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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.

CDM – Executive Board page 1

CLEAN DEVELOPMENT MECHANISM

PROJECT DESIGN DOCUMENT FORM (CDM-PDD)

Version 03 - in effect as of: 28 July 2006

CONTENTS

A. General description of project activity

B. Application of a baseline and monitoring methodology

C. Duration of the project activity / crediting period

D. Environmental impacts

E. Stakeholders’ comments

Annexes

Annex 1: Contact information on participants in the project activity

Annex 2: Information regarding public funding

Annex 3: Baseline information

Annex 4: Monitoring plan

Annex 5: CER Calculation

Appendix

Appendix A: References

Appendix B: Abbreviations



SECTION A. General description of project activity

A.1 Title of the project activity:

VKG Steels & Energy Private Limited – 8 MW WHR Based Captive Power Project.

Version: 03

Date : 14/12/2007

A.2. Description of the project activity:

M/s V.K.G. Steel & Energy Pvt. Ltd (herein after referred as VKGSEPL) is operating a Sponge Iron

Plant with an annual capacity of 120, 000 Tons/year. Flue gas with high heat content is generated in the

Rotary kiln in the Sponge iron plant during Sponge iron conversion from iron ore. This flue gas will be

used in a Waste Heat Recovery (WHR) boiler to generate steam which will be fed in to a turbine to

generate electricity.The total power required for the sponge iron unit is 24 MW. Out of this, 8 MW is

generated by the WHR power plant, the balance power requirement will be met by a coal based Fluidised

Bed Combustion (FBC) power plant and TNEB grid. The 8 MW electricity generated by the WHR power

plant displaces electricity that would have otherwise been purchased by the VKGSEPL from the fossil

fuel dominated southern regional grid.

The proposed 8 MW WHR project will be installed in two phases.

Phase I

In the first phase 2 No. of 2 MW Waste Heat recovery Boiler (WHRB) and 1 No. of 4 MW Coal Fired

FBC Boiler are connected to 1 No. of 8MW Steam Turbo Generator (STG). and it was commissioned

on May 2007.

Phase II

In the second phase 2 No. of 2 MW Waste Heat recovery Boiler(WHRB) and another 2 No. of 2 MW

WHRB connected to existing 8MW STG. Existing 4 MW Coal l Fired FBC Boiler & new 4 MW FBC

connected to a new 8 MW STG and it will be expected to commission on Jan 2009.

After accounting for the WHR power plant auxiliary consumption, the net available power from WHR

power plant will be consumed by the Sponge iron plant. The WHR Power Plant will be operated in

parallel with the Tamilnadu Electricity Board (TNEB) grid. Power will be drawn from the grid for the



start-up purpose as well as during WHR power plant outage. To reduce the water requirement, the plant

will be using an air cooled condenser for cooling of the turbine.

The purpose of the project activity is to generate 8 MW electricity through WHR boiler to partially meet

the in-house requirements of the VKGSEPL which would have been otherwise met by the fossil fuel

dominated southern regional grid.

Project Objective:

The main objectives of this project are listed below:

• Conversion of high heat content waste flue gas in to useful electricity and reduce dependency

on grid based power.

• Reduction of Green House Gas (GHG) emissions by minimizing the usage of its sources like

fossil fuels for power generation.

• To be an energy saving pillar for the nation to overcome energy demand in future.

Sustainable Developments

The project is located in a rural area of Tamilnadu. Thus the project will contribute positively to the

‘Sustainable Development in this Region’ by further strengthening the four pillars of sustainable

development:

Social well being

� The project is located in a backward area and hence it will assist in alleviation of poverty to

certain extent by generating both direct and indirect employment in the area of operation and

maintenance of the power plant.

Economic well being:

� The proposed project activity generates electricity by utilizing waste flue gas from the sponge

iron plant. The implementation of this project activity will displace the purchase of electricity

from TNEB grid which provides economical benefits for VKGSEPL and better management of

waste heat. The project activity will also improve the operating environment of the employees

working in the company to a certain extent.

Environmental well being:

� In India, most of the power generation is based on the fossil fuel like coal, oil and gas but the

proposed project activity generates the electricity from the waste flue gas and there by reducing

the GHG emissions from the fossil fuel based power generation in the regional grid



� The project activity utilizes the enthalpy of the hot flue gas, which will protect the environment

from thermal pollution.

� Air cooled condenser installed in this project will preserve an enormous amount of water which

is scarce in this region. Further it will reduce sludge generation and water treatment.

Technological well being:

� The Captive Power Plant (CPP) is based on the WHR technology, a clean technology for power

generation from waste hot flue gas, which would otherwise be vented to the atmosphere.

� The unique feature of the project is that it also employs an air cooled condenser instead of the

water cooled condenser. Hence on an overall basis, this project directly contributes in the

reduction of GHG emissions and specific water consumption.

A.3. Project participants:

Name of party involved

((host) indicates a host party)

Private and/or

Public entity(ies) project

participants

Kindly indicate if the Party

involved wishes to be

considered as project

participant

Government of India V.K.G. Steel & Energy Pvt. Ltd No

A.4. Technical description of the project activity:

A.4.1. Location of the project activity:

A.4.1.1. Host Party(ies):

India

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

Tamilnadu State

A.4.1.3. City/Town/Community etc:

District : Kancheepuram

Taluka : Uthiramerur

Village: Melpakkam



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

identification of this project activity (maximum one page):

The proposed project activity of VKG Steel & Energy Private Limited VKGSEPL is located at

Melpakkam village, Uthiramerur Taluka of Kancheepuram District in Tamilnadu state. The project

location is connected by Chengalpattu to Vandhavasi state high way. The nearest railway station is

Chengalpattu, which is at a distance of 25 km from the site. The nearest airport and seaport is Chennai

which is about 120 kms from site.The project site is located within 12º 50’N latitude and 79° 41'E

longitude respectively.

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

The project activity falls under the following scope and category.

Sectoral Scope: 1 Energy Industries (renewable / non-renewable sources)

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

The proposed 8 MW WHR project will be installed in two phases

In the first phase 2 No. of 2 MW Waste Heat recovery Boiler (WHRB) and 1 No. of 4 MW Coal Fired

FBC Boiler are connected to 1 No. of 8MW Steam Turbo Generator. After implementation of phase 2

would consist of four numbers of 2 MW Waste Heat Recovery Boiler (WHRB) and a single 8 MW steam

turbine arrangement. The steam condenser shall be an air cooled condenser. Power generated from the

generator at 11 kV will be connected to the Sponge Iron plant after the auxiliary power consumption of

WHR power plant. The technology to be used for this project activity is based on a simple Rankine cycle

technology; this is being used for most of the power plants in India.

The VKGSEPL Sponge Iron unit consists of four numbers of rotary kiln. The generation of flue gas from

each kiln is at the flow rate of 27,000 Nm3/hr at 950

0 C. The total flue gas generated from the four kilns

is 108,000 Nm3/hr.The four numbers of rotary kiln is directly connected to the four number of WHR

Boiler, each with a steam generation capacity of 11.5 TPH. The total waste flue gas generated is ducted

to the four WHR boilers to generate steam at 66 Kg/cm2 and 490

oC.The generated steam is then fed in to

the 8 MW bleed cum condensing Turbo Generator for power generation. The power generated from the



generator at 11 kV will be connected to the Sponge Iron plant after the auxiliary power consumption of

WHR power plant. The technology to be used for this project activity is based on a simple Rankine cycle

technology. After transferring heat the waste flue gas passed through the Electro Static Precipitator (ESP)

then it passed to the atmosphere.

Phase I

Auxiliary

Consumption

FBC Boiler

VKG Sponge

Iron Plant

KILN- I KILN- II

WHR boiler- I WHR boiler-II

TURBO

GENERATOR

TNEB Grid



During Phase II

Project Boundary

Technical specification of the main equipments in this project activity:

Rotary Kiln

Capacity : 100 Tons per Day

Flue gas generation : 27,000Nm3/hr

No. of units : 4

Waste heat recovery boiler

Type : Vertical, 3 Pass, Natural circulation, Water tube boiler

Auxiliary

Consumption

FBC Captive

power plant

VKG Sponge

Iron Plant

KILN- I KILN- II KILN- III KILN- IV

WHR boiler- I WHR boiler-II WHR boiler-III WHR boiler-IV

TURBO

GENERATOR

TNEB Grid



Steam output : 11.5 tonnes per hour per unit.

Steam pressure : 64 kg/cm2

Steam temperature : 485°C

No. of units : 4

Steam turbine

Type : Bleed Cum Condensing Type

No. of units : 1

Capacity : 8 MW

Rated speed : 1500 RPM

The other accessories installed in this project activity are air cooled condenser, induced draft fan, air

compressor system, de- aerator, de-mineralisation plant etc.



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

The detailed calculations for the emission reduction are in sections B and Annex 5. The estimated

amount of emission reductions is tabulated below.

A.4.5. Public funding of the project activity:

There is no public funding involved in the project activity.

Years Annual estimation of

emission reduction in

tons of CO2 e

2008 18,799

2009 34,328

2010 39,232

2011 39,232

2012 39,232

2013 39,232

2014 39,232

2015 39,232

2016 39,232

2017 39,232

Total estimated reductions

(Tons of CO2) 3,66,983

Total number of crediting years 10

Annual Average over the

crediting period of estimated

reductions(tons of CO2)

36,698



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:

The approved baseline methodology applied for this project activity is:

Approved consolidated baseline methodology ACM0004 “Consolidated baseline methodology for waste

gas and /or heat and /or pressure for power generation”. Version : 02.

Approved consolidated baseline methodology ACM0002 “Consolidated baseline methodology for grid-

connected electricity generation from renewable sources” – Version 06.

“Tool for the demonstration and assessment of additionality”– Version 03.

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

activity:

Selection approach:

The heat content of the waste flue gas from sponge iron manufacturing unit has been utilised for power

generation by implementing this project activity. The consolidated baseline methodology referred above

has been chosen for the proposed project activity based on fulfilment of the applicability conditions as

described below.

As per the methodology ACM0004, “This methodology applies to project activities that generate

electricity from waste heat or the combustion of waste gases in industrial facilities”.- This project

activity recovers the heat content of waste gases emitted from the sponge iron Kiln and this heat is

utilized to produce steam which is further used to generate electricity.



The project activity has been undertaken in the new sponge iron plant of VKGSEPL.As per the statement

discussed above the project activity under consideration meets all the applicability conditions of the

baseline methodology ACM0004.

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

Source

Gas

Included

Justification/Explanation

Baseline Grid electricity

generation

CO2 Yes Main emission source

On-site fossil fuel

consumption due

to the project

activity (stationary

or mobile)

CO2 No This project activity recovers the heat

content of waste gases emitted from the

sponge iron Kiln and this heat is utilized

to produce steam which is further used to

generate electricity Hence there is no

fossil fuel consumption due to the

project activity.

Sr.

No.

Applicability Conditions As per ACM0004

Applicability to this project activity

1 Applicable to project activities that displace

electricity generation with fossil fuels in the

electricity grid or displace captive electricity

generation from fossil fuels.

This project activity displaces the fossil fuel

based electricity generation in the southern

regional grid.

2 Applicable to project activities where no fuel

switch is done in the process ,where the waste

heat or pressure or the waste gas is produced

after the implementation of the project activity

After the implementation of the project activity

there is no fuel switch in the iron making

process from where the waste gases are

generated.



Combustion of

waste gas for

electricity

generation.

CO2

No There is no combustion of waste gas in

this project activity.

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

baseline scenario:

As per the approved methodology, ACM0004, all the alternative baseline scenarios involved in the

context of project activity should include all possible options that provide or produce electricity for

captive consumption only and/or sale to grid and/or other consumers.

The project activity shall exclude baseline options that:

• do not comply with legal and regulatory requirements; or

• depend on key resources such as fuels, materials or technology that are not available at the

project site.

The four Alternative baseline scenarios are listed & explained below:

Alternative 1: Proposed project activity without CDM benefit

Alternative 2: Import of electricity from local grid

Alternative 3: Implementation of coal based captive power generation

Alternative4: Implementation of diesel based captive power generation

Alternative 1: Proposed project activity without CDM benefit

The proposed 8 MW WHR based power generation from VKGSEPL will be totally utilised to partially

meet its power demand. The pollution control board norms for the emission of flue gas from the sponge

iron unit can be satisfied by the project even in the absence of the CDM project activity. Implementation

of this WHR project will further reduce the thermal, dust pollution levels from the flue gas and displace

the electricity purchase from southern regional grid, which in turn reduce the CO2 emissions from fossil

fuel based thermal power plants of southern regional grid. In order to implement this project activity

VKGSEPL has to make additional investment in addition to facing the technological barrier, which

makes this alternative, less attractive for the project activity with out CDM benefit. Hence this option can

be eliminated for consideration as a baseline scenario.



Alternative 2: Import of electricity from southern regional grid

In the absence of CDM project activity, VKGSEPL otherwise import electricity from southern regional

grid and this will lead to GHG emissions from fossil fuel based thermal power plants. This alternative is

in compliance with all applicable legal and regulatory requirements and may be a part of the baseline

scenario.

Alternative 3: Implementation of Coal based captive power generation

In the absence of the proposed CDM Project activity, the VKGSEPL will generate electricity by

implementation of coal based CPP to meet their demand. By utilising coal in CPP will lead to the

equivalent amount of CO2 emission to the atmosphere. This alternative is in compliance with all

applicable legal and regulatory requirements and may be a part of the baseline scenario.

Alternative4: Implementation of diesel based captive power generation

In the absence of the proposed CDM Project activity, the VKGSEPL will generate electricity by

implementation of diesel based CPP to meet their power demand. This will lead to the equivalent amount

of CO2 emission to the atmosphere by the diesel based captive power generation. This alternative is in

compliance with all applicable legal and regulatory requirements and may be a part of the baseline

scenario.


CDM – Executive Board

Evaluation of alternatives for baseline selection:

The alternative-1 eliminated for consideration as a baseline scenario because the additional

investment in addition to facing the technological barrier, which makes this alternative, less

attractive. To evaluate the appropriate baseline scenario for this project activity, the alternatives

2, 3 and 4 are discussed below.

Alternative

baseline

scenario

Capital

Cost

Operation

Costs per

unit

Source Comments

2) Import of

electricity

from local

grid

Initial

investment

is 3.77

lakhs/MW.

Industrial

consumption

Rs 3.50

TNEB.Lr.No.SE/KEDC

/KPM/DEV/JE1/F.HT.

New.03/d.236/06.

H.T Agreement with

TNEB Dated

31/07/2006 & TNEB

bill of VKG

• Initial investment is very less

• Easily available source

• Technical difficulties are

very less.

• Regulatory issues are very

less

3) Imple-

mentation of

Coal based

captive

power

generation

4.0 Crores

/MW

(High)

Rs 2.15-Rs

2.52

Report of the Expert

Committee on fuels for

power generation.CEA

Report Appendix -1.

Lr.No.SE/KEDC/KPM/

DEV/JE1/F.HT.New.03/

D.236/06 dt.21/06/06

• Initial investment is very

high, which results in

financial problems. Getting

loan from banks are very

difficult.


high.

• Getting Govt Approvals are

difficult.

• Coal supply and its

fluctuating costs are issues.

4) Imple-

mentation of

diesel based

captive

power

generation

3.5 Crores

/MW

Rs 5.96 Report of the Expert

Committee on fuels for

power generation.CEA

Report Appendix -1.

Lr.No.SE/KEDC/KPM/

DEV/JE1/F.HT.New.03/

D.236/06 dt.21/06/06

• Initial investment is High.

Generation cost is high


high.

• Getting Approvals are

difficult.

• Fluctuating costs is an issue.



From the above discussions it is clear that “Import of electricity from the grid” and “coal based power

generation” be the option for the baseline scenario. VKGSEPL is already connected with southern grid*.

In the absence of the project activity the power will be continuously supplied by the southern regional

grid. There is no technical or financial risk involved in supply from grid. Import of electricity from grid

requires a minimum investment while comparing with other baseline scenario. Among the baseline

scenarios discussed above it should be noted that alternatives 3 and 4 are the most Green House Gas

(GHG) intensive fuel based power generation.

The baseline scenario for this project activity is “Import of electricity from the grid” which is most

economically attractive. The baseline emission factor calculation is based on the combined margin

method of ACM0002.

Baseline emission factor calculation:

As described in ACM0002, the emission factor EFy of the southern grid is represented as a combination

of the Operating Margin and the Build Margin. The emission factor of the associated method is given by:

EFy = wOM . EFOMy + wBM .EFBMy

Where

EFOMy - emission factor of Operating Margin

EFBMy - emission factor of Build Margin

wOM - weight factors of Operating Margin

wBM - weight factors of Build Margin

with respective weight factors wOM and wBM (where wOM + wBM = 1), and by default, are weighted equally

(wOM = wBM = 0.5).

Operating Margin emission factor(s) (EFOM)

In the southern regional the power generation is dominated by fossil fuel based power plants and the

power generation by low cost/must run resources constitute less than 50% of total grid generation, so

simple operating margin method is used for operating margin emission factor calculation. The Operating

Margin emission factor EFOMy is defined as the generation-weighted average emissions per electricity

unit (tCO2 / MWh) of all generating sources serving the system, excluding zero- or low-operating cost

power plants (hydro, geothermal, wind, low-cost biomass, nuclear and solar generation), based on the



latest three year statistics data (year of 2003-04, 2004-05 and 2005-06) and are derived from the

following equation:

EFOMy = ∑

∑

j yj,

ji,yj,i,

GEN

EF.Fi

CO

Where:

TEMy - Total GHG emissions

TGENy – Total electricity generation supplied to the grid excluding zero- or low-

operating cost sources.

Fi,j,y – the amount of fuel i(mass or volume unit) consumed by the relevant

power sources j in year y

J - Power sources delivering electricity to the grid,not including low-operating cost and must

run power plants and including imports to the grid

COEFi - CO2 emission coefficient of fuel i (tCO2 / mass or volume unit) takking into

account the carbon content of fuels used by the relevant power sources j and

the percent oxidation of the fuel in year y.

GENj,y – The Electricity (MWh) delivered to the grid by source j.

Year

2003-04 2004-05 2005-06 Average

Operating Margin Emission Factor (tCO2 / MWh) 1.00 1.00 1.01 1.01

Source: Central Electricity Authority: CO2 Baseline Database.

Vesion:2,Dated 21st June 2007

http://www.cea.nic.in/planning/c%20and%20e/Government%20of%20India%20website.htm



Build Margin emission factor (EFBM)

The Build Margin emission factor EFBMy has been calculated based on the generation-weighted average

emission factor (tCO2/MWh) of a sample of power plants m, as follows:

EFBM,y = ∑

∑

m

ym

i

miymi

GEN

COEFF

,

,,, .

where Fi,m,y, COEFi,m and GENm,y are analogous to the variables described for the simple OM method

above for plants m.

Project participants has chosen option 1 to calculate the Build Margin emission factor EFBM,y ex-ante

based on the most recent information available on plants already built for sample group m at the time of

PDD submission. The sample group m consists of either the five power plants that have been built most

recently, or

the power plant capacity additions in the electricity system that comprise 20% of the system generation

(in MWh) and that have been built most recently. Project participants should use from these two options

that sample group that comprises the larger annual generation.

The Build Margin emission factor will be

EFBM =0.71 tCO2/MWh




Calculate the baseline emission factor (EF)

The baseline emission factor EF is calculated as combination of the Operating Margin emission factor

(EFOM) and the Build Margin emission factor (EFBM):

EF = wOM*EFOM + wBM*EFBM

Where

The weight factors wOM and wBM (where wOM + wBM = 1), and by default, are weighted equally

(wOM = wBM = 0.5).

EFOM - 1.01tCO2/MWh

wOM - 0.5



EFBM - 0.71 tCO2/MWh

wBM - 0.5

EF = 0.5*1.01 + 0.5*0.71

Baseline emission factor will be (EF) = 0.86 tCO2/MWh

Year

2003-04 2004-05 2005-06 Average

Operating Margin Emission Factor

(tCO2 / MWh)

1.00 1.00 1.01 1.01

Build Margin

(tCO2 / MWh)

0.71

0.71

Combined Margin

(tCO2 / MWh)

0.86

0.86

0.86

0.86




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):

Additionality of the project activity is demonstrated using the “tool for demonstration and assessment of

additionality” version 03 EB 29, as specified by the approved methodology ACM0004 (version 02) as

described below:

Step 1. Identification of alternatives to the project activity consistent with current laws

and regulations

Sub-step1a- Define alternatives to the project activity

All the possible four alternatives of the project activity has been discussed in the previous section

B4.Among those four alternatives 2, 3, and 4 (2: Import of electricity from local grid, 3: Implementation

of Coal based captive power generation and 4: Implementation of diesel based captive power generation)

are the possible and credible alternatives to the project activity that delivers outputs and services with

comparable quality. These alternatives are in compliance with all applicable legal and regulatory

requirements.



Sub-step1b- Consistency with mandatory laws and regulations

As per the Tamilnadu Pollution Control Board (TNPCB) norms, the presence of Suspended Particulate

Matter (SPM) in the flue gas from the Sponge iron kiln should be maintained in the range of 150 mg/Nm3

and these mandatory limits given by TNPCB were already kept in control even in the absence of the

project. There is no enforcement of mandatory laws and regulations by the Indian government on Sponge

Iron manufacturing units to implement the generation of electricity from waste heat of flue gas in sponge

iron kilns. From the above points it is clear that the implementation of the project activity is decided by

the project proponent on their own and it is not at all implemented by any mandatory law or under any

regulations of the Indian government.

Step 2. Investment analysis

Instead of Step 2, Step 3 (barrier analysis) will be discussed below.

Step –3 Barrier analysis

Sub-step 3.a Identify barriers that would prevent the implementation of the proposed CDM based

project activity.

The barriers that would prevent the implementation of the proposed project activity are as follows :

I. Technological Barriers

II. Barrier due to Prevailing Practice

I Technological Barriers:

The technological barriers faced by the project promoter to implement this project activity are explained

below.

a) Barrier due to operation:

� In Tamilnadu there is no WHR boiler based sponge iron unit before this project activity, hence

skilled and properly trained man power is not available.

� The project promoter felt that it is difficult to overcome the process disturbance due to ring

formation and other requirement in sponge iron kiln. These disturbance increase the Shutdown

days of both sponge iron plant and WHR boiler will lead to the loss of power generation.



� Inconsistency of operation of WHR boiler due to coal quality, Iron quality, equipment fitness,

flue gas temperature and variation in flue gas quantity, hence lower steam generation which

affects the power generation and it will reduce the PLF.

� Temperature variation in the flue gas affects the WHR boiler equipments. The temperature above

950oc will damage the boiler tube

b) Barrier due to Air-cooled Condenser:

The WHR project of the VKGSEPL is located in Uthiramerur taluka of Kancheepuram district in Tamil

nadu. The technology used in this project activity is Rankine cycle technology. The Rankine cycle

technology with the conventional cooling towers requires huge quantity of water. Generally, for power

project capacity of 8 MW with conventional cooling systems, which is a common practice in India, it is

estimated that a very substantial quantity of water (about 35 m3/ hr or 8, 40,000 litres /day) is required.

Due to the water scarcity in the region surrounding the project, implementing the project with

conventional cooling tower is difficult. Hence as an alternative, an air-cooled condenser (ACC) which is

considered as a water conservation equipment (as it reduces use of water only for service applications),

was found essential for the operation of the proposed plant. The cost of the air cooling system is about 3

to 4 times more than conventional water cooling system. Dry cooling systems are the least used systems

as they have a much higher capital cost, higher operating temperatures, and lower efficiency than wet

cooling systems*. Further the ACC results in additional steam requirements at the turbine inlet. This has

a spiralling effect leading to increased auxiliary power consumption. Thus the addition of the air cooling

system increases the capital investment cost and the operational costs of the project.

*Source: http://www.rerc.gov.in/Order/Final%20order_NES_Chairman.pdf

II Barrier due to Prevailing Practice

The Sponge Iron manufacturers release the high temperature flue gas into atmosphere through high

rising stack, which is the prevailing practice in India. There is no existing law prohibiting discharge of

hot flue gases in to atmosphere from the sponge iron plant. Most of the entrepreneurs have preferred to

draw the required power from the grid, as it offers them enormous operating comforts and freedom in the

manufacturing activities. As per prevailing practice not many entrepreneurs have put up the WHR based

power plant. A few of them who have put up the WHR are mainly due to the CDM strength.



In order to generate eco friendly power from the Waste heat of the flue gas from the sponge iron plant

and to displace the power drawn from grid the project promoter has to overcome the above barriers (by

seeking the CDM support).The proposed project activity is not a common practice in India, because only

16 sponge iron plants out of 147 plants have captive power generation as per JPC * (Joint Plant

Committee, a Government of India body) survey on Indian sponge iron industry. Only a few large

capacity sponge iron plants have WHR based CPP and Smaller companies have not been able to install

the WHR power project because of high capital cost and running risk. VKGSEPL is the WHR based

sponge iron unit in Tamilnadu and in the absence of this project activity the power will be drawn from

the TNEB grid. Hence the implementation of WHR boiler in VKGSEPL sponge iron unit will displace

the fossil fuel dominated electricity purchased from the TNEB grid.

* http://cdm.unfccc.int/UserManagement/FileStorage/QVQE67X4FRQB9FSE4SMYXP9J4IVRHP

Sub-step 3b: Show that the identified barriers would not prevent the implementation of at least one of

the alternatives (except the proposed project activity)

The baseline scenario for this project activity is “Import of electricity from the grid”. The technological

barrier for this project activity is operational barrier and barrier due to Air-cooled Condenser. Thèse two

barriers would not prevent the alternative baseline scenario of this project activity.

Step 4: Common Practice analysis:

Based on the information about activities similar to the proposed project activity, the project proponent is

supposed to carry out common practice analysis to complement and reinforce the barrier analysis. The

project proponent is required to identify and discuss the existing common practice through the following

sub steps:

Sub-Step 4a: Analyze other activities similar to the proposed project activity



Table 1: Indian sponge iron industry summarised table given in JPC report

Indian Sponge Iron Industry : Both Coal & Gas Segments

Data Collected Additional / Total

Industry/ Field

sources^

No of Capacity No. of Capacity# No. of Capacity

Units (Unit :mt) units (unit:mt) units (unit:mt)

Operating

Coal 147 11 56 2 203 13

Gas 3 6 - - 3 6

Total 150 17 56 2 206 19

Under 58 6 167 12* 225 18

commissioning

(Coal)

^=State DI Offices; #=Estimated, *=included units in proposal/ planning stage

Source:http://cdm.unfccc.int/UserManagement/FileStorage/QVQE67X4FRQB9FSE4SMYXP9J4IVRHP

In India 203 sponge iron plants are in operation and 225 plants are under commissioning. Chhattisgarh,

Orissa, Jharkhand and West Bengal are the leading sponge iron producing states in India. In Tamilnadu

only two plants are in operation and two plants are under commissioning stage. This indicates a very low

penetration (Out of 448 plants in India only 4 sponge iron plants are in Tamilnadu) of this technology in

this region. Hence this project activity is not a common practice in this region.

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

From the above analysis it is clear that the proposed project activity is not a common practice in Tamil

nadu. Other than VKGSEPL, three project activities are under commissioning stage in the state with

waste heat recovery based power generation and are primarily coming up after taking the CDM funding

into consideration .The other three project activities are under PDD Preparation stage and this is a clear

indication that due to the barriers discussed earlier waste heat recovery from the sponge iron unit is not a

common practice in Tamilnadu. Moreover currently the waste heat recovery systems are coming up in

this region only on the basis of CDM funding.



B.6. Emission reductions:

B.6.1. Explanation of methodological choices:

The choice of Methodology is already explained in section B2 and B4.As per the methodology

ACM0004 the emission reduction for this project activity is explained below.

Emission Reduction

As per the methodology the emission reduction ERy by the project activity during a given year y is the

difference between the baseline emissions though substitution of electricity generation with fossil fuels

(BEy) and project emissions (PEy), as follows:

ERY = BEY − PEY ( Equation 5 of methodology ACM0004 in page no 6)

Where,

ERY - are the emissions reductions of the project activity during the year y in tons of CO2,

BEY - are the baseline emissions due to displacement of electricity during the year y in tons of

CO2

PEY - are the project emissions during the year y in tons of CO2,

Baseline emissions :

Baseline emissions are given as:

BEelectricity,y = EGy .EFelectrictyY ( Equation 2 of methodology ACM0004 in page no 4)

where:

EGY Net quantity of electricity supplied to the manufacturing facility by the project during the year y

in MWh, and

EFy CO2 baseline emission factor for the electricity displaced due to the project activity

during the year y (tCO2/MWh).

Leakage

As per the methodology ACM0004 there is no leakage from this project activity

Project emission:



As per methodology “Project Emissions are applicable only if auxiliary fuels are fired for generation

startup, in emergencies, or to provide additional heat gain before entering the Waste Heat Recovery

Boiler”.

In this project activity there is no auxiliary fuels firing for power generation startup, in emergencies, or to

provide additional heat gain before entering the Waste Heat Recovery Boiler”. Hence there is no project

emission.

PEY = 0

Emission reduction by the project activity

ERY = BEY

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

Data / Parameter: EFOM

Data unit: tCO2eq/MWh

Description: Operating Margin emission factor of the Southern grid

Source of data

used:

Central Electricity Authority (CEA) CO2 Baseline Database values have been used

for calculation. Source:


Value applied: 1.01

Justification of the

choice of data or

description of

measurement

methods and

procedures actually

applied :

Calculated by Central Electricity Authority (CEA)

Any comment:

Data / Parameter: EFBM


Description: Build Margin emission factor of the Southern grid

Source of data

used:




Value applied: 0.71




choice of data or

description of

measurement

methods and

procedures actually

applied :


Any comment:

Data / Parameter: EFelectricity


Description: Combined Margin emission factor of the Southern grid

Source of data

used:




Value applied: 0.86


choice of data or

description of

measurement

methods and

procedures actually

applied :


Any comment:

B.6.3 Ex-ante calculation of emission reductions:

Baseline emission calculation:

Baseline emission are calculated by multiplying the net quantity of electricity generated by this project

activity (EGy) with the CO2 baseline emission factor for the electricity displaced due to the project (EF

electricity,y) as follows:

BEelectricity,y = EGy .EFelectrictyY

Where:

EF electricity,y = Baseline emission factor

= 0.86 tCO2/MWh



Year

2003-04 2004-05 2005-06 Average

Operating Margin Emission Factor

(tCO2 / MWh)

1.00 1.00 1.01 1.01

Build Margin

(tCO2 / MWh)

0.71

0.71

Combined Margin

(tCO2 / MWh)

0.86 0.86 0.86

0.86

Source: http://www.cea.nic.in/planning/c%20and%20e/Government%20of%20India%20website.htm

Year 2010 (during Phase II)

Total Capacity = 8 MW

Operational Days = 330 Days

Plant load factor = 80%

Total Electricity Generation (EGGEN) = 8*24*330*0.8

= 50,688 MWh/year

Auxiliary Consumption (EG AUX) = EG AUX from WHR + EG AUX from GRID

EG AUX from WHR = 10 % of the EG GEN

EG AUX from GRID = 0

EG AUX = 50,688*0.10 + 0

= 5,068

Net Electricity Generation (EGY) = 50,688 -5,068

= 45,620 MWh/year

Baseline emission factor = 0.86 tCO2/MWh

Baseline emission (BEy) = 45,620 * 0.86

= 39,232 tCO2/year

For the first three years (2008, 2009, 2010) detailed calculation are explained in the Annex-5



B.6.4 Summary of the ex-ante estimation of emission reductions:

Years

Baseline emission

(Tonnes of CO2e)

Project Activity emission

(Tonnes of CO2e)

Emission Reduction

(Tonnes of CO2e)

2008 18,799 0

18,799

2009 34,328 0

34,328

2010 39,232 0

39,232

2011 39,232 0

39,232

2012 39,232 0

39,232

2013 39,232 0

39,232

2014 39,232 0

39,232

2015 39,232 0

39,232

2016 39,232 0

39,232

2017 39,232 0

39,232

Total

(Tonnes of CO2e) 3,66,983 0 3,66,983

B.7 Application of the monitoring methodology and description of the monitoring plan:

B.7.1 Data and parameters monitored:

Phase-I

(Copy this table for each data and parameter)

Data / Parameter: QWHRB

Data unit: Tons/Hr

Description: Flow rate of steam from two numbers of WHR Boilers

Source of data to be

used:

Daily Report

Value of data applied

for the purpose of

calculating expected

emission reductions in

section B.5

23 TPH

Description of

measurement methods

Flow rate of steam is measured by flow meter.



and procedures to be

applied:

QA/QC procedures to

be applied:

General Manager would be responsible for regular calibration of the meter

Any comment: The flow rate of steam monitored by Distributed Control System(DCS).The data

measured by the flow meter is entered in log book which is maintained regularly.

Data / Parameter: P1

Data unit: kg/cm2

Description: Pressure of WHRB Steam


used:

Daily Report


for the purpose of



section B.5

66

Description of

measurement methods


applied:

Pressure of WHRB steam is measured by Pressure gauge.

QA/QC procedures to

be applied:

General Manager would be responsible for regular calibration of the Pressure

gauge

Any comment: The presser of steam monitored by Distributed Control System(DCS).The data

measured by the Pressure gauge is entered in log book which is maintained

regularly

Data / Parameter: T1

Data unit: Deg. C

Description: Temperature of WHRB Steam


used:

Daily Report


for the purpose of



section B.5

490

Description of

measurement methods


applied:

Temperature WHRB steam is measured by Thermocouple.

QA/QC procedures to

be applied:

General Manager would be responsible for regular calibration of the

Thermocouple.



Any comment: The Temperature of steam monitored by Distributed Control System(DCS).The

data measured by the thermocouple is entered in log book which is maintained

regularly

Data / Parameter: h 1

Data unit: kcal/kg

Description: Enthalpy of WHRB Steam per kg


used:

Daily Report


for the purpose of



section B.5

3390.61

Description of

measurement methods


applied:

Calculated from Average Temperature and Pressure of WHRB Steam

QA/QC procedures to

be applied:

-

Any comment: -

Data / Parameter: H 1

Data unit: Kcal

Description: Total enthalpy of WHRB Steam on daily basis


used:

Daily Report


for the purpose of



section B.5

1.8716 X109

Description of

measurement methods


applied:

Calculated from Quantity and Enthalpy of WHRB Steam

QA/QC procedures to

be applied:

-

Any comment: -



Data / Parameter: QFBC

Data unit: Tons/Hr

Description: Flow rate of steam from FBC Boiler


used:

Monthly Report


for the purpose of



section B.5

25 TPH

Description of

measurement methods


applied:

Flow rate of steam is measured by flow meter.

QA/QC procedures to

be applied:

General Manager would be responsible for regular calibration of the meter

Any comment: The flow of steam monitored by Distributed Control System(DCS).The data

measured by the flow meter is entered in log book which is maintained regularly

Data / Parameter: P2

Data unit: kg/cm2

Description: Pressure of FBC Steam


used:

Daily Report


for the purpose of



section B.5

66

Description of

measurement methods


applied:

Pressure FBC steam is measured by Pressure gauge.

QA/QC procedures to

be applied:

General Manager would be responsible for regular calibration of the Pressure

gauge

Any comment: The Pressure of steam monitored by Distributed Control System(DCS).The data

measured by the Pressure gauge is entered in log book which is maintained

regularly

Data / Parameter: T2

Data unit: Deg. C

Description: Temperature of FBC Steam

Source of data to be Daily Report



used:


for the purpose of



section B.5

490

Description of

measurement methods


applied:

Temperature FBC steam is measured by Thermocouple.

QA/QC procedures to

be applied:

General Manager would be responsible for regular calibration of the

Thermocouple.

Any comment: The temperature of steam is monitored by Distributed Control System(DCS).The

data measured by the thermocouple is entered in log book which is maintained

regularly

Data / Parameter: h 2

Data unit: kCal/kg

Description: Enthalpy of FBC Steam per kg


used:

Daily Report


for the purpose of



section B.5

3390.61

Description of

measurement methods


applied:

Calculated from Average Temperature and Pressure of FBC Steam

QA/QC procedures to

be applied:

-

Any comment: -

Data / Parameter: H 2

Data unit: kCal /day

Description: Total enthalpy of FBC Steam on daily basis


used:

Daily Report


for the purpose of


2.0343x 109




section B.5

Description of

measurement methods


applied:

Calculated from Quantity and Enthalpy of FBC Steam

QA/QC procedures to

be applied:

-

Any comment: -

Data / Parameter: EG Total

Data unit: MWh/year

Description: Total Electricity generated from STG by steam from both WHR and FBC boilers

( Captive Power Plant )


used:

Daily Report


for the purpose of



section B.5

50,688

Description of

measurement methods


applied:

Measured by Energy Meter

QA/QC procedures to

be applied:

General Manager would be responsible for regular calibration of the Energy

meter.

Any comment: - The total Electricity generated from STG is monitored by Distributed Control

System(DCS).The data measured by the energy meter is entered in log book

which is maintained regularly

Data / Parameter: EGGEN

Data unit: MWh/year

Description: Total Electricity generated by the project activity ( by steam from WHRB only )


used:

Daily Report


for the purpose of



section B.5

24,288



Description of

measurement methods


applied:

Electricity generated by the WHRB is calculated on the basis of total power

generated from CPP and total enthalpy of steam (Enthalpy per unit steam *

Steam flow) from WHRB as a percentage of total enthalpy of steam fed to the

common header of the CPP.

QA/QC procedures to

be applied:

-

Any comment: -

Data / Parameter: EGAUX –from CPP

Data unit: MWh

Description: Auxiliary consumption of electricity by Captive Power Plant from its own

Generation (Captive power plant.)


used:

Monthly Report


for the purpose of



section B.5

5069

Description of

measurement methods


applied:


QA/QC procedures to

be applied:


meter.

Any comment: -

Data / Parameter: EGAUX-from GRID

Data unit: MWh

Description: Auxiliary consumption of electricity by the Captive power plant from Grid


used:

Monthly Report


for the purpose of



section B.5

0

Description of

measurement methods


applied:


QA/QC procedures to General Manager would be responsible for regular calibration of the Energy



be applied: meter.

Any comment: -

Data / Parameter: EGAUX –TOTAL

Data unit: MWh

Description: Auxiliary consumption of electricity by the Captive power plant from both

Captive power plant and Grid


used:

Monthly Report


for the purpose of



section B.5

5069

Description of

measurement methods


applied:

Calculated from the Auxiliary consumption meter reading from Captive Power

Plant and Grid

QA/QC procedures to

be applied:

-

Any comment: -

Data / Parameter: EGAUX

Data unit: MWh

Description: Auxiliary consumption of electricity by the project activity (WHR Power plant )

from both grid and WHR Power Plant


used:

Monthly Report


for the purpose of



section B.5

2,429

Description of

measurement methods


applied:

Auxiliary Consumption by the WHR Power Plant is calculated on the basis of

total power consumed by CPP and total enthalpy of steam (Enthalpy per unit

steam * Steam flow) from WHRB as a percentage of total enthalpy of steam fed

to the common header of the CPP.

QA/QC procedures to

be applied:

-



Any comment: -

Data / Parameter: EGY

Data unit: MWh/Year

Description: Net electricity generated by the project activity


used:

Calculated from the meter reading of Total electricity generated by the WHR

Power Plant and auxiliary consumption of electricity by project activity.


for the purpose of



section B.5

21,859

Description of

measurement methods


applied:

Calculated from the total electricity generated and auxiliary consumption of

electricity by project activity (WHR Power Plant ).

QA/QC procedures to

be applied:

-

Any comment: -

After Phase- II

Data / Parameter: EGGEN

Data unit: MWh

Description: Total Electricity generated by this project activity


used:

Daily Report


for the purpose of



section B.5

50,688

Description of

measurement methods


applied:

Electricity generated is measured by Energy meter

QA/QC procedures to

be applied:


meter.

Any comment: The total Electricity generated from STG is monitored by Distributed Control

System(DCS).The data measured by the energy meter is entered in log book

which is maintained regularly



Data / Parameter: EGAUX – From WHR

Data unit: MWh

Description: Auxiliary consumption of electricity by the project activity from WHR plant.


used:

Monthly Report


for the purpose of



section B.5

5,069

Description of

measurement methods


applied:


QA/QC procedures to

be applied:


meter.

Any comment: -

Data / Parameter: EGAUX-From GRID

Data unit: MWh/Year

Description: Auxiliary consumption of electricity by the project activity from Grid


used:

Monthly Report


for the purpose of



section B.5

0

Description of

measurement methods


applied:


QA/QC procedures to

be applied:


meter.

Any comment: -



Data / Parameter: EGAUX

Data unit: MWh/Year

Description: Auxiliary consumption of electricity by the project activity from both grid and

WHR Power Plant


used:

Monthly Report


for the purpose of



section B.5

5,068

Description of

measurement methods


applied:

Calculated from the Auxiliary consumption meter reading from Grid and WHR

Power Plant.

QA/QC procedures to

be applied:

-

Any comment: -

Data / Parameter: EGY

Data unit: MWh/Year

Description: Net electricity generated by the project activity


used:

Calculated from the meter reading of total electricity generated and auxiliary

consumption of electricity by project activity.


for the purpose of



section B.5

45,619

Description of

measurement methods


applied:

Calculated from the meter reading of total electricity generated and auxiliary

consumption of electricity by project activity.

QA/QC procedures to

be applied:

-

Any comment: -



B.7.2 Description of the monitoring plan:

To address all O&M issues, though the overall authority and responsibility belongs the management, it

has formed a team of Supervisors and Field Representatives headed by a General Manager to effectively

control and monitor the complete process in the plant area.

The monitoring data of the equipments are recorded by labours/ supervisors and data are submitted to the

shift incharges. The shift incharges report daily to the General Manager. The General manager submits a

monthly report to the management, which will be documented and stored in the project office. By this

operational structure, the management can monitor the project activity and make amendments

immediately, if needed. The monitored parameters have low level of uncertainty. Therefore the possible

monitoring data adjustments are not envisaged for the project. Reported results and data will be

compared with the previous results and data and will be thoroughly checked for any inconsistency.

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)

Management

General Manager

Shift in Charge

Supervisor

Labourer



Organization: V.K.G Steel & Energy Pvt Limited

Street/P.O.Box: Broadway

Building: 163/1, 1st floor, K.Sons Complex

City: Chennai

State/Region: Tamilnadu

Postfix/ZIP: 600 108

Country: India

Telephone: 91-44-2524 9501

FAX: 91-44-4262 7402

E-Mail: [email protected]

URL:

Represented by: Mr.M.Mohamed Abdulla

Title: Director

Salutation: Mr.

Last Name: Abdulla

Middle Name:

First Name: Mohamed

Department: Power Plant

Mobile: +91 93802 22600 / +91 94449 00900

Direct FAX: 91-44-2524 9511

Direct Tel: 91-44-2524 9500

Personal E-Mail: [email protected]



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:

19/01/2005

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:

C.2.1.2. Length of the first crediting period:

C.2.2. Fixed crediting period:

C.2.2.1. Starting date:

The starting date of the crediting period is 01/01/2008 or a date not earlier than the date of registration

of the project activity.

C.2.2.2. Length:

10 years



SECTION D. Environmental impacts

D.1. Documentation on the analysis of the environmental impacts, including transboundary

impacts:

� ANALYSIS OF ENVIRONMENTAL ASPECTS:

The adversity caused to the environment due to the emission of green house gases can be reduced to

desirable limit by implementing WHR based electricity generation in industries. The support provided by

the CDM activity will further accelerate implementation of the GHG emission reduction projects in the

industrial sectors in India. Due to the implementation of WHR based CPP in the sponge iron unit of

VKGSEPL there is no major impact upon the surrounding environment. Even though the CPP is eco-

friendly in nature, the waste hot flue gas utilised in the CPP consists of pollutants and it must be removed

before vented to the environment. So the project promoter carried out an Environmental Impact

Assessment study to ascertain the impact of the pollutants from various parts of CPP on the environment.

The pollutants monitored in the Environmental Impact Assessment studies are as follows

• DUST AND PARTICULATE MATTER

The waste flue gas generated during the iron ore reduction process in kiln consists of dust, particulate

matter and high heat content. After the utilization of heat content of flue gas in the WHR boiler it

consists of only dust and particulate matter. The dust and suspended particulate matter (SPM) in the flue

gas are trapped by a well designed Electrostatic Precipitator (ESP) in order to achieve concentration level

below the permissible limit as per the Pollution control board norms.

• THERMAL POLLUTION REDUCTION

The reason for thermal pollution is due to liberation of waste hot flue gas directly into the atmosphere

without utilizing the heat content. But in the case of VKGSEPL the heat content of waste flue gas

generated in their sponge iron kiln has been utilized in the WHR boiler for steam generation and thereby

reduces thermal pollution.

• GREEN HOUSE GAS (GHG) EMISSION REDUCTION

In VKG Steel and Energy Pvt.ltd., the waste flue gas generated from sponge iron kiln contains more heat

content and this is utilised in the WHR boiler of the CPP to generate electricity. Thus there is no need for

VKGSEPL to purchase electricity from TNEB grid. By displacing the procurement of electricity from the

state grid, VKGSEPL has reduced the emission of green house gases since the fossil fuel based thermal

power plants are the major power sources for TNEB grid.



• SOx AND NOx EMISSIONS

The chimney of appropriate height has been erected within the boundary of CPP to reduce SOx

emissions and hence controlled within the TNPCB norms. NOx emissions will be controlled by

appropriate firing adjustments in the boiler.

• EFFLUENT FROM WATER TREATMENT PLANT

In order to neutralise (pH 7.0) the water drained from the water treatment plant after regeneration, it is

pumped to a neutralization pit. The neutralization pit will have acid resistant brick lining. Depending on

the quality of water collected in the pit, either an alkaline medium or acidic medium will be pumped into

the pit to neutralize the water.

• BOILER WATER BLOW DOWN

In order to maintain the solids concentration in the boiler water, blow down is employed in the boiler.

The blow down water will be at a temperature of 1000C. The quantity of blow down will be around 1.44

tph. This water can be taken to the effluent pond, where it will get cooled naturally.

• SEWAGE FROM THE POWER PLANT BUILDINGS

The sewage from the power plant building will be taken to a common septic tank through trenches. The

sewage from the septic tank will be disposed off through soak pit/concrete dispersion trenches. As the

sewage is taken in trenches the soil will not get contaminated.

• NOISE POLLUTION

The noise level in the plant has been maintained as per TNPCB standards by installing silencers, sound

proof walls etc.

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:

CONCLUSION:

From step D.1 it is clear that all the environmental impacts of the CPP analysed in the environmental

impact assessment studies have no remarkable effect in the atmosphere. The assessment studies

undertaken by the VKGSEPL is according to the pollution control board norms. The Green House Gas



emission, thermal pollution and dust pollution have been reduced by the implementation of WHR based

CPP implemented in the sponge iron unit of VKGSEPL and the project promoter has received valid

approvals from the Tamilnadu Pollution Control Board (TNPCB).



SECTION E. Stakeholders’ comments

E.1. Brief description how comments by local stakeholders have been invited and compiled:

VKGSEPL has implemented a WHR based power plant at Uthiramerur Taluka of Kancheepuram

District. The project promoter had conducted stakeholders meeting on 18th August 2006 at project site

office in Melappakkam village, with local people, Village administrative officer, Panchayat President and

Government official from the TNEB were the participants in this meeting. The project promoter and

equipment supplier explained the various features and benefits of this project activity. The heat content

of waste hot flue gas has been utilized in a WHR boiler to generate steam and it is passed through a

turbine to generate electricity. In this process only heat energy from the flue gas is used as a thermal

source, so there will be zero GHG emissions by the project activity. They also explained the stakeholders

about the eco-friendly nature of the project. The project proponent has established good relationship with

the local people who ensure cooperation for the successful and continuous operations of the this project

The local people also agreed that their infrastructure facility like road and transportation was improved

due this project activity. A questionnaire had been circulated in order to welcome the comments of the

local people. The local village people agreed that due to this project activity the employment opportunity

has increased. There is no negative comment received from the stakeholders.

E.2. Summary of the comments received:

The project promoter and the equipment supplier explained the scenario about the project. There is no

pollution due to this power genation through the waste heat recovery boiler. The project activity has

contributed to developments in the social, economical and environmental area. Because of this project

activity the local village area and infrastructure facility improved. Further it creates direct employment

for the people in the local region. Hence the administrative leaders of local area like panchayat leader,

people provided positive comments for this project activity.Hence there is no negative comment received

from the stakeholders.

Tamilnadu Pollution Control Board (TNPCB) has issued the consent for establishment & clearance for

this WHR project under section 21 of Air (Prevention and control of Pollution) Act .1981 as amended in

1987, vide letter No.T3/TNPCB/F.NO 3731/KPM/RL/V/2005 dated 03/05/2005.



The Ministry of Commerce & Industry has given an acknowledgement for this project activity. Letter No.

1939/SIA/TMO/2005 dated 25/04/2005.

The project activity has received certificate of registration of captive generating plant fro Department of

Electrical Inspectorate and electricity Tax, Government of Tamilnadu. Letter No. 4289/EI/KPM/2005

dated 25/10/2005

E.3. Report on how due account was taken of any comments received:

There is no negative comments from the local village people. The project activity had provided

employment opportunity for the local village people during the time of construction and operation. The

local people has not faced any problem due to the project activity. There is no negative comment

received from the stakeholders.



Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY

Organization: V.K.G Steel & Energy Pvt Limited

Street/P.O.Box: Broadway

Building: 163/1, 1st floor, K.Sons Complex

City: Chennai

State/Region: Tamilnadu

Postfix/ZIP: 600 108

Country: India

Telephone: 91-44-2524 9501

FAX: 91-44-4262 7402

E-Mail: [email protected]

URL:

Represented by: Mr.M.Mohamed Abdulla

Title: Director

Salutation: Mr.

Last Name: Abdulla

Middle Name:

First Name: Mohamed

Department: Power Plant

Mobile: +91 93802 22600 / +91 94449 00900

Direct FAX: 91-44-2524 9501

Direct tel: 91-44-2524 9500

Personal E-Mail: [email protected]



Annex 2

INFORMATION REGARDING PUBLIC FUNDING

There is no public funding for this project activity.



Annex 3

BASELINE INFORMATION

CENTRAL ELECTRICITY AUTHORITY: CO2 BASELINE DATABASE

VERSION 2.0

DATE 21 June 2007

BASELINE METHODOLOGY ACM0002 / Ver 06

Weighted Average Emission Rate (tCO2/MWh) (incl. Imports)

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

South 0.74 0.75 0.82 0.84 0.78 0.74

Simple Operating Margin (tCO2/MWh) (incl. Imports)

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

South 1.03 1.00 1.01 1.00 1.00 1.01

Build Margin (tCO2/MWh) (not adjusted for imports)

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

South 0.71 0.71

Combined Margin in tCO2/MWh (incl. Imports)

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

South 0.87 0.85 0.86 0.86 0.85 0.86



Annex 4

MONITORING INFORMATION

Monitoring plan already discussed in section B.7.The detailed calculation for power generated from

WHRB’s alone and CER Calculation are explained below

Phase I

Calculation of power generated by WHRB’s alone

The power generated from WHRB alone is calculated on the basis of Total Enthalpy (steam enthalpy per

unit x steam flow) of WHRB steam as a percentage of Total Enthalpy of Steam fed to the common

header from both WHRB’s and FBC.

1) Total Enthalpy of Steam from WHR in kCal (H1)

= Enthalpy of Steam generated by WHRB in kcal/Kg * Total steam flow from the

WHRB in Tons

Enthalpy of WHRB steam is calculated based on the average Temperature and pressure of the WHRB

steam.

2) Total Enthalpy of Steam from FBC in kCal (H2)

= Enthalpy of Steam generated by FBC in kcal/Kg * Total steam flow from the

FBC in Tons

Enthalpy of FBC steam is calculated based on the average Temperature and pressure of the FBC steam.

3) Electricity generated by the WHRB alone(EGGEN)

The electricity generated by the WHR alone is calculated by multiplying the Total electricity generated

by both WHRB and FBC with the value of ratio between enthalpy of WHRB steam (H1) and the

enthalpy of total steam generated by WHRB & FBC(H1+H2)

EGGEN = EGTotal * (H1/(H1+H2))------------1



4) The total Auxiliary power Consumption of the Captive power plant EG AUX-TOTAL is Calculated

from the total auxiliary power consumption by the Captive power plant from both its own generation

(Captive power plant) and Grid

EG AUX-TOTAL = EGAUX –from CPP + EGAUX –from GRID

EGAUX –from CPP - Auxiliary power consumption by the Captive power plant from its (CPP) own

generation

EGAUX –from GRID- Auxiliary power consumption by the Captive power plant from Grid

5) Again, if Auxiliary Consumption for the CPP is EGAUX- EG AUX-TOTAL (in MWh), then WHR

Power Plant Auxiliary Consumption (EGAUX-WHR ) will calculated in the same ratio as

EGAUX = EG AUX –TOTAL x (H1 /(H1 + H2)) --------------2

6) Therefore Net Generation from Waste heat Recovery i.e. project activity (1 – 2)

EGy (MWh) = (EGGEN - EGAUX )

Phase II

In the second phase 2 No. of 2 MW Waste Heat recovery Boiler (WHRB) and existing 2 No. of 2 MW

WHRB connected to existing 8MW STG. So after implementation of Phase II the existing 8 MW STG

will be operating with 100 % Waste Heat Boilers Steam Only. The following monitoring plan will be

followed after Phase II.

1) Electricity generated by the Project activity (EGGEN) is measured by the Energy meter

2) EG AUX is Calculated from the Auxiliary power consumption meter reading from both Grid and

WHR Power Plant

EG AUX = EGAUX –from WHR + EGAUX –from GRID

EGAUX –from WHR- Auxiliary power consumption meter reading from WHR Power Plant

EGAUX –from GRID- Auxiliary power consumption meter reading from Grid

3 ) Therefore Net Generation from Waste heat Recovery i.e. project activity

EGy (MWh) = (EGGEN - EGAUX)



Annex 5

CER CALCULATION

1. For Year 2008- Phase-I (With 80 % PLF)

WHR Steam Parameter

Pressure of WHRB Steam (P1) = 66 kg/cm2

Temperature of WHRB Steam (T1) = 490O

C

Average temperature (T1) and pressure (P1) of the day is used for enthalpy calculation

Enthalpy of WHRB Steam (h1) = 3,390.61 kcal/kg

Total quantity of steam generated from WHRB (QWHRB) = 23 TPH

Total enthalpy of WHRB steam (H1) = QWHRB * h1

= 23*1,000*24*3,390.61

= 1.8716 *109

kcal/day

FBC Steam Parameter

Pressure of FBC Steam (P2) = 66 kg/cm2

Temperature of FBC Steam (T2) = 490O

C

Average temperature (T2) and pressure (P2) of the day is used for enthalpy calculation

Enthalpy of FBC Steam (h2) = 3,390.61 kcal/kg

Total quantity of steam generated from FBC (QFBC) = 25 TPH

Total enthalpy of FBC steam (H2) = QFBC * h2

= 25*1,000*24*3,390.61

= 2.0343 *109

kcal/day

Enthalpy ratio for WHRB Steam

= H1/ (H1+H2)

= 1.8716/ (1.8716+2.0343)

= 0.4791

Total electricity generated by both FBC and WHRB (EGTotal)






Total Electricity Generation = 8*24*330*0.8

= 50,688 MWh/year

Total electricity generated by WHRB alone (EGGen)

EGGen = EGTotal * (H1/ (H1+H2)

= 50,688 * 0.4791

= 24,288 MWh/year

Auxiliary electricity consumed by Total captive power plant (EGAUX TOTAL)

= EG AUX –from CPP + EG AUX-from GRID

Electricity consumed from Captive power plant

(EG AUX –from CPP) = 10 % of the EGTotal

Electricity consumed from grid (EG AUX –from GRID) = 0

EGAUX- TOTAL = 50,688 * 0.10 + 0

=5,068 MWh/year

Auxiliary electricity consumed by WHRB alone (EGAUX - WHRB)

= EG AUX - TOTAL * (H1/ (H1+H2)

= 5068 * 0.4791

= 2,429 MWh/year

Net electricity generated by WHRB alone (EGy) = EGGen - EGAUX -WHRB

= 24288 – 2429

= 21,859 MWh/year

Emission Reduction (ER)


Baseline emission (BEy) = 21859 * 0.86

= 18,799 tCO2/year

This project activity utilizes the waste heat for power generation. Hence there is no project emission and

leakage from the project activity. There is no GHG emission within the project boundary.



ERY = BEY − PEY

PEY = 0

ERY = B.EY

Emission Reduction (ER) = 18,799 tCO2/year

2. For Year 2009 Phase-II

Power generation from continuation of Phase I Four (4) MW WHR power plant (With 80 % PLF)


Operational Days = 330Days


Total Electricity Generation (EG GEN) = 4*24*330*0.8

= 25,344 MWh/year

Auxiliary Consumption (EG AUX) = EG AUX from CPP + EG AUX from GRID

EG AUX from CPP = 10 % of the EG GEN


EG AUX = 25,344 *0.10 + 0

= 2,534

Net Electricity Generation = 25,344 -2,534

= 22,810 MWh/year

Phase-II Power generation from new 4 MW WHR power plant (With 60 % PLF)


Operational Days = 330Days


Total Electricity Generation (EG GEN) = 4*24*330*0.6

= 19,008 MWh/year






EG AUX = 19,008*0.10 + 0

= 1,900

Net Electricity Generation(EGY) = 19,008 -1,900

= 17,108 MWh/year

Total Net Power generation from Phase-I & Phase-II

Total Net Electricity Generation (EGY) = 39,918 MWh/year


Baseline emission (BEy) = 39,918* 0.86

= 34,328 tCO2/year

This project activity utilizes the waste heat for power generation. Hence there is no project

emission and leakage from the project activity. There is no GHG emission within the project

boundary.

ERY = BEY − PEY

PEY = 0

ERY = B.EY


3. For the Year 2010 during Phase II (With 80 % PLF)




Total Electricity Generation (EGGEN) = 8*24*330*0.8

= 50,688 MWh/year




EG AUX = 50,688*0.10 + 0

= 5,068

Net Electricity Generation (EGY) = 50,688 -5068



= 45,620 MWh/year


Baseline emission (BEy) = 45,620 * 0.86

= 39,232 tCO2/year

This project activity utilizes the waste heat for power generation. Hence there is no project

emission and leakage from the project activity. There is no GHG emission within the project

boundary.

ERY = BEY − PEY

PEY = 0

ERY = B.EY


The basis for 2010 calculation applies for the balance crediting years i.e. 2011 to 2017.



Appendix A REFERENCES



Appendix B Abbreviations

ACC Air- Cooled Condenser

CASE Commission for Additional Sources of Energy

CCGT Combined Cycle Gas Turbine

1 Kyoto Protocol to the United Nations Framework Convention on Climate Change

(UNFCCC)

2 Website of United Nations Framework Convention on Climate Change,

http://unfccc.int

3 UNFCCC decision 17/CP.7: Modalities and procedures for a clean development

mechanism as defined in article 12 of the Kyoto Protocol

4 UNFCCC, Clean Development Mechanism, Project Design Document (CDM-PDD)

5 UNFCCC document: Approved consolidated baseline methodology

ACM0004“Consolidated baseline methodology for waste gas and /or heat and /or for

pressure for power generation”

6 Detailed project report– VKG Steel and Energy Pvt,Ltd.

7 Baseline for Renewable energy projects under clean development mechanism-TERI

Report No 2000RT64.

8 Website of Central Electric Authority (CEA), Ministry of Power, Govt. of India-

www.cea.nic.in

9 Website of TNERC www.tnerc.tn.nic.in

10 Website of Kerala Electricity Board www.kseboard.com

11 Website of Karnataka Power Transmission Corporation Limited www.kptcl.com

12 Website of Andhrapradesh Power Generation Company www.apgenco.com

13 Website of TamilNadu Electricity Board www.tneb.org



CDM Clean Development Mechanism

CEA Central Electricity Authority

CER Certified Emission Reductions

cm Centimetre

CO2 Carbon dioxide

CPP Captive Power Plant

DCS Digital Control Systems

DNES Department of Non-conventional Energy Sources

DPR Detailed Project Report

EF Emission Factor

ESP Electro Static Precipitator

FBC Fluidised Bed Combustion

GHG Green House Gas

IPCC Intra governmental Panel for Climate Change

IPP Independent Power Producers

IPP Independent Power Producers

kCal Kilo Calories

kg Kilogram

Km Kilometre

KP Kyoto Protocol

Ksca Kilogram Square Centimetre absolute

kv Kilo voltage

kW Kilowatt

kWh Kilowatt hour

LP Low Pressure

MNES Ministry of Non-Conventional Energy Sources

MT Metric Tons

MU Million Units

MU Million Units

MW Megawatt

NGO Non Government Organizations

NLC Neyveli Lignite Corporation

NHPC National Hydro Power Corporation

NOC No Objection Certificate

NTPC National Thermal Power Corporation

PDD Project Design Document

PFC Power Finance Corporation Ltd.

PIN Project Idea Note

PLF Plant Load Factor

PPA Power Purchase Agreement

QA Quality Assurance

QC Quality Control

RET Renewable Energy Technologies

RLDC Regional Load Dispatch Centres



SLDC State Load Dispatch Centres

SPM Suspended Particulate Matter

TNEB Tamilnadu Electricity Board

TNERC TamilNadu Electricity Regulatory Commission

TNPCB Tamilnadu Pollution Control Board

TPH Tons Per Hour

VKGSEPL VKG Steel and Energy Pvt,Ltd.

WHR Waste Heat Recovery

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