Akij Particle Biomass Thermal Energy Generation CDM Project

8/9/2019 Akij Particle Biomass Thermal Energy Generation CDM Project

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CDM – Executive Board Page 1

PROJECT DESIGN DOCUMENT FORM

FOR CDM PROJECT ACTIVITIES (F-CDM-PDD)

Version 04.1

PROJECT DESIGN DOCUMENT (PDD)

Title of the project activity Akij Particle Biomass Thermal Energy

Generation CDM Project

Version number of the PDD 3

Completion date of the PDD 21st June 2013

Project participant(s) • Akij Particle Board Mills Limited (APBML)

• Tricorona Carbon Asset Management Pte Ltd.

• Bangladesh Carbon, Rahimafrooz RenewableEnergy Ltd.

Host Party(ies) BangladeshSectoral scope and selected methodology(ies) • Sectoral Scope 1 (Energy industries);

Methodology AMS I.C“Thermal energy production with or without electricity”, version

19, 3 June 2011

• Sectoral Scope 13 (Waste handling anddisposal)

Methodology AMS III.E “Avoidance of methane

production from decay of biomass throughcontrolled combustion, gasification or

mechanical/thermal treatment” version 16, 17

July 2009

Estimated amount of annual average GHG

emission reductions

39, 516 tonnes of CO2e


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SECTION A. Description of project activity

A.1. Purpose and general description of project activity

The Biomass fired energy plant in Manikgonj, Bangladesh installed by Akij Particle Board Mills Limited

(APBML) is a residual biomass thermal project located in Toraghat, Ghior, Manikgonj, Bangladesh (theHost Country) to supply process steam as well as to meet process heat requirement in their particle board

processing plant.

APBML has started its production of particle board in 1999 and become the largest producer of timber

substitute in local market. Recently, it is going to expand its production with the installation of a Medium

Density fiberboard (MDF) plant in their factory which will increase its thermal energy demand

significantly. To meet the excess demand, APBML replaces the old dual fuel (Oil & Natural Gas) fired

thermal oil heater of 3 MWth capacity with a 16 MWth biomass fired thermal energy generation plant. Thenew plant being integrated with a central dust collection system planned to utilize the maximum amount

of production dusts and internal off-cuts along with different categories of waste biomass collected from

outside sources.

Thermal oil being the primary heat conducting media heated by flue gas in a biomass combustor suppliesheat to different stages of production along with providing heat to a steam generator for process steam

generation. The flue gas after heating the thermal oil is to be passed through an economizer and MDF

dryer depending on the demand of the production. In the steam generator 10 TPH steam @ 6 MPa can be

generated. The total capacity of energy plant is of16 MWthe.

The project once fully installed will be able to meet the total thermal energy demand of the particle board production and help reducing carbon dioxide emissions by offsetting fossil burning for same amount of

heat generation. At the absence of the project activity the steam would have been generated using diesel

since natural gas the main fuel of the country is facing serious shortage in recent time. The Project

Developer has also installed a central dust collection system to collect wood dust from production areas ina meticulous way. Besides, there is arrangement to collect waste biomass from its own production facility

and neighboring plant that is suitable as fuel which otherwise would have been stockpiled. The minimumquantity that has been secured is around 2,500 tonnes a month (or 30,000 tonnes per year). The different

types of organic materials that will be combusted for energy plant are the followings:

Table: Source of Residual Biomass for APBML Project

Category of waste Specific type Quantity (tons/day) Source

Wood dust from production

Wood dust, sandingdust

12 Internal

APBML Off cuts MDF off-cuts 5 Internal

Particle off cuts 12

Chipper oversized

wood

6 Dolphin Match Factory

Undersized chips 3Match factory

waste

Roller 12

Veneers 12

Splint 2

Saw mill waste Saw mill waste Rest as required a)Lata Enterprise

b)Five star enterprise

c)M/S Khadija Tradersd)Joy Joya Enterprise

e)M/S Azam traders


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Category of waste Specific type Quantity (tons/day) Source

f)Abu Hurayna Enterprise,

Horirampur

h)Shown Enterprise, Manikgonji)M/S Monoara Traders

j)Sadia Traders

All types of waste biomass previously stockpiled in the respective factory premises where there is no

open burning. Instead of dumping them in the landfill after a certain course of time, those are now fed toAPBML Energy plant site so the plant will be using fresh waste. Those biomass residues therefore are

considered as renewable. Also, since the most of the residues generated inside and rests are collectedfrom neighboring facilities, emission related to fuel transportation is almost negligible for APBML.

The project will claim emissions reductions through (1) avoidance of fossil fuel for heating thermal oil

heater and (2) avoidance of methane production from biomass decay through controlled combustion. The project is estimated to reduce approximately 40,000 tonnes of CO2 per annum on an average.

By utilizing waste biomass to displace fossil fuel in energy generation, the Project will contribute to thedevelopment of renewable energy sources of Bangladesh. The controlled combustion of biomass in the

combustor offers a more environmentally sound means of disposal of biomass waste residues. In addition,

the use of domestically available biomass as an energy resource helps conserve foreign exchange by

reducing the reliance on imported fossil fuels to meet the country’s ever increasing energy requirements.

Other expected benefits from the project include:

• Ensure clean and healthy production environment for worker.

• The multiplier effect of this investment is likely to bring additional benefits such as increasedemployment opportunities in the area where the project is located. Around 30 new positions inthe field of technical and administrative area will be created for ensuring the smooth operation of

the plant.

•

It increases the diversity and security of energy supply of APBML.• It contributes towards a decrease in fossil fuel consumption.

• The project will act as a clean technology demonstration, encouraging development of biomassenergy generation facilities throughout Bangladesh and act as a model for the replication across

the region.

Moreover It contributes towards meeting the Government’s renewable energy policy which encourages

generation of power and heat from renewable sources.

A.2. Location of project activity

A.2.1. Host Party(ies)Bangladesh

A.2.2. Region/State/Province etc.Dhaka

A.2.3. City/Town/Community etc.Manikgonj


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A.2.4. Physical/Geographical locationThe plant is located at 23.51° N 89.57° E. It is situated on the bank of the river Kaliganga and 3 km awayfrom the district town Manikgonj. The location of the plant is indicated in the geography map of

Bangladesh below.

Figure: Geographic location of the project in country map

A.3. Technologies and/or measures

The project falls under UNFCCC sectoral scope 1 (Energy industries, renewable/non-renewable sources)

and 13 (waste handling and disposal). The project conforms to the project category I. Since the project

reduces anthropogenic emissions by sources while maintaining a delivered capacity of less than 45 MW th.The project will be generating approximately 16 MW th including 10 TPH steam @ 6 MPa therefore it

falls under type I category.

The project conforms to the project category III since the project comprises measures that avoid the

production of methane from biomass dumping in the nearby landfill or other organic matter that would

have been otherwise left to decay as a result of anthropogenic activity, and directly reduces less than 60kilotonnes of CO2.

Akij Particle has procured the capital machineries of the energy plant from renowned Chinese boiler

manufacturing companies, Changzhou Union Boiler & Pressure Vessel Co. Ltd. Other important

components of the system are as follows:

a) Main oil circulation pump (capacity 350 m3/hr) from KSB Germany with Siemens motor

b) Siemens PLC S7, 300 with SCADA systemc) Chipper is from Klockner, Germany

d)The number of main hot oil coil is 4 and each of 6” diameter , Helical type.

Project location


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At the outset, wood and other biomass residues are sorted and chipped in chipper machines. With the helpof conveyer belt and hydraulic system, the chips are then taken to the grate of the furnace. By means of a

central dust collection system a good amount of wood dust is collected from the production process andused as combustion fuel. With a forced draft fan air is propelled to facilitate combustion in different

points of the grate. The average pressure maintained inside furnace is about -200 pa and temperature isabout 400-600°C. Thermal oil (heat conducting media) passes through a radiation heater and a convection

heater at a flow rate 600 m3/hr and gets sufficiently heated at a temperature of around 230~255°C. Withthe burning of biomass hot flue gas generated and allowed to go through an economizer for preheating the

water that goes to boiler. An Induced Draft Fan (IDF) delivers flue gas according to the demand of theMedium Density Fiber (MDF) dryer. Thermal oil followed by a closed loop circulating system delivers

heat to steam generator & other different production points wherever required.

There are five dust collectors in total to cover the whole production units of which three is dedicated forMDF plant. All of them are antistatic filter bag type dust collector with automatic impulse forced air

cleaning system. Three for MDF plant are of 10000 m3/hr capacity (Kunming wood based panel

machinery, China) each where as rest two are of 33,173m3/hour each (BRZ Engineering, Pakistan)

Source of power to meet the auxiliary energy demand of the energy plant is the gas fired captivegenerators of APBML. The detail schematic diagram along with plant lay out is furnished below.

Figure: Schematic diagram of Biomass fired Energy Plant at Akij Particle


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Figure: Application of the Thermal Boiler in Particle Board Line

(Source: Union Boiler, China)

Figure: Application of the Thermal Boiler in MDF Board Production Line(Source: Union Boiler, China)

A.4. Parties and project participants

Party involved

(host) indicates a host

Party

Private and/or public entity(ies)

project participants

(as applicable)

Indicate if the Party involved

wishes to be considered as

project participant (Yes/No)

Bangladesh (host)• Akij Particle Board Mills Ltd.

• Bangladesh Carbon, RahimafroozRenewable Energy Ltd.

No

SwedenTricorona Carbon Asset Management

Pte Ltd.Yes

A.5. Public funding of project activityThere is no public funding available for financing this type of project activity in Bangladesh.


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SECTION B. Application of selected approved baseline and monitoring methodology

B.1. Reference of methodology

The following baseline and monitoring methodologies are applicable to the project activity:

• Type I.C. (reference AMS-I.C.) – “Thermal energy production with or without electricity” – for

the steam generation component of the project activity, version 19, 3 June 2011

• Type III.E. (reference AMS-III.E.) – “Avoidance of methane production from decay of biomassthrough controlled combustion, gasification or mechanical/thermal treatment” – for the avoidance

in the production of methane from organic material that would have otherwise been stockpiled,

version 16, 17 July 2009

B.2. Applicability of methodology

The project conforms to the project category I.C. since the project is a renewable energy facility (using

biomass of renewable category) that reduces anthropogenic emissions by sources while maintaining an

installed capacity below 45 MWth.

The project conforms to the Type III small-scale definition. since the project comprises measures thatavoid the production of methane from biomass or other organic matter that would have otherwise been

left to decay as a result of anthropogenic activity, and reduces less than 60 kilotonnes of carbon dioxide

equivalent annually.

B.3. Project boundary

As referred to in Appendix B for small-scale project activities:

• The project boundary for type I.C. (AMS-I.C.) projects is the physical, geographical site of therenewable energy generation. In this case, the project boundary refers to the biomass plant and the site

where the fuel combustion affected by the fuel-switching measure occurs.

• The project boundary for type III.E. (AMS-III.E.) projects are the physical, geographical site where thetreatment of biomass takes place. In this case, the project boundary refers to the biomass plant, the site

where the solid waste would have been disposed in the absence of the project activity and the originalwaste disposal site.


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Figure B.3.1-Project Boundary

Source GHGs Included? Justification/Explanation

B a s e l i n e

s c e n a r i o

Source 1 CO2 Yes Conventional fossil fuel fired thermal energy

generating system

Source 2 CH4 Yes Uncontrolled land-filling of stock piled biomasswastes

P r o j e c t

s c e n a r i o

Source 1 CO2 Yes Emissions from grid electricity consumption to run the

plant auxiliaries

B.4. Establishment and description of baseline scenario

The baseline scenarios to the project activity for heat generation are:

Baseline Alternative 1: Use of cleaner fossil fuels such as Natural Gas or Liquefied Petroleum Gas(LPG) for heat generation

Bangladesh being a mono-fuel based country is highly dependent on natural gas supply for all type of

commercial energy usage. Unfortunately gas production significantly dropped in recent time and there is

little chance to improve the situation over night. Energy crisis become prevalent in power generation,industrial sector and residential energy usage as well. Proven reserve of gas as well as possibility of

finding new reserve is not enough to overcome the demand supply gap in the country. In this scenario, the


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national gas distribution company does not expand the gas supply to the project vicinity as well as to the

whole country for indefinite period of time. As such, this is ruled out as an alternative baseline scenario.

Baseline Alternative 2: Installation of other forms of heat generation systems

An alternative to the installation of biomass Thermal Oil Heaters is biomass steam boilers, with steam

used for direct heating. Steam boilers are significantly different in design and technology from ThermalOil Heaters. The use of steam for direct heating will necessitate a major change in the entire design of the

production lines, and command a substantial capital investment. The plant processes being heat sensitive,requires very high temperatures of approximately 230-255°C range which is difficult to obtain by direct

steam heating system. For example, a steam with a temperature of 240°C requires a pressure of around 34

bar in the saturation region. APBML has been utilizing Thermal Oil Heaters since the beginning of plant

operations. There are no other feasible options for heating the plant. Consequently, this scenario is ruledout as a plausible alternative.

Baseline Alternative 3:The proposed project activity undertaken without being registered as a CDM

project activity

The baseline alternative to undertake the project without being registered as a CDM project activity

would not have been implemented, since this technology is a new technology application in the industry,and therefore carries the risks associated with new technology. There is also a higher level of investment

for a biomass Thermal Oil Heater as compared to the installation of new fuel oil Thermal Oil Heaters, or

continuing with ‘business-as-usual’.

The project activity may also face barriers of continuous biomass supply in the long run. Supplies of

wood chips or wood residues are limited, since they have no economic value. Wood residues are availablein very small quantities from a large number of stakeholders such as sawmills, plywood ,furniture

manufacturers and other sister concerns of Akij particle throughout the region. However, there is no

systematic collection or distribution system that can establish wood residues as a feasible alternative fuel.In the existing market of the Host Country, biomass suppliers are unwilling to enter into long-term

contracts, or provide a fixed price supply; consequently, biomass systems become attractive only wheresupply is sourced internally. Hence the project developer is vulnerable to fuel price increase which has

been found in other waste to energy projects in the host country. In Dhaka Tobacco industry- a sister

concern of the project developer the price of rice husk has been increased three times compared to thefuel cost during the start of a rice husk fired project. Therefore the project faces uncertainty in both fuel

supply and cost point of view hence would be attractive only with CDM benefit.

While the marginal cost reductions of switching from fossil fuel do exist, there are still significant barriers

that would prevent the implementation of the project activity without CDM. With CDM, the alleviated

barriers and potential financial returns will tend to outweigh the non-financial risks, and would assist inmitigating potential operational risks or future losses.

Business-As-Usual Scenario:

The business-as-usual scenario utilizing fuel oil based Thermal Oil Heaters is a scenario that is proven,represents the lowest risk and least operational complexity, requires lower investment and maintenance.

The scenario also does not face any technological barriers, prevailing practice barriers, or compliance

issues in continuation of current practices.


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Baseline Scenario:

There are no other probable baseline scenarios, and as such the ‘Business-As-Usual’ scenario which is the

utilization of the fuel oil fired Thermal Oil Heaters is considered as the appropriate baseline scenario. Itconforms to project category I.C.’s baseline, since the project is a facility that uses biomass to provide

thermal energy while displacing a fossil fuel based system and reducing anthropogenic emissions.For thermal energy generation using fossil fuels, the baseline emissions are calculated as follows:

BEthermal ,CO2,y = (EG thermal , y /η BL,thermal ) * EF FF, CO2

Where BEthermal ,CO2,y is the baseline emissions from heat displaced by the project activity during the year yin tCO2e, EG thermal , y is the net quantity of heat supplied by the project activity during the year y (TJ),

EF FF, CO2 is the CO2 emission factor of the baseline fossil fuel.

The baseline scenarios to the project activity for waste disposal under AMS III E:

Three different scenarios were considered for all the different types of biomass:

- Stock-pilling the biomass in the facility area

- Land-filling the biomass residues in the landfill

- Selling to villagers

In the host country industrial waste disposal practice is not yet established in a systematic manner.

Awareness guided by effective waste disposal regulation can ensure good practice to systematic waste

disposal by the residential, commercial and industrial sector. ‘National 3R Strategy for waste

management’ published by Department of Environment (DOE) of Ministry of Environment and Forests

(MOEF) in December 2010 expresses “ Existing infrastructure for waste management shows that wastecollection efficiency in different urban areas varies from 37% to 77% with an average of 55%. The

overall waste collection situation is not very satisfactory. Huge amount of uncollected waste, (a high

proportion of which is organic), creates nuisance and pollutes the local environment quickly. Therefore,

frequent removal is absolutely necessary for avoiding unsightly and unhygienic surroundings”….” Lowcollection coverage, unavailable transport services, and lack of suitable treatment, recycling and disposal

facilities are responsible for unsatisfactory waste management, leading to water, land and air pollution,and for putting people and the environment at risk ”.

Regarding industrial practice, ‘lack of incentive or support from government to promote and supportcleaner production practices amongst the industries’ is referred as one of the major constraint in the same

report. Since the wastes generated from this type of factories not falling under polluting category the

usual practice is to keep the residual wastes stockpiled in respective factory site and openly dump on the bank of river Tora in the project vicinity. Stockpiling of the biomass waste in the facility area can be

considered as temporary measures but never as a permanent one since in a factory it’s not viable to keep

huge waste piles. Therefore, without the project activity, all the residual biomass would have beendumped in adjacent to river bank.

Lack of available site of land-filling is pointed in the report as one of the major constraints in handling

waste disposal issue in the host country. Therefore, land-filling the biomass waste in a controlled landfill

facility is ruled out as an alternative baseline in Bangladesh due to unavailability of a managed site andadditional transportation arrangement to do so. “Ultimate disposal of all types of waste is done crudely in

open dumps, lowlands or water bodies in an unsanitary manner. As a result, the surrounding environment

of the dumpsites is barely hygienic. The increasing demand for landfill is also a big problem for theauthority to find suitable lands for dumping wastes.”


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Selling waste to local villagers as a cheap energy source is a very limited option and hence ignored due to

the availability of similar category of waste at free of cost from agricultural residue. According toBangladesh Bureau of Statistics (BBS) total biomass uses in Bangladesh is 65 million MT of which

around 80% is available from agricultural waste. 90% of the biomass is used as domestic fuel for cookingin a very inefficient manner. Most of the agro residues are like cow dung, rice straw or leaves (as shown

in the Table B.4.1) which can be freely collected by poor community people as indigenous energyresource. So this is also ruled out as a baseline alternative since residual biomass is not commercially

marketed as a usual practice.

Table B.4.1-Use of Agricultural Waste as Fuel in Bangladesh (in million MT)

Year Cow dung Jute

Stick

Rice

Straw

Rice

Hulls

Bagasse Fire

wood

Twigs

Leaves

Other

Wastes

Total

2000-01 8.2 2.2 18.75 6.4 1.3 6.2 3.1 2.8 48.95

2001-02 8.2 2.3 18.49 6.5 1.4 6.4 3.1 2.9 49.29

2002-03 8.2 2.2 18.60 6.6 1.4 6.6 3.2 3.0 49.80

2003-04 8.3 2.1 18.60 6.5 1.5 7.2 3.3 3.1 50.50

2004-05 8.4 2.0 18.50 6.5 1.5 7.8 3.3 3.2 51.20

Source: Bangladesh Bureau of Statistics (BBS), 2007

B.5. Demonstration of additionality

ADDITIONALITY:

According to Attachment A to Appendix B of the ‘Simplified modalities and procedures for CDM small

scale project activities’, evidence as to the proposed project’s additionality may be offered under the

following categories of barriers: (a) investment barrier, (b) technological barrier, (c) prevailing practice,

and (d) other barriers. This project activity demonstrates strongest barriers in the field of technological,

security of biomass fuel supply and prevailing practice.

Technological Barrier

A biomass Thermal Oil Heater system is much more complex than a conventional fuel oil fired ThermalOil Heater system. More techno-operational tasks are involved throughout the biomass fuel delivery

chain, operations, maintenance, and ash handling, posing an operational risk to the project developer. Forexample; the heater coils or the heat exchangers will need to undergo major programmed maintenance,

which includes clearing soot and slag build up, more or less monthly, for duration of a few days, while

grate ash and fly ash will require regular removal every few hours. The downtime of the biomass system

can be considerable and long-term reliability and performance is comparatively low than conventionalsystem. Biomass thermal oil systems inherently have low efficiencies compared to fuel oil or natural gas

Thermal Oil Heaters, which in turn lead to high fuel consumption, excess soot and ash, and ultimatelydegradation of the heater system. The project utilizes a combination suspension fired and stationary grate

combustion system, and a unique helical coil design to maximize the thermal efficiency of the heatexchange system. It is a technologically advanced system compared to conventional oil or biomassheaters.

APBML will also require an estimated team of 30 dedicated personnel to operate the biomass plant. The

existing baseline heaters do not face these issues. The baseline system is a series of static “switch on,

switch off” systems that are able to operate continuously for extended periods throughout the year,

requires minimum dedicated personnel to operate the plant, requires minimal routine maintenance, andrequires annual servicing.


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Erosion of the outer heating surfaces in a biomass thermal oil system is unpredictable due to the

abrasiveness of biomass, and heating coils need to be kept in stock for when replacement is required.Most manufacturers do not provide long-term guarantees for Thermal Oil Heater coils, and there is no

investment protection for project developers since coils may need to be replaced approximately every 5years or less depending on the type of biomass used, operation, and quality of coils. In contrast, fuel oil or

natural gas Thermal Oil Heaters requires more or less annual servicing, while coils require replacementafter every 15 to 20 years. This inequality makes this type of biomass technology unattractive.

APBML uses high quality alloy steel for heating coil in place of normal stainless steel to get better

performance in terms of soot abrasion. Still the lifetime of the biomass thermal oil system is halfcompared to conventional fuel oil system.

The biomass-fired Thermal Oil Heater system implemented as a project activity differs significantly from

conventional fuel oil systems. While fuel oil Thermal Oil Heater systems are common, biomass heatersare extremely rare, and the implementation of the project activity using residual biomass is the first in the

particle board industry, applying an advanced Thermal Oil Heater design that utilizes an efficient heat

exchanger system. Heat generation in a biomass system is known to be inconsistent due to variations in

calorific value and moisture content of biomass. The particle board production process requires a high

and consistent carrier oil temperature since the process is heat sensitive. The fuel oil Thermal Oil Heatersystem operates with a temperature variation of less than ±5°C. This is a “continuous process” with the

manufacturing facility operating approximately 310 days per year. Disruptions in energy supply due totechnical issues or a lack of biomass feedstock can result in large product quantities rendered defective.

Moreover significant time will be lost to reset production lines and restart production resulting in

substantial losses of approximately 100m3 production/day. For APBML, the largest particle board

manufacturer in Bangladesh, cost of energy being small relative to product revenue, it is important toensure smooth energy supply and production performance rather than cost savings by fuel switch from

fuel oil to residual biomass.

Additionally, the biomass Thermal Oil Heater system cannot be operated parallel to the fuel oil system to

mitigate performance risks; since thermal oil fluid operating pressure in both systems is differentComparison of a biomass thermal oil system with a fuel oil system is presented in Table below.

Table B.5.1-Comparison between Fuel oil and Biomass Thermal Oil System

Parameter Fuel oil Thermal Oil System Biomass Thermal Oil System

Operation and

Performance

Able to run continuously at

full load

Performance and thermal output cannot be

guaranteed. Rapidly degrading performance due

to soot/clinker build up on heat exchanger coil

Maintenance Annual servicing Hourly removal of ash. Major maintenance

required every month

System failures Small static units risk of fuel

oil nozzle choking. Routinemaintenance is performed

during plant shutdowns tomitigate this risk

Complex system with numerous mechanical

parts, high risk of equipment malfunction andhigh hidden cost

Maintenancemanpower

Negligible Estimated a total of 30 persons (2/3 shift basis)

Reliability Proven in operations and in

practice in similar industries

Low reliability. No such proven installation exist

in host country

Coils Coil require replacement after15 to 20 years

Estimated replacement after 10 years. Totalfuture costs cannot be appropriately quantified at

present


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Barriers Due to Prevailing Practice

The country being the most densely populated country is severely threatened by waste disposal issue dueto growth of population, unplanned industrialization, rapid urbanization and prevailing barriers of land

infrastructure, capital and institutional framework. National 3R strategy strongly argues for theimportance of an integrated national policy and support to encourage and enhance awareness for reusing

and recycling of waste. Industrial waste sector especially for solid waste is comparatively a lesshighlighted area in terms of potential of resource recovery. Only seven sectors have been identified as

hazardous in terms of waste solid waste disposal and the other sectors are still beyond legal binding.Waste effluent treatment and Municipal Solid Waste disposal is gradually coming under attention of

concerned Government and Non government players.

Regarding biomass uses on a commercial basis, only one rice husk based power generation plant isinstalled in Kapasia, Gajipur by a private company under financial assistance of World Bank. Only one

biomass based small boiler is running with a capacity of 2.5 ton in a furniture manufacturing factory

located at Kashimpur in Jirani Bazar of Gazipur district. Therefore, in case of non hazardous solid waste,

the prevailing practice in waste disposal in industrial sector neither very well structured nor utilized in

terms of energy recovery. The national 3R strategy highlighted the lack of policy and motivation andargues for the importance in the quoted texts “Biomass can be a future source of fuel power generation if

properly nurtured. Due to lack of policy and incentive package from the government, investors are lessinterested in this sector. There is a need for adjusting the pricing power generated from biomass

compared to conventional power pricing .” …“Tax incentives should be given to technologies related to

alternative sources of power, such as biomass based boilers. Incentive will encourage private sectors to

look for cleaner technologies which in the long run can reduce the use of fossil fuel and thus reduceemission of green house gas. ”

Therefore, the barriers due to the prevailing practice are proven to be unfavorable for such type of

residual biomass project as adopted in APBML. The Prevailing Practice in host country can specified as:

A. There are no biomass based integrated Thermal Oil Heater technologies apart from this project so

far implemented in the particle board production industry in host country which demands aThermal Oil Heater system and not a steam boiler, as the process requires high consistent

temperatures.

B. There is only small biomass fired boiler with limited capacity so far installed in a furniturefactory in the Host Country, which is not technologically integrated like central Heat Generation

Plant.

C. There is a low prevalence in terms of the general utilization of biomass itself as a source ofindustrial energy in the Host Country.

D. There is a low prevalence in terms of the general utilization of waste as a source of industrialenergy in the Host Country and is disposed in a non environment friendly manner

How CDM Alleviates the Barriers

This less technologically advanced alternative to the project activity using fossil fuel involves lower

performance risks, operational risks, fuel supply risks, quality uncertainty than the proposed activity, and

therefore is the most plausible business-as-usual scenario. The alternative of implementing a biomasssystem without CDM is not attractive due to technological barriers and the prevailing practice in the

industry. As a conclusion, the barriers substantiate the project’s additionality.


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Apart from proven conventional technological option, the implementation of biomass fired energy plant

with CDM will accelerate carbon market potential in the country. Hence low aware carbon market likeBangladesh will definitely be motivated from this type of initiative. Once such project is awarded with

CDM benefits, the technology suppliers would also be interested to take financial risks in the form of partnership in managing capital to implement this type of environmentally sound projects throughout the

country.

CDM Consideration

The project start date is before registration at UNFCCC, hence the serious consideration of CDM isdemonstrated as per “Guidelines on the demonstration and assessment of prior consideration of the

CDM” Version 04.

With a vision to expand and in search of scope for improvement in APBML production facility, the topexecutives of the concern went to China and visited similar plants in 2007. Based on their tour

experience, management was interested to explore waste to energy generation aspects considering its

suitability to handle biomass wastes from production process more conveniently. It was expected to meet

the energy demand of any upcoming potential capacity expansion, more specifically of inclusion of new

MDF line. An initial feasibility was carried on the prospect of refused biomass based thermal oil heaterwhich recommended in favor of the technology focusing the development of an alternative energy source,

ease of waste handling and CDM benefit. The project got formal approval from board on 17 July 2008with a provision of CDM. The project launched on 31 July 2008 through signing contract with the

supplier in presence of Group Managing Director in a visit to China.

The project was primarily intended to handle disposal problem of waste generated in-house and in theneighbouring sister concern i.e. Akij Match factory. The volume of waste generated was quite big and

disposal of waste especially in the rainy season was a regular hassle. It was used to be dumped in factoryyard or left outside for free distribution or selling at a token rate. Due to space, health and environmental

issues and risk of fire hazards in the dry season, it used to create a regular burden for the factory as it was

not adequately facilitated with good disposal practice. Moreover absence of nearby controlled Landfilland opportunity of selling waste bio-mass as a valuable by-product (as described in above Section B.5 in

barriers due to prevailing practice) were the two main constraints of proper waste disposal. During therainy season and even over the year of continuous exposure to open environment, the dumped waste gets

wet and was even difficult to sell or distribute to others and thus creates water logging.

As it was located just by the river, Department of Environment (DOE) of GoB randomly monitors the

waste disposal practice. For this reason, APBML management was seriously thinking to adopt permanent

and environment friendly means of waste management. The waste to energy plant was integrated with theupcoming production expansion plan of the factory so designed to handle the waste from in-house sources

as well as to utilize local waste resources to sustain the future plant operation.

After subsequent progress on APBML expansion plan and finalization of specifications of energy plant

accommodating MDF facility, LC was opened to procure part of the capital machineries (thermal oil

heater) on 17 March 2009. The capital machineries received on site in five shipments starting from 28April to 18 September, 2009 and partially commissioned for test trial by the end of December

incorporating only existing particle board manufacturing facility. After installation of dust collectionsystem and MDF plant in APBML in December 2010, the energy plant was integrated with the whole

system with full features. Addressing technical difficulties and adjusting draft, several trial runs took

place and the energy plant was fully operational on July 17, 2011.

The management being informed by their Chinese trader about CDM potential of similar plants and was

very keen to apply for such credit. Although Akij Board of directors decided to harness CDM benefit to

sustain this initiative but they were not able to find adequate information or manage technical support


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regarding CDM project development from the very beginning. Only a very few donor backed project was

under CDM consideration in 2008-2010 in the host country hence truly difficult for a private entrepreneurto obtain technical advice from DNA or CDM consultants available in the extremely unaware host

country situation. There was formal communication initiated by APBML management to DoE expressingthe emission reduction merit of this waste to energy plant as well as intention of secure CDM benefit.

Meantime, Bangladesh Carbon of Rahimafrooz Renewable Energy Ltd. (RRE) started its formal market

campaign as being the only private CDM project developer in the host country. It took almost a year fromof its registration to come up with commercial offer for developing CDM projects for the entrepreneurs.

Bangladesh Carbon informed by DOE on this project showed interest to render CDM projectsdevelopment services to APBML. After successive interaction followed by BD Carbon team site visit and

a preliminary CERs assessment on the project, APBML expressed their willingness to go with BD

Carbon for CDM project registration.

RRE signed an official CDM Project development Services Agreement on 11 th August, 2010 with a

provision to share emission reduction credit with APBML. The project developer contacted several

validators since 2010 as evidenced and finally been able to engage Tricorona Carbon Asset Management

Pte Ltd to provide technical support in different stages of project life cycle. The PDD was submitted to

DNA for host country approval on July 2011 and an ERPA was signed with Tricorona as buyer of CERson February 2012 in parallel to the physical execution of the project. Actions in favor of securing CDM

status is listed as follows:

Chronology of

Events

Description Date Document

available

Awareness of CDM

prior to the Project

activity start date

The project proponent visited similar projects

in China and came to know about CDM from

their Chinese traders.

2007 Chinese visa of the

personnel visited

site as supportingdocument

CDM were a

decisive factor inthe decision to

proceed with the

project

Carbon credits were one of the deciding

factors for management to approve the Project proposal since the project was a first of its

kind in the host country and required a large

investment. The board approved the project based on a rough cut feasibility made on the

proposal received from Chinese Trader with

recommendation in favor of theimplementation of such technology for

convenience of waste handling and prospect

for applying for CDM credit.

17 July

2008

Copy of BOD

resolution

Continuing and real

actions were taken

to secure CDM

status in parallelwith Project

implementation

1. Project owner informed DNABangladesh regarding merit of

earning emission benefit from the

project

September

2009

Copy of

acknowledged

project concept

note by Departmentof Environment

(DoE), Bangladesh

2. Project sponsor seek CDM ProjectDevelopment support from DoE ofDNA to develop project

January

2010

Copy of Letter as

received

3. Bangladesh Carbon was nominated byProject Sponsor to render CDM

project service

July 2010 E-mailcorrespondence

available

4. MOU under a CDM service August Newspaper cutting ,


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Chronology of

Events

Description Date Document

available

framework partnership agreement on

basis of CERs sharing signed withRahimafrooz Renewable Energy Ltd.

11, 2010 Copy of signed

Service

5. Notify UNFCCC as well as localDNA about the Project through Prior

consideration

October21, 2010

In UNFCCCwebsite

6. Communication with prospectiveDOE about validation

August

21, 2010

E-Mail

correspondenceavailable

7. Submission of PDD for HCA July 2011 Copy of Letteracknowledged by

DNA

8. ERPA signed with Tricorona, Sweden 29 Feb2012

Copy of contract

9. Obtain Host Country Approval from

DNA

18 Nov

2012

Copy of Approval

Letter from DNA

B.6. Emission reductions

B.6.1. Explanation of methodological choices

The project will claim emission reductions through the following two components:

- Displacement of fuel oil or diesel usage for thermal energy generation for process application

- Avoidance of methane production from biomass decay through controlled combustion.

Also, the emission reductions estimations from the methane avoidance component are below 60 ktCO2/yr

during each year of the all crediting period. Therefore, the project fits into the small scale category. Thismethodology will then be used to claim the emission reductions from the methane avoidance component.

B.6.2. Data and parameters fixed ex ante

Data / Parameter Ey,fuel

Unit tCO2/tonnes of fuel

Description CO2 emission factor for the combustion of the auxiliary

fuelDiesel

Source of data IPCC default value

Value(s) applied 3.185

Choice of dataorMeasurement

methods and procedures

IPCC value

Purpose of data For calculation of PEy,comb

Additional comment -


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Data / Parameter CTy,w

Unit Tonnes/truck

Description Average truck capacity for waste transportation

Source of data Estimated

Value(s) applied 20



Based on information from the Plant Management if any

Purpose of data for calculation of PEy,transp

Additional comment Since the production facility is very adjacent to EnergyPlant, incremental diesel consumption for Bio-mass

transportation is negligible

Data / Parameter DAFw

Unit Km/truck

Description Average incremental distance for waste transportation.Source of data Estimated

Value(s) applied 0



Since the most of the waste is generated internally and

external waste sources are located within 10 km outside the production facility is no incremental distance for waste

transportation.



Data / Parameter EFCO2

Unit tCO2/km

Description CO2 emission factor for fuel use due to transportation





IPCC value of this parameter is used.




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Data / Parameter CTy,ash

Unit Tonnes/truck

Description Average truck capacity for combustion residuestransportation.


Value(s) applied 20



Based on information from the project developer.



Data / Parameter DAFash

Unit Km/truck

Description Average incremental distance for combustion residues

transportation.Source of data Estimated

Value(s) applied -



Since the ash disposal unit is adjacent to Energy Plant, there

is no incremental distance for combustion residues to betransported.



Data / Parameter Dfuel

Unit kg/l

Description Density of fuel (Diesel) used

Source of data IPCC Value




IPCC value

Purpose of data for calculation of PEy,power



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Data / Parameter EFfuel

Unit tCO2/tonnes of fuel

Description CO2 emission factor for fuel use

Source of data 2006 IPCC Guidelines




The value used is for diesel since this is the type of fuel being used by the project. In case other type of fuel is used,

the latest IPCC value will be applied.

Purpose of data for calculation of PEy,power


Data / Parameter F

Unit Fraction of methane in the SWDS gas (volume fraction).

Description EB 26, Meeting report, Annex 14: “Tool to determine

methane emissionsSource of data 2006 IPCC Guidelines




The value used is the default value recommended by IPCC.

Purpose of data for calculation of BE,CH4, SWDS,y

Additional comment This factor reflects the fact that some degradable organic

carbon does not degrade, or degrades very slowly, under

anaerobic conditions in the SWDS. A default value of 0.5 isrecommended by IPCC.

Data / Parameter DOC j

Unit -

Description Fraction of degradable organic carbon (by weight) in the

waste type j

Source of data EB 26, Meeting report, Annex 14: “Tool to determine

methane emissions avoided from dumping waste at a solidwaste disposal site”.




The biomass waste used by the project is woody biomasstaken from surrounding facilities. The waste type that can

be attributed is then wet wood and wood products.




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Data / Parameter DOCf

Unit -

Description Fraction of degradable organic carbon (DOC) that candecompose.

Source of data Source of data used: EB 26, Meeting report, Annex 14:“Tool to determine methane emissions avoided from

dumping waste at a solid waste disposal site”.




-



Data / Parameter MCF

Unit -

Description Methane correction factor.


methane emissions avoided from dumping waste at a solid

waste disposal site”.




IPCC Default value



Data / Parameter kj

Unit -

Description Decay rate for the waste type j.


methane emissions avoided from dumping waste at a solidwaste disposal site”.




Reviewing meteorological data for Bangladesh, the climaticconditions that best reflect are: MAT>20◦C and

MAP>1000mm per annum.




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Data / Parameter φ

Unit -

Description Model correction factor to account for model uncertainties.

Source of data EB 26, Meeting report, Annex 14: “Tool to determinemethane emissions avoided from dumping waste at a solid

waste disposal site”.




-


Additional comment Oonk et el. (1994) have validated several landfill gas

models based on 17 realized landfill gas projects. The mean

relative error of multi-phase models was assessed to be

18%. Given the uncertainties associated with the model andin order to estimate emission reductions in a conservative

manner, a discount of10% is applied to the model results.

Data / Parameter OX

Unit -

Description Oxidation factor

Source of data Source of data used: EB 26, Meeting report, Annex 14:

“Tool to determine methane emissions

Value(s) applied 0



Source of data used: EB 26, Meeting report, Annex 14:“Tool to determine methane emissions

Purpose of data for calculation of BE,CH4, SWDS,y.

Additional comment No methane from SWDS is oxidised in the soil or other

material covering the waste

Data / Parameter OH

Unit Hr

Description Plant operational hours

Source of data Plant Management

Value(s) applied 8,000



Based on a conservative assumption for plant operational

hours.

Purpose of data for calculation of EGy



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B.6.3. Ex ante calculation of emission reductions

Baseline emission reductions calculations:

For AMS-I.C., the simplified baseline is the fuel consumption of the technologies that would have been

used in the absence of the project activity times an emission coefficient for the fossil fuel displaced.

2,*/ CO FF BL y EF EG BEy η =

where:

EGy: The net quantity of heat supplied by the project activity (TJ)EFFF, CO2: The CO2 emission factor for the baseline fuel that would have been used in the baseline plant

(tCO2/TJ)ηBL,thermal: The efficiency of the plant using fossil fuel that would have been used in the absence of the

project activity

The net quantity of heat supplied by the project activity would be monitored with appropriate measures.

Since the project activity is due to expansion of production therefore historical data are not available. Theheat output is basically of two forms i.e. hot oil and hot gas. For baseline calculation, net thermal energy

generation is initially estimated by rated capacity provided by the energy plant supplier for multiplied

with expected operation hour as per production plan.

EGy= Rated Thermal Capacity of plant *OH

The baseline emissions for AMS-III.E were calculated using equations of the simplified modalities and

procedures for small-scale CDM project activities.

The Yearly Methane Generation Potential is calculated using the first order decay model based on the

discrete time estimates method from the IPCC Guidelines, as described in category AMS III.G. The baseline emissions are then:

BEy = BE,CH4, SWDS,y

Where:

BE,CH4, SWDS,y : methane generation potential in the year “y” (tonnes of CH4), estimated as inAMS III-E

In this project, no methane would be destroyed or removed for safety or legal regulations.

To calculate the methane generation potential, the following formula from AMS III-Eshould be used:

Where:

φ: Model correction factor to account for uncertainties (0.9).

f: Fraction of methane captured at the SWDS and flared, combusted or used in another manner.GWPCH4: Global Warming Power for CH4 (value of 21 is used for the first commitment period)OX: Oxidation factor (reflecting the amount of methane from SWDS that is oxidized in the soil or other

material covering the waste).

F: Fraction of methane in the SWDS gas (volume fraction) (0.5).DOCf : Fraction of degradable organic carbon (DOC) that can decompose.

MCF : Methane Correction Factor

W j,x : Amount of organic waste type j prevented from disposal in the SWDS in the year x

(tonnes).

DOC j : Fraction of degradable organic carbon (by weight) in the waste type j


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k j : Decay rate for the waste type j

j : Waste type category (index)x : Year during the crediting period: x runs from the first year of the first crediting period (x=1) to the

year y for which avoided emissions are calculated (x=y).y : is year for which methane emission are calculated.

Reviewing meteorological data for Bangladesh, the following parameters in the “Tool to determine

methane emissions avoided from dumping wastes at a solid waste disposal site” (EB26 meeting reportAnnex14) best reflect the climatic conditions of biomass decomposition: MAT>20◦C and MAP>1000mm

per annum.

Project emissions calculations

For the AMS-I.C, the project emissions will come from the electricity the project will consume from thegrid to operate the biomass plant. The project emissions are then the electricity consumed from the grid in

MWh from the plant times the operational hours per annum times the Carbon Emission Factor from the

Bangladesh national grid in tCO2/MWh. See formula used below:

PEy,IC = Eelec * EEF

Where:PEy,IC: project activity direct emissions through electricity consumption from the grid in the year “y”

(tCO2)

Eelec: Electricty consumed from the grid by the project activity (MWh)

EEF: Electricity Emission Factor in APBML (tCO2/MWh).

For the AMS-III.E, the project emissions formulae are:PEy,IIIE = PEy,comb + PEy,transp+ PEy,power

Where:PEy,IIIE : project activity direct emissions in the year “y” (tonnes of CO2 equivalent).

PEy,comb: emissions through combustion of non-biomass carbon in the year “y”.PEy,transp: emissions through incremental transportation in the year “y”.

PEy,power : emissions through electricity or diesel consumption in the year “y”.

CO2 emissions from the combustion of the non-biomass carbon content of the wastes and from the

auxiliary fuel consumed will be estimated assuming the complete oxidation of carbon to CO 2 in the

combustion.

PEy,comb = Qy,,non-biomass * 44/12 + Qy,fuel,aux * Ey,fuel

Where:

Qy,,non-biomass: Non-biomass carbon of the waste combusted in the year “y” (tonnes of carbon).

Qy,fuel,aux :Quantity of auxiliary fuel used in the year “y” (tonnes).Ey,fuel :CO2 emission factor for the combustion of the auxiliary fuel (tonnes CO2 per tonnes fuel,

according to IPCC Guidelines).

Project activity emissions from trucks for incremental collection activities will be estimated and

considered as project activity emissions.

PEy,transp= (Qy/CTy) * DAFw * EFCO2 + (Qy,ash/CTy,ash) * DAFash * EFCO2

Where:


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Qy : quantity of waste combusted in the year “y” (tonnes)

CTy : average truck capacity for waste transportation (tonnes/truck)DAF : average incremental distance for waste transportation (km/truck)

EFCO2 : CO2 emission factor from fuel use due to transportation (kgCO2/km, IPCC default Values orlocal values can be used).

Qy,ash : quantity of combustion residues produced in the year “y” (tonnes)CTy,ash : average truck capacity for combustion residues transportation (tonnes/truck)

DAFash : average distance for combustion residues transportation (km/truck)

Project activity emissions through diesel consumption used basically for operating vehicles in the factorywill be estimated. To estimate the emissions coming from the usage of diesel, the following formula will

be used:

PEy,power = Qy,fuel*Dfuel*EFfuel

Where:

Qy,fuel: quantity of fuel consumed in the year y (l)

Dfuel: fuel density (kg/l)

EFfuel: fuel emission factor (tCO2/ton fuel)Emissions from the biomass left to decay due to the inactivity of the Plant during its downtime period will

not be considered as project activity emissions.

Leakage calculations

For both AMS-I.C. and AMS-III.E a leakage calculation is required if the generating equipment istransferred from another activity. As no generating equipment is being transferred, there is no leakage

calculation required.

Neither exposure of RDF/SB in anaerobic condition nor selling to outside the project activity is applicable

for this project as mentioned in AMS-III.E. According to AMS-I.C. leakage for collection processing andtransportation for this project is not applicable since there is no emission from collection and processing

of residual biomass in this case and transportation of external waste not exceeding the limit of 200 kmmostly being from adjacent factories.

In addition, following the “General guidance on leakage in biomass project activities”, there are threemain sources of leakage for this type of project activity mentioned as: shifts of pre-project activities,

emission related to the production of the biomass, competing uses for the biomass. Since the project will

be using wood residues as fuel and this product is a biomass residue or waste from industries, leakagefrom competing use of biomass is not applicable for such type of activities. Use of residues is unlikely to

affect the generation of waste i.e. production of wood waste is related with the production of particle

board and same for other factories, hence independent of the project activity, shifts of pre-projectactivities can be ignored. Again percentage of families/households in the community affected by the

displaced project activity (refer to Section B.4 baseline for AMS III.C) being insignificant, leakage can be

considered negligible and assumed to be zero (for leakage less than 10% as mentioned in guideline).Emission for the production of renewable biomass is again not applicable for the project (i.e. no such

activities like use of fertilizer or clearance of land).


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B.6.4. Summary of ex ante estimates of emission reductions

Emission reduction through Thermal Energy generation component for AMS-I.C small scale

methodology:

YearBaselineemissions

(t CO2e)

Project emissions

(t CO2e)

Leakage

(t CO2e)

Emissionreductions

(t CO2e)

2013 36,969 2,808 0 34,161

2014 36,969 2,808 0 34,161

2015 36,969 2,808 0 34,161

2016 36,969 2,808 0 34,161

2017 36,969 2,808 0 34,161

2018 36,969 2,808 0 34,161

2019 36,969 2,808 0 34,161

2020 36,969 2,808 0 34,161

2021 36,969 2,808 0 34,161

2022 36,969 2,808 0 34,161

Total 369,690 28,080 0 341,610

Total number of

crediting years10

Annual

average over the

crediting period

36,969 2,808 0 34,161

Emission reduction through Methane avoidance component for AMS-III.E small scale methodology:

Year

Baseline

emissions

(t CO2e)

Project emissions

(t CO2e)

Leakage

(t CO2e)

Emission

reductions

(t CO2e)

2013 1,082 24 0 1,058

2014 2,127 24 0 2,103

2015 3,137 24 0 3,113

2016 4,111 24 0 4,087

2017 5,052 24 0 5,028

2018 5,961 24 0 5,937

2019 6,838 24 0 6,814

2020 7,685 24 0 7,661

2021 8,503 24 0 8,479

2022 9,293 24 0 9,269

Total 53,789 240 0 53,549Total number of

crediting years10

Annual

average over the

crediting period

5,379 24 0 5,355


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Emission reductions estimations taken both methodologies into account:

Year

Baseline

emissions

(t CO2e)

Project emissions

(t CO2e)

Leakage

(t CO2e)

Emission

reductions

(t CO2e)

2013 38,051 2,832 0 35,219

2014 39,096 2,832 0 36,264

2015 40,105 2,832 0 37,273

2016 41,080 2,832 0 38,248

2017 42,021 2,832 0 39,189

2018 42,929 2,832 0 40,097

2019 43,807 2,832 0 40,975

2020 44,654 2,832 0 41,822

2021 45,472 2,832 0 42,640

2022 46,262 2,832 0 43,430

Total 423,477 28,320 0 395,157

Total number ofcrediting years

10

Annual

average over the

crediting period

42,348 2,832 0 39,516

B.7. Monitoring plan

B.7.1. Data and parameters to be monitored

Data / Parameter Qy,non-biomass

Unit tC

Description Non-biomass carbon of the waste combusted in the year “y”.

Source of data -

Value(s) applied N/A

Measurement methods

and procedures

N/A

Monitoring frequency -

QA/QC procedures -

Purpose of data To Calculate PE ,comb

Additional comment Only biomass waste is expected to be combusted in this project. Hence, this

is not applicable for the existing project activity. However, should non-

biomass waste at any point in time be used, the quantity will be measured.


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Data / Parameter Qy,fuel,aux

Unit Tonnes

Description Quantity of auxiliary fuel used in the year y.

Source of data Measured

Value(s) applied N/A

Measurement methods

and procedures

N/A

Monitoring frequency -

QA/QC procedures -

Purpose of data To calculate PE ,comb

Additional comment Only biomass waste is expected to be combusted in this project.

Data / Parameter Qy,w

Unit Tonnes

Description Quantity of waste combusted in the year “y”.Source of data Measured

Value(s) applied 35,679

Measurement methods

and procedures

Measured and recorded monthly. This parameter will be measured with a

weighbridge.

Monitoring frequency Monthly on actual weight basis

QA/QC procedures According to national standards, weighbridge will be calibrated periodically.

Purpose of data To calculatePE ,transp

Additional comment This is the equivalent of the parameter from the first order decay model:

W j,x.

Data / Parameter Qy,ash

Unit Tonnes

Description Quantity of combustion residues produced in the year “y”


Value(s) applied -

Measurement methods

and procedures

Daily measured and monthly recorded.

Monitoring frequency Daily

QA/QC procedures According to national standards, weighbridge will be calibrated

periodically.

Purpose of data To calculate PE ,transp



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Data / Parameter Qy,fuel

Unit L

Description Quantity of fuel consumed in year y


Value(s) applied -Measurement methods

and procedures

Monthly measured and recorded.

Monitoring frequency Monthly

QA/QC procedures This will be determined on the basis of invoices.

Purpose of data To calculate PE ,power


Data / Parameter W j,x

Unit Tonnes

Description Amount of organic waste type j used in year “x”.Source of data Measured

Value(s) applied -

Measurement methods

and procedures

Measured and recorded monthly. This parameter will be measured with a

weighbridge.

Monitoring frequency Monthly

QA/QC procedures According to national standards, weighbridge will be calibrated periodically.

Purpose of data To calculate BECH4,SWDS,y

Additional comment This is the equivalent of the parameter from the first order decay model:

Qy,w.


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Data / Parameter HG

Unit TJ

Description Heat energy output from thermal oil heater and flue gas

Source of data Measured, qcoilflow, qairflow, tin, tout

Value(s) applied -Measurement methods

and procedures

Heat content is the sum of energy gain by thermal oil from biomass

combustor and energy delivered by flue gas in economizer and MDF.

The mass of thermal oil heated (qoil flow) will be multiplied by the heat

content

( ∆ H oil ) over the output and return oil temperature, to obtain HG y.The massof airflow (qairflow) will be multiplied by the heat content( ∆ H fg ) at the inlet

and exit of MDF. The water flow rate(qwater ) at economizer will be

multiplied with heat content ( ∆ H water ) corresponding to the temperature

gain in economizer.

HGycan be measured directly by a continuous energy meter or heat

calculator.The output units may be in GJ or MWh.

Monitoring frequency Continuous

QA/QC procedures Meters will be calibrated periodically in line with manufacturer’s

recommendations.

Purpose of data To calculate Heat energy output from thermal oil heater and flue gas


B.7.2. Sampling plan

This section details the steps regularly taken to monitor the GHG emissions reductions from the project.

The Monitoring Plan for this project has been developed to ensure that from the start, the project is well

organized in terms of the collection and archiving of complete and reliable data.

CDM Organization and Management

Prior to the start of the crediting period, clear roles and responsibilities will be assigned to all the staffs

involved in the CDM project activity. The project developer will have an appointed person-in-charge

onsite, who will be responsible for monitoring the project emission reductions and data management. All

the staffs involved in the collection of data and records will be coordinated by this person.

Data Monitoring and Collection

Data monitored for CDM purposes will be recorded at the appropriate frequency by the project developer.A person-in-charge will be responsible for managing the collection, storage, and archiving of all pertinent

CDM data and records. All such data will be archived electronically, and regularly backed-up. All datarequired for verification and issuance will be retained for at least two years following the end of the

crediting period or the last issuance of project CERs, whichever occurs later.

For quality assurance, data and records will be cross-checked by the designated person-in-charge prior tostorage and archiving to identify possible errors or omissions. Data will thus have been checked for


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anomalies or other monitoring issues prior to being forwarded to Bangladesh Carbon, Rahimafrooz

Renewable Energy Ltd, the CDM consultant. Bangladesh Carbon will perform a regular final check of thedata and analyze project performance prior to any verification. Moreover, regular internal audits will be

conducted to ensure that the project is in compliance with operational and CDM requirements.

Training will be conducted on-site to ensure that staff is capable of performing designated tasks to highstandards. On-the-job training will be provided by the technology provider for a period of three (3)

months after commissioning, and further extended if necessary (subject to mutual agreement between the project developer and technology provider).Procedures will be developed to deal with possible

monitoring data adjustments and uncertainties, in addition to emergencies.

Maintenance and Calibration of Monitoring Equipment

All equipment will be calibrated and maintained in accordance with manufacturers’ recommendations toensure measurement accuracy and as per national standard practice. Records of calibration and

maintenance will be retained as part of the CDM monitoring system. Data will be read off all CDM

monitoring relevant equipment and collected on site by the plant operation personnel.

Project Activity Emissions Reductions

The amount of thermal energy generated using biomass fuel, HGy, will be calculated based on theamount of heat transferred to the carrier oil and heat delivered by the flue gas in economizer and in MDF.

The mass of thermal oil heated (qoil flow) will be multiplied by the heat content ( ∆ H oil ) over the output

and return oil temperature. The mass of airflow (qairflow) will be multiplied by the heat content ( ∆ H fg ) at

the inlet and exit of MDF. The water flow rate (qwater ) at economizer will be multiplied with heatcontent ( ∆ H water ) corresponding to the temperature gain in economizer.

Alternatively, HGy can be measured directly by a continuous energy meter or heat calculator. The amount

of thermal energy generated using biomass fuels will be compared with the amount of each type of

biomass fuel used i.e. fuel consumption in combustor. The amount of biomass consumed will be used forcalculation of methane avoidance from waste disposal.

Data from the weighbridge is used for invoicing the biomass volume collected from external sources and

hence measured with utmost care. Deductions will be made for project emissions from auxiliary power

consumption.

Electricity consumed as auxiliary power will be recorded through a meter inserted on the dedicated

supply feeder. Any auxiliary fuel is used will be invoiced and recorded as per standard industry practice.

B.7.3. Other elements of monitoring plan

All the parameters used in the monitoring plan of this project, will be monitored using appropriate devices

and archived in rational frequency by a Monitoring Team. The team will consist of one Plant Operations

Engineer, onePlant Maintenance Engineer and one Administrative Executive. The Monitoring Team willroutinely generate report to the Plant Manager.


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SECTION C. Duration and crediting period

C.1. Duration of project activity

C.1.1. Start date of project activity31/07/2008

C.1.2. Expected operational lifetime of project activity15 years

C.2. Crediting period of project activity

C.2.1. Type of crediting period10 years Fixed Crediting Period

C.2.2. Start date of crediting periodThe project is expected to start crediting period by 01/11/2013.

C.2.3. Length of crediting period10 years


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SECTION D. Environmental impacts

D.1. Analysis of environmental impacts

Although the project does not meet the criteria to make an Environmental Impact Assessment report

necessary, the project developers have designed the plant to be environmentally compliant as it mustcomply with all Bangladesh environmental regulations and standards. For safety and operational issues,

the project complies with boiler and other regulations of national authorities. It has also passed thenational compliance standard from the country of manufacture i.e. China in this case.

Moreover, the project itself is an initiative to improve the working condition of the particle board

production facility significantly since it includes a central dust collection system to collect the wood dusts

and use them in energy generation.

Again it inhibits possibility of eutrophication and water logging caused by open dumping of wood waste.

Since the project is located on the banks of the river and it is usually practiced for the stockpiled waste to

be dumped on riverbank periodically, slow decomposition of bio degradable wood wastes is susceptibleto release nitrogen and thereby favoring growth of algae or other micro-organisms i.e. eutrophication.

Therefore, the project is an environment friendly initiative of the project proponent in every aspect in

national context.

D.2. Environmental impact assessment

Environmental impacts from this type of project are considered significant neither by the project participants nor by the host country.


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SECTION E. Local stakeholder consultation

E.1. Solicitation of comments from local stakeholders

Local Stakeholders Consultation (LSC) has been conducted and following activities were undertaken.

• A presentation was delivered by the CDM Project developer to Project Participant in the caseAPBML, clearly explaining the characteristics, requirements, and procedures on the stakeholders’consultation on 30 May, 2013.

• APBML primarily identified the contact address of all the relevant stakeholder organizations thatincludes Government institutions, NGO’s, individuals and community representatives and other

surrounding factories on 2 June, 2013.

• APBML authority circulated an invitation on “Stakeholders Consultation” in their official letterhead, inviting the relevant stakeholders to attend the meeting on 6 June, 2013.

• Relevant brief Project information sent to the stakeholders prior to the consultation session on 6June, 2013 as enclosed with invitation letter.

• LSC was conducted on 20th June 2013 at APBML factory premise.

Participants Attending the LSC on the Project

Venue: Conference Room, Akij Particle Board Mills Limited, Toraghat, Manikgonj. Date: 20th June, 2013

Serial

NoName Designation Organization

1 Md. Rafiqul Islam Additional Deputy

Commissioner,

District Commissioner Office

(DC), Manikgonj

2 Md. Sultan Reza Khan Assistant Director Fire Service & Civil Defence

3 Md. Raja Mia Union Parishad Member Nobogram Union

4 Md. Piyar Ali Local Resident N/A

5 Md. Meher Ali Local Resident N/A

6 S.M Mofijul Islam Regional Leaf Manager Dhaka Tobacco Industries

7 Md. Tosharof Hossen Tushar Raw Material Supplier M/S Monoara Traders

8 Mr. Jhantu Boshak Raw Material Supplier Joy Joya Enterprise

9 Mobarok Hossain Raw Material Supplier M/S Khadija Traders

10 Md. Delowar Hossen Raw Material Supplier Arif Enterprise

11 Md. Alif Mia Raw Material Supplier M/S Tanjina Enterprise

12 Md. Erfan Uddin Representative Shahar Unnoyon Somobai

Somiti

13 Md. Ali Azam Raw Material Supplier M/S Azam Traders

14. Minhaz Ahmad Deputy General Manager&

Plant Chief

APBML

15 Samiran Kumar Mondal Assistant

Manager(Production)

APBML

16 Sk. Zakaria Nashim Deputy Manager (Production) APBML

17 Md. Tareque Aziz Sr. Officer (Production) APBML

18 Md. Mostofa Zaman Sr. Officer (Production) APBML

19 Md. Ahsan Uddin Sr. Officer (Costing andBudgetary Control)

APBML

20 Uttam Kumar Sarkar Sr. Officer (VAT) APBML


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Serial

NoName Designation Organization

21 Md. Khalilur Rahman Sr. Officer(Store) APBML

22 Md. Fayaz Ahmed Sr. Officer(Distribution) APBML

23 Md. Jillur Rahman. Officer (Wood Store) APBML

24 Md. Abdus Satter Gazi Jr. Officer(HR & Admin) APBML

25 Utpal Bhattacharjee Manager Bangladesh Carbon,

Rahimafrooz Renewable

Energy Ltd.

26 Debasish Chowdhury Officer Bangladesh Carbon,

Rahimafrooz RenewableEnergy Ltd.

During the stakeholder’s consultation session, the CDM project developer performed the following

activities.

• Kept a record of attendance including names of the invitees, institutions, address and contactdetails with signature.

• Explained the project using multimedia presentation in local language and in non technical terms.

• Opened the floor for questions from the audience

• Discussed all relevant social and environmental benefits of the Project to the local stakeholders

• Prepared a report with meeting minutes, queries and questions rose during the consultationsession with clarification of project sponsor and sent it to the validator.

Snapshots of APBML Local Stakeholder Consultation


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E.2. Summary of comments received

The following comments were received during the LSC.

• What are the objectives of this session?

• Although the sludge formation from bio-mass exhaust ashes is insignificant in volume but howAPBML is handling its disposal?

• Carbon dioxide is a gas. So why it is measured in unit of mass in CERs calculation?

• How can Project Owner estimated the amount of 40,000 tons CO 2 reduction from this projectactivity in year scale?

• What are the types of Bio-mass generally used in Particle Board Production Process?

• Why cost of biomass based energy plant is relatively high in comparison to conventional fossilfired system?

E.3. Report on consideration of comments received

The following clarifications were made in reply of Stakeholders comments.

• The sole objective of this session is to disseminate CDM Project related information to theidentified stakeholders and receive their formal comments and feedback for further course ofaction.

• The mentioned sludge is the precipitated ash collected from the bottom ash unit of bio-masscombustor is very insignificant in comparison to the volume of bio-mass combusted. APBML

management is duly concerned about its disposal in controlled and environment friendly manner.

Presently they are using those precipitated ashes for filling the free low ground inside factoryareas.

• The globally standard unit of CER is termed as Ton of CO2e. This represents the amount ofemission reducing on a mass basis not on volumetric basis so that all the GHGs emission can be

measured under the same unit.• With the help of UNFCCC approved appropriate methodology, this was calculated. In the

verification phase, this amount will be verified again in context of approved plant monitoring plan.

• The significant source of bio-mass for this energy plant is coming from the production residues.However rest amount are mostly taken from the waste bio-mass generated in other sister concerns

of APBML in form of woodchips, off-cut, match veneer and saw dusts.

• This is an alternative energy generation plant from the renewable bio-mass and its initial capitalinvestment is way higher than the investment required for conventional fossil fuel based plant,

due to its high technical and integrated features, central control and management system with ITintegration, dedicated bio-mass handling unit with central dust collection systems etc.


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SECTION F. Approval and authorization

The project has obtained host country approval (HCA) from Designated National Authority (DNA),

Bangladesh on 18 November, 2012.

The project has signed an ERPA agreement with Tricorona Carbon Asset Management Pte Ltd, Swedenon 29 February, 2012.

- - - - -


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Appendix 1: Contact information of project participants

Organization: AkijParticle Board Mills Ltd. (APBML)

Street/P.O.Box: 73, Dilkusha C/ABuilding: Akij Chamber

City: Dhaka

State/Region: Dhaka

Postfix/ZIP: Dhaka-1000

Country: Bangladesh

Telephone: 880-2-9569602

FAX: 880-2-9564519

E-Mail: [email protected]

URL: www.akijgroup.com

Represented by: Minhaz Ahmad

Title: DGM (Marketing) & Plant Manager

Salutation: Mr.

Last Name: Ahmad

Middle Name:

First Name: Minhaz

Department: Akij Particle Board Mills Ltd,(factory),Toraghat, Ghior, Manikgonj

Mobile: +880 1730 315769

Direct FAX:

Direct tel:

Personal E-Mail: [email protected]


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Organization: Tricorona Carbon Asset Management Pte Ltd

Street/P.O.Box: 50 Raffles Place

Building: 35-01 Singapore Land Tower

City: Singapore

State/Region: Singapore

Postfix/ZIP: 048623Country: Republic of Singapore

Telephone: +65 6499 1288

FAX: +65 6499 1299

E-Mail: [email protected]

URL: www.tricorona.com

Represented by: Jenny Granath

Title: Senior Origination Manager

Salutation: Ms.

Last Name: Granath

Middle Name:

First Name: JennyDepartment:

Mobile: +65 9008 5980

Direct FAX: +65 6499 1299

Direct tel:

Personal E-Mail:


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Organization: Bangladesh Carbon, Rahimafrooz Renewable Energy Ltd

Street

Documents

Akij Particle Biomass Thermal Energy Generation CDM Project