Waste Heat Recovery Cdm Project at Attock Cement Pakistan Ltd

7/28/2019 Waste Heat Recovery Cdm Project at Attock Cement Pakistan Ltd.

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

1

CLEAN DEVELOPMENT MECHANISM

PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD)

Version 03 - in effect as of: 22 December 2006

CONTENTS

A. General description of the small scale project activity

B. Application of a baseline and monitoring methodology

C. Duration of the project activity / crediting period

D. Environmental impacts

E. Stakeholders comments

Annexes

Annex 1: Contact information on participants in the proposed small scale project activity

Annex 2: Information regarding public funding

Annex 3: Baseline information

Annex 4: Monitoring Information


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Revision history of this document

VersionNumber

Date Description and reason of revision

01 21 January

2003

Initial adoption

02 8 July 2005 The Board agreed to revise the CDM SSC PDD to reflectguidance and clarifications provided by the Board since

version 01 of this document.

As a consequence, the guidelines for completing CDM SSCPDD have been revised accordingly to version 2. The latest

version can be found at

.

03 22 December

2006 The Board agreed to revise the CDM project design

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

into account CDM-PDD and CDM-NM.


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SECTION A. General description of small-scale project activity

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

>>

Waste Heat Recovery CDM Project at Attock Cement Pakistan Ltd.

Version: 2.3

28/03/2012

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

>>

The Attock Cement Waste Heat Recovery for Power Generation Project, herein referred to as the project

or the project activity, will comprise the installation of waste heat recovery and electricity generation

technology at the Attock Cement Pakistan Ltd. (ACPL) cement plant in Hub Chowki, Pakistan. Projectowner is the cement plant owner Attock Cement Pakistan Ltd., international cooperation partner (CER-

buyer) of this bilateral CDM project is the German company UPM Umwelt-Projekt-Management GmbH.

The Attock Cement plant has a rated clinker output of 5,700 tons of clinker per day produced in two

production lines. Line 1 (operational since 1988) has a capacity of 2,400 tons/day and Line 2 (operational

since 2006) has a production capacity of 3,300 tons per day. The waste heat of these two production lines

will be recovered and utilized to drive a 12 MW power plant that generates electricity for captive use of

the cement plant. The average power available for consumption will be 8.1 MW. Based on the rated

capacity of the two production lines (7,200 operations hours per year), the electricity consumption of the

cement plant will be reduced by 58,320,000 KWh.

In the absence of the project activity all waste heat that will be recovered and utilized during the projectactivity is vented to the atmosphere. During the project lifetime, the generated electricity will be used for

captive purposes and thereby reduce the total power uptake of the cement plant. The power generated by

the project activity will therefore replace electricity provided by the national electricity grid of the

Karachi Electric Supply Company (KESC) Since the electricity provided by the KESC grid is mainly

generated using fossil fuels, the replacement of 58,320,000 KWh will result in an annual emission

reduction of 34,417 tCO2e. Project emissions will occur due to electricity and fossil fuel consumption of

water pumps that will provide the additional water demand of 2,800 m3/day to the waste heat recovery

plant.

The proposed project activity will contribute to a local sustainable development with the following

effects:

Economic development:

Pakistan is passing through an acute energy crisis. Under the circumstances, the power plant will at least

cut short its 8.1 MW demand of power from the national grid.

This should contribute to a reduction in the number of black-outs and brown-outs experienced by other

grid users, which can help to improve the economic performance of other businesses connected to the

grid.

Social development:

During its construction period of about 15 months, about 500 people of all categories will get jobs -


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though for a short period. While during its regular operations, it will engage around 40-45 staff members.

Environmental development:By resulting in a significant reduction of greenhouse gas emissions and reducing the so-called heat-isle

effect, the project contributes to a sustainable development of the local environment.

Technological development:

By installing Chinese technology in Pakistan, the project facilitates technology transfer and therefore

promotes technological development.

A.3. Project participants:

>>

NameofPartyinvolved

(host)indicatesaHost

Party)

Privateand/orpublic

entity(ies)

projectparticipants

(asapplicable)

Kindlyindicateif

thePartyinvolved

wishestobe

consideredas

project

participant

(Yes/No)

Islamic Republic of Pakistan Attock Cement Pakistan Ltd. No

United Kingdom of Great Britain

and Northern Ireland

UPM Umwelt-Projekt-

Management GmbH

No

Project owner: Attock Cement Pakistan Ltd.Attock Cement Pakistan Limited (ACPL) was incorporated in Pakistan on October 14, 1981 as a Public

Limited Company and listed on the Karachi Stock Exchange. The company started its commercial

production in June, 1988.

CER buyer: UPM Umwelt-Projekt-Management GmbH

UPM Umwelt-Projekt-Management GmbH was originally founded at the beginning of the 1990s to

provide project management and consulting services in the field of lean gas utilization projects. Today,

UPM is mainly working in the field of Clean Development Mechanism (CDM) within the framework of

the Kyoto Protocol.

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

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

>>

A.4.1.1. Host Party(ies):

>>

Islamic Republic of Pakistan

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

>>


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Baluchistan

A.4.1.3. City/Town/Community etc:>>

Hub Chowki, Lasbella

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

unique identification of this small-scale project activity :

>>

The proposed project activity is located at the Attock Cement plant 16 km north-west of the city centre of

Hub Chowki in the Baluchistan Province of Pakistan. Its coordinates are: Latitude: 258'23.75" Longitude

6654'55.65".

Figure 1: Geographical location of the project activity.

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

>>

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

activities, the Project activity is categorized under the following type and category:

Type III. Other project activities Category Q: Waste Energy Recovery (gas/heat/pressure) ProjectsSectoral Scope 04 Manufacturing industries. As the project also uses ACM0012 to calculate the capping

factor, Sectoral Scope 1 Energy industries (renewable -/ non-renewable sources) is applied in addition.

With the proposed project, waste heat boilers will be installed at the outlet of cooler and at the exit of pre-

heater of each line, introducing water into the boilers and producing superheated steam by using waste hot

gases from Cooler and pre-heater. The superheated steam produced from all the boilers merges together

and is introduced to a turbine for power generation. The power thus produce will be connected with the

existing grid station. Exhaust steam of turbine after work condense to water and pump back to the

boilers. After passing from boilers the temperature and volume of hot gases reduced significantly and

further reduced when pass through the dust-collecting filter and then exhausted in the atmosphere. The

following flow chart shows the complete process of WHRS.


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The additional water demand of 2,800 m3

per day will be provided by additional pumps. While the

existing cement factory operates a 90 kW water pump and two 45 kW pumps as backup using gridelectricity and diesel generators during grid load sheds, three 90 kW pumps will be operated during the

project activity. Of the three pumps, two will be in constant operation, while the third will be kept as a

back-up system.

FromLine-

1

Pre-Heater

IDFan

FromLine-

2

Pre-Heater

Cooling

Tower

SPBoile

r

#2

SPBoiler

#1

STEAM

HOTGASES

DUST

WATER

ELECTRICIT

Y

COOLERLINE-1

FLOWDIAGRAM

IDFan

MAKEUPWATER

Settling

Chamber

Settling

Chamber

AQC

Boiler#2

COOLERLINE-2

STEAM

TURBINE

CONDENSER

WATERTOBOILER

TOGRID

STATIONAQC

Boiler#1

GENERATOR

WATERCOOLING

TOWER

POWERGENERATIONTHRUWHRS

Figure 2: Flow chart of the proposed project.

The waste heat recovery equipment is purchased from China. Therefore, technology transfer from China

to Pakistan will take place through the proposed project.

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

>>

Years Estimation of annual emission reductions

in tonnes of CO2e

Year 1 34,417

Year 2 34,417

Year 3 34,417

Year 4 34,417

Year 5 34,417

Year 6 34,417


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Year 7 34,417

Year 8 34,417

Year 9 34,417Year 10 34,417

Total estimated reductions

(tonnes of CO2e)

344,170

Total number of crediting years 10

Annual average of estimated reductions over

the crediting period (tonnes of CO2e)

34,417

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

>>

No public funding is involved in the project financing.

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

large scale project activity:

>>

Appendix C of the Simplified Modalities and Procedures for Small-Scale CDM project activities gives

the definition of a debundled component of a large project activity1:

A proposed small-scale project activity shall be deemed to be a debundled component of a large

project activity if there is a registered small-scale CDM project activity or an application to

register another small-scale CDM project activity:

(a) With the same project participants;(b)In the same project category and technology/measure; and(c)Registered within the previous 2 years; and(d) Whose project boundary is within 1 km of the project boundary of the proposed small-

scale activity at the closest point.

There is no registered small-scale CDM project activity or an application to register another small-scale

CDM project activity that meets all of the above mentioned criteria. Therefore, the Project activity is not a

debundled component of a large scale project activity.

SECTION B. Application of a baseline and monitoring methodology

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

small-scale project activity:

>>

Title of the baseline methodology: AMS III.Q Waste energy recovery (gas/heat/pressure) projects

(Version 04).

1Appendix C of the Simplified Modalities and Procedures for Small-Scale CDM project activities (contained in

annex II to decision 21/CP.8, see document FCCC/CP/2002/7/Add.3).


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Reference: AMS-III.Q., Version 04 (EB 61, Sectoral Scope: 04) It has been referred from the list of

approved methodologies for CDM project activities in the UNFCCC CDM website(http://cdm.unfccc.int/methodologies/SSCmethodologies/approved.html ).

The baseline for the proposed project activity is determined using the Tool to calculate the Emission

Factor for an electricity system (Version 2.2.1, EB 63).

To calculate the project emissions, the Tool to calculate baseline, project and/or leakage emissions from

electricity consumption (Version 01, EB 39) and theTool to calculate project or leakage CO2emissions

from fossil fuel combustion (Version 02, EB 41) are applied.

To estimate the capping factor, corresponding section of ACM0012 Consolidated baseline

methodology for GHG emission reductions from waste energy recovery projects (version 4.0.0, EB560)

is referred.

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

>>

In the applied methodology AMS-III.Q., v. 04, several applicability conditions are listed. Table 1

demonstrates the applicability of all listed requirements.

No. Applicability criteria Project situation Methodology

Applicability

(y/n)

1. The category is for project activities that utilizewaste gas and/or waste heat at existing facilities asan energy source for:

a) Cogeneration; orb) Generation of electricity; orc) Direct use as process heat; ord) Generation of heat in elemental process

(e.g., steam, hot water, hot oil, hot air);

e) Generation of mechanical energy.

The project activity utilizes

waste heat from existingfacilities to generate

electricity, i.e. option b.

Y

2. The category is also applicable to projectactivities that use waste pressure to generate

electricity at existing facilities.

No waste pressure utilization

is included in the project

activity. Criteria not

applicable.

Y

3. The recovery of waste gas/heat/pressure should bea new initiative (no waste gas/heat/pressure was

recovered from the project activity

source prior to the implementation of the project

activity).

The projects plant is a new

facility and no similar

technology has been installed

at the cement plant prior to

the project activity.

Y


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Applicability

(y/n)4. Measures are limited to those that result in

emission reductions of less than or equal to

60 ktCO2 equivalent annually.

The emission reduction will

not exceed 60 ktCO2e per

year during the crediting

period. This will be shown in

chapter B.6.4 of this PDD.

Y

5. The energy produced with the recovered wastegas/heat should be measurable.

The energy produced with

the recovered waste heat is

measurable.

Y

6. Energy generated in the project activity may beused within the industrial facility or exported to

other industrial facilities (included in the project

boundary).

All electricity generated by

the project activity will be

utilized within the Attock

cement plant.

Y

7. Electricity generated in the project activity may beexported to the grid or used for captive purposes.

However, the methodology is not applicable to

projects where the waste gas/heat/pressure

recovery project is implemented in a single-cycle

power plant (e.g. gas turbine or diesel generator)

where heat (energy) generated on-site is not

utilizable for any other purposes on-site except to

generate power. Such project activities shall

consider AMS-III.AL. Conversion from single

cycle to combined cycle power generation..Projects recovering waste energy from such power

plants for the purpose of generation of heat only

can apply this methodology;

All electricity generated by

the project activity will be

used for captive purposes.

The project is not

implemented in a single-

cycle power plant. The

project activity recovers

waste heat from the clinker

production process and

utilizes it for power

generation.

Y

8. For a project activity which recovers wastegas/heat/pressure for power generation from

multiple sources (e.g. kiln and single-cycle power

plant), this methodology can be used in

combination with AMS-III.AL provided that2:

Not applicable. The project

will only recover waste heat

from the cement plant, no

combination with

methodology AMS-III.Al is

required.

Y

9. The emission reductions are claimed by thegenerator of energy using waste energy.

The emission reductions are

claimed by the project owner

and generator of energyAttock Cement Pakistan Ltd.

Y

2The sub-criteria are not listed here, as the criteria is not applicable to the project.


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Applicability

(y/n)10. In cases where the energy is exported to other

facilities (included in the project boundary), the

following are required:

(i) All historical information from the recipient

plants;

(ii) An official agreement exists between the owners

of the project energy generation plant (henceforth

referred to as generator, unless specified otherwise)

with the recipient plant(s) that the emission

reductions would not be claimed by the recipient

plant(s) for using a zero-emission energy source;

The project activity will not

export energy to other

facilities.

Y

11. For those facilities and recipients included in theproject boundary, that prior to implementation of

the project activity (current situation) generated

energy on-site (sources of energy in the baseline),

the credits can be claimed for minimum of the

following time periods:

i. The remaining lifetime of equipmentcurrently being used; and

ii. Crediting period.

No energy was generated on-

site prior to the project

activity. The project activity

will reduce the electricity

uptake from the national grid

(source of energy in the

baseline). Not applicable.

Y

12. The waste gas/heat/pressure utilized in the projectactivity would have been flared or released intothe atmosphere in the absence of the project

activity. This shall be proven by one of the

following options:

i. By direct measurements of energy contentand amount of the waste gas/heat/pressure

for at least three years prior to the start of

the project activity.

ii. Energy balance of relevant sections of theplant to prove that the waste

gas/heat/pressure was not a source of energy

before the implementation of the projectactivity. For the energy balance the

representative process parameters are

required. The energy balance shall

demonstrate that the waste gas/heat/pressure

was not used and also provide conservative

estimations of the energy content and

amount of waste gas/heat/pressure released.

iii. Energy bills (electricity, fossil fuel) todemonstrate that all the energy required for

the process (e.g., based on specific energy

The baseline situation will be

demonstrated using method1. The necessary data will be

provided to the DOE during

the validation.

Y


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Applicability

(y/n)consumption specified by the manufacturer)

has been procured commercially. Project

participants are required to demonstrate

through the financial documents (e.g.,

balance sheets, profit and loss statement)

that no energy was generated by waste

gas/heat/pressure and sold to other facilities

and/or the grid. The bills and financial

statements should be audited by competent

authorities.

iv.

Process plant manufacturers originalspecification/information, schemes and

diagrams from the construction of the

facility could be used as an estimate of

quantity and energy content of waste

gas/heat/pressure produced for rated plant

capacity per unit of product produced.

13. For the purpose of this category waste energy isdefined as: a by-product gas/heat/pressure from

machines and industrial processes having

potential to provide usable energy, for which it

can be demonstrated that it was wasted. For

example gas flared or released into the

atmosphere, the heat or pressure not recovered

(therefore wasted). Gases that have intrinsic value

in a spot market as energy carrier or chemical

(e.g., natural gas, hydrogen, liquefied petroleum

gas, or their substitutes) are not eligible under this

category.

The waste heat recovered

from the clinker making

process complies with the

definition provided above

and it can be demonstrated

that it was wasted prior to the

start of the project activity

(see explanation in the

sections below). No gases

with intrinsic value are

included in the project

activity.

Y

Table 1: Applicability criteria of methodology AMS-III.Q.

As meeting all criteria listed above, the chosen methodology AMS-III.Q. can be deemed as applicable to

the actual project activity.

B.3. Description of the project boundary:

>>

In the small-scale methodology AMS-III.Q, the project boundary is described in paragraph 83:

7. The physical, geographical site of the facility where the waste gas/heat/ pressure is produced

and transformed into useful energy delineates the project boundary.

The geographical extent of the project boundary shall include the following:

3Cited fromAMS-III.Q Waste energy recovery (gas/heat/pressure) projects , v.04, p.3


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The industrial facility where waste energy is generated, including the part of the industrial facility

where the waste gas was utilized for generation of captive electricity prior to implementation of theproject activity;

The facility where steam/process heat in the element process/electricity/mechanical energy is

generated (generator steam/ process heat/electricity/mechanical energy). Equipment providing

auxiliary heat to the waste energy recovery process shall be included within the project boundary;

and

The facility(ies) where steam/process heat in the element process/electricity/ mechanical energy is

used (the recipient plant(s)) and/or grid where electricity is exported, if applicable.

Based on this definition, the project boundary is defined as illustrated in Figure 3 and defined as follows:

The project boundary comprises

the Attock Cement Pakistan Ltd. cement plant in Hub Chowki, Pakistan including the two clinkerproduction lines where the waste heat is generated.

and the equipment that will be installed by the project activity, mainly four waste heat boilers, asteam turbine and a generator.

As the generated electricity will be consumed on-site, the national grid that provides electricity to the

project in the baseline scenario will not be included.

Figure 3: Project boundary of the project activity.


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Table 2: Project development timeline

Assessment and demonstration of additionalityTo assess and demonstrate the additionality, attachment A to Appendix B of the simplified Modalities and

Procedures for Small-Scale CDM project activities is used. According to this guideline, a small-scale

project activity is considered additional, if at least one of the following barriers prevents the project from

being installed:

a) Investment barrierb) Technological barrierc) Barrier due to prevailing practiced) Other barriers

For this project, the demonstration of existence of an investment barrier is chosen. By demonstrating, that

a financially more feasible option (baseline scenario as described in B.4) is leading to more emissions.

Since an investment is not required for the project owner, and the project does generate economic benefits

other than the CDM related income, the benchmark analysis is chosen as appropriate to demonstrate the

additionality of the project.

Therefore, the Guidelines on the assessment of investment analysis are to be used in the following.

Table 3 demonstrates the fulfilment of all guidelines provided in the Guidelines on the assessment of

investment analysis, v. 055.

No. Guidance Project activity

3. The period of assessment should not be limited to the proposed creditingperiod of the CDM project activity. Both project IRR and equity IRR

calculations shall as a preference reflect the period of expected operation

of the underlying project activity (technical lifetime), or - if a shorter

period is chosen - include the fair value of the project activity assets at

the end of the assessment period. In general a minimum period of 10

years and a maximum of 20 years will be appropriate. The IRR

calculation may include the cost of major maintenance and/or

rehabilitation if these are expected to be incurred during the period of

assessment. Project participants are requested to justify and DOEs are

requested to validate the appropriateness of the period of assessment inthe context of the underlying project activity, without reference to the

proposed CDM crediting period.

The period of

assessment is limited

to the technical project

lifetime of 20 years.

This is in line with the

company accounting

policy.

5All guidances listed in Table 3 are cited from Guidelines on the assessment of investment analysis, v. 05.


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4. The fair value of any project activity assets at the end of the assessmentperiod should be included as a cash inflow in the final year. The fairvalue should be calculated in accordance with local accounting

regulations where available, or international best practice. It is expected

that such fair value calculations will include both the book value of the

asset and the reasonable expectation of the potential profit or loss on the

realization of the assets.

According to the

companys policy, aproject lifetime of 20

years and a residual

value of 1% has been

considered..

5. Depreciation, and other non-cash items related to the project activity,which have been deducted in estimating gross profits on which tax is

calculated, should be added back to net profits for the purpose of

calculating the financial indicator (e.g. IRR, NPV). Taxation should only

be included as an expense in the IRR/NPV calculation in cases where the

benchmark or other financial indicator is intended for post-tax

comparisons.

Tax benefit on

depreciation is

included in the IRR

calculation.

6. Input values used in all investment analysis should be valid andapplicable at the time of the investment decision taken by the project

participant. The DOE is therefore expected to validate the timing of the

investment decision and the consistency and appropriateness of the input

values with this timing. The DOE should also validate that the listed

input values have been consistently applied in all calculations.

All input values reflect

to values applicable at

the time of investment

decision. As can be

seen from the timeline

presented in Table 2,

the project starting

date comes shortly

after the financial

analysis has been

conducted. It can

therefore be assumed

that the input data did

not change

significantly between

the calculation and the

final investment

decision.

7. In the case of project activities for which implementation ceases after thecommencement and where implementation is recommenced due to

consideration of the CDM the investment analysis should reflect the

economic decision making context at point of the decision to

recommence the project. Therefore capital costs incurred prior to therevised project activity start date can be reflected as the recoverable

value of the assets, which are limited to the potential reuse/resale of

tangible assets.

No capital costs that

incurred prior to the

revised project activity

start are reflected as

recoverable value ofassets.


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8. Project participants should supply spreadsheet versions of all investmentanalysis. All formulas used in this analysis be readable and all relevantcells be viewable and unprotected. The spreadsheet will be made

available to the Executive Board, UNFCCC secretariat and others

contracted to assess the request for registration on behalf of the Board

including assigned members of the Registration and Issuance Team. In

cases where the project participant does not wish to make such a

spreadsheet available to the public an exact read-only or PDF copy shall

be provided for general publication. In case the PP wishes to black-out

certain elements of the publicly available version, a clear justification for

this shall be provided to the UNFCCC secretariat by the DOE when

requesting registration.

The spreadsheets are

provided to DOE andEB.

9. The cost of financing expenditures (i.e. loan repayments and interest)should not be included in the calculation of project IRR.

The project will be

financed throughequity.

10. In the calculation of equity IRR only the portion of investment costswhich is financed by equity should be considered as the net cash

outflow, the portion of the investment costs which is financed by debt

should not be considered a cash outflow.

The project is

completely financed

by equity.

11. Due to the impact of loan interest on income tax calculations it isrecommended that when a project IRR is calculated to demonstrate

additionality a pre-tax benchmark be applied. In cases where a post-tax

benchmark is applied the DOE shall ensure that actual interest payable is

taken into account in the calculation of income tax. In such situations

interest should be calculated according to the prevailing commercialinterest rates in the region, preferably by assessing the cost of other debt

recently acquired by the project developer and by applying a debt-equity

ratio used by the project developer for investments taken in the previous

three years.

Not applicable.

12. In cases where a benchmark approach is used the applied benchmarkshall be appropriate to the type of IRR calculated. Local commercial

lending rates or weighted average costs of capital (WACC) are

appropriate benchmarks for a project IRR. Required/expected returns on

equity are appropriate benchmarks for an equity IRR. Benchmarks

supplied by relevant national authorities are also appropriate if the DOE

can validate that they are applicable to the project activity and the type

of IRR calculation presented.

The benchmark used is

taken from Appendix

A of the guidelines on

the assessment of

investment analysis.

The benchmarks in

this Appendix are

appropriatebenchmarks for the

equity IRR.

13. In the cases of projects which could be developed by an entity other thanthe project participant the benchmark should be based on parameters that

are standard in the market. The DOE.s validation of the benchmark shall

also include its opinion on whether a company-specific benchmark or a

benchmark based on parameters that are standard in the market is

suitable in the context of the underlying project activity.

Source of benchmark

is publicly available

(EB62, Annex 5) and

can be validated by the

DOE.


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14. Internal company benchmarks/expected returns (including those used asthe expected return on equity in the calculation of a weighted averagecost of capital WACC), should only be applied in cases where there is

only one possible project developer and should be demonstrated to have

been used for similar projects with similar risks, developed by the same

company or, if the company is brand new, would have been used for

similar projects in the same sector in the country/region. This shall

require as a minimum clear evidence of the resolution by the companies

Board and/or shareholders and will require the validating DOE to

undertake a thorough assessment of the financial statements of the

project developer including the proposed WACC to assess the past

financial behavior of the entity during at least the last 3 years in relation

to similar projects.

No internal benchmark

is used.

15. If the benchmark is based on parameters that are standard in the market,the cost of equity should be determined either by: (a) selecting the values

provided in Appendix A; or by (b) calculating the cost of equity using

best financial practices, based on data sources which can be clearly

validated by the DOE, while properly justifying all underlying factors.

The values in the table in Appendix A may also be used, as a simple

default option, if a company internal benchmark is used.

The values provided inAppendix A are

chosen as benchmarks.


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16. If a company.s internal benchmark is used for the expected return onequity, the cost of debt should be based on the weighted average cost ofdebt financing of the legal entity owning the CDM project activity. For

loans, use the weighted average cost of outstanding long-term debt.

For bonds, use the weighted average yield of the bonds during the last

three months prior to the submission of the CDM-PDD for validation or

prior to the investment decision, whichever is earlier. The use of bonds

to determine the cost of debt is only appropriate for corporate bonds

issued in the host country of the CDM project. In cases where the debt

finance structure of the project is not yet available (e.g. a letter of intent

for debt funding is not available), the cost of debt can be assumed as the

commercial lending rate in the country or the yield of a 10 year bond

issued by the government of the host country or, if this is not available,

the bond with the maturity which is closest to 10 years. The followingshould be documented in the CDM-PDD: (a) for bonds: the key

parameters of the bond including the time of maturity, yield, registration

issuance in the financial system and set-up in the market; (b) for loans

from a financial institution: the contract of lending between the financial

institution and the legal entity owning the assets of the project activity,

or, in absence of the contract, a letter from the bank stating its intention

to award the loan and the key terms for the loan; (c) for debt financing

from a parent company: the transfer of capital to the legal entity,

documented with the contract of lending between the parent company

and the legal entity owning the assets of the project activity and/or the

parameters of the corporate bonds as mentioned above. This latter option

is only valid for corporate bonds issued in the host country of the CDM

project activity.

If the benchmark is based on parameters that are standard in the market,

the cost of debt should be calculated as the cost of financing in the

capital markets (e.g. commercial lending rates and guarantees required

for the country and the type of project activity concerned), based on

documented evidence from financial institutions with regard to the cost

of debt financing of comparable projects. In cases where this data is not

available, use the commercial lending rate in the host country to

calculate the cost of debt.

No companys internal

benchmark is used, butthe default values

published in the

guidelines on the

assessment of


17. If a company.s internal benchmark is used for the expected return onequity, then the percentage of debt financing and equity financing shouldreflect the long-term debt/equity finance structure of the legal entity

owning the assets of the project activity. The percentage should be

determined based on the latest balance sheet provided under local

fiscal/accounting standards and rules if: (a) the legal entity owning the

assets of the project activity has balance sheets audited by a third party

within two years prior to the submission of the CDM-PDD for

validation; and (b) the accounting books of the legal entity reflect at least

the total value of all the assets needed for the project activity. If the

debt/equity finance structure is not yet available, 50% debt and 50%

equity financing may be assumed as a default.

No companys internal

benchmark is used, butthe default values

published in the

guidelines on the

assessment of



19/52


19


18. If the benchmark is based on parameters that are standard in the market,then the typical debt/equity finance structure observed in the sector ofthe country should be used. If such information is not readily available,

50% debt and 50% equity financing may be assumed as a default.

The benchmark used is

the default value givenin the guidelines on

the assessment of


19. If the proposed baseline scenario leaves the project participant no otherchoice than to make an investment to supply the same (or substitute)

products or services, a benchmark analysis is not appropriate and an

investment comparison analysis shall be used. If the alternative to the

project activity is the supply of electricity from a grid this is not to be

considered an investment and a benchmark approach is considered

appropriate.

Baseline scenario is

BAU scenario.

20. Only variables, including the initial investment cost, that constitute morethan 20% of either total project costs or total project revenues should besubjected to reasonable variation (all parameters varied need not

necessarily be subjected to both negative and positive variations of the

same magnitude), and the results of this variation should be presented in

the PDD and be reproducible in the associated spreadsheets. Where a

DOE considers that a variable which constitute less than 20% have a

material impact on the analysis they shall raise a corrective action

request to include this variable in the sensitivity analysis

The variables total

investment, electricitysavings and O&M

costs have been varied

in a range of +10% to -

10%, and sensitivity

has been conducted.

The same is reflected

in the investment

analysis spreadsheet.

21. The DOE should assess in detail whether the range of variations isreasonable in the project context. Past trends may be a guide to

determine the reasonable range. As a general point of departurevariations in the sensitivity analysis should at least cover a range of

+10% and -10%, unless this is not deemed appropriate in the context of

the specific project circumstances. In cases where a scenario will result

in the project activity passing the benchmark or becoming the most

financially attractive alternative the DOE shall provide an assessment of

the probability of the occurrence of this scenario in comparison to the

likelihood of the assumptions in the presented investment analysis,

taking into consideration correlations between the variables as well as

the specific socio-economic and policy context of the project activity.

The variables total

investment, electricity

savings and O&Mcosts have been varied

in a range of +10% to -

10%, and sensitivity

has been conducted.

The same is reflected

in the investment

analysis spreadsheet.

Table 3: Guidelines on the assessment of investment analysis.

Benchmark definition:Based on the guidelines on the assessment of investment analysis, v.05, the default benchmark for the

sectoral scope 4 (Manufacturing industries, as per the applied methodology AMS III.Q) is used. Since

version 4 of the guidelines on the assessment of investment analysis, these benchmarks are provided as a

simple default option. The applied post-tax equity benchmark is therefore 15.5%.

Following these guidelines, a financial analysis is conducted with the following main input values:

Item Value Unit

Total investment 1,583,699,389 PKR

Equity 100 %


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20

Item Value Unit

Net capacity 8,100 KW

Annual operation hours 7,200 hAnnual electricity savings 58,320,000 KWh

Electricity price 6.5 PKR/KWh

Water requirement 184,800,000 Imperial gallons/yr

Water price 0.052 PKR/gallon

Repair & Maintenance 5 % of total investment

Replacement costs 3 % of total investment

Annual inflation for utilities 5 %

Annual inflation for repair &

maintenance

7 %

Annual inflation for salaries 10 %

Statutory charges 7 % of net profit before taxInsurance 0.28 % of total investment

Project lifetime 20 years

Income tax 35 %

Residue or residual rate/Fair value 1 %

CERs 35,000 CERs (Based on an initial

estimation)

CER price 11.7 EUR

Table 4: Main input parameters of the financial analysis.

With these input values, two post-tax equity IRRs are calculated; one excluding CER revenues, one

including CER revenues:

IRR excluding CERs 12.13%

IRR including CERs 16.22%

Since the IRR excluding CER revenues is below the benchmark of 15.5% and the IRR including the CER

revenue surpasses this benchmark, it can be concluded that the proposed project is financially additional

with CDM.

Sensitivity analysis

To show the robustness of the results, a sensitivity analysis is carried out for the variation of the decisive

variables of the project activity. These are the total investment, electricity savings and yearly O&M costs.

The results of the sensitivity analysis are shown in the following:


21/52


21

Figure 4Sensitivity analysis for the parameters total investment, electricity savings and annualO&M costs.

-10% -5% 0% 5% 10%

Total investment 15.90% 13.92% 12.13% 10.49% 8.46%

Electricity savings 8.61% 10.44% 12.13% 13.73% 15.27%

Annual O&M costs 13.35% 12.75% 12.13% 11.49% 10.84%Table 5: Detailed results of the sensitivity analysis.

The sensitivity analysis shows that the results of the Investment analysis are robust. For a change of +/-

10% in electricity savings and annual O&M cots, the IRR for the project activity is still below the

benchmark, thus strengthening the conclusions about the additionality of the project activity.

Only in once scenario, total investment -10%, the IRR would exceed the benchmark. A further analysis

shows that if the total investment would be lower than -9.05% of the initially assumed value, the IRR

would reach the benchmark of 15.5% and the project would become financially feasible. However, such

scenario can be excluded, as the total paid amount (as of 03/03/2012) already reached 1,490, 047,673

PKR. This is already 94.1% of the originally assumed 1,583,699,389PKR. A scenario, in which the

project IRR exceeds the benchmark of 15.5% due to a lower total investment is therefore impossible andcan be excluded.

By demonstrating, that the investment is not financially viable for the project owner and a financially

attractive scenario is impossible to occur, even taken into consideration a variation of input parameters

(sensitivity analysis), it is clearly shown that an investment barrier prevents the project from being

implemented and it is therefore considered additional.

B.6. Emission reductions:

B.6.1. Explanation of methodological choices:

>>

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

-10% -5% 0% 5% 10%

TotalInvestment

ElectricityProduction

O&MCosts


22/52


22

Baseline emissions

According to the methodology, in the situation where the electricity is obtained from a specific existingpower plant or from the grid, mechanical energy is obtained by electric motors and heat from a fossil fuel

based element process (e.g., steam boiler, hot water generator, hot air generator, hot oil generator),

baseline emissions can be calculated as follows:

!"!#,! = !"# !"# (!,!,! !"#$,!,!,!)

!!

1

With the input values

!"!#,! Baseline emissions due to displacement of electricity during the yeary in tons of CO2.

!"# Capping factor to exclude increased waste energy utilization in the project yeary due

to increased level of activity of the plant, relative to the level of activity in the baseyears before project start.

!"#

Fraction of total electricity generated by the project activity using waste energy. With

reference to the methodology, this factor is considered 1 as the electricity generated is

driven purely by utilization of waste heat.

!,!,! The quantity of electricity supplied to the recipientjby generator, that in the absence

of the project activity would have been sourced from ith

source (i can be either grid or

identified source) during the yeary in MWh.

!"#$,!,!,! The CO2 emission factor for the electricity source i (i=gr (grid) or i=is (identified

source)), displaced due to the project activity, during the yeary in tons CO2/MWh

Two factors have to be defined in more detail:

To calculate !"#, the methodology refers to the large-scale methodology ACM0012 (latest version:

v. 4.0.0). There, the following alternatives are listed6:

Method-1: Where the historical data on energy released by the waste energy carrying medium is

available, the baseline emissions are capped at the maximum quantity of waste energy released

into the atmosphere under normal operation conditions in the three years previous to the project

activity.

Method-2:If three-year historical data is not available, the manufacturers data for the facility

shall be used to estimate the amount of waste energy the facility generates per unit of product.The product is produced by the process that generates waste energy (departmental process or

process of entire project facility, whichever is more justifiable and accurate). If any modification is

carried out by the project proponent or if the manufacturers data is not available for an

assessment, this should be carried out by independent qualified/certified external process experts

such as a chartered engineer on a conservative quantity of waste energy generated by the project

facility per unit of product manufactured by the process generating waste energy. The value

arrived at based on above sources of data, shall be used to estimate the baseline cap (fcap).

6Cited fromACM0012 - Consolidated baseline methodology for GHG emission reductions from waste energy

recovery projects, v. 4.0.0, pp. 29-32


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23

Method-3: In some cases, it may not be possible to measure the waste energy (heat, sensible heat,

heat of reaction, heat of combustion, etc.) enthalpy or pressure content of WECM (Method-1

requirement), nor the specific amount of WECM per unit of product (Method-2 requirement). Insuch cases, the capping shall be based on indirect information about specific parameters allowing

to estimate the amount of waste energy available. These parameters should be related to the

characteristics of a product or a by-product of the facility from which waste energy can be

recovered (e.g. volume and heat content of hot clinker produced by a kiln in a cement plant, if this

heat can be recovered using air as the WECM). These cases may be of the following two types.

Since three years of historical data are available, for this project, Method 1 is chosen to determine the

capping factor for waste heat recovering projects:

!"# =

!"#,!" !"# !"#,!" !"# + !"#,!" +!"#,!"

!"#

9

.

81 10!

!"#,!"

!"#,! !"# !"#,! !"# + !"#,! +!"#,! !"# 9.81 10

!

!"#,!

2

With the input values:

!"#,!" AveragequantityofWECMreleased(orflaredorwasted)inatmosphereinthreeyearspriortothestartoftheprojectactivity[kg].

!"#,! QuantityofWECMusedforenergygenerationduringyeary[kg].

!"# SpecificHeatofwasteenergycarryingmedium(WECM)[TJ/kg/C].

!"#

,

!" AveragetemperatureofWasteEnergyCarryingMedium(WECM)inthreeyearspriortothestartoftheprojectactivity [C].

!"#,! AveragetemperatureofWasteEnergyCarryingMedium(WECM)inyeary[C].

!"# ReferencetemperaturetobeusedtodetermineavailableenergyinWECMy[25C].

!"#,!" Averagenetcalorificvalueofwastegas(ifWECMiswastegas),threeyearspriortoimplementationofprojectactivitywhichhasunburntcomponentssuchascarbon

particles,COorCH4thatwillprovideenergyinwasteenergyrecoveryequipmenton

combustionofgas[TJ/kg].

!"!,! Averagenetcalorificvalueofwastegasinyeary(ifWECMiswastegas),whichhasunburntcomponentssuchascarbonparticles,COorCH4thatwillprovideenergyin

wasteenergyrecoveryequipmentoncombustionofgas[TJ/kg].

!"#

,

!" AveragepressureofWECMinthreeyearspriortothestartoftheprojectactivity[kg/cm2].

!"#,! AveragepressureofWECMinyeary[kg/cm2].

!"# ReferencepressureofWECM[1atm].

!"#,!" AveragedensityofWECMatactualtemperatureandpressureinthreeyearspriorto

thestartoftheprojectactivity[kg/m3]

!"#,! AveragedensityofWECMatactualtemperatureandpressureinyeary[kg/m3].

9.81 10! Factortoconvertkg-mintoTJ(Tobeusedwhenpressureisexpressedinkg/m2.

,,,


24/52


24

The calculation of the grid emission factor is carried out and described in Annex 3.

Project emissions

In the methodology, the project emissions are defined as7:

14.Project Emissions include emissions due to combustion of auxiliary fuel to supplement waste gasand emissions due to consumption of electricity by the project activity.

15.If the waste gas contains carbon monoxide or hydrocarbons, other than methane, and the wastegas is vented to the atmosphere in the baseline situation, project emissions have to include CO2

emissions due to the combustion of the waste gas.

No waste gas is combusted during the project activity. Therefore, the project emission will only comprise

the baseline emissions from auxiliary fuel and electricity consumption of the project equipment. The onlyproject equipment that is not driven by the self consumption by the power plant and thereby reduces the

electricity sent to the grid, but consumes electricity from a separate line and diesel in cases of grid load

sheds are the pumps that provide water for the project. The emissions caused by the energy consumption

the pumps can be expressed as:

! = !",!,! + !",! 3

Where:

! Project emissions during the yeary in tons of CO2.

!"

,

!,! Are the CO2 emissions from fossil fuel combustion in process j during theyeary (tCO2/yr);

!",! Project emissions from electricity consumption in yeary (tCO2/yr)

The emissions from electricity consumption can be calculated following the Tool to calculate baseline,

project and/or leakage emissions from electricity consumption, version 01. As the electricity is

consumed from the grid, scenario A, described in this tool is applicable and the project emissions from

electricity consumption will be calculated accordingly:

!",! = !",!,!

!

!",!,! (1 + !,!)4

Where:

!",! Project emissions during the yeary in tons of CO2.

!",!,! Quantity of electricity consumed by the project electricity consumption

sourcejin yeary (MWh/yr)

!",!,! Emission factor for electricity generation for source j in year y

(tCO2/MWh). In this one case, this factor is the grid emission factor of the

KESC grid !"#$,!,!,! and will be calculated in Annex 3.

7Cited fromAMS-III.Q Waste energy recovery (gas/heat/pressure) projects, v.04, p.11


25/52


25

!,! Average technical transmission and distribution losses for providing

electricity to sourcejin yeary. In line with the tool, a conservative

standard factor of 20% is assumed here.j Sources of electricity consumption in the project. Here only the pumps are

considered as source of electricity consumption, therefore j is 1.

To calculate the project emissions due to fossil fuel consumption during grid load sheds, the carbon

emission from the diesel generators are calculated following the Tool to calculate project or leakage CO2

emissions from fossil fuel combustion, version 02:

!",!,! = !,!,! !,! 5

Where:

!",!,! Are the CO2 emissions from fossil fuel combustion in process j during the

yeary (tCO2/yr);

!,!,! Is the quantity of fuel type i combusted in processj during the yeary (mass

or volume unit/yr);

!,! Is the CO2 emission coefficient of fuel type i in yeary (tCO2/mass or

volume unit)

i Are the fuel types combusted in processj during the yeary. As only diesel

is used in the generators, i is 1.

j Fossil fuel combusting process. As only the diesel generators consume

fossil fuel, j is 1.

To calculate the emission coefficient, the emission factor of diesel and its NCV are used:

!,! = !,!,! !"!,!,! 6

Where:

!,! Is the CO2 emission coefficient of fuel type i in yeary (tCO2/mass or

volume unit)

!,!,! Is the weighted average net calorific value of the fuel type i in yeary

(GJ/mass or volume unit)

!"!,!,! Is the weighted average CO2 emission factor of fuel type i in yeary

(tCO2/GJ)

Leakage

Since no transfer of equipment is considered in the project activity, the leakage is zero.

! = 0 7

Emission reduction

With the data calculated above, the emission reduction can be calculated:

! = ! ! LE! = ! ! 8


26/52


26

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

Data / Parameter: !"#$,!,!,!

Data unit: tCO2/MHh

Description: Emission factor of the grid

Source of data used: Pakistan Energy Yearbook, Ministry of Minerals & Natural Resources

Value applied: 0.595

Justification of the

choice of data or

description of

measurement methods

and procedures actually

applied :

Calculated as per Tool to calculate the emissionfactor for an electricity

system v. 2.2.1. For the detailed way of calculation, see Annex 3.

Any comment:

Data / Parameter: !,!

Data unit: -

Description: Average technical transmission and distribution losses for providing electricity

to sourcejin yeary

Source of data used: Tool to calculate baseline, project and/or leakage emissions from electricity

consumption

Value applied: 20%


choice of data or

description of

measurement methods


applied :

The default value of 20% will not be measured, but chosen in line with the

methodology.

Any comment:

Data / Parameter: !"#,!"

Data unit: kg of energy carrying medium

Description: Average quantity of WECM released (or flared or wasted) in atmosphere in

three years prior to the start of the project activity.

Source of data used: Calculated from emission recordsValue applied: Year 1 prior to the project activity: 7,088,493,600

Year 2 prior to the project activity: 7,132,089,600

Year 3 prior to the project activity: 6,768,691,200


choice of data or

description of

measurement methods


applied :

Calculated from data based on gas temperature, pressure and composition.

Any comment:


27/52


27


Data unit: TJ/kg/deg CDescription: Specific Heat of waste energy carrying medium vented from the preheaters and

coolers of the two production lines.

Source of data used: Calculated from emission records

Value applied: Line 1:

Preheater: 1.05E-09

Cooler: 1.04E-09

Line 2:

Preheater: 1.05E-09

Cooler: 1.04E-09


choice of data or

description of

measurement methods


applied :

Calculated from data based on gas composition.

Any comment:

Data / Parameter: !"#,!

Data unit: TJ/kg/deg C

Description: Specific Heat of waste energy carrying medium vented from the preheaters and

coolers of the two production lines.


Value applied: Line 1:Preheater: 1.05E-09

Cooler: 1.04E-09

Line 2:

Preheater: 1.05E-09

Cooler: 1.04E-09


choice of data or

description of

measurement methods


applied :

Calculated from data based on gas composition.

Any comment:


Data unit: deg C

Description: Average temperature of Waste Energy Carrying Medium (WECM) vented from

the preheaters and coolers of the two production lines in three years prior to the

start of the project activity.


Value applied:

One year prior to

project activity

Two years prior

to project activity

Three years prior

to project activity


28/52


28

Line 1

Preheater 393 397 391

Line 1Cooler 290 284 274

Line 2

Preheater 339 343 332

Line 2

Cooler 409 372 341


choice of data or

description of

measurement methods


applied :

Calculated from temperature data.

Any comment:

Data / Parameter: !"#

Data unit: deg C

Description: Reference temperature to be used to determine available energy in WECM.

Source of data used: Chosen according to methodology.

Value applied: 25


choice of data or

description ofmeasurement methods


applied :

Chosen according to methodology.

Any comment:

Data / Parameter: !"#,!

Data unit: TJ/kg

Description: Averagenetcalorificvalueofwastegasinyeary(ifWECMiswastegas),

whichhasunburntcomponentssuchascarbonparticles,COorCH4that

willprovideenergyinwasteenergyrecoveryequipmentoncombustionof

gas.Source of data used:

Value applied: 0


choice of data or

description of

measurement methods


applied :

AstheWECMisnotwastegas,theappliedvalueis0.

Any comment:


29/52


29


Data unit: TJ/kg

Description: Averagenetcalorificvalueofwastegas(ifWECMiswastegas),threeyearspriortoimplementationofprojectactivitywhichhasunburntcomponents

suchascarbonparticles,COorCH4thatwillprovideenergyinwaste

energyrecoveryequipmentoncombustionofgas.

Source of data used:

Value applied: 0


choice of data or

description of

measurement methods


applied :

AstheWECMisnotwastegas,theappliedvalueis0.

Any comment:


Data unit: kg/cm2

Description: Average pressure of WECM vented from the preheaters and coolers of the two

production lines in three years prior to the start of the project activity.


Value applied:

One year prior to

project activity

Two years prior

to project activity

Three years prior

to project activity

Line 1

Preheater 0.972 0.972 0.975

Line 1

Cooler 1.03 1.03 1.03

Line 2

Preheater 0.973 0.973 0.973

Line 2

Cooler 1.03 1.03 1.03


choice of data or

description ofmeasurement methods


applied :

Measurementrecords.

Any comment:


Data unit: kg/m3

Description: AveragedensityofWECMventedfromthe preheaters and coolers of the two

production linesatactualtemperatureandpressureinthreeyearspriorto

thestartoftheprojectactivity.


30/52


30


Value applied:

One year prior toproject activity

Two years priorto project activity

Three years priorto project activity

Line 1

Preheater 0.6 0.59 0.6

Line 1

Cooler 0.66 0.63 0.64

Line 2

Preheater 0.65 0.65 0.66

Line 2

Cooler 0.51 0.54 0.57


choice of data or

description of

measurement methods


applied :

Calculatedbasedonmeasurementrecords.

Any comment:

B.6.3 Ex-ante calculation of emission reductions:

>>

According to B.6.1, the emission reductions are defined as:

ERy = BEy PEy LEy

= BEy PEy

= fcap fwcm (EGi,j,y EFElec,i,j,y )i

j

ECPJ,y EFElec,i,j,y (1+TDLy )+FCy NCVy EFCO2 ,y( )

with the following input values used:

9

Abbreviation Description Value Unit

!"# Capping factor to exclude increased waste energy

utilization in the project year y due to increased level of

activity of the plant

1 1

!"#

Fraction of total electricity generated by the project activity

using waste energy. With reference to the methodology, this

factor is considered 1 as the electricity generated is driven

purely by utilization of waste heat.

1 1

!,!,! The quantity of electricity supplied to the recipient j by

generator, that in the absence of the project activity would

58,320


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31

have been sourced from ith

source (i can be either grid or

identified source) during the yeary in MWh.

!"#$,!,!,! The CO2 emission factor for the electricity source i (i=gr(grid) or i=is (identified source)), displaced due to the

project activity, during the yeary in tons CO2/MWh

0.595 !/

!",! Quantity of electricity consumed by the project electricity

consumption sourcejin yeary (MWh/yr)

387.60 MWh

! Average technical transmission and distribution losses for

providing electricity to source jin yeary. In line with the

tool, a conservative standard factor of 20% is assumed here.

20% -

! Is the quantity of fuel type i combusted in process j during

the yeary

19,175 l

! NCVofDieselconsumedbytheproject 43.3 TJ/Gg

!"!

,

! DefaultCO2emissionfactorfordieselcombustion 74,800 Kg/TJ

Therefore:

! = 34,417!e 10B.6.4 Summary of the ex-ante estimation of emission reductions:

>>

Total ex ante estimation of emission reductions:

Year Estimation of

project activityemissions

(tCO2e)

Estimation of

baselineemissions (tCO2e)

Estimation of

leakage (tCO2e)

Estimation of

overall emissionreductions

(tCO2e)

Year 1 283 34,700 0 34,417

Year 2 283 34,700 0 34,417

Year 3 283 34,700 0 34,417

Year 4 283 34,700 0 34,417

Year 5 283 34,700 0 34,417

Year 6 283 34,700 0 34,417

Year 7 283 34,700 0 34,417

Year 8 283 34,700 0 34,417

Year 9 283 34,700 0 34,417Year 10 283 34,700 0 34,417

Total

(tonnes of CO2e)2,830 347,000 0 344,170

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

B.7.1 Data and parameters monitored:

Parameter: EGi,j,y


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32

Unit: MWh

Description: Quantity of electricity supplied by the project activity during the year y.

Source of data: Continuous on-site measurementsValue of data: Will be monitored ex-post

Brief description of

measurement methods

and procedures to be

applied:

Electricity meters

QA/QC procedures to

be applied (if any):The electricity meters will undergo maintenance/calibration according to

national and industrial standards.

Any comment:

Parameter: ECPJ,j,yUnit: MWh

Description: Quantityofgridelectricityconsumedbythewaterpumps

Source of data: Continuous on-site measurements

Value of data: 387.60


measurement methods


applied:

During normal operation of the plant, the pumps that will provide water will be

operated by grid electricity. Since the pumps will not only provide the

electricity to the WHRS plant, but also to the cement factory, the consumption

of electricity caused by the WHRS will be determined by the electricity

consumption of the pumps scaled with the share of water that will be consumed

by the WHRS plant.

QA/QC procedures to

be applied (if any):The electricity meters will undergo maintenance/ calibration according to

industrial standards.

Any comment:

Parameter: !,!,!

Unit: litres

Description: Is the quantity of fuel type i combusted in processj during the yeary

Source of data: Diesel transportation bills between the central storage tank and the pumping

station.

Value of data: 25,188.60


measurement methods


applied:

During normal operation of the plant, the pumps that will provide water will be

operated by grid electricity. During load sheds, a diesel-driven generator will

provide electricity. The diesel consumption will be monitored annually.

QA/QC procedures to

be applied (if any):All bills will be signed by the responsible staff and collected centrally for data

archiving.

Any comment:

Parameter: !,!,!

Unit: TJ/Gg

Description: NCVofDieselconsumedbytheproject

Source of data: IPCC2006. The chosen value reflects the conservative upper limit of the 95%

confidence interval.

Value of data: 43.3

Brief description of New IPCC publications will be checked and values be updated if necessary.


33/52


33

measurement methods


applied:QA/QC procedures to

be applied (if any):

Any comment:

Parameter: !"!,!,!

Unit: kg/TJ

Description: DefaultCO2emissionfactorfordieselcombustion

Source of data: IPCC2006. The chosen value reflects the conservative upper limit of the 95%

confidence interval.

Value of data: 74,800


measurement methods


applied:

New IPCC publications will be checked and values be updated if necessary.

QA/QC procedures to

be applied (if any):

Any comment:

Parameter: !"#,!

Unit: Tonnes of energy carrying medium

Description: Average quantity of WECM released (or flared or wasted) in atmosphere in

year y.Source of data: Continuous on-site measurements

Value of data: Will be monitored ex-post


measurement methods


applied:

Measurements of gas temperature and pressure.

QA/QC procedures to

be applied (if any):The meters will undergo maintenance/ calibration according to industrial

standards.

Any comment:

Parameter: !"#,!

Unit: deg C

Description: Average temperature of Waste Energy Carrying Medium (WECM) vented from

the preheaters and coolers of the two production lines in year y.




measurement methods


applied:

Measurements of gas temperature.

QA/QC procedures to


standards.


34/52


34

Any comment:

Parameter: !"#,!

Unit: kg/cm2

Description: AveragepressureofWECMvented from the preheaters and coolers of the two

production lines inyeary.




measurement methods


applied:

Measurements of gas pressure.

QA/QC procedures to


standards.

Any comment:

Parameter: !"#,!

Unit: kg/m3

Description: AveragedensityofWECMventedfrom the preheaters and coolers of the two

production linesatactualtemperatureandpressureinyeary.

Source of data: Continuous calculation based on on-site measurements.



measurement methods

and procedures to beapplied:

Calculation based on temperature and pressure.

QA/QC procedures to


standards.

Any comment:

Parameter: !"#

Unit: 1

Description: AveragedensityofWECMventedfrom the preheaters and coolers of the two

production linesatactualtemperatureandpressureinthreeyearspriorto

thestartoftheprojectactivity.

Source of data: Continuous calculation based on on-site measurements.Value of data: Will be monitored ex-post


measurement methods


applied:

Calculation according to the mathematical procedures described above.

QA/QC procedures to


standards.

Any comment:

B.7.2 Description of the monitoring plan:


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>>

For the operation of the Waste Heat Recovery Power Plant and monitoring of all the parameters, ACPL

has adopted the following procedures:

a) Responsibility of the Project Management

ACPL will be responsible for the execution of the monitoring plan. It will collect and store relevant data

in a systematic and reliable way, evaluate them regularly and ensure the availability of all the relevant

information for verification. Both paper and an electronic spreadsheet file will be kept for record keeping.

ACPL shall manage all monitored variables and will regularly present the same to the DOE for

verification.

b) Quality Assurance and Quality Control

The WHR Power Plant shall be considered as a separate section and effectively controlled by section

incharge under the supervision of GM (Works). The quality assurance and quality control for recording,

maintaining and archiving data shall be maintained by ACPL. It will also make sure that it provides the

staff in charge of data collection and monitoring with necessary training opportunities to enhance their job

skills and efficiencies.

c) On-site Procedures

Operation and Maintenance Logs (O&M)

Daily operational parameters will be logged and maintained for each equipment such as boilers, turbineand generator by the operator on real time basis. The maintenance of each equipment will be recorded in

the history file of each equipment. This will be reviewed by the section incharge on a regular basis. Any

event of significance will be reported and recorded in a special log, which will be reviewed by relevant

Senior Staff Members on regular basis.

Operation and Maintenance Report

The Section In-charge of WHR Power plant shall prepare a monthly report on the performance of WHR

Power Plant and submit the same to top management for their review and comments. The report will

include the following topics:

- Summary

- Production achieved

- Major cost elements- Stoppages report

- Accidents, malfunctions and remedial measure taken

- Safety and environment

- Meter records

- Any other material information

Procedure for handling of erroneous measurement, monitoring data adjustment and data

uncertainty

Respective Area supervisors are responsible for reporting and erroneous measurement, and any

uncertainty of parameters. The report will be sent to the section incharge for review and further action.


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Any erroneous measurement and uncertainty found will be recorded and the section incharge will be

required to immediate corrective actions under the supervision of GM (Works).

Procedure for training of monitoring staff

ACPL has detailed training programs for the relevant staff based on their technical knowledge

requirements that will help them to ensure smooth operations of the plant. When new equipment is

installed and/or the maintenance for the monitoring equipment is carried out, training for the proper

management and operation of the equipment will be provided to the operators.

Procedure for handling of emergencies situations

In accordance with the internal regulations, an Emergency Management Plan will be prepared. Personal

safety appliances will be provided to the shift operators according to their requirements. Regular training

for safety is provided to the shift operators by the Safety Incharge during the regular training as

mentioned above.

Data Storage and Filing Electric Workbook

All relevant data will be monitored and electronically stored at least 2 years after the end of the crediting

periods.

d) Operational and Management structure

The tentative operational and management structure of the personnel who will be involved in the project

activity is shown below:


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While the structure of the CDM responsibilities are displayed in a separate chart:


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B.8 Date of completion of the application of the baseline and monitoring methodology and thename of the responsible person(s)/entity(ies)

>>

Date of completion of the application of the baseline and monitoring methodology: 11/11/2010

Henning Huenteler

Senior CDM Services Manager

UPM Umwelt-Projekt-Management GmbH

PRC

100125 Beijing Chaoyang District

42 Liangmaqiao RoadGuangming Hotel 0708 (B)

[email protected]

UPM Umwelt-Projekt Management GmbH is a project participant as listed in section A.3 and Annex 1.

SECTION C. Duration of the project activity / crediting period

C.1 Duration of the project activity:

C.1.1. Starting date of the project activity:>>

13/05/2010 (Date of signature of main equipment purchase contract, it is the earliest date of real action of

the project)

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

>>

20 years, 0 months

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

A fixed crediting period is chosen. The relevant information is given in section C.2.2.

C.2.1. Renewable crediting period

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

>>

Not applicable

C.2.1.2. Length of the first crediting period:

>>

Not applicable


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C.2.2. Fixed crediting period:

C.2.2.1. Starting date:

>>

15/05/2012

C.2.2.2. Length:

>>

10 years, 0 months

SECTION D. Environmental impacts

>>

D.1. If required by the host Party, documentation on the analysis of the environmental impactsof the project activity:

>>

Electric power will be produced by using the heat going waste in the exhaust gases of two coolers and

two preheaters of the already operational two cement lines. Therefore, the adoption of this technology

will contribute positively to conserve resource (heat) so far going waste while at the same time it will

further improve the environment. M/S HCRDI, China will supply technology/plant.

The total covered area for the power plant will be 1500 m2. No fuel will be used as waste heat of the

exhaust gases from two pre-heaters and two clinker coolers of the already two operational cement lines

will be used. Resultantly, there will not be any emissions of gases into the atmosphere. Further, the

process will result in lowering of the temperature of the discharged flue gases, thus avoiding the

phenomenon of "heat island". The cooling water requirement will be about 4,500 m3 for one time

charging in the cooling circuit of the plant and 106 m3/h will be used as make-up water for the minor

windage / cooling losses.

Effluent from all the areas of power plant including cooling tower and the sewage from toilets will be

mixed up with the effluent from the already operational cement plant and power plant and after its

anaerobic treatment it will be reused within the battery limits of the plant area for irrigation of vegetation,

trees, plants and sprinkling on road sides to minimize fugitive dust.

There will be no contribution of sulphur dioxide (SO2), Nitrogen Oxides (NOx), Carbon monoxide (CO)

and Particulate Matter (PM) from the power plant will not take place due to the fact that heat from the

waste gases (flue gases) of two coolers and two preheaters of the already operational cement plantpresently going waste, will be harnessed through use of Heat Exchangers (HEs). This heat will be used

for the power plant. Resultantly, zero emissions from the power plant will be achieved.

Solid wastes, to be generated from power generation activity, will be disposed off in environmentally

sustainable fashion. The plant inbuilt mechanism will help restrict the noise levels below their limiting

value of 85 dB(A) as prescribed by the National Environment Quality Standards (NEQS). Additionally,

because the plant is to be housed in a closed building, there will be further drastic cut in noise levels.

From the IEE (Initial Environmental Evaluation), it is concluded that the project requires only IEE and

there is no need of environmental studies in the form of an Environmental Impact Assessment (EIA).


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

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

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

As described above, it is expected that there will be no significant negative environmental impacts

associated with the Project activity. Therefore, no EIA going further than the IEE-Report is necessary.

Additionally, Attock Cement Pakistan Ltd. will adopt measures to implement the issued recommended in

the IEE report.

SECTION E. Stakeholders comments

>>

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

>>A formal stakeholder meeting was conducted on August 03, 2010 at Officers Mess of ACPL after the

event was published by public notices on the 28 th of July on the factory gate, the workers union office and

the public market near the project site. A list of the meeting participants is presented on page 49.

During the meeting brief project description, likely environmental and socio-economic impacts, their

mitigation measures and project alternatives were defined to the stakeholders.

After description of the project, participants were to encourage asking the question regarding the project

environmental, socio- economic impacts and their mitigation measures. Their queries are incorporated to

this section.

After the introduction of the project, the stakeholders have filled out questionnaires regarding theiropinion towards the project. A summary of all answers can be reviewed in chapter E.2.

E.2. Summary of the comments received:

>>

The questio

Documents

Waste Heat Recovery Cdm Project at Attock Cement Pakistan Ltd