BCML_II_CDM_PDD_April_07_2004.pdf

7/27/2019 BCML_II_CDM_PDD_April_07_2004.pdf

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CDM-PDD for BCML Haidergarh Bagasse Cogeneration Project

BCML - II Project Design Document

Classified - Confidential Page 1 of 1

CONTENTS

Sections

A. General description of project activity

B. Baseline methodology

C. Duration of the project activity / Crediting period

D. Monitoring methodology and plan

E. Calculations of GHG emissions by sources

F. Environmental impacts

G. Stakeholders comments

Annexes

Annex 1: Information on participants in the project activity

Annex 2: Information regarding public funding

Annex 3: New baseline methodology

Annex 4: New monitoring methodology

Annex 5: Table: Baseline data

Enclosures

Enclosure I: Current Power Scenario & Policies

Enclosure II: Baseline Study Report

Enclosure III: Report on Environmental Impact

Enclosure IV: Abbreviations

Enclosure V: Reference List


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A. GENERAL DESCRIPTION OF PROJECT ACTIVITY

A.1 Title of the Project Activity:

BCML Haidergarh Bagasse Cogeneration Project

A.2 Description of the project activity:

Purpose

The purpose of the project activity is to utilize the bagasse wastes of the Balrampur Chini Mills

Limiteds (BCML) Haidergarh sugar mill in Uttar Pradesh, India to generate 20 MW of electricity

for internal use and sale of the surplus electricity to the state power grid. By displacing imported

carbon intensive grid energy with a renewable, zero-carbon energy source, the BCML Haidergarh

Bagasse Cogeneration Project reduces carbon dioxide emissions over the project life. Replicable

technology, environmental, and sustainable development benefits also result from the proposed

CDM activity. These include: introducing efficient high pressure cogeneration technology to the

Indian sugar industry; reducing power shortages in the state of Uttar Pradesh (UP) India; and,

fostering sustainable economic growth through promoting energy self-sufficiency and resource

conservation in Indias sugarcane industry.

The BCML Haidergarh Bagasse Cogeneration Project is unique in India due to its use of high

efficiency boilers for optimizing the energy produced per unit of bagasse burned. While many

sugar mills burn their bagasse wastes, in 2003 less than 14% of the mills sold electricity to a

regional grid and only 1% of the 450 sugar mills in the country had high pressure boiler systems

(87 kg/cm2). With the goal of obtaining carbon revenues from the avoidance of grid-based

greenhouse gas (GHG) emissions, the company took the investment risks to secure financing to

invest in such high efficiency cogeneration systems, thereby demonstrating the attractiveness of

clean power systems to the sugar manufacturing industry in India. The proposed activity is highly

replicable as the countrys sugar mills produce vast quantities of bagasse wastes that could be far

more efficiently burned to generate energy for on-and off-site use while also reducing grid based

GHG emissions, which result from the countrys overwhelming (70%) dependency on coal.

With an installed capacity of 20 MW, the BCML Project uses a portion of the steam-electricity to

run its new cane crushing facility and cogeneration plant. The majority of the total electricity

produced, however, will be exported to the regional state electricity authority, the Uttar Pradesh

Power Corporation Limited (UPPCL), with 13.96 MW being sent from the plant during the cane

crushing season and 17.95 MW during the off-season period. The emission reductions from the

project activity will come from the avoidance of carbon dioxide emissions from fossil fuel use at

the regional electricity grid due to the displacement by the zero carbon bagasse residues.


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Projects contribution to sustainable development

The proposed project engenders important local, national and global sustainable development for

India. First, the renewable energy project activity supports Indias national policy to rely on clean

power. Second, the BCML Project will substitute, and hence decrease the future need, for primarily

coal-based power generation by the grid, thereby reducing carbon dioxide (CO2) emissions from

the Indian electricity sector. As coal supplied over 70% of the countrys electricity in 2003, and is

expected to increase over time according to the Uttar Pradesh state electricity board expansion

plan, diversification and energy self-reliance by the sugarcane industry creates global as well as

local air pollutant benefits. The governments clean power diversification strategy includes a multi-

pronged strategy focusing on reducing wastage of energy combined with the optimum use of

renewable energy (RE) sources, as proposed by the project. The BCML Project will positively

contribute towards the reduction in demand for Indias carbon intensive energy resources as well as

more efficient waste disposal and resource conservation.

Third, the project activity will contribute to local job and income creation in a very poor rural area

where cane growers (local farmers) face highly cyclical income flows. It will create steady higher

value jobs and skilled workers at the cogeneration facility. Finally, with the influx of carbon

financing from the Projects net emission reductions, the BCML Bagasse Cogeneration Project will

create a replicable, profitable model for the countrys sugarcane industry to diversify its product

offerings and increase its sources of revenue.1

In summary, the projects sustainable development benefits and issues include:

Export of 13.955 MW (say 13.96 MW) during sugar cane season and 17.95 MW during

off-season, thereby eliminating the generation of same quantity of power using

conventional fuel;

Conserving coal, a non-renewable natural resource;

Decreasing the growth in demand for coal, and making it available for higher-value

economic applications;

Reducing GHG emissions through the avoidance of fossil-fuel grid electricity generation;

Contributing to an increase in the local employment in the area of skilled jobs for

operation and maintenance of the cogeneration equipment;

More efficient industry waste use;

1Revenues from the sale of surplus electricity to a local grid is a critical source of additional revenues for

most sugar companies throughout major cane producing areas where electricity prices are sufficiently high to

warrant investment in power plants. These diversified cane/energy companies rely on electricity sales todampen fluctuating cane revenues, and strengthen their corporate positions.


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Capacity building through training the mill owners, farmers and power plant operators in

high efficiency cogeneration and sale of electricity to the grid;

Increasing the diversity and reliance of local energy resources, and improving the

transmission grid reliability through distributed energy use; and,

Providing a highly replicable, efficient model to other sugar mills in the state and country

for use of bagasse as a renewable energy resource.

A.3. Project Participants

Balrampur Chini Mills Limited - Project Promoter

A.4 Technical Description of the project activity

A.4.1 Location of the project activity

A.4.1.1 Host country party(ies): India

A.4.1.2 Region / State / Province: Uttar Pradesh

A.4.1.3 City / Town / Community: Haidergarh

A.4.1.4 Detail on physical location, including information allowing the unique identification

of this project activity:

The BCML Project involves the company building a new cane facility along with the proposed

cogeneration plant at its Haidergarh Chini Mills (HCM), a subsidiary of BCML, which is a sugar

mill complex at the Pokhra Village, Haidergarh Tehsil, Barabanki District in Uttar Pradesh, India.2

The cogeneration plant was under construction in November 2003 located adjacent to the road

connecting the town of Haidergarh and Pokhra village. The cogeneration plant consisting of the

boiler, turbo-generator, auxiliary systems, switch yard etc. is located adjacent to the evaporatorhouse of the sugar plant and the interconnection will be done for bagasse, steam, condensate, DM

water and electrical systems. All other requirements of the cogeneration project are also available at

site, including water requirement, infrastructure facilities etc. The 132 kV transmission lines from

the cogeneration plants switchyard will be connected to the existing UPPCL sub-station at

Jagadishpur, which is about 27 kms from the plant location.

2 The proposed CDM activity includes only the costs of the cogeneration plant.


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A.4.2 Category of the project activity

The BCML Haidergarh Bagasse Cogeneration Project is a supply side, renewable energy

cogeneration project activity that displaces the need for future grid electricity generation. It reduces

grid electricity greenhouse gas (GHG) emissions from fossil fuel combustion, mostly coal,

according to the list of sector/source categories listed in Annex A of the Kyoto Protocol. The

project very closely matches the UNFCCC small-scale CDM project activity categories under

Type-I, Electricity Generation for a system. The approaches used by the project for determining the

baseline methodology, meeting the additionality test, and emission reduction estimations that are

presented below are adapted from similar procedures used by the Vale Do Rosario Bagasse

Cogeneration Project (NM0001), a similar bagasse cogeneration and grid-avoided emissions

reduction that recently was approved by the CDM Executive Board.

Main Category: Renewable Energy Power project (Type-I)

Sub Category: D - Electricity Generation for a System

(Bagasse-based Cogeneration Project)

A.4.3 Technology to be employed by the project activity

Balrampur Chini Mills Limited (BCML) will use advanced cogeneration technology for the project

at the Haidergarh Chini Mills cane processing facilities by introducing high pressure, high

efficiency steam turbine configuration systems that exceed current Indian standards at sugar cane

mills but are well proven internationally. Currently, the Indian sugarcane industry uses bagasse

wastes in highly inefficient boilers with the primary goal being to dispose of the wastes rather than

maximize the amount of energy produced per ton bagasse burned. The proposed technology

employs the well proven steam-Ranking cycle process and condensing turbines in its combined

heat and power (CHP) plant to provide the most efficient amount of energy per unit bagasse used to

meet not only the mills cane processing and power plant needs but also have surplus electricity for

sale to the grid.

The Project will install a 20 MW power plant with the goal of exporting to the state grid, UPPCL,13.96 MW during the cane crushing season increasing up to 17.95 MW during the off-season

period after meeting its auxiliary power needs. The plant will run at an availability factor of 80% in

first year and 90% from the third year onwards. To produce higher power output, BCML will

implement a 110 tons per hour (TPH) nominal capacity boiler with the super heater outlet steam

parameters of 87 kg/cm2 & 5150C and a high efficiency extraction cum condensing (EC) turbo-

generator set of 20 MW nominal capacity (operating with the steam inlet parameters of 84 kg/cm2

and 5100C ). The boiler is designed with a travelling grate with electric drive to burn the bagasse.

The inlet feed water will be 1700C, with the feed water heated in a high pressure feed water heaters.

The deaerator outlet water temperature will be 1150 C. The deaerator outlet water temperature will


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be 115oC. This steam to bagasse percentage will be achieved with a minimum efficiency of 70%.

The cogeneration turbine will be a double extraction cum condensing machine. There will be one

controlled extraction at 2.5 kg/cm

2

and one uncontrolled extractions at 9 kg/cm

2

. The cogenerationcycle for the plant is designed as regenerative cycle with high pressure feed water heater and two

low-pressure feed water heaters.

Although very few bagasse based cogeneration power plants are designed with above mentioned

high pressure and temperature parameters in India, the technology is well proven worldwide. The

plant design with all auxiliary systems includes:

Bagasse handling system with storage and processing arrangements

High pressure feed water heaters

Ash handling system

Water treatment plant

Compressed air system

Air conditioning system

Main steam, medium pressure and low pressure steam systems

Fire protection system

Water system that includes a raw water system, circulating water system, condensate

system, de-mineralized water system and service with potable water system and,

Electrical system

The power plant will operate for 320 days per annum, which includes 200 days during the cane

crushing season, which is the first week of November to last week of May, and the balance of 120

off-season days. After meeting the steam and power requirements of the cogeneration plants

auxiliaries and proposed sugar plant (during season only), there will be 13.96 MW surplus power

during the cane crushing season and 17.95 MW of power during the off season that will be

exported to UPPCL. The power will be generated at 11 kV level. The internal consumption

requirements for auxiliaries and equipment of the sugar plant and the cogen plant will be met by

stepping down voltage level to 415V. The exportable power will be stepped up to 132 kV and

paralleled with the UPPCL grid at the sub-station in Jagdishpur, which is about 27 kilo meters (km)

from the plant.

In addition to the surplus/saved bagasse (@2.26 TPH and a total of 9,700MT/annum) from the

proposed Haidergarh sugar unit, surplus bagasse from the Babhnan plant of BCML (81,120 MT)

will be procured for off-season operation of the cogeneration plant. The Babhnan plant of BCML is

160 km away from the Haidergarh sugar unit and surplus bagasse will be transported in trucks.

Therefore, the total bagasse available (90,820 MT) for the cogeneration plant will be sufficient to

operate the project for 120 days in the off-season.


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Complete construction and commissioning of a high-pressure sugar cogeneration plant requires

around 16 -18 months from the start date. The start date can be the date of placement of the order

for the main plant and equipment, which includes boiler and Steam Turbine Generator (STG) set.To achieve on time project implementation, good planning, scheduling and monitoring is required.

Project activity implementation work of HCM is already going on and the commercial operation of

the project was expected to commence by November 2003.

A.4.4 Brief explanation of how the anthropogenic emissions of anthropogenic greenhouse

gas (GHGs) by sources are to be reduced by the proposed CDM project activity,

including why emission reductions would not occur in the absence of the proposed

project activity, taking into account national and/or sectoral policies and

circumstances:

The sources of greenhouse gas emissions with the Project include potential emissions from the

production of sugarcane and combustion of the bagasse in the boiler, as well as carbon dioxide

emissions from the bagasse transported to the mill during the off-season. As the proposed

cogeneration power plant uses sustainably-grown bagasse, there are no net carbon dioxide

emissions released to the atmosphere during production of the cane because of the carbon recycling

process. Also, the bagasse contains only negligible quantities of other elements like nitrogen,

sulphuretc. and the combustion of the bagasse leads to minimal releases of GHG emissions that areconsidered as negligible. The bagasse is expected to contain 53% moisture; this will keep the

temperatures at steam generator burners low enough not to produce nitrogen oxides. Moreover, the

specification of the steam generator will stipulate over fire air system with staged combustion,

which will ensure reduction in nitrogen-oxide emissions. The transport of bagasse to the mill

during the off-season will result in some diesel fuel related carbon dioxide emissions. The BCML

Project, hence, will release only a minimal amount of additional carbon dioxide or other GHG

emissions to the atmosphere.

Without the proposed project activity, the same energy load would have been supplied to the grid

customers from a mix of fossil-fuel based thermal power plants. Emission of CO2 would have been

occurred due to combustion of conventional fuels like coal by the state grid. The UPPCL grid relies

heavily on coal, as does most of India, and this reliance is predicted to increase overtime given the

significant power shortages and exponential demand growth in Uttar Pradesh. The Project will

reduce the combined margin carbon intensity of the grid given the fuel mix and dispatching

schedule of the grid. No transmission and distribution losses are considered in the greenhouse gas

accounting since the project is exporting power at high voltage of 132 kV at a short distance.

Hence, the BCML Project will result in lower anthropogenic emissions due to the avoidance of the

grids carbon dioxide emissions.


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A.4.5 Public funding of the project activity

No public funding from parties included in Annex I is available to or involved in the BCML

Haidergarh Bagasse Cogeneration project activity.


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B. BASELINE METHODOLOGY

B.1 Title and reference of the methodology applied to the project activity:

Title: BCML baseline methodology for emission reductions from grid-connected

bagasse cogeneration projects

[Based on the NM 0001 Vale do Rosario Bagasse Cogeneration (VRBC) project]

The BCML Haidergarh Bagasse Cogeneration Project is basically drawing upon the Vale do

Rosario Bagasse Cogeneration Project (VRBC) - NM0001 approved baseline approach, but

including a comparative analysis of the combined margin (CM) analysis used by VRBC to a new,

more conservative modified combined margin (MCM) emission estimation methodology, which

determines the baseline emission factor or rates for a grid connected renewable energy project

given the availability of reliable data on future grid capacity additions. The proposed activity is

similar to the VRBC Project in that it is a renewable energy/cogeneration project using sugarcane

bagasse wastes that will produce steam and electricity for on-site mill and power plant use and

surplus electricity sale to the regional power grid. The baseline approach, as described in Annex-3,

is designed for and suitable to grid-connected renewable energy cogeneration projects.

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

activity

As per paragraph 48 of decision CP-7 of Modalities and Procedures for CDM as defined by Article

12 of the Kyoto Protocol (KP), project participants shall select baseline methodologies for a project

activity from the following alternative approaches, selecting the one deemed most appropriate for

the project activity taking into account any guidance by the CDM Executive Board and justify the

appropriateness of their choice.

1. Existing actual or historical emissions, as applicable

2. Emissions from a technology that is the most economically attractive course of action

taking into account barriers to investment; or,

3. The average emissions of similar project activities undertaken in the previous five years, in

similar social, economic, environmental and technological circumstances, and whose

performance is among the top 20 percent of their category.

The BCML baseline scenario will be established by using the first methodological approach listed

above, which is based on actual or historical business-as-usual conditions along with demonstrating


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that the proposed activity faces high barriers. The proposed baseline methodology is designed for

and applicable to other bagasse or other renewable energy grid-connected projects. The use of a

historical or actual baseline methodology suits the project conditions given:

The applicability for renewable grid-connected cogeneration projects selling

surplus power to a state/regional grid

Data availability that supports the historical or actual business as usual (BAU)

baseline scenario

The additionality of the project cannot be based solely on the basis of an economic

analysis

Similarity of the proposed project to the baseline conditions set forth in the VRCBProject, an Approved Methodology (NM0001) by the CDM Methodology Panel

and Executive Board.

B.3 Description of how the methodology is applied in the context of the project

The selected historical baseline approach provides the best evidence of what are the expected

greenhouse gas emissions of the without project case. The project can use a business as usual

scenario for the sugarcane industry and electricity sector for the 10 year crediting period given:

Lack of sugar cane mills using high pressure steam-turbine technology and selling

power to a local grid

Dominance of UPPCL in terms of electricity market share

Expected fuel mix (mostly coal)

Relative stability of its operating as well as build margins, from which the

combined margin can be calculated for estimating the emission reductions.

This baseline approach is applied and substantiated in Section 4.1 and Annex 3 by analyzing the

alternative baseline options for the project given a business as usual and other conditions for the

sugarcane and electricity industries in Uttar Pradesh. These analyses point to the baseline option

as being the BAU supply of electricity from the fossil-based regional grid to the sugar mill given

the absence of the project activity. The additionality requirements of the CDM also are

demonstrated below to clearly show that the emission reductions result from the displacement of

future GHG emissions from the grid by bagasse cogeneration.

The baseline emissions estimation approach rests on a comparative analysis of the combined

margin (CM) methodology (recommended for SSC projects and approved for VRBC) to the new


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proposed modified combine margin (MCM) methodology, which is adjusts CM given the

availability of reliable, verifiable operating and build margin emission factors for future grid

capacity additions from sector experts and documented studies. A replicable new baselineemission process is proposed to improve calculations of a renewable cogeneration projects

emissions reductions anywhere in the world.

More details are provided in the Baseline Study Report (along with data) in Enclosure II.

B.4 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 (i.e., explanation of how and why this project is additional and therefore not

the baseline scenario)

Currently, the Indian power sector and Uttar Pradesh are heavily reliant on coal to supply their

power plants. With 70% of electricity in the country already coming from coal power plants, the

portion is projected to grow over the coming decade as the country expands generation to meet its

growing industrial and residential demand. In the UP electricity board expansion plan, new coal

and fossil fuel plants are planned throughout the region to provide both operating and build margin

power. Consequently, India faces a potential increase in its electricity sectors GHG emissions and

emissions intensity factor over the projects 10 year crediting period. While the country has a clean

energy strategy, the reality is that coal will continue to dominate in the near term and the sugarcane

industry will burn their bagasse wastes in inefficient boilers unless financial incentives, such as

carbon financing, exist to alter the relative prices of these energy resources.

In applying the CDM additionality tests as per the prescribed methodology to the proposed project

activity, it is ascertained that without the proposed carbon financing for the project the BCML

project promoters could not have obtained their private sector financing (similar to VRBC and

other CDM projects) and that the BAU baseline option is continued release of carbon dioxide

emissions from the regional grid. The project would not have occurred in the absence of the CDM

simply because no sufficient financial, policy, or other incentives exist locally to foster

development of widespread high efficiency bagasse cogeneration in India. The fact that only 1% of

the countrys 450 sugarcane mills now use high efficiency cogeneration to export power for sale

underscores the projects ability to meet the CDM additionality requirement.

B.4.1 Evaluation of likely non-project options: Business as Usual Baseline Options

The two significant attributes of that proposed CDM activity that make it additional and define the

baseline scenario, as shown below, are that it will:

use bagasse cogeneration to sell surplus electricity to the regional power grid; and.


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rely on high efficiency cogeneration technology (87 kg/cm2 outlet boiler pressure).

The facts presented below about the common practice in India regarding (1) bagasse cogeneration

and (2) high efficiency power generation by the sugarcane industry establish the baseline or future

without project scenario.

Traditionally, the sugar-manufacturing sector in India and elsewhere has limited knowledge of and

interest in commercial production and sale of electricity. Reasons are the high industrial barriers to

enter new product lines, financial hurdles to obtain financing for high efficiency bagasse

cogeneration systems, and difficulty of working with state electricity boards. Given these and other

barriers mentioned in more detail in Section 4.2 below, Indias cane industry does not have the

incentive to invest in high efficiency bagasse cogeneration for surplus electricity sale in the future.

In such circumstances they will continue to use bagasse for in-efficient burning and either low or

no export of electricity to the grid.

In summary, the baseline scenario for the sugarcane industry in Uttar Pradesh is not the proposed

project but to continue with the industrys business as usual (BAU)status quo, which is to burn its

bagasse wastes in inefficient boilers and not sell power to the grid.

B.4.2 Assessment of Barriers

Out of 450 sugar mills in India only 32 are generating surplus electricity using bagasse and selling

power to the grid. The potential for power generation in UP using bagasse is estimated at 1,350

MW per year, which is roughly 15% of the installed capacity (9,000 MW) of the grid. There are

several barriers due to which the above potential is not being harnessed. The proposed project is

additional as it overcomes the barriers discussed further in this section:

(a) Investment risk barrier

Project cost of conventional cogeneration project with low-pressure configuration for power

generation with bagasse as a primary fuel is drastically lower than the project cost of proposed

high-pressure configuration. High upfront cost, lack of easy and long-term financing, high project

development to investment ratio, project cash flows etc. are the known investment barriers to thehigh efficiency bagasse cogeneration projects

3.

Most sugarcane owners and farmers do not have the creditworthiness to obtain private sector

financing for investing in high efficiency cogeneration technology due to the cyclical nature of the

primary product (sugar), hence their income flows, and lack of availability to the carbon financing

market. The price of sugar cane in India is controlled and governed/pre-decided by the government.

To protect sugar cane farmers interests a minimum sugar cane price based on the quality of sugar

3

As demonstrated by the approved Vale do Rosario CDM project in its use of a 48(b) economicattractiveness approach in establishing its baseline scenario.


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cane is pre-decided. Also, till year 2002 the price of sale of sugar (as per the quota) was decided by

government. Due to such restrictions, the accumulation of sufficient funds to finance a high

investment and capital-intensive project, such as the proposed CDM cogeneration project is a quitedifficult proposition. Most companies, including BCML, also have no background in selling power

to the grid or other users, so seeking such financing from a private bank proves a key barrier.

Thus, BCML by investing in the higher cost, high efficiency renewable energy project is taking

investment risks that only two other sugar mill owners in India are willing to bear. Although

BCML obtained bank funding for the proposed project, it assured the bank that it can repay the

loans given its willingness to realize a lower internal rate of return and profit margin for the project

if it is unable to obtain CERs from the emission reductions. Due to the present uncertainty involved

with the transaction under the CDM and rate of CER, the financial viability of the proposed project

cannot solely depend on CDM funds. The projects internal rate of return (IRR) is expected to

improve by about 2% if at all the CDM funding is available by 2003-04 after registration at

UNFCCC.

BCML, hence, is shouldering a significant market or financial risk and taking a pro-active

approach by showing confidence in the Kyoto Protocol/CDM system. Besides the direct financing

risk, BCML is also shouldering the additional transaction costs such as preparing documents,

supporting CDM initiatives and developing and maintaining M&V protocol to fulfil CDM

requirements.

(b) Technology Barrier

The typical alternative to the project activity is to continue to use low or medium pressure co-

generation configuration. The proposed project activity has adopted a high pressure co-generation

technology, which is new in UP and in India as well, and has low market share and less penetration

than its less efficient alternatives. The penetration of new high efficiency cogeneration technology

requires greater economies of scale, trouble-free plant operation, availability of spares, availability

of skilled manpower to operate the plant continuously etc. BCML is the first company in UP to

take the risk by looking for carbon financing to overcome the technology barrier and investing in

the 87 kg/cm2

pressure and STG of double extraction cum condensing technology. The

technological barriers become even more significant considering the renewable energy potential in

UP using bagasse as fuel. Success of the proposed CDM project will provide a trigger for

replication in the other sugar mills thus further reducing the GHG emission to the atmosphere.

(c) Other Barriers

Managerial resources barrier: BCML has 45 years of background with sugar cane and

sugar production. The region where the plant is proposed is dominated by agriculture and

there are no large industries nearby. Trained manpower capable of handling the power


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project is not readily available to BCML and BCML has to overcome this managerial and

operational resource barrier.

Organisational barrier: As stated earlier, BCML for long have been involved in business

of sugar production and rural economics. They have to transform (overcome barrier) to

deal with the economics of electricity generation, distribution and dealing with power

sector economics, bureaucracy etc.

Institutional Barriers: BCML has signed a Power Purchase Agreement (PPA) with

UPPCL. For their earnings the project depends on the payment from UPPCL against the

sale of electricity to the grid. Electricity boards in India are not very healthy (Reference #

32) and its likely that there could be problems with cash flows of BCML. BCML has to

take this risk and face this institutional barrier on which they have limited or no control.

This situation makes CDM funds even more critical for BCML.

It is estimated that, of the total project proponents who get approval from central/state electricity

authority to establish bagasse/biomass based power project in India, only a few are successful in

commissioning of the plant due to some of the above mentioned barriers. The data on the state of

bagasse-based cogeneration suggests that the barriers discussed are strong enough to hinder growth

of the sector. The project is additional as it overcomes the above risks and barriers, which

traditionally are not core business activities of the sugarcane industry.

B.4.3 Additionality test for Prevailing/common practices

Regarding the use of bagasse for export sale of electricity to the grid, less than 14 percent of the

450 operating mills in Indias sugarcane industry produced electricity for sale to the grid in 2003.

As of July 2003, only three sugar mills in India (less than 1% of the 450 operating) have installed a

high pressure 87 kg/cm2

cogeneration configurations of the proposed project. Out of these three

high efficiency cogeneration projects, one is in Uttar Pradesh.

In Table 1, only seven out of 118 sugar mills in UP are generating and exporting surplus power to

the grid. Most of them use less efficient technology (below 45 kg/cm2

outlet boiler pressure), and

export power surplus power to the tune of 1 MW up to 3 MW. A few units use 67 kg/cm2 outlet

boiler pressure and export up to 10 MW. Systems with outlet boiler pressures of 45 to 67 kg/cm2

produce less power are far less capital intensive than the proposed BCML Bagasse Cogeneration

Project. BCML had an option to install low or medium pressure boilers as against the optimal

selected configuration for the proposed CDM activity of 87 kg/cm2

outlet boiler pressure but chose

riskier alternative of the latter given the possibility of obtaining carbon financing and

demonstrating the viability of these systems in a global carbon economy.


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Table 1: Characteristics of Sugar Mills in Uttar Pradesh in 2003

Total number o Su ar Mills in UP 118

Closed Sugar Mills 17

Sugar Mills under private sector 52

Sugar Mills under Government/semi Government sector 49

Sugar Mills with co-generation and export of power to grid 7

Sugar Mills with similar or better configuration as of HCM 14

(Source : Indian Sugar Mills Association and field visits to UP)

BCML registered as a sugar mill in the year 1956 and has successfully completed forty-five

seasons of sugar manufacturing. With long history of sugar production and no power export,

BCML would have continued with its historical sugar and energy production processes in the

future (i.e., for the baseline scenario) without the availability of carbon financing according to its

owners and investors.

B.4.4 Additionality test for Regulatory/Legal requirements

There is no legal requirement binding BCML to efficiently burn its bagasse wastes according to

national and state environmental regulations. Hence, BCML is not legally bound to invest in the

high efficiency bagasse cogeneration activity.

The additionality tests in Section B.4 above, therefore, conclude that the proposed project activity

is additional in that the anthropogenic emissions of GHGs from the grid would have occurred in

the absence of the registered CDM project activity.

B.5 Description of how the definition of the project boundary related to the baseline

methodology is applied to the project activity:

For the proposed activity, the project boundary is from the point of fuel supply to the point of

power export to the grid where the project proponent has a full control. Thus, the boundary covers

fuel storage and processing, boiler, STG and all other power generating equipments, captive

consumption units and steam consuming equipments, since along with the use of low-pressure

extraction steam for the process, part of the electricity generated will be used for auxiliary

consumption. Further, upstream emissions should be placed within the project boundary when the

project developer can significantly influence these emissions. In principle this could mean that the

bagasse source should be included within the system boundaries. However, the project will use

only HCMs and another mills-generated bagasse that is available in abundance. Direct off-site

4 The first unit of BCML at Balrampur, UP.


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emissions will result from transport of the latter mills bagasse, which are accounted for in the

following project emission calculations.

As per the baseline emission estimation methodology of the grid, the following grid characteristics

apply:

1. UP state grid (UPPCL) is expected to be power deficit over the crediting period

2. The historical and actual records of UPPCL (reference # 17) suggests that there is no

import or export of power to or from other states to UPPCL grid, hence, the grid acts as an

island with no influence from power generated by other states

3. The UPPCL has the sole authority to make decisions on the purchase of power from

BCML/HCM

4. Capacity of UPPCL grid is around 8,909 MW is sufficient to take into account the avoided

emissions due to proposed project activity of exporting 14 to 17 MW to the grid.

For the calculations of baseline emissions, the individual power plants (existing and proposed) are

taken as the baseline boundary. Since the project would not have any T&D losses impacts it is not

included in the project boundary. The flow chart and project boundary is illustrated in the

following diagram:


17/99




Babhnan S ugar Mil ls

Bagasse Temp.

Storage

New Bagasse Fired

HP B oilerCO

2emissions

CO2

emissions

SequesteredPower G eneration

Unit

Electricity

Captive

Consumption

Steam for

Aux iliar y

Operation

Condenser

State

Electricity

Grid

End User

Haidergarh Sugar

MillsBagasseBagasse

Project

Boundary


18/99




B.6 Details of baseline development

B.6.1 Date of completing the final draft of this baseline section:

July 2003

B.6.2 Name of person/entity determining the baseline:

BCML and their associated experts (see Annex 2).


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C. DURATION OF PROJECT ACTIVITY / CREDITING PERIOD

C.1 Duration of the project activity:

30 years

C.1.1 Starting date of the project activity:

The project is scheduled to commence commercial production by November 2003.

C.1.2 Expected operational lifetime of the project activity:

Life time of the project: 30 years

C.2 Choice of crediting period and related information:

Option 1: 7 years (2003-2009) with renewals

Option 2: 10 years (2003-2012)

For proposed project, the preferred credit period is 10 years.

C.2.2 Fixed crediting period; at most ten (10) years:

C.2.2.1 Starting date: November 2003

C.2.2.2 Length (max 10 years): 10 years


20/99




D. MONITORING METHODOLOGY AND PLAN

D.1. Name and reference of approved methodology applied to the project activity:

Name: BCML monitoring methodology for grid connected renewable energy

bagasse/biomass power projects.

A new monitoring methodology is designed in line with the proposed baseline methodology as

proposed in Annex 4. The proposed monitoring methodology is for the grid connected renewable

energy/bagasse cogeneration project and suitable for the project activity.

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

activity:

Since the project is a grid connected renewable energy project, the quantity of emission reductions

totally depends on the amount of surplus power from the bagasse cogeneration project exported to

the grid, which will avoid carbon intensive grid generation. The methodology covers the

monitoring of the amount of power exported along with other parameters affecting the quantity of

power exported and resulting CO2 emissions. Hence, this is the most suitable monitoring

methodology applicable for the project and is similar to that proposed and approved for the Vale do

Rosario Project (NM 0001).

Description of the Monitoring Plan

The Monitoring and Verification (M&V) procedures define a project-specific standard against

which the project's performance (i.e. GHG reductions) and conformance with all relevant criteria

will be monitored and verified. It includes developing suitable data collection methods and data

interpretation techniques for monitoring and verification of GHG emissions with specific focus on

technical / efficiency / performance parameters. It also allows scope for review, scrutinize and

benchmark all this information against reports pertaining to M & V protocols.

The M&V Protocol provides a range of data measurement, estimation and collection

options/techniques in each case indicating preferred options consistent with good practices to allow

project managers and operational staff, auditors, and verifiers to apply the most practical and cost-

effective measurement approaches to the project. The aim is to enable this project have a clear,

credible, and accurate set of monitoring, evaluation and verification procedures. The purpose of

these procedures would be to direct and support continuous monitoring of project performance/key

project indicators to determine project outcomes, greenhouse gas (GHG) emission reductions.

The project revenue is based on the units of bagasse generated power exported as measured by

power meters at cogeneration plant and check meters at the high-tension substation of the UPPCL.


21/99




The monitoring and verification system would mainly comprise of these meters as far as power

export is concerned. The bagasse input is also to be monitored. The measurement of the amount of

exported electricity will be determined through looking at monthly sale invoices to UPPCL. Theinvoices, based on meter readings will also be covered in the regular finance audit. The

measurement of the quantity of bagasse used will produce evidence that the energy is being

generated with zero net CO2 emissions.

The project employs state of art monitoring and control equipment that will measure, record,

report, monitor and control various key parameters. Parameters monitored will be quantity and

quality of bagasse fuel used, total power generated, power exported to the grid, CO 2 content in the

flue gas, oxygen content in flue gas, particulate matter emissions from the project, etc.(Details

enclosed in the tables given below). These monitoring and controls will be the part of the

Distributed Control System (DCS) of the entire plant. All monitoring and control functions will be

done as per the internally accepted standards and norms of HCM.

The instrumentation system proposed for the project will mostly comprise microprocessor-based

instruments of acceptable Indian and electricity sector standards with the mandated regulatory

levels of accuracy. All instruments will be calibrated and marked at regular intervals so that the

accuracy of measurement can be ensured all the time.

The quantity of emission reduction units claimed by the project will be only a fraction of the total

generated emissions, which depends on the actual generation mix of the grid in a particular year.UPPCL publishes yearly reports regarding the performance of all power generation units, which

include private sector generation units and UPPCLs own generation units. Hence, authentic data

related to the measurements, recording, monitoring and control of the generation mix of the

UPPCL network is ensured.

The UPPCL report contains all information regarding type of generation like hydro, thermal,

nuclear, renewable etc., installed capacity, de-rated capacity, performance of generating unit, actual

generation, capacity additions during the year, etc., which can be used for verification of generation

mix and emission factors for baseline calculation for a particular year. BCML will have access to

such information per their power purchase agreement and other negotiations with UPPCL.

GHG SOURCES

Direct On-Site Emissions

Direct on-site emissions after implementation of the project arise from the burning of bagasse in the

boiler. These emissions mainly include CO2. However, the CO2 released equals or more than the

amount of CO2 taken up by the bagasse / biomass during the growth of sugar cane plants / biomass

species, therefore no net emissions occur.


22/99




In Uttar Pradesh, sugar crop residues are only available for about 160 to 180 days a year; hence

adequate storage facilities are required. This is not expected to generate significant GHG emissions.

Methane emissions only occur in anaerobic circumstances and will not take place during thestorage of dry bagasse residues as bagasse bales.

In principle, nitrous oxide (N2O) emissions could arise from storage. However, no data on emission

from storage is available and the amount is considered negligible.

We assume the amount of nitrous oxide emissions formed during bagasse to be comparable to the

amount of N2O emissions arising from agricultural residues when left on the field. As a

consequence the N2O emissions will not be influenced by the project and will therefore not take

into account for monitoring purposes.

Direct Off-Site Emissions

Direct off-site emissions in the proposed project arise from the bagasse transport. It is estimated

that the transport of bagasse from Babhnan unit will contribute to emission of 1950 tCO2 per

annum. To provide a conservative estimate of the emission reductions, the transport emissions

considered as leakage.

Since the proposed project uses mill generated bagasse waste only, no additional biomass is grown

on account of the project. Therefore, the project does not result in an additional uptake of CO2 by

sinks.

Indirect On-Site Emissions

The indirect on site GHG source is the consumption of energy and the emission of GHGs involved

in the construction of bagasse base power plant.

Considering grid emissions avoided through bagasse cogeneration and the life cycle assessment of

the total power generated, the indirect off-site emissions source is too small vis a vis the project

life, and hence not included in total project emissions.

No other indirect on-site emissions are anticipated from the project activity.

Indirect Off-Site Emissions

The indirect off-site GHG source is the emission of GHGs that are involved in the process

construction and erection of the transmission lines from the nearest sub station, up to the point from

where the project wheels the power.


23/99




Same as above, considering the life cycle assessment of the total power generated and the

emissions to be avoided in the life span of 1520 years, the indirect off-site emissions are also

negligible and ignored in the monitoring system.

No other indirect off-site emissions could occur since the same mill generated bagasse will be used

in the proposed project. The electricity generated less own consumption will be exported to the grid

to meet the increasing demand of electricity services, and there will be no creation of new activities

or demand in other places / sites caused by the project.

Project Parameters affecting Emission Reduction

Monitoring Approach

The general monitoring principles are based on:

Frequency

Reliability

Registration and reporting

As the emission reduction units from the project are determined by the number of units exported to

the grid (and then multiplying with appropriate emission factor) it becomes important for the

project to monitor the net export of power to the grid on a real time basis.

Frequency of monitoring

The project developer will install all metering and check metering facilities within the plant

premises as well as in the grid substation where exported power is connected to the grid. The

measurement will be recorded and monitored on a continuous basis by both UPPCL and the project

developer through DCS.

Reliability

The amount of emission reduction units is proportional to the net energy generation from the

bagasse cogeneration project. Thus, the monthly kWh meter reading is the final value forestimation of emission reductions due to the project activity. All measurement devices will be of

microprocessor based with best accuracy and will be procured from reputed manufacturers. Since

the reliability of the monitoring system is governed by the accuracy of the measurement system and

the quality of the equipment to produce the result all power measuring instruments must be

calibrated against the Indian standards once a year for ensuring reliability of the system. All

instruments carry tag plates, which indicate the date of calibration and the date of next calibration.

Therefore, the system ensures the final generation is highly reliable.


24/99




Registration and reporting

Registration of data is on-line in the control cabin through a microprocessor. However, hourly data

logging will be there in addition to software memory. Daily, weekly and monthly reports are

prepared stating the generation. In addition to the records maintained by the HCM, UPPCL also

monitors the power exported to the grid and certify the same.

The other major factors that need to be ensured and monitored are: (1) the use of only bagasse (and

if required biomass) fuel for power generation; and, (2) the parameters that would ensure smooth

and regular operation of the cogeneration. No other project specific indicators are identified that

affect the emission reductions claims.

Bagasse Requirement and Utilization

Availability of Bagasse

The major fuel proposed to be used by the cogeneration plant is bagasse, stockpiled by the

Haidergarh (HCM) and Babhnan sugar producing units of BCML. The bagasse saved by these

sugar mills, after meeting the sugar plant requirement, will be supplied to the cogeneration plant.

Hence, production of electricity is mainly dependant on the bagasse received from these sugar

mills. The receipt of bagasse to the cogeneration plant mainly depends on the following

parameters:

Total cane crushed by the sugar mills

Variety / fiber content of the sugar cane crushed

In-house bagasse consumption by sugar mills

As per the DPR there will be no shortage of bagasse.

Quantity of the Bagasse fuel used in the boiler

The total amount of saved bagasse received from the Haidergarh and Babhnan mills will be

based on the total sugar cane crushing, bagasse generated and use for internal consumption.

The fuel entered into the plant premises will be first dumped in the fuel storage area from where

it will be taken to the fuel processing machinery with the help of belt conveyors. The fuel

processing machinery will cut the bagasse fuel into the required size and the processed bagasse

fuel will be taken to boiler bunkers with the help of belt conveyors from where the fuel finally

enters the boiler. The belt conveyors, which feed the bagasse fuel from processing machinery to

boiler bunkers, consist of a metal detector, tramp iron detector, magnetic separator and online

weighing system. Metal detector, tramp iron separator etc. will prevent any metal particles

entering into the boiler and ensure that only fuel is conveyed to the boiler. An online weighing

system provided to the belt conveyors measures, records and transmits the actual quantity of the

fuel entering into the boiler for online monitoring in the DCS. The weighing system will be


25/99




calibrated regularly to ensure the accuracy of the measurement. The data will be recorded for

further verification.

Since it is mandatory for sugar industries to submit yearly performance records (RT-8C form),which also includes above parameters, to the government, these figures are to be crosschecked

from this record. The amount of biomass purchased, if any, will be based on invoices / receipts

from farmers and/ or fuel contractors. In case any start-up fossil fuel would be purchased this

amount will also become evident from the audit report. However the DPR clearly indicates that

the bagasse generated at Haidergarh and Babhnan will be sufficient for 320 days of cogeneration

operation.

Quantity of the additional biomass fuel purchased

HCM will maintain proper records of additional biomass if procured and will be kept open for

verification. The quantity of the fuel received / purchased will be measured, recorded and

monitored from starting point in the project i.e. at the entry of the project premises. The project

developers will install a computerized weighing system through which each truck of the fuel will

pass through. The information of each truck of bagasse/biomass fuel will be monitored by

promoters regularly, through computerized management information systems. No truck with

bagasse/biomass fuel will be able to enter into the plant without weighing the fuel. The weighing

system will be calibrated and sealed regularly as per the prevailing practices.

Bagasse used in the boiler

The main type of fuel proposed for the power generation is only bagasse. The properties of the

bagasse fuels like ultimate analysis, calorific value, ash composition etc. are already established

and will be consistent in the region. However, it is proposed to monitor various properties of

bagasse fuels by taking samples at random from the fuel lots from the processed fuel so that in

case of any drastic change in the properties, corrective actions can be taken. The measurement of

fuel properties like ultimate analysis, calorific value etc. will be done at reputed laboratories as

per international practices and data or documents will be kept open for verifiers. The data will

also be computerized and monitored through management information system of the DCS.

Operational Parameters of the Cogeneration Unit

Total Power Generated

The total power generated by the power project will be measured hourly in the plant premises to

the best accuracy and will be recorded, monitored on a continuous basis through DCS. All

measurement devices will be microprocessor based with best accuracy and will be procured from

re uted manufacturers. All instruments will be calibrated at re ular intervals. All instruments


26/99




carry tag plates, which indicate the date of calibration and the date of next calibration. The

parameter will substantiate the smooth operations of the cogeneration plant. During verification,

the total power generated per month would be verified against the monthly invoice /billing of thepower exported to the grid.

Power consumed by the plant auxiliaries

The power consumed by plant auxiliaries will be recorded in the plant premises to the best

accuracy. This will be recorded and monitored on a daily continuous basis through DCS. All

measurement devices will be microprocessor based with best accuracy and will be procured from

reputed manufacturers. All instruments will be calibrated at regular intervals. All instruments

carry tag plates, which indicate the date of calibration and the date of next calibration. The total

amount of power consumed hourly by the auxiliaries would affect the total power to the exported

to the grid and therefore the amount of GHG reductions. Therefore, any increase in the

consumption pattern of the auxiliary system would be attended to.

Power exported to the grid

The project developer will install all metering and check metering facilities within the plant

premises as well as in the grid substation where exported power is connected to the grid. The

measurement will be recorded and monitored on an hourly continuous basis by both UPPCL and

the project developer through DCS. In addition to the records maintained by the promoter,

UPPCL also monitors the actual power exported to the grid and certify the same. All

measurement devices will be of microprocessor based with best accuracy and will be procured

from reputed manufacturers. All instruments will be calibrated at regular intervals. All

instruments carry tag plates, which indicate the date of calibration and the date of next

calibration.

Efficiency of the cogeneration project activity.

High-pressure boiler of 87 kg/cm2

at 510oC will be used by the project. The performance of the

boiler is already predicted and can be verified. However, the boiler proposed for the project is amulti-fuel fired boiler, which can use almost any type of biomass fuel. The inlet and outlet steam

parameters will be measured and monitored along with the parameters of fuel and feed water.

Extraction and condensing type of steam turbine with generator set of 20 MW will be used by

the project. Quantity with major quality parameters of the steam at the inlet to the turbine will be

measured on-line and monitored through DCS.

Based on the measured input and output parameters cogeneration system efficiency will be

calculated and monitored by DCS. In case of any irregularity, the root cause of the deviations

would be identified and the necessary corrective actions will be taken.


27/99




All the above parameters / factors will demonstrate the performance of the project at any point of

time.

Verification

The performance of the bagasse based cogeneration project should lead to CO2 emission reductions

by the avoidance of grid-based carbon dioxide emissions. In other words, the longer the

cogeneration power plant runs and exports power to the grid, there higher the emission reductions.

The project control system comprises a state of the art sophisticated control and monitoring system

like Distributed Control System, which measures, collects the information about various process

parameters, records, monitors and controls on a continuous basis. Fully functional management

information systems will be built in DCS so that accessing and verification of actual data are

possible at any point of time. The major activities to be verified are as under:

Verification of various measurement and monitoring methods

Verification of instrument calibration methods

Verification of data generated by DCS

Verification of measurement accuracy

Like above activities, the following major project parameters affecting the emission claims need to

be verified based on the available operating data:

Cane crushing by Haidergarh and Babhnan sugar units

Quantity of the bagasse / biomass fuel along with the additional biomass fuel

purchased

Type of biomass or other fuels used in the boiler

Efficiency of cogeneration system.

Total generation of power and captive & auxiliary power requirements.

Power exported to the grid

Particulate matter emissions


28/99


BCML - II

Classified - Confidential

D.3. Data to be collected in order to monitor emissions from the project activity, and how this data will be

Considering the above, the details of total power generated and other important project parameters to be monitored a

Note CP: Credit Period

a) Parameters affecting the Emission Reduction potential of the Project Activity

ID

number

Data type Data

variable

Data unit Measured (m),

calculated (c)

or estimated

(e)

Recording

Frequency

Proportion

of data

to be

monitored

How will the

data be

archived?

(electronic/

paper)

For how long is

archived data to

be kept?

D.3.(a)1 Power Total

Electricity

generated

KWh Measured Continuous 100% Electronic CP+2 years Meas

and

basismicro

procu

D.3(a).2 Power Power export KWh Measured Continuous 100% Electronic CP+2 years As pe

Detai


29/99


BCML - II


(b) Fuel related Parameters affecting the Project Activity

ID

number

Data

type

Data

variable

Data unit Measured (m),

calculated (c)or estimated

(e)

Recording

Frequency

Proportion

of datato be

monitored

How will the

data bearchived?

(electronic/

paper)

For how long is

archived data tobe kept?

D.3.(b)1 Fuel Quantity of

Bagasse

MT Measured Hourly 100% Paper CP+2 years


Biomass

MT Measured Hourly 100% Paper CP+2 years

D.3.(b)3 Fuel Calorific

value of

Bagasse

Kcal/kg Actual sample

testing

Quarterly 100% Paper CP+2 years


value of

Biomass

used, if any

Kcal/kg Actual sample

testing

Monthly 100% Paper CP+2 years


fossil fuel(s)

used if any

MT/KL Measured Monthly 100% Paper CP+2 years


value of

Fossil fuel(s)

used, if any

Kcal/kg Sample test

report

Lot wise Paper CP+2 years Supp

lot w

from


30/99


BCML - II


(c) Parameters affecting the efficiency of the Project Activity

ID number

(Please usenumbers to

ease cross-

referencing to

table D.6)

Data type Data variable Data unit Measured (m),

calculated (c)or estimated

(e)

Recording

frequency

Proportion of

data to bemonitored

How will th

data bearchived?

(electronic

paper)

D3 (c) - 1 Equipment/

operation

specific

Efficiency of

Cogeneration

activity

% Calculated Continuous

(per hour)

100% Paper

D3 (c) 2 Operation

specific

Cogen Plant

Heat Rate

kcal/kWh Calculated Continuous

(per hour)

100% Paper


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BCML - II


(d) Parameters for the environmental aspect monitoring

ID number

(Please use

numbers to

ease cross-

referencing to

table D.6)

Data type Data variable Data unit Measured

(m),

calculated (c)

or estimated

(e)

Recording

frequency

Proportio

n of data

to be

monitored

How will

the data be

archived?

(electronic/

paper)

For how

long is

archived

data to b

kept?

D3 (d) 1 Stack

Emissions

Suspended

Particulate

Matter

Mg/Nm3

Measured

and

Calculated

Bi-

monthly

Random

Sample

Paper CP+2

years


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BCML - II


D.4. Potential sources of emissions which are significant and reasonably attributable to the project activity

project boundary, and identification if and how data will be collected and archived on these emission

ID number

Data type Data variable Data unit Measured (m),

calculated (c) or

estimated (e)

Recording

frequency

Proportion of

data to be

monitored

How w

data

archiv

(electr

pape

D.4.1 Fuel Biomass

trucks

Nos. Measured Daily 100% paper

D.4.2 Gas Emission by

trucks

Kg Calculated Daily 100% paper


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BCML - II


D.5. Relevant data necessary for determining the baseline of anthropogenic emissions by sources of GHG w

identification if and how such data will be collected and archived.

ID

number

Data type Data

variable

Data unit Will data be

collected on this

item? (If no,

explain).

How is data

archived?

(electronic/paper)

For how long

data archived

be kept?

D.5.1 Power Sector wise

installed

capacities

MW Yes, from SEB* Paper Till completion

crediting period

D.5.2 Power Sector wise

powergeneration

(all sources)

Million kWh Yes, from SEB Paper Till completion

crediting period

D.5.3 Gas CO2

emissions of

coal plants

Kg/kWh Yes, from SEB/ Paper Till completion

crediting period

D.5.4 Gas CO2

emissions of

gas plants

Kg/kWh Yes, from SEB /

OECD

Paper Till completion

crediting period

* SEB : State Electricity Boards


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BCML - II


D.6. Quality control (QC) and quality assurance (QA) procedures are being undertaken for data monitore

section D.3., D.4. and D.5 above, as applicable)

Responsibility of project promoter includes development and implementation of QC & QA procedures for data colleGHG claims of the project activity. The following measures are suggested for this purpose:

To appoint a competent CDM in charge who will be accountable for generation of ERs. His task should incldata, measurements, record keeping, monitoring, crosschecking, preparation of GHG emission worksheets,

To define the proper routine procedures for professional measurements, recording, data entry, reporting procetc.

Data Uncertainty level of

data

(High/Medium/Low)

Are QA/QC

procedures planned

for these data?

Outline explanation why QA/QC pro

not being planned.

D.3.(a)1 Low Yes This data will be used in cross checking (QA) of power export

activity.

D.3.(a)2 Low Yes This is the most important data for project promoter and powe

calculation of emission reductions by project activity.

D.3.(b)1 Low Yes This data will be used as supporting information (QA) to calcu

activity.

D.3.(b)2 Low Yes

This data will be used as supporting information (QA) to calcu

activity.


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BCML - II



data

(High/Medium/Low)

Are QA/QC

procedures planned

for these data?


not being planned.


activity.


activity.

D.3.(b)5 Low Yes This data will be used for calculation of leakage emissions.

D.3.(b)6 Low Yes This data will be used for calculation of leakage emissions.

D.3.(c)1 Low No This data is related to the performance of project activity

D.3.(c)2 Low No This data is related to the performance of project activity

D.3.(d)1 Low Yes This data will not be used for calculation of emission reductio

D.4.1 Low Yes This data will be useful to estimate leakage

D.4.2 Medium No Emissions Calculated. Also Indian Trucks and Fuel companies

other advance emission norms.

D.5.1 Low Yes This data will be collected from UPPCL

D.5.2 Low Yes This data will be collected from UPPCL


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BCML - II



data

(High/Medium/Low)

Are QA/QC

procedures planned

for these data?


not being planned.

D.5.3 Medium No This data will be collected from UPPCL

D.5.4 Medium No This data will be collected from UPPCL

D.7 Name of person/entity determining the monitoring methodology:

BCML and their associated experts (see Annex 1).


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BCML II ANNEX : Project Design Document


E. CALCULATION OF GHG EMISSION BY SOURCES

The estimation approach used for the calculation of the greenhouse gas emission by sources for the

BCML project is based on a comparative analysis of the methodology developed by and approved

by the CDM EB for the Vale do Rosario Bagasse Cogeneration Project (NM 0001), a combined

margin methodology to a new proposed modified combined margin method (MCMM) that may be

more conservative to the former if reliableEx Ante data is available regarding the future capacity

additions and fuel mix of grid. The calculations presented below are based on the methodologies

outlined in Annex 3.

E.1 Description of formulae used to estimate anthropogenic emissions by sources of

greenhouse gases of the project activity within the project boundary: (for each gas,source, formulae/algorithm, emissions in units of CO2 equivalent)

The anthropogenic emissions from within the boundary of the bagasse cogeneration project activity

(EMBC) are estimated on a yearly basis as follows:

[EQ. 1] EMBC/yr = ( PSG) * CB in t CO2-e/yr

Where:

EMBC = annual emissions from within the project boundary expressed in t CO2-

e/yr

PSG = annual amount of exported power sold to the grid by the bagasse

cogeneration plant in kWh/yr

CB = carbon emission factor of bagasse in t CO2-e/kWh

And the total project emissions that occur within the boundary over the crediting period are:

[EQ. 2] EMBC = y [(PSG)*CB] in t CO2-e for the project crediting period

Where:

y = summation over project crediting years (yr)

The sources of greenhouse gas emissions with the Project within the project boundary include

potential emissions from the production of sugarcane and combustion of the bagasse in the boiler.

In terms of cane production, two potential sources of GHGs exist: any changes in carbon dioxide

uptake from removing the cane from the fields and potential methane production from storing the

bagasse prior to burning. As the proposed cogeneration power plant uses sustainably-grown

bagasse (crops are annually re-grown and land is not permanently left fallow), the cane growing


38/99


BCML II ANNEX: Project Design Document


carbon emissions are zero due to the carbon recycling process. In regards to potential methane

production from bagasse piles, this is negligible given the extremely short storage time of the

bagasse piles. As with the Vale do Rosario Bagasse Cogeneration Project (NM 0001), both of these

potential emission sources will be considered as zero. As, the bagasse also contains only negligible

quantities of other elements like nitrogen, sulphuretc. and the combustion of the bagasse5

leads to

minimal releases of GHG emissions these are considered as negligible also. Hence the Project will

not release any additional carbon dioxide or other GHG emissions to the atmosphere within the

project boundary on an annual basis or for the crediting period.

E.2 Description of formulae used to estimate leakage, defined as: the net change of

anthropogenic emissions by sources of greenhouse gases which occurs outside the

project boundary, and that is measurable and attributable to the project activity: (foreach gas, source, formulae/algorithm, emissions in units of CO2 equivalent)

Anthropogenic emissions from any leakage activity associated with the project for any year are

determined by the following algorithm:

[EQ. 3] EML/yr = (L) * CL in t CO2-e/yr

Where:

EML = annual emissions from leakages from the project activity in t CO2-e/yr

L = amount of leakage per year in units/yr

CL = carbon emissions factor of leakage in t CO2-e/unit

And:

[EQ. 4] EML = y [(L) * CL] in t CO2-e for the project crediting period

The major leakage activity that contributes GHG emissions outside the project boundary for the

project activity is the emission of carbon dioxide from transporting bagasse from the Babhnan

Sugar Mill to the proposed cogeneration power project at Haidergarh. For transportation of 81,120

MT of bagasse on a yearly basis from Bhabnan to Haidergarh, the emissions from leakage are

calculated as 1,950 t CO2-e per year due to the use of diesel trucks. 6

Detailed calculations are

5The bagasse is expected to contain 53% moisture; this will keep the temperatures at steam generator

burners low enough not to produce nitrogen oxides. Moreover, the specification of thesteam generator willstipulate over fire air system with staged combustion, which will ensure reduction in nitrogen-oxide

emissions.6

Assumes 40 liters diesel per trip and 1,940 trips (one way) with 5 MT truck load. IPCC factor for Diesel74.10 tones CO2/TJ.


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provided in Enclosure-II. This is a conservative estimate as it does not take into account the

expected efficiency improvement is transportation vehicles in next 10 years.

Potential leakages from transmission and distribution (T&D) losses during power export from the

cogeneration project to the substation (grid) would be very low as compared to the T&D losses of

the UPPCL grid, which are about 25%. Since, the UPPCL grid is not considered in the baseline

project boundary, it is conservative to exclude project T&D losses. Further, the T&D losses of

UPPCL grid include theft, which is difficult to monitor and verify.

E.3 The sum of E.1 and E.2 representing the project activity emissions:

The anthropogenic emissions of the proposed project are the sum of the within boundary project

emissions (EMP) and leakage emissions (EML), which are represented as follows:

[EQ. 5] E.1 +E.2 = EMP + EML = 0 + EMLin t CO2-e/yr or t CO2-e over the crediting

period

The annual net project emissions for the proposed CDM activity are estimated below as 1,950 tones

of CO2-e per year, which result entirely from transporting the bagasse by diesel trucks to the HCM

cogeneration plant during the off-season (120 days per year).

E.4 Description of formulae used to estimate the anthropogenic emissions by sources ofgreenhouse gases of the baseline: (for each gas, source, formulae/algorithm, emissions

in units of CO2 equivalent)

The algorithms for the calculations of the baseline anthropogenic emissions are determined by

annually estimating and summing amount of power exported to the grid by the bagasse

cogeneration plant multiplied by the emission factor for the avoided baseline generation by energy

sources.

Determining the avoided grid power displaced by the project activity

The cogeneration plant will generate 20 MW and export to the UPPCL grid a capacity of 13.96

MW during the crushing season and 17.95 MW during the off-season period after meeting its

auxiliary power needs, thereby delivering 93.05 GWh of electric energy in the first year of project

operation, 98.86 GWh in the second year and 104.68 GWh/year in the third year and onward years

to the UPPCL grid.

No transmission and distribution losses are considered since the project is exporting power at high

voltage of 132 kV at a short distance. Therefore, a conventional energy equivalent of 1,034.35


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million kWh for a crediting period of 10 years in UP would be replaced by exporting power from

the proposed 20 MW non-conventional renewable sources bagasse based cogeneration power plant.

Total exported power from the renewable energy project activity

[EQ. 6] capgen CPGPTP =exp

Where:

TPexp - Total electricity exported to grid per annum by the project activity

(kWh/yr)

GPgen - Electricity generated per annum by project activity (kWh/yr)

CPcap - Electricity captive consumption (sugar mill + cogeneration auxiliary) per

annum (kWh/yr)

Determining the emission factor of each baseline generation source

The estimation methods of the baseline emission factors are most complicated, the procedures and

values for such are provided in detail below. A realistic emission factor estimation process for grid

connected renewable energy projects, where data is reliable and verifiable, needs to account for

changes in the grids capacity additions operating and build margins over time as well as any

impacts the project may have on the future installed grid capacity. The BCML project activity will

increase installed capacity (marginally) of state grid, which will help to reduce energy and demand

shortage. Also, it will avoid / delay the capacity addition of equivalent of project size and reducethe carbon intensity of the grid mix.

The baseline methodology recommended by the UNFCCC CDM states that an emission coefficient

(measured in kgCO2/kWh) calculated by using the following parameters:

a) The average of the approximate operating margin (OM) and the build margin

(BM), where;

i) The approximate operating margin is the weighted average emissions (in

kgCO2equ/kWh) of all generating sources surviving the system, excluding

hydro, geothermal, wind, low-cost biomass, nuclear and solar generation;

ii) The build margin is the weighted average emissions (in kgCO2equ/kWh)

of recent capacity additions to the system, defined as the higher of most

recent 20% of plants built or the 5 most recent plants;

OR

b) The weighted average emissions (in kgCO2equ/kWh) of current generation mix.


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Simplistically, the formula for the baseline emission factor of each generation source is the product

of the percentage of power generated without the low cost must-run projects (Pwlc) times the

generation sources emission factors, determined annually over the credit period then summed. The

specific formulae used for estimation of the anthropogenic emissions by the generation of thebaseline are given below in a step-wise order.

a) Estimation of the baseline without low run cost power generation percentages by fuel type

The power generated without the low run cost projects (Pwlc) which is the amount of total power

generated by the grid annually (P tot) minus the amount of power generated by the low run cost

projects (Plrc) In the proposed projects state generation mix, for example, coal and natural gas

based power projects are responsible for most of the GHG emissions while renewable energy

projects account for many of the must run projects in the future.

Baseline power generation

[EQ. 7] lrctotwlc PPP =

Where:

Ptot - Power generation by all sources of grid mix (kWh/yr)

Plrc - Power generation by low running cost projects (kWh/yr)

Pwlc - Power generation by all sources, without low running cost plan

BCML_II_CDM_PDD_April_07_2004.pdf

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