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CDM-PDD-FORM Version 07.0 Page 1 of 58 Project design document form for CDM project activities (Version 07.0) PROJECT DESIGN DOCUMENT (PDD) Title of the project activity Production of biodiesel from non-food oil seeds Version number of the PDD 07 Completion date of the PDD 13/06/2016 Project participant(s) African Power Initiative Limited Host Party Uganda Applied methodology(ies) and, where applicable, applied standardized baseline(s) Methodology: ACM0017: Production of biodiesel for use as fuel -Version 2.1.0 Sectoral scope(s) linked to the applied methodology(ies) Sectoral Scope: (1) Energy industries (renewable - / non- renewable sources) and (5) Chemical industries. Estimated amount of annual average GHG emission reductions 40,120 tCO2e

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Page 1: CDM-PDD-FORM CDM project activities (Version 07.0) PROJECT … · 2020. 8. 31. · CDM-PDD-FORM Version 07.0 Page 1 of 58 Project design document form for CDM project activities (Version

CDM-PDD-FORM

Version 07.0 Page 1 of 58

Project design document form for CDM project activities

(Version 07.0)

PROJECT DESIGN DOCUMENT (PDD)

Title of the project activity Production of biodiesel from non-food oil seeds

Version number of the PDD 07

Completion date of the PDD 13/06/2016

Project participant(s) African Power Initiative Limited

Host Party Uganda

Applied methodology(ies) and, where applicable, applied standardized baseline(s)

Methodology: ACM0017: Production of biodiesel for use as fuel -Version 2.1.0

Sectoral scope(s) linked to the applied methodology(ies)

Sectoral Scope: (1) Energy industries (renewable - / non-renewable sources) and (5) Chemical industries.

Estimated amount of annual average GHG emission reductions 40,120 tCO2e

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SECTION A. Description of project activity

A.1. Purpose and general description of project activity

African Power Initiative Limited (API), founded in 2008 as a private limited company is the project proponent for the project and is mandated towards sustainable production of biodiesel in East Africa. The major objective of this project is to produce biodiesel on a commercial scale of about 62,500 litres/day or about 16,400 tons per year in Uganda. It is also planned to further increase the capacity over next phases of the project. For the feedstock to produce bio-diesel, API has mainly kept three tree options that are common in Uganda: Castor, Jatropha, and Candlenut. API will use only castor, Jatropha, and Candlenut from their dedicated plantation. The hybrid variety offers the highest oil yield and thus the highest wealth for the company. API has undertaken a dedicated plantation to supply all of the feedstock required for the 62,500 litres/day in Namalu, Nakapiripirit District of Uganda and the refinery shall be located at Mukono, near Kampala. The distance between Namalu and Mukono is around 290 Km by road. For details on area under cultivation for Castor, Jatropha, and Candlenut, its yield and mass balance between oil and biodiesel please refer Appendix 4. All other feedstock that might be used to generate oil for biodiesel should be obtained from oil seeds of plants that are cultivated on dedicated plantations established on lands that are degraded or degrading at the start of the project activity The land area where biomass is cultivated under the CDM project activity is located at coordinates 1.883173, 34.545372. It falls under category, “Warm Temperate Dry”, being a degraded savannah. Vegetation type before the implementation of the project activity, were grass and shrub land with herbaceous, shrubs and isolated trees. The project activity includes planting of castor, jatropha and candlenut trees. The agricultural operations are undertaken mainly using simple manual mechanical tools, mainly to dig the pits for placing the saplings, etc. After harvesting a diesel operated tractor is being used for land clearing and undertaking minor agricultural operations. Every year around 40% of the land will be left to fallow. Intercropping as a subsistence farming practice will be adopted and thus meeting out the necessary needs of the local population. The project is currently engaged in developing dedicated plantation and thus, ensuring the reliable supply of feedstock, which is critical to a biodiesel project. The land suitable for refinery has been acquired. Certain machinery as required for the plant has already been ordered, as it can take a long time to deliver the machinery in a land locked country and since all machines are to be imported. The by-products produced like glycerol, bio-waste shall be sold out and may be used to produce different useful products like, soap, briquettes, bio-fertilizer, etc. API shall be entering into a long term supply contracts with captive consumers once the biodiesel production starts and the produced biodiesel shall be mixed with conventional fossil fuel oil in a ratio of 20:80 for consumption by the captive consumers in either stationary engines or vehicles without any modification. The scenario existing prior to the implementation of the project activity was business as usual, with users consuming fossil fuel without the proposed biodiesel mix. There are not any existing alternatives to the project activity. As stated in section B4 of this PDD, at the production level the realistic and credible alternative(s) may include, continuation of current practices with no investment in biodiesel production capacity, the project activity implemented without the CDM (not feasible due to investment barriers, technological barriers due to the fact of being a first of its kind project in the country) and investment in any other alternative fuel replacing partially or totally the baseline fuel is not feasible either due to lack of knowledge on this sector by the Project Participant. Only viable alternative would be continuation of current practices. Baseline scenario is the same as existing scenario.

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The project’s contribution to sustainable development is made through the creation of an industrial sector, biodiesel production, non-existent in the country in the baseline scenario. It will contribute to the sustainability of the agricultural activities in the country as it provides the farmers involved in the project with an additional income. Also reduces emissions from the combustion of fossil fuels. After commissioning, the project is expected to reduce greenhouse gas emissions for an average of 40,120 tCO2e yearly and approximately 401,200 tCO2e for the whole crediting period. The proposed CDM project activity is not a CPA that has been excluded from a registered CDM PoA as a result of erroneous inclusion of CPAs.

A.2. Location of project activity

A.2.1. Host Party

Uganda

A.2.2. Region/State/Province etc.

Central Region

A.2.3. City/Town/Community etc.

Refinery location: Mukono District The plantation is at Namalu, Nakapiripirit District of Uganda.

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A.2.4. Physical/Geographical location

A.3. Technologies and/or measures

The trans-esterification process will be used in the refining of biodiesel to produce 62,500 Litres per day of the biodiesel. The technology is provided by “Jatrodiesel” (www.jatrodiesel.com) and the main processes involved in the production can be summarized by the following chart:

The technical description of the refinery is as under: The plant shall have a biodiesel producing capacity of 62,500 litres per day and is planned to be operated continuously 24 hours a day and around 300 days per year with the remaining days catering for shutdown and maintenance. The plant will be insulated from the outside and all heat supply will be by the heat transfer fluids circulating through the plant and heat exchange at the point of use made through heat exchangers.

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The plant will have two main biodiesel reactors each of volume capacity 7600 gallons. Heating of the oils will be through heat exchangers installed on the circulation paths for oils. The plant shall have a total of 28 process pumps from oil and methanol input to biodiesel production, purification and storage without the oil production facility. Average pump rating shall be 10HP. The other two reactors in the system are the magnesol/purification resigns reactor and the glycerine reactor. The glycerine reactor is used to heat the glycerine and recover the excess methanol from the glycerine. The resin/magnesol reactor is used to provide a contact surface area for the biodiesel with the polishing media so as the catalyst, soaps and other impurities are removed from the biodiesel. Final filtration shall be done to trap any escaping biodiesel purification resin. The plant shall use a thermal fluid heater, which shall be biodiesel fired and shall be sufficient to meet its power rating of 6,000,000 BTU/hour. Other accessory to the heating unit is the 7.5HP/380V/3PH/50HZ Forced draft fan. The minimal electricity requirement for the plant, an early estimation of 261kW, shall be met either biodiesel / petrodiesel fired electricity generating sets or from the grid as per the situation and requirement. Settling tanks of capacity 7500 US Gallons will be used to separate glycerine from the biodiesel gravimetrically to save on energy usage. It is estimated that around 1% of the total biodiesel produced shall be used back in biodiesel production process i.e., thermal fluid heater and/or tractors/trucks during cultivation/transportation, facility generators, etc. The actual amount may vary depending upon different situation and precise estimate is difficult in view of lack of any other operating plant in the country at such a large scale. Project will provide with prime quality biodiesel to be mixed with fossil fuel before combustion. Blending will either be undertaken by PP directly or an agency hired by them. In any case it will be under direct monitoring control of the PP. As a comparison in the baseline scenario the production of biodiesel is non-existent. At the production level the realistic and credible alternative(s) may include, continuation of current practices with no investment in biodiesel production capacity the project activity implemented without the CDM due to the fact of being a first of its kind project in the country) and investment in any other alternative fuel replacing partially or totally the baseline fuel is not feasible either due to lack of knowledge on this sector by the Project Participant. Only viable alternatives would be continuation of current practices. Baseline scenario is the same as existing scenario.

A.4. Parties and project participants

Party involved (host) indicates 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)

Party A (host) Uganda (host)

Private entity A: African Power Initiative Limited

No

A.5. Public funding of project activity

No public funding is involved in the project.

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SECTION B. Application of selected approved baseline and monitoring methodology and standardized baseline

B.1. Reference of methodology and standardized baseline

(a) Selected methodology Title: “Production of biodiesel for use as fuel” Reference: - ACM0017 (Version 2.1.0, EB 63, Valid from 17th September 2010 onwards) b) Any tools and other methodologies to which the selected methodology (ies) refer

o “Tool for the demonstration and assessment of additionality”; (Version 7.0.0) o “Tool to calculate baseline, project and/or leakage emissions from electricity consumption”;

(Version 2.0.0) o “Tool to calculate project or leakage CO2 emissions from fossil fuel combustion”; (Version

2.0.0) o “Project emissions from flaring”; (Version 02.0.0) o Tool “Project and leakage emissions from biomass” (Version 2.0) o Clean Development Mechanism Project Standard (Version 9.0) o Clean Development Mechanism Project Cycle Procedures (version 9) o General guidelines on sampling and surveys“;

For more information regarding the methodology and the tools as well as their consideration by the Executive Board please refer to: http://cdm.unfccc.int/methodologies/PAmethodologies/approved.html Further reference:

o Clean Development Mechanism Project Standard (Version 02.1.0,EB 70) o Clean Development Mechanism Project Cycle Procedure (Version 03.1, EB 70)

B.2. Applicability of methodology and standardized baseline

The applicable methodology ACM0017 version 2.1.0 is applicable to project activities that reduce emissions through the production, sale and consumption of blended biodiesel that is used as fuel, where the biodiesel is produced from:

a) Waste oil/fat; and/or b) Vegetable oil that is produced with oil seeds from plants that are cultivated on dedicated

plantations established on lands that are degraded or degrading at the start of the project activity.

The proposed project activity is a greenfield project to produce and sell the biodiesel for blending by prospective consumers. The biodiesel is to be produced using oil seeds of the plants which will be freshly cultivated on dedicated degrading land. Any portion of the biodiesel produced from non-dedicated or from non-degrading land shall not be included in the emission reduction calculations. Thus, the project qualifies to the main applicability criteria of the methodology. Detailed assessment of different applicability conditions as mentioned in the applied methodological version are discussed below:

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Applicability Condition Justification Conclusion

The methodology ensures that the CERs can only be issued to the producer of the biodiesel and not to the consumer.

Project Participant is the producer of Biodiesel and the entity to which CERs will be issued to OK

Fee

dsto

ck in

pu

ts

If the biodiesel in the project plant is only partly produced from the two sources (a) and (b) as specified above, any volumes of biodiesel that are also produced in the project biodiesel production plant but from other feedstock sources, are not included in the quantity of biodiesel for which emission reductions are claimed;

The project is designed to produce 62,500 litres/day of biodiesel from (b) vegetable oil only, as stated in section 2.1 of API’s company profile. No biodiesel is produced from other sources. Seeds are obtained from Castor, Jatropha, and Candlenut tree plantations in a land falling under the category “Warm Temperate Dry” and being a degraded savannah. OK

The alcohol used for transesterification is methanol from fossil origin. Volumes of biodiesel produced with alcohols other than methanol (for example, ethanol) are not included in the quantity of biodiesel for which emission reductions are claimed

The project uses only methanol for the involved transesterification process and the source of methanol is fossil fuel. Declaration has been made available.

OK

The land in which biomass is cultivated: (i) Does not contain wetlands; (ii) Does not contain organic soils; (iii) Does not contain forests nor contained forest since 31 December 1989

(iv) Is not subjected to flood irrigation

The pre project land use of the project as demonstrated to the DOE during site visit is mainly a grassland with extremely heavy rain spells followed by long dry spells. The soils are predominantly sandy loam. It does not contain forests, wetlands or organic soils. As specified in section B.4 of the PDD, the plantation is established on a dedicated degraded/degrading land. The project activity will not involve flood irrigation. All agricultural activities will be rain fed. Therefore, no plantation will be established on land that contains wetlands, organic soils, forests or land that is subjected to flood irrigation. OK

Desalination is not a substantial source of water in the host country.

The host country majorly depends on fresh water bodies as the main sources of water for agricultural, industrial, and human consumption1. Desalination is not a practiced technique for fresh water supply in Uganda. Therefore, desalinated water will not be used in the plantation. OK

Biomass residues as a result of agro- OK

1 https://en.wikipedia.org/wiki/Water_supply_and_sanitation_in_Uganda#Water_resources

http://www.fao.org/nr/water/aquastat/countries_regions/UGA/index.stm

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Applicability Condition Justification Conclusion

The biomass residues consumed in a CDM project activity are either procured by the project proponent, or as a result of an agro-industrial process under the control of the project proponents.

industrial processes will not be consumed in the CDM project activity. The biomass residue shall be sold out and may be used to produce different useful products like briquettes, bio-fertilizer, etc.

No leakage due to shift of pre-project activities occurs

The plantation area was abandoned land prior to the implementation of the project activity. The plantation area is on land on which no land management (including crops, forestry, and agroforestry and grazing) has been practiced for the longer period of three years. Also, during the DOE site visit, the village local heads confirmed there is no economic activity in the project cultivation area. OK

Possibility of leakage from the displacement of activities or people.

As demonstrated to the DOE, there was no pre-project activity which will require shifting and the area will actually provide much more positive level of goods and services than the pre-project situation, which is almost nothing OK

For project activities which fall above the small-scale threshold, no shift of pre-project activities is allowed.

As discussed above, there is no shift of pre-project activities.

OK

Bio

die

sel p

lant

and

pro

du

cts

The petrodiesel, the biodiesel and the blended biodiesel comply with national regulations (if existent) or with suitable international standards such as ASTM D6751, EN14214, or ANP42;

The biodiesel shall comply with the applicable standards including national regulation like the Uganda standard US946:2011 and the Petroleum Supply Act 2003. OK

The project activity involves construction and operation of a biodiesel production plant;

The project activity involves construction and operation of a greenfield biodiesel production plant as stated in section 2.2.1 of API‘s company profile. OK

The by-product glycerol is not disposed of or left to decay. It should be either incinerated or used as raw material for industrial consumption or sold;

The by-product glycerol will not be disposed of or left to decay. It is being sold out for production of soaps, etc. as stated in section 10 of API business plan. A prospective buyer letter of intention has been provided. OK

If biomass or biodiesel is used at the site of the biodiesel production plant or the oil production plant(s) as fuel (e.g. for heat or electricity generation), then at least 95% of the biomass and biodiesel used in these plants should be either biomass residues from the dedicated plantations established under the project activity or biodiesel

Wherever, the energy requirement e.g., for electricity, heat and/or steam is required to be met from either biomass and/or biodiesel, the biomass shall only be from the biomass residue from the dedicated plantation and biodiesel shall be from the within the plant. The amount of biodiesel used shall not be included in the quantity of biodiesel for which OK

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Applicability Condition Justification Conclusion

generated in the project activity biodiesel production plant. The amount of biodiesel used should not be included in the quantity of biodiesel for which emission reductions are claimed.

emission reductions are claimed, as stated in section 10 of API business plan.

Co

nsu

mp

tio

n o

f b

iodie

sel

The (blended) biodiesel is supplied to consumers within the host country who use the (blended) biodiesel for fuel combustion in existing stationary installations (e.g. diesel generators) and/or in vehicles;

API will be signing supply contract with captive consumer of the blended biodiesel within Uganda only. It is to be consumed in either stationary installation and/or in vehicles.

OK

The consumer and the producer of the (blended) biodiesel are bound by a contract that allows the producer to monitor the consumption of (blended) biodiesel and that states that the consumer shall not claim CERs resulting from its consumption;

API will be signing supply contract with captive consumer of the blended biodiesel. This contract will include agreement to allow monitoring of the consumption of the blended biodiesel and also that the consumer will not be claiming any CERs resulting from its consumption. OK

No modifications in the consumer stationary installations or in the vehicles engines are necessary to consume/combust the (blended) biodiesel. In case of stationary installations, biodiesel or blended biodiesel with any blending fraction between 0 and 100% can be used. In case of vehicles, only blended biodiesel can be used and the blending proportion must be low enough to ensure that the technical performance characteristics of the blended biodiesel do not differ significantly from those of petrodiesel. This condition is assumed to be met if the blending proportion is up to 20% by volume (B20). If the project participants use a blending proportion of more than 20%, they shall demonstrate in the CDM-PDD that the technical performance characteristics of the blended biodiesel do not differ significantly from those of petrodiesel and comply with all local regulations. Blending is done by the producer, the consumer or a third party who is contractually bound to the producer to ensure that blending proportions and amounts are monitored and meet all regulatory requirements;

Blending to be done at the consumer site, but under monitoring of the PP. The blending will be limited to 20% of biodiesel and there shall be no modification in either the stationary installations or vehicles.

OK

In case of vehicles, the consumer (end-user) of the blended biodiesel is a captive fleet of vehicles;

The consumer of biodiesel for vehicles shall be the captive owners of the fleet of vehicles. OK

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Applicability Condition Justification Conclusion

Only biodiesel consumed in excess of mandatory regulations is eligible for the purpose of the project activity.

No mandatory regulation is being placed in the host country currently. However, the PP shall always claim for the CERs arising out of consumption of biodiesel, which is in excess of mandatory regulations. OK

B.3. Project boundary

The spatial extent of the project boundary encompasses: o Transportation of:

a) Oil seeds from the field to the oil production plant; b) The biodiesel to the site where it is blended with petrodiesel.

o The vegetable oil production plant onsite at the project site. The biodiesel production plant at the project site, comprising the transesterification unit plus other installations on the site (e.g. storage, refining, etc.);

o Facility where the biodiesel is blended with petrodiesel a) Vehicles and existing stationary combustion installations where the (blended) biodiesel

is consumed; o The geographic boundaries of the dedicated plantations. Thus, the project boundary can be shown schematically as following:

The greenhouse gases and emission sources included in or excluded from the project boundary are shown below:

GHG

from

cultivatio

n

GHG

during

biodiesel

production

GHG

emissions

from

blended

biodiesel

consumptio

n

GHG from

transportati

on GHG from

transportati

on

Dedicated

Plantation

Land

Biodiesel

Production

Process

Biodiesel

Blending

Process

End user

Electricity/Heat

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Source GHGs Included? Justification/Explanation B

ase

lin

e s

ce

na

rio

Baseline Emissions Source 1 Vehicles and stationary combustion installations consuming petrodiesel

CO2 YES Main source of baseline emissions

CH4 NO Excluded for simplification. CH4 emissions are assumed to be very small. No systematic difference to project activity

N2O …

NO Excluded for simplification. N2O emissions are assumed to be very small. No systematic difference to project activity

Pro

ject

sce

na

rio

Project Emissions Source 1 On-site energy consumption at biodiesel production plant and, if applicable, the oil production/extraction plant(s)

CO2 YES Significant project emissions source

CH4 NO Excluded for simplification. CH4 emissions are assumed to be very small

N2O NO Excluded for simplification. N2O emissions are assumed to be very small

Project Emissions Source 2 Combustion of fossil fuel derived methanol in the biodiesel ester

CO2 YES Significant project emissions source

CH4 NO Excluded for simplification. CH4 emissions are assumed to be very small

N2O NO Excluded for simplification. N2O emissions are assumed to be very small

Project Emissions Source 3 Transportation of oil seeds, vegetable oils and or oil/fat wastes

CO2 YES Significant project emissions source

CH4 NO Excluded for simplification. CH4 emissions are assumed to be very small

N2O NO Excluded for simplification. N2O emissions are assumed to be very small

Project Emissions Source 4 Transportation of biodiesel to blending facility

CO2 YES Significant project emissions source

CH4 NO Excluded for simplification. CH4 emissions are assumed to be very small

N2O NO Excluded for simplification. N2O emissions are assumed to be very small

Project Emissions Source 5 Anaerobic wastewater treatment in crude vegetable oil production.

CO2 NO Not applicable to the project as there will be no generation of wastewater during biodiesel production hence anaerobic wastewater treatment in crude vegetable oil production will not be carried out.

CH4 NO Not applicable to the project as there will be no generation of wastewater during biodiesel production hence anaerobic wastewater treatment in crude vegetable oil production will not be carried out.

N2O NO Not applicable to the project as there will be no generation of wastewater during biodiesel production hence anaerobic wastewater treatment in crude vegetable oil production will not be carried out.

Project Emissions Source 6

CO2 YES May be a significant project emissions source

CH4 NO No significant source is expected

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Cultivation of land to produce oil seeds (if the feedstock is vegetable oils and / or fats from plants produced in dedicated plantations)

N2O YES May be a significant emissions source

B.4. Establishment and description of baseline scenario

According to ACM0017, Version 2.1.0, the procedure for selection of most plausible baseline scenario for a project using oil seeds cultivated in dedicated plantation on degraded/degrading land is as following: The baseline scenario should be separately determined for the following elements:

o Production of fuels (P): What would have happened at the production level in the absence of the CDM project activity?

o Consumption (C): Which fuel would have been consumed in the absence of the CDM project activity?

o Land used for plantations (L): What would be the land use in the absence of the CDM project activity?

Since, biodiesel is not produced from waste oil/fat; the baseline situation corresponding to Material (M) shall not be applicable. For the fuel production (P), According to the “Tool for the demonstration and assessment of additionality” (Version 07.0.0) approved by EB, the baseline scenario for realistic and credible alternative(s) can be assessed through the following steps: Step 1: Identification of alternatives to the project activity consistent with current laws and regulations Sub-step 1a: Define alternatives to the project activity At the production level the realistic and credible alternative(s) may include:

o Alternative P1: Continuation of current practices with no investment in biodiesel production capacity;

o Alternative P2: The project activity implemented without the CDM; o Alternative P3: Investment in any other alternative fuel replacing partially or totally the

baseline fuel. Sub-step 1b: consistency with mandatory laws and regulations All the alternatives identified comply with local laws and regulations. Project has the local National Environmental Management Authority (NEMA) approval. Step 2: Barrier analysis The following barriers that would prevent the implementation of alternative scenarios are presented below:

Lack of prevailing practice Since the project activity is a “first-of-its-kind” project, as discussed below, the project activity is a new good practice applied in Uganda in order to use also several possibilities of non-food oil crops to genererate biodiesel for use in diesel engines.

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In order to identify projects that are similar to the proposed project activity, the definitions presented in the Guidelines on Additionality of First-of-its-kind project activities, version 02.0, EB69, were used: 1. Applicable geographical area should be the entire host country. If the project participants opt to limit the applicable geographical area to a specific geographical area (such as province, region, etc.) within the host country, then they shall provide justification on the essential distinction between the identified specific geographical area and rest of the host country. In the case of the proposed project activity, the applicable geographical area comprises the entire host country, i.e., Uganda. Measure (for emission reduction activities) is a broad class of greenhouse gas emission reduction activities possessing common features. Four types of measures are currently covered in the framework: (a) Fuel and feedstock switch; (b) Switch of technology with or without change of energy source (including energy efficiency improvement); (c) Methane destruction; (d) Methane formation avoidance. The proposed project activity matches option (a) since it consists of a switch from use of conventional fossil fuel to use of biodiesel from non food oil seeds. Output is goods or services with comparable quality, properties, and application areas (e.g. clinker, lighting, residential cooking); The output produced by the proposed project activity is biodiesel efficiently produced from non food oil seeds of castor, jatropha and candlenut. Different technologies are technologies that deliver the same output and differ by at least one of the following (as appropriate in the context of the measure applied in the proposed CDM project and applicable geographical area): (a) Energy source/fuel; (b) Feed stock; The proposed project activity will involve production of biodiesel from different feedstocks such as castor, jatropha and candlenut. (c) Size of installation (power capacity): (i) Micro (as defined in paragraph 24 of Decision 2/CMP.5 and paragraph 39 of Decision 3/CMP.6); (ii) Small (as defined in paragraph 28 of Decision 1/CMP.2); (iii) Large In case of the proposed project activity, the trans-esterification process will be used in the refining of biodiesel to produce 62,500 Litres per day of the biodiesel (large scale). Considering the definitions above and following the Guidelines on Additionality of First-of-its-kind project activities, version 02.0, EB69, the analysis to identify a First-of-its-kind project activity in the applicable geographical area is presented. A) The project is the first in the applicable geographical area that applies a technology that is different from technologies that are implemented by any other project, which are able to deliver the same output and have started commercial operation in the applicable geographical area before the project design document (CDM-PDD) is published for global stakeholder consultation or before the start date of the proposed project activity, whichever is earlier. B) Project participants selected a crediting period for the project activity that is .a maximum of 10 years with no option of renewal.; As predicted by the referred Guidelines, the applicable geographical area comprises the whole country of Uganda. There are no projects involving biodiesel production in Uganda, since they are

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not economically convenient. The investment required is too high when compared to the expected savings, as well as the risk associated with the economic instability. The most common practice in the country is the use of fossil diesel to run diesel engines in vehicles and generators. Therefore, the proposed project activity is the first biodiesel production project in Uganda to apply the tranesterification process technology to produce biodiesel from non food oil seeds.

Outcome: The proposed project activity that was identified as the First-of-its-kind project activity is additional. Alternative P2 will face barrier if it is implemented without CDM and hence it is not feasible. Investment in any other alternative fuel such as CNG, LNG, etc. is not viable for the project owner, since they have never worked in the Oil and Gas industry and have never been producing any of these fossil fuels and hence faces barrier due to prevailing practice. Further, API is promoted by first generation entrepreneur with a view of developing sustainable development in the country and is currently promoting the same by undertaking research, development and industrialization of biodiesel products, and there is no significant developed course of these fuels in the country and currently 100% of the petrofuels are being imported in the country. Thus, by the prevailing practice barrier, alternative P3 isn’t feasible. Hence, this leaves Alternative P1 which has been assessed to face no barriers, as a feasible option. Step 3: Investment analysis Not applicable, since the project activity is a first-of-its-kind project and, therefore, its additionality

is demonstrated. Investment analysis is not necessary since only P1 comes out as a viable alternative from Step 3 To conclude, the most plausible baseline scenario for fuel production is Alternative P1: Continuation of current practice with no investment in biodiesel production capacity. For the consumption of fuel (C), the most plausible baseline scenario is determined as follows: Step 1: Identify all realistic and credible alternatives for the fuel used by end consumers. For the intended consumer of biodiesel, the realistic and credible alternative(s) may include:

o Alternative C1: Continuation of petroleum diesel consumption; o Alternative C2: Consumption of biodiesel from other producers; o Alternative C3: Consumption of other single alternative fuel such as CNG or LPG, etc; o Alternative C4: Consumption of a mix of above alternative fuels; o Alternative C5: Consumption of biodiesel from the proposed project plant.

Step 2: Eliminate alternatives that are not complying with applicable laws and regulations. All the alternatives identified comply with the local laws and regulations. Step 3: Eliminate alternatives that face prohibitive barriers. In Uganda, the development of biodiesel has just started, and there is in fact no other biodiesel manufacturer in the country. Though, API itself has one small pilot scale biodiesel plant, which is the basis of current commercial plant under development, however, this pilot plant also remains largely in-operational mainly due to lack of feed stock, which is intermittent currently. Therefore, in absence of availability of biodiesel, the Alternative C2: consumption of biodiesel from other producers is not feasible, since for the reasons explained above, this option faces prevailing practice barrier as there is a clear lack of feed stock in the region.

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Consumption of other single alternative fuel such as CNG or LPG will require modification in the consumer’s stationary installations and vehicles, which needs additional expense for consumers, and also Uganda is a land locked country and all of its petro products are being imported and hence it’s not practical and rather may prove costly to have CNG and PNG upgraded to be used on commercial scale. Therefore, Alternative C3 is not a realistic and credible alternative due to prevailing practice barrier. Similarly, since alternative fuels such as CNG or LPG are not credible due to prevailing practice barrier in the country, thus Alternative C4: Consumption of a mix of above alternative fuels is not feasible either. The project isn’t financially attractive without CDM revenue due to the fact that there are no other financial incentives at this stage of the developing technology in the region for the project activity, thus Alternative C5: Consumption of biodiesel from the proposed project plant isn’t feasible. In conclusion, Alternative C1: Continuation of petroleum diesel consumption faces no prohibitive barriers and is considered to be the most plausible baseline scenario for consumption of fuel (C). For the land use where the dedicated plantations are established (L), the baseline scenario is determined as follows: Step 1: Identify all realistic and credible alternatives for the land use Following alternatives could be possible with respect to the baseline scenario for the use of the land where the dedicated plantations are established:

o L1: Continuation of current land use, i.e. continued absence of agricultural and forestry activities on degraded or degrading lands;

o L2: Conversion to plantations of the oil plant without CDM; o L3: Conversion to another plantation (annual or perennial).

Steps 2 – 4: Eliminate scenarios which are not in legal compliance or face prohibitive barriers or are not economically attractive, as described above for the fuel consumption scenarios.

Aerial extent, where dedicated cultivation shall be undertaken. In Uganda, almost all the land in the country is facing severe to moderate rate of land degradation2; the project area is a degraded savannah environment - principally grass and shrub land with herbaceous, shrubs and isolated trees. The area has been subjected to continued

2 http://www.fao.org/countryprofiles/Maps/noaa/en/?iso3=UGA&mapID=604

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degradation, especially over the last few decades. The area of API dedicated plantation in Nakapiripirit comes under the category of “severe and very severe land degradation”. The current land use is majorly subsistence farming by the local population and no regular agricultural activities, also no forestry activities are being practiced in the area. The project activity includes planting of Castor, Jatropha, and Candlenut trees on the identified land area. Every year around 40% of the land will be left to fallow in some of the area of the farmland, this shall take care of preserving the natural productivity of the soil as well as allowing intercropping of the subsistence farming practices and thus meeting out the necessary needs of the local population. Hence, no land use change is anticipated on the degraded lands, therefore, Alternative L1: Continuation of current land use is the baseline scenario. Also, since it is the first of its type biodiesel project in Uganda as demonstrated by the “first of its kind “ document issued to the PP and there is no other commercial biodiesel projects exist in Uganda, and the project is in process of availing CDM benefits, it is not possible to convert to the oil plantation without CDM. Hence, Alternative L2: Conversion of plantation of the oil plants without CDM is not feasible. It is not possible to convert to the oil plantation without CDM due to the difficult access to capital and or investment barrier. Similarly, majority of Nakapiripirit district has been previously identified as an area with vast land, sparsely populated and with minimal economic activity (Emma Consult Limited 2004), and the major land use practice involves subsistence farming, with no or very little local economic activities, it is not possible to undertake other plantations in the near future due to existing prevailing situation in the region. Other plantation will then require investment as well as intensive coordinated efforts including regular planting, harvesting and maintenance activity, and the produce will also be required to be transported over long distances so as to make an economic use of it in order to yield economic incentive, without impacting the prevailing situation, which otherwise will be not required for dedicated oil plantations, since it matches with the prevailing situation in the region giving additional benefit to the local community but still allowing the prevailing situation which is mainly subsistence farming as a means for living. Also, the dedicated plantation require minimal or no maintenance once planted except during harvesting and their produce (seeds) is not required to be sold in a regular market but to be consumed 100% in a facility producing biodiesel. Therefore, it can be concluded that, in absence of a regular consumption market with significant economic incentive to produce different cultivation in the area, it is impossible to convert remote degraded lands into other plantation than oil. Further, this is also imperative from the fact that no other nearby area of the dedicated plantation is being converted to any other plantation and shall be available to be checked by DOE during their site visit. It is also to be noted that in general the land selected for plantation, i.e., in the north-eastern part of the country lies in a semi-arid3 area and as per applicable methodology guidance for climate zone, falls under category, “Warm Temperate Dry” as the dedicated plantation region never encounters any frost round the year and subsequently the Mean annual temperatures is more than 10 OC with an average rainfall of 500-1300 mm4, further the PET in the region is expected to be in the range of 2100-2300 mm and also the ration of Rainfall: Evaporation i.e., MAP:PET is < 15 and hence, the region can be categorized under “Warm Temperate Dry” as per methodology Annex 2. This also restricts the conversion of the land to some other economic agricultural plantation since the rate of PET is also very high in this region, thus limiting the agricultural production, different

3 http://www.eoearth.org/article/Climate_of_Uganda

4 http://sdwebx.worldbank.org/climateportal/index.cfm?page=country_historical_climate&ThisRegion=Africa&ThisCCode=UGA

5 Figure 3 of : http://www.sawlog.ug/downloads/TAs/Smith%20SPGS%20Site%20Classification%20-%202%20-%202010.pdf

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than the already tried project tree plantation6. Also, the vegetation cover of the area that API biofuel farm is to be located is an already impacted human landscape. Extensive parts of this property are covered by open stretches of grass with scattered trees. Dedicated plantation also allow intercropping, since the distance between each tree is sufficient, thus allowing enough opportunity to deliver similar level of goods and services as earlier or the nearby fields, in the future. During the site visit the discussion was undertaken with local village heads by DOE, who confirmed about no use of the existing land and also that no land in the nearby is getting converted to any other plantation. And also that due to extreme alternate rainfall and dry conditions it’s almost impossible to make any other good use of the land, other than for the project with continued prevailing use of the land. Hence, Alternative L3: Conversion to another plantation is not feasible as it faces the prevailing practice barrier, a fact that was checked by the DOE during the site visit, also being able to check the serious issues in getting public data for supporting each and every barrier specially regarding the rural areas of the country. Therefore, the most plausible baseline scenarios for the project are:

o P1: Continuation of current practices with no investment in biodiesel production capacity; o C1: Continuation of petroleum diesel consumption; o L1: Continuation of current land use.

B.5. Demonstration of additionality

The starting date of the Proposed Project Activity is after 02 Aug 2008, therefore, the EB guidelines on the demonstration and assessment of prior consideration of the CDM (EB 62 Annex 13), paragraphs 2 to 5 apply. Therefore, the project participant informed the Host Party DNA and the UNFCCC secretariat in writing of the commencement of the project activity and of the intention to seek CDM status. These notifications were made within six months of the Proposed Project Activity start date as shown in the timeline below. In addition to this confirmation of serious prior consideration of the CDM by the project participants, the timeline below indicates continuing and real actions to secure CDM status for the project.

Time Milestone

27/10/2011 Prior Consideration was sent to UNFCCC

10/01/2012 date of order of plant machinery (start date of the project activity)

23/07/2012 Proposal for CDM services submitted by Zeroemissions to API

21/01/2013 Agreement for the UNOPS Loan Scheme

01/02/2013 Agreement with CDM Consultant “Zeroemissions”

05/03/2013 Press adverts from the stakeholders meeting

13/03/2013 Stakeholders meeting

12/07/2013 Agreement with DOE “Carboncheck” For validation service

The additionality of the project activity can be demonstrated and assessed using the latest version of the “Tool for the demonstration and assessment of additionality” version 7.0.0.

6 http://www.sawlog.ug/downloads/TAs/Smith%20SPGS%20Site%20Classification%20-%202%20-

%202010.pdf

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Figure 1: Flowchart of the stepwise approach for establishing additionality The tool provides a step-wise approach to demonstrate and assess the additionality of a CDM project. These steps are:

a) Step 0 Demonstration whether the proposed project activity is the first-of-its-kind; b) Step 1 Identification of alternatives to the project activity; c) Step 2 Investment analysis; d) Step 3 Barriers analysis; and e) Step 4 Common practice analysis.

As described in the figure 1, the project can also be additional, if its “First of its kind” project, and although, the project on ground faces many serious barriers, e.g., access to capital, investment barrier, ensuring reliable supply of feed stock, ensuring sale of produce, etc. as normal to any project in the LDC country of Uganda, which is apart from the serious issues in getting public data for supporting each and every barrier. Therefore, the best case to demonstrate additionality of the project is using “Guidelines on additionality of First of its kind project activities” version 2.0, as following: As per the “first of its kind” tool, the project is additional if it complies with the following:

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a) The project is the first in the applicable geographical area that applies a technology that is different from technologies that are implemented by any other project, which are able to deliver the same output and have started commercial operation in the applicable geographical area before the project design document (CDM-PDD) is published for global stakeholder consultation or before the start date of the proposed project activity, whichever is earlier;

b) The project implements one or more of the measures; c) The project participants selected a crediting period for the project activity that is “a

maximum of 10 years with no option of renewal”. The discussion on each of the above point is as below: The project activity is first of its kind in the whole of the country (geographical region), as no other similar project (biodiesel production for fuel and feedstock switching) is being implemented or even planned in the future in the host country. Details of the same shall be provided to DOE during their validation site visit7. Since, there is no similar type of commercial project anywhere in the country; no comparison can actually be undertaken with respect to output, etc. However, there exists one pilot scale biodiesel project being implemented by same PP. However, it cannot be compared in any way with the commercial project, which is almost 15 times bigger. Further, the objective of pilot project was to develop investors’ confidence, in order to demonstrate the viability of the technology being introduced by a US company into the country and also to research on viability of different feedstock which can be successfully grown locally. The operation of the pilot project is intermittent to as and when the sufficient feed stock is available. Therefore, the project is first in applicable geographical area which applies a technology which is being introduced first time in the country and there exists no other real project which can be compared to the current commercial scale project. The project about production of biodiesel with an aim for a partial “fuel and feedstock switch” measure and shall replace petrodiesel in order to claim for any of the emission reduction. The PP has selected a crediting period of 10 years with no option of renewal. Hence, it can be concluded that the project is “first of its kind” and therefore, additional.

B.6. Emission reductions

B.6.1. Explanation of methodological choices

>> Baseline emissions Baseline emissions from displaced petrodiesel are determined as follows:

PDCO2,yBD,yy EFNCVBDBE (1)

with

i

yiBBD

i yiPJ

yregyiPJ

yiBBD

i

yiBBDC

f

ffC

C,,

,,

,,,

,,

yother,BD,,,yi,PJ,ysite,onBD,yBD,y Pf;PPminBD (2)

7 Ministry of MEMD issued a support letter for the project being a “first of its kind” project.

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Where: BEy = Baseline emissions during the year y (tCO2) NCVBD,y = Net calorific value of biodiesel produced in year y (GJ/t) BDy = Quantity of biodiesel eligible for crediting in year y (t) EFCO2,PD = Carbon dioxide emissions factor for petrodiesel (tCO2/GJ) PBD,y = Quantity of biodiesel produced in the project plant in year y (t) PBD,on-site,y = Quantity of biodiesel consumed at the project biodiesel production plant and/or

the oil production plant(s) in year y (t) PDBD,other,y = Quantity of biodiesel that is either produced with alcohols other than methanol

from fossil origin or produced using oil seeds or waste oil(s)/fat(s) other than those eligible under this methodology according to the applicability conditions in year y (t)

CBBD,i,y = Quantity of blended biodiesel type i consumed by the captive consumer(s) in year y (t)

fPJ,i,y = Fraction of biodiesel in the blended biodiesel type i in year y (ratio) freg,y = Fraction of biodiesel in the blended biodiesel which is required by mandatory

regulations of the host country in year y (ratio) i = Blended biodiesel type (e.g. B5, B10, B20, B50 etc.) Since, there is no mandatory regulation in Uganda regarding blending of petrodiesel, ƒreg, y = 0, also, all of the biodiesel to be manufactured shall be utilizing methanol for production and the origin of the same is from fossil fuels, therefore, PBD, other, y = 0. Also, the biodiesel produced shall have a uniform quality and it shall be always of single type in order to avoid any confusion at the different end users. Hence, the equation (2) above reduces to

yBBDC ,yPJ,ysite,onBD,yBD,y f;PPminBD (3)

i.e., BDy is determined in equation (3) as the lowest value between a) the total production of biodiesel in year y (PBD,y) minus onsite biodiesel consumption (PBD,on-site,y)

in the same year y and b) the net consumption of biodiesel by the captive consumers in year y. Therefore, In terms of blended biodiesel, the consumption of eligible biodiesel is calculated by multiplying the consumption of eligible blended biodiesel by the blending fraction (CBBD,y*fPJ,y). Project Emissions Project emissions are calculated as follows:

)PEAFPEPE(PEAFPE yBC,y2,yTR,yMeOH,yBPF,y1,y (4)

Where: PEy = Project emissions in year y (tCO2) PEBPF,y = Project emissions at the biodiesel production plant and, if applicable, the oil

production plant(s) in year y (tCO2) PEMeOH,y = Project emissions from fossil carbon in the biodiesel due to transesterification with

methanol of fossil origin in year y (tCO2) PETR,y = Project emissions from transportation in year y (tCO2) PEBC,y = Project emissions associated with the cultivation of land to produce oil seeds in year

y (tCO2) AF1,y = Allocation factor for the production of biodiesel in year y (fraction) AF2,y = Allocation factor for the oil seeds cultivation in year y (fraction)

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1. - Project emissions at the biodiesel production plant and oil production plant(s) (PEBPF,y) These emissions include fuel and electricity consumption that occurs at the site of the biodiesel production plant and, since the current project does not involve any effluent or waste water treatment plant, etc, the emissions associated with the anaerobic treatment of wastewater are nil. These emissions are estimated as follows:

yWyECyjFC

j

yBPF PEPEPEPE ,,,,, (5)

Where: PEBPF,y = Project emissions at the biodiesel production facility and, if applicable, the oil

production plant(s) in year y (tCO2) PEFC,j,y = Project emissions from combustion of fuel type j in the biodiesel production plant

and oil production plant(s) in year y (tCO2) PEEC,y = Project emissions from electricity consumption in the biodiesel production plant and

the oil production plant(s) in year y (tCO2) PEw,y = Project emissions from anaerobic treatment of waste water in year y (tCO2) As, stated above since, there is no waste treatment included in the project, PEw,y = 0 Emissions from fossil fuel consumption (PEFC,j,y) Emissions from electricity consumption include electricity delivered from the grid to the biodiesel production plant and, the oil production plant. Electricity generated on-site using blended biodiesel is not included here. The project emissions from electricity consumption (PEEC,y) will be calculated following the latest version of “Tool to calculate baseline, project and/or leakage emissions from electricity consumption” version 01. It is however, not expected to use a large amount of grid electricity as there shall be captive generators and biodiesel fired thermal fluid heaters.

yjyjELyjPJ

j

yEC TDLEFECPE ,,,,,, 1** (6)

Where, PEEC,y = Project emissions from electricity consumption in the biodiesel production plant

in year y (tCO2) ECPJ,j,y = Quantity of electricity consumed by the project electricity consumption source j in

year y(MW·h/yr.) EF,EL,j,y = Emission factor for electricity generation for source j in year y (tCO2/MW·h) TDL,i,y = Average technical transmission and distribution losses for providing electricity to

source j in year y The emissions being only in the project scenario and hence are classified under project emissions because of the consumption of electricity from the grid, the option A2 of scenario 1, of the tool can be applied. Thus, the conservative default value of 1.3tCO2/MW·h is chosen as the emission factor (FEEL,j,y) and the default value of 20% is chosen as the average technical transmission and distribution losses for providing electricity to the Project (TDLj,y). 2. - Project emissions from fossil carbon in the biodiesel due to the use of methanol from fossil origin in the transesterification process (PEMeOH,y) Under the current applicability of the methodology, methanol of fossil origin is used for the transesterification of vegetable oil. In the transesterification process, the carbon from the methanol remains in the esters. Thus, a fraction of the carbon in the biodiesel is of fossil origin and need to be accounted as project emissions. These emissions are estimated as follows:

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12

44,,, MeOHCyMeOHyMeOH EFMCPE

(7)

Where, PEMeOH,y = Project emissions from fossil carbon in the biodiesel due to transesterification with

methanol of fossil origin in year y (tCO2) MCMeOH,y = Quantity of methanol consumed in the biodiesel plant, including spills and

evaporations on-site in year y (tMeOH) EFC,MeOH = Carbon emissions factor of methanol, based on molecular weight (tC/tMeOH) 44/12 = Molecular weight ratio to convert t of carbon into t of CO2 (tCO2/tC) 3. - Project emissions from transportation (PETr,y) Project emissions from transportation only have to be accounted if distances of more than 50 km are covered. Project emissions from transportation include the following sources, where applicable:

o Any transportation of oil seeds to the biodiesel and oil production plant, which is integrated at refinery; and

o Any transportation of the biodiesel to the site where it is blended with petrodiesel. Option 1: Emissions are calculated on the basis of distance and the average truck load:

TRm

m

ym

m

yTR EFAVDTL

MTPE

,

, (8)

Where: PETR,y = Project emissions from transportation in year y (tCO2) MTm,y = Material m transported in year y (t) TLm = Average truck load for vehicles transporting material m (t) AVDm = Average distance travelled by vehicles transporting material m (km), including the

return trip/s EFTR = Carbon dioxide emissions factor for vehicles transporting material (tCO2/km) EFTR / TLm =

Emissions factor per unit of load (tCO2/km-ton); 62 gCO2/ton-km for truck i.e., road transport and 22gCO2/ton-km for rail transport8

4. - Project emissions associated with the cultivation of lands to produce oil seeds (PEBC,y) This step applies since the oil seeds used in oil production plant for biodiesel production are cultivated in dedicated plantation and no A/R CDM project activity is being undertaken in that area.

Since, the oil plantation on dedicated lands involve plantation of Castor, Jatropha, and Candlenut in “Warm Temperate Dry” lands, which is not covered under default emission factor as provided in the applicable methodology.

Hence, Option B is chosen in order estimate the emissions associated with the cultivation of Castor, Jatropha, and Candlenut.

8 Table 10 at

http://www.cefic.org/Documents/IndustrySupport/Transport-and-Logistics/Best%20Practice%20Guidelines%20-%20General%20Guidelines/Cefic-ECTA%20Guidelines%20for%20measuring%20and%20managing%20CO2%20emissions%20from%20transport%20operations%20Final%2030.03.2011.pdf

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Option B: Use of project specific data Table 2 discusses the various emission sources which are evaluated for their applicability to the present project and subsequently to estimate these emissions Annex 1 of the applicable methodology is used.

Emission Sources Cases in which the emission sources should be considered

Applicability to the current project

Fossil fuel consumption for agricultural operations

Should be estimated if fossil fuels are used for agricultural operations. This source should be calculated following the latest version of “Tool to calculate project or leakage CO2 emissions from fossil fuel combustion”

The dedicated plantation is in remote areas of Uganda on Savannah grasslands, cheap labour is also available and hence the agricultural operations are undertaken mainly using simple manual mechanical tools, mainly to dig the pits for placing the seedling etc. However, after harvesting a diesel operated tractor is being used for land clearing and undertaking minor agricultural operations. The diesel being consumed by the operation of tractor is being accounted under “fossil fuel consumption”

Electricity consumption for agricultural operations

Should be estimated of electricity is used for agricultural operations (e.g. irrigation). This source should be calculated following the latest version of “Tool to calculate baseline, project and/or leakage emissions from electricity consumption”

The dedicated plantation is in remote areas of Uganda, cheap labour is also available and hence the agricultural operations are undertaken mainly using simple manual mechanical tools, mainly to dig the pits for placing the seedlings. Further, no grid power is available in the farm, and any of the electrical power requirement will be met through diesel generators and diesel being consumed by the operation of generator is being accounted under “fossil fuel consumption”

N2O emissions from the application of fertilizers

Should be estimated if synthetic fertilizers or organic fertilizers (e.g., animal manure, compost, sewage sludge, rendering waste) are applied at the plantation

Only organic fertilizer is being used, @ of 600 kg/acre per year (two cultivations) as determined by internal experience and recommendations. However, actual consumption shall be monitored. Emissions associated with application of organic fertilizer shall be estimated. No synthetic fertilizer is planned to be applied, since

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Castor, Jatropha, and Candlenut gives best response to growth when on organic fertilizer 9 , further as per the cropping practise each time around 40% of the land is always left fellow in order to allow natural recovery and further all the plant residues shall be left to decay in the field itself, thus leaving the land fertility to be intact and any required recovery can then be easily met using only organic fertilizers. The seed cake will also be used to prepare the organic fertilizer to be used in the fields and there shall be almost no loss of soil fertility over a period of time and further no synthetic fertilizers are available in Uganda very easily and in fact Uganda has adopted an Organic policy10.

CO2 emissions from urea application

Should be estimated if urea is applied as a nitrogen source at the plantation

Urea will not be applied. Vermicast is to be used in Castor, Jatropha, and Candlenut cultivation. Proper land management practices are being followed like leaving 40% of the land as fallow during each cultivation cycle, thus allowing natural recovery in the fertility of the soil.

CO2 emissions from application of limestone and dolomite

Should be estimated if limestone or dolomite is applied to the plantation to reduce soil acidity and improve plant growth

Agricultural management practices are being followed in order to retain soil fertility and its characteristics. Cultivation cycles proper land management practices are being followed and 40 % of the land is being left as fallow during each cultivation cycle. This allows for natural recovery in the default soil characteristics, hence no additives are required as the soil is suitable to grow Castor, Jatropha, and Candlenut. No limestone or dolomite is being used on the plantation site. Furthermore, the land in the

9 http://www.agriinfo.in/?page=topic&superid=3&topicid=2310

10 http://sustainabledevelopment.un.org/index.php?page=view&type=99&nr=34&menu=1449

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region of the plantation is no of acidic nature as stated in the following study from the University of Guelph “Enormous reserves of dolomitic limestone, dolomite and marble occur in eastern Uganda, along the border with Kenya and south and east of Moroto. The Neoproterozoic Karasuk metasedimentary sequence of metamorphosed limestones contains approximately 13 billion tonnes of dolomitic marble (DGSM, written comm. Feb. 2000). Unfortunately these limestone and dolomite resources occur in a semi-arid area, distant from the main markets for cement, lime consumption and from agricultural areas with acid soils.”11

CH4 and N2O emissions from the field burning of biomass

Should be estimated if biomass from the plantation is to be burnt regularly during the crediting period (e.g. after harvest)

No field burning is undertaken, since the target land already has large patches of clear ground, thus requiring no field burning, etc. Further, during cultivation cycles proper land management practices are being followed like leaving 40% of the land as fallow during each cultivation cycle, thus allowing natural recovery in the fertility of the soil.

N2O emissions from land management at the plantation

Should be estimated when relevant, for example, drainage/management of organic soils is only applicable in the case of organic soils

The soil in the area of cultivation belongs to mineral soils i.e., mainly ferruginous soils12, containing ferrous, and no organic soils are present in the cultivation area. Organic soils are only in the regions closer to mountains i.e., the national parks. Hence plantation is situated in an area of mineral soils According to the methodology “Nitrogen mineralization associated with loss of soil organic matter resulting from change of land use or a change of management practices of mineral soils

11 www.uoguelph.ca/~geology/rocks_for_crops/54uganda.PDF

12 http://eusoils.jrc.ec.europa.eu/esdb_archive/eudasm/africa/maps/afr_ug2001so.htm

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(applicable in case of mineral soils);” This is actually the opposite case, as a degrading land will be transformed by the cultivation, given that traditional cultivation methods will be followed, hence it would not apply in this case. Not applicable, since there are no organic soils in the project area, and no loss of soil will happen due to change in the land use of the mineral soils in which plantation is situated.

Emissions from the production of synthetic fertilizer that is

used at the plantations

Should be estimated if synthetic fertilizers are applied at the plantation

Not applicable as no synthetic fertilizer is being used.

CO2 emissions resulting from changes in soil carbon stocks following land use changes or

changes in the land management practices

Should be estimated if land use change or change in land management practices is introduced with the cultivation of biomass under the project activity. For perennial plants only, if it can be demonstrated that at maturity of the acreage, the total stock in above ground and below ground biomass is higher in the project case than in the baseline these emissions are expected to be negligible and they are accounted for as zero. For this, the project proponents should:

Estimate the above and below ground biomass in the baseline;

Estimate the above and below ground biomass with the project when the acreage reaches maturity.

This should be done using specific data for the project activity

Emissions associated are being estimated, though temporary net carbon sequestration occurs due to the plantation of Castor, Jatropha, and Candlenut as these plants have significant biomass above the ground. The soil in the area of cultivation belongs to mineral soils i.e., mainly ferruginous soils13 (containing ferrous) and no organic soils are present in the cultivation area and hence emissions associated with mineral soils only are being assessed.

Table 2: Cases for which relevant emission sources from the cultivation of biomass should be taken into account Thus, emissions associated with dedicated plantation, mainly correspond to either N2O emission from the application of fertilizer or change in the carbon stock, if any. Therefore,

ysoilCOyFerNONyBC PEPEPE ,,2,,2, (9)

13 http://eusoils.jrc.ec.europa.eu/esdb_archive/eudasm/africa/maps/afr_ug2001so.htm

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N2O emissions from the application of fertilizers

28

44PE 2,2,yFer,N,N2O ONdirNONyN GWPEFF

( 10)

Where: PEN2O-N,Fer,y = Direct N2O-N emissions from land management at the plantation in year y

(tCO2e) FN,y = Amount of synthetic fertilizer nitrogen and organic fertilizer nitrogen from

animal manure, sewage, compost or other organic amendments applied at the plantation in year y (t N). Where FN,y = FON,y, since no synthetic fertilizer is being used, FSN,y= 0.

EFN2O-N,dir = Emission factor for direct nitrous oxide emissions from Nitrogen inputs (Default Value 0.01 t N2O-N/t N)

GWPN2O Global Warming Potential of N2O (tCO2e/tN2O); (default value = 310) The amount of organic fertilizer N applied at the plantation (FON,y) is calculated based on the quantity of organic fertilizer applied and the N content in the organic fertilizer, as follows:

yp,N,

p

yp,OF,yON, wMF 11)

Where: FON,y = Amount of organic fertilizer nitrogen from animal manure, sewage, compost or

other organic amendments applied at the plantation in year y (t N) MOF,p,y = Amount of organic fertilizer p applied at the plantation in year y (t organic

fertilizer) wN,p,y = Weight fraction of nitrogen in organic fertilizer type p (t N / t organic fertilizer) p = Organic fertilizer types (animal manure, sewage, compost or other organic

amendments) applied at the plantation in year y

CO2 emissions resulting from changes in soil carbon stocks following land use changes or changes in the land management practices (PECO2,soil,y)

As per the methodology,

yOS,CO2,yMS,CO2,ysoil,CO2, PEPEPE (12)

Where: PECO2,soil,y = Project emissions of CO2 in year y resulting from changes in soil carbon stocks

following a land use change or a change in the land management practices (tCO2)

PECO2,MS,y = Project emissions of CO2 in year y resulting from changes in soil carbon stocks of mineral soils following a land use change or a change in the land management practices (tCO2)

PECO2,OS,y = Project emissions of CO2 in year y resulting from changes in soil carbon stocks of organic soils following a land use change or a change in the land management practices (tCO2); = 0, since the cultivation area does not have any organic soil.

CO2 emissions from mineral soils Annual CO2 emissions from soil carbon stock changes are calculated based on the difference between the soil organic carbon stock before and after implementation of the project activity and

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the duration of the transition period (i.e. the time dependence of the stock change factors T), as follows:

M S

yM S,

M SM S

s

sPJ,

sPJ,shistoric,

yMS,CO2,12

44A

T

SOC-SOCPE

(13)

Where: PECO2,MS,y = Project emissions of CO2 in year y resulting from changes in soil carbon stocks

of mineral soils following a land use change or a change in the land management practices (tCO2)

MSshistoric,SOC = Soil organic carbon stock with the land use and land management practices on stratum sMS before the implementation of the project activity (tC/ha)

M SsPJ,SOC = Soil organic carbon stock with the land use and land management practices on stratum sMS under the project activity (tC/ha)

yM S,sPJ,A = Size of the land area of stratum sMS in year y (ha)

T = Time dependence of the stock change factors (years). In case of a single crediting period: 10 years

sMS = Strata of the project area with mineral soils The soil organic carbon stock is calculated based on reference soil organic carbon stock value of

stratum sMS (M SsREF,SOC ) for the relevant soil type and climate region and stock change factors

(FLU, FMG and FI) that reflect that land-use type, the land management practices and any carbon input in the soil, as follows:

MSMSMSMSMS shistoric,I,shistoric,MG,shistoric,LU,sREF,shistoric, FFFSOCSOC (14)

and

MSMSMSMSMS sPJ,I,sPJ,MG,sPJ,LU,sREF,sPJ, FFFSOCSOC ( 15)

Where:

MSshistoric,SOC

= Soil organic carbon stock with the land use and land management practices on stratum sMS before the implementation of the project activity (tC/ha)

M SsPJ,SOC = Soil organic carbon stock with the land use and land management practices on stratum sMS under the project activity (tC/ha)

M SsREF,SOC = Reference soil organic carbon stock value for stratum sMS (tC/ha). IPCC default values will be used,

M Sshistoric,LU,F = Stock change factor for the historic land-use system on stratum sMS

M SsPJ,LU,F = Stock change factor for the land-use system on stratum sMS under the project activity

M Sshistoric,MG,F = Stock change factor for the historic land management regime on stratum sMS

M SsPJ,MG,F = Stock change factor for the land management regime on stratum sMS under the project activity

M Sshistoric,I,F = Stock change factor for input of organic matter on stratum sMS for the historical situation

M SsPJ,I,F = Stock change factor for input of organic matter on stratum sMS under the project activity

sMS = Strata of the project activity with mineral soils Leakage emissions This methodology estimates the following sources of leakage:

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o Emissions associated with the production of the methanol used for esterification; o Positive leakage associated with the avoided production and transportation of petrodiesel.

The leakage emissions are calculated as follows:

yPDyWOFyMeOHy LELELELE ,,, (16)

Where: LEy = Leakage emissions in year y (tCO2) LEMeOH,y = Leakage emissions associated with production of methanol used in biodiesel

production in year y (tCO2) LEWOF,y = Leakage emissions from displacement of existing uses of waste oil/fat in year y

(tCO2). LEPD,y = Leakage related to the avoided production of petrodiesel in year y (tCO2) Leakage from methanol production Emissions from production of methanol that are used in the esterification process to produce the biodiesel are estimated as follows:

PCMeOHyMeOHyMeOH EFMCLE ,,, (17)

Where: LEMeOH,y = Leakage emissions associated with production of methanol used in biodiesel

production in year y (tCO2) MCMeOH,y = Quantity of methanol consumed in the biodiesel plant, including spills and

evaporation on-site in year y (t MeOH) EFMeOH,PC = Pre-combustion (i.e. upstream) emissions factor for methanol production (tCO2/t

MeOH) Leakage related to the avoided production of petrodiesel The substitution of biodiesel for petrodiesel reduces indirect ("upstream") emissions associated with the production of petrodiesel. For the purpose of this methodology, these include the following emission sources:

(1) Production of crude oil. These include emissions from venting, flaring and energy uses;

(2) Oil refinery. These include emissions from energy uses, production of chemicals and catalysts, disposal of production wastes (including flaring) and direct emissions;

(3) Long distance transport.

Emissions related to infrastructure are not be taken into account either for the production of crude oil (e.g. drilling and maintenance of the oil wells) or for the oil refinery (e.g. construction of the refinery), to keep consistency with the estimation of project emissions from biodiesel production where these emission sources are also ignored. Emissions from the distribution to filling stations are not be taken into account, as it is assumed that these emissions balance with the emissions of transport of the biodiesel to the blending facility.

yLDTyREFyPRODyPD LELELELE ,,,, (18)

Where: LEPD,y = Leakage related to the avoided production of petrodiesel in year y (tCO2) LEPROD,y = Leakage related to the production of crude oil in year y (tCO2) LELDT,y = Leakage related to the long distance transport in year y (tCO2)

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LEREF,y = Leakage related to refining of crude oil in year y (tCO2) Leakage related to the production of crude oil (LEPROD,y)

PROD

PD

yBD,

yyPROD, EFNCV

NCVBDLE (19)

Where: LEPROD,y = Leakage related to the production of crude oil in year y(tCO2) BDy = Quantity of biodiesel eligible for crediting in year y (t) NCVBD,y = Net calorific value of biodiesel produced in year y (GJ/t) NCVPD = Net calorific value of petrodiesel (GJ/t) EFPROD = Emission factor for production of crude oil (tCO2e/t) Leakage related to oil refining (LEREF,y)

REF

PD

yBD,

yREFy EFNCV

NCVBDLE (20)

Where: LEREF,y = Leakage related to refining of crude oil in year y (tCO2) BDy = Quantity of biodiesel eligible for crediting in year y (t) NCVBD,y = Net calorific value of biodiesel produced in year y (GJ/t) NCVPD = Net calorific value of petrodiesel (GJ/t) EFREF = Emission factor related to oil refining expressed by per ton of petrodiesel (tCO2e/t) Leakage related to the long distance transport (LELDT,y) Emissions from international long distance transport (transport of crude oil to the refinery) will not be taken into account since the EB has clarified that CDM project activities cannot claim emission reductions from reducing international bunker fuel consumption. EB 25 report paragraph 58 states that “The Board agreed to confirm that the project activities/parts of project activities resulting in emission reductions from reduced consumption of bunker fuels (e.g. fuel saving on account of shortening of the shipping route on international waters) are not eligible under the CDM.” Long distance transport will not occur within the host country where the project activity will take place, therefore these emissions will not be accounted for. Additionally, Petro diesel transport in the host country will not require long distance transport.

B.6.2. Data and parameters fixed ex ante

(Copy this table for each piece of data and parameter.)

Data / Parameter NCVPD

Unit GJ/t

Description Net calorific value of petrodiesel

Source of data 2006 IPCC Guidelines for GHG Inventories

Value(s) applied 43

Choice of data or Measurement methods and procedures

Default value from IPCC 2006 are used in absence of any reliable data in the host country

Purpose of data Calculation of baseline emissions

Additional comment -

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Data / Parameter EFCO2,PD

Unit [tCO2/GJ]

Description Carbon dioxide emissions factor for petrodiesel

Source of data Default value from 2006 IPCC Guidelines, as no national statistics is available.

Value(s) applied 0.0741

Choice of data or Measurement methods and procedures

Default values from the IPCC 2006 are used in absence of any reliable data in the host country

Purpose of data Calculation of baseline emissions

Additional comment -

Project Emissions

Data / Parameter EFEL,j,y

Unit tCO2/MW·h

Description Emission factor for electricity generation for source j in year y

Source of data Tool to calculate baseline, project and/or leakage emissions from electricity consumption (Version 02)

Value(s) applied 1.3

Choice of data or Measurement methods and procedures

Methodology default

Purpose of data Calculation of project emissions

Additional comment To estimate the emissions due to electricity consumption

Data / Parameter TDLj,y

Unit Fraction

Description Average technical transmission and distribution losses for providing electricity to source j, k or l in year y

Source of data Tool to calculate baseline, project and/or leakage emissions from electricity consumption (Version 02)

Value(s) applied 0.2

Choice of data or Measurement methods and procedures

Methodology default

Purpose of data Calculation of project emissions

Additional comment -

Data / Parameter EFC,MeOH

Unit tC/tMeOH

Description Carbon emissions factor of methanol, based on molecular weight

Source of data Methodology default

Value(s) applied 0.375 (calculated as 12/32)

Choice of data or Measurement methods and procedures

Use the value of 0.375 (calculated as 12/32)

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Purpose of data Calculation of project emissions

Additional comment -

Data / Parameter EFTR / TLm

Unit tCO2/ton-km

Description Carbon dioxide emission factor for vehicles transporting material m and biodiesel

Source of data Public source14

Value(s) applied 0.000062 for road/truck transport; 0.000022 for rail transport

Choice of data or Measurement methods and procedures

Sourced from publically available data

Purpose of data Calculation of project emissions

Additional comment Uganda has no local manufacturing for any of the vehicles, trucks etc. and almost all of the vehicles being used are second hand being imported from European countries and hence European norms are being considered while estimating the emissions due to transportation. http://www.voanews.com/content/chinese-factory-tries-to-sell-trucks-to-wary-ugandans/1688199.html http://www.dailymail.co.uk/home/moslive/article-2045557/WARNING-Thieves-want-steal-car-ship-Uganda-OPERATE-IN-THIS-AREA.html

Data / Parameter APJ,Sms,y

Unit Ha

Description Size of land area of stratum sMS in year y

Source of data Project participants as per project planning

Value(s) applied 8,000

Choice of data or Measurement methods and procedures

Cultivation land records and target area

Purpose of data Calculation of project emissions

Additional comment -

Data / Parameter EFN2O-N,dir

Unit tN2O-N/tN input

Description Emissions factor for direct N2O emissions from N inputs

Source of data 2006 IPCC Guidelines, Vol. 4, Ch. 11. Table 11.1

Value(s) applied 0.01

Choice of data or Measurement methods and procedures

Default value

14 http://www.cefic.org/Documents/IndustrySupport/Transport-and-

Logistics/Best%20Practice%20Guidelines%20-%20General%20Guidelines/Cefic-ECTA%20Guidelines%20for%20measuring%20and%20managing%20CO2%20emissions%20from%20transport%20operations%20Final%2030.03.2011.pdf (Table 10)

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Purpose of data Calculation of project emissions

Additional comment -

Data / Parameter GWPN2O

Unit tCO2e/tN2O

Description Global Warming Potential of N2O

Source of data IPCC 2006

Value(s) applied 298

Choice of data or Measurement methods and procedures

Default value

Purpose of data Calculation of project emissions

Additional comment -

Data / Parameter T

Unit Years

Description Time dependence of the stock change factors

Source of data -

Value(s) applied 10 years

Choice of data or Measurement methods and procedures

Fixed by project proponent

Purpose of data Calculation of project emissions

Additional comment It is same as the crediting period of the project.

Data / Parameter SOCREF, SMS

Unit tC/ha

Description Reference soil organic carbon stock value for stratum sMS where sMS are the strata of the project area with mineral soils

Source of data the applicable value for the soil type identified from the 2006 IPCC Guidelines, Vol. 4, Ch. 2, Table 2.3

Value(s) applied 38

Choice of data or Measurement methods and procedures

Default conservative value

Purpose of data Calculation of project emissions

Additional comment Default for grassland under ‘Warm Temperate Dry’ conditions for HAC soils 15 . The dedicated plantation region never encounters any frost round the year and subsequently the Mean annual temperatures is more than 10 with an average rainfall of 500-1300 mm16, further the PET in the region is expected to be in the range of 2100-2300 mm and also the ration of Rainfall: Evaporation i.e., MAP:PET is < 1 17 and hence, the region can be categorized under “Warm Temperate Dry” as per methodology Annex 2.

15 The soil in the cultivation area as clarified under CL11 is largely Ferruginous Soil and these soils are like

“Luvisols”, which is categorized under HAC in the reference Table

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Data / Parameter FLU,historic,sMS, FMG,historic,sMS, FI,historic,sMS

Unit Dimensionless

Description Stock change factor on stratum sMS for the historic land-use system (FLU,historic,sMS), for the historic management regime (FMG,historic,sMS) and for input of organic matter for the historical situation (FI,historic,sMS)

Source of data Default values from the 2006 IPCC Guidelines, Vol.4, Ch. 6, Table 6.2

Value(s) applied 1.0, 0.97, 1.0

Choice of data or Measurement methods and procedures

As suggested by methodology for grassland

Purpose of data Calculation of project emissions

Additional comment To estimate the emissions related to cultivation of oil seeds

Data / Parameter FLU,PJ,sMS, FMG,PJ,sMS, FI,PJ,sMS

Unit Dimensionless

Description Stock change factor for the land-use system on stratum sMS under the project activity, Stock change factor for the historic land management regime on stratum sMS and Stock change factor for input of organic matter on stratum sMS for the historical situation

Source of data Default values from the 2006 IPCC Guidelines, Vol.4, Ch. 6, Table 6.2

Value(s) applied 1.0, 1.17, 1.11

Choice of data or Measurement methods and procedures

As suggested by methodology for grassland

Purpose of data Calculation of project emissions

Additional comment To estimate the emissions related to cultivation of oil seeds

Leakage

Data / Parameter EFMeOH_PC

Unit tCO2/t MeOH

Description Pre-combustion (i.e. upstream) emissions factor for methanol production

Source of data Apple 1998: <http://edj.net/sinor/SFR4-99art7.html> and 2006 IPCC Guidelines

Value(s) applied 1.95

Choice of data or Measurement methods and procedures

Default value

http://books.google.com.hk/books?id=lQ44AAAAIAAJ&pg=PA137&lpg=PA137&dq=luvisols+and+ferruginous+soils&source=bl&ots=PCsYZimo6C&sig=esmvrENBoIzAsSHCCqnKKzRUlHM&hl=en&sa=X&ei=YGWMUqSzAu_iyAG194GoDw&redir_esc=y#v=onepage&q=luvisols%20and%20ferruginous%20soils&f=false

16 http://sdwebx.worldbank.org/climateportal/index.cfm?page=country_historical_climate&ThisRegion=Africa&ThisCCode=UGA

17 Figure 3 of : http://www.sawlog.ug/downloads/TAs/Smith%20SPGS%20Site%20Classification%20-%202%20-%202010.pdf

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Calculation of leakage Calculation of leakage

Additional comment Based on 30 GJ/t energy requirement and average of IPCC emissions factors for natural gas and diesel oil

Data / Parameter EFPROD

Unit tCO2e/t petrodiesel

Description Emission factor for production of crude oil

Source of data World Bank GGFR (amount of flared gas) and BP statistical review (crude oil production) for the year 2005.

Value(s) applied 0.073

Choice of data or Measurement methods and procedures

Use of value as suggested by methodology

Purpose of data Calculation of leakage

Additional comment -

Data / Parameter EFREF

Unit tCO2e/t petrodiesel

Description Emission factor related to oil refinery

Source of data This value was calculated using data from IEA for the year 2005 and NCV values from IPCC 2006 Guidelines.

Value(s) applied 0.233

Choice of data or Measurement methods and procedures

Use of value as suggested by methodology

Purpose of data Calculation of leakage

Additional comment -

Data / Parameter EFLDT

Unit tCO2e/t petrodiesel

Description Emission factor related to long distance transportation

Source of data -

Value(s) applied 0

Choice of data or Measurement methods and procedures

Conservative value

Purpose of data Calculation of leakage

Additional comment -

B.6.3. Ex ante calculation of emission reductions

Baseline emissions Based on equation (3) in section B.6.1, the baseline emissions are calculated as follow:

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yBBDC ,yPJ,ysite,onBD,yBD,y f;PPminBD = min (16,400 -160, 20%×81,200) = 16,240 ton

Thus,

BEy = BDy × NCVBD,y × EFCO2,PD,y = 16,240 × 38 × 0.0741 = 45,728 tCO2e

Project emissions Based on equation (4) in section B.6.1, the baseline emissions are calculated as follow:

)PEAFPEPE(PEAFPE yBC,y2,yTR,yMeOH,yBPF,y1,y

= 0.97 × (314.65+2037.75 +1726.08 + 1×1685.83) = 0.97 × (5764.31) tCO2e = 5591.3807 tCO2e

Where,

yWyECyjFC

j

yBPF PEPEPEPE ,,,,, (as per equation (5))

= FCi,j,y × NCVi,y × EFCO2,i,y + ECPJ,j,y ×EFEL,j,y × (1+TDLj,y) + PEW,y

= 40× 43 × 74.1/1000 + 120 × 1.3 × (1+20%) + 0 = 127.45 + 187.2 tCO2e = 314.65tCO2e

12

44,,, MeOHCyMeOHyMeOH EFMCPE

(as per equation (9)) = 1482 × 12 / 32 ×44 / 12 = 2037.75 tCO2e

m

TRmym

m

yTRTL

EFAVDMTPE ,,

(as per equation (10)) For road transport:

= (48,000) × 580 ×0.000062 = 1726.08 tCO2e

PEBC,y = PEN2O-N,Fer,y + PECO2,soil,y (as per equation (11))

Where,

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28

44PE 2,2,yFer,N,N2O ONdirNONyON GWPEFF

; and

M S

yM S,

M SM S

s

sPJ,

sPJ,shistoric,

yMS,CO2,12

44A

T

SOC-SOCPE

; since, PECO2,OS,y = 0 = (360 x 0.01 × 298 × 44/28) + (36.86-49.35)/10 × 8000 ×44/12 = 1685.83 + 018 tCO2e

Leakage As per equation 19,

yPDyMeOHy LELELE ,,

= 2889.9 – 4391.6 = - 1501.7 tCO2e = 0, since leakage cannot be considered as negative so as to be conservative. Where,

PCMeOHyMeOHyMeOH EFMCLE ,,,

= 1482 ×1.95 = 2889.9 tCO2e And,

yLDTyREFyPRODyPD LELELELE ,,,,

=

LDTyREFyPROD EFEFEF ,,

PD

yBD,

yREFyNCV

NCVBDLE

= 16,240 × 38 / 43 × (0.073 + 0.233 + 0) = 4391.6 tCO2e Emission reductions ERy = BEy − PEy – LEy = 45,728 –5608 – 0 = 40,120 tCO2e

18 Considered as ‘zero’ in line with methodology recommendation for an increase in carbon stock condition

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

Year Baseline

emissions (t CO2e)

Project emissions (t CO2e)

Leakage (t CO2e)

Emission reductions

(t CO2e)

2018 45,728 5,608 0 40,120

2019 45,728 5,608 0 40,120

2020 45,728 5,608 0 40,120

2021 45,728 5,608 0 40,120

2022 45,728 5,608 0 40,120

2023 45,728 5,608 0 40,120

2024 45,728 5,608 0 40,120

2025 45,728 5,608 0 40,120

2026 45,728 5,608 0 40,120

2027 45,728 5,608 0 40,120

Total 457,280 56,080 0 401200

Total number of crediting years

10 years

Annual average over the crediting period

45,728 5,608 0 40,120

B.7. Monitoring plan

B.7.1. Data and parameters to be monitored

(Copy this table for each piece of data and parameter.)

Data / Parameter fPJ,i,y

Unit Ratio

Description Fraction of biodiesel in the blended biodiesel from the project activity, with blending ratio i, in year y

Source of data Records from blending operations

Value(s) applied 0.2

Measurement methods and procedures

Recording volumes or flows with calibrated meters

Monitoring frequency Every produced batch of blend will be monitored

QA/QC procedures During the process of creating the blended biodiesel at the blending point, the blending operation shall be monitored to assure adequate mixing of the products in the correct proportions. For automotive purposes the blending ratio shall not exceed 20%. This includes measuring and recording the volumes and blend levels as verified through bills of lading, meter printouts or other auditable records of both the biodiesel and diesel fuel, which comprise the blend

Purpose of data Calculation of baseline emissions

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Additional comment The blending will either be done by PP directly or any hired 3rd party. The blending operation will be performed for each delivery of the biodiesel to the client’s premises i.e., PP will deliver the biodiesel alone at the client’s premises and subsequently will undertake the blending with available fossil fuel to produce the blended biodiesel under monitored conditions i.e., all fuels to be mixed shall be monitored both before and after blending. Applicability condition; See .BQ-9000 Quality Assurance Program Requirements for the Biodiesel industry for further information.

Data / Parameter freg,y

Unit Ratio

Description Fraction of biodiesel in the blended biodiesel which is required by mandatory regulations of the host country in year y

Source of data Regulations in the Host Country

Value(s) applied 0

Measurement methods and procedures

-

Monitoring frequency Annually

QA/QC procedures -

Purpose of data Calculation of project emissions

Additional comment -

Data / Parameter Various parameters; Compliance of biodiesel produced with applicable national or international regulations e.g., compliance to ASTM D6751 and/or EN14214 and / or ANP42

Unit -

Description Compliance of produced biodiesel with national regulation, if available, biodiesel properties

Source of data Various measurements based on national or international standards

Value(s) applied -

Measurement methods and procedures

Various methods of measurement and uncertainty analysis. The calibration shall be conducted in accordance with applicable regulations and guidance by qualified entity (supplier/manufacturer) to ensure the accuracy or else these will be calibrated at least once in every 3 years when appropriate.

Monitoring frequency According to national or international regulation, for each batch of biodiesel produced

QA/QC procedures According to national or international standards

Purpose of data Calculation of project emissions

Additional comment The Uganda Standard, US 946 describes the specifications for biodiesel fuel as used for blending with automotive gas oil. The parameters to be tested include ester content, density at 15 OC, kinematic viscosity at 40 OC, flash point, methanol content, sulphur content, carbon residue, centane number, sulphated ash content, glycerol content and many other parameters as detailed in the standard

Data / Parameter MPGlyc,y

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Unit T

Description Amount of by-product glycerol produced during plant operation

Source of data Project participants

Value(s) applied 1,624

Measurement methods and procedures

Volumetric flow meter including a volume integrator or load cell to measure the weight of produced glycerol

Monitoring frequency All quantity of produced glycerol must be monitored

QA/QC procedures Volumetric flow meter and integrator calibrated as specified by the equipment supplier/manufacturer or at least once in 3 years. Load cell calibrated periodically. Measured amounts to be crosschecked against mass balance of the biodiesel production unit

Purpose of data Calculation of project emissions

Additional comment Calculation of project emissions

Data / Parameter MUGlyc,y

Unit T

Description Amount of by-product glycerol incinerated or sold or used

Source of data Project participants, based on sales data and internal records in case of use inside the plant or incinerated

Value(s) applied 1,624

Measurement methods and procedures

-

Monitoring frequency All produced glycerol must be tracked via sales data or internal records or its mode of disposal checked by DOE (incl. visual inspection of facilities and record of incineration or disposal if any)

QA/QC procedures DOE to check the produced glycerol was marketed

Purpose of data Calculation of project emissions

Additional comment Applicability condition

Data / Parameter Density at 15 °C; Various parameters; Compliance of biodiesel produced with national regulations

Unit Kg/m3; Various data units.

Description Density for automotive biodiesel fuel; Compliance of produced biodiesel with national regulation, biodiesel properties

Source of data Various measurements based on national or international standards

Value(s) applied 860-900; Various values

Measurement methods and procedures

According to ISO 3675 & ISO 12185 standards; Various methods of measurement and uncertainty analysis

Monitoring frequency According to Uganda standard US 946-2011, at least annually

QA/QC procedures -

Purpose of data Calculation of project emissions

Additional comment Applicability condition

Baseline Emissions

Data / Parameter DBD,y

Unit Kg/l

Description Density of biodiesel fuel being produced

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Source of data Laboratory analysis

Value(s) applied 0.875

Measurement methods and procedures

Measured according to relevant national or international standards regulating determination of density calculations by calibrated equipment

Monitoring frequency Monthly

QA/QC procedures Check consistency of measurements and local / national data with default values by the IPCC. If the values differ significantly from IPCC default values, possibly collect additional information or conduct measurements again.

Purpose of data To calculate the baseline emissions (used to convert volume of biodiesel produced into weight of biodiesel as required for ER calculations)

Additional comment Analysis has to be carried out by accredited laboratory.

Data / Parameter PBD,y

Unit T

Description Quantity of biodiesel produced in the project plant in year y

Source of data On-site measurements by the project participants

Value(s) applied 16,400

Measurement methods and procedures

Calibrated meters/ measurement equipment shall be used and it shall be maintained regularly and checked for proper functioning

Monitoring frequency All produced biodiesel will be metered

QA/QC procedures Cross check production and consumption data with sales records

Purpose of data Calculation of baseline emissions

Additional comment -

Data / Parameter PBD,on-site,y

Unit t

Description Quantity of biodiesel consumed at the project biodiesel production plant and/or the oil production plant(s) in year y

Source of data On-site measurements by the project participants

Value(s) applied 160

Measurement methods and procedures

Calibrated meters/ measurement equipment shall be used and it shall be maintained regularly and checked for proper functioning

Monitoring frequency All consumed biodiesel will be metered

QA/QC procedures Cross check production and consumption data with sales records

Purpose of data Calculation of baseline emissions

Additional comment -

Data / Parameter PDBD,other,y

Unit T

Description Quantity of biodiesel that is either produced with alcohols other than methanol from fossil origin or produced using oil seeds or waste oil(s)/fat(s) other than those eligible under this methodology according to the applicability conditions in year y

Source of data On-site measurements by the project participants

Value(s) applied 0

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Measurement methods and procedures

Calibrated meters/ measurement equipment shall be used and it shall be maintained regularly and checked for proper functioning

Monitoring frequency All produced biodiesel will be metered

QA/QC procedures Cross check production and consumption data with sales records

Purpose of data Calculation of baseline emissions

Additional comment -

Data / Parameter CBBD,i,y

Unit T

Description Quantity of blended biodiesel with blending ratio i, consumed by the captive consumer(s) in year y

Source of data Metering system at fuelling stations

Value(s) applied 81,200

Measurement methods and procedures

Calibrated meters/ measurement equipment shall be used and it shall be maintained regularly and checked for proper functioning

Monitoring frequency Continuous recording of filling consumers´ stationary combustion installations or vehicles

QA/QC procedures Cross check production and consumption data with sales records

Purpose of data Calculation of baseline emissions

Additional comment -

Data / Parameter NCVBD,y

Unit GJ/t

Description Net calorific value of biodiesel produced in year y

Source of data Laboratory analysis

Value(s) applied 38

Measurement methods and procedures

Measured according to relevant national or international standards regulating determination of NCV by calibrated equipment

Monitoring frequency Annually

QA/QC procedures Check consistency of measurements and local / national data with default values by the IPCC. If the values differ significantly from IPCC default values, possibly collect additional information or conduct measurements again.

Purpose of data Calculation of baseline emissions

Additional comment Analysis has to be carried out by accredited laboratory.

Project emissions

Data / Parameter FCi,j,y

Unit t/yr.

Description Fuel consumption of type i combusted in process j during year y

Source of data Plant records

Value(s) applied 20

Measurement methods and procedures

-

Monitoring frequency All consumed fuel must be monitored

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QA/QC procedures Crosscheck fuel purchase data with average consumption data for the equipment

Purpose of data Calculation of project emissions

Additional comment Fuel purchase data must be adjusted for stock changes.

Data / Parameter ECPJ,j,y

Unit MW·h/yr.

Description Quantity of electricity consumed by the project electricity consumption source j in year y

Source of data Plant records

Value(s) applied 120

Measurement methods and procedures

To be collected from the electricity meters

Monitoring frequency All consumed electricity must be metered.

QA/QC procedures Crosscheck electricity purchase data with purchase bills from the grid.

Purpose of data Calculation of project emissions

Additional comment -

Data / Parameter MCMeOH,y

Unit tMeOH

Description Quantity of methanol consumed in the biodiesel plant, including spills and evaporations on-site in year y

Source of data Mass meters

Value(s) applied 1482

Measurement methods and procedures

Calibrated meters/ measurement equipment shall be used and it shall be maintained regularly and checked for proper functioning

Monitoring frequency Continuously

QA/QC procedures Crosscheck against methanol purchase receipts and calculated stoichiometric requirements

Purpose of data Calculation of project emissions. Calculation of leakage emissions.

Additional comment Adjust for stock changes when comparing purchase data with consumption data; also used for leakage calculations. Use most conservative values. Any spills on-site and evaporation are accounted as consumption. Please note that data should also report the source of methanol - from fossil fuel or non-fossil fuel sources. As per the applicability only biodiesel produced using fossil fuel based methanol can be credited.

Data / Parameter MTm,y

Unit T

Description Material m and biodiesel transported in year y

Source of data Plant record, Records of truck operators

Value(s) applied 48,000 for Castor, Jatropha, and Candlenut seeds ; 16,240 for biodiesel

Measurement methods and procedures

Mass or volumetric (including quantity integrator) meters (e.g. load cell)

Monitoring frequency Every Material transported (e.g. oil seeds, vegetable oil and biodiesel) must be monitored

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QA/QC procedures Crosscheck data provided by trucks delivering the material with measured feedstock inputs at plant. Use most conservative values

Purpose of data Calculation of project emissions

Additional comment Currently Castor, Jatropha, and Candlenut seeds are being considered to be transported from plantation site to biodiesel production site. In case the practical situation differs, it shall be modified accordingly.

Data / Parameter AVDm

Unit Km

Description Average distance travelled by vehicles transporting material m, including the return trip(s)

Source of data Records of truck operator

Value(s) applied 580 (2 x 290; return trip) for Castor, Jatropha, and Candlenut seed; 0 for Biodiesel

Measurement methods and procedures

Vehicle odometer/transport records

Monitoring frequency Annually

QA/QC procedures Check consistency of distance records provided by the truck operators by comparing recorded distances with other information from other sources (e.g. maps)

Purpose of data Calculation of project emissions

Additional comment If material m is supplied from different sites, this parameter should correspond to the mean value of km travelled by trucks that supply the biodiesel plant

Data / Parameter TLm

Unit T

Description Average truck load for vehicles transporting material m

Source of data Records of truck operator; plant records, vehicle manufacturer information

Value(s) applied 10 for road and 35 for rail

Measurement methods and procedures

-

Monitoring frequency Annually

QA/QC procedures Cross check against vehicle manufacturer’s capacity rating

Purpose of data Calculation of project emissions

Additional comment Shall be updated as being used while actual operation of the project.

Data / Parameter AF1,y

Unit Fraction

Description Allocation factor for the production of biodiesel in year y

Source of data Estimation from the revenue fraction which can be accounted to biodiesel regarding other by-products like glycerol, bio-waste, etc.

Value(s) applied 0.97

Measurement methods and procedures

Estimated as per the “Guidance on apportioning of emissions to co-products and by-products”

Monitoring frequency Annually

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QA/QC procedures Sale bills of the biodiesel and different by products along with their respective quantities from the production records can be used for cross checking.

Purpose of data Calculation of project emissions

Additional comment Estimate, actual to be calculated once the production and sales start.

Data / Parameter AF2,y

Unit Fraction

Description Allocation factor for the oil seeds cultivation in year y

Source of data Cultivation details

Value(s) applied 1.0

Measurement methods and procedures

Estimated as per the “Guidance on apportioning of emissions to co-products and by-products”

Monitoring frequency Annually

QA/QC procedures DOE can visit the plantation site.

Purpose of data Calculation of project emissions

Additional comment All of the dedicated cultivation to have Castor, Jatropha, and Candlenut and hence the factor is 1.0

Data / Parameter MOF,p,y

Unit t organic fertilizer

Description Amount of organic fertilizer p applied at the plantation in year y where p are the organic fertilizer types (animal manure, sewage, compost or other organic amendments) applied at the plantation in year y

Source of data On-site records and measurements

Value(s) applied 7200

Measurement methods and procedures

Measure the quantities of any animal manure, sewage, compost or other organic amendments applied as fertilizers to the plantation

Monitoring frequency Continuously for the land being cultivated

QA/QC procedures Cross check from the purchase records

Purpose of data Calculation of project emissions

Additional comment It is applied only once in the beginning of planting the saplings.

Data / Parameter wN,p,y

Unit tN/t organic fertilizer

Description Weight fraction of nitrogen in organic fertilizer type p where p are the organic fertilizer types (animal manure, sewage, compost or other organic amendments) applied at the plantation in year y

Source of data measurements by project participants or data as provided by the supplier

Value(s) applied 0.05

Measurement methods and procedures

Where applicable, measure the quantities and nitrogen content of any animal manure, sewage, compost or other organic amendments applied as fertilizers to the dedicated plantation

Monitoring frequency Regularly for land being cultivated

QA/QC procedures 3rd party report should support the estimate

Purpose of data Calculation of project emissions

Additional comment It is applied only once in the beginning of planting the saplings.

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B.7.2. Sampling plan

A. Sampling design Objectives and reliability requirements: The objective is to determine the annual value of the net calorific value of biodiesel and compute an annual average termed as parameter “NCVBD,y” during the crediting period. A simple random sampling method will be used to draw samples for testing. This is based on the assumption that the final biodiesel to be tested is a homogenous mix of all the biodiesels from different seed sources. Sampling frame: Biodiesel will be produced and purified on a daily basis. A total of five batches will be produced every day. The five batches will be mixed together to form one homogenous final product (one homogenous batch per day). The samples will be selected from the homogenously mixed and purified biodiesel prepared on the day of sampling. Target population: Since the biodiesel will be produced on a daily basis, the study population can be thought of as all possible batches of biodiesel produced in a year. For 300 days of production, this makes a sampling frame of 300 batches of biodiesel to be produced in a year. Sample size: Following the ISO 3170 guidelines for sampling liquid fuels, the sampling will involve drawing one litre of purified biodiesel from each batch using well calibrated volume measuring equipments and volumes revalidated with a calibrated Borosil graduated glass measuring flask (90% confidence level). This sample will be used to determine the calorific value of the biodiesel produced and compared to the expected calorific value of biodiesel according to IPCC default values of 38GJ/t. A 90/10 confidence/precision will be used. Sample size calculation: Suppose that the population is homogenous with respect to the continued production of biodiesel. Then simple random sampling would be an appropriate method to estimate the proportion of batches to be tested. The equation to give us the required sample size is: n ≥ 1.6452 NV / ((N-1) * 0.12 + 1.6452 V) Where: n Sample size N Total number of batches p Our expected proportion (0.50) 1.645 Represents the 90% confidence required 0.1 Represents the 10% relative precision (0.1 X 0.5 = 0.05 = 5% points either side of p) Where: V = p (1-p) / p2 p = expected proportion Substituting in our values gives: V=0.5(1-0.5)/0.52

V=1 n≥1.6452 X 300 X 1 / (300-1) X 0.12 +1.6452 X 1 n≥142.5218

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Therefore the required sample size is at least 143 batches to be tested. This assumes that 50% of the batches would be produced and consumed. The sample size calculation suggests that sampling every three days per week should be sufficient for 90/10 reliability. B. Data to be collected Measurements . The parameter of interest is not subject to seasonal fluctuations therefore the measurements will be conducted throughout the year. The net calorific values of the biodiesel will be determined based on direct measurements of the representative samples. The samples will then be independently analyzed for net calorific value using a calorimeter and reported as Joules per gram (J/g). The average of the all measurements will serve as the annual value reported in units of Giga Joules per ton (GJ/t) .The average net calorific value will be used to determine baseline emissions for the year of production. The measurements will be carried out on any three randomly selected days of the week during working hours. Quality assurance/Quality control: The methodology for the determination of net calorific value of the biodiesel samples will follow a strict procedure and quality assured using the ASTM D6751 standard and other applicable standards. A 90/10 confidence/precision will be used. The laboratory analyst will check consistency of measurements with IPCC default values. If the values differ significantly from IPCC default values, he will possibly collect additional information or conduct a series of measurements again. C. Implementation Implementation plan: The calorific value tests will be carried out on an annual basis by a qualified quality assurance and control analyst. Implementation Plan

Data Variable

Data Source

Data Units

Measured, Calculated, Estimated

Data Recording Frequency

Data Archiving

Comments

NCVBD,y, Biodiesel batch produced

GJ/t Measured Three days per week

Electronic and Paper

A calorimeter will be used to take measurements

B.7.3. Other elements of monitoring plan

Personnel Training In order to ensure a proper functioning of the project activity and a proper monitoring of emission reductions, the project staff (CDM team) will be trained. The plant engineers, managers, shift supervisors and support team will be trained in equipment operation, data recording, report writing, operation and maintenance and emergency procedures in compliance with the monitoring plan. API has devised an operation training plan with the aim of acquainting the operators with the following:

1) The nature, purpose and limitations of the plant and equipment 2) The detailed operating instructions on each section and equipment of the plant 3) Normal start up and shut down program for the unit 4) The emergency procedures

The Plant’s operating and maintenance manual will be the basis for training. The training program shall include lectures, seminars, courses, expositions by experienced plant operators and

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maintenance personnel, informal discussions and visits to operating plants and manufactures’ works. The maintenance and training program will be based on the requirements of individual maintenance functions like mechanical, electrical, instrumentation etc. The engineers and technicians could be sent to manufacture’s works to witness and learn about the erection and operations of the plant and equipment. Monitoring Plan Monitoring plan shall be a division and schedule of a series of monitoring tasks. Monitoring tasks shall be implemented according to the monitoring plan and actual conditions of the plant in order to ensure that the real, measurable and long-term greenhouse gas (GHG) emission reduction for the proposed project is monitored and reported. The organizational structure for the CDM monitoring plan along with the responsibilities for designated person is shown below.

Designation Responsibilities

Plant Manager Verification of Data (Consistency & Completeness) Ensuring Storage of Data (Archiving) Review / Corrective and preventive Actions QA/QC procedures

Site Engineer / Incharge / Operation and Maintenance Supervisor

Recording of monitored data Storage of Data (Archiving) Verification of Data Operation & Maintenance

Technician Recording of monitored data

Process diagram with monitoring points

Specific Biodiesel CDM project related monitoring procedures The below mentioned applicable QA/QC standards shall be included in a separate monitoring manual describing the elements of the CDM related monitoring procedures and how to assure and control their quality. A quality management representative from the project participant shall ensure that the monitoring procedures are established and that they meet the requirements as specified in this PDD.

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Monitoring the plant inputs and outputs required for calculating leakage, baseline and project emissions shall be based on a complete documented mass balance, adjusted for stock changes, covering:

o Amounts of feedstock from dedicated plantations transported and processed; o Amounts of catalysts purchased, processed and recovered; o Amounts of methanol purchased and processed and recovered; o Amounts of glycerol produced and incinerated and/or sold for utilization; o Amounts of biodiesel blended and delivered to consumers and consumed.

This mass balance shall be based on a combination of purchase/sales records and records of measurements, in accordance with the measuring instruments available at the plant and stationary consumers or fuelling stations of the captive fleet owner in case of use in transport sector. The mass balance serves as a QA/QC instrument to crosscheck results of monitoring parameters as defined in the respective section. The following procedure shall be used to verify the actual amount of biodiesel that is consumed by the end user for displacement of petrodiesel:

o The produced amount of biodiesel from feedstock from dedicated plantations is recorded by a periodically calibrated metering system;

o The amount of biodiesel produced from feedstock from dedicated plantations on degraded or degrading lands transported to the storage of the blender is recorded by a calibrated metering system at the point of filling the (road) tankers and at the point of delivery at the blender site;

o During the process of creating the biodiesel blend at the blending station, the blending operation shall be monitored to assure adequate mixing of the products in the specified proportions. This includes measuring and recording the volumes and blend levels as verified through bills of lading, meter printouts or other auditable records of both the biodiesel and diesel fuel, which comprise the blended biodiesel;

o Contractually the biodiesel producer i.e., the project proponent will monitor consumption by the consumer as follows:

The receiving amount of blended biodiesel in the gas station or final distributor or consumer has to be recorded by a calibrated metering system and the storage fill level is recorded by a calibrated filling level indicator;

The amount of the blended biodiesel filled into the installation or vehicle where combustion takes place must be recorded by a calibrated metering system;

If blending is done by a third party than a contractual arrangement shall be made, that the same monitoring procedure as described above can be applied.

Since, the biodiesel is produced from oil seeds cultivated in dedicated plantations on degraded or degrading lands; the following specific guidance would be taken into account once the actual production starts:

o If feedstock is pre-processed off-site, the energy consumption of the corresponding facilities shall be included in the monitoring. However, as per current project plans the processing of seeds will be done at the refinery which shall also be producing the biodiesel monitoring compliance with the applicability conditions.

Data monitoring Before starting the crediting period, roles and responsibilities will be assigned to all staff involved in the CDM project activity. The project developer will appoint an Operation and Maintenance Supervisor. This person will be responsible for monitoring the project emission reductions and data management. All staff involved in the collection of data and records will be coordinated by Plant Manager.

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In general the monitoring processes are as follows:

1. The designated persons /technicians read the meters and record the data according to requirements described in section B.7.1, and then collect and submit the data on a monthly basis.

2. The Site Engineer/Incharge is in charge of checking the accuracy and completeness of the collected data;

3. The plant manager is responsible for archiving the data and sale receipts. Quality Control For quality assurance, data and records will be crosschecked by the Plant manager to identify possible errors or omissions. Also, all equipment will be installed by duplicate, so that in case of faults, incidents or erroneous measurements, measurements will be able to be contrasted to determine the veracity of values. The Plant manager will send the monthly monitoring data to API central offices. In this way, a regular final check of the data and analysis project performance prior to any verification will be performed.

1. Calibration of meters. The calibration of meters will be conducted in accordance with applicable regulations and guidance by qualified entity (supplier/manufacturer) to ensure the accuracy or else these will be calibrated at least once in every 3 years.

2. Emergency treatment. When the meter breaks down, the project owner shall inform the qualified calibration organization to check, calibrate, test and treat the meter so as to recover the normal monitoring state.

After handling of the emergency, the project owner shall prepare a report regarding the emergency to explain to DOE that the handling method is reasonable. Data Archiving All the data available at validation and monitored under the monitoring plan will be kept for 2 years after the end of crediting period, or until the last issuance of CERs for this project activity, whichever occurs last.

B.8. Date of completion of application of methodology and standardized baseline and contact information of responsible persons/ entities

Date of completion of application of methodology: 11/11/2013 Contact information of responsible organization: African Power Initiative Limited Plot 1929, Katete Close, Kansanga, Kampala Phone: +256 414 662547 Cell: +256 704944111 Fax: +256414662548 Email: [email protected] African Power Initiative is the Project Participant

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SECTION C. Duration and crediting period

C.1. Duration of project activity

C.1.1. Start date of project activity

10/01/2012 (date of order of plant machinery)

C.1.2. Expected operational lifetime of project activity

20 years

C.2. Crediting period of project activity

C.2.1. Type of crediting period

Fixed crediting period

C.2.2. Start date of crediting period

01/10/2017

C.2.3. Length of crediting period

10 years

SECTION D. Environmental impacts

D.1. Analysis of environmental impacts

An Environmental Impact Assessment (EIA) was carried out and was approved by National Environment Management Authority (NEMA) on 30th October 2014. The host Party and the project owner both regard that the proposed project will not bring any significant negative impacts on the environment and the impacts are manageable via impact mitigation plan.

D.2. Environmental impact assessment

Projected impacts from the development of the project are associated with the preparatory phase (plantation establishment), construction phase and operation phase of the main biodiesel production plant, i.e., refinery. Brief detail of the anticipated impacts and impact mitigation recommendations from the EIA report submitted to NEMA for approval as summarized as below: Anticipated impacts in the preparatory phase and construction phase:

o Land use change and loss of access to land o Loss of habitat and biodiversity o Soil degradation and depletion of natural resources o Construction traffic and associated risk of road accidents o Site clearance probably leading to extensive erosion, change in drainage patterns and

generation of dust

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o Improper waste management o Local employment opportunities o Disruption of social order o Gender differentiated risks o Agro-based industrial development o Physical and economical displacement o Community development

Potential impacts during the operation phase:

o Environmental reclamation of degraded areas and therefore biodiversity conservation o Reduction of biodiversity as monoculture result into simple ecosystem o Noise pollution o Air pollution o Oil spills and waste o Technology Transfer o Trade development o On site health and safety o Direct employment o Management of storm and waste water o Malfunction, accidents and security o Food security o Cumulative impacts

Impact mitigation recommendations:

o Adoption of phased land clearance during plantation establishment and planting of cover crops to reduce erosion related impacts

o Put in place good management and monitoring practices to prevent spread of dust o Avoid forceful eviction of indigenous people from the plantation site and ensure proper

resettlement for the project affected persons o Maintain grooves of natural vegetation especially in the areas that still have good stand of

trees to ensure counter level of biodiversity loss o To counter the potential impacts of monoculture, bands of natural vegetation could also be

maintained. These will serve the due purpose of maintaining a refuge for some biodiversity as well as maintain connectivity between any grooves of natural vegetation maintained

o Put in place an intensive protocol to ensure that the crops do not escape to become invasive as this destroy natural habitats outside the biofuel farm and also ruin neighbouring pastures

o Have onsite oil spill control kits to contain small spills especially at the farm and training employees in spill prevention, control and containment.

o Proper onsite waste collection and storage practices should be instituted o The proposed development will have on site measures to control noise pollution o All workers should be adequately protected against OHS risks

SECTION E. Local stakeholder consultation

E.1. Solicitation of comments from local stakeholders

API Limited invited the local stakeholders including the local DNA for the meeting through newspaper advertisement (published newspapers – Daily Monitor, on 06/03/2013), direct verbal communication, letters and email invitations prior to the scheduled date of the meeting. Place of meeting: International Hotel, Muyenga, Kampala Date: 13/03/2013 Time: 08:00 Hrs. to 12:00 Hrs.

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Ms Dianah Nnakayima and Mr Katumba Godfrey of API introduced the project activity and its different operational aspects and together with Zeroemissions answered various queries of the stakeholders related with the project and CDM. The novel project activity is supported by all of the participants and no serious concerns/opposition was raised. The meeting ended with a brief get-together and applauds.

E.2. Summary of comments received

All the stakeholders agreed that the implementation of the project activity would not have any adverse effect on environment and would result in the development of local communities. The details of the comments / queries by various stakeholders and their reply are presented below:

Stakeholders Concern/questions/comments

Answers/Outcome

How does the project help in sustainable development of the region? (Diana Ahebwe)

The project utilizes the non-food oil seeds which will be cultivated in the degraded land and hence it will ensure better use of degraded land and also reduce the consumption of fossil fuel thus reducing the pollution levels. The project also leads to generation of employment and thus ensuring a better life for the new employees.

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Stakeholders Concern/questions/comments

Answers/Outcome

What is CDM and how will this help the project activity? (Norah Mutesi)

Clean Development Mechanism is legally binding framework under Kyoto protocol by which reduction in GHG emissions is achieved. The reduction in emissions is quantified in terms of CO2 and each ton of CO2 equivalent is called as one CER in the international market, which can then be sold in the international market. This leads to generation of additional revenue which shall help in promoting this new technology and breaking the traditional practice of use of fossil fuel.

Is the quality of biodiesel manufactured using this technology comparable with normal fossil fuel? (Robert Balder)

Yes, in fact the intention is to blend the biodiesel with normal fossil fuel up to 20% and since it will meet all the applicable quality standards there will not be any issue in using the biodiesel. Also, there is no need to make any change in the vehicle or machines. Thus, the biodiesel produced is very much comparable with normal fossil fuel.

Does this project require new skills and how are you going to provide it? (Bandutsya Stephen)

The engineers and technicians to be employed for the project will undergo enhancement of skill through appropriate training as required for the type of activity to be performed.

Is there any project execution experience by the project promoter? (Bandutsya Stephen)

Yes, in fact one similar project of small size is being promoted and already running. Only after the success of pilot project a commercial scale project has been undertaken.

What are the risks in such project? (J P Kabayo)

This is a new technology which still requires promotion and acceptance in the local market. Further, the greatest risk lies in selling of the biodiesel, thus if the product is not accepted in the market, whole project will be a failure. This is more prominent because of high capacity manufacturing of biodiesel.

E.3. Report on consideration of comments received

Since there is no negative comment received and the local are supportive of the project activity, no further consideration on the received comments is required.

SECTION F. Approval and authorization The letter(s) of approval from Party (ies) for the project activity have been provided to the validating DOE.

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Appendix 1. Contact information of project participants and responsible persons/ entities

Project participant and/or responsible person/ entity

Project participant

Responsible person/ entity for application of the selected

methodology (ies) and, where applicable, the selected standardized baselines to the project activity

Organization name African Power Initiative Limited

Street/P.O. Box Plot 1929, Katate Close

Building Kansanga

City Kansanga

State/Region Kampala

Postcode

Country Uganda

Telephone +256 414 662 547

Fax

E-mail [email protected]

Website www.api.co.ug

Contact person Dianah Nnakayima

Title CDM Project Manager

Salutation Ms.

Last name Nnakayima

Middle name

First name Dianah

Department

Mobile +256 704 944 111

Direct fax

Direct tel.

Personal e-mail [email protected]

Appendix 2. Affirmation regarding public funding

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Not applicable as no public funding to the project activity from Annex-I Parties is involved

Appendix 3. Applicability of methodology and standardized baseline

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Please refer section B.2 of the PDD

Appendix 4. Further background information on ex ante calculation of emission reductions

Biodiesel Production per year

Variable Unit Notes

Total acres 20,000 1 Hectare=2.5 Acres

Total Area in hectares 8,000

Area under crop (Ha) 4,800.00

Area under crop in a year=60% of total area

% of seeds Castor, Jatropha, and Candlenut 65% / 18% / 17%

Castor, Jatropha, and Candlenut Yield per acre per year (Kgs)

4,000 / 2,500 / 7,000

After 30% deviation from Ideal yield and with two harvesting seasons for hybrid Castor, Jatropha, and Candlenut planned to be cultivated.

Castor, Jatropha, and Candlenut Yield per hectare per year

10,000 / 6,250 / 17,500 1 Hectare=2.5 Acres

Castor, Jatropha, and Candlenut Oil Yield per hectare per year (Kgs)

3750 / 1,406.25 / 5,906.25

Oil content 50% / 30% / 45%; Oil Extraction efficiency=75%

Total oil yield for cropped area [4800 hectare] (Kgs) 18,804,306.02

Total oil yield for cropped area(hectare) (litres) 18,804,306.02

Density of Castor, Jatropha, and Candlenut oil=0.96 / 0.92 / 0.91 kg/l

Biodiesel produced in Litres per year 18,804,306.02

1 litre of Castor, Jatropha, and Candlenut oil gives 1 litre of biodiesel

Gross Biodiesel production capacity (Litres per day) 62,681.02 Working days is 300

Gross biodiesel production capacity (ton/year) 16,400.0019 Density of biodiesel = 0.875

Net Biodiesel production capacity (Litres / day) 62,500.00

Allowing for some loss and/or utilization during production process

Appendix 5. Further background information on monitoring plan

N/A

19 Density of Biodiesel = 0.875 ( http://www.aqua-calc.com/page/density-table/substance/biodiesel )

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Appendix 6. Summary of post registration changes

N/A