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

CDM Executive Boardpage 1

CLEAN DEVELOPMENT MECHANISM

PROJECT DESIGN DOCUMENT FORM (CDM-PDD)

Version 03 - in effect as of: 28 July 2006

CONTENTS

A. General description of project activity

B. Application of a baseline and monitoring methodology

C. Duration of the project activity / crediting period

D. Environmental impacts

E. Stakeholders comments

Annexes

Annex 1: Contact information on participants in the project activity

Annex 2: Information regarding public funding

Annex 3: Baseline information

Annex 4: Monitoring plan

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SECTION A. General description of project activity

A.1 Title of the project activity:

40 MW Bagasse Co-generation Power Project of M/s Shree Ambika Sugars Limited (SASL) at Tamilnadu,

India

Version : 01

Date : 11th May 2007

A.2. Description of the project activity:

SASL, a public company, is a sister concern of Thiru Arooran (TA) Sugars. SASL, established in 1998,

has 2 sugar plants (namely Pennadam and Kottur) under its fold. SASL in December 2002 implemented a

cogeneration Project activity at its Pennadam unit and obtained ISO 14001:2004 certification for its

power plant at Pennadam in 2005. The cogeneration plant has been designed to utilize the bagasse from

the sugar plant and generate electricity. The surplus electricity is exported to the grid and replaces

equivalent electricity from emission intensive sources. The cogeneration plant is rated for a nominal

output of 40 MW and would operate for around 270 days a year exporting approximately 184.68 MillionUnits per annum to Tamil Nadu Electricity Board of the Southern Grid.

Past Scenario

Electricity was being produced by a bagasse fired low/medium pressure, less efficient cogeneration

power plant to meet the in house power and heat requirement.

Present scenario

The old plant has been decommissioned and the boilers of that plant have been dismantled and sold as

scrap to various private parties. A new bagasse cogeneration plant has been commissioned in December,

2002 and synchronized with grid in March, 2003.This plant uses the bagasse generated from the sugarplant during season (December to October) to produce electricity. Some amount of the electricity is used

for captive consumption (about 10 MW) and the surplus is exported to the grid. By investing to increase

steam efficiency and increase the efficiency of burning bagasse (more efficient high pressure boilers and

turbo generators), SASL generates surplus electrical energy and export the surplus electrical energy to

the TNEB Grid. The steam consumption during baseline and project scenario is same and it is of the

order of 465.7 kg steam per ton cane. However, the boiler and turbine efficiency has improved in the

present scenario. With the implementation of this project, SASL will be able to sell electricity (about 30

MW) to the Southern grid of India, avoiding the dispatch of corresponding amount of energy produced

by fossil-fueled thermal plants to that grid. By that, the initiative avoids CO 2 emissions, also contributing

to the regional and national sustainable development.

Project Activitys contribution to Sustainable Development:

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The sustainable development indicators stipulated by the Government of India (Host Country) in the

interim approval guidelines for CDM projects are as follows1:

Social well being

Economic well being

Environmental well being

The SASL Project activity assists in achieving the above components of sustainable development as

described below:

Environmental Sustainability:

Substituting electricity generated using conventional fuel and fed to the State Grid with biomass

based power.

Mitigating the emission of GHG (CO2) as biomass is a carbon neutral fuel Conserving coal and other non-renewable natural resource

Socio-economic Sustainability:

The project is in line with the policies of MNRE, India. It contributes its share towards achievement

of the 11th Plan target of 10,000 MW renewable energy by 2012 set by MNRE.

Compared to certain fossil fuel fired plants, the proposed project will not lead to an outflow of

foreign exchange capital, since most capital equipment is locally produced and the biomass waste

does not have to be imported. This is in accordance with Indias policy of self-reliance.

The plant is situated far from an urban centre, creating rural employment. Creation of employment

opportunities in rural areas has long been recognized as a major element of sustainable development

and to stem the large-scale migration from rural to urban areas. To this extent, the project directly

addresses a core national concern.

Bagasse cogeneration is a sustainable source of energy that brings not only advantages for mitigating

global warming, but also creates a sustainable competitive advantage for sugarcane cultivation.

Bagasse cogeneration is important for the energy strategy of the country. Cogeneration is an

alternative that allows postponing the installation and/or dispatch of electricity produced by fossil-

fuelled generation utilities. The sale of the Certified Emission Reductions (CERs) generated by the

project will boost the viability of bagasse cogeneration projects, helping to increase the production of

renewable energy and decrease dependency on fossil fuels.

Key data for the project:

1http://cdmindia.nic.in/host_approval_criteria.htm

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Power generation capacity 40 MW

Estimated Power generation per annum 246.24 Million units

Annual minimum in house demand 61.56 Million units

Annual minimum export to the grid system 184.68 Million units

Turbine Details TypeSteam

Pressure

Steam

Temperature

Gross Power

Generation

Existing

2 No. X 20.00 MW

Multi stage, Extraction

cum condensing turbine

84 ata 5100C

40 MW

Boiler Details Type Pressure Temperature Steam (TPH)

2 No. Bi-drum, Multi fuel fired,

Travel grate, Water tube

87 ata 5150C 100

A.3. Project participants:

>>

Name of Party involved

(host indicates a host Party)

Private and/or public

entity(ies) project

participants (as applicable)

Kindly indicate if the Party involved

wishes to be considered as project

participant

India (Host Country) M/s Shree Ambika Sugars

Limited (SASL)(Project Proponent)

No.

A.4. Technical description of the project activity:

A.4.1. Location of the project activity:

>>

The co-generation project of Shree Ambika Sugars Limited is located in Eraiyur Village, Pennadam,

Cuddalore district in Tamilnadu. The district is paddy and sugarcane bowl of the state. The plant is well

connected to various parts of the state by road/rail links. The plant is 250 km from Chennai, capital of

Tamil Nadu.

A.4.1.1. Host Party(ies):

>> India

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

>>

State: Tamilnadu, Country: India

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A.4.1.3. City/Town/Community etc:

>>

Village: Eraiyur, Pennadam, District: Cuddalore, State: Tamilnadu, Country: India

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

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

>>

The project is located in Eraiyur Village, Pennadam, Cuddalore district in Tamilnadu. The district is

paddy and sugarcane bowl of the state. The plant is well connected to various parts of the state by

road/rail links. The plant is 250 km from Chennai, capital of Tamil Nadu. Pennadam is located at 11.4 N

79.23 E. It has an average elevation of 54 metres (177 feet). As per 2001 India census, Pennadam had a

population of 17,142. Males constitute 51% of the population and females 49%. Pennadam has an

average literacy rate of 65%, higher than the national average of 59.5%: male literacy is 73%, and female

literacy is 56%. In Pennadam, 11% of the population is under 6 years of age.

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

>>

The project activity is an electricity generation project where aggregate electricity generation of the

project exceeds 15 MW. The project activity is a large scale potential CDM project related to grid-

Site at Village: Eraiyur, Pennadam,District: Cuddalore, State: Tamilnadu

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connected electricity generation from biomass residues2

in industrial facilities and thus fits the

consolidated baseline methodology ACM0006 - Consolidated methodology for generation from

biomass residues. Hence, the project activity may principally be categorized in Category 1- Energy

Industries (Renewable/Non-Renewable sources) as per the scope of the project activities enlisted in the

list of Sectoral scopes and approved baseline and monitoring methodologies on the UNFCCC website

for accreditation of Designated Operational Entities3

.

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

>>

The technology used involves the modified Rankine cycle method for the electricity generation. The

major equipment constituting the project activity are the high pressure boiler & steam driven turbo

generator (TG) set.

Bagasse from the sugar mill is fired in the multi-fuel boiler to generate steam (Coal will be used if and

when required in the absence of biomass). The boiler is rated to generate 100 TPH steam at an outlet

steam condition of 87 ata and 515

0

C. Two TG Sets of extraction cum condensing type with ratednominal electricity output of 20 MW each are installed. The steam generated in the high pressure boilers

is inlet to the TG sets at a pressure of 84 ata & 5100

C (Enthalpy of 816 Kcal/Kg) to generate electricity.

From TG sets, the major quantity of steam is extracted at 9 ata / 2700

C (15.5 TPH per Turbine at

Enthalpy of 713.5 Kcal/Kg) and at 3 ata / 1350

C (60.91TPH per Turbine at Enthalpy of 651.8 Kcal/Kg)

used in sugar manufacturing process and the rest is condensed. The steam consumption during baseline

and project scenario is the same - 465.7 kg steam per ton cane. The process steam supplied to sugar mill

is returned back as condensate to the power plant after utilizing the heat. The boiler & turbo generators

are fully automated to improve the operational efficiency.

The project activity consists of the following main units:

2 numbers of boilers

2 number of steam turbines

2 number of Electrical generator

Appropriate power evacuation system and the related instrumentation and controls

The technical specifications of the key units are as follows:

Present Boilers (2 numbers)

Make: ISGEC John Thompson

Type: Multi-fuel, travel grate, bi-drum, water tube boiler

Steam output: 100 tones per hour. 87 ata and 5150C

Present Steam turbine (2 numbers)

2 http://cdm.unfccc.int/methodologies/DB/AEXF9VXI2FOS2AXNKG3371B8QROLJF/view.html

3http://cdm.unfccc.int/DOE/scopes.html

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Make: BHEL

Type: Extraction cum condensing

Steam Pressure: 84 ata

Steam Temperature: 5100C

Rated Speed: 5650 rpm

Present Electrical generator (2 numbers)Make: BHEL

Type: Four pole induction generators

Speed: 1500 rpm

Frequency: 50 Hz

Power Factor: 0.8

Voltage (terminal): 11KV

The technology for the boilers and turbines is well established and available in India and the project

activity does not involve any transfer of technology.

Power Generation details:

Particulars Unit

Oct 2006-

Sept 2007

Operation Days No 270

Cane crushed MT 1600000

Boiler

Low pressure steamto rocess

CoolingWater

Biomass

AirExhaust

Condenser

CondensatePum

Pump

GeneratorTurbine

Waterpreheater

Blower

Medium pressure steam to process

Make-up water

Airpreheater

Steam

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Cane crushed/day MT 5926

Bagasse % cane % 30

Steam % cane % 42

Steam Generation per day

MT/hr 4429Power Generation @ 100% MW 40

Plant Load Factor % 95

Power Generation @ PLF MW 38

Power Generation Units/day 912000

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

>>

Year GHG abatement (t CO2eq)

2007-08 164237.76

2008-09 164237.762009-10 164237.76

2010-11 164237.76

2011-12 164237.76

2012-13 164237.76

2013-14 164237.76

2014-15 164237.76

2015-16 164237.76

2016-17 164237.76

Total Estimated reduction (tones of

CO2 e)

1642377.60

Total numbers of crediting years 10 Years

Annual average over the creditingperiod of estimated reduction

(Tonnes of CO2 e)

164237.76

A.4.5. public funding of the project activity:

>>

There is no public funding from any Annex I party for this project activity.

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SECTION B. Application of a baseline and monitoring methodology

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

project activity:

>>

Title: Consolidated methodology for generation from biomass residues

Reference: This is an UNFCCC consolidated baseline methodology ACM0006, version 05, Sectoral

scope 01, EB31, based on the following approved methodologies:

This consolidated methodology is based on elements from the following methodologies:

AM0004: Grid-connected Biomass Power-Generation that avoids uncontrolled burning of biomass

which is based on the A.T. Biopower Rice Husk Power Project in Thailand whose Baseline study,

Monitoring and Verification Plan and Project Design Document were prepared by Mitsubishi Securities;

AM0015: Bagasse-based cogeneration connected to an electricity grid which is based on the Vale do

Rosrio Bagasse Cogeneration project in Brazil, whose baseline study, monitoring and verification plan

and project design document were prepared by Econergy International Corporation;

NM0050: Ratchasima SPP Expansion Project in Thailand whose baseline study, monitoring and

verification plan and project design document were prepared by Agrinergy Limited;

NM0081: Trupn biomass cogeneration project in Chile whose baseline study, monitoring and

verification plan and project design document were prepared by Celulosa Arauco y Constitutcin S.A;

NM0098: Nobrecel Fossil-to-Biomass Fuel Switch Project in Brazil, whose baseline study,

monitoring and verification plan and project design document were prepared by Nobrecel S.A.Celulose e

Papel and Ecosecurities Ltd.

This methodology also refers to the latest approved version of ACM0002 (Consolidated baseline

methodology for grid-connected electricity generation from renewable sources), the latest approved version of

the Tool for the demonstration and assessment of additionality and the latest approved version of the Tool

to determine methane emissions avoided from dumping waste at a solid waste disposal site.

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

activity:

>>

Among the methodologies approved by UNFCCC for biomass based CDM project activities, ACM0006

has been chosen as most suitable to this project activity. The project activity meets the applicability

conditions of ACM0006, as demonstrated below.

The project activity is bagasse based renewable energy power project, which feeds surplus electricity(power) to the TNEB grid (comprising power generated through sources such as coal and gas based

thermal power, hydro power and renewable energy sources including small / micro hydro projects,

bagasse / biomass based cogeneration / power projects etc). The selected methodology available on the

UNFCCC web site is applicable to generation from biomass residues and is the most suitable approved

UNFCCC methodology available for the project activity.

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Further, the project activity meets the applicability criteria of ACM0006 as under:

No other biomass types than biomass residues4 are used in the project plant and these biomassresidues are the predominant fuel used in the project plant (some fossil fuels may be co-fired);

For projects that use biomass residues from a production process (e.g. production of sugar orwood panel boards), the implementation of the project shall not result in an increase of the

processing capacity of raw input (e.g. sugar, rice, logs, etc.) or in other substantial changes (e.g.

product change) in this process;

The biomass residues used by the project facility should not be stored for more than one year;

No significant energy quantities, except from transportation or mechanical treatment of thebiomass residues, are required to prepare the biomass residues for fuel combustion, i.e. projects

that process the biomass residues prior to combustion (e.g. esterification of waste oils) or that

treat waste that results from the preparation of the biomass residues (e.g. from drying the

biomass mechanically) under anaerobic conditions are not eligible under this methodology

The various sections of the project design document have been prepared by applying the methodology

ACM0006. The Baseline, Additionality, Monitoring, Calculation of Emission Reductions etc of the PDD

have been prepared as per the guidelines of ACM0006 and is detailed below:

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

>>

For the purpose of determining GHG emissions of the project activity, the following emission sources

are included in emission reduction analysis:

CO2 emissions from on-site fossil fuel and electricity consumption that is attributable to the

project activity. This includes fossil fuels co-fired in the project plant, fossil fuels used for on-

site transportation or fossil fuels or electricity used for the preparation of the biomass residues,

e.g., the operation of shredders or other equipment, as well as any other sources that are

attributable to the project activity; and

CO2 emissions from off-site transportation of biomass residues that are combusted in the project

plant.

For the purpose of determining the baseline, the following emission sources are included:

4Biomass residues are defined as biomass that is a by-product, residue or waste stream from agriculture,

forestry and related industries. This shall not include municipal waste or other wastes that contain

fossilized and/or non-biodegradable material (small fractions of inert inorganic material like soil or sands

may be included). Note that in case of solid biomass residue for all the calculations in this methodology,

quantity of biomass residue refers to the dry weight of biomass residue. (from ACM0006)

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CO2 emissions from fossil fuel fired power plants connected to the electricity system; and

CO2 emissions from fossil fuel based heat generation that is displaced through the projectactivity

Overview on emissions sources included in or excluded from the project boundarySource Gas Justification /

Explanation

CO2 Included Main emission sourceCH4 Excluded Excluded for simplification. This is conservative.

Grid electricitygeneration

N2O Excluded Excluded for simplification. This is conservative.CO2 Included Main emission sourceCH4 Excluded Excluded for simplification. This is conservative.Heat generationN2O Excluded Excluded for simplification. This is conservative.

CO2 Excluded

It is assumed that CO2 emissions from surplusbiomass residues do not lead to changes of carbonpools in the Land Use Land use Change andForestry (LULUCF).

CH4 Excluded Excluded for simplification. This is conservative.

Baseline

Uncontrolledburning or decay

of surplusbiomass residues

N2O Excluded

Excluded for simplification. This is conservative.Note also that emissions from natural decay ofbiomass are not included in GHG inventories asanthropogenic sources.

CO2 Included May be an important emission source

CH4 ExcludedExcluded for simplification. This emission sourceis assumed to be very small.

On-site fossilfuel and

electricityconsumption

due to theproject activity(stationary or

mobile)

N2O ExcludedExcluded for simplification. This emission sourceis assumed to be very small.

CO2

Included May be an important emission sourceCH4 Excluded

Excluded for simplification. This emission sourceis assumed to be very small.

Off-sitetransportation ofbiomass residues

N2O ExcludedExcluded for simplification. This emission sourceis assumed to be very small.

CO2 ExcludedIt is assumed that CO2emissions from surplusbiomass do not lead to changes of carbon pools inthe LULUCF sector.

CH4 Excluded Excluded for simplification.

Combustion ofbiomass residues

for electricityand / or heatgeneration N2O Excluded

Excluded for simplification. This emission sourceis assumed to be small.

CO2 ExcludedIt is assumed that CO2 emissions from surplusbiomass residues do not lead to changes of carbonpools in the LULUCF sector

CH4 ExcludedExcluded for simplification. Since biomass residuesare stored for not longer than one year, thisemission source is assumed to be small.

ProjectActivity

Storage ofbiomass residues

N2O ExcludedExcluded for simplification. This emissions sourceis assumed to be very small.

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

baseline scenario:

Determination of the suitable combination of Baseline and Project scenario:

The methodology ACM0006 is applicable to project activities falling under one of the 19 combinations

of project activities and baseline scenarios described in it. The scenario for energy efficiency

improvement is identified as most suitable to the project activity after examining the various baseline

and project scenarios. The guidelines specific to this scenario has been applied in this project design

document.

The most plausible baseline scenarios for the project activity have been separately determined regarding

the following Realistic and credible alternatives:

How power would be generated in the absence of the CDM project activity;

What would happen to the biomass residues in the absence of the project activity; and

In case of cogeneration projects: how the heat would be generated in the absence of the project

activity.

The steps 2 and 3 of the latest approved version (version 03) of the tool for the determination and

assessment of additionality have been applied to identify the baseline among all realistic and credible

alternatives.

As defined in the consolidated methodology ACM0006, the realistic & credible alternatives were

separately determined by considering the following criteria which also were aligned with the scenario 14:

(i) How power would be generated in the absence of the CDM project activity?

Option P4: The generation of power in the grid

Option P2: The continuation of power generation in an existing biomass residue fired power plant at the

project site, in the same configuration, without retrofitting and fired with the same type of biomass

residues as (co-)fired in the project activity

(ii) What would happen to the biomass in the absence of the project activity?

Option B1: The biomass residues are dumped or left to decay under mainly aerobic conditions. Thisapplies, for example, to dumping and decay of biomass residues on fields.

Option B4: The biomass residues are used for heat and/or electricity generation at the project site.

(iii) In case of cogeneration projects: how the heat would be generated in the absence of the project

activity?

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Option H5: The continuation of heat generation in an existing biomass residue fired cogeneration plant

at the project site, in the same configuration, without retrofitting and fired with the same type of biomass

residues as in the project activity

Since 2 types of biomass residues i.e bagasse and cane trash are used, baseline is established for both as

under

Combinations of project types and baseline scenarios applicable to this methodology

Baseline scenario

Biomass

Scenario Project

typePower

Bag

asse

Cane

Trash

Heat

(if

relevant)

Description of the situation

14Energy

efficiency

projects

P4

and P2B4 B4 H5

The project activity involves the improvement

of energy efficiency of an existing biomass

residue fired power plant by retrofit or

replacement of the existing biomass residue

fired power plant at a site where no other

power plants are operated. The retrofit or

replacement increases the power generation

capacity, while the thermal firing capacity is

maintained. In the absence of the project

activity, the existing power plant would

continue to operate without significant

changes. The same type and quantity of

biomass residues as in the project plant wouldin the absence of the project activity be used in

the existing plant. Consequently, the power

generated by the project plant would in the

absence of the project activity be generated (a)

in the same plant (without project

implementation) and since power generation

is larger due to the energy efficiency

improvements (b) partly in power plants in

the grid. In case of cogeneration plants, the

heat generated by the project plant would in

the absence of the project activity be generated

in the same plant. The efficiency of heat

generation is smaller or the same after the

implementation of the project activity.

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B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below

those that would have occurred in the absence of the registered CDM project activity (assessment

and demonstration of additionality) : >>

The project activity is a project comprising grid connected electricity generation from biomass. It is a

renewable energy based power generation project with net zero CO 2 emissions (due to the carbon

sequestration by the sugar cane plants) and exports power to the southern regional grid. The power

generated from the project activity has displaced electricity that would otherwise have been generated by

the existing and new grid connected power plants, which have an average CO 2 emission factor of 0.86 t

CO2/MWh. The emission factor has been calculated as per the guidance of ACM0002.

As per the decision 17/cp.7 para43, a CDM project activity is additional if anthropogenic emissions of

greenhouse gases by sources are reduced below those that would have occurred in the absence of the

registered CDM project activity. As per the selected methodology ACM0006, the project proponent is

required to establish that the project activity is additional and therefore not the baseline scenario, for

which the Tool for the demonstration and assessment of additionality Version 3, EB 29 (see fig B1)

has been used. Additionality of project activity is discussed further in sections B.5.1 to B5.4.

As described in the methodology, the most plausible scenario will be identified among all the realistic &

credible alternatives by using the tool to determine and assess additionality (in conjunction with Fig. B1)

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(Fig B1: Flowchart summary of the Tool for demonstration of additionality of the project)

B.5.1:

Step 1 Identifications of alternatives to the project activity consistent with the current laws and

regulations

The sub steps include:

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A. Sub-step 1a. Define alternatives to the project activity

B. Sub-step 1b. Enforcement of applicable laws and regulations:

In sub Step 1a & 1b, SASL is required to identify realistic & credible alternatives that were available to

SASL or similar project developers that provide output or services comparable with the project activity.

These alternatives are required to be in compliance with all applicable legal & regulatory requirements.

SASL identified the different potential alternatives to project activity available to all other sugar

manufacturing units in India.

As defined in the consolidated methodology ACM0006, the realistic & credible alternatives were

separately determined by considering the following criteria which also were aligned with the scenario 14:

Power generation: How power would have been generated in the absence of the project activity?

Alternatives available for power generation:

1. Option P1: The proposed activity not undertaken as a CDM project activity.

SASL had the option of continuing to operate its low pressure cogeneration system as against the 87 ata

boiler being used now. Besides this, 87 ata would incur a high capital outlay. At the time of

implementation of the project activity, only one other such cogeneration plant of equivalent temperature

and pressure configuration was available in the country. In the absence of sufficient expertise and

successful high pressure projects, it is very likely that SASL would not have opted for implementation of

the high pressure system without the CDM incentive. There are no legal and regulatory requirements for

the implementation of high pressure system.

2. Option P2: The continuation of power generation in an existing biomass residue fired power plant at

the project site, in the same configuration, without retrofitting and fired with the same type of

biomass residues as (co-)fired in the project activity

In this scenario, the project proponent would use a lower energy efficient cogeneration plant compared to

the project activity, which would result in consumption of more bagasse in order to generate equivalent

steam and power for in-house utilization or captive consumption only. Though this alternative does not

entail surplus power generation and export to an electricity grid, it is in compliance with all applicable

legal and regulatory requirements and could be the baseline.

In India, all the sugar mills have their own cogeneration units to cater to the in house steam and power

requirements. This scenario is considered as Business As Usual case for the Indian sugar industry,

where in, bagasse is used in boilers to meet the internal heat energy requirements of sugar mills. Prior to

the 40 MW cogeneration plant, there were 4 boilers of 1 * 35 (14 ata, 265 deg C), 2 * 40 (14 ata, 265 deg

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C) and 1 * 70 (32 ata, 380 deg C) capacity. It is easier for sugar mills to opt for low efficiency

cogeneration plants considering that they are less capital intensive.

3. Option P4: The generation of power in the grid

The existing generation mix of the Southern Regional grid is comprised mainly of fossil fuel fired power

plants5. Therefore in the Business as Usual scenario, the gird is likely to remain as a GHG emission

intensive power source. It is in compliance with all applicable legal and regulatory requirements and

could be the baseline.

Heat (steam) generation: How heat would be generated in the absence of the project activity?

Alternatives available for heat generation:

1. Option H1: The proposed project activity not undertaken as a CDM project activity.

SASL had the option of continuing to operate its low pressure cogeneration system as against the 87 ata

boiler being used now. Besides this, 87ata would incur a high capital outlay. At the time of

implementation of the project activity, only one other such cogeneration plant of equivalent temperature

and pressure configuration was available in the country. In the absence of sufficient expertise and

successful high pressure projects, it is very likely that SASL would not have opted for implementation of

the high pressure system without the CDM incentive. There are no legal and regulatory requirements for

the implementation of high pressure system.

2. Option H5: The continuation of heat generation in an existing biomass residue fired cogeneration

plant at the project site, in the same configuration, without retrofitting and fired with the same type of

biomass residues as in the project activity

Prior to implementation of the project activity, the process heat requirement of the sugar factory was

being met by the old low pressure cogeneration system. In absence of the project activity, the low

pressure cogeneration system would have continued to operate. There is no policy or regulation

enforcing the replacement of the low pressure boiler by the high pressure boiler. SASL could have

continued the heat generation in the low pressure system.

Biomass: What would happen to the biomass in the absence of the project activity?

Alternatives available for biomass:

I. For bagasseII. For cane trash

5 http://www.cea.nic.in/about_us/Annual%20Report/annex11b.pdf

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For bagasse

1. Option B1: The biomass residues are dumped or left to decay under mainly aerobic conditions. This

applies, for example, to dumping and decay of biomass residues on fields.

Prior to the implementation of the project activity, the bagasse generated in-house was used in the low

pressure cogeneration system and surplus was being sold in the local market as cattle feed. Since the low

pressure systems are less efficient, the remaining bagasse would have been utilized for meeting the

captive energy requirements. This would have been continued till the low pressure system was replaced

at the end of its lifetime. Therefore BI is not the likely alternative in the absence of the project activity.

2. Option B4: The biomass residues are used for heat and/or electricity generation at the project site.

In the absence of the project activity, bagasse would have been used to generate heat and power at the

project site by the old low efficient boiler and turbine configuration. In this scenario, the project

proponent would use a lower energy efficient cogeneration plant compared to the project activity, which

would result in consumption of more bagasse in order to generate equivalent steam and power for in-

house utilization or captive consumption only. Though this alternative does not entail surplus power

generation and export to an electricity grid, it is in compliance with all applicable legal and regulatory

requirements and could be the baseline.



where in, bagasse is used in boilers to meet the internal heat energy requirements of sugar mills. Prior to

the 40 MW cogeneration plant, there were 4 boilers of 1 * 35 (14 ata, 265 deg C), 2 * 40 (14 ata, 265 deg

C) and 1 * 70 (32 ata, 380 deg C) capacity. It is easier for sugar mills to opt for low efficiency

cogeneration plants considering that they are less capital intensive.

For cane trash

1. Option B1: The biomass residues are dumped or left to decay under mainly aerobic conditions.

This applies, for example, to dumping and decay of biomass residues on fields.

Prior to the implementation of the project activity, the cane trash generated during harvesting of

sugarcane was used in the low pressure cogeneration system and surplus was being sold in the local

market as cattle feed. Since the low pressure systems are less efficient, the remaining cane trash would

have been utilized for contributing towards meeting the captive energy requirements. This would have

been continued till the low pressure system was replaced at the end of its lifetime. Therefore BI is not the

likely alternative in the absence of the project activity.

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2. Option B4: The biomass residues are used for heat and/or electricity generation at the project site.

In the absence of the project activity, cane trash would have been used to generate heat and power at the

project site by the old low efficient boiler and turbine configuration. In this scenario, the project

proponent would use a lower energy efficient cogeneration plant compared to the project activity, which

would result in consumption of more cane trash in order to generate equivalent steam and power for in-

house utilization or captive consumption only. Though this alternative does not entail surplus power

generation and export to an electricity grid, it is in compliance with all applicable legal and regulatory

requirements and could be the baseline.



where in, cane trash is used in boilers as a supplement to meet the internal heat energy requirements of

sugar mills. Prior to the 40 MW cogeneration plant, there were 4 boilers of 1 * 35 (14 ata, 265 deg C), 2* 40 (14 ata, 265 deg C) and 1 * 70 (32 ata, 380 deg C) capacity. It is easier for sugar mills to opt for low

efficiency cogeneration plants considering that they are less capital intensive.

Summary on alternatives

The analysis of the credible alternatives to the project activity identifies the following as the most likely

baseline scenarios:

A combination of the following:

For Power generation: Options P4 & P2 The generation of power in the grid; and The

continuation of power generation in an existing biomass residue fired power plant at the projectsite, in the same configuration, without retrofitting and fired with the same type of biomass

residues as (co-)fired in the project activity

For heat generation: Option H5: The continuation of heat generation in an existing biomass

residue fired cogeneration plant at the project site, in the same configuration, without retrofitting

and fired with the same type of biomass residues as in the project activity

For biomass: B4: The biomass residues are used for heat and/or electricity generation at the

project site

The next step for additionality justification as per Fig. B1 is either -

1- Step 2 Investment Analysis2- Step 3 Barrier Analysis

SASL proceeds to establish project additionality by conducting Barrier Analysis as under.

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B.5.2 Step 3: Barrier Analysis:

SASL is required to determine whether the project activity faces barriers that:

(a) Prevent the implementation of this type of proposed project activity; and(b) Do not prevent the implementation of at least one of the alternatives.

The above study has been done by means of the following sub steps:

Sub-step 3a: Identify barriers that would prevent the implementation of type of the proposed project

activity:

As per the report by the Ministry of Non-Conventional Energy Sources (MNES), Government of India,

the potential for bagasse based cogeneration in the major sugar producing states in India is estimated as

3500 MW6, however the potential is utilized by commissioning cogeneration projects and exporting

electrical energy to grid, around 348.23 MW i.e. 9.95% of total cogeneration potential (46 Nos. of

Projects)

7

. The potential for bagasse based cogeneration in Tamil Nadu (TN) State is estimated as 350MW

8, however the potential is utilized by commissioning cogeneration projects and exporting electricity

power to grid, around 146 MW i.e. 44.72 % of total cogeneration potential (15 Nos. of Projects)9.

There are several barriers due to which the above potential is not being harnessed (only 9.95 % all over

India). The project activity had its associated barriers to successful implementation, which have been

overcome by SASL to bring about additional green house gas reduction. Further, the project is additional

as it overcomes the barriers discussed further in this section:

(I) Barriers due to prevailing practice - The project activity was the first of its kind

The Indian sugar manufactures have been utilizing their bagasse to produce heat & electrical energy in aninefficient manner by using low/medium pressure boiler (with low electrical & thermal energy

efficiency) to generate steam; expand it in extraction cum condensing turbine generator and the total

generated electricity is for in house consumption. However, the project activity has adopted a high

pressure co-generation technology (87 ata and 5150

C), which is the one of first of its kind in the Tamil

Nadu State & in India also (During its implementation)10

.

(II) Technological Barriers

6http://mnes.nic.in/business%20oppertunity/pgtbp.htm



9Source:http://mnes.nic.in/bmp11pot.htm

10Source: Cane Cogen India Volume -6

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The typical alternative to the project is to continue meeting the captive power requirements by the

existing inefficient medium pressure cogeneration configuration. The project activity has adopted a high

pressure co-generation technology (87 ata and 5150

C) and still this technology of high pressure &

temperature (Super heated steam) configuration is less penetrated in the Indian sugar sector. The project

activity uses a technology, which has low market share and lesser penetration. Low penetrated

technology is related to efficiency of major equipments, trouble free plant operation, availability of

spares, availability of skilled manpower to operate the plant continuously etc. SASL is one of the first

few proponents in Tamil Nadu and host country India, to take up the risk in overcoming the technology

barrier by adopting the 87 ata, 5150

C boilers & double extraction cum condensing turbine. Success of

the CDM project will provide a trigger for replication in the other sugar mills thus further reducing the

GHG emission to the atmosphere.

There is also a lack of skilled labour to operate the high pressure cogeneration technology.

(III) Investment BarriersIt is costly to implement high pressure configuration cogeneration projects as compared to conventional

low pressure or medium pressure cogeneration plants and thats the reason why most of the sugar

plants in the state as well as the country use low to medium pressure configuration.

Most Sugar Companies do not have the creditworthiness to obtain private sector financing for investing

in high efficiency cogeneration technology due to cyclical nature of the sugar industry and consequent

fluctuation in fortunes. Besides, to protect sugarcane farmers interests, minimum sugar cane price based

on the quality of the sugar cane is prescribed statutorily. Due to such interplay of complex forces,

generation/sourcing of sufficient funds to finance capital intensive projects, such as the sugar

cogeneration project are a difficult proposition and prove as an important barrier.

(IV) Other Barriers

Another significant barrier is the climatic factor prevailing in the area of the project activity. Unfavorable

climate may reduce bagasse availability and affect the profitable operation of the project activity. Severe

drought conditions have prevailed in Tamil Nadu, which resulted in substantial reduction in availability

of cane. Even in respect of the cane available, the age profile could be such that sustaining the crushing

and power generation at workable capacity is restrained even during season.

For their earnings, the co-generation projects in the state depend on payment from TN Electricity Board

against the sale of electricity to the grid. It is known that the financial condition of State Electricity

Boards in India is not very healthy and it is likely that, this can impact the cash flow to SASL. SASL had

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

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There is no legal binding on SASL to take up the project activity. The above tests & analysis suggests

that the project activity is additional & the anthropogenic emissions of GHG by sources will be reduced

below those that would have occurred in the absence of the registered CDM project activity.

Sub-step 3 b. Show that the identified barriers would not prevent the implementation of at least one ofthe alternatives (except the proposed project activity):

In the absence of the project activity, the power requirement would have been met from the existing

cogeneration power plant & the heat requirement by installing a low pressure boiler. The surplus bagasse

would have been unutilized or used for non-energy purpose. No additional investment would have been

required.

The low pressure technology is an established one in sugar industry and SASL has the necessary

expertise, skilled manpower and other resources to operate the plant without any risks associated with the

87ata system.

The existing cogeneration power plant was just meeting the captive requirements of steam and power and

no sale of electricity to the state grid was involved. Accordingly, Shree Ambika Sugars Limited was

insulated from the uncertainties associated with dealing with Tamil Nadu Electricity Board.

Hence, the barriers facing the project activity do not prevent the implementation of the alternative which

is usual in the sugar industry.

B.5.3. Step 4: Common Practice Analysis

SASL identifies and discusses the existing common practice through the following sub-steps:

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

In 2002, when SASL decided to implement the project activity, most sugar mills in Tamil Nadu were

using their entire bagasse in low pressure cogeneration to meet their captive energy requirements and did

not export to the grid. The common practice in this sector, under the prevailing socio-economic

environment, geographic conditions and technological background was the utilization of bagasse for low

pressure boilers for in-house consumption, which would have been the case with SASLs sugar plant.

However, the prospect of CDM revenue has encouraged SASL to install one of the first 87 ata high

pressure cogeneration system in the country.

In India:

Total numbers of sugar mills in India (Year 2003) : 453 Sugar Mills with cogeneration and export of power to grid : 46 Total potential available in existing sugar mills : 3500 MW Potential harnessed and export power to grid : 348.23 MW % Potential harnessed and export power to grid : 10%

In TamilNadu:

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Total numbers of sugar mills in TamilNadu (Year 2003) : 36 Sugar Mills with cogeneration and export of power to grid : 15 Total potential available in existing sugar mills : 350 MW Potential harnessed and export power to grid : 146 MW % Potential harnessed and export power to grid : 41.72 %

Sugar Mills with similar or better configuration as of SASL atthe time of implementations (Year 2003) in Tamilnadu or host

country India

: Not Available

The above table11

shows a very low/no penetration of technology in TN as well as in India at the time of

the project implementation.

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

The project activity has been implemented by SASL despite the various risks (described above Step 3)

associated with the project activity. Tariff policy changes, bagasse availability etc will result in lowered

returns to the project activity affecting its financial sustainability.

Registering the project activity as CDM project would allow SASL to make the project successful and

sustainable which would lead to banks lowering interest rates for similar activities to sugar industries

located in the state. This would act as a precursor for other industries to invest in cogeneration

technology with wheeling facility leading to further reduction in GHG emission reduction.

Successful implementation and running of the project activity on a sustainable basis requires continuous

investments in maintenance and technological upgradation. It also requires manpower training and skill

development on a regular basis. The project proponent could get the necessary funding from selling the

project related CERs. Apart from these, registration of the project under CDM would enhance thevisibility and would enable the government in appreciating the GHG emission reduction efforts of the

project proponent. This could lead to smoother transactions in future between the project proponent and

the utility. Further CDM fund will provide additional coverage to the risk due to failure of project

activity or shut down of plant and loss of production in SASL.

It is ascertained that the project activity would not have occurred in the absence of the CDM simply

because no sufficient financial, policy, or other incentives exist locally to foster its development in Tamil

Nadu/India and without the proposed carbon financing for the project, SASL would not have taken the

investment risks in order to implement the project activity. Therefore the project activity is additional.

Also, the impact of CDM registration is significant with respect to continuity of the project activity on asustainable basis.

11Source:http://mnes.nic.in/bmp11pot.htm

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B.6. Emission reductions:

B.6.1. Explanation of methodological choices:

>>

The emission reductions are mainly from the incremental energy generation using the same quantity of

biomass that would been combusted in the baseline scenario (low pressure cogeneration plant). The

incremental energy is exported to the grid and displaces equivalent CO2 emission from grid connected

power plants.

Project Emissions:

With reference to ACM0006, it is required to account CO2 emissions from the combustion of fossil fuels

used by the project activity (during unavailability of bagasse / drought / any other unforeseen

circumstances) and that used for transportation of biomass from other sites to the project activity. Such

emissions are calculated by using the below equations:

Emission Reductions

The project activity mainly reduces CO2

emissions through substitution of power and heat generationwith fossil fuels by energy generation with biomass residues. The emission reduction ERyby the project

activity during a given year y is the difference between the emission reductions through substitution of

electricity generation with fossil fuels (ERelectricity,y), the emission reductions through substitution of heat

generation with fossil fuels (ERheat,y), project emissions (PEy), emissions due to leakage (Ly) and, where

this emission source is included in the project boundary and relevant, baseline emissions due to the

natural decay or burning of anthropogenic sources of biomass residues (BEbiomass,y)as follows:

ERy = ERheat,y + ERelectricity,y + BEbiomass,y - PEy - Ly

where:

ERy= Emissions reductions of the project activity during the yeary (tCO2/yr)

ERelectricity,y= Emission reductions due to displacement of electricity during the yeary (tCO2/yr)

ERheat,y= Emission reductions due to displacement of heat during the yeary (tCO2/yr)BEbiomass,y = Baseline emissions due to natural decay or burning of anthropogenic sources of biomass

residues during the yeary (tCO2e/yr)

PEy = Project emissions during the yeary (tCO2/yr)

Ly= Leakage emissions during the yeary (tCO2/yr)

Project emissions

Project emissions include CO2 emissions from transportation of biomass residues to the project site

(PETy) and CO2 emissions from on-site consumption of fossil fuels due to the project activity (PEFFy).

CO2 emissions from consumption of electricity (PEEC,y) and, where this emission source is included in

the project boundary and relevant, CH4 emissions from the combustion of biomass residues

(PEbiomass,CH4,y):

PEy = PETy + PEFFy + PEEC,y + GWPCH4. PEbiomass,CH4,y

where:

PETy = CO2 emissions during the year y due to transport of the biomass residues to the project plant

(tCO2/yr)

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PEFFy= CO2 emissions during the year y due to fossil fuels co-fired by the generation facility or other

fossil fuel consumption at the project site that is attributable to the project activity (tCO2/yr)

PEEC,y = CO2 emissions during the year y due to electricity consumption at the project site that is

attributable to the project activity (tCO2/yr)

GWPCH4= Global Warming Potential for methane valid for the relevant commitment period

PEbiomass,CH4,y= CH4 emissions from the combustion of biomass residues during the yeary (tCH4/yr)

Carbon dioxide emissions from on-site consumption of fossil fuels (PEFFy)

CO2 emissions from combustion of respective fuels are calculated as follows for Scenario 14:

PEFFy = (FFproject plant,I,y+ FFproject site,i,y).NCVi.COEFi

where:

FFproject plant,i,y = Quantity of fossil fuel type i combusted in the biomass residue fired power plant during

the yeary (mass or volume unit per year)9

FFproject site,i,y = Quantity of fossil fuel type i combusted at the project site for other purposes that are

attributable to the project activity during the yeary (mass or volume unit per year)NCVi = Net calorific value of fossil fuel type i (GJ / mass or volume unit)

EFCO2,FF,i = CO2 emission factor for fossil fuel type i (tCO2/GJ)

CO2 emissions from electricity consumption (PEEC,y)

CO2 emissions from on-site electricity consumption (PEEC,y) are calculated by multiplying the electricity

consumption by an appropriate grid emission factor, as follows:

PEEC,y = ECPJ,y . EFgrid,y

where:

PEEC,y = CO2 emissions from on-site electricity consumption attributable to the project activity (tCO2/yr)

ECPJ,y = On-site electricity consumption attributable to the project activity during the yeary (MWh)EFgrid,y = CO2 emission factor for grid electricity during the yeary (tCO2/MWh)

Methane emissions from combustion of biomass residues (PEBiomass,CH4,y)

If this source has been included in the project boundary, emissions are calculated as follows:

PEbiomass,CH4,y = EFCH4,BF. BFk,y.NCVk

where:

BFk,y= Quantity of biomass residue type kcombusted in the project plant during the year y(tons of dry

matter or liter)

NCVk= Net calorific value of the biomass residue type k(GJ/ton of dry matter or GJ/liter)

EFCH4,BF= CH4 emission factor for the combustion of biomass residues in the project plant (tCH4/GJ)

Emission reductions due to displacement of electricity

Emission reductions due to the displacement of electricity are relevant for all scenarios and are

calculated by multiplying the net quantity of increased electricity generated with biomass residues as a

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result of the project activity (EGy)with the CO2 baseline emission factor for the electricity displaced due

to the project (EFelectricity,y)as follows:

ERelectricity,y = EFelectricity,y * EGy

where:ERelectricity,y= Emission reductions due to displacement of electricity during the yeary (tCO2/yr)

EGy= Net quantity of increased electricity generation as a result of the project activity (incremental to

baseline generation) during the yeary (MWh)

EFelectricity,y= CO2 emission factor for the electricity displaced due to the project activity during the yeary

(tCO2/MWh)

Step 1: Determination of EFelectricity,yThe determination of the emission factor for displacement of electricity EFelectricity,y depends on the

type of project activity and the baseline scenario identified and should be determined as follows:

For Scenario 14-

The project activity displaces electricity from other grid-connected sources (P4) or from less efficient

plants fired with the same type of biomass residue (P2). Apart from co-firing fossil fuels in the project

plant, where relevant, electricity is not generated with fossil fuels at the project site. The emission factor

for the displacement of electricity should correspond to the grid emission factor (EFelectricty,y = EFgrid,y) and

EFgrid,yshall be determined as follows:

If the power generation capacity of the project plant is of more than 15 MW, EFgrid,y should be calculated

as a combined margin (CM), following the guidance in the section Baselines in the Consolidated

baseline methodology for grid-connected electricity generation from renewable sources (ACM0002).

Step 2: Determination of EGy

The determination of EGydepends on the type of project activity and the baseline scenario identified and

should be determined as follows for the different scenarios:

Scenario 14

Where scenario 14 applies, EGyis determined based on the average net efficiency of electricity

generation in the project plant prior to project implementation el,pre projectand the average net efficiency of

electricity generation in the project plant after project implementation el,project plant,y, as follows:

Egy = EGprojectplant,y . (1- (el,pre project /el,project plant,y))

where:

EGy= Net quantity of increased electricity generation as a result of the project activity (incremental to

baseline generation) during the yeary (MWh)

EGprojectplant,y= Net quantity of electricity generated in the project plant during the yeary (MWh)

el,pre project = Average net efficiency of electricity generation in the project plant prior to project

implementation (MWhel/MWhbiomass)

el,project plant,y= Average net energy efficiency of electricity generation in the project plant

(MWhel/MWhbiomass)

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The average net energy efficiency of electricity in the project plant (el,project plant,y) should be calculated by

dividing the electricity generation during the year y by the sum of all fuels (biomass residue types kand

fossil fuel types i), expressed in energy units, as follows:

el,project plant,y = EG projectplant,y / (NCVk . BFk,y + NCVi .FFprojectplant,I,y)

where:

el,project plant,y = Average net energy efficiency of electricity generation in the project plant

EGproject plant,y = Net quantity of electricity generated in the project plant during the yeary (MWh)

BFk,y= Quantity of biomass residue type kcombusted in the project plant during the yeary (tons of dry

matter or liter)

NCVk= Net calorific value of the biomass residue type k(GJ/ton of dry matter or GJ/liter)

NCVi= Net calorific value of fossil fuel type i (GJ / mass or volume unit)

FFproject plant,i,y = Quantity of fossil fuel type i combusted in the biomass residue fired power plant during

the yeary (mass or volume unit per year)

Emission reductions or increases due to displacement of heat

In case of cogeneration plants, project participants shall determine the emission reductions or increases

due to displacement of heat (ERheat,y)The determination of ERheat,y depends on the type of project activity

and the most likely baseline scenario and should be determined as follows

Since, thermal efficiency in the project plant is larger or similar compared with the thermal efficiency of

the plant considered in baseline scenario thus ERheat,y = 0

Leakage

For scenario 14, the diversion of biomass residues to the project activity is already considered in the

calculation of baseline reductions. In this case, leakage effects do not need to be addressed.

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

Data / Parameter: NCVBf,yData unit: Kcal/kg

Description: Net Calorific value of fuel (biomass) used in the pre-project scenario

Source of data used: SASL datasheets

Value applied: 1847 Kcal/kg

Justification of the

choice of data or

description of

measurement methods

and procedures

actually applied :

NCV = GCV (51.5*H% + 5.72*TM%)12

Where,

GCV and NCV in Kcal/kg

H Hydrogen

TM Total moisture in bagasse

Any comment: NCV is derived from GCV which is followed as per TNERC (Ref TNERCorder no 3 dated 15-5-2006-page 81 -Fuel cost)

Average GCV is 2300 Kcal/kg. Average Hydrogen is 3.25% and Average total

Moisture is 50%

12ASTM International data

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Data / Parameter: EF electricityData unit: t CO2/MWh

Description: Combined margin baseline emission factor of the southern regional grid

Source of data used: Central Electricity Authority (CEA)

Value applied: 0.86

Justification of thechoice of data or

description of

measurement methods

and procedures

actually applied :

As per ACM0002

Any comment: Refer Annexure 3

B.6.3 Ex-ante calculation of emission reductions:

B.6.3.1 Estimation of GHG emissions by sources:

SASLs project activity uses bagasse as the main fuel hence there is zero net GHG emissions. However,

fossil fuel may be co-fired and some emissions may be produced as a result.

The following tables show the calculation of emission reductions using the formula mentioned in section

B.6.1.

Project emissions:

Emissions due to combustion of fossil fuels in the project activity:

S.No Notation Parameter Unit Value

1 FF projectplant,y Quantity of coal

used

T/yr 7000

2 NCVi Calorific value Kcal/kg coal 4834

3 COEFi CO2 emission

factor (IPCC)

t CO2/TJ 96.1

4 PEFFy CO2 emissions

from coal

t CO2/yr 13608.9

Leakage:

For scenario 14, leakage is already considered in the baseline calculations and need not be separately

addressed.

Baseline emissions:

Determination of ERyS.No Notation Parameter Unit Value

1 EGy Net quantity of

increased

electricity

generation as a

result of the

MWh 206798.44

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project activity

(incremental to

baseline

generation) during

the yeary (MWh)

2 EF electricity,y Baseline emissionfactor of the grid

t CO2/MWh 0.86

3 ER electricity,y Emission

reductions due to

displacement of

electricity during

the yeary

(tCO2/yr)

t CO2/yr 177846.66

Emission reductions

S.No Notation Parameter Unit Value

4 ER electricity,y Emissionreductions due to

displacement of

electricity during

the yeary

(tCO2/yr)

tCO2/yr 177846.66

5 PEy Project emissions tCO2/yr 13608.9

6 Ly Leakage tCO2/yr 0

7 ERy (4-5-6) Emission

reductions

tCO2/yr 164237.76

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

>>

S.No Operating

years

Baseline

emission

factor EFy(tCO2/MWh)

Net

quantity of

increased

electricity

generation

as a result

of the

project

activity

(increment

al to

baselinegeneration)

during the

year y, EGy

(MWh)

Emission

reductions

due to

displaceme

nt of

electricity

during the

year y (ER

electricity,y)

Project

emissions (

tonnes of

CO2) PEy

Certified

Emission

Reductions

(tonnes of

CO2)

1 2007-08 0.86 206798.44 177846.66 13608.9 164237.76

2 2008-09 0.86 206798.44 177846.66 13608.9 164237.76

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3 2009-10 0.86 206798.44 177846.66 13608.9 164237.76

4 2010-11 0.86 206798.44 177846.66 13608.9 164237.76

5 2011-12 0.86 206798.44 177846.66 13608.9 164237.76

6 2012-13 0.86 206798.44 177846.66 13608.9 164237.76

7 2013-14 0.86 206798.44 177846.66 13608.9 164237.76

8 2014-15 0.86 206798.44 177846.66 13608.9 164237.769 2015-16 0.86 206798.44 177846.66 13608.9 164237.76

10 2016-17 0.86 206798.44 177846.66 13608.9 164237.76

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

B.7.1 Data and parameters monitored:

Data / Parameter: BFi,y

Data unit: tonsDescription: Quantity of Bagasse combusted in the project plant during the year

Source of data to be

used:

On-site measurements and data sheets of SASL

Value of data applied

for the purpose of

calculating expected

emission reductions in

section B.5

540000

Description of

measurement methods

and procedures to be

applied:

Using weight meters. The moisture content will be adjusted in order to

determine the quantity of dry bagasse. The quantity shall be crosschecked with

the quantity of electricity (and heat) generated and any fuel purchase receipts

(if available).

Monitoring frequency Continuously; annual energy balance will be prepared

QA/QC procedures to

be applied:

The measurements will be crosschecked with an annual energy balance that is

based on purchased quantities and stock changes

Any comment:

Data / Parameter: BFi,yData unit: tons

Description: Quantity of cane trash combusted in the project plant during the year


used:

On-site measurements and data sheets of SASL


for the purpose of



section B.5

A negligible amount as compared to bagasse.

Description of

measurement methods


Using weight meters. The moisture content will be adjusted in order to

determine the quantity of dry cane trash. The quantity shall be crosschecked

with the quantity of electricity (and heat) generated and any fuel purchase

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applied: receipts (if available).

Monitoring frequency Continuously; annual energy balance will be prepared

QA/QC procedures to

be applied:

The measurements will be crosschecked with an annual energy balance that is

based on purchased quantities and stock changes

Any comment:

Data / Parameter: Moisture content of bagasse

Data unit: % Water content

Description: Moisture content


used:

On-site measurements


for the purpose of



section B.5

Average 50 % of wet bagasse weight

Description of

measurement methods


applied:

As per ASTM International procedure

Monitoring frequency: Continuously, mean values calculated at least annually

QA/QC procedures to

be applied:

Self calibration of electronic weighment instrument.

Any comment: In case of dry biomass, monitoring of this parameter is not necessary.

Data / Parameter: Moisture content of cane trash

Data unit: % Water content

Description: Moisture content


used:

On-site measurements


for the purpose of



section B.5

Average 50 % of wet bagasse weight

Description of

measurement methods


applied:

As per ASTM International procedure

Monitoring frequency: Continuously, mean values calculated at least annually

QA/QC procedures tobe applied:

Self calibration of electronic weighment instrument.

Any comment: In case of dry biomass, monitoring of this parameter is not necessary.

Data / Parameter: FFproject plant,i,y

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Data unit: Tones

Description: Quantity of fossil fuel type i combusted in the biomass residue fired power plant

during the yeary


used:

Onsite measurements and SASL data sheets

Value of data appliedfor the purpose of



section B.5

7000

Description of

measurement methods


applied:

Weight meters will be used

Monitoring frequency: Continuously

QA/QC procedures to

be applied:

Measurements will be crosschecked with an annual energy balance that is based

on purchased quantities and stock changes

Any comment: This includes only fossil fuel co-fired in the plant

Data / Parameter: NCViData unit: Kcal/kg Coal

Description: Calorific value of fossil fuel


used:

IPCC default net calorific values


for the purpose of



section B.5

4834

Description of

measurement methods


applied:

Measurements shall be carried out at reputed laboratories and according to

relevant international standards.

Monitoring frequency: Continuously

QA/QC procedures to

be applied:

Consistency of measurements and local / national data will be checked with

default values provided by the IPCC. If the values differ significantly from IPCC

default values, additional information will be collected or measurements will be

conducted.

Any comment:

Data / Parameter: NCVBf,yData unit: Kcal/kg

Description: Net Calorific value of fuel (biomass) used in the pre-project scenario

Source of data used: SASL datasheets

Value applied: 1847 Kcal/kg

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Justification of the

choice of data or

description of

measurement methods

and procedures

actually applied :

NCV = GCV (51.5*H% + 5.72*TM%)13

Where,

GCV and NCV in Kcal/kg

H Hydrogen

TM Total moisture in bagasseAny comment: NCV is derived from GCV which is followed as per TNERC (Ref TNERC

order no 3 dated 15-5-2006-page 81 -Fuel cost)


Moisture is 50%

Data / Parameter: NCViData unit: Kcal/kg bagasse

Description: Net Calorific value of biomass residue


used:

Measurements


for the purpose ofcalculating expected


section B.5

1847 Kcal/kg

Description of

measurement methods


applied:

Measurements shall be carried out at reputed laboratories and according to

relevant international standards.

Monitoring frequency: Every 6 months, taking at least 3 samples for each measurement

QA/QC procedures to

be applied:

Consistency of measurements and local / national data will be checked with

default values provided by the IPCC. If the values differ significantly from IPCC

default values, additional information will be collected or measurements will be

conducted.

Any comment: NCV is derived from GCV which is followed as per TNERC (Ref TNERC

order no 3 dated 15-5-2006-page 81 -Fuel cost)


Moisture is 50%

Data / Parameter: EG projectplant,yData unit: MWh

Description: Net quantity of electricity generated in the project plant during the year y


used:

Onsite measurements and SASL data sheets

Value of data appliedfor the purpose of



section B.5

246240

13ASTM International data

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Description of

measurement methods


applied:

Measurement by SASL

Monitoring frequency Continuously

QA/QC procedures tobe applied:

The consistency of metered net electricity generation will be cross-checked withreceipts from sales (if available) and the quantity of biomass fired (e.g. check

whether the electricity generation divided by the quantity of biomass fired results

in a reasonable efficiency that is comparable to previous years)

Any comment:

B.7.2 Description of the monitoring plan:

>>

SASL will incorporate a special team for implementing the monitoring procedures as described in

sections B6.2 and B7.1. The team will comprise of relevant personnel from various departments, who

will be assigned the task of monitoring and recording specific CDM parameters relevant to their

department. The monitored values will be periodically cross-checked by the respective department headsand sent to the CDM team head for compilation and analysis. Any deviation of monitored values from

estimated values will be investigated and appropriate action would be taken. The monitored values would

be recorded and stored in paper and electronically for verification. Elaborate monitoring information is

provided in Annexure 4.

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

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

>>

Date of completion of baseline study 11th May 2007

Name of responsible person

Winrock International India

788, Udyog Vihar

Phase-5

Gurgaon- 122001

India

[email protected]

www.winrockindia.org

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SECTION C. Duration of the project activity / crediting period

C.1 Duration of the project activity:

C.1.1. Starting date of the project activity:

>>

December, 2002

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

>>

25 years

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

C.2.1. Renewable crediting period

C.2.1.1. Starting date of the first crediting period:

>>

Not applicable

C.2.1.2. Length of the first crediting period:

>> Not applicable

C.2.2. Fixed crediting period:

C.2.2.1. Starting date:

>>

1st October 2007

C.2.2.2. Length:

>>

10 years

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SECTION D. Environmental impacts

>>

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

impacts:

>>

The cogeneration plant uses environmentally sustainable grown bagasse as fuel, which leads to zero net

GHG emissions. The GHG emissions of the combustion process, mainly CO2will be consumed by the

sugar plant species, representing a cyclic process. Since the bagasse contains only negligible quantities of

other elements like Nitrogen, Sulphur etc. release of other GHG are negligible. The bagasse contains

close to 50% moisture and this will keep the temperatures at the steam generator furnaces low enough

not to produce nitrogen oxides. A detailed assessment of Environmental Impact due to the project

activity has been carried out and the report is available as Enclosure - 1

D.2. If environmental impacts are considered significant by the project participants or the host

Party, please provide conclusions and all references to support documentation of an environmental

impact assessment undertaken in accordance with the procedures as required by the host Party:>>

Host Party regulation requires SASL to obtain environmental clearance in the form of No Objection

Certificate from the Tamil Nadu Pollution Control Board (TNPCB). The other condition is that the site

of the project has to be approved from the environmental angle and that the Environmental Management

Plan (EMP) is to be prepared and submitted to TNPCB. The assessment of environmental impacts due to

project activity has been carried out to understand if there are any significant environmental impacts and

a management plan has been prepared to minimize adverse environmental impact. The study indicates

that the impact of the project activity is not significant.

The following documents were obtained from TNPCB for the project activity towards environmental

clearance:

Consent under Section 21 of the Air (Prevention and Control of Pollution) Act, 1981 (CentralAct 14 of 1981) as amended

Consent under Section 25/26 of the Water (Prevention and Control of Pollution) Act, 1974(Central Act 6 of 1974) as amended

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SECTION E. Stakeholders comments

>>

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

>>

SASL conducted stakeholder consultation at their site office on 23rd

Feb, 2007 with local stakeholders

considering the project as a CDM project. Details of the same are provided as Enclosure 2.

The stakeholders identified for the project are:

Local village population

Tamil Nadu Electricity Board (TNEB)

Tamil Nadu Pollution Control Board (TNPCB)

Consultants

Equipment manufacturers/suppliers

Cane growers association

Stakeholder list includes various Government and Non Governmental organizations that are involved in

the project activity at various stages. SASL communicated to the relevant stakeholders to provide their

comments on the project activity for which the stakeholders have responded with their comments. SASL

has received these comments and will produce them during validation. SASL has obtained the necessary

clearance from the government for setting up the project activity.

E.2. Summary of the comments received:

>>

Local Population

The following table shows the possible impacts the project activity could have on local population and

measures undertaken by SASL:

Possible impacts Preventive measures

Increase in air/Water/Noise pollution resulting in

degradation of health and local ecology

Appropriate Flue gas treatment systems, effluent

treatment systems and noise reduction systems have

been incorporated to ensure outlet noise/emissionsare below safe levels.

Improvement in direct employment as operating

and maintenance staff for the project activity

resulting in lesser labour migration from rural areas

Positive impact

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Improvement in the local grid power quality Positive impact

Thus, the project activity doesnt have any negative impacts on the local population. The panchayat has commended

the preventive measures adopted and welcomed the implementation of the project activity in their locality.

TNEB

As a buyer of the power, the TNEB is a major stakeholder in the project activity. They hold the key to

the commercial success of the project activity. TNEB has agreed to purchase power from the project

activity under the Non-conventional sources category and signed Power Purchase Agreement (PPA) with

SASL. The two parties have also signed an agreement for parallel operation and supply / purchase of

surplus power from SASL on 18th

August 2004. The potential threat for TNEB is the disturbance from

parallel operation leading to physical and operational damage of the grid. However, SASL has installed

the required isolation and safety equipment to prevent such disturbances. TNEB will draw power and

therefore pay under the Section 43 of the Electricity (Supply) Act, 1948. TNEB has commended the

project as a renewable source of power that helps it to reduce the demand supply gap in the state.

TNPCB

The TNPCB prescribes certain standards of environmental compliance for the stack emissions, stack

height and discharge of effluent from the cogeneration plant. These are elaborated in Section 21 of the

Air (Prevention and Control of Pollution) Act 1981 and Section 25/26 of the Water (Prevention and

Control of Pollution) Act 1974 (Central Act 6 of 1974). SASL has installed required treatment systems to

comply with these norms. The TNPCB has verified these systems and issued consent for operating the

plant.

Cane growers association

The association has given positive comments for the implementation of the project.

Equipment manufacturers and suppliers

The equipment vendors and suppliers involved in the erection & commissioning of the project activity

are aware of the potential risks involved in operating the project activity. They have provided their

comments on impacts of the project activity.

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

>>

The comments and important observations in the Detailed Project Document (DPR), environmental

clearances and local clearances were considered while preparing the PDD. No corrective action was

taken as no negative comments were received. The PDD will be published at the validators website for

public comments, as per UNFCCC guidelines.

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Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY

Organization:Shree Ambika Sugars Limited

Street/P.O.Box:112 Nungambakkam High Road

Building:Eldorado, 5

thfloor

City: Chennai

State/Region: Tamil Nadu

Postfix/ZIP: 600 034

Country: India

Telephone:

FAX:E-Mail:

URL:

Represented by:Chairman & Managing Director

Title: Mr.

Salutation:

Last Name:Ram V. Tyagarajan

Middle Name:

First Name:

Department:

Mobile:Direct FAX: 0091-44-28270470 (FAX)

Direct tel:0091-44-28276001 (Direct)

Personal E-Mail: [email protected]

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