CDM-SSC-PDD (version 02) CDM – Executive Board page 1

CLEAN DEVELOPMENT MECHANISM

SIMPLIFIED PROJECT DESIGN DOCUMENT FOR SMALL-SCALE PROJECT ACTIVITIES (SSC-CDM-PDD)

Version 02

CONTENTS

A. General description of the small-scale project activity B. Baseline methodology C. Duration of the project activity / Crediting period D. Monitoring methodology and plan E. Calculation of GHG emission reductions by sources F. Environmental impacts G. Stakeholders comments Annexes Annex 1: Information on participants in the project activity Annex 2: Information regarding public funding

Appendix

Appendix A: Abbreviations

Appendix B: List of References

CDM-SSC-PDD (version 02) CDM – Executive Board page 2 SECTION A. General description of the small-scale project activity A.1. Title of the small-scale project activity: >> 5 MW Biomass based Cogeneration project at Deepak Spinners Limited (DSL),

Baddi, Himachal Pradesh

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

DSL is engaged in the energy intensive business of textile manufacturing. The manufacturing plant at

Baddi requires continuous power supply as well as steam for carrying out the operations, the requirements

being 3.7 Mega-Watt (MW) and 5 tonnes per hour (tph) respectively. Currently the plant is getting power

from the grid and has rice husk based boilers for steam generation. The plant also has diesel generators

which are run during non-availability of power from the grid. To ensure reliable, cost-effective and clean

power and steam for the plant, DSL has opted for a 5 MW biomass based cogeneration route.

The purpose of the project activity is to utilize surplus biomass available in the region for effective

generation of power and steam for captive use. The project would enable multiple benefits to the promoters

in terms of increased power availability and lower cost. Also usage of clean and green power in the

processes might improve competitiveness of the products in the international market.

Pre Project Scenario

The manufacturing facility’s thermal requirement is being met by a rice husk fired boiler. The electrical

requirement is being met by the grid supply and diesel generators (DG) on-site. The DG sets act as standby

and also during the peak load hours.

Post Project Scenario

The cogeneration system (project activity) will be replacing the present boiler, grid supply as well as the

DG sets. The total thermal and electrical requirements of the manufacturing facility will be met by the

project activity.

CDM-SSC-PDD (version 02) CDM – Executive Board page 3 Project’s contribution to Sustainable Development

The project activity’s contributions towards the indicators for sustainable development1 are as follows:

1. Socio-economic well being: The project activity would result in generation of employment of people

from various strata of the society. The project activity would be procuring the biomass from the

surrounding locality. This biomass is usually a waste and is generally burnt by the local people without

utilizing its heat content effectively. Procurement of biomass from the nearby locality would open up an

additional revenue stream and thereby contribute towards socio-economic upliftment.

2. Environmental well being: The project activity would benefit the environment by replacing the fossil

fuel based power generation and thereby resulting in resource conservation and reduction of Greenhouse

Gas (GHG) emissions. Also it would result in effective and efficient utilization of the energy content of the

biomass otherwise unutilized and disposed indiscriminately.

3. Technological well being: The project activity will be generating power and steam by utilizing biomass

as fuel. High energy efficient combustion technology will be used in the project along with equipments for

particulate matter control.

A.3. Project participants: >>

Name of Party involved (*) ((host) indicates a host party)

Private and/or public entity(ies) Project participants(*)

(as applicable)

Party involved wishes to be considered as project

participant (Yes/No)

Ministry of Environment & Forest, Government of India

Deepak Spinners Limited No

1 Sustainable Development Indicators as given in the interim approval criteria for CDM projects by the Government of India, http://envfor.nic.in/divisions/ccd/cdm_iac.html

CDM-SSC-PDD (version 02) CDM – Executive Board page 4 A.4. Technical description of the small-scale project activity: >> The project consists of a high pressure, high temperature boiler feeding steam to a multistage, bleed cum

condensing impulse turbine. The turbine is coupled to a brushless excitation alternator. The specifications

of these systems are as follows:

Boiler

Type: Atmospheric Fluidized Bed Combustion (AFBC) Boiler

Pressure: 67 kg/cm2

Temperature: 485 °C

Capacity: 30 tph

Fuel: Rice Husk, Wood chips

Efficiency: 82 %

Turbine

Type: Multistage, Extraction cum condensing turbine, Horizontal, Impulse type

Capacity: 5 MW

Inlet steam pressure: 64 Kg/cm2

Temperature: 485 °C

Rated speed: 8250 RPM

Gearbox output speed: 1500 RPM

Inlet steam flow: 30 tph

Extraction @ 10ata: 8 tph

Extraction @ 3.5ata: 4 tph

Steam to Condenser: 18 tph

Alternator

Rating: 5 MW, 6250 kVA

Type: Brushless Excitation

Generation Voltage: 11 kV

Frequency: 50 Hz

Speed: 1500 RPM

Condensor

Capacity: 18 tph

Cooling water inlet temp.: 32 °C

CDM-SSC-PDD (version 02) CDM – Executive Board page 5 Cooling water outlet temp.: 40 °C

Total cooling water flow-rate: 1400 Cu.m/Hr

A.4.1. Location of the small-scale project activity: A.4.1.1. Host Party(ies): >> India A.4.1.2. Region/State/Province etc.: >> Himachal Pradesh A.4.1.3. City/Town/Community etc: >> Baddi, District Solan A.4.1.4. Detail of physical location, including information allowing the unique identification of this small-scale project activity(ies): >> The project activity is located at Baddi industrial area in Nalagarh Tehsil (latitude: 30.57 North,

Longitude: 76.22 East), Solan district, Himachal Pradesh, India. It will be in the premises of DSL at their

manufacturing unit situated in Baddi industrial area. Baddi is around 40 kms from Chandigarh and 22 kms

from Kalka broad gauge railway station. The broad geographical location of the Baddi is depicted in the

following map:

CDM-SSC-PDD (version 02) CDM – Executive Board page 6

Location of Project Activity (Maps not to scale)

CDM-SSC-PDD (version 02) CDM – Executive Board page 7 A.4.2. Type and category(ies) and technology of the small-scale project activity: >>

Main Category :

Type I – Renewable energy projects

Sub – Category :

D – Renewable electricity generation for a grid

This category comprises renewable energy technologies that supply electricity to an electricity distribution

system that is or would have been supplied by at least one fossil fuel or non-renewable biomass fired

generating unit.

Biomass-based co-generating systems that supply electricity to a grid are included in this category. For co-

generation systems and/or co-fired systems to qualify under this category, the energy output shall not

exceed 45 MWthermal. E.g., for a biomass based co-generating system the rating for all the boilers combined

shall not exceed 45 MWthermal.

This project activity is a biomass based cogeneration project to produce heat (steam) and electricity for on-

site use. It clearly qualifies in the above category since the rating of the boiler is less than the stipulated

limit as shown below:

Boiler Capacity: 30 TPH

8.33 kg/s (= 30 *1000/3600)

Energy of steam: 3377 kJ/kg (at 67 Kgf/cm2 pressure and 485 °C temperature)

3.377 MJ/kg

Energy of water (at 100 °C) 418 kJ/kg

0.418 MJ/kg

Boiler rating: 8.33*(3.377 – 0.418)

24.65 MWthermal

Technology of project activity

The project activity is a biomass based cogeneration plant with high-pressure steam turbine configuration.

Combustion technology has been used for the project activity.

The selection of most appropriate combustion technology for the project was based on the following

characteristics:

Operation related • Control

CDM-SSC-PDD (version 02) CDM – Executive Board page 8

• Response • Maintenance • History

Fuel Related • Moisture flexibility • Ash flexibility • Size flexibility • Fouling resistance • Safety

Efficiency • Carbon burning • Excess air

Emission • NOx • Acid gas absorption

Atmospheric Fluidized Bed Combustion (AFBC) technology will be used for generating steam, which

represents the best available technology as compared to pile burning and stoker fired boilers.

Since there is requirement of steam as well as power at the manufacturing set-up, so extraction cum

condensing turbine is the best option for the project.

The pressure and temperature rating of the boiler have been selected to be the highest possible based on the

techno-economic feasibility to give higher fuel efficiency.

A.4.3. Brief explanation of how the anthropogenic emissions of anthropogenic greenhouse gas (GHGs) by sources are to be reduced by the proposed small-scale project activity, including why the emission reductions would not occur in the absence of the proposed small-scale project activity, taking into account national and/or sectoral policies and circumstances: >>

The project activity would be generating heat and electricity by utilizing biomass - a carbon neutral fuel.

Thereby it will replace the boiler, grid power and the diesel generators. Although the present boiler is also

primarily rice husk based (carbon neutral fuel), the grid power and the diesel generators are net emitters of

GHG. Thus the net GHG emission reduction will result from displacement of electricity supplied by grid

and diesel generators by the project activity.

The voluntary initiative taken by DSL to implement this project activity will result in the reduction of

around 284,364 tonnes of CO2e over a 10 year period. The details of the same have been provided in

section B and section E.

CDM-SSC-PDD (version 02) CDM – Executive Board page 9 A.4.3.1 Estimated amount of emission reductions over the chosen crediting period: >>

Years Annual Estimation of emission reduction in tonnes of CO2e

2006-2007 29842 2007-2008 31596 2008-2009 31596 2009-2010 31596 2010-2011 31596 2011-2012 31596 2012-2013 31596 2013-2014 31596 2014-2015 31596 2015-2016 31596

Total estimated reductions (tonnes of CO2e) 284364

Total number of crediting years 10 years

Annual Average over the crediting period of estimated reduction (tonnes

of CO2e)

284364

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

No public funding from parties included in Annex I is involved in the project activity.

A.4.5. Confirmation that the small-scale project activity is not a debundled component of a larger project activity: >> According to Appendix C of Simplified Modalities & Procedures for small scale CDM project activities,

‘Debundling’ is defined as the fragmentation of a large project activity into smaller parts. A small-scale

project activity that is part of a large project activity is not eligible to use the simplified modalities and

procedures for small-scale CDM project activities.

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:

• By the same project participants;

• In the same project category and technology/measure; and

• Registered within the previous 2 years; and

CDM-SSC-PDD (version 02) CDM – Executive Board page 10

• Whose project boundary is within 1 km of the project boundary of the proposed small- scale

activity at the closest point.

The proposed project activity is not a debundled component of a large project activity as the project

proponents neither have registered within the previous 2 years for the same project category nor do they

propose to set up another biomass based cogeneration plant within 1 km radius of the proposed small-scale

activity.

CDM-SSC-PDD (version 02) CDM – Executive Board page 11 SECTION B. Application of a baseline methodology: B.1. Title and reference of the approved baseline methodology applied to the small-scale project activity: >>

Main Category:

Type I – Renewable energy power project

Sub – Category:

D – Renewable electricity generation for a grid

The reference has been taken from the list of the small-scale CDM project activity categories contained in

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

5, 25 February ’05)’

B.2 Project category applicable to the small-scale project activity: >>

Document ‘Appendix B of the simplified modalities and procedures for small-scale CDM project activities’

provides indicative simplified baseline and monitoring methodologies for selected small-scale CDM project

activity categories. As per this document the proposed project falls under the category – Renewable

electricity generation for a grid. It has been demonstrated earlier in section A.4.2 that the project meets the

applicability conditions.

The pre-project scenario is that steam for the process is being generated by biomass based boilers and

electricity is being supplied by the grid and back-up for the same being provided by in-house diesel

generators. The diesel generators are usually run for less than 4 hours per day to meet the peak load

requirements and during the grid supply failure.

The post-project scenario would be that the biomass based cogeneration project activity would be

supplying the steam and electricity, thereby replacing the grid power as well as the diesel generators.

Baseline for projects under Category I.D has been detailed in paragraphs 5, 6 and 7 of the above mentioned

document which are as follows:

CDM-SSC-PDD (version 02) CDM – Executive Board page 12

Paragraph 6 – For a system where all generators use exclusively fuel oil and/or diesel fuel, the baseline is

the annual kWh generated by the renewable unit times an emission coefficient for a modern diesel

generating unit of the relevant capacity operating at optimal load as given in Table B.1.

Table B.1. Emission factors for diesel generator systems (in kg CO2equ/kWh) for three different levels of load factor Cases: Mini-grid with 24 hour

service i) Mini-grid with temporary service (4-6 hr/day) ii) Productive applications iii) Water pumps

Mini-grid with storage

Load factors [%] 25% 50% 100%

< 15 kW 2.4 1.4 1.2 >= 15 < 35 kW 1.9 1.3 1.1 >= 35 < 135 kW 1.3 1.0 1.0 >= 135 < 200 kW 0.9 0.8 0.8 > 200 kW 0.8 0.8 0.8

Paragraph 7 – For all other systems, the baseline is the kWh produced by the renewable generating unit

multiplied by an emission coefficient (measured in kg CO2equ/kWh) calculated in transparent and

conservative manner as:

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

i. The “approximate operating margin” is the weighted average emissions (in kgCO2equ/kWh) of all

generating sources surviving the system, excluding hydro, geothermal, wind, low-cost biomass, nuclear and

solar generation;

ii. The “build margin” is the weighted average emissions (in kg CO2equ/kWh) of recent capacity additions to

the system, defined as the higher (in MWh) of most recent 20% of plants built or the 5 most recent plants;

OR,

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

Since the use of diesel generators is for a very small period of time and act as standby so the baseline has

been calculated according to paragraph 7.

CDM-SSC-PDD (version 02) CDM – Executive Board page 13 The baseline emissions calculated using the average of the “approximate operating margin” and the “build

margin”, which takes into consideration the trends of future capacity additions, would represent the realistic

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

Grid System

In India with regards to the electricity system the entire country is divided into five regions for transmission

systems – Northern Region, North Eastern Region, Eastern Region, Southern Region and Western Region.

The interconnected transmission system within each region is also called the regional grid. For optimal

utilization of generating resources present in the various parts of the country establishment of Regional and

National Power Grids is essential. The formation of the National Power Grid has been envisaged in a

phased manner as follows2:

Phase – 1: HVDC interconnections between regions. This phase was completed in the year 2002.

Phase – 2: Strengthening of inter-regional connectivity with hybrid system consisting of high capacity AC

(765 kV & 400 kV) and HVDC lines. This phase is likely to be completed by the end of year 2007.

Phase – 3: Further , strengthening of National Grid is envisaged through 765 kV AC lines / HVDC lines to

Southern region and linking North Eastern Region with rest of the National Grid through high capacity

transmission system. This phase is planned to be implemented by 2012.

The status of inter-regional energy exchange for the past decade is as follows3:

2 http://powermin.nic.in/JSP_SERVLETS/internal.jsp 3 http://cea.nic.in/gmd/IRExchanges.pdf

CDM-SSC-PDD (version 02) CDM – Executive Board page 14

As can be seen the inter-regional exchange is presently too low due to the lack of infrastructure at present.

Thus for the project activity National grid system is not being considered for the estimation of emission

coefficient. Northern Region grid which comprises of Delhi, Punjab, Haryana, Chandigarh, Rajasthan,

Himachal Pradesh, Jammu & Kashmir, Uttaranchal and Uttar Pradesh, is chosen as the grid system for the

project activity, since the project activity is coming up in Himachal Pradesh. The state grid has not been

considered because the share of central generating stations to the state of Himachal Pradesh is of the order

of 74.3%4, thus any further capacity addition to the state grid would eventually affect the regional grid.

Thus northern regional grid is the most logical grid system for the project activity.

The key information and data used to determine the baseline scenario are as follows:

Parameter 2004-2005 Source Coal Gas NCVi (kCal/kg) 3820 10750 Coal: General Review 2004-2005 (CEA) EFCO2, i (tonne CO2/TJ) 96.1 73.3 IPCC 1996 Revised Guidelines and the IPCC Good

Practice Guidance

4 Annual report 2003-2004, Ministry of Power, Government of India

CDM-SSC-PDD (version 02) CDM – Executive Board page 15 OXIDi 0.98 0.995 Page 1.29 in the 1996 Revised IPCC Guidelines ΣjGENj,y (MU) 95290.39

19606.92

NRLDC Grid Report March 2005

Import from WREB (MU) 1495.77 Import from EREB (MU) 3581.79

NRLDC Grid Report March 2005

EF - WREB (ton of CO2/MU) 906.00 EF – EREB (ton of CO2/MU) 1178.00

http://mnes.nic.in/baselinepdfs/chapter2.pdf

B.3. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the registered small-scale CDM project activity: >>

In accordance with paragraph 28 of the simplified modalities and procedures for small-scale CDM project

activities, a simplified baseline and monitoring methodology listed in Appendix B may be used for a small-

scale CDM project activity if project participants are able to demonstrate to a designated operational entity

that the project activity would otherwise not be implemented due to the existence of one or more barrier(s)

listed in Attachment A to Appendix B.

DSL has taken this project activity as a voluntary initiative to promote such measures in the region so as to

result in GHG emission reduction and promotion of sustainable development. Although many barriers are

existent in the path of the project activity but it is felt that the availability of carbon financing against a sale

consideration of carbon credits generated due to project activity would help overcome these barriers. Some

of the key barriers are discussed below:

Investment barrier

DSL is among the first project proponent in the state to utilise biomass for the cogeneration activity. Apart

from the high initial investments required the other reasons behind the low penetration of such renewable

energy projects and little willingness of entrepreneurs to invest in similar kind of project activity and

change the current operating practices in the region are:

• not much attractive internal rate of return (for the project the IRR is 15%);

• highly sensitive to escalation in the biomass prices (a 10% rise in biomass prices drops the IRR to

10%)5.

The usual project IRR expected for any investment in the current Indian scenario by government authorities

is atleast 12%6 although an expected equity IRR is around 20%7 in nominal terms. The project proponent

5 Project report, 5 MW cogeneration plant at Deepak Spinners Ltd. 6 http://rajyasabha.nic.in/book2/reports/t_and_t/57threport.htm 7 http://www.keralaports.gov.in/doc/Executive%20Summary_Feasibility%20Report.pdf

CDM-SSC-PDD (version 02) CDM – Executive Board page 16 could have invested the similar amount of money in expanding the manufacturing capacity which could

have given higher returns on the investments as the phase out of the multi fiber agreement poses

tremendous growth opportunities to the Indian textile industry8,9.

The project activity also calls for development of an adequate infrastructure for assured availability of

biomass.

Technological barrier

The project activity has opted for a high pressure and high temperature configuration which has a lower

specific fuel consumption but involves higher capital requirement. Also the combustion technology used for

the project – fluidised bed combustion is much more advanced as compared to pile burning and stoker

fired. Although the risks associated with an AFBC10 is much more as compared to a stoker fired boiler with

regards to operation related parameters the emission and efficiency of the former is much better. Moreover

rice husk has proved to be a difficult fuel for fluidised bed combustion due to its high ash content11.

Barrier due to prevailing practice

As per available statistics there is no captive power plant of such kind operating in the state of Himachal

Pradesh12. The captive generation of power in the state is primarily through the use of diesel generators.

The project activity is a first of its kind being implemented in the state, hence no specific guidelines or

policies with regards to the same were existent and thus the project proponent had to do a lot of ground

work for getting the approvals for the project activity. Since there is hardly any such known project existent

in the state so the infrastructure and system required for the same is also absent. Therefore DSL had to put

in lots of efforts to develop the same. One such task is the sourcing of biomass for the project; the sourcing

has to be done from a number of suppliers, so logistics would also be a daunting task to be performed by

DSL.

Other barriers

The other barriers that DSL had to face were that the nodal agency dealing with the renewable energy

projects had no policy or framework existent for such kind of project activities. Therefore DSL had to

8 http://www.ers.usda.gov/publications/erselsewhere/eejs0401/eejs0401.pdf 9 http://www.worldbank.org/html/dec/Publications/Workpapers/wps2000series/wps2012/wps2012.pdf 10 http://www.journal.ifrf.net/library/december2002/200208Hristov.pdf 11 http://www.ias.ac.in/currsci/oct102004/981.pdf 12 Page 13, http://cea.nic.in/ge_re/2004-05/chap-4.pdf

CDM-SSC-PDD (version 02) CDM – Executive Board page 17 assist them in getting information from other neighbouring states with regard to the project activities. Thus

the project activity got delayed due to this lack of framework with the state agencies.

Moreover, power generation is not the core business of DSL. The project activity represents a steep

diversification from the primary business activity of DSL of textile manufacturing.

Also, DSL was among the first to carry out biomass availability studies in the region and thereby

acknowledging the existence of power generating potential through biomass to the state agency.

In spite of the barriers being faced by DSL as discussed above in implementing the project activity, the

benefits through the sale of emission reduction units would significantly help in overcoming these barriers.

Also it would encourage other entrepreneurs to follow suit and thereby contribute towards GHG emission

reduction.

B.4. Description of how the definition of the project boundary related to the baseline methodology selected is applied to the small-scale project activity: >>

As per the guidelines mentioned in paragraph 4 of Category I.D. described in Annex B of the simplified

modalities and procedures for small-scale CDM project activities, project boundary is delineated by the

physical and geographical site of the renewable energy generation.

For the proposed project activity the project boundary is from the point of fuel storage to the point of

electricity supply to the spinning mill where the project proponent has a full control. Thus, project

boundary covers fuel storage, boiler, steam turbine generator and all other accessory equipments. The

project boundary is illustrated in the following diagram:

Biomass Source

Biomass Storage

Biomass Fired Boiler

Electricity & Steam

Generation Unit

Electricity and steam to the

plant Auxiliary

Consumption

Emission Generated

Emission Sequestered

Project

Boundary

CDM-SSC-PDD (version 02) CDM – Executive Board page 18 B.5. Details of the baseline and its development: >>

B.5.1. Using the methodology available in paragraph 7 of Type I.D. described in Annex B of the simplified

modalities and procedures for small-scale CDM project activities, the average of the approximate

operating margin and the build margin (in kgCO2equ/kWh) of current generation mix of Northern region

grid is used for the calculation of baseline.

Base line data

Carbon emission factor of grid

Northern region’s present generation mix, thermal efficiency, and emission co-efficient are used to

arrive at the net carbon intensity/baseline factor of the chosen grid. As per the provisions of the

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

with provisions of paragraph 7 of Type I.D. mentioned in Appendix B of Draft Simplified Modalities

and Procedures for Small Scale CDM Project Activities for grid systems.

The provisions require the emission coefficient (measured in kg CO2equ/kWh) to be calculated in a

transparent and conservative manner as:

(a) The average of the “approximate operating margin” and the “build margin” (or combined

margin)

OR

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

Complete analysis of the electricity generation has been carried out for the calculation of the emission

coefficient as per paragraph 7 (a) given above.

Combined Margin

The baseline methodology suggests that the project activity will have an effect on both the operating

margin (i.e. the present power generation sources of the grid, weighted according to the actual

participation in the grid mix) and the build margin (i.e. weighted average emissions of recent capacity

CDM-SSC-PDD (version 02) CDM – Executive Board page 19 additions) of the selected grid and the baseline emission factor would therefore incorporate an average

of both these elements.

Operating Margin

The “approximate operating margin” is defined as the weighted average emissions (in kg CO2equ/kWh)

of all generating sources serving the system, excluding hydro, geothermal, wind, low-cost biomass,

nuclear and solar generation;

The project activity would have some effect on the operating margin of the Northern region grid. The

carbon emission factor as per the operating margin takes into consideration the power generation mix of

2004-2005 excluding hydro, geothermal, wind, low-cost biomass, nuclear and solar generation of the

selected grid, and the default value of emission factors of the fuel used for power generation.

Key parameters with their data sources

S No. Key parameters Data sources

1. Generation data

for all plants for

the year 2004-05

(kWh)

Annual Reports of Northern Region Electricity Board (NREB)

(http://www.nreb.nic.in/Reports/ar04-05/chapter2/annx2.7.pdf)

2. Coal consumption Annual Performance Review of Thermal Power Plants; CEA (http://www.cea.nic.in/Th_per_rev/CEA_Thermal%20Performance%20Review0405/SECTION-9.pdf)

3. Calorific value of

gas

IPCC

4. Calorific value of

coal

IPCC

5. Oxidation factors IPCC

6. Efficiency of gas

based power plants

supplying power to

grid

Emission Baselines-Estimating the Unknown, page 156: by International

Energy Agency (www.iea.org/textbase/nppdf/free/2000/embase2000.pdf)

Emission factors

The emission factors are based on IPCC Guidelines for National Greenhouse Gas Inventories and are given

below.

CDM-SSC-PDD (version 02) CDM – Executive Board page 20 Fuel Emission factor (tC/TJ) Emission factor (tCO2/TJ)

Natural gas 15.3 56.1

Sub-bituminous coal 25.8 94.6

The generation data collected and used is presented further in Table 1.

Average efficiency of gas/combustion turbine (peak load) works out to be 35 % and that for gas

turbines in combined cycle works out to be 50 %13. On conservative basis average efficiency for base

line calculations is considered as 50%. Standard emission factors given in IPCC for coal and gas

(thermal generation) are applied over the expected generation mix and net emission factor is determined.

The formulae are presented in Section-E. Carbon Emission Factor of grid as per operating margin is

1.137 kg CO2/kWh electricity generation.

Build Margin

The “build margin” emission factor is the weighted average emissions (in kg CO2equ/kWh) of recent

capacity additions to the system, which capacity additions are defined as the greater (in MWh) of most

recent 20% of existing plants or the 5 most recent plants.

The project activity will have some effect on the build margin of the Northern region grid. The baseline

factor as per the build margin takes into consideration the delay effect on the future projects and

assumes that the past trend will continue in the future. Capacity additions of most recent 20 % of

existing plants is greater than (in MWh) than 5 most recent plants hence, for our build margin

calculation we would take into consideration 20 % of most recent plants built in Northern region given

in Table 2. The key parameters for calculating build margin have been assumed same as that for

calculating operating margin. Carbon Emission Factor of grid as per build margin is 0.748 kg CO2/kWh

electricity generation.

Net Carbon Emission Factor Grid for 2004-2005 as per combined margin = (OM + BM)/2 = 0.942 kg

of CO2 / kWh generation.

13 Emission Baselines-Estimating the Unknown, page 156: by International Energy Agency (www.iea.org/textbase/nppdf/free/2000/embase2000.pdf)

CDM-SSC-PDD (version 02) CDM – Executive Board page 21

Table 1: Generation and fuel consumption details (2004-05)

Name Type Fuel Generation (million kWh)

Coal Consumption (000' tones)

Badarpur TPS Thermal Coal 5462.78 3732 Singrauli STPS Thermal Coal 15803.34 10336 Rihand STPS Thermal Coal 7988.06 4768 Dadri NCTPS Thermal Coal 6842.52 4432 Unchahar-I TPS Thermal Coal 3342.83 4604 Unchahar-II TPS Thermal Coal 3438.28 - Tanda TPS Thermal Coal 3254.67 2596 Anta GPS Thermal Gas 2595.77 - Auriya GPS Thermal Gas 4119.47 - Dadri GPS Thermal Gas 5527.71 - Faridabad GPS Thermal Gas 3172.01 - Bairasiul Hydro Hydel 689.67 - Salal Hydro Hydel 3443.29 - Tanakpur HPS Hydro Hydel 495.17 - Chamera HPS Hydro Hydel 3452.25 - Uri HPS Hydro Hydel 2206.71 - RAPS-A Nuclear Nuclear 1355.20 - RAPS-B Nuclear Nuclear 2954.43 - NAPS Nuclear Nuclear 2760.01 - Bhakra Complex Hydro Hydel 4546.01 - Dehar Hydro Hydel 3150.52 - Pong Hydro Hydel 882.57 - Delhi Thermal Coal 5203.80 - SJVNL Hydro Hydel 1617.45 1330 Delhi Thermal Gas 4091.37 - Haryana Thermal Coal 7192.41 5269 Haryana Hydro Hydel 251.73 - H.P. Hydro Hydel 3666.39 - J&K Hydro Hydel 851.03 - J&K Thermal Gas 23.51 - Punjab Thermal Coal 14390.42 9520 Punjab Hydro Hydel 4420.43 - Rajasthan Thermal Coal 17330.79 11133 Rajasthan Thermal Gas 360.70 - Rajasthan Hydro Hydel 494.07 - U.P. Thermal Coal 19788.21 15559 U.P. Hydro Hydel 2063.04 - Uttaranchal Hydro Hydel 3452.96 - TOTAL 172681.58 73279.00

CDM-SSC-PDD (version 02) CDM – Executive Board page 22

Table2: Power plants considered for calculating build margin

Plants supplying power to Northern grid are arranged in descending order of date of commissioning Total generation for 2004-05 = 172681.585 20 % of total generation = 34536.32

Plant Date of commissioning MW

Generation in 2004-2005 (Million kWh)14 Fuel Type

1. Chamera HEP-II (Unit 1) 2003-2004 100 Hydro 2. Chamera HEP-II (Unit 2) 2003-2004 100 Hydro 3. Chamera HEP-II (Unit 3) 2002-2003 100

1344.07 Hydro

4. SJVPNL 2003-2004 1500 5108.77 Hydro 5. Baspa-II (Unit 3) 2003-2004 100 398.94 Hydro 6. Suratgarh-III (Unit-5) 2003-2004 250 1698.37 Coal 7. Kota TPS-IV (Unit-6) 2003-2004 195 1302.49 Coal 8. Baspa-II (Unit 1 & 2) 2002-2003 200 797.88 Hydro 9. Pragati CCGT (Unit II) 2002-2003 104.6 790.21 Gas 10. Pragati CCGT (Unit III) 2002-2003 121.2 915.61 Gas 11. Ramgarh CCGT Stage -II (GT-2) 2002-2003 37.5 114.19 Gas 12. Ramgarh CCGT Stage -II (GT-2) 2002-2003 37.8 115.11 Gas 13. Upper Sindh Extn (HPS)(1) 2001-2002 35 32.12 Hydro 14. Suratgarh stage-II (3 & 4) 2001-2002 500 3396.74 Coal 15. Upper Sindh Stage II (2) 2001-2002 35 32.12 Hydro 16. Malana-1 & 2 2001-2002 86 266.08 Hydro 17. Panipat TPS Stage 4 (Unit-6) 2000-2001 210 1269.31 Coal 18. Chenani Stage III (1,2,3) 2000-2001 7.5 19.10 Hydro 19. Ghanvi HPS (2) 2000-2001 22.5 74.06 Hydro 20. RAPP (Unit-4) 2000-2001 220 1309.70 Nuclear 21. Ranjit Sagar (Unit-1,2,3,4) 2000-2001 600 1131.37 Hydro 22. Gumma HPS 2000-2001 3 4.35 Hydro

23. Faridabad CCGT (Unit 1) (NTPC) 2000-2001 144 1030.59 Gas

24. Suratgarh TPS 2 1999-2000 250 1698.37 Coal 25. RAPS-B (2) 1999-2000 220 1309.70 Nuclear 26. Uppersindh-2 HPS #1 1999-2000 35 32.12 Hydro 27. Faridabad GPS 1 & 2 (NTPC) 1999-2000 286 2046.86 Gas 28. Unchahar-II TPS #2 1999-2000 210 1559.75 Coal 29. Unchahar-II TPS #1 1998-1999 210 1559.75 Coal 30. Suratgarh TPS #1 1998-1999 250 1698.37 Coal 31. GHGTPLM (Unit 1) 1998-1999 210 1453.23 Coal 32. GHGTPLM (Unit 2) 1997-1998 210 1453.23 Coal 33. Tanda TPS (Unit-4) 1997-1998 110 731.54 Coal

Total 34694.10 20% of Generation 34536.32

14 http://www.nrldc.org/docs/grmar2005.pdf

CDM-SSC-PDD (version 02) CDM – Executive Board page 23 B.5.2. Date of completion of the baseline in DD/MM/YYYY

21/11/2005

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

Deepak Spinners Limited

The entity is also a project participant listed in Annex 1 of this document.

CDM-SSC-PDD (version 02) CDM – Executive Board page 24 SECTION C. Duration of the project activity / Crediting period: C.1. Duration of the small-scale project activity: C.1.1. Starting date of the small-scale project activity: >> 21/12/2004 C.1.2. Expected operational lifetime of the small-scale project activity: >> 25 years C.2. Choice of crediting period and related information: >> The project activity will use the fixed crediting period. C.2.1. Renewable crediting period: >> Not applicable C.2.1.1. Starting date of the first crediting period: >> Not applicable C.2.1.2. Length of the first crediting period: >> Not applicable C.2.2. Fixed crediting period: >> 10 years C.2.2.1. Starting date: >> 28/02/2006 C.2.2.2. Length: >> 10 years

CDM-SSC-PDD (version 02) CDM – Executive Board page 25 SECTION D. Application of a monitoring methodology and plan: D.1. Name and reference of approved monitoring methodology applied to the small-scale project activity: >>

Title: Monitoring Methodology for the category I D – Renewable electricity generation for a grid

Reference: ‘Paragraph 9’ as provided in Type I.D. of Appendix B of the simplified modalities and

procedures for small-scale CDM project activities - Indicative Simplified Baseline and Monitoring

Methodologies for Selected Small-Scale CDM Project Activity Categories.

Paragraph 9 states that monitoring shall consist of:

Metering the electricity generated by the renewable technology. In the case of co-fired plants, the amount of

biomass and fossil fuel input shall be monitored.

D.2. Justification of the choice of the methodology and why it is applicable to the small-scale project activity: >>

The cogeneration project activity will be displacing the existing boiler, the grid supply and the back-up

diesel generators, therefore the aforesaid monitoring methodology will be applicable to this project activity.

Although the present boiler too is primarily biomass based therefore effectively the electrical energy

monitoring would be of more significance, since the calculation of the emission reductions is based on the

electricity displaced.

Description of monitoring plan

The project activity will have two separate meters to record the gross power produced and auxiliary power

consumed. The monitoring and verification system would mainly comprise of these meters as far as power

supplied to the manufacturing facility is concerned. The biomass input is also to be monitored. Quantity of

coal will also be monitored if used. These monitoring and controls will be the part of the DCS/SCADA of

the entire plant. All monitoring and control functions will be done as per the internally accepted standards

of DSL. All instruments will be calibrated and marked at regular intervals so that the accuracy of

measurement can be ensured all the time.

GHG SOURCES

Direct On-Site Emissions

CDM-SSC-PDD (version 02) CDM – Executive Board page 26 Direct on-site emissions of the project activity arise from the combustion of biomass in the boiler. These

emissions mainly include CO2. However, the CO2 released is very less as compared to the amount of CO2

sequestered during the growth of the biomass, thereby making it a carbon neutral fuel.

Direct Off-Site Emissions

Direct off-site emissions in the project activity arise from the biomass transport. Similar quanta of

emissions are occurring in the baseline also due to the transport of biomass as fuel for the existing boiler.

Therefore the net direct off-site emissions are negligible and hence not included in the calculation of the

emission reduction units.

Indirect On-Site Emissions

The indirect on site GHG source is the consumption of energy and the emission of GHGs involved in the

construction of biomass based power plant. Considering the life of the cogeneration plant and the emissions

to be avoided in the life span, emissions from the above-mentioned source is too small and hence neglected.

No other indirect on-site emissions are anticipated from the project activity.

Project Parameters affecting Emission Reduction

Fuel related parameters:

Quantity of biomass used in the boiler as fuel

The biomass received will be stored in the plant’s storage area specially designed. The amount of biomass

entering the plant will be measured and records of the same will be maintained. The weighing system needs

to be calibrated regularly to ensure the accuracy of the measurement. The data will be recorded for further

verification. The amount of biomass purchased will be based on invoices / receipts from fuel contractors.

The amount of biomass fed to the boiler will also be measured / monitored.

Quantity of coal used in the boiler as fuel

Coal if any used in case of exigencies would be quantified through invoices / receipts of purchases. The

amount of coal fed to the boiler would also be verified through audit reports.

Quality of biomass used in the boiler

The properties of the biomass used as fuel in the boiler would be determined from ultimate analysis.

CDM-SSC-PDD (version 02) CDM – Executive Board page 27

Operational Parameters of the power generating Unit

Total Electricity Generated

The total electricity generated by the cogeneration project will be measured in the plant premises to the best

accuracy and will be monitored and recorded, on a continuous basis through DCS/SCADA.

Auxiliary Consumption

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

This will be monitored and recorded on a continuous basis through DCS/SCADA. The total quantum of

electricity consumed by the auxiliaries would affect the total electricity supplied to the manufacturing

facility and therefore the amount of GHG reductions.

Power exported to the manufacturing facility

It will be calculated based on deduction of auxiliary consumption from the total electricity generated.

Verification

The performance of the biomass based cogeneration project leads to CO2 emission reductions. In other

words, the longer the power plant runs and supplies power to the manufacturing facility, more would be the

emission reductions. Fully functional management information systems will be built in DCS/SCADA so

that accessing and verification of actual data are possible at any point of time. The major activities to be

verified are as under

• Verification of various measurement and monitoring methods

• Verification of instrument calibration methods

• Verification of data generated by DCS/SCADA

• Verification of measurement accuracy

CDM-SSC-PDD (version 02) CDM – Executive Board page 28 D.3 Data to be monitored: >>

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

b) Fuel related parameters affecting the project activity

ID No.

Data type

Data variable

Data unit

Measured (m), calculated (c) or estimated (e)

Recording Frequency

Proportion of data to be monitored

How will the data be archived? (electronic/ paper)

For how long is archived data to be kept?

Comment

ID No.

Data type

Data Variable

Data unit

Measured (m), calculated (c) or estimated (e)

Recording frequency

Proportion of data to be monitored

How will the data be archived? (electronic/ paper)

For how long is archived data to be kept?

Comment

1 Energy

Total electricity generated

kWh m Continuous

Total Electronic Crediting Period (CP)+2 years

Measured in plant premises and monitored and recorded continuously through DCS/SCADA. Manufacturers of equipments should be of repute.

2 Energy

Auxiliary consumption

kWh m Continuous

Total Electronic CP + 2 years

Measured in plant premises and monitored and recorded continuously through DCS/SCADA. Manufacturers of equipments should be of repute.

3 Energy

Power supplied to plant

kWh c Continuous

Total Electronic CP+2 years

CDM-SSC-PDD (version 02) CDM – Executive Board page 29 1 Fuel Biomass

MT m Monthly 100% paper CP+2

years To be monitored at purchase, storage and usage.

D.4. Qualitative explanation of how quality control (QC) and quality assurance (QA) procedures are undertaken: >>

Quality control (QC) and quality assurance (QA) procedures are being undertaken for data monitored. (data items in tables contained in section D.3 (a to b) above, as applicable)

Data

Uncertainty level of data (High/Medium/Low)

Are QA/QC procedures planned for these data?

Outline explanation why QA/QC procedures are or are not being planned.

D.3.(a)1 Low Yes This data will be used for calculation of emission reductions by project activity.

D.3.(a)2 Low Yes This data will be used for calculation of emission reductions by project activity.

D.3.(b)1 Medium Yes This data will be used as supporting information to calculate emission reductions by project activity.

D.3.(b)2 Medium Yes This data will be used as supporting information to calculate emission reductions by project activity

D.5. Please describe briefly the operational and management structure that the project participant(s) will implement in order to monitor emission reductions and any leakage effects generated by the project activity: >>

DSL would ensure accuracy of the measurement system as follows:

• The shift in-charge will be responsible for the hourly data recording and the plant manager will

ensure that that the data is properly archived.

• The plant manager will be a qualified engineer with 10-15 year experience in power industry. All

the shift in-charges will be diploma holders and will undergo an exhaustive training programme,

including plant operations, data monitoring, report generation etc.

D.6. Name of person/entity determining the monitoring methodology: >>

Deepak Spinners Limited

The person/entity is also a project participant as listed in Annex 1 of this document.

CDM-SSC-PDD (version 02) CDM – Executive Board page 31

SECTION E.: Estimation of GHG emissions by sources: E.1. Formulae used: E.1.1 Selected formulae as provided in appendix B: >>

No formulae for GHG emission reduction is specified for Category 1.D. of Appendix B of the Simplified

Modalities and Procedures for Small-scale CDM Project Activities.

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

Since no formulae have been provided in Appendix B so a conservative approach has been followed while

arriving at the quantum of emission reductions due to the project activity as given in the following sections.

E.1.2.1 Describe the formulae used to estimate anthropogenic emissions by sources of GHGs due to the project activity within the project boundary: >>

Essentially there would be no GHG emissions due to the project activity within the project boundary

because the fuel being used is biomass. The GHG emission due to the burning of biomass is negated by the

sequestration done during the growth of the biomass, thereby making it a carbon neutral fuel.

Although, if any quantity of coal is used during exigencies then the CO2 emissions due to it would be

calculated in the following manner:

Tons of CO2 = (44/12) x Percentage of total carbon in coal x Quantity of coal used in tons

Taking conservative approach the total quantity of CO2 generated due to the combustion of coal would be

deducted from the emission reductions.

E.1.2.2 Describe the formulae used to estimate leakage due to the project activity, where required, for the applicable project category in appendix B of the simplified modalities and procedures for small-scale CDM project activities >>

As prescribed in Appendix B, for Category 1.D., leakage estimation is only required if renewable energy

technology is equipment transferred from another activity. This does not apply to the project case.

However, the only source of considerable GHG emissions which are attributable to the project activity

CDM-SSC-PDD (version 02) CDM – Executive Board page 32 lying outside the project boundary will be the emissions arising during the transportation of the biomass.

The same have been estimated below.

Emissions due to the transportation of Biomass

Total biomass required 56765 ton/year

Biomass transported by truck 56765 ton/year

Biomass load per truck 12 ton

Total number of Trips 2100

Max distance between the 250 Km

Project site and collection centers

Consumption of diesel per trip (to and fro) 100 Liters

(@ 5 km/ lit)

Total Diesel Consumption 210000 Liters

Calorific Value of Diesel 0.0000283 TJ/lit

Emission Factor for Diesel 74.1 ton of CO2/TJ

Total Emissions due to transportation of Biomass 440 tCO2

Since similar quanta of emissions occur during the transportation of biomass for the existing boiler (on-

site), coal for the power plants connected to the grid and diesel for the diesel generators (on-site) in the

baseline, therefore this leakage has not been considered in the calculation of emission reductions.

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

Thus the emissions from the project activity would be only due to the usage of coal (if any), and will be

evaluated as per the formula given in E.1.2.1.

E.1.2.4 Describe the formulae used to estimate the anthropogenic emissions by sources of GHGs in the baseline using the baseline methodology for the applicable project category in appendix B of the simplified modalities and procedures for small-scale CDM project activities: >>

Northern region grid has been considered as the baseline. Northern region’s present power generation

mix has been used to arrive at the net carbon intensity/baseline factor of the chosen grid. As per the

provisions of the methodology the emission coefficient for the electricity displaced would be calculated

CDM-SSC-PDD (version 02) CDM – Executive Board page 33 in accordance with provisions of paragraph 7 (a) of Type I.D of ‘Appendix B of Simplified Modalities

and Procedures for Small Scale CDM Project Activities’.

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

of the approximate operating margin and the build margin‘.

The step-by-step calculation of base line emission is as follows:

STEP 1. Calculation of Operating Margin emission factor (EFOM)

j

jjiji

jiOM GENCOEFFEF ∑∑ ×= /,,

,

Where

COEFi, j - is the CO2 emission coefficient of fuel i (t CO2 / mass or volume unit of the fuel), calculated as given below and

GENj, - is the electricity (MWh) delivered to the grid by source j

Fi, j - is the amount of fuel i (in a mass or volume unit) consumed by relevant power sources j, calculated as given below

j - refers to the power sources delivering electricity to the grid, not including low-operating cost and must-run power plants

The CO2 emission coefficient COEFi is obtained as

iiCOii OXIDEFNCVCOEF ××= ,2

Where

NCVi -is the net calorific value (energy content) per mass or volume unit of a fuel i

EFCO2,i -is the CO2 emission factor per unit of energy of the fuel i

OXIDi -is the oxidation factor of the fuel

STEP 2. Calculation of the Build Margin emission factor (EF BM,)

It is calculated as the generation-weighted average emission factor (t CO2/MWh) of a sample of power

plants m of grid, as follows:

mm

mimimi

BM GENCOEFFEF ∑∑ ×= /,,,

Where

CDM-SSC-PDD (version 02) CDM – Executive Board page 34 F i, m, COEF i ,m and GEN m - are analogous to the variables described for the OM method above for plants m.

Calculations for the Build Margin emission factor EF BM has been done as ex ante based on the most recent

information available on plants already built for sample group m of northern grid at the time of PDD

submission. The sample group m consists of the 20 % of power plants supplying electricity to grid that

have been built most recently, since it comprises of larger annual power generation.

Further, none of the power plant capacity additions in the sample group have been registered as CDM

project activities.

STEP 3. Calculation of the electricity baseline emission factor (EFy)

It is calculated as the weighted average of the Operating Margin emission factor (EF OM,) and the Build

Margin emission factor (EF BM,):

BMBMOMOMy EFWEFWEF ×+×=

where the weights W OM and W BM, by default, are 50% (i.e., WOM = WBM = 0.5), and EFOM, and EFBM are

calculated as described in Steps 1 and 2 above and are expressed in t CO2/MWh.

yyy EGEFBE ×=

Where

BEy - are the baseline emissions due to displacement of electricity during the year y in tons of CO2

EGy- is the net quantity of electricity generated by the project activity during the year y in MWh, and

EF y- is the CO2 baseline emission factor for the electricity displaced due to the project activity in tons

CO2/MWh.

If the same amount of electricity is generated by the Northern region grid mix, it adds to the emissions

that are ultimately getting reduced by the project activity. Hence, the baseline calculated using above

methods / scenarios would represent the realistic anthropogenic emissions by sources that would occur

in absence of the project activity.

The uncertainties in the baseline, arising out of capacity additions trends are already taken into

consideration during calculation of combined margin factor.

CDM-SSC-PDD (version 02) CDM – Executive Board page 35 E.1.2.5 Difference between E.1.2.4 and E.1.2.3 represents the emission reductions due to the project activity during a given period: >>

Following formula is used to determine emission reduction

CO2 emission reduction due to project activity

= (Baseline emissions) - (Project activity emissions )

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

A carbon intensive energy equivalent of ‘333.24’ Million kWh (emission factor as 0.942 kg CO2e / kWh)

for a period of 10 years would be saved by generating power from the 5.0 MW biomass based

cogeneration plant which in turn will reduce ‘284,364’ tonnes of CO2 emissions considering baseline

calculations.

Sr.No. Operating Years

Baseline Emissions

(Tonnes of CO2)

Project activity Emissions

(Tonnes of CO2)

Emission Reductions,

(Tonnes of CO2) 1. 2006-2007 29842 0 29842 2. 2007-2008 31596 0 31596 3. 2008-2009 31596 0 31596 4. 2009-2010 31596 0 31596 5. 2010-2011 31596 0 31596 6. 2011-2012 31596 0 31596 7. 2012-2013 31596 0 31596 8. 2013-2014 31596 0 31596 9. 2014-2015 31596 0 31596 10 2015-2016 31596 0 31596

Total 284364 0 284364

CDM-SSC-PDD (version 02) CDM – Executive Board page 36 SECTION F.: Environmental impacts: F.1. If required by the host Party, documentation on the analysis of the environmental impacts of the project activity: >>

The design philosophy of this project activity is driven by the concept of providing low cost energy with

acceptable impact on the environment. Since the project uses only biomass (a carbon neutral fuel) for steam

and electricity generation, it does not lead to GHG emissions. It also eliminates the emission of other

pollutants like carbon monoxide and soot into atmosphere which usually occur due to uncontrolled mass

burning of the biomass in the farmlands. The project has no significant impact on water consumption or

water disposal.

The modern equipment and process along with pollution controlling measures adopted in this project will

make the unit practically free from all kinds of environmental pollution. The project activity would have a

net positive impact on the environment, as biomass will be used as fuel. For control of air pollution

electrostatic precipitators (ESP) would be used, which would be well within the statutory norms as

specified by the state pollution control board.

The waste produced from the burning of the biomass, i.e., the ash will be used to improve the top soil

condition which is essentially rocky in nature. The farmers in the local area would be taking the ash

produced during the combustion of the biomass as it is rich in nutrients and would act as manure to the

farmland. Since the terrain in the area is essentially rocky in nature with a small layer of top soil so the ash

would also help in increasing the top soil layer for farming. Thus it is seen that the project has no

significant negative impact on the environment.

Since the project investment is less than INR 50 crores so the project does not fall under the purview of the

Environmental Impact Assessment (EIA) notification of the Ministry of Environment and Forest,

Government of India.

CDM-SSC-PDD (version 02) CDM – Executive Board page 37 SECTION G. Stakeholders’ comments: G.1. Brief description of how comments by local stakeholders have been invited and compiled: >>

The various stakeholders identified for the project activity are as under:

1. Himachal Pradesh State Environment Protection & Pollution Control Board

2. Himachal Pradesh Energy Development Agency(HIMURJA)

3. Local community

4. Biomass suppliers

5. Consultants

6. Equipment suppliers

Stakeholders list includes the government and non-government parties, which are involved in the project

activity at various stages. At the appropriate stage of the project development, stakeholders / relevant

bodies were involved to get the clearance.

G.2. Summary of the comments received: >>

The local community was briefed about the project and they are very appreciative and positive about the

project activity as it would help them in many aspects. The project activity would result in generation of

employment and also additional income to the farmers by the purchase of biomass. The local community

wants DSL to give them the ash generated by the combustion of the biomass. The only concern raised by

the local community is that of air pollution arising out of the combustion of biomass.

The Himachal Pradesh Energy Development Agency (HIMURJA) has supported the project as it is the first

one of its kind to be implemented in the state. HIMURJA does not have a framework for implementation of

such kind of projects, so they have asked DSL to get information on policies and framework for similar

projects existent in other states.

CDM-SSC-PDD (version 02) CDM – Executive Board page 38 Himachal Pradesh State Environment Protection & Pollution Control Board has prescribed standards of

environmental compliance and monitors the adherence to the standards. The project proponent has already

received ‘Permission to Establish’ from the HPPCB.

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

DSL has agreed to give the ash generated due to the combustion of biomass free of cost to the farmers. To

reduce the air pollution being generated due to the combustion process ESP will be used which would

surpass the norms specified by the state pollution control board, thereby keeping air pollution to a minimal

level.

DSL is contacting agencies similar to HIMURJA in various nearby states (Punjab, Madhya Pradesh) and is

providing necessary inputs to HIMURJA with regards to the implementation of such kind of biomass based

cogeneration projects.

CDM-SSC-PDD (version 02) CDM – Executive Board page 39 Annex 1 CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY Organization: Deepak Spinners Limited

Street/P.O.Box: SCO – 16 , Sector 26, Madhya Marg

Building: --

City: Chandigarh

State/Region:

Postcode/ZIP: 160019

Country: India

Telephone: 91-172-2791272

FAX: 91-172-2790975

E-Mail:

URL:

Represented by:

Title: Executive Director

Salutation: Mr.

Last Name: Khemka

Middle Name: N

First Name: V

Department:

Mobile:

Direct FAX: --

Direct tel: --

Personal E-Mail:

CDM-SSC-PDD (version 02) CDM – Executive Board page 40 Annex 2 INFORMATION REGARDING PUBLIC FUNDING

No public funding as part of project financing from Parties included in Annex 1 to the convention is

involved in the project activity.

CDM-SSC-PDD (version 02) CDM – Executive Board page 41 Appendix A Abbreviations

AFBC Atmospheric fluidized bed combustion

CO2 Carbon dioxide

DG Diesel Generator

DSL Deepak Spinners Limited

GHG Green House Gases

INR Indian National Rupee

IPCC Inter Governmental Panel on Climate Change

kg Kilogram

km Kilometre

kW Kilowatt

kWh Kilowatt - hour

MW Mega Watt

PDD Project design document

tph Tonnes per hour

UNFCCC United Nations Framework Convention on Climate Change

CDM-SSC-PDD (version 02) CDM – Executive Board page 42 Appendix B

List of References • Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCCC)

• Website of UNFCCC, http://unfccc.int

• UNFCCC document: Simplified modalities and procedures for small-scale clean development

mechanism project activities

• UNFCCC document: Indicative simplified baseline and monitoring methodologies for selected small-

scale CDM project activity categories, Version 02, 2nd December 2003

• Project report for 5 MW biomass based cogeneration project of Deepak Spinners Limited

• Sustainable Development Indicators as given in the interim approval criteria for CDM projects by the

Government of India, http://envfor.nic.in/divisions/ccd/cdm_iac.html

• http://www.deepakspinners.com

• http://cea.nic.in

• http://powermin.nic.in

• http://nrldc.org

• http://nreb.nic.in

• http://mnes.nic.in/baselinepdfs/chapter2.pdf