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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
CDM Executive Boardpage 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
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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
CDM Executive Boardpage 2
SECTION A. General description of project activity
A.1 Title of the project activity:
40 MW Bagasse Co-generation Power Project of M/s Shree Ambika Sugars Limited (SASL) at Tamilnadu,
India
Version : 01
Date : 11th May 2007
A.2. Description of the project activity:
SASL, a public company, is a sister concern of Thiru Arooran (TA) Sugars. SASL, established in 1998,
has 2 sugar plants (namely Pennadam and Kottur) under its fold. SASL in December 2002 implemented a
cogeneration Project activity at its Pennadam unit and obtained ISO 14001:2004 certification for its
power plant at Pennadam in 2005. The cogeneration plant has been designed to utilize the bagasse from
the sugar plant and generate electricity. The surplus electricity is exported to the grid and replaces
equivalent electricity from emission intensive sources. The cogeneration plant is rated for a nominal
output of 40 MW and would operate for around 270 days a year exporting approximately 184.68 MillionUnits per annum to Tamil Nadu Electricity Board of the Southern Grid.
Past Scenario
Electricity was being produced by a bagasse fired low/medium pressure, less efficient cogeneration
power plant to meet the in house power and heat requirement.
Present scenario
The old plant has been decommissioned and the boilers of that plant have been dismantled and sold as
scrap to various private parties. A new bagasse cogeneration plant has been commissioned in December,
2002 and synchronized with grid in March, 2003.This plant uses the bagasse generated from the sugarplant during season (December to October) to produce electricity. Some amount of the electricity is used
for captive consumption (about 10 MW) and the surplus is exported to the grid. By investing to increase
steam efficiency and increase the efficiency of burning bagasse (more efficient high pressure boilers and
turbo generators), SASL generates surplus electrical energy and export the surplus electrical energy to
the TNEB Grid. The steam consumption during baseline and project scenario is same and it is of the
order of 465.7 kg steam per ton cane. However, the boiler and turbine efficiency has improved in the
present scenario. With the implementation of this project, SASL will be able to sell electricity (about 30
MW) to the Southern grid of India, avoiding the dispatch of corresponding amount of energy produced
by fossil-fueled thermal plants to that grid. By that, the initiative avoids CO 2 emissions, also contributing
to the regional and national sustainable development.
Project Activitys contribution to Sustainable Development:
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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
CDM Executive Boardpage 3
The sustainable development indicators stipulated by the Government of India (Host Country) in the
interim approval guidelines for CDM projects are as follows1:
Social well being
Economic well being
Environmental well being
The SASL Project activity assists in achieving the above components of sustainable development as
described below:
Environmental Sustainability:
Substituting electricity generated using conventional fuel and fed to the State Grid with biomass
based power.
Mitigating the emission of GHG (CO2) as biomass is a carbon neutral fuel Conserving coal and other non-renewable natural resource
Socio-economic Sustainability:
The project is in line with the policies of MNRE, India. It contributes its share towards achievement
of the 11th Plan target of 10,000 MW renewable energy by 2012 set by MNRE.
Compared to certain fossil fuel fired plants, the proposed project will not lead to an outflow of
foreign exchange capital, since most capital equipment is locally produced and the biomass waste
does not have to be imported. This is in accordance with Indias policy of self-reliance.
The plant is situated far from an urban centre, creating rural employment. Creation of employment
opportunities in rural areas has long been recognized as a major element of sustainable development
and to stem the large-scale migration from rural to urban areas. To this extent, the project directly
addresses a core national concern.
Bagasse cogeneration is a sustainable source of energy that brings not only advantages for mitigating
global warming, but also creates a sustainable competitive advantage for sugarcane cultivation.
Bagasse cogeneration is important for the energy strategy of the country. Cogeneration is an
alternative that allows postponing the installation and/or dispatch of electricity produced by fossil-
fuelled generation utilities. The sale of the Certified Emission Reductions (CERs) generated by the
project will boost the viability of bagasse cogeneration projects, helping to increase the production of
renewable energy and decrease dependency on fossil fuels.
Key data for the project:
1http://cdmindia.nic.in/host_approval_criteria.htm
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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
CDM Executive Boardpage 4
Power generation capacity 40 MW
Estimated Power generation per annum 246.24 Million units
Annual minimum in house demand 61.56 Million units
Annual minimum export to the grid system 184.68 Million units
Turbine Details TypeSteam
Pressure
Steam
Temperature
Gross Power
Generation
Existing
2 No. X 20.00 MW
Multi stage, Extraction
cum condensing turbine
84 ata 5100C
40 MW
Boiler Details Type Pressure Temperature Steam (TPH)
2 No. Bi-drum, Multi fuel fired,
Travel grate, Water tube
87 ata 5150C 100
A.3. Project participants:
>>
Name of Party involved
(host indicates a host Party)
Private and/or public
entity(ies) project
participants (as applicable)
Kindly indicate if the Party involved
wishes to be considered as project
participant
India (Host Country) M/s Shree Ambika Sugars
Limited (SASL)(Project Proponent)
No.
A.4. Technical description of the project activity:
A.4.1. Location of the project activity:
>>
The co-generation project of Shree Ambika Sugars Limited is located in Eraiyur Village, Pennadam,
Cuddalore district in Tamilnadu. The district is paddy and sugarcane bowl of the state. The plant is well
connected to various parts of the state by road/rail links. The plant is 250 km from Chennai, capital of
Tamil Nadu.
A.4.1.1. Host Party(ies):
>> India
A.4.1.2. Region/State/Province etc.:
>>
State: Tamilnadu, Country: India
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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
CDM Executive Boardpage 5
A.4.1.3. City/Town/Community etc:
>>
Village: Eraiyur, Pennadam, District: Cuddalore, State: Tamilnadu, Country: India
A.4.1.4. Detail of physical location, including information allowing the
unique identification of this project activity (maximum one page):
>>
The project is located in Eraiyur Village, Pennadam, Cuddalore district in Tamilnadu. The district is
paddy and sugarcane bowl of the state. The plant is well connected to various parts of the state by
road/rail links. The plant is 250 km from Chennai, capital of Tamil Nadu. Pennadam is located at 11.4 N
79.23 E. It has an average elevation of 54 metres (177 feet). As per 2001 India census, Pennadam had a
population of 17,142. Males constitute 51% of the population and females 49%. Pennadam has an
average literacy rate of 65%, higher than the national average of 59.5%: male literacy is 73%, and female
literacy is 56%. In Pennadam, 11% of the population is under 6 years of age.
A.4.2. Category(ies) of project activity:
>>
The project activity is an electricity generation project where aggregate electricity generation of the
project exceeds 15 MW. The project activity is a large scale potential CDM project related to grid-
Site at Village: Eraiyur, Pennadam,District: Cuddalore, State: Tamilnadu
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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
CDM Executive Boardpage 6
connected electricity generation from biomass residues2
in industrial facilities and thus fits the
consolidated baseline methodology ACM0006 - Consolidated methodology for generation from
biomass residues. Hence, the project activity may principally be categorized in Category 1- Energy
Industries (Renewable/Non-Renewable sources) as per the scope of the project activities enlisted in the
list of Sectoral scopes and approved baseline and monitoring methodologies on the UNFCCC website
for accreditation of Designated Operational Entities3
.
A.4.3. Technology to be employed by the project activity:
>>
The technology used involves the modified Rankine cycle method for the electricity generation. The
major equipment constituting the project activity are the high pressure boiler & steam driven turbo
generator (TG) set.
Bagasse from the sugar mill is fired in the multi-fuel boiler to generate steam (Coal will be used if and
when required in the absence of biomass). The boiler is rated to generate 100 TPH steam at an outlet
steam condition of 87 ata and 515
0
C. Two TG Sets of extraction cum condensing type with ratednominal electricity output of 20 MW each are installed. The steam generated in the high pressure boilers
is inlet to the TG sets at a pressure of 84 ata & 5100
C (Enthalpy of 816 Kcal/Kg) to generate electricity.
From TG sets, the major quantity of steam is extracted at 9 ata / 2700
C (15.5 TPH per Turbine at
Enthalpy of 713.5 Kcal/Kg) and at 3 ata / 1350
C (60.91TPH per Turbine at Enthalpy of 651.8 Kcal/Kg)
used in sugar manufacturing process and the rest is condensed. The steam consumption during baseline
and project scenario is the same - 465.7 kg steam per ton cane. The process steam supplied to sugar mill
is returned back as condensate to the power plant after utilizing the heat. The boiler & turbo generators
are fully automated to improve the operational efficiency.
The project activity consists of the following main units:
2 numbers of boilers
2 number of steam turbines
2 number of Electrical generator
Appropriate power evacuation system and the related instrumentation and controls
The technical specifications of the key units are as follows:
Present Boilers (2 numbers)
Make: ISGEC John Thompson
Type: Multi-fuel, travel grate, bi-drum, water tube boiler
Steam output: 100 tones per hour. 87 ata and 5150C
Present Steam turbine (2 numbers)
2 http://cdm.unfccc.int/methodologies/DB/AEXF9VXI2FOS2AXNKG3371B8QROLJF/view.html
3http://cdm.unfccc.int/DOE/scopes.html
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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
CDM Executive Boardpage 7
Make: BHEL
Type: Extraction cum condensing
Steam Pressure: 84 ata
Steam Temperature: 5100C
Rated Speed: 5650 rpm
Present Electrical generator (2 numbers)Make: BHEL
Type: Four pole induction generators
Speed: 1500 rpm
Frequency: 50 Hz
Power Factor: 0.8
Voltage (terminal): 11KV
The technology for the boilers and turbines is well established and available in India and the project
activity does not involve any transfer of technology.
Power Generation details:
Particulars Unit
Oct 2006-
Sept 2007
Operation Days No 270
Cane crushed MT 1600000
Boiler
Low pressure steamto rocess
CoolingWater
Biomass
AirExhaust
Condenser
CondensatePum
Pump
GeneratorTurbine
Waterpreheater
Blower
Medium pressure steam to process
Make-up water
Airpreheater
Steam
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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
CDM Executive Boardpage 8
Cane crushed/day MT 5926
Bagasse % cane % 30
Steam % cane % 42
Steam Generation per day
MT/hr 4429Power Generation @ 100% MW 40
Plant Load Factor % 95
Power Generation @ PLF MW 38
Power Generation Units/day 912000
A.4.4 Estimated amount of emission reductions over the chosen crediting period:
>>
Year GHG abatement (t CO2eq)
2007-08 164237.76
2008-09 164237.762009-10 164237.76
2010-11 164237.76
2011-12 164237.76
2012-13 164237.76
2013-14 164237.76
2014-15 164237.76
2015-16 164237.76
2016-17 164237.76
Total Estimated reduction (tones of
CO2 e)
1642377.60
Total numbers of crediting years 10 Years
Annual average over the creditingperiod of estimated reduction
(Tonnes of CO2 e)
164237.76
A.4.5. public funding of the project activity:
>>
There is no public funding from any Annex I party for this project activity.
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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
CDM Executive Boardpage 9
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: Consolidated methodology for generation from biomass residues
Reference: This is an UNFCCC consolidated baseline methodology ACM0006, version 05, Sectoral
scope 01, EB31, based on the following approved methodologies:
This consolidated methodology is based on elements from the following methodologies:
AM0004: Grid-connected Biomass Power-Generation that avoids uncontrolled burning of biomass
which is based on the A.T. Biopower Rice Husk Power Project in Thailand whose Baseline study,
Monitoring and Verification Plan and Project Design Document were prepared by Mitsubishi Securities;
AM0015: Bagasse-based cogeneration connected to an electricity grid which is based on the Vale do
Rosrio Bagasse Cogeneration project in Brazil, whose baseline study, monitoring and verification plan
and project design document were prepared by Econergy International Corporation;
NM0050: Ratchasima SPP Expansion Project in Thailand whose baseline study, monitoring and
verification plan and project design document were prepared by Agrinergy Limited;
NM0081: Trupn biomass cogeneration project in Chile whose baseline study, monitoring and
verification plan and project design document were prepared by Celulosa Arauco y Constitutcin S.A;
NM0098: Nobrecel Fossil-to-Biomass Fuel Switch Project in Brazil, whose baseline study,
monitoring and verification plan and project design document were prepared by Nobrecel S.A.Celulose e
Papel and Ecosecurities Ltd.
This methodology also refers to the latest approved version of ACM0002 (Consolidated baseline
methodology for grid-connected electricity generation from renewable sources), the latest approved version of
the Tool for the demonstration and assessment of additionality and the latest approved version of the Tool
to determine methane emissions avoided from dumping waste at a solid waste disposal site.
B.2 Justification of the choice of the methodology and why it is applicable to the project
activity:
>>
Among the methodologies approved by UNFCCC for biomass based CDM project activities, ACM0006
has been chosen as most suitable to this project activity. The project activity meets the applicability
conditions of ACM0006, as demonstrated below.
The project activity is bagasse based renewable energy power project, which feeds surplus electricity(power) to the TNEB grid (comprising power generated through sources such as coal and gas based
thermal power, hydro power and renewable energy sources including small / micro hydro projects,
bagasse / biomass based cogeneration / power projects etc). The selected methodology available on the
UNFCCC web site is applicable to generation from biomass residues and is the most suitable approved
UNFCCC methodology available for the project activity.
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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
CDM Executive Boardpage 10
Further, the project activity meets the applicability criteria of ACM0006 as under:
No other biomass types than biomass residues4 are used in the project plant and these biomassresidues are the predominant fuel used in the project plant (some fossil fuels may be co-fired);
For projects that use biomass residues from a production process (e.g. production of sugar orwood panel boards), the implementation of the project shall not result in an increase of the
processing capacity of raw input (e.g. sugar, rice, logs, etc.) or in other substantial changes (e.g.
product change) in this process;
The biomass residues used by the project facility should not be stored for more than one year;
No significant energy quantities, except from transportation or mechanical treatment of thebiomass residues, are required to prepare the biomass residues for fuel combustion, i.e. projects
that process the biomass residues prior to combustion (e.g. esterification of waste oils) or that
treat waste that results from the preparation of the biomass residues (e.g. from drying the
biomass mechanically) under anaerobic conditions are not eligible under this methodology
The various sections of the project design document have been prepared by applying the methodology
ACM0006. The Baseline, Additionality, Monitoring, Calculation of Emission Reductions etc of the PDD
have been prepared as per the guidelines of ACM0006 and is detailed below:
B.3. Description of the sources and gases included in the project boundary
>>
For the purpose of determining GHG emissions of the project activity, the following emission sources
are included in emission reduction analysis:
CO2 emissions from on-site fossil fuel and electricity consumption that is attributable to the
project activity. This includes fossil fuels co-fired in the project plant, fossil fuels used for on-
site transportation or fossil fuels or electricity used for the preparation of the biomass residues,
e.g., the operation of shredders or other equipment, as well as any other sources that are
attributable to the project activity; and
CO2 emissions from off-site transportation of biomass residues that are combusted in the project
plant.
For the purpose of determining the baseline, the following emission sources are included:
4Biomass residues are defined as biomass that is a by-product, residue or waste stream from agriculture,
forestry and related industries. This shall not include municipal waste or other wastes that contain
fossilized and/or non-biodegradable material (small fractions of inert inorganic material like soil or sands
may be included). Note that in case of solid biomass residue for all the calculations in this methodology,
quantity of biomass residue refers to the dry weight of biomass residue. (from ACM0006)
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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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CO2 emissions from fossil fuel fired power plants connected to the electricity system; and
CO2 emissions from fossil fuel based heat generation that is displaced through the projectactivity
Overview on emissions sources included in or excluded from the project boundarySource Gas Justification /
Explanation
CO2 Included Main emission sourceCH4 Excluded Excluded for simplification. This is conservative.
Grid electricitygeneration
N2O Excluded Excluded for simplification. This is conservative.CO2 Included Main emission sourceCH4 Excluded Excluded for simplification. This is conservative.Heat generationN2O Excluded Excluded for simplification. This is conservative.
CO2 Excluded
It is assumed that CO2 emissions from surplusbiomass residues do not lead to changes of carbonpools in the Land Use Land use Change andForestry (LULUCF).
CH4 Excluded Excluded for simplification. This is conservative.
Baseline
Uncontrolledburning or decay
of surplusbiomass residues
N2O Excluded
Excluded for simplification. This is conservative.Note also that emissions from natural decay ofbiomass are not included in GHG inventories asanthropogenic sources.
CO2 Included May be an important emission source
CH4 ExcludedExcluded for simplification. This emission sourceis assumed to be very small.
On-site fossilfuel and
electricityconsumption
due to theproject activity(stationary or
mobile)
N2O ExcludedExcluded for simplification. This emission sourceis assumed to be very small.
CO2
Included May be an important emission sourceCH4 Excluded
Excluded for simplification. This emission sourceis assumed to be very small.
Off-sitetransportation ofbiomass residues
N2O ExcludedExcluded for simplification. This emission sourceis assumed to be very small.
CO2 ExcludedIt is assumed that CO2emissions from surplusbiomass do not lead to changes of carbon pools inthe LULUCF sector.
CH4 Excluded Excluded for simplification.
Combustion ofbiomass residues
for electricityand / or heatgeneration N2O Excluded
Excluded for simplification. This emission sourceis assumed to be small.
CO2 ExcludedIt is assumed that CO2 emissions from surplusbiomass residues do not lead to changes of carbonpools in the LULUCF sector
CH4 ExcludedExcluded for simplification. Since biomass residuesare stored for not longer than one year, thisemission source is assumed to be small.
ProjectActivity
Storage ofbiomass residues
N2O ExcludedExcluded for simplification. This emissions sourceis assumed to be very small.
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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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B.4. Description of how the baseline scenario is identified and description of the identified
baseline scenario:
Determination of the suitable combination of Baseline and Project scenario:
The methodology ACM0006 is applicable to project activities falling under one of the 19 combinations
of project activities and baseline scenarios described in it. The scenario for energy efficiency
improvement is identified as most suitable to the project activity after examining the various baseline
and project scenarios. The guidelines specific to this scenario has been applied in this project design
document.
The most plausible baseline scenarios for the project activity have been separately determined regarding
the following Realistic and credible alternatives:
How power would be generated in the absence of the CDM project activity;
What would happen to the biomass residues in the absence of the project activity; and
In case of cogeneration projects: how the heat would be generated in the absence of the project
activity.
The steps 2 and 3 of the latest approved version (version 03) of the tool for the determination and
assessment of additionality have been applied to identify the baseline among all realistic and credible
alternatives.
As defined in the consolidated methodology ACM0006, the realistic & credible alternatives were
separately determined by considering the following criteria which also were aligned with the scenario 14:
(i) How power would be generated in the absence of the CDM project activity?
Option P4: The generation of power in the grid
Option P2: The continuation of power generation in an existing biomass residue fired power plant at the
project site, in the same configuration, without retrofitting and fired with the same type of biomass
residues as (co-)fired in the project activity
(ii) What would happen to the biomass in the absence of the project activity?
Option B1: The biomass residues are dumped or left to decay under mainly aerobic conditions. Thisapplies, for example, to dumping and decay of biomass residues on fields.
Option B4: The biomass residues are used for heat and/or electricity generation at the project site.
(iii) In case of cogeneration projects: how the heat would be generated in the absence of the project
activity?
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CDM Executive Boardpage 13
Option H5: The continuation of heat generation in an existing biomass residue fired cogeneration plant
at the project site, in the same configuration, without retrofitting and fired with the same type of biomass
residues as in the project activity
Since 2 types of biomass residues i.e bagasse and cane trash are used, baseline is established for both as
under
Combinations of project types and baseline scenarios applicable to this methodology
Baseline scenario
Biomass
Scenario Project
typePower
Bag
asse
Cane
Trash
Heat
(if
relevant)
Description of the situation
14Energy
efficiency
projects
P4
and P2B4 B4 H5
The project activity involves the improvement
of energy efficiency of an existing biomass
residue fired power plant by retrofit or
replacement of the existing biomass residue
fired power plant at a site where no other
power plants are operated. The retrofit or
replacement increases the power generation
capacity, while the thermal firing capacity is
maintained. In the absence of the project
activity, the existing power plant would
continue to operate without significant
changes. The same type and quantity of
biomass residues as in the project plant wouldin the absence of the project activity be used in
the existing plant. Consequently, the power
generated by the project plant would in the
absence of the project activity be generated (a)
in the same plant (without project
implementation) and since power generation
is larger due to the energy efficiency
improvements (b) partly in power plants in
the grid. In case of cogeneration plants, the
heat generated by the project plant would in
the absence of the project activity be generated
in the same plant. The efficiency of heat
generation is smaller or the same after the
implementation of the project activity.
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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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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) : >>
The project activity is a project comprising grid connected electricity generation from biomass. It is a
renewable energy based power generation project with net zero CO 2 emissions (due to the carbon
sequestration by the sugar cane plants) and exports power to the southern regional grid. The power
generated from the project activity has displaced electricity that would otherwise have been generated by
the existing and new grid connected power plants, which have an average CO 2 emission factor of 0.86 t
CO2/MWh. The emission factor has been calculated as per the guidance of ACM0002.
As per the decision 17/cp.7 para43, a CDM project activity is additional if anthropogenic emissions of
greenhouse gases by sources are reduced below those that would have occurred in the absence of the
registered CDM project activity. As per the selected methodology ACM0006, the project proponent is
required to establish that the project activity is additional and therefore not the baseline scenario, for
which the Tool for the demonstration and assessment of additionality Version 3, EB 29 (see fig B1)
has been used. Additionality of project activity is discussed further in sections B.5.1 to B5.4.
As described in the methodology, the most plausible scenario will be identified among all the realistic &
credible alternatives by using the tool to determine and assess additionality (in conjunction with Fig. B1)
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(Fig B1: Flowchart summary of the Tool for demonstration of additionality of the project)
B.5.1:
Step 1 Identifications of alternatives to the project activity consistent with the current laws and
regulations
The sub steps include:
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A. Sub-step 1a. Define alternatives to the project activity
B. Sub-step 1b. Enforcement of applicable laws and regulations:
In sub Step 1a & 1b, SASL is required to identify realistic & credible alternatives that were available to
SASL or similar project developers that provide output or services comparable with the project activity.
These alternatives are required to be in compliance with all applicable legal & regulatory requirements.
SASL identified the different potential alternatives to project activity available to all other sugar
manufacturing units in India.
As defined in the consolidated methodology ACM0006, the realistic & credible alternatives were
separately determined by considering the following criteria which also were aligned with the scenario 14:
Power generation: How power would have been generated in the absence of the project activity?
Alternatives available for power generation:
1. Option P1: The proposed activity not undertaken as a CDM project activity.
SASL had the option of continuing to operate its low pressure cogeneration system as against the 87 ata
boiler being used now. Besides this, 87 ata would incur a high capital outlay. At the time of
implementation of the project activity, only one other such cogeneration plant of equivalent temperature
and pressure configuration was available in the country. In the absence of sufficient expertise and
successful high pressure projects, it is very likely that SASL would not have opted for implementation of
the high pressure system without the CDM incentive. There are no legal and regulatory requirements for
the implementation of high pressure system.
2. Option P2: The continuation of power generation in an existing biomass residue fired power plant at
the project site, in the same configuration, without retrofitting and fired with the same type of
biomass residues as (co-)fired in the project activity
In this scenario, the project proponent would use a lower energy efficient cogeneration plant compared to
the project activity, which would result in consumption of more bagasse in order to generate equivalent
steam and power for in-house utilization or captive consumption only. Though this alternative does not
entail surplus power generation and export to an electricity grid, it is in compliance with all applicable
legal and regulatory requirements and could be the baseline.
In India, all the sugar mills have their own cogeneration units to cater to the in house steam and power
requirements. This scenario is considered as Business As Usual case for the Indian sugar industry,
where in, bagasse is used in boilers to meet the internal heat energy requirements of sugar mills. Prior to
the 40 MW cogeneration plant, there were 4 boilers of 1 * 35 (14 ata, 265 deg C), 2 * 40 (14 ata, 265 deg
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C) and 1 * 70 (32 ata, 380 deg C) capacity. It is easier for sugar mills to opt for low efficiency
cogeneration plants considering that they are less capital intensive.
3. Option P4: The generation of power in the grid
The existing generation mix of the Southern Regional grid is comprised mainly of fossil fuel fired power
plants5. Therefore in the Business as Usual scenario, the gird is likely to remain as a GHG emission
intensive power source. It is in compliance with all applicable legal and regulatory requirements and
could be the baseline.
Heat (steam) generation: How heat would be generated in the absence of the project activity?
Alternatives available for heat generation:
1. Option H1: The proposed project activity not undertaken as a CDM project activity.
SASL had the option of continuing to operate its low pressure cogeneration system as against the 87 ata
boiler being used now. Besides this, 87ata would incur a high capital outlay. At the time of
implementation of the project activity, only one other such cogeneration plant of equivalent temperature
and pressure configuration was available in the country. In the absence of sufficient expertise and
successful high pressure projects, it is very likely that SASL would not have opted for implementation of
the high pressure system without the CDM incentive. There are no legal and regulatory requirements for
the implementation of high pressure system.
2. Option H5: The continuation of heat generation in an existing biomass residue fired cogeneration
plant at the project site, in the same configuration, without retrofitting and fired with the same type of
biomass residues as in the project activity
Prior to implementation of the project activity, the process heat requirement of the sugar factory was
being met by the old low pressure cogeneration system. In absence of the project activity, the low
pressure cogeneration system would have continued to operate. There is no policy or regulation
enforcing the replacement of the low pressure boiler by the high pressure boiler. SASL could have
continued the heat generation in the low pressure system.
Biomass: What would happen to the biomass in the absence of the project activity?
Alternatives available for biomass:
I. For bagasseII. For cane trash
5 http://www.cea.nic.in/about_us/Annual%20Report/annex11b.pdf
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For bagasse
1. Option B1: The biomass residues are dumped or left to decay under mainly aerobic conditions. This
applies, for example, to dumping and decay of biomass residues on fields.
Prior to the implementation of the project activity, the bagasse generated in-house was used in the low
pressure cogeneration system and surplus was being sold in the local market as cattle feed. Since the low
pressure systems are less efficient, the remaining bagasse would have been utilized for meeting the
captive energy requirements. This would have been continued till the low pressure system was replaced
at the end of its lifetime. Therefore BI is not the likely alternative in the absence of the project activity.
2. Option B4: The biomass residues are used for heat and/or electricity generation at the project site.
In the absence of the project activity, bagasse would have been used to generate heat and power at the
project site by the old low efficient boiler and turbine configuration. In this scenario, the project
proponent would use a lower energy efficient cogeneration plant compared to the project activity, which
would result in consumption of more bagasse in order to generate equivalent steam and power for in-
house utilization or captive consumption only. Though this alternative does not entail surplus power
generation and export to an electricity grid, it is in compliance with all applicable legal and regulatory
requirements and could be the baseline.
In India, all the sugar mills have their own cogeneration units to cater to the in house steam and power
requirements. This scenario is considered as Business As Usual case for the Indian sugar industry,
where in, bagasse is used in boilers to meet the internal heat energy requirements of sugar mills. Prior to
the 40 MW cogeneration plant, there were 4 boilers of 1 * 35 (14 ata, 265 deg C), 2 * 40 (14 ata, 265 deg
C) and 1 * 70 (32 ata, 380 deg C) capacity. It is easier for sugar mills to opt for low efficiency
cogeneration plants considering that they are less capital intensive.
For cane trash
1. Option B1: The biomass residues are dumped or left to decay under mainly aerobic conditions.
This applies, for example, to dumping and decay of biomass residues on fields.
Prior to the implementation of the project activity, the cane trash generated during harvesting of
sugarcane was used in the low pressure cogeneration system and surplus was being sold in the local
market as cattle feed. Since the low pressure systems are less efficient, the remaining cane trash would
have been utilized for contributing towards meeting the captive energy requirements. This would have
been continued till the low pressure system was replaced at the end of its lifetime. Therefore BI is not the
likely alternative in the absence of the project activity.
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2. Option B4: The biomass residues are used for heat and/or electricity generation at the project site.
In the absence of the project activity, cane trash would have been used to generate heat and power at the
project site by the old low efficient boiler and turbine configuration. In this scenario, the project
proponent would use a lower energy efficient cogeneration plant compared to the project activity, which
would result in consumption of more cane trash in order to generate equivalent steam and power for in-
house utilization or captive consumption only. Though this alternative does not entail surplus power
generation and export to an electricity grid, it is in compliance with all applicable legal and regulatory
requirements and could be the baseline.
In India, all the sugar mills have their own cogeneration units to cater to the in house steam and power
requirements. This scenario is considered as Business As Usual case for the Indian sugar industry,
where in, cane trash is used in boilers as a supplement to meet the internal heat energy requirements of
sugar mills. Prior to the 40 MW cogeneration plant, there were 4 boilers of 1 * 35 (14 ata, 265 deg C), 2* 40 (14 ata, 265 deg C) and 1 * 70 (32 ata, 380 deg C) capacity. It is easier for sugar mills to opt for low
efficiency cogeneration plants considering that they are less capital intensive.
Summary on alternatives
The analysis of the credible alternatives to the project activity identifies the following as the most likely
baseline scenarios:
A combination of the following:
For Power generation: Options P4 & P2 The generation of power in the grid; and The
continuation of power generation in an existing biomass residue fired power plant at the projectsite, in the same configuration, without retrofitting and fired with the same type of biomass
residues as (co-)fired in the project activity
For heat generation: Option H5: The continuation of heat generation in an existing biomass
residue fired cogeneration plant at the project site, in the same configuration, without retrofitting
and fired with the same type of biomass residues as in the project activity
For biomass: B4: The biomass residues are used for heat and/or electricity generation at the
project site
The next step for additionality justification as per Fig. B1 is either -
1- Step 2 Investment Analysis2- Step 3 Barrier Analysis
SASL proceeds to establish project additionality by conducting Barrier Analysis as under.
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B.5.2 Step 3: Barrier Analysis:
SASL is required to determine whether the project activity faces barriers that:
(a) Prevent the implementation of this type of proposed project activity; and(b) Do not prevent the implementation of at least one of the alternatives.
The above study has been done by means of the following sub steps:
Sub-step 3a: Identify barriers that would prevent the implementation of type of the proposed project
activity:
As per the report by the Ministry of Non-Conventional Energy Sources (MNES), Government of India,
the potential for bagasse based cogeneration in the major sugar producing states in India is estimated as
3500 MW6, however the potential is utilized by commissioning cogeneration projects and exporting
electrical energy to grid, around 348.23 MW i.e. 9.95% of total cogeneration potential (46 Nos. of
Projects)
7
. The potential for bagasse based cogeneration in Tamil Nadu (TN) State is estimated as 350MW
8, however the potential is utilized by commissioning cogeneration projects and exporting electricity
power to grid, around 146 MW i.e. 44.72 % of total cogeneration potential (15 Nos. of Projects)9.
There are several barriers due to which the above potential is not being harnessed (only 9.95 % all over
India). The project activity had its associated barriers to successful implementation, which have been
overcome by SASL to bring about additional green house gas reduction. Further, the project is additional
as it overcomes the barriers discussed further in this section:
(I) Barriers due to prevailing practice - The project activity was the first of its kind
The Indian sugar manufactures have been utilizing their bagasse to produce heat & electrical energy in aninefficient manner by using low/medium pressure boiler (with low electrical & thermal energy
efficiency) to generate steam; expand it in extraction cum condensing turbine generator and the total
generated electricity is for in house consumption. However, the project activity has adopted a high
pressure co-generation technology (87 ata and 5150
C), which is the one of first of its kind in the Tamil
Nadu State & in India also (During its implementation)10
.
(II) Technological Barriers
6http://mnes.nic.in/business%20oppertunity/pgtbp.htm
7http://mnes.nic.in/business%20oppertunity/pgtbp.htm
8http://mnes.nic.in/business%20oppertunity/pgtbp.htm
9Source:http://mnes.nic.in/bmp11pot.htm
10Source: Cane Cogen India Volume -6
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The typical alternative to the project is to continue meeting the captive power requirements by the
existing inefficient medium pressure cogeneration configuration. The project activity has adopted a high
pressure co-generation technology (87 ata and 5150
C) and still this technology of high pressure &
temperature (Super heated steam) configuration is less penetrated in the Indian sugar sector. The project
activity uses a technology, which has low market share and lesser penetration. Low penetrated
technology is related to efficiency of major equipments, trouble free plant operation, availability of
spares, availability of skilled manpower to operate the plant continuously etc. SASL is one of the first
few proponents in Tamil Nadu and host country India, to take up the risk in overcoming the technology
barrier by adopting the 87 ata, 5150
C boilers & double extraction cum condensing turbine. Success of
the CDM project will provide a trigger for replication in the other sugar mills thus further reducing the
GHG emission to the atmosphere.
There is also a lack of skilled labour to operate the high pressure cogeneration technology.
(III) Investment BarriersIt is costly to implement high pressure configuration cogeneration projects as compared to conventional
low pressure or medium pressure cogeneration plants and thats the reason why most of the sugar
plants in the state as well as the country use low to medium pressure configuration.
Most Sugar Companies do not have the creditworthiness to obtain private sector financing for investing
in high efficiency cogeneration technology due to cyclical nature of the sugar industry and consequent
fluctuation in fortunes. Besides, to protect sugarcane farmers interests, minimum sugar cane price based
on the quality of the sugar cane is prescribed statutorily. Due to such interplay of complex forces,
generation/sourcing of sufficient funds to finance capital intensive projects, such as the sugar
cogeneration project are a difficult proposition and prove as an important barrier.
(IV) Other Barriers
Another significant barrier is the climatic factor prevailing in the area of the project activity. Unfavorable
climate may reduce bagasse availability and affect the profitable operation of the project activity. Severe
drought conditions have prevailed in Tamil Nadu, which resulted in substantial reduction in availability
of cane. Even in respect of the cane available, the age profile could be such that sustaining the crushing
and power generation at workable capacity is restrained even during season.
For their earnings, the co-generation projects in the state depend on payment from TN Electricity Board
against the sale of electricity to the grid. It is known that the financial condition of State Electricity
Boards in India is not very healthy and it is likely that, this can impact the cash flow to SASL. SASL had
to take this risk and face this barrier on which they have limited or no control.
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There is no legal binding on SASL to take up the project activity. The above tests & analysis suggests
that the project activity is additional & the anthropogenic emissions of GHG by sources will be reduced
below those that would have occurred in the absence of the registered CDM project activity.
Sub-step 3 b. Show that the identified barriers would not prevent the implementation of at least one ofthe alternatives (except the proposed project activity):
In the absence of the project activity, the power requirement would have been met from the existing
cogeneration power plant & the heat requirement by installing a low pressure boiler. The surplus bagasse
would have been unutilized or used for non-energy purpose. No additional investment would have been
required.
The low pressure technology is an established one in sugar industry and SASL has the necessary
expertise, skilled manpower and other resources to operate the plant without any risks associated with the
87ata system.
The existing cogeneration power plant was just meeting the captive requirements of steam and power and
no sale of electricity to the state grid was involved. Accordingly, Shree Ambika Sugars Limited was
insulated from the uncertainties associated with dealing with Tamil Nadu Electricity Board.
Hence, the barriers facing the project activity do not prevent the implementation of the alternative which
is usual in the sugar industry.
B.5.3. Step 4: Common Practice Analysis
SASL identifies and discusses the existing common practice through the following sub-steps:
Sub-step 4a. Analyze other activities similar to the proposed project activity:
In 2002, when SASL decided to implement the project activity, most sugar mills in Tamil Nadu were
using their entire bagasse in low pressure cogeneration to meet their captive energy requirements and did
not export to the grid. The common practice in this sector, under the prevailing socio-economic
environment, geographic conditions and technological background was the utilization of bagasse for low
pressure boilers for in-house consumption, which would have been the case with SASLs sugar plant.
However, the prospect of CDM revenue has encouraged SASL to install one of the first 87 ata high
pressure cogeneration system in the country.
In India:
Total numbers of sugar mills in India (Year 2003) : 453 Sugar Mills with cogeneration and export of power to grid : 46 Total potential available in existing sugar mills : 3500 MW Potential harnessed and export power to grid : 348.23 MW % Potential harnessed and export power to grid : 10%
In TamilNadu:
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Total numbers of sugar mills in TamilNadu (Year 2003) : 36 Sugar Mills with cogeneration and export of power to grid : 15 Total potential available in existing sugar mills : 350 MW Potential harnessed and export power to grid : 146 MW % Potential harnessed and export power to grid : 41.72 %
Sugar Mills with similar or better configuration as of SASL atthe time of implementations (Year 2003) in Tamilnadu or host
country India
: Not Available
The above table11
shows a very low/no penetration of technology in TN as well as in India at the time of
the project implementation.
Sub-step 4b. Discuss any similar options that are occurring:
The project activity has been implemented by SASL despite the various risks (described above Step 3)
associated with the project activity. Tariff policy changes, bagasse availability etc will result in lowered
returns to the project activity affecting its financial sustainability.
Registering the project activity as CDM project would allow SASL to make the project successful and
sustainable which would lead to banks lowering interest rates for similar activities to sugar industries
located in the state. This would act as a precursor for other industries to invest in cogeneration
technology with wheeling facility leading to further reduction in GHG emission reduction.
Successful implementation and running of the project activity on a sustainable basis requires continuous
investments in maintenance and technological upgradation. It also requires manpower training and skill
development on a regular basis. The project proponent could get the necessary funding from selling the
project related CERs. Apart from these, registration of the project under CDM would enhance thevisibility and would enable the government in appreciating the GHG emission reduction efforts of the
project proponent. This could lead to smoother transactions in future between the project proponent and
the utility. Further CDM fund will provide additional coverage to the risk due to failure of project
activity or shut down of plant and loss of production in SASL.
It is ascertained that the project activity would not have occurred in the absence of the CDM simply
because no sufficient financial, policy, or other incentives exist locally to foster its development in Tamil
Nadu/India and without the proposed carbon financing for the project, SASL would not have taken the
investment risks in order to implement the project activity. Therefore the project activity is additional.
Also, the impact of CDM registration is significant with respect to continuity of the project activity on asustainable basis.
11Source:http://mnes.nic.in/bmp11pot.htm
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B.6. Emission reductions:
B.6.1. Explanation of methodological choices:
>>
The emission reductions are mainly from the incremental energy generation using the same quantity of
biomass that would been combusted in the baseline scenario (low pressure cogeneration plant). The
incremental energy is exported to the grid and displaces equivalent CO2 emission from grid connected
power plants.
Project Emissions:
With reference to ACM0006, it is required to account CO2 emissions from the combustion of fossil fuels
used by the project activity (during unavailability of bagasse / drought / any other unforeseen
circumstances) and that used for transportation of biomass from other sites to the project activity. Such
emissions are calculated by using the below equations:
Emission Reductions
The project activity mainly reduces CO2
emissions through substitution of power and heat generationwith fossil fuels by energy generation with biomass residues. The emission reduction ERyby the project
activity during a given year y is the difference between the emission reductions through substitution of
electricity generation with fossil fuels (ERelectricity,y), the emission reductions through substitution of heat
generation with fossil fuels (ERheat,y), project emissions (PEy), emissions due to leakage (Ly) and, where
this emission source is included in the project boundary and relevant, baseline emissions due to the
natural decay or burning of anthropogenic sources of biomass residues (BEbiomass,y)as follows:
ERy = ERheat,y + ERelectricity,y + BEbiomass,y - PEy - Ly
where:
ERy= Emissions reductions of the project activity during the yeary (tCO2/yr)
ERelectricity,y= Emission reductions due to displacement of electricity during the yeary (tCO2/yr)
ERheat,y= Emission reductions due to displacement of heat during the yeary (tCO2/yr)BEbiomass,y = Baseline emissions due to natural decay or burning of anthropogenic sources of biomass
residues during the yeary (tCO2e/yr)
PEy = Project emissions during the yeary (tCO2/yr)
Ly= Leakage emissions during the yeary (tCO2/yr)
Project emissions
Project emissions include CO2 emissions from transportation of biomass residues to the project site
(PETy) and CO2 emissions from on-site consumption of fossil fuels due to the project activity (PEFFy).
CO2 emissions from consumption of electricity (PEEC,y) and, where this emission source is included in
the project boundary and relevant, CH4 emissions from the combustion of biomass residues
(PEbiomass,CH4,y):
PEy = PETy + PEFFy + PEEC,y + GWPCH4. PEbiomass,CH4,y
where:
PETy = CO2 emissions during the year y due to transport of the biomass residues to the project plant
(tCO2/yr)
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PEFFy= CO2 emissions during the year y due to fossil fuels co-fired by the generation facility or other
fossil fuel consumption at the project site that is attributable to the project activity (tCO2/yr)
PEEC,y = CO2 emissions during the year y due to electricity consumption at the project site that is
attributable to the project activity (tCO2/yr)
GWPCH4= Global Warming Potential for methane valid for the relevant commitment period
PEbiomass,CH4,y= CH4 emissions from the combustion of biomass residues during the yeary (tCH4/yr)
Carbon dioxide emissions from on-site consumption of fossil fuels (PEFFy)
CO2 emissions from combustion of respective fuels are calculated as follows for Scenario 14:
PEFFy = (FFproject plant,I,y+ FFproject site,i,y).NCVi.COEFi
where:
FFproject plant,i,y = Quantity of fossil fuel type i combusted in the biomass residue fired power plant during
the yeary (mass or volume unit per year)9
FFproject site,i,y = Quantity of fossil fuel type i combusted at the project site for other purposes that are
attributable to the project activity during the yeary (mass or volume unit per year)NCVi = Net calorific value of fossil fuel type i (GJ / mass or volume unit)
EFCO2,FF,i = CO2 emission factor for fossil fuel type i (tCO2/GJ)
CO2 emissions from electricity consumption (PEEC,y)
CO2 emissions from on-site electricity consumption (PEEC,y) are calculated by multiplying the electricity
consumption by an appropriate grid emission factor, as follows:
PEEC,y = ECPJ,y . EFgrid,y
where:
PEEC,y = CO2 emissions from on-site electricity consumption attributable to the project activity (tCO2/yr)
ECPJ,y = On-site electricity consumption attributable to the project activity during the yeary (MWh)EFgrid,y = CO2 emission factor for grid electricity during the yeary (tCO2/MWh)
Methane emissions from combustion of biomass residues (PEBiomass,CH4,y)
If this source has been included in the project boundary, emissions are calculated as follows:
PEbiomass,CH4,y = EFCH4,BF. BFk,y.NCVk
where:
BFk,y= Quantity of biomass residue type kcombusted in the project plant during the year y(tons of dry
matter or liter)
NCVk= Net calorific value of the biomass residue type k(GJ/ton of dry matter or GJ/liter)
EFCH4,BF= CH4 emission factor for the combustion of biomass residues in the project plant (tCH4/GJ)
Emission reductions due to displacement of electricity
Emission reductions due to the displacement of electricity are relevant for all scenarios and are
calculated by multiplying the net quantity of increased electricity generated with biomass residues as a
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result of the project activity (EGy)with the CO2 baseline emission factor for the electricity displaced due
to the project (EFelectricity,y)as follows:
ERelectricity,y = EFelectricity,y * EGy
where:ERelectricity,y= Emission reductions due to displacement of electricity during the yeary (tCO2/yr)
EGy= Net quantity of increased electricity generation as a result of the project activity (incremental to
baseline generation) during the yeary (MWh)
EFelectricity,y= CO2 emission factor for the electricity displaced due to the project activity during the yeary
(tCO2/MWh)
Step 1: Determination of EFelectricity,yThe determination of the emission factor for displacement of electricity EFelectricity,y depends on the
type of project activity and the baseline scenario identified and should be determined as follows:
For Scenario 14-
The project activity displaces electricity from other grid-connected sources (P4) or from less efficient
plants fired with the same type of biomass residue (P2). Apart from co-firing fossil fuels in the project
plant, where relevant, electricity is not generated with fossil fuels at the project site. The emission factor
for the displacement of electricity should correspond to the grid emission factor (EFelectricty,y = EFgrid,y) and
EFgrid,yshall be determined as follows:
If the power generation capacity of the project plant is of more than 15 MW, EFgrid,y should be calculated
as a combined margin (CM), following the guidance in the section Baselines in the Consolidated
baseline methodology for grid-connected electricity generation from renewable sources (ACM0002).
Step 2: Determination of EGy
The determination of EGydepends on the type of project activity and the baseline scenario identified and
should be determined as follows for the different scenarios:
Scenario 14
Where scenario 14 applies, EGyis determined based on the average net efficiency of electricity
generation in the project plant prior to project implementation el,pre projectand the average net efficiency of
electricity generation in the project plant after project implementation el,project plant,y, as follows:
Egy = EGprojectplant,y . (1- (el,pre project /el,project plant,y))
where:
EGy= Net quantity of increased electricity generation as a result of the project activity (incremental to
baseline generation) during the yeary (MWh)
EGprojectplant,y= Net quantity of electricity generated in the project plant during the yeary (MWh)
el,pre project = Average net efficiency of electricity generation in the project plant prior to project
implementation (MWhel/MWhbiomass)
el,project plant,y= Average net energy efficiency of electricity generation in the project plant
(MWhel/MWhbiomass)
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The average net energy efficiency of electricity in the project plant (el,project plant,y) should be calculated by
dividing the electricity generation during the year y by the sum of all fuels (biomass residue types kand
fossil fuel types i), expressed in energy units, as follows:
el,project plant,y = EG projectplant,y / (NCVk . BFk,y + NCVi .FFprojectplant,I,y)
where:
el,project plant,y = Average net energy efficiency of electricity generation in the project plant
EGproject plant,y = Net quantity of electricity generated in the project plant during the yeary (MWh)
BFk,y= Quantity of biomass residue type kcombusted in the project plant during the yeary (tons of dry
matter or liter)
NCVk= Net calorific value of the biomass residue type k(GJ/ton of dry matter or GJ/liter)
NCVi= Net calorific value of fossil fuel type i (GJ / mass or volume unit)
FFproject plant,i,y = Quantity of fossil fuel type i combusted in the biomass residue fired power plant during
the yeary (mass or volume unit per year)
Emission reductions or increases due to displacement of heat
In case of cogeneration plants, project participants shall determine the emission reductions or increases
due to displacement of heat (ERheat,y)The determination of ERheat,y depends on the type of project activity
and the most likely baseline scenario and should be determined as follows
Since, thermal efficiency in the project plant is larger or similar compared with the thermal efficiency of
the plant considered in baseline scenario thus ERheat,y = 0
Leakage
For scenario 14, the diversion of biomass residues to the project activity is already considered in the
calculation of baseline reductions. In this case, leakage effects do not need to be addressed.
B.6.2. Data and parameters that are available at validation:
Data / Parameter: NCVBf,yData unit: Kcal/kg
Description: Net Calorific value of fuel (biomass) used in the pre-project scenario
Source of data used: SASL datasheets
Value applied: 1847 Kcal/kg
Justification of the
choice of data or
description of
measurement methods
and procedures
actually applied :
NCV = GCV (51.5*H% + 5.72*TM%)12
Where,
GCV and NCV in Kcal/kg
H Hydrogen
TM Total moisture in bagasse
Any comment: NCV is derived from GCV which is followed as per TNERC (Ref TNERCorder no 3 dated 15-5-2006-page 81 -Fuel cost)
Average GCV is 2300 Kcal/kg. Average Hydrogen is 3.25% and Average total
Moisture is 50%
12ASTM International data
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Data / Parameter: EF electricityData unit: t CO2/MWh
Description: Combined margin baseline emission factor of the southern regional grid
Source of data used: Central Electricity Authority (CEA)
Value applied: 0.86
Justification of thechoice of data or
description of
measurement methods
and procedures
actually applied :
As per ACM0002
Any comment: Refer Annexure 3
B.6.3 Ex-ante calculation of emission reductions:
B.6.3.1 Estimation of GHG emissions by sources:
SASLs project activity uses bagasse as the main fuel hence there is zero net GHG emissions. However,
fossil fuel may be co-fired and some emissions may be produced as a result.
The following tables show the calculation of emission reductions using the formula mentioned in section
B.6.1.
Project emissions:
Emissions due to combustion of fossil fuels in the project activity:
S.No Notation Parameter Unit Value
1 FF projectplant,y Quantity of coal
used
T/yr 7000
2 NCVi Calorific value Kcal/kg coal 4834
3 COEFi CO2 emission
factor (IPCC)
t CO2/TJ 96.1
4 PEFFy CO2 emissions
from coal
t CO2/yr 13608.9
Leakage:
For scenario 14, leakage is already considered in the baseline calculations and need not be separately
addressed.
Baseline emissions:
Determination of ERyS.No Notation Parameter Unit Value
1 EGy Net quantity of
increased
electricity
generation as a
result of the
MWh 206798.44
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project activity
(incremental to
baseline
generation) during
the yeary (MWh)
2 EF electricity,y Baseline emissionfactor of the grid
t CO2/MWh 0.86
3 ER electricity,y Emission
reductions due to
displacement of
electricity during
the yeary
(tCO2/yr)
t CO2/yr 177846.66
Emission reductions
S.No Notation Parameter Unit Value
4 ER electricity,y Emissionreductions due to
displacement of
electricity during
the yeary
(tCO2/yr)
tCO2/yr 177846.66
5 PEy Project emissions tCO2/yr 13608.9
6 Ly Leakage tCO2/yr 0
7 ERy (4-5-6) Emission
reductions
tCO2/yr 164237.76
B.6.4 Summary of the ex-ante estimation of emission reductions:
>>
S.No Operating
years
Baseline
emission
factor EFy(tCO2/MWh)
Net
quantity of
increased
electricity
generation
as a result
of the
project
activity
(increment
al to
baselinegeneration)
during the
year y, EGy
(MWh)
Emission
reductions
due to
displaceme
nt of
electricity
during the
year y (ER
electricity,y)
Project
emissions (
tonnes of
CO2) PEy
Certified
Emission
Reductions
(tonnes of
CO2)
1 2007-08 0.86 206798.44 177846.66 13608.9 164237.76
2 2008-09 0.86 206798.44 177846.66 13608.9 164237.76
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3 2009-10 0.86 206798.44 177846.66 13608.9 164237.76
4 2010-11 0.86 206798.44 177846.66 13608.9 164237.76
5 2011-12 0.86 206798.44 177846.66 13608.9 164237.76
6 2012-13 0.86 206798.44 177846.66 13608.9 164237.76
7 2013-14 0.86 206798.44 177846.66 13608.9 164237.76
8 2014-15 0.86 206798.44 177846.66 13608.9 164237.769 2015-16 0.86 206798.44 177846.66 13608.9 164237.76
10 2016-17 0.86 206798.44 177846.66 13608.9 164237.76
B.7 Application of the monitoring methodology and description of the monitoring plan:
B.7.1 Data and parameters monitored:
Data / Parameter: BFi,y
Data unit: tonsDescription: Quantity of Bagasse combusted in the project plant during the year
Source of data to be
used:
On-site measurements and data sheets of SASL
Value of data applied
for the purpose of
calculating expected
emission reductions in
section B.5
540000
Description of
measurement methods
and procedures to be
applied:
Using weight meters. The moisture content will be adjusted in order to
determine the quantity of dry bagasse. The quantity shall be crosschecked with
the quantity of electricity (and heat) generated and any fuel purchase receipts
(if available).
Monitoring frequency Continuously; annual energy balance will be prepared
QA/QC procedures to
be applied:
The measurements will be crosschecked with an annual energy balance that is
based on purchased quantities and stock changes
Any comment:
Data / Parameter: BFi,yData unit: tons
Description: Quantity of cane trash combusted in the project plant during the year
Source of data to be
used:
On-site measurements and data sheets of SASL
Value of data applied
for the purpose of
calculating expected
emission reductions in
section B.5
A negligible amount as compared to bagasse.
Description of
measurement methods
and procedures to be
Using weight meters. The moisture content will be adjusted in order to
determine the quantity of dry cane trash. The quantity shall be crosschecked
with the quantity of electricity (and heat) generated and any fuel purchase
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applied: receipts (if available).
Monitoring frequency Continuously; annual energy balance will be prepared
QA/QC procedures to
be applied:
The measurements will be crosschecked with an annual energy balance that is
based on purchased quantities and stock changes
Any comment:
Data / Parameter: Moisture content of bagasse
Data unit: % Water content
Description: Moisture content
Source of data to be
used:
On-site measurements
Value of data applied
for the purpose of
calculating expected
emission reductions in
section B.5
Average 50 % of wet bagasse weight
Description of
measurement methods
and procedures to be
applied:
As per ASTM International procedure
Monitoring frequency: Continuously, mean values calculated at least annually
QA/QC procedures to
be applied:
Self calibration of electronic weighment instrument.
Any comment: In case of dry biomass, monitoring of this parameter is not necessary.
Data / Parameter: Moisture content of cane trash
Data unit: % Water content
Description: Moisture content
Source of data to be
used:
On-site measurements
Value of data applied
for the purpose of
calculating expected
emission reductions in
section B.5
Average 50 % of wet bagasse weight
Description of
measurement methods
and procedures to be
applied:
As per ASTM International procedure
Monitoring frequency: Continuously, mean values calculated at least annually
QA/QC procedures tobe applied:
Self calibration of electronic weighment instrument.
Any comment: In case of dry biomass, monitoring of this parameter is not necessary.
Data / Parameter: FFproject plant,i,y
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Data unit: Tones
Description: Quantity of fossil fuel type i combusted in the biomass residue fired power plant
during the yeary
Source of data to be
used:
Onsite measurements and SASL data sheets
Value of data appliedfor the purpose of
calculating expected
emission reductions in
section B.5
7000
Description of
measurement methods
and procedures to be
applied:
Weight meters will be used
Monitoring frequency: Continuously
QA/QC procedures to
be applied:
Measurements will be crosschecked with an annual energy balance that is based
on purchased quantities and stock changes
Any comment: This includes only fossil fuel co-fired in the plant
Data / Parameter: NCViData unit: Kcal/kg Coal
Description: Calorific value of fossil fuel
Source of data to be
used:
IPCC default net calorific values
Value of data applied
for the purpose of
calculating expected
emission reductions in
section B.5
4834
Description of
measurement methods
and procedures to be
applied:
Measurements shall be carried out at reputed laboratories and according to
relevant international standards.
Monitoring frequency: Continuously
QA/QC procedures to
be applied:
Consistency of measurements and local / national data will be checked with
default values provided by the IPCC. If the values differ significantly from IPCC
default values, additional information will be collected or measurements will be
conducted.
Any comment:
Data / Parameter: NCVBf,yData unit: Kcal/kg
Description: Net Calorific value of fuel (biomass) used in the pre-project scenario
Source of data used: SASL datasheets
Value applied: 1847 Kcal/kg
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Justification of the
choice of data or
description of
measurement methods
and procedures
actually applied :
NCV = GCV (51.5*H% + 5.72*TM%)13
Where,
GCV and NCV in Kcal/kg
H Hydrogen
TM Total moisture in bagasseAny comment: NCV is derived from GCV which is followed as per TNERC (Ref TNERC
order no 3 dated 15-5-2006-page 81 -Fuel cost)
Average GCV is 2300 Kcal/kg. Average Hydrogen is 3.25% and Average total
Moisture is 50%
Data / Parameter: NCViData unit: Kcal/kg bagasse
Description: Net Calorific value of biomass residue
Source of data to be
used:
Measurements
Value of data applied
for the purpose ofcalculating expected
emission reductions in
section B.5
1847 Kcal/kg
Description of
measurement methods
and procedures to be
applied:
Measurements shall be carried out at reputed laboratories and according to
relevant international standards.
Monitoring frequency: Every 6 months, taking at least 3 samples for each measurement
QA/QC procedures to
be applied:
Consistency of measurements and local / national data will be checked with
default values provided by the IPCC. If the values differ significantly from IPCC
default values, additional information will be collected or measurements will be
conducted.
Any comment: NCV is derived from GCV which is followed as per TNERC (Ref TNERC
order no 3 dated 15-5-2006-page 81 -Fuel cost)
Average GCV is 2300 Kcal/kg. Average Hydrogen is 3.25% and Average total
Moisture is 50%
Data / Parameter: EG projectplant,yData unit: MWh
Description: Net quantity of electricity generated in the project plant during the year y
Source of data to be
used:
Onsite measurements and SASL data sheets
Value of data appliedfor the purpose of
calculating expected
emission reductions in
section B.5
246240
13ASTM International data
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Description of
measurement methods
and procedures to be
applied:
Measurement by SASL
Monitoring frequency Continuously
QA/QC procedures tobe applied:
The consistency of metered net electricity generation will be cross-checked withreceipts from sales (if available) and the quantity of biomass fired (e.g. check
whether the electricity generation divided by the quantity of biomass fired results
in a reasonable efficiency that is comparable to previous years)
Any comment:
B.7.2 Description of the monitoring plan:
>>
SASL will incorporate a special team for implementing the monitoring procedures as described in
sections B6.2 and B7.1. The team will comprise of relevant personnel from various departments, who
will be assigned the task of monitoring and recording specific CDM parameters relevant to their
department. The monitored values will be periodically cross-checked by the respective department headsand sent to the CDM team head for compilation and analysis. Any deviation of monitored values from
estimated values will be investigated and appropriate action would be taken. The monitored values would
be recorded and stored in paper and electronically for verification. Elaborate monitoring information is
provided in Annexure 4.
B.8 Date of completion of the application of the baseline study and monitoring methodology and
the name of the responsible person(s)/entity(ies)
>>
Date of completion of baseline study 11th May 2007
Name of responsible person
Winrock International India
788, Udyog Vihar
Phase-5
Gurgaon- 122001
India
www.winrockindia.org
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SECTION C. Duration of the project activity / crediting period
C.1 Duration of the project activity:
C.1.1. Starting date of the project activity:
>>
December, 2002
C.1.2. Expected operational lifetime of the project activity:
>>
25 years
C.2 Choice of the crediting period and related information:
C.2.1. Renewable crediting period
C.2.1.1. Starting date of the first crediting period:
>>
Not applicable
C.2.1.2. Length of the first crediting period:
>> Not applicable
C.2.2. Fixed crediting period:
C.2.2.1. Starting date:
>>
1st October 2007
C.2.2.2. Length:
>>
10 years
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SECTION D. Environmental impacts
>>
D.1. Documentation on the analysis of the environmental impacts, including transboundary
impacts:
>>
The cogeneration plant uses environmentally sustainable grown bagasse as fuel, which leads to zero net
GHG emissions. The GHG emissions of the combustion process, mainly CO2will be consumed by the
sugar plant species, representing a cyclic process. Since the bagasse contains only negligible quantities of
other elements like Nitrogen, Sulphur etc. release of other GHG are negligible. The bagasse contains
close to 50% moisture and this will keep the temperatures at the steam generator furnaces low enough
not to produce nitrogen oxides. A detailed assessment of Environmental Impact due to the project
activity has been carried out and the report is available as Enclosure - 1
D.2. If environmental impacts are considered significant by the project participants or the host
Party, please provide conclusions and all references to support documentation of an environmental
impact assessment undertaken in accordance with the procedures as required by the host Party:>>
Host Party regulation requires SASL to obtain environmental clearance in the form of No Objection
Certificate from the Tamil Nadu Pollution Control Board (TNPCB). The other condition is that the site
of the project has to be approved from the environmental angle and that the Environmental Management
Plan (EMP) is to be prepared and submitted to TNPCB. The assessment of environmental impacts due to
project activity has been carried out to understand if there are any significant environmental impacts and
a management plan has been prepared to minimize adverse environmental impact. The study indicates
that the impact of the project activity is not significant.
The following documents were obtained from TNPCB for the project activity towards environmental
clearance:
Consent under Section 21 of the Air (Prevention and Control of Pollution) Act, 1981 (CentralAct 14 of 1981) as amended
Consent under Section 25/26 of the Water (Prevention and Control of Pollution) Act, 1974(Central Act 6 of 1974) as amended
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SECTION E. Stakeholders comments
>>
E.1. Brief description how comments by local stakeholders have been invited and compiled:
>>
SASL conducted stakeholder consultation at their site office on 23rd
Feb, 2007 with local stakeholders
considering the project as a CDM project. Details of the same are provided as Enclosure 2.
The stakeholders identified for the project are:
Local village population
Tamil Nadu Electricity Board (TNEB)
Tamil Nadu Pollution Control Board (TNPCB)
Consultants
Equipment manufacturers/suppliers
Cane growers association
Stakeholder list includes various Government and Non Governmental organizations that are involved in
the project activity at various stages. SASL communicated to the relevant stakeholders to provide their
comments on the project activity for which the stakeholders have responded with their comments. SASL
has received these comments and will produce them during validation. SASL has obtained the necessary
clearance from the government for setting up the project activity.
E.2. Summary of the comments received:
>>
Local Population
The following table shows the possible impacts the project activity could have on local population and
measures undertaken by SASL:
Possible impacts Preventive measures
Increase in air/Water/Noise pollution resulting in
degradation of health and local ecology
Appropriate Flue gas treatment systems, effluent
treatment systems and noise reduction systems have
been incorporated to ensure outlet noise/emissionsare below safe levels.
Improvement in direct employment as operating
and maintenance staff for the project activity
resulting in lesser labour migration from rural areas
Positive impact
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Improvement in the local grid power quality Positive impact
Thus, the project activity doesnt have any negative impacts on the local population. The panchayat has commended
the preventive measures adopted and welcomed the implementation of the project activity in their locality.
TNEB
As a buyer of the power, the TNEB is a major stakeholder in the project activity. They hold the key to
the commercial success of the project activity. TNEB has agreed to purchase power from the project
activity under the Non-conventional sources category and signed Power Purchase Agreement (PPA) with
SASL. The two parties have also signed an agreement for parallel operation and supply / purchase of
surplus power from SASL on 18th
August 2004. The potential threat for TNEB is the disturbance from
parallel operation leading to physical and operational damage of the grid. However, SASL has installed
the required isolation and safety equipment to prevent such disturbances. TNEB will draw power and
therefore pay under the Section 43 of the Electricity (Supply) Act, 1948. TNEB has commended the
project as a renewable source of power that helps it to reduce the demand supply gap in the state.
TNPCB
The TNPCB prescribes certain standards of environmental compliance for the stack emissions, stack
height and discharge of effluent from the cogeneration plant. These are elaborated in Section 21 of the
Air (Prevention and Control of Pollution) Act 1981 and Section 25/26 of the Water (Prevention and
Control of Pollution) Act 1974 (Central Act 6 of 1974). SASL has installed required treatment systems to
comply with these norms. The TNPCB has verified these systems and issued consent for operating the
plant.
Cane growers association
The association has given positive comments for the implementation of the project.
Equipment manufacturers and suppliers
The equipment vendors and suppliers involved in the erection & commissioning of the project activity
are aware of the potential risks involved in operating the project activity. They have provided their
comments on impacts of the project activity.
E.3. Report on how due account was taken of any comments received:
>>
The comments and important observations in the Detailed Project Document (DPR), environmental
clearances and local clearances were considered while preparing the PDD. No corrective action was
taken as no negative comments were received. The PDD will be published at the validators website for
public comments, as per UNFCCC guidelines.
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Annex 1
CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY
Organization:Shree Ambika Sugars Limited
Street/P.O.Box:112 Nungambakkam High Road
Building:Eldorado, 5
thfloor
City: Chennai
State/Region: Tamil Nadu
Postfix/ZIP: 600 034
Country: India
Telephone:
FAX:E-Mail:
URL:
Represented by:Chairman & Managing Director
Title: Mr.
Salutation:
Last Name:Ram V. Tyagarajan
Middle Name:
First Name:
Department:
Mobile:Direct FAX: 0091-44-28270470 (FAX)
Direct tel:0091-44-28276001 (Direct)
Personal E-Mail: [email protected]
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