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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


Revision history of this document

Version Number

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 reflect guidance and clarifications provided by the Board since version 01 of this document.

• As a consequence, the guidelines for completing CDM SSC PDD have been revised accordingly to version 2. The latest version can be found at <http://cdm.unfccc.int/Reference/Documents>.

http://cdm.unfccc.int/Reference/Documents

CDM-SSC-PDD (version 02) CDM – Executive Board page 3 SECTION A. General description of the small-scale project activity A.1. Title of the small-scale project activity:

Efficiency Improvement in the Blow Heat Recovery System at BILT-Sewa

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

Ballarpur Industries Ltd. (BILT) is one of the largest paper company in India and a leader in the segments

of writing and printing paper. BILT has a diversified production infrastructure with six manufacturing

units spread across the country. Sewa Unit of BILT, located in district Koraput, Orissa, has pulp capacity

of 150 ton per day and paper capacity of 72,000 ton per annum. The plant uses sulphate process for pulp

manufacturing process. As part of its energy efficiency initiatives, the company plans to implement

following project at its Sewa unit:

Efficiency Improvement in the Blow Heat Recovery System

In the pulping process, wood and bamboo chips are cooked with white liquor (mixture of NaOH and Na2S)

in digesters at 160 0C. Once the process of cooking is complete, the contents of the digesters are blown to a

blow tank with help of pressure difference that exists between the digester and blow tank. The whole mass,

which comes to blow tank from 6.5 kg/cm2 to atmospheric pressure, releases extra heat in form of water

vapours. These vapours are condensed in a condenser, with help of water to generate hot water. This hot

water is subsequently used for pulp washing and in pulp bleaching plant.

The efficiency of heat recovery of the existing system is approx. 70 % only. Modifications are planned in

the system to improve the efficiency by approx. 25 % resulting in extra heat recovery which would result in

LP steam savings at bleach plant.

Project’s contribution to sustainable development

The project activity would contribute to the ‘Sustainable Development of India’ in following ways.

Environmental well-being

It would contribute towards the reduction in (demand) use of finite natural resource like coal, minimizing

depletion or else increasing its availability to other important processes. The project activity would

eliminate equivalent air emissions, which would have been otherwise generated to produce energy to cater

to the requirement of the manufacturing facility.

CDM-SSC-PDD (version 02) CDM – Executive Board page 4 Economic well-being

The project would result in reduced fuel consumption thus resulting in economic benefits.

Social well-being

The project activity would help to provide business opportunities for bankers, consultants, suppliers /

manufacturers, contractors etc. Economic benefits resulting from the project activity would be passed on to

the locals as a part of the Company’s Corporate Social Responsibility.

A.3. Project participants: Name of Party involved ((host) indicates a host Party)

Private and/or public entity(ies) project participants(as applicable)

Kindly indicate if the Party involved wishes to be considered as project participant (Yes/No)

India Ballarpur Industries Ltd. No

Contact information of the project participants involved in the project activity is provided in the Annex 1 of

this document.

A.4. Technical description of the small-scale project activity: >> A.4.1. Location of the small-scale project activity: >> A.4.1.1. Host Party(ies):

India

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

Orissa

A.4.1.3. City/Town/Community etc:

District Koraput

A.4.1.4. Detail of physical location, including information allowing the unique identification of this small-scale project activity(ies):

The project activity would be implemented at Sewa Unit of BILT which manufactures pulp and paper.

Sewa Unit is located at village Gaganapur, district Koraput, in state of Orissa. The nearest railway station

is at Jeypore and is about 5 km from the site. The geographical location of Koraput district is shown in the

maps below.


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

Type II: Energy Efficiency Improvement Projects

Category-D: Energy efficiency and fuel switching measures for industrial facilities

For project activity to qualify under type II.D. category, the aggregate energy saving from project activity

primarily aimed at energy efficiency, may not exceed 15 GWhe per year or 45 GWhth per year in fuel input.

The project activity consists of improving the efficiency of blow heat recovery system where total energy

saving from the project activity is less than 45 GWhth per year in term of fuel input.

Technology of project activity

Carryover particles from the blow vapour leaving the blow tank would be separated in cyclone separator.

The flash steam would be condensed in the spray condenser using multi-tier arrangement. Vapours entering

the bottom of spray condenser would condense as they come in close contact with condensing water which

is sprayed using condenser pump thereby generating hot water. The hot water would be collected in the

accumulator tank. This hot water collected would be foul smelling, since it is generated by direct contact

type condenser. Clean hot water would be generated by passing this hot water through wide gap free flow

plate heat exchanger, which would be further used in bleaching the pulp. Foul condensate would be directly

used for pulp washing.

There is no transfer of technology to the host country since the technology is available locally.

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:

Without this project, BILT would continue to operate the blow heat recovery system as lower efficiency.

The implementation of the project activity would reduce LP steam consumption at bleach plant and thus the

coal firing in the boilers. Reduction in use of coal would lead to reduction in GHG emissions from the

baseline scenario. The total emissions reductions from project activity would amount to 89,820 tons for 10

years.


A.4.3.1 Estimated amount of emission reductions over the chosen crediting period: Years Annual estimation of emission reductions

in tonnes of CO2 e

2007-2008 8982

2008-2009 8982

2009-2010 8982

2010-2011 8982

2011-2012 8982

2012-2013 8982

2013-2014 8982

2014-2015 8982

2015-2016 8982

2016-2017 8982

Total estimated reductions (tonnes of CO2 e)

89,820

Total number of crediting years 10 years Annual average over the crediting period of estimated reductions ((tonnes of CO2 e)

8982

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

No public funding as part of project financing from parties included in Annex I of the convention 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

CDM-SSC-PDD (version 02) CDM – Executive Board page 8 procedures for small-scale CDM project activities. Paragraph 2 of the aforesaid document states that 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

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

activity at the closest point.

BILT proposes to register another small-scale CDM project activity

• in same project category

• whose project boundary is within 1 km of the project boundary of the small- scale activity

described in this PDD

however, it uses different technology/measure than that used by the small- scale activity described in this

PDD.


SECTION B. Application of a baseline methodology: B.1. Title and reference of the approved baseline methodology applied to the small-scale project activity:



The reference has been taken from AMS-II.D-Version 7

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

As per the indicative simplified baseline and monitoring methodologies for selected small-scale CDM

project activity categories, the project activity falls under the Category II.D- Energy efficiency and fuel

switching measures for industrial facilities.

Baseline for projects under Type II.D has been detailed in paragraph 3 and 4 of this project category.

The energy baseline consists of the energy use of the existing equipment that is replaced. Energy in the

emission baseline is multiplied by an emission coefficient (in kg CO2equ/kWh) using the IPCC default

values.

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 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 of Appendix. B.

The implementation of the project activity is a voluntary step undertaken by BILT with no direct or indirect

mandate by law. The main driving forces to this ‘Climate change initiative’ have been:

- GHG reduction and subsequent carbon financing against sale consideration of carbon credits.

- Demonstration of developing such projects to the other organisations.

However, the project proponents are aware of the various barriers associated to project implementation.

But it is felt that the availability of carbon financing against a sale consideration of carbon credits

generated due to project activity would help to overcome these barriers.

CDM-SSC-PDD (version 02) CDM – Executive Board page 10 The barriers faced by the project activity are discussed below:

Barriers due to prevailing practice

The prevailing and the common practice in the Indian paper industry is operation of blow heat recovery

system at efficiency upto 75 % only. The project activity with improvement in efficiency of blow heat

recovery system from 70 to 95 % would be first of its kind in the similar size of paper mills as BILT, Sewa

Unit. Also till date, only one paper mill in India has implemented similar project, however, this paper mill is

a large paper mill and its capacity is not comparable to the capacity of BILT, Sewa Unit.

In absence of promotional policies, financial concessions and easier financing options to implement energy

efficiency projects in paper sector, BILT, Sewa would have continued to operate the blow heat recovery

system at lower efficiencies and the useful heat would be lost.

Institutional barriers

As discussed above, technology employed by project activity is not yet established in India. Also, the plant

is very old and any retrofit measures adopted are likely to disrupt the production severely. Also the

implementation of project activity is associated with performance risks as the projected benefits have high

level of uncertainty. In this scenario, the project proponents were not willing to invest in the project

activity. However, on consideration of possible sale of carbon credits accrued by implementation of project

activity inspired the project proponents’ decision to invest in the project activity.

BILT’s success would depend on securing the proposed carbon finance and it would definitely encourage

other organisations to come up with similar project activities contributing further towards GHG emission

reductions.

In absence of the project proponents’ initiative to implement the project, blow heat recovery system would

continue to operate at lower efficiencies and approx. 89,820 ton CO2 equivalent GHG emissions over a

period of 10 years would not be avoided.

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 methodology the project boundary is the physical, geographical site of the industrial facility,

processes or equipments that are affected by the project activity. In this project activity the project

boundary encloses the blow tank, cyclone separator, spray condenser, condenser pump, accumulator tank,

plate heat exchanger, bleach plant and coal based boilers.


B.5. Details of the baseline and its development:

Energy baseline

Currently the efficiency of blow heat recovery system is approx. 70 % only. With proposed modifications

in the blow heat recovery system, this efficiency is likely to increase upto 95 %. The extra heat recovered

due to implementation of the project activity would be used in the bleach plant, which would consequently

reduce the LP steam consumption at bleach plant. To quantify this extra heat recovered, LP steam

consumption at bleach plant in pre-project and post-project scenario needs to be monitored. Also, LP steam

temperature and pressure are to be monitored.

Savings in LP steam would help to save coal fired in the AFBC boiler.

Baseline emission factor

Baseline emission factor is determined using the value of emission co-efficient of coal used, as given in

Chapter 2-India's NATCOM to UNFCCC1.

Formulae used are defined in Section E.

Date of completing the final draft of this baseline section was 02/02/2006

Ballarpur Industries Ltd. has determined the baseline and they are project participant as listed in Annex 1

of this document.

1 http://www.natcomindia.org/pdfs/chapter2.pdf

http://www.natcomindia.org/pdfs/chapter2.pdf


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:

01/06/2006

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

25 years

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

Project activity would use fixed 10 year crediting period

C.2.1. Renewable crediting period: >> C.2.1.1. Starting date of the first crediting period: >> C.2.1.2. Length of the first crediting period: >> C.2.2. Fixed crediting period: >> C.2.2.1. Starting date:

01/01/2007

C.2.2.2. Length:

10y-0m

CDM-SSC-PDD (version 02) CDM – Executive Board page 13 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:



The reference has been taken from AMS-II.D-Version 7

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

As established in Section A.4.2, the project activity falls under Category II.D and can use the monitoring

methodology for type II.D project activities.

The methodology requires that monitoring shall consist of:

(a) Documenting the specifications of the equipment replaced;

(b) Metering the energy use of the industrial facility, processes or the equipment affected by the project

activity;

(c) Calculating the energy savings using the metered energy obtained from subparagraph (b).

Project activity involves improvement in efficiency of blow heat recovery system, where the extra quantity

of recovered heat is used in the bleach plant. Emission reduction quantity due to the project activity would

depend on the reduction in LP steam consumption at the bleach plant and corresponding quantity of coal

saved. The monitoring plan shall consist of monitoring the following:

1. Quantity of LP steam used at bleach plant before implementation of project activity

2. Quantity of LP steam used at bleach plant after implementation of project activity

3. Pressure of LP steam used at bleach plant

4. Temperature of LP steam used at bleach plant

GHG SOURCES

Direct On-Site Emissions

As per the selected small scale methodology there are no direct on-site emissions from the project activity.


Indirect On-Site Emissions

GHG Emissions due to additional construction work involved due to project activity would be negligible

compared to emissions avoided by the project activity over its entire life and can be neglected.

Direct and in-direct Off-Site Emissions

There would be no direct or in-direct off-site emissions from the project activtiy.


D.3 Data to be monitored: 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 Mass Mass of

steam used at

bleach plant

in pre-project

scenario

ton m Hourly One year Electronic 2 years after end

of crediting period

This data will be used for

calculation of baseline

emissions

2 Mass Mass of

steam used at

bleach plant

in post-

project

scenario

ton m Hourly Total Electronic 2 years after end

of crediting period



emissions

3 Pressure Pressure of

LP steam at

bleach plant

kg/cm2

m Hourly Total Electronic 2 years after end

of crediting period



emissions

CDM-SSC-PDD (version 02) CDM – Executive Board page 16 4 Temperature Temperature

of LP steam

at bleach

plant

0 C m Hourly Total Electronic 2 years after end

of crediting period



emissions

CDM-SSC-PDD (version 02) CDM – Executive Board page 17 D.4. Qualitative explanation of how quality control (QC) and quality assurance (QA) procedures are undertaken:

Data

Uncertainty level of data (High Medium/Low)

Are QA/QC procedures planned for these data?

D.3.1 Low Yes

D.3.2 Low Yes

D.3.3 Low Yes

D.3.4 Low Yes

Quantity of steam used at bleach plant is monitored using flow-meters and data is continuously recorded

on-line through distributed control system (DCS). Flow meters are calibrated annually.

Temperature and pressure of LP steam used at bleach plant would mostly remain constant; however,

temperature and pressure would be monitored continuously.

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:

Monthly reports giving the monitored information of the data parameters given in section D.3 would be

prepared by the shift in-charge and verified by the project manager.

Experience and training

The project manager is a qualified degree engineer with 15-20 year experience in the industry. All the shift

incharges are diploma/degree holders and would undergo related training including data monitoring, report

generation etc.

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

Ballarpur Industries Ltd. has determined the monitoring plan and they are project participant as listed in

Annex 1 of this document.

CDM-SSC-PDD (version 02) CDM – Executive Board page 18 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 calculations are specified for Category II.D

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

As specified for Category II.D there would be no GHGs of any kind, due to project activity within the

project boundary.

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 per paragraph 5 of Type II.D., no leakage calculation is required since there would be no transfer of

equipment from another activity to project activity nor any existing equipment would be transferred to

another activity.

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

Emissions due to project activity are zero.

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:

η×

×××−×=

1244)( ,,, coalcoalCpoststeampresteans OXIDEFMMH

BE

BE Baseline emissions (ton CO2)

Hs Enthalpy of LP steam used at bleach plant (TJ/ton)

Msteam, pre Quantity of LP steam used at bleach plant in pre-project scenario (ton)

Msteam, post Quantity of LP steam used at bleach plant in post-project scenario (ton)

CDM-SSC-PDD (version 02) CDM – Executive Board page 19 EFC, coal Carbon emission factor of coal used in AFBC boiler (ton C/TJ)

OXIDcoal IPCC oxidation factor of coal

η Efficiency of AFBC boiler (%)

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 reductions:

CO2 emission reduction due to

project activity

= (Baseline emission) - (Project emissions )

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

Emission reductions by project activity for 10 year crediting period have been calculated and tabulated as

follows:

Year Estimation of project activity emission (tonnes of CO2 e)

Estimation of baseline emission (tonnes of CO2 e)

Estimation of emission reductions (tonnes of CO2 e)

2007-2008 0 8982 8982

2008-2009 0 8982 8982

2009-2010 0 8982 8982

2010-2011 0 8982 8982

2011-2012 0 8982 8982

2012-2013 0 8982 8982

2013-2014 0 8982 8982

2014-2015 0 8982 8982

2015-2016 0 8982 8982

2016-2017 0 8982 8982

CDM-SSC-PDD (version 02) CDM – Executive Board page 20 Year Estimation of

project activity emission (tonnes of CO2 e)

Estimation of baseline emission (tonnes of CO2 e)

Estimation of emission reductions (tonnes of CO2 e)

Total 0 89,820 89,820

CDM-SSC-PDD (version 02) CDM – Executive Board page 21 SECTION F.: Environmental impacts: F.1. If required by the host Party, documentation on the analysis of the environmental impacts of the project activity:

Project activity does not fall under any of the 29 categories of projects listed in Schedule I of the

Environment Impact Assessment (EIA) notification of 27 Jan 1994 of Ministry of Environment and Forest,

Govt. of India. Also the total investment for the project activity is less than 50 crore. Hence, the project

does not fall under the purview of the EIA notification and documentation on analysis of environmental

impacts is not required by the host party.

CDM-SSC-PDD (version 02) CDM – Executive Board page 22 SECTION G. Stakeholders’ comments: G.1. Brief description of how comments by local stakeholders have been invited and compiled:

Employees have been identified as important stakeholders for the project activity. To inform the employees

on the environmental and social impacts of the project activity and discuss their concerns regarding the

project activity, BILT organized stakeholder consultation meeting. Invitation for stakeholder consultation

meeting was displayed on all notice boards, requesting the interested employees to participate and

communicate any suggestions/objections regarding the project activity in writing. On the day of meeting,

Project Manager presented the salient features of the project activity to the participants and requested their

suggestions/objections. The opinions expressed by them have been recorded.

G.2. Summary of the comments received:

Employees have expressed their appreciation for steps taken by BILT management to implement the project

activity.

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

No major concerns were raised during the consultation with stakeholders.

CDM-SSC-PDD (version 02) CDM – Executive Board page 23 Annex 1 CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY Organization: Ballarpur Industries Ltd. Street/P.O.Box: Mehrauli-Gurgaon Road Building: First India Place, Tower C City: Gurgaon State/Region: Haryana Postfix/ZIP: 122002 Country: India Telephone: 91 124 2804242/43 FAX: 91 124 2389495 E-Mail: - URL: http://www.bilt.com/ Represented by: Title: Head-Corporate Finance Salutation: Mr. Last Name: Acharya Middle Name: - First Name: Madhav Department: - Mobile: 91 9810026005 Direct FAX: 91 124 2804261 Direct tel: 91 124 2804256 Personal E-Mail: [email protected]

http://www.bilt.com/

mailto:[email protected]

CDM-SSC-PDD (version 02) CDM – Executive Board page 24 Annex 2 INFORMATION REGARDING PUBLIC FUNDING

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

involved in the project activity.

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