waste heat project at lsil pdd date 05 feb

8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03

CDM Executive Board

page 1

CLEAN DEVELOPMENT MECHANISM

PROJECT DESIGN DOCUMENT FORM (CDM-PDD)

Version 03 - in effect as of: 28 July 2006

CONTENTS

A. General description of 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 project activity

Annex 2: Information regarding public funding

Annex 3: Baseline information

Annex 4: Monitoring plan

Appendix: Screen shots of excel sheets.


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SECTION A. General description of project activity

A.1. Title of the project activity:>>

(a) Title of project activity: Waste Heat project at LSIL

(b) The current version number of document: 1

(c) The date of the document was completed: 05/02/2010

A.2. Description of the project activity:

>>

Description of project activity

(1) Purpose of the project activity

The purpose of project activity is to replace fossil fuel being used in reheating furnace (RHF), Continuoushot dip Galvanising Line (CGL) furnaces and Coiler furnace at Lloyds Steel Industries Limited (LSIL) by

waste coke oven gas. The details on waste coke oven gas provided in this section.

The Coke Oven Gas is sourced from joint facility of Uttam Galva Metallics Limited (UGML) and LSIL.

UGML is being put up with sole intention to supply LSIL their entire finished product Pig Iron. LSIL will

use the pig iron for manufacturing of their product steel. UGML is within the same industrial facility

adjoining to LSIL manufacturing area and creating joint facility as they use common utilities like water,

Nitrogen, Oxygen etc.

The agreement between UGML and LSIL for creating joint facility where in the entire product of UGML

is supplied to LSIL and having common utilities including use of coke oven gas by LSIL will be made

available to DOE during validation process.

(a) Scenario existing prior to start of the implementation of project activity.

LSIL is a steel manufacturing company equipped with DR-EAF-Continuous slab caster based steel

plant of capacity about 600000 tonnes/year of steel. The fossil fuels are presently being fired in the

following furnaces.

(a.1) The Reheating Furnace for heating of ladle, turn dish etc uses Furnace oil for firing.

(a.2) Continuous hot dip galvanising line (CGL) furnaces

NON OX furnace is direct LPG fired

RTF furnace is indirect LPG fired

(a.3) Stecker Mill Coiler furnaceFuel fired is LPG

The project activity is to replace the fossil fuel being presently used with waste coke oven gas.

(b) The project scenario.


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(b.1) LSIL proposes to replace this Reheating furnace (RHF) of capacity of 150 tonnes/hr which uses

furnace oil as fuel with new Reheating furnace of capacity 300 tonnes/hr which can use Coke Oven Gas

as fuel. The proposed new facility will result in increased plant of capacity of 1000000 tonnes/year of

steel.

(b.2) Continuous hot dip galvanising (CGL) and coiler furnaces which presently use LPG as fuel will

be modified to use coke oven gas instead of LPG. The modification will involve changing burners and

control system including piping of coke oven gas.

LSIL proposes to use only waste coke oven gas in the furnaces thus replacing the furnace oil/LPG

consumption.

The waste coke oven gas will be sourced from UGML who are putting 450 m3 blast furnace to produce

472000 tonnes/month of hot metal and 200000 tonnes/month of metallurgical coke. The coke oven gas is

obtained as by product during manufacturing of metallurgical coke which is used in blast furnace for

making hot metal.

UGML do not have any use for excess coke oven gas after using the coke oven gas in the blast furnace

and would be letting out into atmosphere after burning.

LSIL has entered into agreement with UGML to create the joint facility where LSIL will source the

entire finished product Pig Iron of UGML and common utilities are being used. LSIL will use the waste

coke oven gas which has the following composition and calorific value as delivered to LSIL at receiving

point by UGML. The agreement will be made available to DOE during validation.

Flow rate 12250 Nm3/h

Temperature 100 deg C

Pressure 0.95 kg/cm2

Composition CO 7.5 -9 % CO2 2.0-3.0% H2 55-57 % N2 2-6% CH4 24-26% CnHn 5%Calorific value 16720 kJ/Nm3

This coke oven gas is fired instead of furnace oil in reheating furnace and coke oven gas will be fired

instead of LPG in Coiler furnace and CGL furnaces.

Scope of activities include the following installations

1 New reheating furnace capable of using coke oven gas for firing.

2 Modification of Coiler furnace for using coke oven gas instead of LPG.

3 Modification of CGL furnaces for using coke oven gas instead of LPG.

4 Pipe line to carry gas from gas holder to utility points of approximate length of 3 km.

Current status of project activity

1 The new reheating furnace capable of using coke oven gas is received and being installed.


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2 Piping work from UGML to LSIL utility points will be completed by March 2010.

3 Commissioning expected by April-June 2010 after the continuous availability of coke oven gas.

(c)Base line Scenario

The baseline is the same scenario existing prior to the start of implementation of project activity.

The base line is fossil fuel i.e. Furnace oil for RHF and LPG for Coiler/CGL furnaces are being fired inpre project scenario and the same scenario of using fossil fuel for firing in furnaces would have been

continued in the absence of project activity.

(2) How the project activity reduces GHG emissions

The project activity reduces CO2 emissions from replacement of fossil fuels used in the furnaces by waste

coke oven gas which would have been otherwise flared by UGML before letting into atmosphere in theabsence of the project activity and in the project activity LSIL uses this waste coke oven gas in theirfurnaces to provide required heat which would have been otherwise provided by firing fossil fuels like

furnace oil in reheating furnace and LPG in coiler and CGL furnaces. CO2 emission due to burning of

fossil fuel is avoided and thus achieves reduction in CO2 emissions.

In B.3 section it is explained that CO2 emissions due to base line fossil fuel are mainly considered andCH4 and N2O are not considered to be on conservative side in calculating baseline emissions. In A.4.3

It is also explained that the Furnace oil for RHF and LPG for Coiler/CGL furnaces are being fired in pre

project scenario and the same are being replaced by WECM coke oven gas.

.The total CO2 emission reduction for the entire crediting period of 10 years has been calculated as

1170800 tonne CO2 equivalent.

(3)The project activity will lead to sustainable development and promote sustainable Industrial growth by

conserving natural resources and preventing the thermal pollution even though no such statutory

requirement exists.

Social benefit to state

The project activity increases the employment within LSIL for skilled manpower and Professionals.

Skilled and unskilled labour will gain temporary employment while executing the project.

India is very deficient in crude oil and major portion of its oil requirements are met by imports. Hence

saving in the use of fossil fuel like furnace oil and LPG enables the scarce petroleum products to be made

available to the society for some other uses.

Economical Benefits to State

The project involves investment of around 600 million rupees and will involve more than 400 million

rupees capital equipment purchase. Engineering industry will benefit and provide employment

opportunity for professionals, skilled and unskilled people.

The state will generate revenue out of the manufacturing activities supported by the energy generation

and due to purchase of equipment for execution of project by way of Sales Tax; Excise Duty; Entry Tax

etc.


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India is facing shortage of oil leading to import of major requirement of its oil needs which consumes

valuable foreign exchange leading to petroleum products starvation and hence the project activity enables

the country to bridge this gap by reduction in demand on petroleum products by company and save

valuable foreign exchange.

Environmental Benefit

The Project activity is waste heat recovery based Project by utilizing waste heat from coke oven gases

coming from process and thus effectively saving environment of thermal pollution. In the absence of

project activity coke oven gases would have been flared by UGML leading to thermal pollution. The

project activity displaces heat from fossil fuel and hence reduces CO2 emission

A.3. Project participants:

>>

Name of the Party Involved (host)

indicates Host party)

Private and/or Public entity (ies)

Project Participant

( as applicable)

Kindly indicate if the party

involved wishes to be

Considered as projectparticipant

(Yes/ No)

India (host)

Ministry of Environment and Forest Lloyds Steel Industries Limited

(Private Entity).

No

A.4. Technical description of the project activity:

A.4.1. Location of the project activity:

>>

India

A.4.1.1. Host Party(ies):>>

India

A.4.1.2. Region/State/Province etc.:

>>

Maharashtra

A.4.1.3. City/Town/Community etc.:

>>

Bhugano, Taluk Wardha.

A.4.1.4. Details of physical location, including information allowing the

unique identification of this project activity (maximum one page):

>>

Physical location

The project activity located at Lloyds Steel Industries Limited, Bhugano, Wardha Taluka & District,

Maharashtra. Latitude 200 42 4.45, Longitude 780 37 15.24. Nearest Railway station is Bhugano.

The plant is located approximately at 6 km from Wardha on Bhugano link road.


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A.4.2. Category(ies) of project activity:

>>

The project activity may be principally categorised in category 04 Manufacturing Industries as per

Scope of Projects activities enlisted in the list of sectoral scopes and approved base line and monitoring

methodologies on the website for accreditation of Designated operational Entities.

The CDM PDD is based on approved methodology ACM0012 version 03.2 and Sectoral scope; 01 & 04EB 51 Consolidated baseline methodology for GHG emission reductions from waste energy recovery

projects

A.4.3. Technology to be employed by the project activity:

1) Description of how the project is environmentally safe and sound technology, and know how transfer.


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The Reheating Furnace is being imported from Jiangsu Sky run Corporation China which is of proven

technology and all the technical details for operation of the equipment safely are provided by Jiangsu Sky

run Corporation. The modifications for Continuous hot dip galvanising line (CGL) furnaces and Coiler

furnace are being carried out by LSIL with new burners from indigenous suppliers. The technology is

proven. The installation is under CCOE and hence all approvals will be got from CCOE which ensures

that the installation is safe and of sound technology.

2) Purpose of project activity

The purpose of project activity is to replace fossil fuel being used in reheating furnace (RHF),

Continuous hot dip Galvanising Line (CGL) furnaces and Coiler furnace at Lloyds Steel Industries

Limited (LSIL) by waste coke oven gas.

LSIL proposes to use only waste coke oven gas in the furnaces thus replacing the furnace oil/LPG

consumption.

The waste coke oven gas will be sourced from UGML who are putting 450 m3 blast furnace to produce

472000 tonnes/month of hot metal and 200000 tonnes/month of metallurgical coke. The coke oven gas is

obtained as by product during manufacturing of metallurgical coke which is used in blast furnace for

making hot metal.

UGML do not have any use for excess coke oven gas after using the coke oven gas in the plant and

would be letting out into atmosphere after flaring.

LSIL has entered into agreement with UGML to create the joint facility where LSIL will source the

entire finished product Pig Iron of UGML and common utilities are being used. LSIL will use the waste

coke oven gas which has the following composition and calorific value as delivered to LSIL at receiving

point by UGML. The agreement will be made available to DOE during validation.




Composition CO 7.5 -9 % CO2 2.0-3.0% H2 55-57 % N2 2-6% CH4 24-26% CnHn 5%

Calorific value 16720 kJ/Nm3

This coke oven gas is fired instead of furnace oil in reheating furnace and coke oven gas will be fired

instead of LPG in Coiler furnace and CGL furnaces.

(a) The scenario existing before project activity.

In the present system of steel manufacturing in LSIL is based on DR-EAF-Continuous slab based steel

plant. The rolling and processing lines include steckel mill, cold rolling mill and galvanising lines. The

plant is operating with DRI and scrap as major metallic inputs to the EAF.

The following furnaces are existing presently using fossil fuel

(a.1) The Reheating Furnace (RHF) for heating of ladle, turn dish etc uses Furnace oil for firing.

Capacity: 600000 tonnes/year

Make: MDH


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Fuel used: furnace oil

SpecificFuel consumption: 1380 MJ/tonne based on 3 years averageYear of installation: 1994

(a.2) Continuous hot dip galvanising line (CGL) furnaces

NON OX furnace is direct LPG fired

RTF furnace is indirect LPG fired


Fuel used: LPG

Specific Fuel consumption: 1210 MJ/tonne based on 3 year average.

Year of installation: 1995

(a.3) Coiler furnace

Fuel fired is LPG


Make: MDHFuel used: LPG

Specific Fuel consumption: 254 MJ/tonne based on 3 years average.

Year of installation: 1994

(b) The project scenario

(b.1) LSIL proposes to replace this Reheating furnace (RHF) of capacity of 150 tonnes/hr with new

Reheating furnace of capacity of 300 tonnes/hr which can use both Furnace oil/Coke Oven Gas. The

proposed facility will result in increased plant of capacity of 100000 tonnes/year of steel from present

600000 tonnes/year.

(b.2) Existing Continuous hot dip galvanising (CGL) and coiler furnaces will be modified to use coke

oven gas instead of LPG. The capacity of each furnace remains unchanged.

The Coke Oven gas which is a by product during manufacturing of metallurgical coke from coal which is

used in blast furnace to produce pig iron and excess coke oven gas after the use in coke ovens is a waste

gas which has to be let out to atmosphere and the waste coke oven gas has the following composition and

flow rate as delivered to receiving point of LSIL by UGML






UGML does not have any use for this excess coke oven gas in their process after their requirements aremet in coke oven batteries and have to let out into atmosphere after burning in the absence of project

activity.

The project activity will comprise the following scope of activities

Main equipment


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1 The pipe line from this gas tank to utility points of approximately 3 km.

2 The new reheating furnace.

The new reheating furnace (RHF) has the following specifications:

Make: Jiangsu Sky run Corporation

Capacity: 1 Million tones/year

Charging: cold/hotFuel used: Coke Oven Gas

Specific Fuel consumption: 1.3 GJ/tonne based on manufacturer specifications for coke oven gas

1.35 GJ/tonne for furnace oil based on manufacturer specification for

Furnace oil.Fuel consumed = 9000 Nm3/hr

3 Coiler furnace and CGL furnaces modification in burner system to make them suitable for coke ovengas firing. Make of burners is M/S Continental Thermal Engineers, Chennai, India.

Coiler furnace:


Fuel used: Coke Oven Gas

Specific Fuel consumption: 1210 MJ/tonne based on 3 year average

Fuel Consumption: 500 Nm3/hr of coke oven gas.

CGL furnaces


Fuel used: Coke Oven Gas

Fuel Consumption: 2550 Nm3/hr of coke oven gas.

The fuel consumption being monitored by electronic meters.

(c) Base line Scenario


The base line is fossil fuel i.e. Furnace oil for RHF and LPG for Coiler/CGL are being been fired in preproject scenario and the same scenario of using fossil fuel for firing in furnaces would have been

continued in the absence of project activity as it is business as usual scenario.

c. a) Age and average life time of equipment

LSIL is a steel manufacturing company equipped with DR-EAF-Continuous slab caster based steel plantof capacity about 600000 tonnes/year of steel. The fossil fuels are presently being fired in the following

furnaces.

1 The Reheating Furnace (RHF) for heating of ladle, turn dish etc uses Furnace oil for firing.


2 Continuous hot dip galvanising line (CGL) furnaces fuel used is LPG. Capacity 250000 tonnes/year


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3 Coiler furnace, Fuel fired is LPG, Capacity: 400000 tonnes/year

Fuel consumption and production from furnace are monitored.

Normal life of steel mill equipment is 30 years as observed in industry. Reheating furnace is new. CGL

furnace and coiler furnace are approximately 16 years in operation. Expected balance life for these

furnaces is about 14 years.

c.b) how emission reductions are achieved.

The project activity reduces CO2 emissions from replacement of fossil fuels used in the furnaces by

Waste coke oven gas would have been otherwise flared by UGML before letting into atmosphere in the

absence of the project activity and in the project activity LSIL uses this waste coke oven gas in their

furnaces to provide required heat which would have been otherwise provided by firing fossil fuels like

furnace oil in reheating furnace and LPG in coiler and CGL furnaces. CO2 emission due to burning of

fossil fuel is avoided and thus achieves reduction in CO2 emissions.

c.c) Heat energy generated in the project activity.

The Coke Oven gas which is a by product during manufacturing of metallurgical coke from coal which is

used in blast furnace to produce pig iron and excess coke oven gas after the use in coke ovens is a waste

gas which has to be let out to atmosphere and the waste coke oven gas has the following composition and

flow rate as delivered to receiving point of LSIL by UGML






UGML does not have any use for this excess coke oven gas in their process after their requirements are

met in coke oven batteries and have to let out into atmosphere after burning in the absence of project

activity.

The heat generated using coke oven gas is calculated as follows:

Heat from coke oven gas: 12250 x 4000 x 4.18 = 2.0482 x 10 8 kilojoules/hr

Heat produced by coke oven gas /year = 17942.2 x 10 8 kilojoules/year.

The use in furnaces expected as follows:

S No Description ReheatingFurnace

CGLfurnaces

CoilerFurnace

Referencedocument

1 Production

capacity

tonnes/year

1000000 250000 400000 Manufacturer

specifications


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2 Base line

fuel

Furnace

oil

LPG LPG

3 Specificheat

requirement

MJ/tonne

1350 1210 254 Manufacturerspecification

for RHF and

for CGL/Coiler

furnaces

3 years average

4 Heat

provided by

coke oven

gas MJ

13.5 X 108

3.025X

108

1.016X

108

5 HG j y 17.541 X 108MJ/Year

A.4.4. Estimated amount of emission reductions over the chosen crediting period:Years Annual estimation of emission

reductions in tonnes of CO2eq

2010 117028

2011 117028

2012 117028

2013 117028

2014 117028

2015 117028

2016 117028

2017 117028

2018 117028

2019 117028Total estimated reductions

(tonnes CO2 e)1170280

Total number of crediting years 10

Annual average over the

crediting period of estimated

reductions (tonnes CO2 e)

117028

A.4.5. Public funding of the project activity:

>> No public funding from parties included in Annex-I is available for the project activity. No ODA

funds are used in project activity.


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SECTION B. Application of a baseline and monitoring methodology

B.1. Title and reference of the approved baseline and monitoring methodology applied to the

project activity:

>>

Title of approved methodology: Consolidated baseline methodology for GHG emission reduction from

energy recovery projects

Methodology No &Version : ACM 0012, Version 03.2, Sectoral Scope: 1&4 EB 51.

Other methodologies ACM 0012

draws upon : 1 Tool for the demonstration and assessment of additionality

(Version 05.2) EB 39.

B.2. Justification of the choice of the methodology and why it is applicable to the project

activity:

>>

The methodology sets out two types of project activity.

Type 1 All the waste energy in identified WECM stream, that will be utilized in the project activity, is, or

would be flared or released to atmosphere in the absence of project activity at the existing or new facility.

The waste energy is an energy source for

. Cogeneration or

. Generation of electricity or

. Direct use as process heat source or

.For generation of heat in element process (e.g. steam, hot water, hot oil, hot air) or

. For generation of mechanical energy

The project activity is for direct use as process heat source in furnaces and hence falls in type1 category

direct use as process heat source. The identified WECM is excess waste coke oven gas.

The methodology lists out following applicable conditions

Applicable conditions of Methodology How the project activity meets the conditionsIf project activity is based on use of waste pressure

to generate electricity, electricity generated using

waste gas pressure should be measurable

Not applicable as project activity is for direct use as

process heat source.

Energy generated in the project activity may be

used within the industrial facility or exported

outside the industrial facility

The project activity generates heat for use in

furnaces from WECM and the generated heat is

used within the industrial facility. UGML has no


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use for excess WECM after using in coke oven

batteries, WECM is being sourced to LSIL as an

energy source as per agreement to form jointindustrial facility.

The electricity generated in the project activity may

be exported to grid

Not applicable as the project activity is for direct

use of WECM as process heat source

Energy in the project activity can be generated by

the owner of the industrial facility producing waste

gas/heat or by a third party (e.g.ESCO) within the

industrial facility.

Energy in the form of heat is being generated and

used by LSIL within the same industrial facility.

UGML has no use for excess WECM after using in

coke oven batteries, WECM is being sourced to

LSIL as an energy source as per agreement to form

joint industrial facility.

Regulations do not constrain the industrial facility

generating waste energy from using the fossil fuels

being used prior to the implementation of project

activity

Regulations do not constrain UGML generating

waste energy from using the fossil fuels being used

prior to the implementation of project activity.

The methodology covers both new and existing

facilities. For existing facilities, the methodology

applies to existing capacity, as well as to planned

increases in capacity during the crediting period. Ifcapacity expansion is planned, the added capacity

must be treated as a new facility.

LSIL is existing plant. The production capacity of

RHF is being expanded to 1 million tonne of

steel/year from 0.6 million tonne of steel/year

before the project activity by replacing the old RHFwhich uses fossil fuel with new Chinese make

RHF. Hence it is treated as new facility. CGL

furnaces and coiler furnace are being modified and

hence they are existing facility.

The emission reductions are claimed by generator

of energy using waste gas/heat

The CDM credits will be claimed only by LSIL

who generate process heat using waste coke oven

gas.

In case the energy is exported to other facilities anagreement is signed by the energy generation plant

with recipient plants that emission reductions

would not be claimed by recipient plants for using

a zero emission source

Not applicable as process heat generated will beused for captive consumption only.

For those facilities and recipients included in the

project boundary, which prior to the

implementation of project activity generated energy

on site, the credits can be claimed for a minimum

of the following periods

. The remaining life time of equipments currently

being used.

. Credit period

LSIL is replacing the present RHF with new RHF

with increased capacity and hence can be treated as

new facility.

Normal life of steel mill equipment is 30 years as

observed in industry. CGL furnace and coilerfurnace are approximately 16 years in operation.

Expected balance life for these furnaces is about 14

years.

The PDD has been developed for fixed crediting

period of ten years.

Waste gas that is released under abnormal

operation of the plant shall not be accounted.

The PDD does not take into consideration any

waste gas released under abnormal conditions

Cogeneration is from combined heat and power and

not Combined cycle mode of electricity generation

The project activity is for process heat generation

only.


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The waste energy utilized in project activity was

flared or released into the atmosphere in the

absence of project activity. This shall be proven byeither one of the following

1 By direct measurements of energy content

2 Energy balance

3 Energy bills

4 Process plant manufacturers original

specifications

5 On site checks by DOE

Coke oven Gas used in project activity is surplus

after providing for internal use of UGML. UGML

has no further use in the process and would haveflared through chimney in the absence of the

project activity. The same can be proven from site

checks by DOE.

The project activity meets the applicability conditions set out in approved methodology

The other conditions of methodology are met by the following steps

1. The base line calculations for CO2 emission reduction are in line with approved methodology andare calculated using CEA data provided in CO2 data base Version 5.0 November 2009 available in CEA

web site www.cea.nic.in.

2. By successful operation of project activity, the project activity will be able to displace/ substitute

electricity of grid with an emission reduction of 117028 tCO2/annum (Ref. Section- B 6.3).

3. The project activity adds no additional GHG emission.

Hence it is concluded that the project activity meets the conditions set out in selected approved

methodology.

B.3. Description of the sources and gases included in the project boundary:

>>

In line with methodology, the project activity is for the recovery of waste heat from coke oven gases for

generation of process heat for direct use as heat in furnaces.

In the base line scenario, the heat would have other wise been generated by fossil fuel like furnace oil and

LPG.

In line with methodology the project boundary comprises of the RHF, CGL and Coiler Furnaces, piping

for coke oven gas

As per the approved methodology the geographical extent project boundary shall include the following:

1 The industrial facility where waste energy is generated (coke oven gas), that is, UGML

Project activity has no control over waste gas quantity and quality like flow and temperature. , Gas holder

is provided by UGML for temporary storage.

2 The facility where process heat in element process/steam/electricity are generated (generator of process

heat/steam/electricity). Equipment providing auxiliary heat to the waste heat recovery process shall be

included within the project boundary:

That is the actual project activity comprises of burning coke oven gas in furnaces where project

participant has full Control.


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3 The facility/s where the process heat in element process/steam/electricity is used (the recipient plant(s)

and /or grid where electricity is exported. Not applicable as the project activity is for providing in house

requirement of direct heat to furnaces.

Schematic for project boundary is as below.

316720 Kj/Nm

100C

20.95 kg/Cm

Approximate pipe line : 3 km

312250 Nm /hr

PROJECT ACTIVITY BOUNDARY

LSIL

POINT OFRECEIVING

3

RHF

9000 m /hr

3500 m /hr

32550 m /hr

COILER FURNACE

CGL 1 & 2

Table 1: Summary of gases and sources included in the project boundary, justification explanation where

gases and sources are not included.

Source Gas Included? Justification /

ExplanationCO2 Excluded Not

applicable.

CH4 Excluded Not

applicable.

Electricity generation, grid or captive source.

N2O Excluded Not

applicable.

CO2 Included Main

emission

source

CH4 Excluded Excluded for

simplification.

This is

conservative.

Fossil fuel consumption in furnace for thermal energy

N2O Excluded Excluded for

simplification.

This is

conservative.

Baseline

Fossil fuel consumption in cogeneration plantCO2 Excluded Not

applicable.


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CH4 Excluded Not

applicable.

N2O Excluded Notapplicable.

CO2 Excluded Not

applicable.

CH4 Excluded Not

applicable.

Base line emissions from generation of steam used in the flaring

if any.

N2O Excluded Not

applicable.

CO2 Excluded Not

applicable as

No extra fuel

or support

fossil fuel

is fired.

Supplemental fossil fuel consumption

at project plant

N2O Excluded Not

applicable

CO2 Excluded Not

applicable as

No

supplemental

electricity

consumed

CH4 Excluded Not

applicable

Supplemental electricity consumption

at project plant

N2O Excluded Not

applicable

CO2 Excluded Not

applicable as

No captive

electricity is

consumed

CH4 Excluded Not

applicable

Electricity import to replace captive electricity which was generated

gas in absence of project activity

N2O Excluded Not

applicable

CO2 Excluded Not applicable

as waste gas

cleaning not

requiredCH4 Excluded Not applicable

ProjectActivity

Project emissions from cleaning of gas

N2O Excluded Not applicab


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B.4. Description of how the baseline scenario is identified and description of the identified

baseline scenario:

>> Identification of baseline scenario.

The baseline scenario is identified as the most plausible scenario among all realistic and credible

alternatives.

Realistic and credible alternatives should be determined for:

. Waste energy use in the absence of the project activity.

. Heat generation in the absence of the project activity.

While determining the baseline scenario the project participant shall identify the realistic and

credible alternatives to the project activity, which would provide output equivalent to combined output of

all the sub systems in the project scenario. Therefore the alternatives should provide the same heat output

as in the project activity and should include the alternate use of the waste gas heat utilised in the projectactivity.

The project Participant shall exclude baseline options that:

. do not comply with legal or regulatory requirements or

. depend on fuels that are not available on the site.

The project participant is required to provide evidence and supporting documents to exclude

baseline options that meet the above mentioned criteria. The methodology provides 4 steps to

to determine baseline.

Step 1: Define the most possible baseline scenario for the generation of heat and electricity using

baseline options and combinations.

The baseline candidates should be considered for following facilities.. For the industrial facility where the waste energy (coke oven gas) is generated UGML and

. For the facility where the energy is produced and consumed i.e.LSIL; and

Hence Baseline study has been carried for project proponent LSIL and UGML.

Baseline

options

Realistic and credible

alternative

LSIL UGML

W1 WECM is directly vented to

atmosphere without

incineration

Not applicable. Not applicable.

W2 WECM is released after

incineration or waste heat isreleased to atmosphere or

Waste gas pressure energy is

not utilized.

Not applicable. Applicable. UGML who

generate waste gaseswould have flared the

waste gases before

releasing to atmosphere in

the absence of project

activity as UGML does

not have any use of the

excess waste gases.


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W3 Waste energy is sold as an

energy source.

Not applicable. Not applicable. UGML

has no use for excess

WECM after using incoke oven batteries,

WECM is being sourced

to LSIL as an energy

source as per agreement to

form joint industrial

facility.

W4 Waste energy is used for

meeting energy demand.

Not applicable as WECM

is not generated by LSIL.

Not applicable.

UGML does not have any

further use of WECM and

UGML will send waste

gases to atmosphere after

flaring in the absence ofproject activity.

W5 A portion of waste gas

produced at the facility is

captured and used for captive

electricity generation while

the rest of the waste gas

produced at the facility is

vented/flared.

Not applicable. Not applicable as no

electricity is generated

using waste gas.

UGML which generates

WECM uses part of

WECM to generate heat

in their facility. UGML

would have flared WECM

in the absence of project

activity at LSIL.

Surplus WECM is

sourced to LSIL which isa part of joint industrial

facility as energy i.e heat

source for their furnaces

in the process. LSIL is the

project proponent as LSIL

is sourcing and using


in the furnaces in steel

making process as per

agreement to form joint

industrial facility.

W6 All the waste gas produced at

the industrial facility is

captured and used for export

electricity generation

Not applicable. Not applicable as no

electricity is generated

from waste gas.

UGML which generates

WECM uses part of


in their facility. UGML

would have flared WECM


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activity at LSIL.

Surplus WECM issourced to LSIL which is

a part of joint industrial

facility as energy i.e heat

source for their furnaces

in the process. LSIL is the

project proponent as LSIL

is sourcing and using


in the furnaces in steel

making process.

H1 Proposed project activity not

undertaken as a CDM

activity.

LSIL has incurred losses

when the steel industry

faced acute recession afew years back. The

company has accumulated

losses and is under BIFR

(Board of Industrial and

Financial Restructure)

with debt restructuring of

liabilities. Hence the

company faces the

financial barrier due to the

non availability of fresh

funds to carry out

expansion activities both

from financial institutesand equity market.

Hence LSIL promoters

had to arrange privately

raised loans to undertake

the project activity. These

loans carry higher rate of

interests compared to

institutional loans. In the

absence of CDM benefits

the project activity could

not be implemented as

CDM benefits enable the

promoters to convinceprivate lenders on

viability of the project

activity.

Not applicable as UGML

does not have any further

use of WECM.

H2 On site or off-site

existing/new fossil fuel fired

cogeneration plant

Not applicable as

presently only fossil fuel

is being used currently to

Not applicable.


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provide heat in the

process. LSIL does not

have any cogenerationplant based on fossil fuel.

H3 On site or off-site

existing/new renewable

energy based cogeneration

plant

Not applicable as LSIL do

not have any cogeneration

plant based renewable

energy.

Not applicable.

H4 An existing or new fossil fuel

based furnaces.

Applicable. Presently

only fossil fuel is used to

provide heat in the

process. LSIL will

continue to use fossil fuel


activity.

Not applicable.

H5 An existing or newrenewable or other waste

energy based existing

furnaces

Not applicable aspresently only fossil fuel

is used to provide heat in

the process.

Not applicable.

H6 Any other source such as

district heat

No such heat source is

available

Not applicable.

H7 Other heat generation

technologies (e.g heat pumps

or solar energy)

No such alternative source

is available or feasible as

the steel making process is

energy intensive and direct

use of large amount of heat

is required in concentrated

fashion.

Not applicable.

H8 Steam/process heatgeneration from waste

energy, but with lower

efficiency.

Not applicable as WECMavailable has to be used

with maximum efficiency

as WECM quantity is

limited.

Not applicable.

H9 Cogeneration with waste

energy but a lower

efficiency.

Not applicable as the

project activity is not for

cogeneration.

Not applicable.

Step 2: Identify the fuel for the baseline choice of energy source taking into account the national

and/or sectoral policies as applicable

The base line is fossil fuel (Furnace oil for RHF furnace and LPG for Coiler and CGL furnaces) as the

fossil fuel being used as energy source from the inception of the manufacturing facilities. There is no

shortage of furnace oil or LPG as the same are available on demand from the refineries. The refineries use

both indigenous and imported crude oil to generate the fossil fuels.

STEP 3:


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Step 2 and/or Step 3 of the latest approved version of the Tool for the demonstration and

assessment of additionality shall be usedto identify the most plausible baseline scenarios by

eliminating non feasible options

Section B.5 covers the stepwise demonstration of additionality as per the Tool for the demonstration

and assessment of additionality version 05.2 EB 39 . We have demonstrated the additionality based on

step 3.

STEP 4: If more than one credible and plausible alternative scenario remain, the alternative with

the lowest base line emissions shall be considered as the most likely baseline scenario.

Project scenario: Generation of heat

Scenario Baseline option for LSIL

Waste gas Heat

energy1 W2 H4

In step1 all the credible alternatives for waste gas and waste heat were considered. In the absence of

project activity UGML would have vented through chimney the excess waste coke oven gas as UGML do

not have further requirements in the process (W2) and LSIL would continue to use fossil fuel for

providing heat in their furnaces (H4).

Base line


The base line is fossil fuel i.e. Furnace oil for RHF and LPG for Coiler/CGL furnaces are being been fired

in pre project scenario and the same scenario of using fossil fuel for firing in furnaces would have been

continued if waste coke oven gas is not available.

The project activity reduces CO2emissions from replacement of fossil fuels used in the furnaces by waste

coke oven gas which would have been otherwise burnt by UGML before letting into atmosphere in the

absence of the project activity and in the project activity LSIL uses this waste coke oven gas in their

furnaces to provide required heat which would have been otherwise provided by firing fossil fuels likefurnace oil in reheating furnace and LPG in coiler and CGL furnaces. CO2 emission due to burning of

fossil fuel is avoided and thus achieves reduction in GHG emissions.

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 CDM project activity (assessment

and demonstration of additionality):It is required to describe how the anthropogenic emissions of GHG by sources are reduced below those

that would have occurred in the absence of registered CDM activity. The proposed CDM project activity

is designed to generate heat from the waste coke oven gases emitting out of an established industrial

manufacturing process i.e. coke oven complex which would have been let into atmosphere after burning

in the absence of project activity . The reduction in GHG emissions due to burning of fossil fuel is


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3 He further informed the board that to avail such CDM benefits it is desirable to apply to appropriate

authorities for CDM registration and CDM benefits would make project viable.

The extracts of the board meeting will be made available to DOE.

The tool for the demonstration and assessment of additionality version 05.2 outlines four steps to

demonstrate additionality.

Time line of activities

Time line of activities of Project Activity Time line of activities for CDM registration

Board Resolution 25/10/2008 Board resolution 25/10/2008

Agreement with

UGML 15/01/2009

Notification regarding

CDM project activity

to UNFCCC

21/11/2009

Starting of pipe line

laying work

01/11/2009 Appointment of DOE

for validation

12/01/2009

Expected receipt ofReheating Furnace

25/12/2009 Submission of PDD toDOE for pre

validation check

10/04/2009

Expected date of

completion of piping

and storage tank work

28/02/2010 DOE Comments

receipt after pre

validation check

10/06/2009

Installation of

reheating furnace

25/03/2010 DOE confirmation

that PDD can be

resubmitted

10/01/2009

Modification of Coiler

and CGL furnaces

25/03/2010 PDD resubmission

To DOE for

validation

23/01/2009

Expected date of

commissioning

14/04/2010 to

15/6/2010.

STEP 1 - Identification of the alternatives to the project activity considered with current laws

and regulations

Sub-Step 1.a Define alternatives to the project activity:

Identify realistic and credible alternatives

Proposed activity not undertaken as CDM

project activity.

All other plausible and credible alternative

continuation of current situation

In section B.4 all the possible alternatives have been

discussed for the alternatives recognised were:

1 The methodology lists six realistic and credible

alternatives for waste gas and the alternative to vent

to atmosphere the waste coke oven gases afterflaring was the only option in the absence of project

activity for UGML.

2 The methodology lists nine realistic and credible

alternatives for heat generation. The only credible

alternative in base line is using fossil fuel which is


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the continuation of current situation in the absence

of project activity for LSIL.

Step 1.b Consistency with mandatory laws and regulations:

1 Alternative shall be in compliance with

legal and regularly requirements.

All the alternatives are in compliance with current

legal and regulatory requirements.

Additionality tool provides the option of selecting Step 2 or Step 3. LSIL select step 3 and hence proceed

to Step 3.

STEP 3 Barrier analysis to show additionality.

Sub-Step 3.a Identification of barriers that would prevent the implementation of the type of the

project activity.

Investmentbarriers

3.a.1

Debt funding is

not available for

this type of

proposed project

activity.

LSIL has incurred losses when the steel industry faced acute recession a

few years back. The company has accumulated losses and is under BIFR

(Board for Industrial and Financial Reconstruction, Government of India)

with debt restructuring of liabilities. Hence the company faces the financial

barrier due to the non availability of fresh funds to carry out expansion

activities both from financial institutes and equity market. The companys

finance demands go through close scrutiny of the concerned financial

institutions and have not been able to secure institutional loans for project

activity. The details of company financial are as follows

Details of company are as follows

Nature of company:

LSIL is a public limited having two divisions. Steel division manufactures

steel products in Wardha plant .Engineering division manufactures

specialised equipment for chemical,petrochemical,steel,defence ,power

plant etc

Financials of company

(Rs in Millions)

2008-09 2007-08

Sales 28415.644 24773.629

Profit (loss) after tax for the year (164.8545) (46.8921)Profit(loss) brought from previous

year (12631.012 ) ( 12162.091)

payment made as per

debt restructuring 461.4 826.7

distribution of share holding


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promoters 18.51 20.43

financial institutions/Banks 12.83 3.76

MFs/UTI 0.46 0.51FII 0.20 0.22

Others 68.00 75.08

Paid up equity 2111.488 1911.462

Promoters: Mr Mukesh Gupta, Mr Rajesh Gupta, Mr B.L.Agarwal by

themselves and through their associate companies.

When LSIL approached for finance of project activity, the financial

lenders advised that the loans can not be sanctioned:

1 As the project activity is an in house project not involving any costbenefits the loans can not be sanctioned.

2 The company has accumulated losses and is under debt restructuring

with BIFR.The financial lenders refusal / advice letter will be made available to DOE.

As the debt funds were not available from banks for the project activity the

project proponent has to raise the debt funds from private investors at higher

interest than lending rates of banks.

No access to

international

capital markets

due to real or

perceived risks.

LSIL have not received any foreign assistance and they are not in a position

to access the international capital markets.

How CDM

revenues help to

alleviate the

above barrier

CDM revenues help to make the project activity more financially feasible

and help convincing the private investors to lend funds for the project

activity.

Whether fossil

fuel based heat

generation face

the barrier

This is business as usual situation with no investment required. Hence the

capital expenses are not involved and the economic barrier is not faced.

3.a.b Technological

barrier

1 Skilled and or

properly trained

labour not

available

How CDM

revenues help to

alleviate the

above barriers

As Coke oven gas is highly poisonous gas the workers operating in the area

are to highly skilled. Project participant is not having such skilled workers

and they have to be recruited. The skilled persons are not available in the

area as steel plants are not located near by where coke oven gas is generated

and used. This can be supported by plant record of employment related

matters.

CDM revenues will enable the company to overcome the barrier partially by

providing higher wages and other facilities to attract skilled people and also

send existing staff for training and developing necessary skills. But as the

company has accumulated losses making available higher wages to certain

set of people can lead to internal worker problem on parity of wages and also

company fails to attract the best talent due to its reputation of loss making


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2

3

4

5

Lack ofinfrastructure for

implementation

of the technology

How CDM

revenues help to

alleviate the

above barriers

Lack of previous

experience in

using coke oven

gas.

How CDM

revenues help to

alleviate the

above barriers

Uncertainties of

availability of

coke oven gas.

How CDMrevenues help to

alleviate the

above barriers

Regulatory and

organisation.

Present lay out of the plant does not have the infrastructure does not havecorrect technology to handle coke oven gas as all jobs within a radius of 40

m could be a source of fire/ignition . Un authorised persons can not be

allowed to work in the area without shutting down the gas system. As per

present lay out ,the material handling systems like EOT cranes work on

overhead and run by electric supply connected with DSL ;there are

continuous sparks . This is very dangerous the gas area has to be completely

modified with new infra structure layout. This can be proved by plant

records.

CDM revenues help to overcome the barrier by changing the lay out and

shifting and carry out infra structure changes.

Company has no previous experience of using coke oven gas. Hence

having no previous experience acts as technical barrier. This can be

supported by plant records.

CDM revenues enable company to appoint with previous experience by

offering higher wages and other incentives. But as the company has

accumulated losses making available higher wages to certain set of people

can lead to internal worker problem on parity of wages and also company

fails to attract the best talent due to its reputation of loss makingorganisation.

The coke oven gas is sourced from UGML and the operations of UGML

Blast furnace is not under control of LSIL. Any planned or unplanned

shutdowns which are in control of UGML will immediately affect coke oven

gas supply which will disrupt LSIL production. This is definite barrier which

can not be overcome by LSIL and hence has to carry alternative furnace oil

storage and burner system in addition to coke oven gas system. This can be

supported by the agreement with UGML and plant visit.

The CDM alleviate the barrier by allowing LSIL maintain the alternativeexisting system to eliminate disruption of production. But this is partial

alleviation as the coke oven gas is sourced from UGML where LSIL do not

have control.

As the whole area will attract classification of highly hazardous area they


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6

technological

problem

How CDM

revenues help to

alleviate the

above barriers

No control over

coke oven gases

and Related

design problem.

come under Chief Controller Of Explosives CCOE and permissions are to be

sought and got.

The following restrictions will be placed due to the poisonous and explosive

nature of coke oven gas

5.1 No personnel shall be allowed to work in or go to the area where fuel

gases are present if the carbon monoxide content is more than 25 ppm. On

line monitoring system with alarm for carbon monoxide concentrated will be

provided near gas handling areas.

5.2 The following precautions have to be ensured within 40 m of gas lines

a) No manual hammering which may give spark.

b) No use of sparking tool or instrument

c) No naked fired) All welding or cutting jobs to be done with written clearance from

competent authority. A minimum oxygen level of 20% is to be ensured.

This acts as regulatory/ technological barrier for coke oven gas based heat

generation. This can be supported by CCOE regulations.

CDM revenues will help the company to plan provide for instrumentation to

detect any leakages and increase the safety provisions so that regulatory

conditions are adhered strictly.

As coke oven gas is being sourced from UGML the project proponent does

not have control on quality and quantity of gas availability.

The coke oven gas produced by the pyrolysis process contains tar,

ammonia,napthlene,light oil and sulphur before the gas is used as fuel. The

cleaning process is responsibility of UGML as LSIL is getting the surplus

coke oven gas after UGML have used coke oven gas in their processes.

The furnace burner system is designed to use clean coke oven gas and due to

any reason the coke oven gas is not free of these impurities then furnace

working will be affected. The design of furnace burner is critical and hence

unclean coke oven gas will present design problem.

Water present in coke oven gas will also present design problems as the pipe

line might get clogged if the atmospheric temperature falls below 4 deg c.

The above can be supported by research article coke manufacturing in

pollution prevention and abatement hand book of world bank group,

research article investigation of the hazards of using manufactured gas in

Baltimore by Shrader and other research articles.


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7

8

How CDMrevenues help to

alleviate the

above barriers

Production

related problem

How CDM

revenues help to

alleviate the

above barriers

Whether fossil

fuel based heat

generation face

the barriers

The CDM alleviate the barrier by allowing LSIL maintain the alternativeexisting system to eliminate disruption of production. But this is partial as

the coke oven gas is sourced from UGML where LSIL do not have control.

.

The composition of coke oven gas is critical as it decides the heat

availability. As the composition of coke oven gas can not be fully

guaranteed the heat availability in the furnace can be subjected to variation

and this will directly affect LSIL production.

The problem of what to do with coke oven gases when LSIL furnaces are

shut down is a concern which has to be addressed. The following twooptions are being considered.

Option 1 A boiler needs to be installed which will burn the coke oven gases

and produce steam. LSIL have presently no use for this steam and hence

have to find a consumer for steam. LSIL is considering installation of such

boiler so that waste heat is used and not wasted by burning while sending itto atmosphere through chimney. This option needs extra investments to the

extent of approximately Rs 80 million.

Option 2 LSIL will send coke oven gases to chimney and flare them before

letting out into atmosphere. The energy is wasted and LSIL have to provide

flare system at an additional cost of approximately Rs 30 million.

CDM revenues will enable the company to overcome the problem by

providing one of the above options or any other measure.

1 Barrier 1 : fossil fuel based system is very well established technology and

do not face skilled personnel problem as pool of trained people is large while

waste heat recovery systems are developing technology which is why skilled

personnel problem is faced by project activity. As LSIL is operating the

fossil fuel based system from inception it is business as usual and hence this

barrier will not be faced.

2 Barrier 2 : fossil fuel based systems do not face this problem as it is

existing system. As LSIL is operating the fossil fuel based system from

inception it is business as usual and hence this barrier will not be faced.

3 Barrier 3 : Company has fossil fuel handling experience hence furnace oil

based systems will not face this barrier in . As LSIL is operating the fossil


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fuel based system from inception it is business as usual and hence this

barrier will not be faced.

4 Barrier 5: fossil fuel based heat generation is steady and proper regulations

are in place. As LSIL is operating the fossil fuel based system from inception

it is business as usual and hence this barrier will not be faced.

5 Barrier 4,6,7 : These are specific coke oven gas related barriers not

applicable to fossil fuel based systems. As LSIL is operating the fossil fuel

based system from inception it is business as usual and hence this barrier

will not be faced.

Barriers due to

prevailing

practice.

1

Discuss the

project activity in

host country.

How CDM

revenues help toalleviate the

above barrier

Whether fossil

fuel based heat

generation face

the barrier

LSIL is a steel manufacturing company equipped with DR-EAF-

Continuous slab caster based steel plant of capacity about 600000

tonnes/year of steel. There are 36 units in India who have similar process

and capacity as per Ministry of Steel Government of India site

www.steel.nic.in

None of these units are having furnaces using coke oven gas for heating in

furnaces. Coke oven gas is available only with blast furnace based

manufacturers as they use coke

CDM revenues help to make the project activity feasible and enable the

company to put the project activity and cross the barrier of prevailingpractice of not using the waste heat in sponge iron industry.

Fossil fuel based heat generation does not face this barrier as it is common

practice to establish such units.

Sub-Step 3.b. Show that the identified barriers would not prevent the implementation of at least

one of the alternatives (except the proposed project activity).

In section B.4 all the realistic and credible alternatives have been discussed in step 1 in line with

methodology and in the above section the barriers have been discussed and the concludes as follows:

The conclusion arrived was the continuation of use of fossil fuel as fuel in the furnaces was the only

viable and credible alternative( H4) as it is existing scenario and is business as usual scenario also.

As this is business as usual since the year1994 and faces no barrier.

STEP-4 Common practice analysis


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Sub step -4a Analyse other activities similar to project activity

Analysis of

activities similar

to the project

activity.

LSIL is a steel manufacturing company equipped with DR-EAF-

Continuous slab caster based steel plant of capacity about 600000

tonnes/year of steel. There are 36 units in India who have similar process

and capacity as per Ministry of Steel Government of India site

www.steel.nic.in

None of these units are having furnaces using coke oven gas for heating

in furnaces.

The project activity is to generate heat from excess waste coke oven

gas generated in coke ovens after the use of gases in coke ovens. The

coke ovens produce coke and coke is used in steel industry where the

blast furnace is used for melting. Hence the steel unit which does nothave blast furnace do not have requirement of coke and hence coke oven

gas is not available as they do not have coke ovens.

Hence LSIL project activity is first of its kind in steel plants

using EAF route and using coke oven gas as heat source in furnaces.

This is possible as UGML who are in the same complex forming joint

facility with LSIL under which utilities are shared and all the product of

pig iron is sourced by LSIL as their input.

The industry followed the practice of letting the excess coke oven gases

out into atmosphere without utilising waste heat.

As per the ministry web site www.steel.nic.in the small steel mills splitup is as follows

1 EAF based units : 36

2 Induction furnace based units : 970

3 MBF,ETF based units:2

2 The following steel plants in private sector have blast furnaces.

1 Tata Steel Limited 5 million tonnes

2 Jindal steel limited 1.37 million tonnes

3 JSW Steel Limited 6.8 million tonnes

4 Ispat industries 3 million tonnes

5 kalyani steel 1 million tonne

Excess Coke oven gas in all the above industries is being used for

captive power generation and are under CDM project activities . If the

part of coke oven gases could have been used in furnace heating then

also 5 out of 36 units make less than 15% diffusion.


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Sub-Step 4.b Discuss any similar options that are occurring

Activities

in similar

scale.

LSIL is a steel manufacturing company equipped with DR-EAF-Continuous

slab caster based steel plant of capacity about 600000 tonnes/year of steel.

There are 36 units in India who have similar process and capacity as per

Ministry of Steel Government of India site www.steel.nic.in

None of these units are having furnaces using coke oven gas as heat source.

The industry followed the practice of letting the excess coke oven gases out

into atmosphere without utilising waste heat.

As per the ministry web site www.steel.nic.in the small steel mills split up is as

follows

1 EAF based units : 36

2 Induction furnace based units : 970

3 MBF,ETF based units:2

2 The following steel plants in private sector have blast furnaces.

1 Tata Steel Limited 5 million tonnes

2 Jindal steel limited 1.37 million tonnes

3 JSW Steel Limited 6.8 million tonnes

4 Ispat industries 3 million tonnes

5 Kalyani steel 1 million tonne

Excess Coke oven gas in all the above industries is being used for captive

power generation and are under CDM project activities .

3 The difference in the above project activities is

1 LSIL do not have blast furnace and coke oven batteries which generate coke

oven gas.

2 Excess coke oven gas is sourced from UGML after their consumption of

coke oven gas in coke ovens3 Coke oven gas is used as heat source only and no power generation is done.

.


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N

Optional

Y

Y

STEP 1. Identification of

alternatives to the project

activity consistent with

mandatory laws and

regulations.

STEP 2. Investment analysis

Does sensitivity analysis conclude

that the proposed CDM projectactivity is unlikely to be the most

financially attractive or is

unlikely to be financially Attractive?

STEP 3. Barrier analysis

(1) Is there at least one barrier

preventing the implementation of theproject activity without the CDM

And

(2)Is at least one alternative

Scenario, other than proposed CDM

CDM project activity, not prevented

by any of the identified barriers?

STEP 4. Common practice Analysis

(1)No similar activities can be Observed,

or (2) if similar Activities are observed,

are the essential distinctions between the

proposed CDM project Activity and

similar activities can reasonably be

explained?

Project is

Additional


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B.6. Emission reductions:

B.6.1. Explanation of methodological choices:

>> Selected methodology is ACM 0012 Version 3.2 Sectoral Scope 1&4 EB 51

a) The methodology gives 4 steps to determine the baseline. All these 4 steps have been discussed in B.4

and arrived at baseline scenario of W2/H4 as the WECM would have been flared before letting into

atmosphere and the existing business as usual scenario where fossil fuel is used to provide heat in

furnaces of LSIL.


The base line is fossil fuel i.e. Furnace oil for RHF and LPG for Coiler/CGL are being been fired in preproject scenario and the same scenario of using fossil fuel for firing in furnaces would have been

continued in the absence of project activity as it is business as usual scenario.

The methodology lists realistic and credible alternatives to project activity and arrives at conclusion ofcontinuation of current situation as the only plausible alternative in the absence of project activity.

b) The emission reductions are achieved by displacing fossil fuel used in furnaces with waste coke oven

gas which uses only waste heat and does not use any fuel.

c) The additionality has been proved using additionality tool the tool for the demonstration and

assessment of additionality (version 05.2) EB 39.

d) The baseline emissions have been calculated for scenario 1 using equations 1, 1a, 1a.2, 1h. The

methodology states that if the project activity is generation of heat only then one of the two sub sections

under scenario 1 shall be used for estimating the base line.

1 Base line emissions

As the project activity is for generation of heat only ,Base line emissions are calculated for Scenario 1 as

the heat is obtained from fossil fuel in baseline. The applicable equations is 1a.2

2 Calculation of energy generated (heat) in units supplied by waste heat

The heat generated is calculated by using gas analysis and calculate heating value and the flow of

WECM. As 100% heat is generated by WECM the metered values of flow will be used and heating value

is calculated using gas analyser data.

3 Capping of baseline emissions

The methodology requires capping for element of conservativeness. We have selected Method 2 usingmanufacturers data and applicable equation 1g to calculate baseline cap f cap.

The baseline emissionsfor the year shall be determined as follows

BE y = BE En, y + BE fist y = BE En, y (equation 1)

Where,


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BE y = Total baseline Emissions during a given year y.

BE En y =Baseline emissions from energy generated by the project activity during a given year y.

BE fist, y = Baseline emission from generation of steam, if any, using fossil fuel that would

have been used for flaring in the absence of the project activity =0 as no steam from fossil fuel is used for

flaring in baseline

BEy = BEElec,y + BEThermy = BETherm, y (equation 1.a)

Where,

BEy = Total baseline Emissions during a given year y.

BEElec y =Baseline emissions from electricity by the project activity during a given year y =0.

BETherm, y = Baseline emission from generation of thermal energy

As the project activity is for generation of heat only, Base line emissions are calculated for Scenario 1 as

clarified by note under this scenario. The applicable equations is 1a.2

Baseline emissions from thermal energy (BE Therm y)

BETher.y = fcap*f wcm**( (HG j y *EFheat, y )+(MG/ mech,tur))*EFheat, y (equation 1a-2)

MG/ mech,tur = 0 as no mechanical energy is generated in the project activity the equation becomes

BETher.y = fcap*f wcm**HG j y *EFheat, y (equation 1a-2)

BETher.y = Base line emissions from thermal energy during the year in tons of CO2

HG j y =Net quantity of heat supplied by the project activity in the year TJEFheat, y = CO2 emission factor t CO2/TJ

wcm = fraction of total heat generated by project activity using waste energy =1 as the heat generation

Is purely from waste energy

fcap= fraction of total energy produced using equation 1hEFCO2,I,j

EFheat, y = wsi,j ------------- ( 1a-22)

EP,I,y

EFCO2,I,j = CO2 Emission factor for base line fuel t CO2/TJ

EP,I,y =Maximum efficiency 100%wsi,j = fraction of total heat that is used by the recipient =1 as total heat is used is purely waste energy.

Capping of baseline emissions

As UGML is a new plant and no historical data is available Method 3 Case 1 is selected and following

equations will be used to estimate fcap.,

Q OE,BL

fcap = ------------ (1h)

Q OE, y


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Q OE,BL = Output energy that can be theoretically produced to be determined on the basis of maximum

recoverable energy from WECM which would have been released in the absence of project activity.

Q OE, y = quantity of actual out put energy during yeary

The project emissions (PE y) are zero as no cleaning of gases is done in the project activity and no

electricity is used for any other purpose during handling of delivered coke oven gas. No auxiliary fuel is

used while using waste energy.

Leakage is zero as per methodology.

Emission Reductions

ERy =BETherm, y - PE y =BETherm, y

ERy = Total emission reductions during the year y in tons of CO2

PE y = 0

BETherm, y = Base line emissions for the project activity during the year y in tons of CO2

B.6.2. Data and parameters that are available at validation:

(Copy this table for each data and parameter)

Data / Parameter: EP,I,yData unit:

Description: Baseline efficiency. Source of data used: Project participant has assumed 100% efficiency.

Value applied: 100%

Justification of the

choice of data ordescription of

measurement methods

and procedures actually

applied :

For conservativeness maximum efficiency is assumed.

Any comment: nil

Data / Parameter: Hwcm,BL

Data unit: KJ/m3

Description: Calorific value

Source of data used: UGML the waste coke oven gas supplier

Value applied: 4000x4.18 KJ/M3

Justification of thechoice of data or

description of

measurement methods


applied :

UGML the waste coke oven gas supplier has provided this data based on thecoke oven gas composition of Composition

CO 7.5 -9 % CO2 2.0-3.0% H2 55-57 % N2 2-6% CH4 24-26% CnHn 5%

Any comment: nil


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Data / Parameter: twcm,BL

Data unit: Deg CDescription: Average temperature of WECM


Value applied: 100 deg C


choice of data or

description of

measurement methods


applied :

UGML the waste coke oven gas supplier has provided this data based on the

coke oven gas availability.

Any comment: nil

Data / Parameter: Pwcm,BL

Data unit: Kg/cm2Description: Pressure of WECM


Value applied:


choice of data or

description of

measurement methods


applied :

UGML the waste coke oven gas supplier has provided this data based on the

coke oven gas delivery.

Any comment: Nil

Data / Parameter: Q OE,BLData unit: MJ

Description: Output energy that can be theoretically produced to be determined on the basis

of maximum recoverable energy from the WECM which would have been

flared in the absence of project activity.

Source of data used: UGML the waste coke oven gas generator

Value applied: 17.942 X 10 8 MJ/Year


choice of data or

description of

measurement methods


applied :

UGML have provided this data as excess coke oven gas that can be made

available to LSIL after considering their internal consumption.

Any comment: Nil


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B.6.3. Ex-ante calculation of emission reductions:

>>

In step1 of B.4 all the credible alternatives for waste gas and waste heat were considered . in the absenceof project activity UGML would have vented through chimney the excess waste coke oven gas as UGML

do not have further requirements in the process(W2) and LSIL would continue to use fossil fuel for

providing heat in their furnaces(H4) .

Base line

The base line is Furnace oil/LPG which could have been fired if waste coke oven gas is not available. The

furnace oil is used in RHF and LPG is used in CGL and Coiler furnaces in current situation.

The project activity reduces GHG emissions as Waste coke oven gas would have been burnt by UGML

before letting into atmosphere in the absence of the project activity and LSIL uses this waste coke ovengas in their reheating furnace to provide required heat which would have been otherwise provided by

firing Furnace oil/LPG. GHG emission due to burning of fossil fuel is avoided and thus achieves reductionin GHG emissions.

Baseline emissions from thermal energy (BE Therm y)

BETher.y = fcap*f wcm**( (HG j y *EFheat, y )+(MG/ mech,tur))*EFheat, y (equation 1a-2)

MG/ mech,tur = 0 as no mechanical energy is generated in the project activity the equation becomes


BETher.y = Base line emissions from thermal energy during the year in tons of CO2

HG j y =Net quantity of heat supplied by the project activity in the year TJ

EFheat, y = CO2 emission factor t CO2/TJ

fwcm =fraction of total heat generated by project activity using waste energy =1 as the heat generation

is purely from waste energy

fcap= fraction of total energy produced using equation 1gEFCO2,I,j

EFheat, y = wsi,j ------------- ( 1a-22)

EP,I,yEFCO2,I,j = CO2 Emission factor for base line fuel t CO2/TJ


The step wise calculations are as follows

1 Calculation offcap

As UGML is a new plant and no historical data is available Method 3 Case 1 is selected and following

equations will be used to estimate fcap.,

Q OE,BL

fcap = ------------ (1h)


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Q OE, y

Q OE,BL = Output energy that can be theoretically produced to be determined on the basis of maximum

recoverable energy from WECM which would have been released in the absence of project activity.

Q OE, y = quantity of actual out put energy during yeary

S No Description Reheating

Furnace

CGL

furnaces

Coiler

Furnace

Reference

document

1 Production

capacity

tonnes/year

1000000 250000 400000 Manufacturer

specifications

2 Base line

fuel

Furnace

oil

LPG LPG

3 Specific

heat

requirement

MJ/tonne

1350 1210 254 Manufacturer

specification

for RHF

3 years average

4 Heat

provided by

coke oven

gas MJ

Q OE,y

=Productioncapacity

*specific

heatrequired

13.5 X 108

3.025X

108

1.016X

108

5 Q OE,y MJ 17.541 X 108 MJ/Year

6 Quantity of

WECM

12250 NM3/hr

7 Calorific

value

KJ/NM3

16720 KJ/NM3

=16.72 MJ/NM3

8 Q OE,BL MJ 12250 X 16.72 X 24 X365

= 17.942 X 108

MJ/Year

9 fcap = Q OE,BL/ Q OE,BL

= 17.942 X 10 8 / 17.541 X 10 8

= 1.023 But as per methodology consider f cap = 1

Calculation off wcm


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CDM Executive Board

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As only waste heat is used for heat generation f wcm =1

Calculation ofHGj y


Furnace

CGL

furnaces

Coiler

Furnace

Reference

document

1 Production

capacity

tonnes/year

1000000 250000 400000 Manufacturer

specifications

2 Base line

fuel

Furnace

oil

LPG LPG

3 Specific

heat

requirement

MJ/tonne


specification

for RHF and

for CGL/Coilerfurnaces

3 years average

4 Heat

provided by

coke oven

gas MJ

13.5 X 108

3.025X

108

1.016X

108

5 HG j y 17.541 X 108 MJ/Year

Calculation ofEFheat, y

EFCO2,I,j

EFheat, y = wsi,j ------------- ( 1a-22)EP,I,y

EFCO2,I,j = CO2 Emission factor for base line fuel t CO2/TJ



Furnace

CGL

furnaces

Coiler

Furnace

Reference

document

1 Baseline

Fuel used

Furnace

oil

LPG LPG

2 EP,I,y 100% 100% 100% Considered

maximum for

conservativeness3 wsi,j =

fraction of

total heat

that is used

by the

recipient

1 1 1


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4 EFCO2,I,j 0.0719 0.0494 0.0494 As per CO2

Baseline data

Version 5November 2009

Available on

www.cea.nic.in

5 EFheat, y

kg of

CO2/MJ of

base line

fuel using

1a -22

0.0719 0.0494 0.0494

Calculation of baseline emissions BETher.y



Furnace

CGL

furnaces

Coiler

Furnace

Reference

document

1 Production

capacity

tonnes/year

1000000 250000 400000 Manufacturer

specifications

2 Base line

fuel

Furnace

oil

LPG LPG

3 Specific

heatrequirement

MJ/tonne


specificationfor RHF

3 years average

4 Heat

provided by

coke oven

gas MJ

HG j y

13.5 X 108

3.025X

108

1.016X

108

5 EFheat, y

kg of

CO2/MJ of

base line

fuel

0.0719 0.0494 0.0494 As per CO2

Baseline data

Version 4

Available on

www.cea.nic.in

6 fcap 1 1 1 Assumed.

Actual value to

be taken during

every year

calculations.


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7 f wcm 1 1 1 All heat will be

supplied by

waste gas8 wsig 1 1 1 Total heat will

be used by the

utility point.

9 Base line

reductions

tonnes of

CO2/year

97065 14943.5 5019.04

10 Total base

line

reductions

Tonnes of

CO2/year

BETher.y

117027.54 rounded to 117028

Project emissions

As no other fuel is used in the normal operation.

PE y = 0

Leakage

No leakage is applicable under methodology

Calculation of emission reductions

ERy =BETherm, y - PE y = 117028-0 = 117028 tons of CO2 per year

ERy = Total emission reductions during the year y in tons of CO2

PE y = 0BETherm, y = Base line emissions for the project activity during the year y in tons of CO2

= 117028 tons of CO2.

T

waste heat project at lsil pdd date 05 feb

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