4 MW Biomass Project Report

8/6/2019 4 MW Biomass Project Report

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PROJECT DESIGN DOCUMENT

4.0 MW INDUSTRIAL WASTE BASEDPOWER GENERATION PROJECT

VENSA BIOTEK LIMITEDSamalKot, Andhra Pradesh

Prepared by:

1, Navjeevan Vihar, Tel: 011 2669 3868New Delhi 110 017 Fax: 011 2669 3881

website: www.winrockindia.org


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4 .0 M W Indus t r ia l Was te Based Power Gene ra t ion Pro jec t o f V ensa B io tek L im i ted

CDM VENSA PDD (Version 02 8 July 2005) Page 2 of 56

CONTENTS

A. General Description of the small-scale Project Activity

B. Baseline Methodology

C. Duration of the Project Activity / Crediting Period

D. Monitoring Methodology and Plan

E. Calculation of GHG Emission Reductions by Sources

F. Environmental Impacts

G. Stakeholders Comments

Annexes

Annex 1: Information on participants in the project activity

Annex 2: Information regarding public funding

Annex 3: Base Line Data

Appendix A: References

Appendix: Abbreviations


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A. General Description of the small-scale Project Activity

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

4.0 MW biomass based power generation project at Vensa Biotek Limited.

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

Purpose of the Project:

The purpose of the Vensa Biotek Limited (VBL) power generation project is to utilise

industrial waste (biomass based) and other agricultural residue for generation of

electricity for in-house consumption and export surplus to the electricity grid. The project

activity indirectly helps in reducing the power deficit in the state of Andhra Pradesh,

reduces the grid systems dependency on fossil fuel resources (primarily coal and gas)

and reduces the emission of greenhouse gases (GHG). The project activity also

contributes to an economically, environmentally and socially sustainable development in

the region through the commercial operation of the power plant and thereby creating

sustainable stakeholder value.

Features of the Project:

The project involves the implementation of a biomass-based power generation plant

using direct combustion of fuels in a boiler for steam generation and expansion of thesame in an extraction cum condensing turbine. The installed capacity of the plant is 4.0

MW. The fuel used is primarily starch industry solid waste viz. tapioca tippi and agro-

biomass viz. rice husk, groundnut husk, saw dust and tapioca stem and biogas

(generated from bio-methanation plant for treating liquid effluents generated during

starch manufacturing). The generated electricity meets VBLs captive electricity

requirement and the surplus being sold to the state grid. The generated electricity

replaces a mixture of coal and gas-based power generation. The total amount of certified

emission reductions (CERs) to be delivered is expected to be 175,079 tCO2equivalent.

The implementation of the project also leads to additional income and employment in theregion (approximately 80,000 man days of work per year1).

Past Scenario:

The total power requirement of the starch and liquid glucose plant was being met by

APTRANSCo (Andhra Pradesh Power Transmission Corporation Limited) grid and total

process steam requirement of around 10 TPH at 10 kg/cm2 was being met by two

1Based on an estimate of at least 100,000 man-days per year for a 5 MW biomass based plant from the Indian Ministry of

Non-Conventional Energy (1999)



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numbers of low pressure Thermax design Water Tube boilers, which were fed with rice

husk. Diesel generator sets were being used as a standby provision for power.

Project Scenario:

The project activity, which is a carbon neutral fuel based cogeneration plant, generateselectricity in addition to steam to meet VBLs captive electricity requirements thereby

displacing an equivalent amount of electricity the plant would have drawn from the

APTRANSCo grid. Additionally, the surplus electricity is being exported to the grid and in

absence of the project same electricity would have been supplied through the power

generation mix of APTRANSCo. By feeding additional power to the grid, the project will

add to the reliability of power supply and stabilization of the voltage, which will create

business opportunities and help economic development in rural areas where the plant is

situated.

The CDM project is limited to the captive electricity consumption and the electricity

export to the electricity distribution grid, where the CO2-neutral electricity generation will

replace conventional electricity generation highly dependent on fossil fuel in the grid

system and thereby reducing GHG emission in the electricity grid system. The CDM

project also produces steam for the plant processes, but this part will not be part of the

CDM project as the steam generated by the new plant replaces the renewable steam

production that was taking place on an old rice husk (biomass) fired boiler.

Key data for the project:

Power generation capacity 4.00 MW

In house power demand 1.55 MW

Annual minimum in house demand 9,112 MWh

Scheduled export to the grid 2.45 MW

Annual minimum export to the grid system 19,400 MWh

Tapioca Tippi (in-house

/ by supplier)19,800 MT

Rice Husk (by supplier) 13,200 MTTapioca stems /

Groundnut Husk / Saw

dust (by supplier)

10,500 MT

Annual consumption of biomass

Total 43,500 MT

Annual consumption of biogas Biogas (in-house)2.9 million

NM3



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Turbine Details TypeSteam

Pressure

Steam

Temperature

Gross

Power

Generation

1 No. X 4.00 MW Multi stage, Extraction

cum condensing turbine

65 kg/cm2 4850 C 4000 kW

Boiler Details Type Pressure TemperatureSteam

(TPH)

1 No. high

efficiency boiler

Bi-drum, Multi fuel fired,

Travel grate, Water tube

65 kg/cm2 4850 C 28 TPH

Chronological Description of the Projects Background:

In January 2001, VBL a leading manufacturer of starch and liquid glucose from maize

and tapioca tuber, decided to set up a 4.0 MW biomass based power plant (industrial

waste and agro-biomass). Subsequently, VBL management obtained permission from

Non-conventional Energy Development Corporation of Andhra Pradesh (NEDCAP) for

setting up of the 4.0 MW Power Plant. The core justification for this investment by VBL

management was the potential monetization of CERs to deliver a sustainable and

appropriate return. Subsequently, as VBL was unable to obtain proper guidance and

technical evaluation facilities, in August 2002 the issue of CERs marketing was

temporarily postponed. In June 2004, VBL decided to revive the issue of CERs

marketing and develop the biomass based cogeneration project as a CDM project underthe Cleaner Technology Promotion In India (CTPI) supported by SECO/UNIDO. Power

purchase agreement (PPA) with the transmission authority APTRANSCo was signed in

February 2002.

Despite several technical and financial risks associated with the project, VBL decided to

start construction of power plant in October 2002. The reasonable assurance that the

project would be able to avail carbon credits benefits was one of the key factors in the

decision making, as is stated in VBLs Board Meetings2. Decisions weighing IRR against

securing CDM credits are presented in Section B.3. Since its commissioning and start-upin November 2003, VBL cogeneration plant has been confronted with several ongoing

operational problems related to the behavior of mixed biomass feedstock.

Availability of Bio-mass:

The VBL cogeneration plant is being fuelled with starch industry solid waste viz. tapioca

tippi and agro-biomass viz. rice husk, groundnut husk, saw dust and tapioca stem etc.

Apart from these two types of fuels, the cogeneration plant is also being fuelled with

biogas generated from bio-methanation plant (from treating liquid effluents generated in

2Documentary evidence on VBLs Board Meetings decisions would be shared with the Designated Operational Entity



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the starch plant). Apart from these fuels, the company has also identified agro wastes

such as tapioca stem. These are being sourced from the same farmers who are

supplying the raw material (maize and tapioca) for the starch and glucose production.

Thus, for VBL the biomass waste is supplied from the own plant and from the contracted

farmers. VBL has entered into agreement with biomass suppliers for long term supply ofbiomass. Additionally, as per the survey conducted by NEDCAP on availability of

biomass in the region (East Godavari district), it highlights that the district has surplus

biomass availability for the next 10-15 years.

Contribution to Sustainable Development:

The project activity has excellent contribution towards sustainable development and

addresses the key issues:

Environmental Sustainability:

Substituting the electricity requirement from grid by cogeneration scheme thereby

eliminating the generation of equivalent quantum of electricity using conventional

fuel feeding the state grid

Reducing disposal and indiscriminate incineration (in low efficiency boilers) of

biomass waste generated during starch manufacturing process

Conserving coal and other non-renewable natural resource

Mitigating the emission of GHG (CO2) as biomass is a carbon neutral fuel

Socio-economic Sustainability:

Andhra Pradesh had a peak power deficit of 2.3% at the end of the year 2003,

according to Ministry of Power (MoP, 2003). The biomass based power plants will

contribute, though in a small measure, to bridging the gap between the supply

and demand of power in the state.

The unit is located at dispersed rural location, which reduces the transmission

and distribution (T&D) losses to some extent. The T&D losses in Andhra Pradesh

were about 26% in year 2003 (MoP 2003).

The project is in line with the policies of MNES. It contributes to achievement ofthe 11th Plan target of 10,000 MW renewable energy by 2012 set by MNES.

Contrary 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 center, creating rural employment. It is

estimated that the project has potential to create approximately 80,000 man-days

of work per year. Creation of employment opportunities in rural areas has long

been recognized as a major element of sustainable development and to stem the



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

addresses a core national concern.

A.3 Project Participants:

The project participants are:

Vensa Biotek Limited (VBL): project owner

Government of India: host country; the Government of India ratified the Kyoto

Protocol in 2002.

Vensa Biotek Limited India

Role in the Project:

Developer and investor in the biomass based power generation project and supplier of

the carbon credits.

Brief Company Description:

Vensa Biotek Limited (VBL) is one of the leading manufacturers of starch and liquid

glucose from maize and tapioca tuber. The company started its commercial production of

starch and liquid glucose in 1989 by using tapioca tuber as raw material. Subsequently

the company has added maize plant and this is only one of its kinds in India, which can

process both tapioca and maize simultaneously. The company processes around 30,000

MT of tapioca and 63,000 MT of maize annually. The company currently operates

commercial plants aggregating a total installed capacity of 80 MT for the production of

starch, and 40 MT for liquid glucose per day.

VBL is a public limited company with equity participation from IDBI and IFCI banks. The

net fixed assets of the company are INR 218.04 Million (US$ 4.84 million) and net sales

of approx. INR 219.75 Million (US$ 4.88 million) in 2003-2004. The main promoters hold

51% of the equity. It has an impeccable track record with its bankers and a track record

of profits and dividends for its shareholders.

Contact information on party(ies) and private/public entities involved in the project activity

are listed in Annex 1.



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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

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

A.4.1.3 City/Town/Community etc : G. Ragampet village,

Peddapuram Mandal,

East Godavari District

A.4.1.4 Detail of physical location, including information allowing

the unique identification of this small-scale project

activity(ies):

See following pages



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A.4.2 Type and Category(Ies) and Technology of small-scale Project Activity:

Project Category : Renewable energy power project (Type I)

Sub Category : Thermal energy for the user (I.C)

Renewable electricity generation for supply to a grid (I.D)

As defined under Appendix B of the simplified modalities and procedures for small-scale

CDM project activities, these categories include biomass based co-generating

systems that produce heat and electricity for use on-site and biomass combined

heat and power (co-generation) systems that supply electricity to a grid. For co-

generation systems to qualify under these categories, the sum of all forms of energy

output shall not exceed 45 MWthermal (rating for the primary boiler shall not exceed 45

MWthermal). This project activity clearly qualifies in the above categories since the net

thermal energy output from the project activity is approximately 22.7 MMKcal/hr

MWthermal (< 45 MWthermal).

The captive power requirement for operating VBL is about 1.55 MW (0.44 MW auxiliary

consumption for cogeneration plant and 1.11 MW for process). Before setting up the

cogeneration plant, power requirement was being met by supplies from APTRANSCo. By

setting up the biomass based cogeneration plant, VBL meets its steam and power

requirement from captive sources and is thus applicable for project category I.C.

Additionally, the surplus electricity is supplied to the grid that is now supplied primarily by

coal power plants with future plans overwhelmingly in favour of fossil fuel based

generating facilities and is thus applicable for project category I.D.

Technology of Project Activity:

The system adopted for power generation is direct combustion of fuels in a high-

pressure boiler for steam generation and expansion of the same in an extraction cum

condensing turbine for generation of power. The boiler (28 TPH, 65 kg/cm2, 4850C) used

for steam generation is specifically designed to fire a combination of various biomass

fuels. The boiler is provided with a large furnace and the super heaters are speciallydesigned and provided with a protective coating to prevent corrosion from the chemically

contaminated flue gases that are generated while burning tapioca fibre, rice husk and

tapioca stems. The flue gas velocity and spacing of the super heater coils are so

designed to allow minimum fouling with chemical depositions, to extend the life of the

Super heater.



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The steam turbine for the power plant is an extraction cum condensing turbine with one

controlled extraction for process steam requirements. The turbine is designed to drive

the generator directly through a gearbox to generate power at 50 HZ. The speed of the

generator is 1,500 RPM and the generator is designed to generate 4.0 MW ElectricalPower at 50 HZ, 11 KV Voltage level and 0.9 Plant Load Factor.

The generating voltage at the generator terminals is 11 KV which is stepped up to 33 KV

for exporting power to APTRANSCo grid in a 5 MVA Transformer and bring down the

voltage from 11 KV to 415 V in a 2 MVA Transformer for captive use of power.

Accordingly all other electrical equipment like grid transformer, switchyard etc. are sized.

No transfer of technology is involved to host country as the technology of biomass based

high steam pressure power generation is known and in use in India. However, the use of

tapioca and maize crop residue as fuel for power generation is a pioneering effort by

VBL; this project represents the use of tapioca and maize crop residue, for the first time,

for the generation of electricity on a commercial scale.

A.4.3 Brief explanation of how the anthropogenic emissions of anthropogenic

greenhouse gases (GHGs) by sources are to be reduced by the proposed small-

scale project activity, including why the emission reductions would not occur in

the absence of the proposed small-scale project activity, taking into account

national and or/sectoral policies and circumstances:

The project results in a clear reduction of CO2 emissions: the CO2 neutral biomass based

power generation for captive consumption and supply to the electricity grid replaces CO2-

emitting fossil fuel based power that might have been generated in absence of the CDM

project.

The emission reductions would not occur in the absence of the proposed small-scale

project activity as the alternatives to the project include business-as-usual i.e. import ofequivalent amount of electricity through the power generation mix of APTRANSCo grid.

Almost all starch-manufacturing plants in India have their own boilers to generate steam

and electricity supply is from the grid. The boilers dedicated to the starch manufacturing

process are mainly fuelled with coal or lignite. The proposed project uses starch industry

solid waste and agricultural wastes (biomass) to generate power for self-consumption

and export of surplus power to the APTRANSCo grid. In absence of the project, same

power might have been supplied through the power generation mix of APTRANSCo grid,

resulting in CO2 (carbon dioxide) emissions.



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A.4.3.1 Estimated amount of emission reductions over the chosen crediting period

A conventional electrical energy equivalent of 246.87 Million kWh for a period of 10 years

in Andhra Pradesh would be replaced by the electricity from the existing 4.0 MW non-

conventional renewable resource (biomass) based cogeneration plant with CO2

emission reduction of 175,079 tonnes CO2e in a period of 10 years.

A.4.4 Public funding of the small-scale Project Activity:

No public funding as part of project financing from parties included in Annex I is involved

in the project activity. Equity for the project is supplied by VBL and debt is supplied by an

Indian Bank.

A.4.5 Confirmation that the small-scale project activity is not a de-bundled

component of a larger project activity:

According to Appendix C of Simplified Modalities and Procedures for small scale CDM

project activities, Debundling is defined as the fragmentation of a large project activity

into smaller parts. A small-scale project activity that is part of a large project activity is

not eligible to use the simplified modalities and procedures for small-scale CDM project

activities.

As highlighted in Appendix C of Simplified Modalities and Procedures for small scale

CDM project activities, a proposed small-scale project shall be deemed to be a de-

bundled component of a large project activity if there is a registered small-scale CDM

project activity or an application to register another small-scale CDM project activity:

With the same project participants;

In the same project category and technology / measure;

Registered within the previous 2 years; and

Whose project boundary is within 1 km of the project boundary of the proposed

small-scale activity at the closest point.

On the basis of the above, the proposed cogeneration project cannot be considered as

de-bundled component of a large project activity as:

The proposed project is VBLs first and so far only biomass power plant and VBL

do not propose another biomass power plant;

VBL have not registered any other small-scale project activity within the previous

two years; and

Project boundary is not within 1 km radius of any other proposed small-scale

activity.



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B: Application of a Baseline Methodology

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

small-scale Project Activity:

Main Category:

Type I Renewable energy power project

Sub Category:

C Thermal energy for the user

D Renewable electricity generation for a grid

The reference has been taken from the recent list of the small-scale CDM project activity

categories contained in Appendix B of the simplified M&P for small-scale CDM project

activities.

B.2 Project Category Applicable to the small-scale Project Activity:

Appendix B of the simplified modalities and procedures for small-scale CDM project

activities, provides indicative simplified baseline and monitoring methodologies for

selected small-scale CDM project activity category. As per this document, the proposed

CDM project falls under Type I.C Thermal Energy for the User and Type I.D -Renewable electricity generation for a grid. Baseline methodology for projects under

Type I.C has been detailed in paragraphs 5-7 (Type I.C) of the above mentioned

document. Paragraph 7 (Type I.C) which applies to this sub category of project activity

states that for renewable energy technologies that displace electricity the simplified

baseline is the electricity consumption times the relevant emission factor calculated as

described under Category I.D, paragraph 7 (Type I.D). Similarly, baseline methodology

for projects under Type I.D has been detailed in paragraphs 5-7 (Type I.D) of the above

mentioned document. Paragraph 7 (Type I.D) also applies to this sub category of project

activity. Paragraph 7 (Type I.D) states that the baseline is the kWh produced by therenewable generating unit multiplied by an emission co-efficient (measured in kg

CO2equ/kWh) calculated in a transparent and conservative manner as:

a) The average of the approximate operating margin and the build margin, where:

I. The approximate operating margin is the weighted average emissions (in kg

CO2equ/kWh) of all generating sources serving the system, excluding hydro,

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



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II. The build margin is the weighted average emissions (in kg CO2equ/kWh) of

recent capacity additions to the system, which capacity additions are defined as

the greater (in MWh) of most recent 20% of existing plants or the 5 most recent

plants

OR

b) The weighted average emissions (in kg CO2equ/kWh) of the current generation mix.

Considering the available guidelines and the present project scenario, Andhra Pradesh

state grid has been chosen for baseline analysis by selecting the weighted average

emissions of current generation mix for baseline calculations. Further details of the

baseline are given in Annex 3.

B.3 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 (i.e. explanation of how and why this project is

additional and therefore not identical with the baseline scenario)

Emission Reductions:

a) On-site Emissions:

Construction of Cogeneration Plant:

The first direct on-site emissions occur during the construction of the cogeneration plant.

However, as there is a shortage of electricity in India, it can be assumed that in the

baseline situation, fossil fuel power plants would have been constructed instead which

would at least result in similar emission levels. We can therefore safely assume that the

construction of cogeneration plant does not result in additional emissions compared to

the baseline scenario.

Combustion of Biomass:The fuel used for the cogeneration plant is primarily starch industry solid waste viz.

tapioca fibre and maize husk, agro-biomass viz. rice husk and tapioca stem and biogas.

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

of biomass and biogas in the boiler. These emissions mainly include CO2. However, the

CO2 released equals the amount of CO2 taken up by the biomass during growing,

representing a cyclic process of carbon sequestration and therefore no net emissions

occur. Since the above biomass contains only negligible quantities of other elements like

Nitrogen, Sulphur etc. release of other GHGs are considered as negligible. Additionally,

the biogas which is generated from bio-methanation plant for treating liquid effluentsgenerated during starch manufacturing is assumed to be produced on a sustainable



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basis and therefore the CO2 associated with biogas consumption is re-absorbed in the

growth of fodder and foodstuffs.

Storage of Biomass:

The harvesting of the maize crop takes place throughout the year, tapioca crop in theperiod of January to March and rice crop in the period of July to November and

December to March. Since tapioca being a seasonal crop is only available for three to six

months a year, adequate storage facilities are required. In principle N2O and CH4

emissions could arise from storage. However, this is not expected to generate significant

GHG emissions:

In principle nitrous oxide emissions could arise from storage. However, it seems

fair to assume the amount of nitrous oxide emissions formed during biomass

storage to be comparable to the amount of N2O emissions arising from

agricultural residues when left on the field. As a consequence the N2O emissions

will not be influenced by the project and will therefore not be taken into account.

Substantial methane emissions from storage are not anticipated. There are three

arguments for this:

1. The materials are stored in such a way that anaerobic digestion is very

unlikely (dry and with excess oxygen)

2. Methane production from anaerobic digestion only starts after a couple of

months and reaches its peak after 2 years (storage time for the proposed

project is on an average one month3)

3. The biomass materials used in this project have very little organic

components that are biodegradable under anaerobic conditions.

b) Off-site Emissions:

Transport of Biomass:

Direct off-site emissions in the proposed project arise from transporting the biomass. The

biomass is being transported by tractors and trolleys. However, in the baseline situation,

the transport of coal and gas has to be taken into account. On average, the distanceover which fuels have to be transported will be substantially larger for fossil fuel-fired

power stations because of the larger distance to mines and ports than for the proposed

project. For example, Andhra Pradesh fossil fuel-fired power stations procure coal from

facilities located over 100-500 kilometres away either from in-house mines (Singareni

and Godavarikhani) or from neighbouring states such as Chattisgarh, Orissa and

Madhya Pradesh4. Therefore, transport emissions in the baseline will be larger than the

3Documentary evidence regarding the VBL agreement with biomass suppliers stating that the supplier agrees to supply

the biomass in monthly consignments to VBL would be shared with the Designated Operational Entity4 Andhra Pradesh has huge reserves of key minerals such as coal, limestone, granite, bauxite and barytes. In fact, theState is estimated to have a third of Indias total mineral wealth. Andhra Pradesh is the only southern state with coaldeposits; however, annual coal production is an almost negligible proportion of reserves (0.3 per cent)



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transport emissions related to the proposed project. Because of a lack of data on the

average transport distances for coal to power stations in Andhra Pradesh and the

Southern grid, we have not included fuel transport emissions in the system boundary of

both the current situation and the project5. This also provides a conservative estimate of

emission reductions.

Biomass Left or Burnt on the Field:

The project will result in reduced direct off-site emissions compared to the current

situation, in which part of the biomass waste stays on the field. This may lead to

methane emissions from decaying biomass. In cases where the biomass is burnt on the

field, N2O may be emitted. N2O and methane have a stronger global warming potential

than CO2. These emissions however, are not taken into account, providing a more

conservative estimate of the baseline emissions.

Since the proposed project uses biomass waste only, no additional biomass is grown on

account of the project. Therefore the project does not result in an additional uptake of

CO2 by sinks.

Justification of Simplified Methodologies:

The net thermal energy output from the project activity is approximately 22.7 MW thermal.

The proposed project therefore qualifies for a small-scale project as the sum of all forms

of energy output is not exceeding 45 MWthermal (as defined in Appendix B of the M&P of

small-scale CDM project activities).

Additionality:

In order to determine if the project activity is additional, the additionally tool approved by

the CDM Executive Board is applied6. Each of the steps is explained below:

Step 0: Preliminary screening based on the starting date of the project activity

(http://www.aponline.gov.in/quick%20links/vision2020/c19.pdf). Since Andhra Pradesh is located adjacent to the ports,imported coal is also easily available. Regarding gas and other major sources of energy, the discovery of gas in theKrishna-Godavari Basin offshore coastal Andhra Pradesh by the consortium led by Gujarat State Petrochemicals Limitedwill form a major determinant of the future energy generation pattern for Andhra Pradesh(http://www.projectsmonitor.com/detailnews.asp?secid=39&newsid=6347 ).

5The fuel efficiency of tractors and trolleys is 6-7 km/liter. We take 6 km/liter in order to be conservative. Biomass will be

transported over an average distance of 30 km with a minimum load per trip of 8000 kg. Thus, transporting up to 33,600MT (Tapioca Tippi (9,900 MT), Rice Husk (13,200 MT) and Tapioca stems / Groundnut Husk / Saw dust (10,500 MT)requires 4,200 trips of 60 km (including the return trip). In total, a maximum of 42,000 liters of diesel oil will be consumedfor the 4.0 MW plant per year, with total emissions amounting to 111 ton CO2/year (assuming an emission factor for dieseloil of 20.2 t C/TJ, a caloric value of 43.33 TJ/k ton and a density is 0.827 kg/l).

6http://cdm.unfccc.int/EB/Meetings/016/eb16repan1.pdf

http://www.aponline.gov.in/quick%20links/vision2020/c19.pdfhttp://www.projectsmonitor.com/detailnews.asp?secid=39&newsid=6347http://cdm.unfccc.int/EB/Meetings/016/eb16repan1.pdfhttp://cdm.unfccc.int/EB/Meetings/016/eb16repan1.pdfhttp://www.projectsmonitor.com/detailnews.asp?secid=39&newsid=6347http://www.aponline.gov.in/quick%20links/vision2020/c19.pdf


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a) Project start date: In January 2001, VBL proposed to set up a 4.0 MW Power

Plant based on Starch waste. Subsequently VBL management obtained

permission from NEDCAP for setting up of the 4.0 MW Power Plant. Financing of

the project was secured in October 2001 and project was commissioned in

November 2003.

Step 0: Eligibility of projects already started Yes No

Has construction started? Y

Was construction begun before 01/01/2000? N

Was construction before (i) registration date, and (ii) registration

of a CDM activity?

Y

Was CDM considered from early stages of development? Y

Is there documentation to this effect? Y

b) Evidence demonstration that CDM incentives were seriously considered in

the development of project: Despite several technical and financial risks

associated with the project, VBL decided to start construction of cogeneration

plant in October 2002. The reasonable assurance that the project would be able

to avail carbon credits benefits was one of the key factors in the decision making.

During the planning phase itself (January 2001), VBL proposed to explore the

possibility for marketing the CERs for better viability of the project. Subsequently,as the company was unable to obtain proper guidance and technical evaluation

facilities, in August 2002 the issue of CERs marketing was temporarily

postponed. In June 2004, VBL decided to revive the issue of CERs marketing

and develop the biomass based cogeneration project as a CDM project under the

Cleaner Technology Promotion In India (CTPI) supported by SECO/UNIDO.

Step 1: Identification of Alternatives to the Project Activity Consistent with

Current Laws and Regulations

Sub-step 1a: Define Alternatives to the Project Activity:

The alternatives to the project include business-as-usual i.e. import of equivalent amount

of electricity through the power generation mix of APTRANSCo grid. Almost all starch-

manufacturing plants in India have their own boilers to generate steam and electricity

supply is from the grid. The boilers dedicated to the starch manufacturing process are

mainly fuelled with coal or lignite.

The proposed CDM project uses starch industry solid waste and agricultural wastes

(biomass) to generate power for self consumption and export of surplus power to the



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APTRANSCo grid. In absence of the project, same power might have been supplied

through the power generation mix of APTRANSCo grid, resulting in CO2 (carbon dioxide)

emissions. The data from APTRANSCo reveals that thermal generation (coal and gas

based) accounts for as high as 80% of total generation in Andhra Pradesh7 as on

31/03/2005. This includes the share of Central Sector thermal power projects based oncoal and gas.

Sub-step 1b: Enforcement of Applicable Laws and Regulations:

Both the project activity (cogeneration plant) and the alternative scenario (old boiler) at

project site are in compliance with all regulations. Thus, the refurbishment of the project

activity at project is not mandated by law and clearly exceeds the legal requirements.

Step 2: Investment Analysis:

The project is a pioneer in utilization of waste from starch manufacturing process for

electricity generation for self consumption and export of surplus power to the grid.

However, there are currently no special incentives for these small power producers to

offset the generally higher costs of non-conventional energy production as compared to

conventional power production based on fossil fuel.

Implementation of the project faces investment barriers. The outlook for the starch

market has changed over time. Compared to earlier years when starch production was

considered as a major revenue-earner, the situation today is quite grim with depressed

Indian and global starch markets. In the depressed starch price scenario, which affects

capacity for internal accrual to generate funds for investment, making investments in

cogeneration facility, which costs approximately INR 36 million / MW (US$ 0.8 million), is

an issue. Though a number of financial institutes offer funds to implement cogeneration

projects, the stringent equity considerations affect the possibility of accessing them.

Some of the investment barriers are:

The cost of biomass fuel (rice husk) is low at the moment compared to conventional

fuel, as the renewable energy market is limited. If the market for renewable energyincreases in India or other uses of the waste emerge, the costs of production

increases as a result of the sacrifice of alternative revenues for the project owner.

There are no special tariffs or grants schemes available in India for renewable

energy projects and the project got finance on behalf of the financial strength of the

project owner.

IRR Analysis:

The most appropriate analytical option is the presentation of financial indicators (IRR

7(http://aptranscorp.com/pact01.html)

http://aptranscorp.com/pact01.htmlhttp://aptranscorp.com/pact01.html


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calculation) for the project compared to benchmark IRR for biomass based power plants.

The typical IRR benchmark in case of biomass based power plants is around 13%

depending on the type of fuel that is used. IRR at present operating conditions with

reduced power tariff i.e. INR. 3.18 / kWh are coming to 10.76%8 making the project an

unviable one without CER sale revenue stream. With CER sale revenue stream the IRRis coming to 13.80% (see footnote 8) making it a viable option. A likely alternate

investment decision would have been for the implementation of a coal based power

plant. The typical IRR in case of coal based power plants is around 20% (see footnote 8)

depending on the type of coal that is used

While calculating the IRR in project scenario, the maximum fuel price is considered. The

unit is located in the heart of biomass belt. Various biomass fuels are available

throughout the year. Apart from this, VBL is using Tapioca Fibre and Rice Husk in their

boiler for steam generation. Escalation in wages, O&M etc. were considered as 5%.

Least Cost Analysis:

The projects costs of generating electricity are higher than that for the least cost option

of coal. The cost of electricity production from the project is estimated at INR 2.02/kWh

(see footnote 8), whereas the annualised cost of power generation from a 100 MW coal

based power plant are estimated in this study at INR 1.90/kWh (see footnote 8).

Additionally IRR of a typical coal based (100 MW) power project is 20% (approx.) as

against 11% (approx.) for biomass based power project (see footnote 8).

VBL went for biomass based power generation option because of the following reasons:

1. The quality of grid power for VBL was bad as the voltage variation was high

and the frequent interruptions in power supply results in heavy loss of

production. Hence good quality of power was the immediate requirement for

VBL and un-interrupted supply of power became necessary for smooth

running and profitable operation of the plant. To get good quality of power,

option with VBL was to generate power through coal based power plant orutilise the waste generated in-house for power generation.

2. Biomass based power generation (through in-house waste from plant and

from market) is slightly costly as compared to coal based (explained above).

The selection of biomass based power option is because the plant has full

control on fuel availability and is beneficial with CDM revenues. At the same

time, it is environmentally friendly as well.

On the basis of above analysis it is clear that VBL could have considered a coal based

8Details of the calculation will be provided to the Designation Operational Entity



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power plant instead of the biomass plant, which in terms of financial feasibility would be

clearly more attractive than a biomass plant. It can thus be concluded that a biomass

plant is not an attractive course of action and therefore its implementation is not the most

likely scenario.

Step 3: Barrier Analysis:

Technological Barriers:

The project uses an advanced cogeneration technology in the form of high-pressure

boiler (65 kg/cm2, 4850C) with steam turbine coupled to an alternator for the generation

of power. Currently, the starch manufacturing industry in India predominantly uses low

efficiency, low-pressure boilers for their own steam generation (14 to 17 kg/cm2). The

high-pressure boiler installed at VBL not only belongs to the first installations in the

starch sector but is also among the most efficient installations in India.

Being aware of the difficult combustion characteristics of rice and tapioca residues VBL

contracted with Thermax Ltd. Thermax took specific precautions with respect to the

design (larger furnace, convective heat transfer surfaces, efficient soot blowers and

conservative furnace outlet temperature) of the boiler.

As such, VBL was aware of the serious technological risk associated with the

combustion of rice husk and tapioca residues. Additional revenues through carbon

credits were considered essential to counterbalance the risks.

Institutional Barriers:

The lack of familiarity with handling high-pressure boilers coupled with the complex

operation of condensing and extraction multistage turbines is a major barrier to adoption

of the proposed new technology in the starch manufacturing sector. Furthermore, the

project used new technologies that had not been implemented in starch manufacturing

sector before. The technological risk was higher than conventional projects as the know-

how and support facilities in manufacturers will be established together with the project.

The above barriers lead to an increased risk for the project owner compared to

establishing a conventional power plant for their starch-manufacturing unit.

Step 4: Common Practice Analysis:

Sub-step 4a: Analyze Other Activities Similar to the Proposed Project Activity:

Almost all starch-manufacturing plants in India have their own boilers to generate steam

and electricity supply is from the grid. The boilers dedicated to the starch manufacturingprocess are mainly fuelled with coal or lignite. The project activity is the first project in



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India to utilize all the biomass waste products from the starch manufacturing process for

generation of power and steam and supply excess electricity to the electricity grid

system.

Sub-step 4b: Discuss Any Similar Options that are Occurring:

There is no other case in India in starch manufacturing sector of a project of this type.

Step 5: Impact of CDM Registration:

The CDM has made it possible to set up a cogeneration plant and export electricity to the

grid. CDM revenues improve the projects rate of return, without CERs, the project shows

lower IRR, but breaks even with CER revenues in 10 years crediting period, which is

necessary to initiate such pioneering projects. Thus the prospect of CDM credits for the

project proved helpful in securing a go-ahead decision for this project, since they

diversified the financial returns on investment. In the absence of CER revenue stream,

the project might not have been taken at all. The registration of the proposed project

activity will have a strong impact in paving the way for similar biomass projects to be

implemented in the starch manufacturing sector. From the above assessment, it is clear

that the proposed project does not fall within the baseline scenario and that it would not

occur without the assistance of the CDM benefits.



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B.4 Description of how definition of the Project Boundary related to the

baseline methodology selected is applied to the small-scale Project Activity:

According to Appendix B of the simplified modalities and procedures for small-scale

CDM project activities, the project boundary encompasses the physical and geographicalsite of the renewable generation source. For the proposed project activity the project

boundary is from the point of fuel storage to the point of electricity supply to the starch

manufacturing unit where the project proponent has a full control. The steam generation

from the cogeneration activity has been excluded from the project boundary, as it is not

included under the CDM project activity.

Thus, project boundary covers fuel storage, boiler, steam turbine generator and all other

accessory equipments. The transport of biomass and the state electricity grid are not

included in the project boundary.



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Flow chart and project boundary is illustrated in the following diagram:

Biomass Storage

EmissionSequestered

Biomass Fired Boiler Emission Generated

Power Generation Unit

Electricity to StarchManufacturing Unit

AuxiliaryConsumption

Electricity Export toState Grid andConsumption

Steam for processrequirement at site

Biomass Source

ProjectBoundaries

Figure B.1: Flow Chart and Project Boundary



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B.5 Details of the Baseline and its Development:

B.5.1 Specify the baseline for the proposed project activity using a methodology

specified in the applicable project category for small-scale CDM project activities

contained in appendix B of the simplified M&P for small-scale CDM project

activities:

The general approach for the baseline is based on the baseline formula as included in

Appendix B, IC category: Thermal energy for the user and ID category: Renewable

electricity generation for a grid (UNFCCC, 2003b). The baseline proposed here is

Option (b): The weighted average emissions of the current generation mix.

In the proposed baseline, Andhra Pradesh electricity grid is used as the reference region

for estimating the current generation mix. Using the methodology available for small-

scale project activities, the weighted average emissions (in KgCO2equ/kWh) of current

generation mix of Andhra Pradesh is used for the calculation of baseline. Actual CO2

emission factor are used for the purpose.

B.5.2 Date of completing the final draft of this baseline section: 29/07/2005

B.5.3 Name of person/entity determining the baseline:

The baseline has been prepared by Winrock International India in consultation with VBL.

Company name : Winrock International India

Address : 1 Navjeevan Vihar, New Delhi 110017 India

Telephone number : 91-11-26693868

Fax number : 91-11-26693881

E-mail : [email protected]

Website : www.winrockindia.org

Winrock International India is not a project participant as meant in Annex 1.

mailto:[email protected]://www.winrockindia.org/http://www.winrockindia.org/mailto:[email protected]


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C. Duration of the project activity / Crediting period

C.1 Duration of the small-scale Project Activity:

C.1.1 Starting date of the small-scale Project Activity: 16th October 2002

The project started construction after January 2000. Referring to the Glossary of terms

provided in version-2 (03 December, 2004) of Guidelines for completing the project

design document (CDM-PDD), the proposed new methodology: baseline (CDM-NMB)

and the proposed new methodology: monitoring (CDM-NMM) the project starting date is

considered as October 16, 2002 the date of laying of foundation stone to start the actual

implementation of the project activity, considering the future benefits through CDM for

sustainable operation of the project. The project started the commercial operation from

November 20, 2003.

C.1.2 Expected operational lifetime of the small-scale project activity:

Life time of the project : 20 years

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

C.2.1 Renewable crediting period (at most seven (7) years per crediting period)

C.2.1.1 Starting date of the first crediting period (DD/MM/YYYY):

C.2.1.2 Length of the first crediting period:

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

C.2.2.1 Starting date (DD/MM/YYYY): 20/11/2003

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



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D. Application of a monitoring methodology and plan

D.1 Name and Reference of Approved Methodology Applied to the small-scale

Project Activity:

The monitoring methodology / guideline mentioned in the Appendix B of the simplified

modalities and procedures for small scale CDM project activitiesin the project category

Type I.C and Type I.D is considered as basis for monitoring methodology for the project

activity. This methodology involves metering of the electricity generated by the

renewable technology. Although the proposed project does not involve co-fired plants,

the monitoring of the amount of biomass input and its energy content is included as well

in the methodology.

D.2 Justification of the Choice of The Methodology and Why It is Applicable to The

small-scale Project Activity:

The proposed project is eligible as a small-scale project (see section B.2), category

Thermal Energy for the User (I.C) and Renewable electricity generation for a grid

(1.D.). The monitoring methodology is consistent with the methodology as required in

Appendix B (UNFCCC, 2003b). The proposed methodology thus provides measured

data on the amount of electricity generated, the biomass input and the fossil fuel input.With this information, a reliable estimate of the amount of emission reductions can be

made.

In order to monitor the mitigation of GHG due to the project activity at VBL, the total

electricity produced and auxiliary consumption, and captive power consumption for

process plant, needs to be measured. The net electricity supplied to manufacturing

facility of VBL and state grid by the project activity multiplied by emission factor for the

grid will form the baseline for the project activity.

Description of Monitoring Plan:

Explanation of Data Collection:

The data will be collected as follows:

The quantity of biomass purchased will be based on invoices/receipts from

farmers and the fuel contractor as well as with the weighbridge log. This will be

audited in regular, annual tax and shareholder audits. If required the DOE will be

given access to the audit and monitoring reports.

Biogas and biomass produced in plant.



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Electricity production and distribution will be measured and monitored through:

o In-house electricity meters installed within the plant premises to record the

gross power produced, auxiliary power consumed, and captive power

consumption for processes

o Two Electricity meters installed (one check meter and one main meter) atthe inter connection point of the substation at Peddapuram for the

electricity export

The purchase and use of fossil fuels (coal) would of course cancel a measure of

emission reductions. The purchase of fossil fuels, if made, will be tracked through

the audit report and reflected in final emission reduction calculations. To date, the

need to use fossil fuels has not occurred for the project.

The energy content of the biomass is measured on an annual basis from a

recognised testing laboratory

Missing Data:

Missing data is only relevant on the level of electricity meters being temporarily out of

order. At the sub-stations of APTRANSCo there are two meters: the main metering

system and a back-up meter. If the main meter is out of order or under repair, the back-

up meter will provide redundancy. Besides the two meters there will be meters from VBL

within the plants themselves. However, these meters are for internal use (gross power

produced, auxiliary power consumed and electricity supplied to manufacturing facility of

VBL) only and APTRANSCo may not accept these readings for billing purposes.

Electricity fed into the grid and unable to be metered will not be registered and invoiced.

This will result in less registered emission reductions than actually generated.

Operational Parameters of the power generating Unit:

Total Electricity Generated:

The total electricity generated by the power project will be measured in the plant

premises to the best accuracy and will be monitored and recorded, on a continuous

basis through installed electricity meters.

Auxiliary Consumption:

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

best accuracy. This will be monitored and recorded on a continuous basis through

installed electricity meters. The total quantum of electricity consumed by the auxiliaries

would affect the total electricity supplied to the manufacturing unit and state grid and

therefore the amount of GHG reductions.



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Electricity Exported to the State Grid:

Net electricity exported to state grid would depend on total electricity generated, auxiliary

consumption and captive consumption.

All the above parameters / factors will demonstrate the performance of the project at anypoint of time.



30/56

4 .0 M W Indus t r ia l Was te Based Power Gene ra t ion Pro jec t o f Vensa B io tek L im

D.3 Data to be Monitored:

The tables below include the variables that will be monitored for this project. No emissions from the proje

a) Parameters affecting the emission reduction potential of the project activity

ID

Number

Data

type

Data variable Data

unit

Measured (m),

calculated (c)

or estimated (e)

Recording

frequency

Proportion

of data to be

monitored

How will the data

be archived?

(electronic/ paper)

F

a

1 Energy Total

electricity

generated

kWh m Continuous Total Electronic / paper 2

of

pe

2 Energy Auxiliary

consumption


of

pe

3 Energy Power

supplied to

process plant


of

pe

4 Energy Power

supplied tostate grid


ofpe



31/56

4 .0 M W Indus t r ia l Was te Based Power Gene ra t ion Pro jec t o f Vensa B io tek L im

b) Fuel related parameters affecting the project activity

ID

Number

Data

type

Data variable Data

unit

Measured (m),

calculated (c)

or estimated (e)

Recording

frequency

Proportion of

data to be

monitored

How will the data

be archived?

(electronic/ paper)

F

a

1 Fuel Biomass MT m Daily > 95% Paper 2

of

pe

2 Fuel Fossil fuel MT m Daily > 95% Paper 2

of

pe

3 Fuel Biogas NM3

m Daily > 95% Paper 2

of

pe

4 Fuel Energy content MJ/k

g- Biomass

- Biogas

- Coal

m Annually N/A Paper 2

of

pe



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4 .0 M W Indus t r ia l Was te Based Power Gene ra t ion Pro j ec t o f Vensa B io tek L im i ted

D.4 Qualitative explanation of how Quality Control (QC) and Quality Assurance

(QA) Procedures are undertaken:

Monitoring Approach:

The general monitoring principles are based on:

Frequency

Reliability

Registration and reporting

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

the manufacturing facility of VBL and state grid (and then multiplying with appropriate

emission factor) it becomes important for the project entity to monitor the power supplied to

manufacturing facility and state grid on real time basis.

Net emission reductions also depend on the leakage estimate due to firing of coal in case of

exigencies. Hence the second important thing is to monitor the quantity of coal used, if any,

and quantify the power contribution from the same.

Frequency of Monitoring:

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

premises and at the inter connection point of the substation. The measurement will be

recorded and monitored on a continuous basis by the project entity.

Reliability:

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

project. Since the reliability of the monitoring system is governed by the accuracy of the

measurement system and the quality of the equipment to produce the result all power

measuring instruments must be calibrated once a year for ensuring reliability of the system.

All instruments carry tag plates, which indicate the date of calibration and the date of nextcalibration. Therefore the system ensures the final generation is highly reliable.

The Shift Engineer is responsible for data recording and the Plant Manager ensures that the

data is recorded continuously and is archived properly. Also, the Shift Engineer had

undergone an induction programme including plant operations, data monitoring, report

generation etc.



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Registration and Reporting:

Registration of data is computerised. Daily, weekly and monthly reports are prepared stating

the generation.

The other major factors, which need to be ensured and monitored, are the use of biomass

and coal (if any).

Fuel Related Parameters:

Quantity of Biomass used in the Boiler as Fuel:

The biomass received from the traders is stored in the plants storage area specially

designed for such storage. The amount of biomass entering the plant is measured through

the weighbridge log and the bills / invoices to the biomass traders and records of the same is

maintained. The weighing system is being calibrated regularly to ensure the accuracy of the

measurement. The data is recorded for further verification. The amount of biomass

purchased is based on invoices / receipts from traders.

Quantity of the Coal used in the Boiler as Fuel:

Coal demands a similar monitoring system in place (as above) for the amount of coal fired (if

any).

Quality of Biomass used in the Boiler:

The main fuel proposed for the power generation is only biomass. The properties of various

types of biomass (Tapioca Tippi, Rice Husk, and Tapioca stems / Groundnut Husk / Saw

Dust) from ultimate analysis-energy content, ash compositions etc. are already established

and will be consistent in the region. Similarly, the properties of biogas from ultimate analysis

- energy content etc. is also established.

Quality of Coal Fired in the Boiler:

The properties of the coal from ultimate analysis energy content and composition etc. willdepend on the quality of coal received.

D.5 Please describe briefly the operational and management structure that the project

participant(s) will implement in order to monitor emission reductions and any leakage

effects generated by the project activity

To address all O&M issues, the project has experienced Engineers and has an Officer for

Fuel Procurement under the guidance of the Executive / Technical Director. Together they

have recruited and groomed a team of Supervisors and Field Representatives to effectively



34/56


control and monitor the complete process of fuel procurement, quality issues, and the

handling and storage of material in the plant area.

The monitoring parameters relevant for the CDM activity (see section D.3), i.e. biomass input

flow, biomass energy content, electricity production, consumption and export are part of the

regular monitoring scheme of the plant. No additional CDM related training was required.

The monitoring data required for the CDM verification are taken from the regular digital and

manual logs.

D.6 Name of Person / Entity Determining The Monitoring Methodology:

Winrock International India (see also section B.5)



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E. Estimation of GHG emissions by sources

E.1 Formulae Used:

(In E.1.1 please provide the formula used to calculate the GHG emission reductions by

sources in accordance with the applicable project category of small-scale CDM project

activities contained in appendix B of the simplified M&P for small-scale CDM project

activities.

In case the applicable project category from appendix B does not indicate a specific formula

to calculate the GHG emission reductions by sources, please complete E.1.2 below.)

E.1.1 Selected Formulae as Provided in Appendix B:

(Describe the calculation of GHG emission reductions in accordance with the formula

specified for the applicable project category of small-scale CDM project activities contained

in appendix B of the simplified M&P for small-scale CDM project activities.)

Since category I.C and I.D does not indicate a specific formula to calculate the GHG

emission reduction by sources, the formula is described below in E.1.2

E.1.2 Description of formulae when not provided in appendix B:

E.1.2.1Describe the formulae used to estimate anthropogenic emissions by sources of

GHGs due to the project activity within the project boundary: (for each gas, source,

formulae/algorithm, emissions in units of CO2 equivalent)

The project is a CO2 neutral biomass-based power plant designed to supply electricity to the

grid. Therefore, no additional anthropogenic emissions of GHGs due to the project activity

are expected to be generated within the project boundary. For further information, seesection B.3.

In case of exigencies of biomass scarcity, VBL proposes to use coal as fuel. However, in the

last 14 years of the operation of the old rice husk fired boiler and last 1.5 years of operation

of new boiler, VBL has never faced any shortage of the biomass. Hence the uncertainties in

the project emissions are negligible. In case coal is used, the CO2 emissions during the

usage of coal will be calculated in the following manner:



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1. Using IPCC Standard CO2 Emission Factor

CEC = Q*CC*EFC

Where,

CEc = Carbon-dioxide emission due to coal burning at project site, MT

CC = Calorific value of coal, kcal/ton

Q = Quantity of coal burned, MT

EFC = IPCC standard emission factor, kg of CO2/kcal

OR

2. Using Actual Carbon Content of the Coal

CO2 Emission [in kgs] = Stoichiometric CO2 from carbon content of coal (based on

total carbon content).

To have an estimate of the project CO2 emission quantity due to combustion of coal

along with the biomass, total carbon content of the coal should be known.

Combustion reaction for CO2 emission is as under.

C + O2 = CO2

Assuming complete combustion of coal, following formula can be used for

conservative estimation of CO2 emissions.

CEC = (44/12)*C*Q

Where,

CEc = Stoichiometric carbon-dioxide emission due to coal burning at project, MT

C = Carbon percentage in coal, %

Q = Quantity of coal burned, MT

Diesel Generator (DG) sets will be used as standby. However the emissions from the

usage of DG sets are not considered in the project activity emissions since the

electricity generated by DG sets would be monitored separately. For each start up of

the cogeneration plant, the DG (600 kVA) set is operated for two hours with a total

diesel consumption of 100 litres. The cogeneration plant require four such starters

per annum, hence consuming 400 litres of diesel per annum which is equivalent to

generation of 1 ton CO2 per annum (assuming an emission factor for diesel oil of

20.2 t C/TJ, a caloric value of 43.33 TJ/k ton and a density is 0.827 kg/l).



37/56


E.1.2.2 Describe the formulae used to estimate leakage

E.1.2.2Describe the formulae used to estimate leakage due to the project activity, where

required, for the applicable project category in appendix B of the simplified modalities and

procedures for small-scale CDM project activities (for each gas, source, formulae/algorithm,

emissions in units of CO2 equivalent)

As prescribed in Appendix B of the Simplified Modalities and Procedures for small-scale

CDM project activities, for Category I.C and I.D, leakage estimation is only required if

renewable energy technology equipment is transferred from another activity. This does not

apply to the project case. However, the only source of leakage activity identified, which

contributes for GHG emissions outside the project boundary is transportation of biomass

from biomass suppliers to project site. For calculation of leakage, see section B.3.

The CO2 emission (leakage) occurs during the transportation of coal from the mines to

respective coal based power plants. The distance between the coal mines and the power

plants is higher as compared to the transportation distance between biomass suppliers to

project site and hence the higher CO2 emissions. To be on conservative side, this leakage

due to coal transportation has not been added while calculating the baseline of Andhra

Pradesh grid and hence a small leakage due to transportation of biomass has been

neglected from the calculations and estimations of emission reductions.

E.1.2.3The sum of E.1.2.1 and E.1.2.2 represents the small-scale project activity emissions:

The emissions from the project due to use of coal (if any) would give the project activity

emissions.

E.1.2.4Describe the formulae used to estimate the anthropogenic emissions by sources of

GHGs in the baseline using the baseline methodology for the applicable project category inappendix B of the simplified modalities and procedures for small-scale CDM project

activities: (for each gas, source, formula / algorithm, emissions in units of CO2 equivalent)

Andhra Pradesh state grid is considered for baseline analysis and calculation of

anthropogenic emissions by fossil fuels during power generation. Andhra Pradesh present

generation mix has been used to arrive at the net carbon intensity / baseline factor of the

chosen grid. It is observed that, in the Andhra Pradesh generation mix, coal and gas based

power projects are responsible for GHG emissions. As per the provisions of the proposed

methodology the emission coefficient for the electricity displaced would be calculated in



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accordance with provisions of paragraph 29 (a) of Appendix B of Simplified Modalities and

Procedures for Small Scale CDM ProjectActivities.

The emission coefficient has been calculated in a transparent and conservative manner as:

The weighted average emission of the current generation mix:

Step-by-step calculation of baseline emission is as under:

Step 1 :Overall efficiency of coal

based power plants= 35%

Step 2 :

Overall efficiency of gas

based power plants = 50%

Step 3 :CO2 emission factor for

coal= 96.10 Kg CO2 / GJ

9

Step 4 :CO2 emission factor for

gas= 63.10 Kg CO2 / GJ

10

Step 5 :Actual emission factor for

coal=

CO2 emission factor for coal /

Overall efficiency of coal based

power plants (Kg CO2 / kWh)

Step 6 :Actual emission factor for

gas=

CO2 emission factor for gas /Overall efficiency of gas based

power plants (Kg CO2 / kWh)

Step 7 :Net emission factor for

coal=

Actual emission factor for coal *

% of generation by coal out of

total generation (Kg CO2 / kWh)

Step 8 :Net emission factor for

gas=

Actual emission factor for gas *

% of generation by gas out of

total generation (Kg CO2 / kWh)

Step 9 : Total net emission factor =

Net emission factor for coal +

Net emission factor for gas (Kg

CO2 / kWh)

Step 10 :

Units consumed at VBL

and exported to

APTRANSCo grid

=Total power generation Total

auxiliary consumption

Step 11 : Project emissions = Coal used * Heat value of coal *

9As per Revised 1996 IPCC Guidelines for National GHG Inventories: Reference manual, page 1.13, for sub-bituminous coal,

IPCC standard CO2 emission factor is 96.1 t CO2 / TJ.10

As per Revised 1996 IPCC Guidelines for National GHG Inventories: Reference manual, page 1.13, for natural gas liquefied,IPCC standard CO2 emission factor is 63.1 t CO2 / TJ.



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CO2 emission factor of coal as

per IPCC

Step 12 : Baseline emission =

Total net emission factor * Units

consumed at VBL and exported

to APTRANSCo grid

Step 13 :CO2 emission reduction

due to project activity=

Baseline emission Project

emissions

Since there is a gap between demand and supply in Andhra Pradesh grid, the power

supplied to VBL (from the grid) in the non-project scenario and the export of power from the

project activity to Andhra Pradesh grid can be diverted to other utilities, in the project

scenario. Hence the generation of power at VBL from the project activity will partially fulfil the

power requirement for the state of Andhra Pradesh.

If the same amount of electricity is generated by the coal and gas based power project mix,

it adds to the emissions that are ultimately getting reduced by the project activity. Hence, the

baseline calculated using above methods / scenarios would represent the realistic

anthropogenic emissions by sources that would occur in absence of the project activity.

The uncertainties in the baseline, arising out of capacity additions and deletions are already

taken into consideration during calculation of total net baseline emission factor.

E.1.2.5Difference between E.1.2.4 and E.1.2.3 represents the emission reductions due to

the project activity during a given period:

The following formula is used to determine emission reduction:

CO2 emission reduction due to project activity = Baseline emission - Project emission

E.2 Table providing values obtained when applying formulae above:

Using UNFCCC baseline methodology for small-scale CDM project, emission reductions by

project activity for 10 years crediting period has been calculated and tabulated as under.

Table E.2 : CO2 Emission Reductions due to project activity



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2003-

042004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Baseline

Emission

factor

kgCO2/

kWh

0.72

70.721 0.726 0.713 0.708 0.706 0.704 0.702 0.700 0.698

Plant operation data

Gross

capacityMW 4 4 4 4 4 4 4 4 4 4

PLF % 26.6 85 85 85 85 85 85 85 85 85

Days of

operationDays 365 365 365 365 365 365 365 365 365 365

Hours of

operationHours 8760 8760 8760 8760 8760 8760 8760 8760 8760 8760

Electricity

generationMWh/yr 9321 29784

2978

4

2978

4

2978

4

2978

4

2978

4

2978

4

2978

429784

Auxiliary

consumptionMWh/yr 1025 3276 3276 3276 3276 3276 3276 3276 3276 3276

Captive

consumption

& electricity

export

MWh/yr 82962650

8

2650

8

2650

8

2650

8

2650

8

2650

8

2650

8

2650

826508

Plant emission data

Project

emissionstCO2 0 0 0 0 0 0 0 0 0 0

Leakage tCO2 0 0 0 0 0 0 0 0 0 0

Emission reductions

Emission

reduction

tCO2-

/yr6033

1910

3

1925

6

1891

0

1876

8

1871

2

1865

7

1860

1

1854

618492

Total Emission Reductions (tons) 175079



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F. Environmental Impacts

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

impacts of the project activity:

According to Indian regulation, the implementations of biomass plants do not require an

Environmental Impact Assessment (EIA). The Ministry of Environment and Forests (MoEF),

Government of India notification dated June 13, 2002 regarding the requirement of EIA

studies as per the Environment Protection Rule, 1986 (MoEF, 2002) states that any project

developer in India needs to file an application to the MoEF (including a public hearing and an

EIA) in case the proposed industry or project is listed in a predefined list. Thermal Power

Plants with an investment of less than INR 1 billion (US$ 22.22million) are excluded from this

list. As the investment of biomass based project (being a Thermal Power Plant) is less than

INR 1 billion (total project cost is INR 0.15 billion (US$ 3.436 million)), an EIA is not required

(neither is a public hearing).

However the design philosophy of this cogeneration project activity is driven by the concept

of providing the energy with acceptable impact on the environment hence possible

environmental impacts of the project activity are described here. The following environmental

aspects are addressed: Particulate matter and gases

Dry fly ash

Water use

Waste water

Particulate Matter and Gases:

The elements polluting the air that are discharged from the Cogeneration power plant are:

Dust particulate from fly ash in flue gas

Nitrogen oxide in flue gas Sulphur di-oxide in flue gas

Electrostatic precipitator (ESP) is installed for the steam generator to contain the dust

emission from plant to a level of less than 115 mg/Nm3. Adequate height of the stack for the

biomass fired boiler, which disburses the pollutants, has been provided as per guidelines

given by the pollution regulations, for dust and sulphur-di-oxide emissions in the

atmosphere.



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The temperatures encountered in the boiler while burning the specified fuels, are low

enough not to produce nitrogen-oxides. Hence, no separate measures are taken to contain

the nitrogen oxide pollutants.

Dry Fly Ash:

The biomass as fuel has only 5-14% ash compared to 30-40% of ash in coal. Ash disposal is

one of the most significant concerns associated with power generation. The above reduction

of ash generated per megawatt of installed capacity is a quantum leap in addressing this

concern. Leading coal-based power units on an average generate 1,368 tonns/year/ MW of

installed capacity of ash. In comparison, the project activity generates ash to the extent of

420 tonns/year/MW of installed capacity (approximately a third of coal based units).

The wet ash from the boiler grate is being collected, transported and stored in ash bunkers

through conveyer system. The dry fly ash from the economizer, air pre-heater, boiler bank

and ESP hoppers is collected by screw conveyer and stored in ash bunker. The ash is being

supplied to brick and cement manufacturers as filler material. Provision is made in the

system for water spray to eliminate dust nuisance in the plant.

Water Use:

The cogeneration plant has a consumption rate of 150 m3 /day/MW of installed capacity

compared to 131 m3/day/MW of installed capacity for large coal based plants. This is to be

expected since the project units are small and do not have the advantages of economies of

scale. Furthermore, the seasonal fluctuations are not significant and since treated effluents

are being used for irrigation on the premises (part of this would result in recharge of ground

water); the slightly higher specific water consumption may not be considered unsustainable.

Waste Water:

Effluent from water treatment plant:Hydrochloric acid and sodium hydroxide is being used

as regenerants in the proposed water treatment plant. The acid and alkali effluent generated

during the regeneration process of the ion-exchangers is being drained into a linedunderground neutralizing pit. Generally these effluents are self neutralizing. The effluent is

then being pumped into the effluent treatment ponds which form part of the main starch unit

as well as cogeneration power plants effluent disposal system. The neutralizing pit has been

sized with sufficient capacity. The rejects from water treatment plant is having high TDS and

is being diluted and used for cleaning purposes in the project activity. This water also could

be used for plantation.

Biocide in cooling water: The biocide dosing is done to prevent biological growth in the

cooling tower system. This would not result in any chemical pollution of water and also

meets the national standards for the liquid effluent.



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Boiler blow down: pH of the blow down water is in the range of 9.8 to 10.2 and the

temperature is about 850C. The quantity of blow down from the boiler is about 361 kg/hr,

however, part of this is being flashed in the blow down tank and the flashed steam is taken

to the de-aerator for supplementing the steam supplied for decreasing the boiler feed water.

Hence, the actual blow down water released to the drains is about 230 kg/hr and the

temperature is about 600C. As this quantity is very small, the blow down is used for on land

irrigation.

Sewage from various buildings in the plant: Sewage from various buildings in the power

plant area is conveyed through separate drains to the effluent treatment plant (ETP). The

treated effluent from ETP isused for on land irrigation.

Thermal pollution: A close circuit cooling water system with cooling towers has been

installed. This eliminates the letting out of high temperature water into the canals / river and

prevents thermal pollution. Blow down, amounting 520 m3 /day from the cooling tower, is

collected and used for on land irrigation. Hence, there is no separate pollution on account of

blow down from cooling water system.

Noise pollution: The rotating equipment in the power plant has been designed to operate

with a total no

Documents

4 MW Biomass Project Report