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PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM Executive Board 1 CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) Version 03 - in effect as of: 22 December 2006 CONTENTS A. General description of the small scale 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 proposed small scale project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring Information Appendix Appendix 1: Sustainable Development Assessment Appendix 2: Environmental and Social Impacts Checklist
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Page 1: CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT … - BSL DG CDM - PDD - 20.04... · CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM ... to Liquefied Natural Gas (LNG)

PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

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CLEAN DEVELOPMENT MECHANISM

PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD)

Version 03 - in effect as of: 22 December 2006

CONTENTS

A. General description of the small scale 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 proposed small scale project activity

Annex 2: Information regarding public funding

Annex 3: Baseline information

Annex 4: Monitoring Information

Appendix

Appendix 1: Sustainable Development Assessment

Appendix 2: Environmental and Social Impacts Checklist

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Revision history of this document

Version

Number

Date Description and reason of revision

01 21 January

2003

Initial adoption

02 8 July 2005 The Board agreed to revise the CDM SSC PDD to reflect

guidance and clarifications provided by the Board since

version 01 of this document.

As a consequence, the guidelines for completing CDM SSC

PDD have been revised accordingly to version 2. The latest

version can be found at

<http://cdm.unfccc.int/Reference/Documents>.

03 22 December

2006 The Board agreed to revise the CDM project design

document for small-scale activities (CDM-SSC-PDD), taking

into account CDM-PDD and CDM-NM.

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SECTION A. General description of small-scale project activity

A.1 Title of the small-scale project activity:

Title

CDM Project of Fuel Switch from Heavy Fuel Oil (HFO) to Liquefied Natural Gas (LNG) in DG Sets

Version

01

Dated

20/04/2012

A.2. Description of the small-scale project activity:

Background

Bhushan Steel Ltd. (BSL) Khopoli plant, commissioned in 2004 has been playing a remarkable role in

the growth of industrial steel production in India. The plant is also contributing majorly in the production

of a much wider variety of value added steel like Colour Coated Sheets, High Tensile Steel Strappings,

Hardened and Tempered Strips and Precision Tubes. Operating with the most advanced technology,

expressed through a large fleet of latest equipments, machinery and systems, the Khopoli plant has given

a tremendous boost of 425000 MT per annum to BSL's total production capacity including 240000 MT of

Galvanized steel, which are further forward integrated into Colour Coated Sheet, Galume and other value

added products. The production facility of the plant is partly powered by the captive electricity

generation plant comprising of DG sets of 2 numbers with individual capacity 12220 KW and partly

using electricity supplied through grid by the government electricity department. From its installation, the

assembly of the 2 DG Sets is using Heavy Fuel Oil (HFO) : High Speed Diesel (HSD) fuel mix for its

energy demand fulfilment.

Purpose of the Project Activity

The purpose of the project activity is to continue generating electricity, for the self industrial use, from

DG Sets, by switching from Heavy Fuel Oil (HFO) : High Speed Diesel (HSD), more carbon intensive

fuel mix, to Heavy Fuel Oil (HFO) : Liquefied Natural Gas (LNG) : High Speed Diesel (HSD), lesser

carbon intensive fuel mix, by replacing HFO partly with LNG, thereby reducing Green House Gas

(GHG) emissions.

How Project Activity reduces Greenhouse Gas Emissions

In the baseline scenario, HFO:HSD is used in DG sets as the fuel mix, with HSD as the warming up fuel

for the engine and HFO as the major fuel. In the project activity, HFO will be partly replaced with LNG,

with the help of retrofit arrangements to the existing DG sets installations, with total capacity of 24440

KW. LNG is lesser carbon intensive fuel than that of HFO, making fuel mix HFO:LNG:HSD lesser

carbon intensive fuel mix than that of the existing fuel mix of HFO:HSD. Thus, the GHG emissions will

be lesser in the project activity than that of the baseline scenario, thereby, the project activity resulting in

reduction of the GHG emissions.

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Contribution of the Project Activity to the Sustainable Development

Job Creation –

The project activity, as involving retrofitting to the existing installations, logistics of LNG, increased

execution, monitoring and management activities, provides job creation opportunities for the client,

technology supplier, contractor, LNG supplier, consultants etc.

Technology Development and Acceptance –

The retrofitting involves acceptance, development and promotion of LNG usage technology in existing

installations. This technology encourages to adopt or switch to lesser GHG emitting fuel mix i.e.

HFO:LNG:HSD than that of the common fuel mix HFO:HSD, resulting in shift towards lesser GHG

emitting technology in the industrial sector.

Social Sustainable Development –

Apart from local benefits of emission reductions and job creations, as the project activity encourages the

partly use of LNG, the road transport activities required for HFO supply will be reduced, there by

resulting in emission reductions due to HFO transportation, supply fleet management etc.

National Sustainable Development –

The project activity will reduce the fuel supply stress on the national oil supplying companies by

reducing the use of HFO, which will be a relief for the major oil importing country India. The project

activity will also reduce use of petroleum required for road transport of replaced HFO.

Sustainable Development Assessment –

The sustainable development assessment for the Project Activity has been done. Please refer Annexure 5

for the details.

A.3. Project participants:

Name of the Party Involved

Private and/or Public Project

Participant

Does the Party involved

wish to be considered as

Project Participant?

Government of India (Host

Country)

Private Entities :

Bhushan Steel Limited

No

A.4. Technical description of the small-scale project activity:

A.4.1. Location of the small-scale project activity:

A.4.1.1.Host Party(ies):

India

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

State : Maharashtra

A.4.1.3.City/Town/Community etc:

Area : Khopoli - Pen Road, Village : Sajagon, Taluka : Khalapur, District : Raigad

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

small-scale project activity :

18º 47‟57”N , 73º17‟36”E, Elevation : 61m

Power Plant (Mechanical) Division, Bhushan Steel Limited

Area : Khopoli - Pen Road, Village : Sajagon, Taluka : Khalapur, District : Raigad,

State : Maharashtra, PIN : 410203, Country : India.

Photo : Project Activity Location, Satellite Image, Courtesy Google Earth

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A.4.2. Type and category(ies) and technology/measure of the small-scale project activity:

The project is a small-scale CDM Project Activity. The project type, as defined in UNFCCC‟s Appendix

B of the simplified modalities and procedures for small-scale CDM project activities, is type „III.AH:

Energy Demand ; Shift from high carbon intensive fuel mix ratio to low carbon intensive fuel mix ratio‟.

The fossil fuel mix switch can be specified as „HFO:HSD to HFO:LNG:HSD‟.

Following Process Flow Mapping (PFM) diagram provides the operational and equipment setup details

of the Project Activity.

Figure : Project Activity Process Flow Map

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A.4.3 Estimated amount of emission reductions over the chosen crediting period:

The fixed crediting period is from April 1, 2012 to March 31, 2022, of total 10 years. The table below

presents anticipated GHG emission reductions during this period.

Table: Anticipated GHG emission reductions during the first crediting period.

Years Estimation of annual emission

reductions in tonnes of CO2 e

2012-13 7,489

2013-14 7,489

2014-15 7,489

2015-16 7,489

2016-17 7,489

2017-18 7,489

2018-19 7,489

2019-20 7,489

2020-21 7,489

2021-22 7,489

Total estimated reductions

(tonnes of CO2e) 74,890

Total number of crediting years 10

Annual average of the estimated

reductions over the crediting

period

7,489

A.4.4. Public funding of the small-scale project activity:

No Public Funding is involved in the Project Activity.

A.4.5. Confirmation that the small-scale project activity is not a debundled component of a large

scale project activity:

The small-scale project activity is not a debundled component of a large project activity.

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SECTION B. Application of a baseline and monitoring methodology

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

small-scale project activity:

The Project Activity uses the following approved small scale methodology,

Reference Methodology Title

AMS-III.AH - Ver 01 Shift from high carbon intensive fuel mix to low carbon intensive fuel mix

B.2 Justification of the choice of the project category:

Applicability conditions fulfilled by the project activity :

AMS-III.AH : Shift from high carbon intensive fuel mix to low carbon intensive fuel mix

1. This methodology comprises activities that result in increased share of low GHG intensive fossil

fuel in an element process of an industrial, residential, commercial, and institutional or

electricity generation application that uses a mix of fossil fuel.

It is clearly mentioned in the above referred paragraph 1 of the methodology that „fuel switch for

electricity generation‟ is inclusive in the applied methodology. The project activity, which will comprise

switching from HFO to LNG, partly, as a fuel in the DG Set applications, thus qualifies the criteria

mentioned in the paragraph 1 of the methodology.

2. This methodology is applicable for retrofit or replacement of existing installations.

The project activity includes only retrofit of the existing DG Sets installations to accommodate LNG in

the fuel mix. Thus, qualifies the criteria mentioned in the paragraph 2 of the methodology.

3. Switching of fuel mix ratio may also result in energy efficiency improvements of the facility, thus

both the project activities with or without energy efficiency improvements are eligible under

this category.

Reduction of HFO and its replacement by LNG, improves the efficiencies of the engines of the project

activity, which comes under the under the applied methodology.

5. This methodology is not applicable to project activities that propose switch from fossil fuel use in

the baseline to renewable biomass, biofuel or renewable energy in the project scenario. This

methodology is not applicable to project activities utilising waste gas or energy.

As the fuel mix switch is from high carbon content fossil fuel to less carbon content fossil fuel, the

project activity fulfills the criteria mentioned in the paragraph 5 of the applied methodology.

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6. This category is applicable to project activities where it is possible to directly measure and

record the energy use (e.g., electricity or heat) and consumption (e.g., fossil fuel) within the

project boundary.

In the project activity it is possible to directly measure output i.e. electricity generated and fuel

consumption i.e. quantity of fuels used, thus the project activity qualifies the paragraph 6 mentioned in

the applied methodology.

7. Heat or electricity produced under the project activity shall be for on-site captive use and/or

export to other facilities included in the project boundary.

The output of the project activity i.e. electricity generated will be for the on-site captive use of the project

proponent‟s industrial facility only. Thus the project activity qualifies the paragraph 7 mentioned in the

applied methodology.

9. Measures are limited to those that result in emission reductions of less than or equal to 60 kt

CO2 equivalent annually.

The emission reductions are less than 60k tCO2 equivalent due to the project activity.

10. Regulations do not constrain the facility from using the energy sources cited in paragraph 1

before the fuel switch. Regulations do not require the use of low carbon energy source (e.g.,

natural gas or any other fuel) in the element processes.

No regulation constrains the facility from using the energy sources cited in the paragraph 1 before or

after the fuel switch. No regulation requires the use of low carbon energy source in the element

processes. Thus the project activity qualifies the paragraph 10 mentioned in the applied methodology.

11. The project activity does not result in integrated process change. The purpose is to exclude

measures that affect other characteristics of the process besides switch of energy sources e.g.

operational conditions, type of raw material processed, use of non-energy additives, change in

type or quality of products manufactured etc.

The project activity does not result in integrated process change, as mentioned in the paragraph 11 of the

applied methodology.

B.3. Description of the project boundary:

As defined by the used small-scale methodology: The project boundary is the physical, geographical site

where the switching of energy source takes place. It includes all installations, processes or equipment

affected by the switching.

Project boundary

LNG Retrofit System

DG Sets

Electricity Supply

Systems

Fuel Supply

System

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B.4. Description of baseline and its development:

The historical information (detailed records) on the use of fossil fuels (i.e. consumption of HFO, HSD)

and the plant output (i.e. electricity generated) in the baseline plant (i.e. DG Sets) from three years prior

to project implementation is used in the baseline calculations.

The emission baseline is the current emissions of the facility expressed as emissions per unit of output.

The baseline emissions are determined as follows:

ji

CO2,jjyjiBLy EFNCVFCBE,

,,, )( (1)

Where:

yBE Baseline emissions during year y (tCO2e)

yjiBLFC ,,, Amount of fuel j consumed by the element process i during the year y operating at

the baseline energy scenario (t)

jNCV Net calorific value of the fuel type j (KJ/t)

CO2,jEF CO2 emission factor of the fuel type j (tCO2/KJ)

The amount of each fuel type j consumed is calculated ex-post using the total estimated energy output of

the element process i during year y and the share of each energy source in the identified baseline

scenario:

jBLijBL

BLjiyPJi

yjiBLEffNCV

aEGFC

,,,

,,,,

,,,*

(2)

Where:

yPJiEG ,, Total estimated output (heat, electricity, etc) of the element process i during year y

(KJ)

BLjia ,, Share of fuel j in the total input energy of the element process i for the identified

baseline scenario (ratio)

jBLiEff ,, Conversion efficiency of the element process i when operating with fuel type j in

the baseline scenario, see below

jBLNCV , Net calorific value of the baseline fuel type j (KJ/t)

Efficiency of the baseline units are determined by adopting the following criteria provided by the applied

methodology :

(a) Highest measured operational efficiency over the full range of operating conditions of a

unit with similar specifications, using baseline fuel. The efficiency tests shall be

conducted following the guidance provided in relevant national / international standards;

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Project activity emissions consist of those related to use of fossil fuel in element processes i during the

crediting period.

ji

jCO2PJjPJyjiPJy EFNCVFCPE,

,,,,,, (3)

Where :

yPE Project emissions during the year y (tCO2e)

yjiPJFC ,,, Quantity of fuel type j combusted in element process i during the year y (t)

jPJNCV , Net calorific value of the fuel type j (KJ/t)

jCO2PJEF ,, CO2 emission factor of the fuel type j (tCO2/KJ)

No leakage calculation is required, as described in the applied methodology.

The emission reductions achieved by the project activity are calculated as the difference between the

baseline emissions and the project emissions.

yyy PEBEER (4)

Where:

yER Emission reductions in the year y (tCO2e)

For the emission factor ( jCOEF ,2 ) and the net calorific value ( jNCV ) of the fuels used, 2006 IPCC

Guidelines for National Greenhouse Gas Inventories are followed.

Date of completing the final draft of this baseline section (DD/MM/YYYY): 20/04/2012

Name of person/entity determining the baseline:

Prof. Imran Ibrahim Pathan

Chairman & CEO

Frenz Greenearth Technologies Pvt. Ltd.

Sahara, 2823, B ward, Plot No. 19,

Mahalaxminagar, Subhash Road, Kolhapur,

Maharashtra – 416012, India

Contact : [email protected]

Web : www.frenzgreenearth.com

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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 small-scale CDM project activity:

Additionality of the Project Activity

To prove the additionality of the project activity, ‘Combined tool to identity the baseline scenario and

demonstrate additionality’ (Version 02; EB 28) is used. The stepwise demonstration is given below.

STEP 0. Preliminary screening based on the starting date of the Project Activity

The starting date of the Project Activity, i.e. 12th June 2011, which does not fall before 1 January 2000.

The project completion date is expected to be 31st March 2012. After the completion of development the

project, the fixed crediting period, of 10 crediting years, will start from 1st April 2012, which is also after

the submission for registration of the project.

Evidence of consideration of CDM incentive for the project and CDM incentive usage

While making the decision about developing the Project Activity, the incentive from the CDM was

seriously considered by the project proponent Bhushan Steel Limited (BSL). The evidences regarding the

same can be traced out from the Board of Directors (BOD) resolution dated 7th May 2011 mentioning the

decision to develop DG Sets Fuel Switch CDM project. The resolution also reflect that, although it was

neither mandatory for BSL to develop such project, BSL is taking decision to develop such fuel switch

CDM project only due to the CDM incentive available for the project. The reference of CDM can even

be found in the Purchase Order released to the technology supplier. The form F-CDM-Prior consideration

was submitted to UNFCCC Secretariat and DNA on 25th November 2011 i.e. within 6 months of the

project start and respective submission acknowledgement from UNFCCC Secretariat was received on

25th November 2011 and from DNA, the submission acknowledgement was received on 30

th November

2011.

The CER revenues will be utilized for recovering the costs incurred for the equipment retrofit

establishments, its maintenance and continuous operations, making the project activity function

smoothly. Considering the unpredicted price rise of fuels in India from the past records, CER revenues

are must for sustainability and continuous operations of the project activity.

STEP 1. Identification of alternative scenarios

Sub-step 1a. Defining alternative scenarios to the proposed CDM Project Activity

Alternative No. Description

1 The proposed project activity undertaken without being registered as a CDM

project activity;

2 The continuation of the current situation, requiring any investment or expenses

to maintain the current situation;

3 Partly fuel switch project from HFO to High Speed Diesel (HSD);

4 Partly fuel switch project from HFO to Naphtha;

5 Partly fuel switch project from HFO to Heavy Viscous Fuel Oil (HVFO);

6 Replacing existing DG Sets with new DG Sets

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STEP 2. Barrier analysis

Sub-step 2a. Identifying barriers that would prevent the implementation of alternative scenarios

Barriers Checked : Investment Barrier

Technological Barrier

Regulatory Barrier

Equipment Design Barrier

Table: Barrier Analysis

Alternative 1 :

The Project Activity undertaken withought being registered as a CDM Project Activity

Barriers Identified : NIL

Alternative 2 :

The continuation of the current situation, requiring any investment or expenses to maintain the

current situation;

Barriers Identified : NIL

Alternative 3 :

Partly fuel switch project from HFO to HSD;

Barriers Identified : Equipment Design

The equipment specifications provided by the manufacturer of DG sets, specify the

characteristics of the fuels to be used for continuous operations. HSD quality available in India

do not qualify it to be used for long and continuous operations in the DG sets, as wear and tear of

the components increases due to the same. Thus, HSD available in India can be used as a priming

fuel to start and stop the equipment but it can not be used as the fuel for long and continuous

operations. This design aspect eliminates the Alternative 3.

Alternative 4 :

Partly fuel switch project from HFO to Naphtha;

Barriers Identified : Equipment Design

By nature Naphtha is an aromatic fuel and can be used in Gas Turbines only. As per design

consideration Naphtha can not be used in D.G. Sets, because limitations of its high pressure

reciprocated fuel pumps. Thus, equipment design prevents fuel switch from HFO to Naphtha,

eliminating the alternative 4.

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Alternative 5 :

Partly fuel switch project from HFO to Heavy Viscous Fuel Oil (HVFO);

Barriers Identified : Equipment Design

HVFO fuel requires high amount of pre-heating before using in the equipment i.e. DG Sets. But

the design guidelines provided by the manufacturer of the DG Sets, allows input fuel temperature

to be much lower than that of the HVFO temperature after pre-heating. Thus, equipment design

prevents fuel switch from HFO to HVFO, eliminating the alternative 5.

Alternative 5 :

Replacing existing DG Sets with new DG Sets;

Barriers Identified : Investment

The existing DG sets started its operations in 2004. New equipments will cost in multifold than

that of any retrofit to the existing DG sets. Replacing a well running machine which has been

installed just 7 years back with new one, is not technically or financially a right decision. Thus,

Investment Barrier eliminates the alternative 6.

Sub-step 2b. Eliminating alternative scenarios which are prevented by identified barriers

Table: Elimination of Alternatives on the basis of Barrier analysis

Scenario

Barriers identified

Selection /

Elimination

Alternative 1 :

The proposed project activity undertaken

without being registered as a CDM project

activity;

Nil

Selected for

Investment analysis

Alternative 2 :

The continuation of the current situation,

requiring any investment or expenses to

maintain the current situation;

Nil

Selected for

Investment analysis

Alternative 3 :

Fuel switch project from HFO to HSD;

Equipment Design

Eliminated

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Alternative 4 :

Fuel switch project from HFO to Naphtha;

Equipment Design

Eliminated

Alternative 5 :

Fuel switch project from HFO to Heavy

Viscous Fuel Oil (HVFO);

Equipment Design

Eliminated

Alternative 6 :

Replacing existing DG Sets with new DG sets

Investment

Eliminated

STEP 3. Investment analysis

Identified financial indicator : Net Present Value (NPV)

The NPV analysis has been done with a risk-adjusted discount rate and applicable inflation rate. As per

EB 62 Report, Annex 5, Appendix, Discounting Rate for the calculation is taken, which is the default

value for India for group 1 i.e. 11.75%. As per the same guidelines Inflation Rate Projection for 2011 is

taken as 6.5% from the IMF World Economic Outlook. Thus, the nominal discounting rate used for the

calculations is 18.25%.

Table : General data / assumptions for NPV calculations

Nominal Risk-adjusted Discount Rate [r] 18.25%

Exchange Rate : 1 EUR 65.2700 INR

Rate of CER

EUR 13.09

The result of the Investment Analysis with Net Present Value (NPV) as the financial indicator

shows that the NPV of Alternative 2 : „The continuation of the current situation, requiring any

investment or expenses to maintain the current situation‟; is more than that of the other alternative

selected for investment analysis.

The detailed calculations of Investment Analysis are submitted to DOE.

STEP 4. Sensitivity Analysis

The sensitivity of change in different parameters considered during Investment Analysis was checked.

The sensitivity analysis is conclusive and confirms the results of investment analysis i.e. The most

economical and financially attractive alternative scenario is Alternative 2 : „The continuation of the

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current situation, requiring any investment or expenses to maintain the current situation‟; thus, it is the

baseline scenario.

The detailed calculations of Sensitivity Analysis are submitted to DOE.

STEP 5. Common Practice Analysis

Geographical region applicable is the host country i.e. India. Number of similar output plants identified

and common practice analysis was conducted. It shows that F < 0.2 and Nall-Ndiff < 3. Thus, the project

activity is “not a common practice”.

STEP 6. Conclusions

The sensitivity analysis shows that alternative 2, remains always financially more attractive than other

shortlisted alternatives from barrier analysis, when each of the key parameters is changed by +/- 10%.

Therefore, alternative 2 i.e. „The continuation of the current situation, requiring any investment or

expenses to maintain the current situation‟ can be considered as a robust baseline. The common practice

analysis shows that the project activity is not a common practice in the applicable geographical area.

The authenticate letter has been received from the government regulative agency, supporting the

additionality and not common practice status of the project activity. The copy of the letter has been

submitted to DOE.

B.6. Emission reductions:

B.6.1. Explanation of methodological choices:

As per the requirement of the applied CDM SSC Methodology i.e. „AMS. III. AH - Shift from high

carbon intensive fuel mix to low carbon intensive fuel mix‟, the past records of the element

process, which will be retrofitted, for last 3 years are available. The records available include,

FC j,records Amount of fuel j (HFO and HSD) consumed by the element process during the

year y (t)

Q records Total past output (electricity) of the element process (KWh)

H records

Hours of operations of the DG Sets (h)

For the emission factor ( jCOEF ,2 ) and the net calorific value ( jNCV ) of the fuels (HFO, HSD and

LNG), help of 2006 IPCC Guidelines for National Greenhouse Gas Inventories is taken and the

respective values for the same are used in the calculations.

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Baseline Emissions :

Based on the above values, a i.e. Share of fuel (HFO, HSD) in the total input energy of the element

process for the identified baseline scenario (ratio) is calculated using Input Energy supplied.

Estimated Output (electricity) i.e. EG (MWh/y) is calculated based on the equipment capacity (MW/h)

specifications supplied by the manufacturer and estimated maximum number of Hours of Operations per

year (h/y).

Using Energy Balance method, Fuel (HFO, HSD) requirement FC (t) for the estimated output for the

baseline scenario is calculated.

Then, the Emission Reductions for the Baseline Scenario is calculated using the formula provided by the

applied methodology.

ji

CO2,jjyjiBLy EFNCVFCBE,

,,, )( (5)

Where:

yBE Baseline emissions during year y (tCO2e)

yjiBLFC ,,, Amount of fuel j consumed by the element process i during the year y operating at

the baseline energy scenario (t)

jNCV Net calorific value of the fuel type j (KJ/t)

The baseline Fuel Consumptions are calculated using the following equation suggested by the applied

methodology.

jBLijBL

BLjiydesigni

yjiBLEffNCV

aEGFC

,,,

,,,,

,,,*

Where:

ydesigniEG ,, Total estimated design output (electricity) of the element process i during year y

(kJ)

BLjia ,, Share of fuel j in the total input energy of the element process i for the identified

baseline scenario (ratio)

jBLiEff ,, Conversion efficiency of the element process i when operating with fuel type j in

the baseline scenario , see below

jBLNCV , Net calorific value of the baseline fuel type j (kJ/unit)

Efficiency of the baseline units are determined by adopting the following criteria :

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Highest measured operational efficiency over the full range of operating conditions of a unit with similar

specifications, using baseline fuel. The efficiency tests were conducted following the guidance provided

in relevant national / international standards;

Project Emission Calculations :

As estimated output and targeted replacement of HFO by LNG, in terms of energy input, is available, the

project activity fuel consumptions are calculated using the energy balance method. From this project

activity anticipated fuel consumptions, using the following equation, project activity emissions are

calculated.

ji

jCO2PJjPJyjiPJy EFNCVFCPE,

,,,,,, (6)

Where:

yPE Project emissions during the year y (t CO2e)

yjiPJFC ,,, Quantity of fuel type j combusted in element process i during the year y (t)

jPJNCV , Net calorific value of the fuel type j (kJ/t)

jCO2PJEF ,, CO2 emission factor of the fuel type j (tCO2/kJ)

Project Leakages :

No leakage calculation is required as described in the applied methodology.

Emission Reductions :

The emission reduction achieved by the project activity is calculated as the difference between the

baseline emissions and the project emissions.

yyy PEBEER (7)

Where:

yER Emission reductions in the year y (tCO2e)

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

Data / Parameter: Q DG1, records

Data unit: MWh/y

Description: Average Output (electricity) of DG1 per year

Source of data used: From the records of past 3 years of DG1

Value applied: 48133

Justification of the

choice of data or

description of

measurement methods

and procedures

actually applied :

As per the requirement of the applied methodology, records for past 3 years are

available and the value is determined electronically from the same.

Any comment: -

Data / Parameter: Q DG2, records

Data unit: MWh/y

Description: Average output (electricity) of DG2 per year

Source of data used: From the records of past 3 years of DG2

Value applied: 41494

Justification of the

choice of data or

description of

measurement methods

and procedures

actually applied :

As per the requirement of the applied methodology, records for past 3 years are

available and the value is determined electronically from the same.

Any comment: -

Data / Parameter: FC HFO, DG1,BSL, records

Data unit: t/y

Description: Average Quantity of HFO consumed in past per year in DG1 per year

Source of data used: From the records of past 3 years of the element process

Value applied: 10351

Justification of the

choice of data or

description of

measurement methods

and procedures

actually applied :

As per the requirement of the applied methodology, records for past 3 years are

available and the value is determined electronically from the same.

Any comment: -

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Data / Parameter: FC HFO, DG2, BSL, records

Data unit: t/y

Description: Average Quantity of HFO consumed in past per year in DG2 per year

Source of data used: From the records of past 3 years of the element process

Value applied: 10351

Justification of the

choice of data or

description of

measurement methods

and procedures

actually applied :

As per the requirement of the applied methodology, records for past 3 years are

available and the value is determined electronically from the same.

Any comment: -

Data / Parameter: FC HSD, DG1,BSL, records

Data unit: t/y

Description: Average Quantity of HSD consumed in past per year in DG1 per year

Source of data used: From the records of past 3 years of the element process

Value applied: 16

Justification of the

choice of data or

description of

measurement methods

and procedures

actually applied :

As per the requirement of the applied methodology, records for past 3 years are

available and the value is determined electronically from the same.

Any comment: -

Data / Parameter: FC HSD, DG2, BSL, records

Data unit: t/y

Description: Average Quantity of HSD consumed in past per year in DG2 per year

Source of data used: From the records of past 3 years of the element process

Value applied: 18

Justification of the

choice of data or

description of

measurement methods

and procedures

actually applied :

As per the requirement of the applied methodology, records for past 3 years are

available and the value is determined electronically from the same.

Any comment: -

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Data / Parameter: H DG1, records

Data unit: t/y

Description: Average Hours of Operation of DG1 in past per year

Source of data used: From the records of past 3 years of the element process

Value applied: 6582

Justification of the

choice of data or

description of

measurement methods

and procedures

actually applied :

As per the requirement of the applied methodology, records for past 3 years are

available and the value is determined electronically from the same.

Any comment: -

Data / Parameter: H DG2, records

Data unit: t/y

Description: Average Hours of Operation of DG2 in past per year

Source of data used: From the records of past 3 years of the element process

Value applied: 5519

Justification of the

choice of data or

description of

measurement methods

and procedures

actually applied :

As per the requirement of the applied methodology, records for past 3 years are

available and the value is determined electronically from the same.

Any comment: -

Data / Parameter: D HSD

Data unit: Kg/l

Description: Density of the fuel HSD

Source of data used: From the test report of the supplier

Value applied: 0.832

Justification of the

choice of data or

description of

measurement methods

and procedures

actually applied :

As per the guidelines provided by the applied methodology.

Any comment: -

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Data / Parameter: D LNG

Data unit: t/SCM

Description: Density of the fuel LNG

Source of data used: From the test report of the supplier

Value applied: 0.00076

Justification of the

choice of data or

description of

measurement methods

and procedures

actually applied :

As per the guidelines provided by the applied methodology.

Any comment: -

Data / Parameter: P

Data unit: %

Description: Targeted Percentage of HFO to be replaced by the LNG in terms of Energy

Capacity

Source of data used: Retrofit technology supplier‟s provided specifications / Purchase Order

Value applied: 35%

Justification of the

choice of data or

description of

measurement methods

and procedures

actually applied :

As per the guidelines provided by the applied methodology.

Any comment: -

Data / Parameter: EG DG1, design

Data unit: MW/h

Description: Design Output Capacity of DG1

Source of data used: Manufacturer‟s capacity specifications / Purchase Order

Value applied: 12.35

Justification of the

choice of data or

description of

measurement methods

and procedures

actually applied :

As per the guidelines provided by the applied methodology.

Any comment: -

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Data / Parameter: EG DG2, design

Data unit: MW/h

Description: Design Output Capacity of DG2

Source of data used: Manufacturer‟s capacity specifications / Purchase Order

Value applied: 12.35

Justification of the

choice of data or

description of

measurement methods

and procedures

actually applied :

As per the guidelines provided by the applied methodology.

Any comment: -

Data / Parameter: NCV HFO

Data unit: TJ/Gg

Description: Net Calorific Value of HFO

Source of data used: IPCC 2006 default value

Value applied: 40.4

Justification of the

choice of data or

description of

measurement methods

and procedures

actually applied :

As per the guidelines provided by the applied methodology.

Any comment: -

Data / Parameter: NCV HSD

Data unit: TJ/Gg

Description: Net Calorific Value of HSD

Source of data used: IPCC 2006 default value

Value applied: 43

Justification of the

choice of data or

description of

measurement methods

and procedures

actually applied :

As per the guidelines provided by the applied methodology.

Any comment: -

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Data / Parameter: NCV LNG

Data unit: TJ/Gg

Description: Net Calorific Value of HSD

Source of data used: IPCC 2006 default value

Value applied: 44.2

Justification of the

choice of data or

description of

measurement methods

and procedures

actually applied :

As per the guidelines provided by the applied methodology.

Any comment: -

Data / Parameter: EF CO2, HFO

Data unit: tCO2/TJ

Description: Emission Factor of HFO

Source of data used: IPCC 2006 default value

Value applied: 77.4

Justification of the

choice of data or

description of

measurement methods

and procedures

actually applied :

As per the guidelines provided by the applied methodology.

Any comment: -

Data / Parameter: EF CO2, HSD

Data unit: tCO2/TJ

Description: Emission Factor of HSD

Source of data used: IPCC 2006 default value

Value applied: 74.1

Justification of the

choice of data or

description of

measurement methods

and procedures

actually applied :

As per the guidelines provided by the applied methodology.

Any comment: -

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Data / Parameter: EF CO2, LNG

Data unit: tCO2/TJ

Description: Emission Factor of LNG

Source of data used: IPCC 2006 default value

Value applied: 64.2

Justification of the

choice of data or

description of

measurement methods

and procedures

actually applied :

As per the guidelines provided by the applied methodology.

Any comment: -

Data / Parameter: Eff

Data unit: %

Description: Highest Measured Operational Efficiency of a unit with similar specifications

as that of the Baseline Units

Source of data used: From the test reports of the efficiency tests conducted by the external agency

following the guidelines provided by the national standards.

Value applied: 40.38

Justification of the

choice of data or

description of

measurement methods

and procedures

actually applied :

As per the guidelines provided by the applied methodology.

Any comment: -

A separate document containing detailed ex-ante calculations for emission reductions, in details, is

submitted to DOE.

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

Table : Ex-ante Estimation of Emission Reduction for 1

st Crediting Period

Year

Estimation of

project activity

emissions

(tCO2 e)

Estimation of

baseline

emissions

(tCO2 e)

Estimation of

leakage

(tCO2 e)

Estimation of

overall emission

reductions

(tCO2 e)

2012 - 2013 115,222 122,711 0 7,489

2013 - 2014 115,222 122,711 0 7,489

2014 - 2015 115,222 122,711 0 7,489

2015 - 2016 115,222 122,711 0 7,489

2016 - 2017 115,222 122,711 0 7,489

2017 - 2018 115,222 122,711 0 7,489

2018 - 2019 115,222 122,711 0 7,489

2019 - 2020 115,222 122,711 0 7,489

2020 - 2021 115,222 122,711 0 7,489

2021 - 2022 115,222 122,711 0 7,489

Total

(tonnes of CO2e) 1,552,220 1,227,110 0 74,890

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

B.7.1 Data and parameters monitored:

Data / Parameter: EG DG1

Data unit: MWh/y

Description: Total monitored output (electricity) of DG1 per year

Source of data to be

used:

Monthly actual onsite monitored and recorded data of the electricity generation

will be used and parameter will be determined electronically.

Value of data To be determined based on monitoring.

Description of

measurement methods

and procedures to be

applied:

Monthly data recording method.

This parameter will be monitored and measured monthly to provide the

realistic number of monthly output in terms of electricity. From the same

annual value will be determined.

QA/QC procedures to

be applied:

The parameter will be included in the company‟s quality programme of

ISO:9001:2008.

Any comment: -

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Data / Parameter: EG DG2

Data unit: MWh/y

Description: Total monitored output (electricity) of DG2 per year

Source of data to be

used:

Monthly actual onsite monitored and recorded data of the electricity generation

will be used and parameter will be determined electronically.

Value of data To be determined based on monitoring.

Description of

measurement methods

and procedures to be

applied:

Monthly data recording method.

This parameter will be monitored and measured monthly to provide the

realistic number of monthly output in terms of electricity. From the same

annual value will be determined.

QA/QC procedures to

be applied:

The parameter will be included in the company‟s quality programme of

ISO:9001:2008.

Any comment: -

Data / Parameter: FC P, HFO, DG1

Data unit: t/y

Description: Annual consumption of HFO by DG1

Source of data to be

used:

Monthly actual onsite monitored and recorded data of the HFO consumption

will be used and parameter will be determined electronically.

Value of data To be determined based on monitoring.

Description of

measurement methods

and procedures to be

applied:

Monthly data recording method.

This parameter will be monitored and recorded monthly to provide the realistic

number of monthly consumption of HFO. From the same annual value will be

determined.

QA/QC procedures to

be applied:

The parameter will be included in the company‟s quality programme of

ISO:9001:2008.

Any comment: -

Data / Parameter: FC P, HFO, DG2

Data unit: t/y

Description: Annual consumption of HFO by DG2

Source of data to be

used:

Monthly actual onsite monitored and recorded data of the HFO consumption

will be used and parameter will be determined electronically.

Value of data To be determined based on monitoring.

Description of

measurement methods

and procedures to be

applied:

Monthly data recording method.

This parameter will be monitored and recorded monthly to provide the realistic

number of monthly consumption of HFO. From the same annual value will be

determined.

QA/QC procedures to

be applied:

The parameter will be included in the company‟s quality programme of

ISO:9001:2008.

Any comment: -

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Data / Parameter: FC P, HSD, DG1

Data unit: t/y

Description: Annual consumption of HSD by DG1

Source of data to be

used:

Monthly actual onsite monitored and recorded data of the HSD consumption

will be used and parameter will be determined electronically.

Value of data To be determined based on monitoring.

Description of

measurement methods

and procedures to be

applied:

Monthly data recording method.

This parameter will be monitored and recorded monthly to provide the realistic

number of monthly consumption of HSD. From the same annual value will be

determined.

QA/QC procedures to

be applied:

The parameter will be included in the company‟s quality programme of

ISO:9001:2008.

Any comment: -

Data / Parameter: FC P, HSD, DG2

Data unit: t/y

Description: Annual consumption of HSD by DG2

Source of data to be

used:

Monthly actual onsite monitored and recorded data of the HSD consumption

will be used and parameter will be determined electronically.

Value of data To be determined based on monitoring.

Description of

measurement methods

and procedures to be

applied:

Monthly data recording method.

This parameter will be monitored and recorded monthly to provide the realistic

number of monthly consumption of HSD. From the same annual value will be

determined.

QA/QC procedures to

be applied:

The parameter will be included in the company‟s quality programme of

ISO:9001:2008.

Any comment: -

Data / Parameter: FC P, LNG, DG1

Data unit: MMBTU

Description: Annual consumption of LNG by DG1

Source of data to be

used:

Monthly actual onsite monitored and recorded data of the LNG consumption

will be used and parameter will be determined electronically.

Value of data To be determined based on monitoring.

Description of

measurement methods

and procedures to be

applied:

Monthly data recording method.

This parameter will be monitored and recorded monthly to provide the realistic

number of monthly consumption of LNG. From the same annual value will be

determined.

QA/QC procedures to

be applied:

The parameter will be included in the company‟s quality programme of

ISO:9001:2008.

Any comment: -

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Data / Parameter: FC P, LNG, DG2

Data unit: MMBTU

Description: Annual consumption of LNG by DG2

Source of data to be

used:

Monthly actual onsite monitored and recorded data of the LNG consumption

will be used and parameter will be determined electronically.

Value of data To be determined based on monitoring.

Description of

measurement methods

and procedures to be

applied:

Monthly data recording method.

This parameter will be monitored and recorded monthly to provide the realistic

number of monthly consumption of LNG. From the same annual value will be

determined.

QA/QC procedures to

be applied:

The parameter will be included in the company‟s quality programme of

ISO:9001:2008.

Any comment: -

Data / Parameter: NCV HFO

Data unit: KJ/t

Description: Net calorific value of HFO

Source of data to be

used:

IPCC most recent and available guidelines

Value of data To be taken from the most recent guidelines of IPCC available at the time of

monitoring

Description of

measurement methods

and procedures to be

applied:

Annual review of IPCC guidelines available and recording the relevant data

annually.

QA/QC procedures to

be applied:

The parameter will be included in the company‟s quality programme of

ISO:9001:2008.

Any comment: -

Data / Parameter: NCV HSD

Data unit: KJ/t

Description: Net calorific value of HSD

Source of data to be

used:

IPCC most recent and available guidelines

Value of data To be taken from the most recent guidelines of IPCC available at the time of

monitoring

Description of

measurement methods

and procedures to be

applied:

Annual review of IPCC guidelines available and recording the relevant data

annually.

QA/QC procedures to

be applied:

The parameter will be included in the company‟s quality programme of

ISO:9001:2008.

Any comment: -

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Data / Parameter: NCV LNG

Data unit: KJ/t

Description: Net calorific value of LNG

Source of data to be

used:

IPCC most recent and available guidelines

Value of data To be taken from the most recent guidelines of IPCC available at the time of

monitoring

Description of

measurement methods

and procedures to be

applied:

Annual review of IPCC guidelines available and recording the relevant data

annually.

QA/QC procedures to

be applied:

The parameter will be included in the company‟s quality programme of

ISO:9001:2008.

Any comment: -

Data / Parameter: EF CO2, HFO

Data unit: tCO2/y

Description: Emission Factor of HFO

Source of data to be

used:

IPCC most recent and available guidelines

Value of data To be taken from the most recent guidelines of IPCC available at the time of

monitoring

Description of

measurement methods

and procedures to be

applied:

Annual review of IPCC guidelines available and recording the relevant data

annually.

QA/QC procedures to

be applied:

The parameter will be included in the company‟s quality programme of

ISO:9001:2008.

Any comment: -

Data / Parameter: EF CO2, HSD

Data unit: tCO2/y

Description: Emission Factor of HSD

Source of data to be

used:

IPCC most recent and available guidelines

Value of data To be taken from the most recent guidelines of IPCC available at the time of

monitoring

Description of

measurement methods

and procedures to be

applied:

-

QA/QC procedures to

be applied:

The parameter will be included in the company‟s quality programme of

ISO:9001:2008.

Any comment: -

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Data / Parameter: EF CO2, LNG

Data unit: tCO2/y

Description: Emission Factor of LNG

Source of data to be

used:

IPCC most recent and available guidelines

Value of data To be taken from the most recent guidelines of IPCC available at the time of

monitoring

Description of

measurement methods

and procedures to be

applied:

-

QA/QC procedures to

be applied:

The parameter will be included in the company‟s quality programme of

ISO:9001:2008.

Any comment: -

B.7.2 Description of the monitoring plan:

According to the SSC methodology used, the applied paragraphs of the methodology, for monitoring the

project under consideration, are,

22. Monitoring shall include the energy source input (FCPJ,i,j,y, NCVj), and output of the element

process i after the project activity has been implemented e.g., gas use and heat output by a district

heating plant, gas use and electricity generated by a generating unit.

25. The availability of all baseline fuels shall be monitored, periods of non availability or restricted

availability shall be recorded for the baseline adjustment in accordance with paragraph 13.

Monitoring Plan :

i. The Energy Source Input i.e. Quantity Consumed, NCV, EF needs to monitored. On monthly

basis, Quantity of fuels consumed will be recorded and annual consumption will be determined

from the same. EF & NCV values will be taken annually from the IPCC default values of the

most recent guidelines version available at the time of monitoring.

ii. To monitor the availability of fuels, on annual quarterly basis, a report on availability/shortage of

fuels will be prepared internally, after taking the inputs from the suppliers. If there are any

shortages observed, the baseline adjustment will be done in accordance with the paragraph 13 of

the applied methodology.

iii. To streamline the monitoring procedure and to make sure QA/QC standards will be followed

during monitoring and recording, all the monitoring parameters will be included in the project

proponent company‟s quality program of ISO 9001:2008.

iv. Point B.7.1. of this document provides the detailed description of the values which will be

monitored during the crediting period.

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B.8 Date of completion of the application of the baseline and monitoring methodology and the

name of the responsible person(s)/entity(ies)

20/04/2012

Prof. Imran Ibrahim Pathan

Chairman and CEO

Frenz Greenearth Technologies Pvt. Ltd.

Sahara, 2823, B ward, Plot No. 19,

Mahalaxminagar, Subhash Road, Kolhapur,

Maharashtra – 416012, India

Contact : [email protected]

Web : www.frenzgreenearth.com

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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:

12/06/2011 (Source : Date of the Pay Order issued to the Technology Supplier)

C.1.2. Expected operational lifetime of the project activity:

30 Years

C.2 Choice of the crediting period and related information:

C.2.1. Renewable crediting period

Not applicable

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:

Fixed, 10 years and 0 months

C.2.2.1.Starting date:

25/09/2012 or on the date of registration, whichever is later.

C.2.2.2.Length:

10y-0m

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SECTION D. Environmental impacts

D.1. If required by the host Party, documentation on the analysis of the environmental impacts

of the project activity:

No analysis of the environmental impacts of the Project Activity is required by India, which is the host

Party.

Furthermore, the stakeholder consultation concluded that the Project Activity does not result in

significant environmental or social impacts. Therefore, Environmental Impact Assessment for this

Project Activity is not required.

Though, the Sustainable Development Assessment has been conducted. Please refer Annexure 5 for the

details.

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:

The stakeholder consultation concluded that the Project Activity does not result in significant

environmental or social impacts. Therefore, Environmental Impact Assessment for this Project Activity is

not required.

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SECTION E. Stakeholders’ comments

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

Photo : Stake Holders Meeting

The Stakeholder Consultation process included following key elements,

List of Stakeholders Involved

- Representatives of the project proponent i.e. Bhushan Steel Ltd.

- Representatives of the Suppliers i.e. IOCL, BPCL, GAIL

- Representatives of the CDM Consultants i.e. Frenz Greenearth Technologies Pvt. Ltd.

- Representatives of the concerned Government Department i.e. Maharashtra Pollution Control

Board (MPCB)

- Representatives of the Technology Supplier i.e. APGI

- Representatives of the Village Governance i.e. Sarpanch

- Representatives of the Villagers nearby

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Intimation of the CDM Proposal

- The representatives of all the above categorised Stakeholders, were informed about the

intensions of Bhushan Steel Limited to register the Project Activity as CDM through letters in

the paper format or emails.

- The letters were delivered to them by hand or by courier and acknowledgements were taken.

Request for Feedback

- Along with the above mentioned letter or email, a Checklist on Environment and Social Impact

Assessment of the Project Activity were supplied to the Stakeholders, requesting them to fill the

same. Please refer Annexure 6, for the Checklist.

- The Stakeholders were also encouraged to provide their extra feedback about the Project Activity

apart from the checklist supplied.

- Stakeholders were given sufficient time to give their feedbacks.

Invitation for the Stakeholders Meeting

- In the letter mentioned above, stakeholders were requested to attain the Stakeholders Meeting on

12th January 2012, 3:00 PM.

Stakeholders Meeting

- The Stakeholders Meeting was held on 12th January 2012, 3:00 PM at the following address.

Training Center Conference Hall,

Bhushan Steel Limited

Khopoli - Pen Road, Sajagon,

Khalapur, Raigad,

Maharashtra, 410203, India.

Meeting Agenda and Discussions

- In the Stakeholders meeting information about the Project Activity was given to the

Stakeholders.

- The opportunities provided by the Kyoto Protocol, Emission Reductions, Carbon Credits and

CDM facility were conveyed to the Stakeholders.

- The feedbacks received from the Stakeholders were discussed.

- No negative comments were received from any Stakeholder.

E.2. Summary of the comments received:

No negative comments were received from any stakeholder.

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

No negative comments were received.

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Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY

Organization: Bhushan Steel Limited

Street/P.O.Box: Khopoli - Pen Road, Sajgoan, Khalapur, Raigad

Building: Power Plant Building

City: -

State/Region: Maharashtra

Postfix/ZIP: 410203

Country: India

Telephone: +91 2192 302000 Ext:- 2731 (Off)

FAX: + 91 2192 274294

E-Mail: [email protected]

[email protected]

[email protected]

URL: -

Represented by: Mr. G. K. Banerjee

Title: General Manager (Power Plant)

Salutation: Mr.

Last Name: Banerjee

Middle Name: K.

First Name: G.

Department: Power Plant Division

Mobile: +91 9975492518

Direct FAX: + 91 2192 274294

Direct tel: +91 2192 302000 Ext:- 2731 (Off)

Personal E-Mail: [email protected]

[email protected]

[email protected]

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Annex 2

INFORMATION REGARDING PUBLIC FUNDING

No public funding is involved in the Project Activity.

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Annex 3

BASELINE INFORMATION

Please refer „SECTION B. Application of a baseline and monitoring methodology‟ for the details.

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Annex 4

MONITORING INFORMATION

Please refer „SECTION B. Application of a baseline and monitoring methodology‟ for the details.

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Appendix 1

SUSTAINABLE DEVELOPMENT ASSESMENT1

In the following the Project Activity‟s performance is assessed against the indicators, using the following

scoring system:

-2: Major negative impacts, i.e. where there is significant damage to ecological, social and/or

economic systems that cannot be mitigated through preventive (not remedial) measures.

-1: Very minor negative impacts, i.e. where there is a measurable impact but not one that is

considered by stakeholders to mitigate against the implementation of the Project Activity or

cause significant damage to ecological, social and/or economic systems.

0: No, or negligible impacts, i.e. there is no impact or the impact is considered insignificant by

stakeholders.

+1: Minor positive impacts

+2: Major positive impacts

All changes are considered relative to the baseline situation (i.e. without the proposed project) as defined

in the project documents.

Box: Sustainable Development Indicators

Component

Indicators (Example)

Score

+2 to -2

Local/regional/global environment

Water quality and quantity

Air quality (emissions other than GHGs)

Other pollutants: (including, where relevant, toxicity,

radioactivity, POPs, stratospheric ozone layer depleting gases)

Soil condition (quality and quantity)

Biodiversity (species and habitat conservation)

Sub total

0

0

0

0

0

0

Social sustainability and development

Employment (including job quality, fulfillment of labour

standards)

Livelihood of the poor (including poverty alleviation,

distributional equity, and access to essential services)

Access to energy services

Human and institutional capacity (including empowerment,

education, involvement, gender)

Sub total

1

0

0

0

1

1 The Southsouthnorth Sustainable Development Appraisal and Ranking Matrix Tool

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Economic and technological development

Employment

Balance of payments (sustainability)

Technological self reliance (including project replicability, hard

currency liability, skills development, institutional capacity,

technology transfer)

Sub total

1

2

2

5

TOTAL

6

Table: Rationales for scores

Indicator

Score

Rationale for score

Water quality and quantity 0 No change compared to the baseline.

Air quality (emissions other

than GHGs)

0

No change compared to the baseline.

Other pollutants: (including,

where relevant, toxicity,

radioactivity, POPs,

stratospheric ozone layer

depleting gases)

0

No change compared to baseline.

Soil condition (quality and

quantity)

0

No change compared to the baseline.

Biodiversity (species and

habitat conservation)

0

No change compared to the baseline.

Employment (quality)

1

The Project Activity generates new jobs

for manufacturing, maintaining and

operating the retrofit systems. These jobs

need higher technical skills.

Livelihoods of the poor 0 (= total of sub-indicators)

Poverty alleviation

0

No change compared to baseline.

Contribution to equal

distribution and additional

opportunity for

disadvantaged sectors

0

No change compared to baseline.

Access to essential services 0 No change compared to baseline.

Access to energy services 0 No change compared to baseline.

Human and institutional

capacity

0

(= total of sub-indicators)

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Empowerment 0 No change compared to baseline.

Education/skills 0 No change compared to baseline.

Gender equality 0 No change compared to baseline.

Employment

1

The Project Activity has provided

employment directly to employees of the

project proponent and indirectly to

employees of the system manufacturer,

contractor, installer etc.

Sustainability of the balance

of payments

2

India and especially state of Maharashtra is

Energy Starving state with considerable

investment being made in energy

generation sector which results in part

outflow of funds from India. The Project

Activity reduces demand of petroleum

resulting into balance of outflow funds

from India.

Hard currency expenditures

on technology, replicability

and contribution to

technological self-reliance

2

The technology adopted is state of art and

unique in India for the specified element

process.

Conclusion

The Project Activity fulfils the requirements regarding sustainable development assessment:

- Each of the components has a sub-total score that is non-negative,

- The total score is positive.

- No indicator has a score of –2.

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Appendix 2

ENVIRONMENTAL AND SOCIAL IMPACTS CHECKLIST

The overall feedback by the stakeholders through the checklist is as follows,

Environmental Impacts

Yes / No / ? .

Briefly

describe

Is this likely to

result in a

significant effect?

Yes/No/? – Why?

1. Will construction, operation or

decommissioning of the Project use or affect

natural resources or ecosystems such as land,

water, forests, habitats, materials or, especially

any resources which are non-renewable or in

short supply?

No

No

2. Will the Project involve use, storage,

transport, handling, production or release of

substances or materials (including solid waste)

which could be harmful to the environment?

No

No

3. Will the Project release pollutants or any

hazardous, toxic or noxious substances to air?

No

No

4. Will the Project cause noise and vibration or

release of light, heat energy or electromagnetic

radiation?

No

No

5. Will the Project lead to risks of contamination

of land or water from releases of pollutants onto

the ground or into surface waters, groundwater,

coastal wasters or the sea?

No

No

6. Are there any areas on or around the location

which are protected under international or

national or local legislation for their ecological

value, which could be affected by the project?

No

No

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7. Are there any other areas on or around the

location, which are important or sensitive for

reasons of their ecology, e.g. wetlands,

watercourses or other water bodies, the coastal

zone, mountains, forests or woodlands, which

could be affected by the project?

No

No

8. Are there any areas on or around the location

which are used by protected, important or

sensitive species of fauna or flora e.g. for

breeding, nesting, foraging, resting, over

wintering, migration, which could be affected by

the project?

No

No

9. Are there any inland, coastal, marine or

underground waters on or around the location

which could be affected by the project?

No

No

10. Is the project location susceptible to

earthquakes, subsidence, landslides, erosion,

flooding or extreme or adverse climatic

conditions e.g. temperature inversions, fogs,

severe winds, which could cause the project to

present environmental problems?

No

No

Socioeconomic and Health Impacts

Yes / No / ? .

Briefly

describe

Is this likely to

result in a

significant effect?

Yes/No/? – Why?

11. Will the Project involve use, storage,

transport, handling, production or release of

substances or materials (including solid waste)

which could be harmful to human health or raise

concerns about actual or perceived risks to

human health?

No

No

12. Will the Project release pollutants or any

hazardous, toxic or noxious substances to air that

could adversely affect human health?

No

No

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13. Will the Project cause noise and vibration or

release of light, heat energy or electromagnetic

radiation that could adversely affect human

health?

No

No

14. Will the Project lead to risks of

contamination of land or water from releases of

pollutants onto the ground or into surface waters,

groundwater, coastal wasters or the sea that

could adversely affect human health?

No

No

15. Will there be any risk of accidents during

construction or operation of the Project which

could affect human health?

No

No

16. Will the Project result in social changes, for

example, in demography, traditional lifestyles,

employment?

Yes

No

17. Are there any areas on or around the location,

protected or not under international or national or

local legislation, which are important

for their landscape, historic, cultural or other

value, which could be affected by the project?

No

No

18. Are there any transport routes or facilities on

or around the location which are used by the

public for access to recreation or other facilities

and/or are susceptible to congestion, which could

be affected by the project?

No

No

19. Is the project in a location where it is likely

to be highly visible to many people?

No

No

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20. Are there existing or planned land uses on or

around the location e.g. homes, gardens, other

private property, industry, commerce, recreation,

public open space, community facilities,

agriculture, forestry, tourism, mining or

quarrying which could be affected by the

project?

No

No

21. Are there any areas on or around the location

which are densely populated or built-up, or

occupied by sensitive uses e.g. hospitals, schools,

places of worship, community facilities, which

could be affected by the project?

No

No

22. Are there any areas on or around the location

which contain important, high quality or scarce

resources e.g. groundwater, surface waters,

forestry, agriculture, fisheries, tourism and

minerals, which could be affected by the project?

No

No

23. Is the project location susceptible to

earthquakes, subsidence, landslides, erosion,

flooding or extreme or adverse climatic

conditions

e.g. temperature inversions, fogs, severe winds,

which could cause the project to present

socioeconomic problems?

No

No

- - - - -