necessary Data for Calculation:

Table 4-1 Information/Data Table Monitoring parameters

Description of data Units Op.1-1 Op.1-2 Op.2-1 Op.2-2 Accumulated heat generation from biomass residues in boilers in year y GJ/y v v Consumption of biomass residue k (wet basis) in boiler in year y t/y v v v

Fixed parameters (default or project specific value)

Description of data Units Op.1-1 Op.1-2 Op.2-1 Op.2-2 Moisture content of biomass residue (wet basis) % v v Net calorific value of biomass residues (dry) GJ/t v v Average net efficiency of heat generation of the existing boiler v v v v Average net efficiency of heat generation of the biomass boiler v v CO2 emission factor of the fossil fuel i displaced by biomass residues tCO2/GJ v v v v Consumption of biomass residue k (wet basis) in boiler in the selected period pd

t/period v v

Fossil fuel i consumption in collection of biomass residue in the selected period pd

t/period v v

Net calorific value of the fossil fuel i used for biomass residue collection

GJ/t v v

CO2 emission factor of the fossil fuel i used for biomass residue collection

tCO2/GJ v v

Transported quantity of biomass residues (raw material) in the selected period pd

t/period v v

Average truck load of biomass residues (raw material) in the selected period pd

t/truck v v

Average round trip distance (raw material transportation) in the selected period pd

km v v


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Average CO2 emission factor for the trucks transporting biomass residue in the selected period pd

tCO2/km v v

*CO2 emission factor of electricity tCO2/MWh v v

*Transported quantity of biomass pellet in the selected period pd t/period v v *Average truck load of biomass pellet in the selected period pd t/truck v v *Average round trip distance (pellet transportation) in the selected period pd

km v v

*Average CO2 emission factor for the trucks transporting pellet in the selected period pd

tCO2/km v v

Fossil fuel i consumption in boiler site operation in the selected period pd

t/period v v

Net calorific value of the fossil fuel i used for boiler site operation GJ/t v v CO2 emission factor of the fossil fuel i used for boiler site operation tCO2/GJ v v

(5) Default Value(s) Set in MRV Methodology: [Default Values]

Table 4-2 Default values Types Value Source CO2 emission factor (tCO2/GJ) Coal (Anthracite) 0.0983 Implied CO2 emission factors has been deduced from

the National Inventory Report of the Republic of Moldova (information from Climate Change office, Ministry of Environment of Moldova)

CO2 emission factor (tCO2/GJ) Diesel 0.0741

CO2 emission factor (tCO2/km) Diesel truck 0.0011

Diesel HGV Road Freight Conversion Factors, 2011 Guidelines to Defra / DECC's GHG Conversion Factors for Company Reporting, Department of Energy and Climate change,UK

Net calorific value of fossil fuel (GJ/kl) Diesel 35.7

Based on “Instruction for compiling Statistical Report No.1-BE “Energy Balance”, approved through Order No. 88 from 3 October 2012”

Efficiency of existing boiler Coal boiler 1.0

Water contents of biomass residue (%)

Biomass pellet 11％

Based on this study

Straw (Indoor storage, Covered storage) 20%

Straw (Open field storage) 30％

Fuel wood 40％

Net calorific value of biomass residue (GJ/t)

Wheat straw 18.04

Faculty of agricultural Engineering and Auto transportation Department of Machinery maintenance and Material engineering Laboratory of Solid Biofuels State Agrarian University of Moldova Report regarding the scientific and innovational activity, based on the contract “Assessment of calorific value of lignocelluloses biomass collected from different climatic zones of the Republic of Moldova”

Soya straw 18.04 Corn 17.95 Sunflower shell 20.02 Reed 17.60 Wood (elm) 19.10 Wood (acasia) 20.11 Vine 18.92 Wood (pine) 19.99 Wood (poplar) 19.18 Wood (wicker) 19.18 Weeping willow 18.94 Furniture fabrication residues 18.92

Project emission factor Non-processed biomass residue 0.10 Based on this study Biomass pellet 0.02

Project emission factor (CO2 emissions from each process of collection, transporting, pelletizing and input to the boiler of biomass residue)


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Since biomass residues planned for fuel use are locally produced, the amount of excess fossil fuel used for the collection, transporting and input process to boilers is not thought to be large. We surveyed the quantity of diesel fuel in these processes and calculated the ratio of the project emissions to the reference emissions.

When the raw biomass residue is directly fed to boilers, fossil fuel used by vehicles is quite small because the distance from fields to storages and storages to boilers is short, furthermore sometimes horse cart is used in the transporting process. On the other hand, project emissions associated with pellet boilers are bigger than the straw boiler case. That is because the pellet transporting distance becomes longer for two routs with which raw materials and pellets are transported from fields to pellet plants and pellet plants to boilers, and electricity is used in the pellet production.

We established one calculation option in which project emissions will be calculated by multiplying a factor by the reference emission. Setting this factor, we calculated the reference emission and project emission using data of the second monitoring period (see Table 4-3). This results shows that the project emissions from the straw boilers are 1 to 2 % of the reference emissions. On the other hand, the ratios for the pellet boilers at the two community centers are slightly bigger. This result is not recognized reliable value because the monitoring periods for those boilers are shorter than one month and the pellet supplier had been changed during the term.

When the raw biomass residue is directly fed to boilers (upper row of Table 4-3), the project emission was calculated at 0.12tCO2. In the result, the ratio of the project emission to the reference emission is estimated as 1.2%. The reason why the ratio is very small is because the distance of transporting is small and a horse cart is often used. Therefore we set a ratio as 0.02 (2.0%) to ensure conservativeness.

The ratio of the project emission to the reference emission of pellet (lower row of Table 4-3) is under 1%. The reason why the ratio in case of “Moldagrotehnica” is quite small is because biomass residues (sunflower shell) do not need to be transported from fields to the pellet factory where the residue generated from the sunflower oil production process is used for the pellet. So the project emissions might be larger in the other case. We have set a conservative default PE/RE ratio of 0.1 (10%).

Table 4-3 Reference Emissions and Project Emissions during the First Monitoring Period Site RE PE PE/RE

Hirtopul Mare Kindergarten 25.29 0.35 0.0138 Hirtopul Mare Gymnasium 14.15 0.23 0.0163 Chiscareni Lyceum & Gymnasium 44.00 0.92 0.0209 Viisoara Gymnasium 15.10 0.28 0.0185 “Moldagrotehnica” SA 11.87 0.12 0.0101 Funduri Vechi Community Center 1.99 0.13 0.0653 Balatina Community Center 1.24 0.16 0.1290

Taking into account the above results, we have set 0.02 to the straw boiler and 0.10 to

the pellet boiler as the default values for the project emissions. This default values should be reviewed on several kind of cases and using all data monitored during one heating season.


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[Project specific values]

Table 4-4 Project specific values Unit Types Value Source CO2 emission factor

tCO2/MWh Electricity 0.4434

Moldova 2010 Grid Emission Factor calculation, tCO2/MWh (for the second and third crediting period). Author – Dr. Ion Comendant (information from Climate Change office, Ministry of Environment of Moldova)

Boiler efficiency

Existing boiler Coal 0.67 Carbon Finance Unit of Moldova Hirtople Mare G. Straw 0.81

Manufacture’s Catalogue

Hirtople Mare K. Straw 0.80 Viisoara G. Straw 0.815 Chiscareni L. Straw 0.815 Moldagrotechnica Biomass pellet 0.86 Fundurii Vechi Comminity Center Biomass pellet 0.86

Balatina Community Center Biomass pellet 0.86

Table 4-5 Project specific values

Item Type Value Source

CO2 emission factor of electricity (tCO2/MWh)

Electricity 0.4434

Moldova 2010 Grid Emission Factor calculation, tCO2/MWh (for the second and third crediting period). Author – Dr. Ion Comendant (information from Climate Change office, Ministry of Environment of Moldova)

Quantity of fossil fuel used for transporting 1 tone of biomass residue (L/t)

Diesel 0.42 Interviews with the big farmers in Moldova

Average loading capacity of trucks transporting biomass residue (t/truck)

Weight Interviews at each site

Average transporting distance of trucks transporting biomass residue (km/period)

Distance Interviews at each site

Average loading capacity of trucks transporting pellets (t/truck)

Weight Interviews at each site

Average transporting distance of trucks transporting pellets (km/period)

Distance Interviews at each site

Quantity of fossil fuel used for feeding biomass residue one ton into boiler (t/y)

Diesel Procurement voucher at each site

Efficiency

of bioma

ss

Hirtople Mare G. Wheat straw 0.81

Maker catalog Hirtople Mare K. Wheat straw 0.80 Viisoara G. Wheat straw 0.815 Chiscareni L. Wheat straw 0.815 Moldagrotechnica Pellet 0.86


＜15＞

boiler Fundurii Vechi Comminity Center

Pellet 0.86

Balatina Community Center

Pellet 0.86

(6) Setting of Reference Scenario and Project/Activity Boundary:

1） Reference Scenario In order to make the reference scenario as accurate and appropriate as possible, we have conducted a barrier analysis regarding heat generation and biomass residue for each alternative scenario.

A) Heat generation in case of no project Existing boilers continue to be operated with other fuels Existing boilers using fossil fuels such as coal cannot be converted to other fuels without significant technological remodeling. Therefore it is not plausible to continue to operate existing boilers with other fuels.

Biomass boilers are installed in BaU The Government of Moldova has set a goal of increasing the ratio of biomass energy to total energy consumption to 20% by 2020 as a part of the national energy policy. On the other hand, the purchase and handling of biomass fuel is more complex than fossil fuel, and offsetting economical advantages are required to the justify investment. Cost considerations and the market and social trends will be important factors when purchasing new boilers or replacing existing boilers. In case of Grant Aid by Japanese government, we can see more economical superiority rather than the purchase with self-investment. But grant aid cannot be BaU in Moldova.

Conversion of existing boilers with natural gas boilers Taking into account the increasing trends of natural gas price in Moldova and higher operating cost of gas boiler, natural gas boiler would not be widely introduced in Moldova.

Existing boilers continues to be operated with the same type of fossil fuels as before This scenario is the most plausible one without international assistance in Moldova.

B) Handling of biomass in case of no project Biomass residues are burned on the field without harnessing as energy. (open burning) Biomass residues have been plowed under the fields or left in the arable lands.

Biomass residues marketed and harnessed as an energy source by existing technology According to interviews with Ministry of Agriculture and Food Industry and pellet factories, there is no significant market for biomass residues in Moldova.

Biomass residues used as fertilizer The demand of biomass residue as fertilizer is not obvious.

Biomass residues are disposed of or left on the fields and degraded typically in aerobic conditions This scenario is the most plausible among those listed.

2） Boundary GHG emissions associated with the operation of tractors for collection, rolling and


＜16＞

transporting of biomass residues in the project activities

GHG emissions associated with the transportation of biomass residues burned in the boilers

GHG emissions associated with the operation of heating systems such as boiler and heat exchanger

GHG emissions associated with the operation of the pelletizing system including dryer, crushing and pelletizing equipment

GHG emissions associated with the consumption of fossil fuels and electricity at project sites. But not including fossil fuel burned in the boiler.

It is required for project developers to determine whether they include methane emission associated with boiler burning and describe the result on the PDD. But they do not have to consider it in case of the open burning.

3） Leakage Biomass residues are not otherwise utilized. Utilizing biomass as fuels therefore does not

generate additional activities and/or CO2 emissions associated with disruption of other biomass uses.

(7) Monitoring Methods: This project will monitor measurements from heat meters and the quantity of biomass

residues fed into the boiler. These values are to be written on the designated daily record by boiler operators every day. And CFU’s staffs visit each site periodically, check the measuring situation and bring back the daily record.

Data required for setting the project specific values were collected by interviews and questionnaires.

Monitoring Implementation Entity CFU under Ministry of Environment

Monitoring Sites Straw boilers: Hirtopul Mare Gymnasium, Hirtopul Mare Kindergarten, Viisoara

Gymnasium, Chiscareni Lyceum & Gymnasium Pellet boilers: Moldagrotehnica, (Balatina Community Center, Funduri Vechi

Community Center) Note: Project sites in parenthesis are new facilities which commissioned boiler operation

during the 2nd monitoring period.

Monitoring Items

Table 4-6 Monitoring Items Parameter Calculation

Method Option Monitoring Method System and status of

implementation Accumulated heat generation from biomass residues in boilers in year y [GJ/y]

1-1, 1-2 Continuous measurement by a heat meter

Record values obtained from a heat meter on a daily record by a boiler operator whose working shift is 24 hours.

Consumption of biomass residue k (wet basis) in boiler in year y [t/y]

1-2, 2-1, 2-2 Count number of baled straw or average weight of pellet per unit (bale, bucket) after determining unit weight

Record number of units used in a boiler on a daily record by a boiler operator whose working shift is 24 hours.


＜17＞

Monitoring Implementation Periods Taking into account the schedule of verification and final report, monitoring period was divided into 2 periods. During the first monitoring period, temperatures higher than typical years delayed commissioning timing and some of the boilers were not operated or operated only periodically.

Table 4-7 Monitoring Implementation Periods First Monitoring Period

・Hirtopul Mare Gymnasium: November 27 - November 30, 2012 ・Hirtopul Mare Kindergarten: November 7 - November 30, 2012 ・Viisoara Gymnasium: November 14 - November 30, 2012 ・Chiscareni Lyceum & Gymnasium: November 14 - November 29, 2012 ・Moldagrotehnica: November 8 - November 30, 2012

Second Monitoring Period ・Hirtopul Mare Gymnasium: December 1, 2012 – January 23, 2013 ・Hirtopul Mare Kindergarten: December 1, 2012 – January 23, 2013 ・Viisoara Gymnasium: December 1, 2012 – January 23, 2013 ・Chiscareni Lyceum: December 1, 2012 – January 23, 2013 ・Moldagrotehnica: December 1, 2012 – January 23, 2013 ・Fundurii Vechi Multifinctional Community Center : January 7 – January 23, 2013 ・Balatina Multifinctional Community Center: January 14 – January 23, 2013

(8) Quantification of GHG Emissions and its Reductions:

Equation for Reference Emission Reference emissions from fossil fuel combustion in the existing boiler(s) are determined

by multiplying the heat generated with fossil fuels that are displaced by biomass residues with the CO2 emission factor of the reference fossil fuels that would be used in the absence of the project activity and by dividing by the average net efficiency of heat generation in the existing boiler(s).

There are two available reference emission calculation methods to choose from with respect to monitoring equipment. Formula (1) is used for calculation methods 1-1 and 1-2 and formula (2) is used for calculation methods 2-1 and 2-2.

PFiCORE

yBMy EFQRE ,2,1

．．．．．（1）

PFiCORE

PJ

kkBM

kBMykBMy EFNCV

MPCRE ,2,

,,, )

1001(

．．．．．（2）

Equation for Project/Activity Implementation

yboiyptryeyrtryroly PEPEPEPEPEPE ,,,,,,, ．．．．．（3）

Equation for GHG Emission Reduction

ERy = REy - PEy ．．．．．（4）


＜18＞

1） Emission Reduction Based on Monitored Data during the First Period

Table 4-8 Emission Reduction Based on Monitored Data at Hirtopul Mare Kindergarten during the First Period (7 - 30 November 2012)

[tCO2] Calculation

Method RE (1) PE (1) ER (1) REy PEy REy

1-1 10.37 0 10.37 72.14 0 72.14 1-2 10.37 0.12 10.25 72.14 0.84 71.30 2-1 16.91 0 16.91 117.64 0 117.64 2-2 16.91 0.12 16.79 117.64 0.84 116.80

Note: (1): First monitoring period (23 days) Yearly value: calculated by set the boiler annual operation date as 160 days.

Table 4-9 Emission Reduction Based on Monitored Data at “Moldagrotehnica” SA during the First Period (8 – 30 November 2012)

[tCO2] Calculation

Method RE (1) PE (1) ER (1) REy PEy ERy

1-1 3.88 0.39 3.49 28.2 2.8 25.4 1-2 3.88 0.03 3.85 28.2 0.2 28.0 2-1 6.27 0.63 5.64 45.6 4.6 41.0 2-2 6.13 0.03 6.10 44.6 0.2 44.4

Note: (1): First monitoring period (23 days) Yearly value: calculated by set the boiler annual operation date as 160 days.

2） Emission Reduction Based on Monitored Data during the Second Period

Table 4-10 Emission Reduction Based on Monitored Data at Hirtopul Mare Kindergarten during the Second Period (1 December 2012 – 23 January 2013)

[tCO2] Calculation


1-1 37.74 0 37.74 111.82 0 111.82 1-2 37.74 0.35 37.39 111.82 1.04 110.79 2-1 91.98 0 91.98 272.53 0 272.53 2-2 91.98 0.35 91.63 272.53 1.04 271.50

Note: (2): Second monitoring period (54 days) Yearly value: calculated by set the boiler annual operation date as 160 days.

Table 4-11 Emission Reduction Based on Monitored Data at “Moldagrotehnica” SA during the Second Period (1 December 2012 – 23 January 2013)

Calculation Method RE (2) PE (2) ER (2) REy PEy ERy

1-1 17.71 1.77 15.94 52.47 5.24 47.23 1-2 17.71 0.12 17.59 52.47 0.36 52.12 2-1 29.59 2.96 26.63 87.67 8.77 78.90 2-2 29.59 0.12 29.47 87.67 0.50 87.32



＜19＞

3） Emission Reduction Based on Monitored Data during the Second Period using Revised Methodology (Ver.3)

Using a new methodology reflected to the study results, we reviewed the reference

emissions, project emissions and emission reductions during the second monitoring period when boiler operation status seemed to be stable.

The main modified points are shown below;

[Primary modification] ・ We set the efficiency of existing boiler (coal) as 1 in order to make the reference

scenario more conservative than BAU. ・ We reviewed the default values and the categories of moisture content. ・ We changed the Net calorific Values of biomass residues from tentative values to the

measured values in the laboratory of Agrarian State University of Moldova. ・ We set the project emission factor for the direct burning of biomass residue as 0.02

in accordance with the calculation results. Originally the project emission factor was set as zero. But the emission reductions calculated with default values should not be larger than the values without.

[Secondary modification] ・ Taking into account of the variation of the efficiency of boilers induced by the

operational variation of boilers, we adopted 0.5 as the correction factor of boiler efficiency and multiplied the boiler efficiency by the factor.

・ The large gap between the result based on the data of heat meters (1-1, 1-2) and of measured fed quantity of biomass residue had been shortened in both straw boilers and pellet boilers using the revised methodology.

・ Yearly amount of CO2 emission reductions was calculated to be approx. 73 ton at Hirtopul Mare Kindergarten and approx. 30 ton at “Moldagrotehnica” SA.

Table 4-12 Comparison of Emission Reduction Based on Monitored Data at HIrtopul Mare

kindergarten during the Second Period (1 December 2012 – 23 January 2013) [Former version] [tCO2]

Calculation Method RE (2) PE (2) ER (2)

1-1 37.74 0 37.74 1-2 37.74 0.35 37.39 2-1 91.98 0 91.98 2-2 91.98 0.35 91.63

[Primary modification] [tCO2] Calculation

Method RE (2) PE (2) ER (2)

1-1 25.29 0.51 24.78 1-2 25.29 0.35 24.93 2-1 55.39 1.11 54.29 2-2 55.39 0.35 55.04

[Secondary modification] [tCO2] Calculation


1-1 25.29 0.51 24.78 74.93 1.51 73.42 1-2 25.29 0.35 24.93 74.93 1.04 73.87 2-1 27.70 0.55 27.14 82.07 1.63 80.41 2-2 27.70 0.35 27.35 82.07 1.04 81.04


＜20＞


Table 4-13 Comparison of Emission Reduction Based on Monitored Data at “Moldagrotehnica”

SA during the Second Period (1 December 2012 – 23 January 2013) [Former version] [tCO2]

Calculation Method RE (2) PE (2) ER (2)

1-1 17.71 1.77 15.94 1-2 17.71 0.12 17.59 2-1 29.59 2.96 26.63 2-2 29.59 0.12 29.47

[Primary modification] [tCO2] Calculation

Method RE (2) PE (2) ER (2)

1-1 11.87 1.19 10.68 1-2 11.87 0.12 11.75 2-1 22.03 2.20 19.83 2-2 22.03 0.12 21.91

[Secondary modification] [tCO2]

Calculation Method RE (2) PE (2) ER (2) REy PEy ERy

1-1 11.87 1.19 10.68 35.17 3.53 31.64 1-2 11.87 0.12 11.75 35.17 0.36 34.81 2-1 11.01 1.10 9.91 32.62 3.26 29.36 2-2 11.01 0.12 10.89 32.62 0.36 32.27


Emission Reduction Potential in Moldova Based on the result of the CO2 emission reduction calculated by the methodology, yearly

approx. 70t of CO2 from the straw boiler (150kW) at Hirtopul Mare Kindergarten and approx. 30t of CO2 from the pellet boiler (75kW x 2) would be reduced.

There are 2,857 public educational facilities such as kindergarten, gymnasium and lyceum in rural area of Moldova. Assuming that all existing coal boilers are switched into biomass boilers with the same capacity as before, CO2 emission reduction potential would be estimated to be 199,990 tCO2/year in case of straw boilers and 85,710 tCO2/year in case of pellet boiler.

(9) Verification of GHG Emission Reductions:

1） Target period for verification

We have had the third-party verification entities (Verifier(s)) verify the monitoring reports prepared by CFU for the biomass boilers operated during winter season. It is generally know that the operational conditions such as ON/OFF considerably influence the boiler efficiency. Therefore we have set the monitoring period as long as possible. In the implementation phase, based on actual measured boiler efficiency we will do the MRV demonstration and are able to obtain more realistic values for the GHG emission reductions.


＜21＞

As winter season had been warmer than usual in 2012, boiler operations were regularly started in the end of November. In order to find the findings of monitoring implementation based on the MRV methodology, we divided the period into two parts (October – November 2012, December 2012 – January 2013). So the verifiers verified each monitoring result respectively.

2） Selection of Verifier ・Rina Simtex Organismul de Certificare: Romania ・East-Europe Consulting Associates (EECA): Moldova

3） Verification Method Monitoring items which are verified are shown in Table 4-14.

Table 4-14 Parameters for Monitoring

Parameters Description Verification Method

Boiler's Operating period (Hour) Total operating period of boilers during heating season

Daily record

Fuel type Materials

Accumulated heat of boiler [GL/y] Total heating value measured with heat meter during heating period

Annual consumption of biomass Fuel [t/y]

Total consumption of baled straw and pellet etc. during heating season

Consumption of fossil fuel used for transporting biomass per ton of biomass fuel [t/y]

Tractor’s fuel consumption. Interviews with users.

Interviews with the responsible persons at the project site.

Fossil fuel consumption per ton of biomass residue transporting [t/y]

Truck’s fuel consumption. Interviews with users.

Fossil fuel consumption per ton of biomass residue transported for pellet [t/y]


Interviews with the responsible persons of the pellet producers.

Fossil fuel consumption per ton of pellet transporting [t/y]


Fossil fuel consumption per ton of biomass residue put into the boiler [t/y]

Interviews with responsible persons about fossil fuel consumption for tractors.

Interviews with the responsible persons at the project site.

Annual pellet consumption [t/y] Total consumption of pellet during heating season.

Daily record

Net Calorific Value of pellet [GJ/t] Net Calorific Value of biomass residue [GJ/t]

Measured in the laboratory of State Agrarian University

Interviews with responsible persons of the experiment

Moisture content ratio of pellet [%] This value is not verified because EU quality standard is


＜22＞

Parameters Description Verification Method adopted as conservative default value.

Power consumed in the pelletizing process [MWh/y]

Power consumption during pelletizing etc.

Interviews with pellet producers

CO2 Emission Factor of power [tCO2/MWh]

Official value in Moldova

Moisture content ratio of biomass residue [%]

Measured with moisture meter CFU’s measured values of moisture content ratio

Net Calorific Value of biomass residue [GJ/t]

Measured in the laboratory of State Agrarian University

Interviews with responsible persons of the experiment

We had provided the following information as evidences to the verifiers; - Monitoring report - Monitoring period - Screening information of monitoring results - Information of the heat meter calibration

4） Verification result and findings

Result Verifiers had commented on the monitoring reports prepared by CFU and all of them

were solved with evidences provided by CFU.

Findings We entrusted the verification of the monitoring results to East-Europe Consulting

Associates (EECA) and Rina Simtex Organismul de Certificare (Rina). As EECA had no experience of CDM related project, the outputs were not sufficient. On the other hand, Rina has experience enough to do the verification. It is important to do training for capacity buildings of verification of JCM/BOCM in Moldova because there is no organization with enough skills for this kind of project.

(10) Ensuring Environmental Integrity: Environmental Impact Assessment (EIA) is designated in the Law of EIA (no. 851-XIII of

29.06.1996). As this project activity is small scale, EIA does not required. Particulate matter emissions from the stack of wheat straw boilers may impact the health

condition of local residents. As there are no emission standards for particulate matter in Moldova, EU Standards are referred to (Table 4-15). Based on the measured value by boiler producers, particulate matter emissions from wheat straw boiler ranged from 236 – 263 mg/Nm3 which exceeds the EU standards. Therefore we have to consider the height of stacks and environment of project sites.

Table 4-15 Emission Standards Moldova IFC*1 EU Standards *2 Japan *3

N/A

50 or up to 150 if justified by

environmental assessment

150 (at 10% O2) 300

*1) IFC EHS guidelines / Air Emissions and Ambient air quality


＜23＞

*2) European Standards EN 303-5 *3) Air Pollution Control Law (Japan)

On the other hand, the pellet boiler is equipped with a dust precipitator, so the amount of dust will be significantly reduced, and adverse effects are likely to be very small.

As burned ash includes nutrient contents such as Potassium, the ash from all project activities is to be used as fertilizer in the field. (11) How to Promote the Dissemination of Japanese Technologies:

Project pellet boilers are to be made in Japan and are relatively expensive considering current currency conditions, transporting cost and the cost of specification changes. We feel there is technical superiority concerning safety, convenience (lower work load, package selling system from input to output) and energy efficiency. We see the potential disadvantages due to the fact that the maintenance system and service network for spare parts have not been developed in Moldova.

In the JICA grant aid project, some problems associated with service networks and parts supply chains would be solved by developing cooperation between trading companies in Japan and local agents. In addition, some devices such as heat meters and telecommunication systems (which allow remote confirmation of operating status) would be developed and supply chain plan (including purchasing pellet, manufacturing and products supply), which should be cooperated with local government installing biomass boiler, would be proposed. These components will ensure stable operation of the facility and the superior performance of Japanese products.

No biomass boiler system made in Japan has ever been installed in Moldova.

(12) Prospects and Challenges for Similar Project/Activity Implementation: There are several varieties of biomass, and heating values change depending on moisture

content, so it is difficult to estimate the quantity of fossil fuel displaced by biomass fuel with the data of biomass consumption alone. We need to ensure transparency for biomass fuel suppliers and raw material storage condition and the reliability for the catalog value of boiler efficiency.

5. Contribution to Sustainable Development in Host Country 1） Harnessing local resources and generating new industry and employment

This project contributes to the effective use of biomass as a domestic resource which has not been utilized in Moldova and will promote the generation of new industry and employment in biomass fuel production and boiler-related business.

2） Economical effectiveness Purchasing domestic biomass fuel through this project contributes to improved economic conditions such as increasing GDP by revolving and reinvesting the money which has otherwise flowed out of Moldova to purchase fossil fuels.

[biomass boiler heating fueled by agricultural...

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