reduction in steam consumption through revamping of ammonia plant-iffco plants

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM Executive Board page 1

CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-PDD)

Version 02 - in effect as of: 1 July 2004)

CONTENTS A. General description of project activity B. Application of a baseline methodology C. Duration of the project activity / Crediting period D. Application of a monitoring methodology and plan E. Estimation of GHG emissions by sources F. Environmental impacts G. Stakeholders comments

Annex Annex 1: Contact information on participants in the project activity Annex 2: Information regarding public funding Annex 3: Baseline information

Annex 4: Monitoring plan Appendix

Appendix 1: Other Parameters to be measured under monitoring plan

Appendix 2: Abbreviations

Appendix 3: References

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM Executive Board Page 2 SECTION A. General description of project activity A.1 Title of the project activity: Reduction in Steam Consumption through Revamping of Ammonia Plant of Indian Farmers Fertiliser Cooperative Ltd (IFFCO) plants Version 01 Date: 17/ 01/2006 A.2. Description of the project activity:

Purpose: The purpose of project is to upgrade the existing plant technology with energy efficient technology and to reduce the Specific Steam Consumption Ratio (SSCR) of Ammonia plant of Urea fertilizer units. The project activity is implemented in 3 Urea fertilizer units of IFFCO at locations -Kalol, Phulpur, Aonla (hereafter referred to as IFFCO plants). There are various projects in the plants fall in the category of new technology alternatives, retrofits, new design and waste heat recovery. Since the energy efficiency projects are being implemented in various sections of Ammonia plants, the performance of one project is linked to other project. Therefore the technology supplier and consultant recommend that these projects should be implemented in all plants of IFFCO in an integrated manner to achieve maximum energy savings. These projects essentially target the reduction of steam consumption in plant, which would in turn lead to lower specific steam consumption of plant and hence would result in reduction in fuel fired (coal, natural gas , naphtha , Low Sulphur Heavy Stock (LSHS)) in the boilers. This will reduce CO2 emissions in each plant. The project has large replication potential and can be followed by other fertilizer plants for further substantial reduction in CO2.

Projects Contribution to Sustainable Development

The project activity to be implemented in IFFCO plants, contributes positively to the sustainable development of India in following ways: The project activity uses energy efficient technology in ammonia plant and reduces fossil fuel consumption resulting in benign environment (CO2 emission reduction) & conserving non-renewable resources. Thus the project aids in environmental well being. Project activity would marginally increase employment opportunity for semi-skilled, skilled labour and professionals in the region during construction phase. Therefore contributing social well being aspects. The project will create a business opportunity for local stakeholders such as suppliers, contractors, bankers etc. contributing to economic well-being aspects. The project positively contributes towards the reduction in demand for Indias carbon intensive energy resources as well as adoption of energy efficient technology and resource conservation. Indian economy is highly dependent on coal / natural gas as fuel to generate energy and for production processes. The project activity reduces fossil fuel consumption for boilers and saving on non-renewable coal / natural gas / naptha/ LSHS, positively contributes towards the reduction in use of these finite resources and therefore making it available for important processes. The project will help the company to maintain its status of being one of the most progressive

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM Executive Board Page 3 companies of India due to adoption of latest technology and its efforts for sustainability. Adoption of higher technology helps in capacity building of employees by better exposures. This project activity is located in a rural setting and contributes to the environmental and social issues locally and globally through: Reduces consumption of fossil fuels by adopting energy efficient technologies Conserving Coal and LSHS in Phulpur, Natural gas in Aonla and Naphtha and Natural Gas in

Kalol plants, thereby reducing the pace of depletion of natural resources. Making coal / natural gas / naptha/ LSHS available for other important economic applications Reducing Green House Gases (Carbon Dioxide) Contributing to marginal increase in the local employment in the area of skilled / unskilled jobs

during construction phase of the project activity & ameliorating economic status of the rural community

Aids in capacity building of higher technology for employees Providing a highly replicable, efficient model to other fertilizer plants in the country 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 (Host) IFFCO ( Private entity ) No Japan Japan Carbon Finance, Ltd.

(Private entity ) No

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

India A.4.1.2. Region/State/Province etc.: i) Site 1- Gujarat ii) Site 2-Uttar Pradesh iii) Site 3-Uttar Pradesh A.4.1.3. City/Town/Community etc: i) Site 1- Kalol, City-Gandhinagar ii) Site 2- Phulpur City-Allahabad iii) Site 3- Aonla City-Bareilly

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM Executive Board Page 4 A.4.1.4.Detail of physical location, including information allowing the unique identification of this project activity (maximum one page):

IFFCO proposes to implement energy efficiency measures (Project activity) in Kalol, Phulpur & Aonla plants.

Kalol Plant (Site 1)

The Kalol Plant started its operation in the year 1974 and has a total installed capacity of 0.363 MTPA of ammonia production and 0.545 MTPA of urea production. The Plant is located on Ahmedabad-Mehsana state highway and is 25 km away from Ahmedabad.

Phulpur Plant (Site 2)

The Phulpur Plant is also divided into two units viz. Unit I and Unit II. The Plant started its urea production from the year 1981 onwards and has an installed capacity of 0.824 MTPA of ammonia production and 1.416 MTPA of urea production. The Plant is located on Allahabad-Gorakhpur road and is 30 km away from Allahabad. The Plant is spread in an area of 321 acres.

Aonla Plant (Site 3)

The Aonla Plant is divided into two units viz. Unit I and Unit II. The Plant has total installed capacity of 1.003 Million Tonnes Per Annum (MTPA) of ammonia production and 1.730 MTPA of urea production. The Plant is located on Bareilly-Aonla highway and is 25 km from Bareilly. The Plant is spread over an area of 260 hectares and nearest railway station is 10 km from the site. A.4.2. Category(ies) of project activity:

As per the scope of the project activity enlisted in the list of sectoral scopes and approved baseline and monitoring methodologies (version 02/28.11.03), project activity can principally be categorized in Scope Number 3, Sectoral Scope Energy Demand. A.4.3. Technology to be employed by the project activity:

The technology employed for revamping ammonia plant with energy efficient system is developed by IFFCO together with M/s Haldor Topsoe (HTAS) Denmark , who is the leader in technology for ammonia plant. M/s HTAS is the leading process licensor having designed more than fifty percent of the new ammonia capacity built since 1990 and also M/s HTAS is well conversant with IFFCO ammonia plants and have been associated with various revamps/retrofits carried out in the past.

M/s HTAS is primarily responsible for basic engineering and procurement assistance, inspection, expediting services, supervision and assistance during erection and commissioning of critical items. M/s Projects & Development India Ltd. (PDIL)-is the Indian Engineering Consultant for the project activity. M/s PDIL has been involved in the design, engineering and construction of almost all the major grass-root fertilizer projects in India. Also M/s PDIL has successful proven record with the technology supplied by M/s HTAS.

The project concept for energy efficiency is developed by IFFCO is very innovative and crystallized after technical analysis of process profile by spending good man-hours, frequent trials, capacity building & meticulous Research & Development (R&D). The technology is pioneering and one of its kind for which IFFCO personnel have made many visits to European countries to gain experience in the technology.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM Executive Board Page 5 For the ease of understanding the following Table 1 is prepared to depict the name of each project and corresponding locations, where these are implemented.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM Executive Board Page 6

Table 1 - Details of energy efficiency schemes

Sr. No

Energy efficiency schemes1 Aonla I Aonla II

Phulpur-I

Phulpur-II

Kalol

1 New Low Temperature (LT) shift guard, Boiler Feed Water (BFW) preheater 4 4 4 4 4 2 Installation of S-50 radial flow Synthesis Converter and High Pressure (HP) / Medium Pressure (MP) Boiler 4 4 4 4 4 3 Installation of Make-up Gas Chiller 4 4 4 4 4 Synthesis Gas Compressor LP (Low Pressure) & HP case Internal Replacement 4 4 5 Drying of Make-up Gas and Synthesis Loop Re-piping 4 4 6 Improvement in outlet systems for High Temperature (HT) / Low Temperature (LT )Shift Converters 4 4 7 Complete revamping of CO2 removal system to a modern two-stage GV process 4 8 Installation of additional Process Condensate (PC) / PC Exchanger at Aonla-II 4 9 Modification of HT Steam Super Heat Coil in Waste Heat Section of Primary Reformer at Aonla-II 4 10 New Combustion Air Module in Waste Heat Section of Primary Reformer in Ammonia-II of Aonla 4 11 Closing steam balance for Aonla unit I 4 12 Closing steam balance for Aonla unit II 4

13 Complete revamping of CO2 removal system to a modern 2-stage GV process at Phulpur - I 4 14 Revamping of CO2 removal system to 2-stage a-MDEA process at Kalol 4 15 Revamp of Induced Draft (ID) Fan Drive Turbine at Kalol 4 16 Closing steam balance for Kalol Plant 4

1 The location of the projects (in each section of Ammonia plant) is depicted separately in project boundary (Refer section B.4 in this PDD).

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM Executive Board page 7

The technical description of energy efficiency schemes implemented in different units of IFFCO is given below. The projects are descried below in brief, due to their complex nature and detailed flow charts of schemes are not given as annexure to this PDD for the confidentiality reasons. However, the flowcharts along with all technical details of schemes would be made available to Designated Operation Entity during Validation and Verification phases of CDM project activity.

1. New Low Temperature (LT) shift guard, Boiler Feed Water (BFW) preheater

A new LT shift guard would be installed before LT shift converter in order to reduce the Carbon mono-Oxide (CO) slippage from the section without increasing the pressure drop across the section. On an average, the CO slip after LT shift converter, once the LT shift guard is installed would be lower i.e. 0.10-0.15% as against 0.25-0.30% (the present scenario) without LT shift guard. Lower CO slip would in turn result in additional ammonia production due to reduction in the consumption of Hydrogen in Methanator for converting all carbon oxides into inert Methane before entering Ammonia Synthesis loop. The Ammonia production would be kept constant; in turn the feed (Naphtha, Natural Gas) would be reduced. The reduction in feed results in subsequent reduction in steam consumption.

Also a new BFW preheater would be installed at down stream of the new LT shift guard in order to control the inlet temperature to the LT shift converter. The new BFW preheater would improve the heat gain in BFW for the production of High Pressure (HP) steam and temperature control in the LT shift section. With the installation of LT shift guard, it would be possible to short load the existing LT shift converter and reduce the pressure drop across the converter.

This scheme is to be implemented in Aonla unit I & II , Phulpur unit I & II, Kalol Plant.

2. Installation of S-50 radial flow Synthesis Converter and High Pressure (HP) / Medium Pressure (MP) Boiler

A new S-50 converter would be installed at the down stream of existing Ammonia Synthesis Converter. The new converter would increase the ammonia conversion per pass thereby reducing the amount of recycled gas entering the synthesis compressor and reducing the load on compressor. The reduced load on the synthesis compressor leads to lesser steam consumption for compressor operations.

In Aonla-I, Aonla-II and Phulpur-II, a new HP waste heat boiler would be installed at the downstream of existing converter for utilisation of reaction heat generated in the existing converter. The existing HP waste heat boiler would utilize the heat of reaction from the new S-50 converter.

In Phulpur-I and Kalol , a new MP waste heat boiler would be installed at the downstream of S-50 converter for utilization of the reaction heat generated in the S-50 converter.

3. Installation of Make-up Gas Chiller

In the existing system make up gas is cooled to 35 0C before being compressed in the synthesis gas compressor. It is proposed to install a make up gas chiller at the down stream of final gas cooler to cool the make up gas to 6-8 0C. This would increase the volumetric efficiency due to lower inlet temperature of make-up gas leading to reduction in steam consumption in the synthesis gas compressor for the same work output.

This scheme is to be implemented in Aonla unit I & II , Phulpur unit I & II .

4. Synthesis Gas Compressor LP (Low Pressure) & HP case Internal Replacement

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02

CDM Executive Board Page 8 The present Compressor is of mid 1970 design and the operating conditions has changed since then. The new internals of LP & HP case shall be designed to meet the new operating conditions with better compression efficiency based on modern 3-D design. Hence the combined efforts of matching of the system & operating conditions, improvement in efficiency leads to lesser steam consumption in the synthesis compressor. This scheme is to be implemented in Kalol Plant and Phulpur Unit - I

5. Drying of Make-up Gas and Synthesis Loop Re-piping

The Ammonia synthesis catalyst gets poisoned if oxides of carbon or water vapour are present in the converter inlet gas. Currently, to remove these oxides, the fresh makeup gas is mixed with recycle gas containing ammonia. The recycle and makeup gas mixture is then cooled and chilled. By means of this, process oxides present in the makeup gas get dissolved in the ammonia and separated out. Thus making the converter inlet gas free from oxides and is fed to the synthesis converter. The present system has a disadvantage because the ammonia formed in converter is compressed in synthesis compressor and chilling of complete make up gas is done for which relatively higher power is consumed.

Installation of ammonia wash unit between LP & HP case of Synthesis Compressor and synthesis loop repiping would reduce the power consumption in synthesis and refrigeration compressor as the ammonia would be condensed at the Synthesis Converter outlet and make up gas would be fed directly to the Synthesis Converter. The reduction in power consumption of synthesis compressor leads to steam consumption reduction.

This scheme is to be implemented in Phulpur unit I & Kalol Plant.

6. Improvement in outlet systems for High Temperature (HT) / Low Temperature (LT )Shift Converters

The present outlet system of HT / LT shift Converters are having Elephant Stool, which would be modified with the improved design of HTAS. With this modification, it is expected that the pressure drop in the reactor would reduce. The lower pressure drop would result in higher suction pressure for the synthesis gas compressor and there would be reduction in power consumption in the compressor leading to steam consumption reduction.

This scheme is to be implemented in LT shift converters and Methanator of Phulpur unit I and for Kalol plant the scheme is to be implemented both in LT & HT shift converters at next opportunity of catalyst replacement.

7. Complete revamping of CO2 removal system to a modern two-stage GV process at Aonla-I

The present CO2 removal system is designed for one stage absorption process. It is proposed to modify the single stage GV process to two-stage GV process for reduction of energy consumption. The main features of two-stage GV process are the lean and semi lean absorption, high pressure and low-pressure stripping. A new LP stripper would be installed where the solution would be regenerated by flashing instead of reboiling/steam heating , thus reducing the steam consumption for regeneration of the solution in the stripper. Also with the above modification a better absorption is obtained and more pure CO2 product would be available with lower regeneration energy.

8. Installation of additional Process Condensate (PC) / PC Exchanger at Aonla-II

During the cooling of process gas, condensate is separated. This process condensate contains dissolved gases like ammonia and carbon dioxide. These gases are removed from the process condensate by stripping the condensate in the MP Process Condensate Stripping unit by MP


CDM Executive Board Page 9 steam. The hot condensate after stripping is cooled in two exchangers and sent to Demineralized water plant.

Presently the outlet temperature of process condensate from condensate feed/effluent exchanger going to Stripping remains around 2050C as against the design temperature of 2280C.In view of above, it is proposed to provide an additional exchanger to heat the process condensate to 2280C thus extracting the maximum heat from the stripped process condensate coming from stripper.

9. Modification of HT Steam Super Heat Coil in Waste Heat Section of Primary Reformer at Aonla-II

The HP steam super heat coils are designed to give HP steam at temperature of 525 0C. However presently the temperature of HP steam at the exit of super heater coils remains around 491 0C. In view of the above, it is proposed to modify the HP Steam Super Heat Coil to raise the temperature of the HP steam close to design value and thereby have more efficient operation with less steam consumption.

10. New Combustion Air Module in Waste Heat Section of Primary Reformer in Ammonia-II of Aonla

It is proposed to provide additional air preheating modules in the waste heat section to recover more heat duty from the flue gases. The existing Combustion Air Pre-heater is having a dummy section and therefore can accommodate additional modules. Thus by providing additional modules in dummy section of existing Combustion Air Pre-heater the heat transfer surface area will increase and there will be reduction in flue gas temperature from 1530 C to around 1380 C. The additional heat transfer in combustion air pre-heater will result in lower specific energy consumption owing to less fuel gas consumption.

11. Closing steam balance for Aonla unit I

With the implementation of energy saving schemes, there would be reduction in LP steam consumption and LP steam will be surplus. Presently most of the LP steam is available through back pressure turbines.

It is proposed to change the back pressure turbines (GV Booster pump turbine and Ammonia-I Cooling water pump turbine) to motors in order to reduce the LP steam availability from back pressure turbines. This will help in utilizing the LP Steam available from implementation of energy saving schemes like complete revamping of CO2 system to 2-stage GV system.

12. Closing steam balance for Aonla unit II

With the implementation of energy saving schemes, the following turbines will be changed to motor to close the steam balance One Turbine for Ammonia-II Cooling water pump One Turbine for Urea-II cooling water pump

13. Complete revamping of CO2 removal system to a modern 2-stage GV process at Phulpur - I

The present CO2 removal system is based on Low Heat Benfield system. It is proposed to modify the same to a 2-stage GV process for reduction of energy consumption.

The main features of 2-stage GV process are the lean and semilean absorption, high pressure and low-pressure stripping in two stripping towers, which are presently operating in parallel at


CDM Executive Board Page 10 same operating pressure. The LP stripper would be installed where the solution would be regenerated by flashing instead of reboiling/steam heating, thus reducing the steam consumption for regeneration of the solution in the stripper. This would lower the energy consumption for regeneration of the solution in the strippers considerably.

A new CO2 blower shall be installed at LP stripper outlet to match the HP stripper outlet CO2 pressure for CO2supply to urea plant.

With the above modification, a better absorption would be obtained and more pure CO2 product would be available with lower regeneration energy.

14. Revamping of CO2 removal system to 2-stage a-MDEA process at Kalol

A large energy saving can be obtained by changing the present a-MDEA based system from one stage CO2 removal system to the a-MDEA two stage system. The system includes a two-stage absorption, low pressure and high pressure flash and stripping. The introduction of LP and HP flash vessels reduces the energy for regeneration of the solution and improves the quality of the CO2 product. In flash vessels where the solution would be regenerated by flashing instead of reboiling / steam heating, thus reducing the steam consumption for regeneration of the solution in the stripper.

It is foreseen to install a complete new absorber having both lean and semilean absorption.

15. Revamp of Induced Draft (ID) Fan Drive Turbine at Kalol

For closing and optimizing the steam balance, existing back pressure ID fan turbine is proposed to be modified to condensing one with a provision of atmospheric venting during plant startup. The conversion of backpressure turbine to condensing type would result in lesser steam consumption for the same work output.

16. Closing steam balance for Kalol Plant

With the implementation of energy saving schemes, there would be reduction in HP steam consumption and LP steam consumption and LP steam would become surplus. HP steam generation can be reduced at the source of generation i.e. in Ammonia Plant itself or from Off-site Boilers. However, LP steam generation available through back pressure turbines which are used for driving pumps etc. shall remain.

Any modification required to utilize the LP steam available from implementation of energy saving schemes like complete revamping of CO2 system would be carried out. Improved BFW heating shall also be done so as to optimise the complete steam system. A.4.4. Brief explanation of how the anthropogenic emissions of anthropogenic greenhouse gas (GHGs) by sources are to be reduced by the proposed CDM project activity, including why the emission reductions would not occur in the absence of the proposed project activity, taking into account national and/or sectoral policies and circumstances:

The project adopts energy efficient technology measures in ammonia plant and reduces SSCR (Specific Steam Consumption Ratio) of ammonia plant. The reduction of SSCR would lead to reduction in fossil fuels consumption in the boilers, which would in turn reduce CO2 emissions of IFFCO plants. In absence of the project activity, IFFCO plants would continue to have high SSCR leading to higher GHG emissions. By implementing the project activity, IFFCO proposes to reduce the SSCRs levels by following manner:

Sl No IFFCO plant SSCR

Ton of steam consumed /

Ton of ammonia produced

Annual CO2 Emission reductions (tons/ annum)


CDM Executive Board Page 11

Baseline

Project

1 Aonla- I 4.29 3.44

2 Aonla-II 4.29 3.86

75,138

3 Phulpur-I 6.32 5.54

4 Phulpur-II 4.57 4.54 76, 801

5 Kalol 5.64 4.33 110,772

Perceived technical and financial risks to fertiliser industry in adopting innovative energy saving technologies are very high in India because of complex fertilizer technology and huge investment required in modifications. Moreover, fear that a new technology may not work inhibits industry from adopting new energy saving technologies. Despite these inhibiting factors, IFFCO took the initiative in adopting this energy efficient technology.

The Ministry of Fertilizers, Ministry of Power (MoP) and Ministry of Non-conventional Energy Sources (MNES) in India encourage energy conservation; they do not require Fertilizer industries to reduce their specific energy consumption to a prescribed standard. Nor do the Fertilizer association of India have imposed any directives for improving energy efficiency. The project proponent has implemented the project activity over and above the national or sectoral requirement and the GHG reductions achieved by the project activity are additional to those directed by the governmental policies and regulations.

The project proponent is implementing the project, as there is an opportunity to sell the CO2 emission reductions and gets carbon revenue through Clean Development Mechanism (CDM) stream for the project activity, which would ameliorate the financial attractiveness of the project. The additionality criteria of the project activity are dealt with in details in section B.

A.4.4.1. Estimated amount of emission reductions over the chosen crediting period:

Years Annual estimation of emission reductions in tonnes of CO2 e

2006-2007 262,711 2007-2008 262,711 2008-2009 262,711 2009-2010 262,711 2010-2011 262,711 2011-2012 262,711 2012-2013 262,711 2013-2014 262,711 2014-2015 262,711 2015-2016 262,711

Total estimated reductions (tonnes of CO2 e)

2,627,110


CDM Executive Board Page 12 Total number of crediting years 10 Annual average over the crediting period of estimated reductions (tonnes of CO2 e)

262,711

A.4.5. Public funding of the project activity:

No public funding from parties included in Annex I is available to the project


CDM Executive Board Page 13 SECTION B. Application of a baseline methodology B.1. Title and reference of the approved baseline methodology applied to the project activity: >> Title: Baseline methodology for steam optimization systems Reference: AM0018, UNFCCC website B.1.1. Justification of the choice of the methodology and why it is applicable to the project activity: >> As per the Kyoto Protocol (KP) baseline should be in accordance with the additionality criteria of article 12, paragraph 5(c), which states that the project activity must reduce emissions that are additional to any that, would occur in the absence of the certified project activity.

As per the paragraph 48 of decision-17/CP 7 of Modalities and Procedures for CDM as defined in article 12 of KP, project participants shall select baseline methodology for a project activity from the following three alternative approaches mentioned, the one deemed most appropriate for the project activity, taking into account any guidance by executive board and justify the appropriateness of their choice. a) Existing actual or historical emissions, as applicable; or b) Emissions from a technology that represents an economically attractive course of

action, taking into barriers to investment; or c) The average emissions of similar project activities undertaken in the previous five

years, in similar social, economic, environmental and technological circumstances, and whose performance is among the top 20 percent of their category.

Out of above options, Option-(a) is most suitable choice for selection of baseline methodology. This is because the new CDM project scenario can be directly compared with emission scenario of the old processes (Please refer approved methodology AM0018 for approach 48-a) in similar case).

Justification for why is the approach 48-a applicable to project activity.

Both the scenarios before and after the implementation of the project activity are as follows: Scenario 1 Non-project option: In the business-as-usual scenario, IFFCO continues to emit carbon dioxide by maintaining the earlier technology status and not carrying out energy efficiency measures. This will lead to additional steam generation at boilers in three plants of IFFCO i.e., Kalol, Phulpur and Aonla Scenario 2 CDM Project option: In the project activity scenario, the energy efficiency projects (described in section A.2 of this PDD) are implemented in IFFCO plants at Kalol, Phulpur and Aonla. This will result the reduction of steam consumption and thereby reduction in consumption of Natural Gas/ LNG/Naphtha / Fuel Oil / LSHS / Coal in boilers of these plants.


CDM Executive Board Page 14 There is direct comparison of emissions that can be made available with IFFCO plants after commissioning of projects. This will be based on recorded data. As per the Kyoto Protocol (KP) baseline should be in accordance with the additionality criteria of article 12, paragraph 5(c), which states that the project activity must reduce emissions that are additional to any that would occur in the absence of the certified project activity. Moreover, the project activity is of the first type in India, therefore any other project activity is not available for comparison. On the basis of this, it can be justified that most suitable baseline methodology for this application would be based on Existing actual or historical emissions.

Justification for why is the approved baseline methodology AM-0018 is applicable to project activity.

Following are the various points, which justify the application of AM-0018 for project activity. 1. The methodology is applicable for 48-(a) approach only. 2. The applicability conditions of methodology for production processes with homogeneous

and relatively constant output and continuous monitoring of steam outputs. These conditions are perfectly applicable to proposed CDM project activity of IFFCO.

IFFCO plants (Aonla-I, Aonla-II, Phulpur-I, Phulpur-II and Kalol) are constant output Urea production plants. The Ammonia production is these plants is relatively constant. In fact, Fertilizer Industry in India can produce the quantity of Fertilizers that is allotted by Government of India, based on capacity. This ensures the constant nature of output. B.2. Description of how the methodology is applied in the context of the project activity: >> The methodology uses four-point approach. In this approach, actual data shall be collected for direct comparison of baseline and project specific steam consumption and thus estimating reduction in CO2 emissions. 1. Baseline Fixation: Baseline will be fixed by calculating specific steam consumption (Tonne

of steam/ Tonne of Ammonia Produced) in Ammonia plant from the data documented in the record sheets. The value of Ammonia Produced used is the average representative value of normal range2 of output3 (Ammonia Production) measured in a day. The steam consumption values corresponding to Ammonia production values selected above needs to be identified and the average representative value required to be calculated (refer section-D for details).

2. Estimation of Specific Steam Consumption After Project Implementation: In the project scenario, specific steam consumption (Tonne of steam/ Tonne of Ammonia Produced) in Ammonia plant shall be calculated based on the ratio of average representative values of steam consumed and Ammonia Produced. The method for estimating representative data of

2 Normal range is the range in which the plant output takes place most of the time. This is based on the rated plant capacity and internally acceptable deviations ( 5% of rated plant capacity). 3 Output here is defined as the main outcome of process/system for which process/system is designed and where the steam generated by using fossil fuel is utilized. Therefore, in case of IFFCO, output of the process is the quantity Ammonia Produced per hour (in kg or Tons) and accounted through the monitoring system.



output and steam consumption is same as in case of baseline scenario (refer section D for details).

3. Estimation of Emission Reduction: Total reduction in steam consumption in project

scenario shall be calculated by multiplying the reduction in specific steam consumption by total Ammonia Produced in project scenario. The reduction in emission shall be calculated by estimating the fuel required for the generation of additional steam in the boiler (or Heat Recovery Steam Generator (HRSG) or Heat Recovery Unit (HRU) or Auxiliary Boiler depending on plant). The efficiency of boiler (in case of Phulpur-I and Phulpur-II plant) and net enthalpy of steam is monitored to estimate the saving in fuel. In case of Aonla-I and Aonla- II plant, the fuel is saved in HRSG and HRUs of Gas turbine, where the fuel is used to add superheat to the gases going to steam generators. The manufacturers table is used to derive the relationship between power generation in generator, steam generated and fuel consumed. In case of Kalol plant the fuel is saved in Auxiliary boiler, which is producing the steam by the combination of process waste heat streams and fuel. Therefore efficiency of auxiliary boiler of Kalol and HRSG, HRU of Aonla I & II would is estimated by simple heat balance method.

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 CDM project activity: >> As per the decision 17/cp.7 Para 43, a CDM project activity is additional if anthropogenic emissions of greenhouse gases by sources are reduced below those that would have occurred in the absence of the registered CDM project activity. The proposed project activity is energy efficiency improvement activity and results into net reduction in CO2 emissions of facility.

Following steps of additionality test are followed with respect to IFFCO steam optimisation projects for demonstration of additionality Step 0. Preliminary Screening based on the starting date of the project activity

IFFCO wishes to have the crediting period starting prior to the registration of their project activity. IFFCO is therefore required to (a) Provide evidence that the starting date of the CDM project activity falls between 1 January 2000 and the date of the registration of a first CDM project activity, bearing in mind that only CDM project activities submitted for registration before 31 December 2005 may claim for a crediting period starting before the date of registration; and (b) Provide evidence that the incentive from the CDM was seriously considered in the decision to proceed with the project activity. IFFCOs management took the decision of taking up the project activity, considering the incentive from the CDM. The incentive provided by CDM was critically considered before decision making by the project Proponent. Following are the documents available that can be shown as evidence to support that CDM was seriously considered in the decision to proceed with the project activity: The officially approved internal notes of IFFCO on Revamping of ammonia plant

project and considering CDM revenues generated by the revamping project. Communication of IFFCO with CDM consultants and various other parties for

availing funds for these schemes.



Step 1. Identification of alternatives to the project activity consistent with current laws and regulations Define realistic and credible alternative scenarios to the CDM project activity that can be (part of) the baseline scenario through the following sub-steps: Sub-step 1a. Define alternatives to the project activity

Sub-step 1b. Enforcement with applicable laws and regulations: Alternative 1 Continuation of current practice: In the business-as-usual scenario, IFFCO continues to emit higher quantity of carbon dioxide by maintaining the earlier technology status and not carrying out energy efficiency measures. Alternative 2 Implementation of the CDM project activity Reduction in steam consumption through revamping of ammonia plant. In the project activity scenario, the energy efficiency projects (described in section A.2 of this PDD) are implemented in IFFCO plants at Kalol, Phulpur and Aonla. This will result the reduction of steam consumption and thereby reduction in consumption of Natural Gas/ LNG/Naphtha / Fuel Oil / LSHS / Coal in boilers of these plants. All these Alternatives are in compliance with all applicable legal and regulatory requirements. There is no legal binding on IFFCO to implement the CDM project activity. In India it is not mandatory to implement energy efficiency projects in fertilizer sector. There is no policy, which promotes implementation of energy efficiency projects in fertilizer sector and would be adequate to stimulate implementation of the project activity in absence of CDM IFFCOs Alternative 1 to project activity (continuing the current practice) does not face any Investment and Technological barriers. Therefore the barriers to IFFCOs project activity detailed below do not exist for Alternative 1 so as to prevent its wide spread implementation.

Therefore Alternative:1 Continuation of the current practice is found to be the most appropriate and conservative baseline scenario. Step 2. Investment Analysis If this step is used, determine whether the proposed project activity is the economically or financially less attractive than other alternatives without the revenue from sale of CERs. To conduct the investment analysis, use the following sub-steps: Sub-step 2a. Determine appropriate analysis method Option-III of Benchmark Analysis is chosen for demonstration of additionality. Sub-step 2b Option III. Apply benchmark analysis The Opportunity Cost of Capital (Based on expected rate of returns on equity and cost of debt and the debt to equity ratio) for IFFCO is 14.50%. If the project is below this rate of return, the project can not be taken up for implementation by IFFCO. Sub-step 2c- Calculation of suitable financial indicator


CDM Executive Board Page 17 The Internal Rate of Return (IRR) is calculated for entire investment in projects (in five plants). This is given below. IRR (%) without CDM fund IRR (%) with CDM funds Overall IRR of all plants 13.25 14.69 Note: As IFFCO is implementing steam saving projects simultaneously for all five plants, the consultants and technology suppliers will get order for bulk volume of supply. This will help in achieving high price discounts in the supplies being made to these plants. This leads to constraints in terms of IRR analysis of each plant separately. The analysis of IRR can only be done collectively for all plants. Following are the assumptions while conducting IRR analysis of the project. 1. Escalation in fuel price (Natural Gas 5%, Naphtha 17%, LSHS 10%, LNG 10%, Coal

6% and GEB electricity 5%) every year. 2. Maintenance cost is 3% of project cost with escalation of 5% every year. 3. CER Price of 5 Euro. The Opportunity Cost of Capital for IFFCO is 14.50%, which is calculated based on Return on Debt and Return on Equity in the projects taken by IFFCO. Opportunity Cost of Capital (%) = {Expected Return of debt (%) x debt / (debt+equity)} + {Expected Return on equity x equity /(debt +equity)} Expected return on equity IFFCO is estimated from last three years data of return achieved by IFFCO on various projects, which is 17%. The expected return of bank on debt given to IFFCO is 7.0%. The debt for project is expected to be 25% and equity is planned to be 75%. The IRR Calculations can be referred from Enclosure-1. The overall IRR calculations of all plants show that the IRR of the project (13.25%) is below the Opportunity Cost of Capital (Financial benchmark) that can be achieved without CDM funds. It improves to 14.69% with CDM funds availed against CERs, which is more than financial benchmark. According to Consolidated additionality tool (point no. 8 of step 2c), if the CDM project activity has a less favorable indicator (e.g. lower IRR) than the benchmark, then the CDM project activity cannot be considered as financially attractive. In the project case, the IRR is better than the minimum returns achievable through financial benchmark (14.5%) discussed above. This shows that viability of project can be improved substantially i.e, beyond financial benchmark, with CDM funds. Thus, IFFCOs project activity is financially additional. Sub-step 2d- Sensitivity Analysis Sensitivity analysis is conducted considering following deviations in assumptions to find out worst case IRR of CDM project, to analyze whether the project remains financially additional inspite of expected deviations in assumptions. Sr. No. Assumptions IRR (%) without

CDM fund IRR (%) with CDM funds

1 NG escalates by 6 % , LNG 13.33 14.74



escalates by 10 % , Naphtha escalates by 17 % , LSHS escalates by 10 % ,Coal escalates by 7.5% and GEB escalates by 5% every year

Therefore in spite of sensitivity analysis on the basis of realistic deviations in assumptions, the IRR of project activity remains less attractive than the financial benchmark. Please see Enclosure-2 to refer sensitivity analysis.

Step 4. Common Practice Analysis

Sub-step 4a. Analyse other activities similar to the proposed project:

This is the first kind of retrofit taken up by IFFCO based on M/s Haldor Topsoe study in India. Probably scale of implementation of energy saving retrofits in financial terms is one of the highest in India.

Projects with Latest Technologies

Some of the projects are based on latest technologies of Haldor Topsoe, which have only one or two credentials in India. These are as following.

1. Low Temperature Shift (LTS) Guard

2. S-50 Radial flow converter

Both the above technologies are being implemented in all five plants i.e. Aonla unit I & II, Phulpur unit I & II and Kalol unit.

Retrofits with unusual practice

The project of complete revamping of CO2 removal system, being implemented in Aonla-I for converting single-stage GV system into 2-stage GV system is quite unusual retrofit project and is one of the first kinds in India.

The projects with in-depth engineering analysis of technology, design and operational practices

The energy saving projects are planned with an independent analysis of operational practices, design and technology status of plant and the best operational practices, technology and design changes are recommended by M/s Haldor Topsoe. These projects have not come up out of common practice in the fertilizer industry but are tailor-made for the IFFCO plants. These might be some similarity exists in other Fertilizer plants in India, which IFFCO is not aware of.

Sub-step 4b. Discuss any similar options that are occurring:

The new Ammonia plants in the world scenario, for which technology is supplied by Haldor Topsoe have the technologies such as S-50 radial converters and LTS guard is supplied. Similarly 2-stage GV based CO2 removal plants are supplied in new plants of M/s GV.

But in India, the latest technology plants are the ones, which were implemented in the year 1998 by M/s Haldor Topsoe.

Step 5. Impact of CDM Registration

As stated earlier, during the planning stage of proposed CDM project activity the CDM fund was under consideration. Following impacts of CDM fund are identified from the point of view of removal of barriers discussed above. Please refer the approved internal notes of IFFCO on


CDM Executive Board Page 19 Revamping of ammonia plant project and considering CDM revenues generated by the revamping project.

Improve IRR of project from 13.25 % to 14.69% (Higher than financial benchmark of 14.5%).

Since the retrofits are not based on common practice and the CDM fund will provide additional coverage to the risk due to failure of projects, shut down of plant and loss of production. The support will be available to the losses already incurred after commissioning of project

CDM funds will encourage IFFCO to come up with more GHG abatement projects for its plants.

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

As per definition of project boundary as given in glossary of terms, it will encompass all anthropogenic emissions by sources of Green House Gases (GHGs) under the control of project participants that are significant and reasonably attributable to the CDM project activity. Based on the definition as per the proposed methodology, the project boundary covers the following.

Ammonia Plant

All the retrofit projects discussed in section A.2 will be implemented in following sections of ammonia plant; these sections become part of the project boundary

1. Primary and Secondary Reformers section

2. LT and HT Shift Converter section

3. CO2 removal Section

4. Synthesis Loop Converter section

The steam consumed in primary reformer, process heating and back pressure turbines in this section will be saved as a result of retrofit measures. The flow of steam will be monitored centrally.

Boilers (HRSG-1, HRSG-2 and HRU in Aonla plant, LSHS and Coal Fired boilers in Phulpur plant and Auxiliary boiler in Kalol plant)

The actual baseline CO2 emissions take place in these boilers


Flow chart and project boundary is illustrated in the following diagram. The projects are depicted in diagram by code nos. (e.g. 9.A.2, 14.K etc.). The coding is summarised below. Illustration of code: 1.A.1 : Initial 1means Energy saving scheme no 1( according to Sr. No. of Table 1 of section A .4.3) , A..1 - Aonla unit I Similarly, P.1- Phulpur unit I , K -Kalol

HT Converter

Section 6.K

LT Converter Section 1. A.1 1. A.2 1. P.1 1. P.2 1. K

6. P.1 6. K

CO2 Removal Section

7. A.1 8.A.2

13. P.1 14. K

Synthesis Converter Section 2. A.1, 2.A.2, 2. P.1, 2.P.2 2 K, 3.A.1, 3.A.2, 3. P.1, 3.P.2, 4. P.1, 4. K, 5. P.1 5. K ,

HRSG-1,

HRSG-2 and HRU (Aonla Plant)

LSHS Fired Boiler and

Coal Fired Boiler (Phulpur Plant)

Gas/Naptha fired

Auxiliary Boiler (Kalol plant)

11.A.1, 11.A.2, 15.K, 16.K

Main Steam Header

Output Ammonia to Urea plant

CO2 emissions due to steam generation

Process Gas Steam pipe lines

The project is part of Ammonia plant

Secondary Reformer Section

Primary Reformer Section 9. A.2

10. A.2

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM Executive Board Page 21 B.5. Details of baseline information, including the date of completion of the baseline study and the name of person (s)/entity (ies) determining the baseline: >> Date of completing the final draft of this baseline section: 01/12/2005 Name of person/entity determining the baseline: IFFCO has determined the baseline and is also project participant. The contact details are given in 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: >> 01/11/04 C.1.2. Expected operational lifetime of the project activity: >> 15 years 0 months C.2 Choice of the crediting period and related information: C.2.1. Renewable crediting period C.2.1.1. Starting date of the first crediting period: >> Not opted C.2.1.2. Length of the first crediting period: >> Not opted C.2.2. Fixed crediting period: C.2.2.1. Starting date: >> 01/05/06 C.2.2.2. Length: >> 10 years


SECTION D. Application of a monitoring methodology and plan D.1. Name and reference of approved monitoring methodology applied to the project activity: Title: Baseline methodology for steam optimization systems Reference: AM0018, UNFCCC website

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

The applicability conditions of methodology for production processes with homogeneous and relatively constant output and continuous monitoring of steam outputs. These conditions are perfectly applicable to proposed CDM project activity of IFFCO.

IFFCO plants (Aonla-I, Aonla-II, Phulpur-I, Phulpur-II and Kalol) are constant output Urea production plants. The Ammonia production is these plants is relatively constant. In fact, Fertilizer Industry in India can produce the quantity of Fertilizers that is allotted by Government of India, based on capacity. This ensures the constant nature of output. The project activity is reduction in steam consumption through revamping (retrofit) in various sections of ammonia plant. The steam is supplied by boilers (Heat Recovery Steam Generators, Coal/LSHS fired boilers and Auxiliary boilers) which are operated by combustion of fossil fuels.

The approved monitoring methodology requires monitoring of the following: The output rate is to be monitored shift-wise (for continuous processes); The steam consumption rate for the process, where the optimisation has taken place, needs

to be monitored shift-wise (for continuous processes) or batch-wise (for batch processes); Boiler efficiency (see below for different monitoring methodologies); Steam enthalpy (see below for details); Additional electricity consumption due to the project activity needs to be monitored shift-

wise (for continuous processes) The fuel composition analysis and calorific value.

All these parameters are monitored at IFFCO plants in baseline scenario and same will continue in project scenario.

Monitoring Plan is given in Annex-4.


D.2. 1. Option 1: Monitoring of the emissions in the project scenario and the baseline scenario D.2.1.1. Data to be collected in order to monitor emissions from the project activity, and how this data will be archived: Considering the above, the details of quantity of steam consumed & NH3 produced and other important project parameters to be monitored and verified in IFFCO plants are as given below.

ID number

Data Variable

Source of data

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)

Comment

Table 2 : Primary Parameters for Estimation of Emission Reduction D.2.1.1.(a)1 Steam

consumption in ammonia section

Plant Tonne / shift Measured Every Shift Total Paper Measured in the plant premises to the best accuracy and will be monitored shift-wise through DCS. Parameter shall be recorded daily. The data would be archived until 2 years after end of the crediting period.

D.2.1.1.(a)2 NH3 Production

Plant Tonne/shift Measured Every Shift Total Paper Measured in the plant premises to the best accuracy and will be monitored shift-wise through DCS. Parameter shall be recorded daily. The data would be archived until 2 years after end of the crediting period.

D.2.1.1.(a)3 Quantity of Fuel(s) used in the boiler(s)

Plant Tonne/shift Measured Every Shift Total Paper Measured in the plant premises to the best accuracy and will be monitored shift-wise through DCS. Parameter shall be recorded daily. The data would be archived until 2 years after end of the crediting period.

D.2.1.1.(a)4 Steam temperature

Plant Deg C Measured Every Shift Total Paper Monitored by temperature indicator at the end of shift/batch (either using instantaneous instrument or through DCS). The data would be archived until 2 years after end of the crediting period.

D.2.1.1.(a)5 Steam pressure

Plant Kg/sqcm(g) Measured Every Shift Total Paper Monitored based on shift logbooks, for change in fuel and time of change. The data would be archived until 2 years after end of the crediting period.

D.2.1.1.(a)6 Feed water temperature

Plant Deg C Measured Every Shift Total Paper Monitored by temperature indicator at the end of shift. The data would be archived until 2 years after end of the crediting period.


ID number

Data Variable

Source of data


Recording Frequency



Comment

D.2.1.1.(a)7 Feed water flow

Plant Cum/shift Measured Every Shift Total Paper Monitored by flow recording meter at the end of shift. Or blow down level indicator in case of one time blow down at the end of shift (and not continuous blow down). The data would be archived until 2 years after end of the crediting period.

D.2.1.1.(a)8 Calorific Value of Fuel (GCV & NCV )

Plant Natural Gas: kcal/SM3 Naphtha, Coal, LSHS kcal/kg

Measured With every delivery of fuel. (Refer guidelines on boiler efficiency monitoring)

Total Paper Fuel tested for each delivery by supplier or in-house or external reliable laboratory. (Refer guidelines on boiler efficiency monitoring). The data would be archived until 2 years after end of the crediting period.

D.2.1.1.(a)9 Ultimate Analysis of fuel

Plant Kg or kg-mole Measured With every delivery of fuel.

Total Paper Fuel tested for each delivery by supplier or in-house or external reliable laboratory. The data would be archived until 2 years after end of the crediting period.

D.2.1.1.(a)10 Boiler efficiency

Plant % Estimated Monthly (Refer guidelines on boiler efficiency monitoring)

Total Paper Direct efficiency based on heat balance.(Refer guidelines on boiler efficiency monitoring). The data would be archived until 2 years after end of the crediting period.

D.2.1.1.(a)11 Retrofit Event - Measured As and when occurs.

Total Paper Follow Retrofit Monitoring Test as given in monitoring methodology. The data would be archived until 2 years after end of the crediting period.

Effect of future retrofitting on baseline and project emissions:

The following test should be applied while monitoring the effect of future retrofitting within the project boundary (change in output level, process change, equipment change etc. affecting specific steam consumption) on baseline and project emissions. The following question should be asked if retrofit measures reduce the steam consumption within the project boundary.

Question: Does retrofitting reduce the steam consumption of the CO2 removal system? (I.e. there is a reduction in estimated project emissions, though not caused by the CDM project activity itself.)


Action: The enhanced steam saving due to the impact of retrofit on CO2 removal sysem needs to be estimated and deducted from claimed emission reductions.

D.2.1.2. Description of formulae used to estimate project emissions (for each gas, source, formulae/algorithm, emissions units of CO2 equ.)

1. Emissions due to steam Consumption in Ammonia Plant The source of greenhouse gas emissions in the project activity is due to steam consumption in the Ammonia plant resulting into CO2 emitted from fossil fuels like Natural gas/Naphtha etc., fired in the boilers for generating steam. Step-1: Estimate representative value of Ammonia ( NH3 ) production of the unit Based upon NH3 production of the unit, all values (P1, P2, P3 etc.) under normal range of plant capacity to be selected and averaged out to find out representative value.

( ) 3...1 xn

PPP nrep+

=

Where, P1Pn = value(s) of NH3 produced (Tonne / shift ) No. of shifts per day = 3 Prep = Representative value of NH3 produced in the unit (Tonne /day) Note: n may not be equal to 3 (no. of shifts), because if some shift-data is filtered out because it is out of normal production range, n will be less than 3. Step-2: Estimate steam consumption for representative output values

The steam consumption (consumption per shift) values corresponding to representative NH3 production values are selected and the average of the same is calculated.

( ) 3....1 +=n

SSS nrep

S1Sn = Values of steam consumption per shift (Tonne /shift).


Srep= Representative steam consumption for the day (corresponding to representative production of the day)

No. of shifts per day = 3 Step-3: Calculate Specific Steam Consumption Ratio-SSCR (Tonne of steam consumed / Tonne of NH3 produced) The steam consumption values corresponding to NH3 produced values selected above, to be identified and average representative value (Ss ) to be worked out.

Ss = Srep / Prep Where, Ss = Specific Steam Consumption Ratio (Tonne of steam/ Tonne of NH3 produced from Ammonia plant) Srep = Representative Steam Consumption Rate (Tonne/day)

D.2.1.3. Relevant data necessary for determining the baseline of anthropogenic emissions by sources of GHGs within the project boundary and how such data will be collected and archived :

ID number

Data Variable Source of data


Recording Frequency



Comment

D.2.1.3.(a)1 Steam consumption in ammonia section

Plant Tonne / shift Measured Every Shift Total Paper Measured in the plant premises to the best accuracy and will be monitored shift-wise through DCS. Daily print out for the data will be taken. The data would be archived until 2 years after end of the crediting period.

D.2.1.3.(a)2 NH3 Production Plant Tonne/shift Measured Every Shift Total Paper Measured in the plant premises to the best accuracy and will be monitored shift-wise through DCS. Daily print out for the data will be taken. The data would be archived until 2 years after end of the crediting period.

D.2.1.3.(a)3 Quantity of Fuel(s) used in the boiler(s)

Plant Tonne/shift Measured Every Shift Total Paper Measured in the plant premises to the best accuracy and will be monitored shift-wise through DCS. Daily print out for the data will be taken. The data would be archived until 2 years after end of the crediting period.

D.2.1.3.(a)4 Steam temperature Plant Deg C Measured Every Shift Total Paper Monitored by temperature indicator at the end of


ID number



Recording Frequency



Comment

shift/batch (either using instantaneous instrument or through DCS). The data would be archived until 2 years after end of the crediting period.

D.2.1.3.(a)5 Steam pressure Plant Kg/sqcm(g) Measured Every Shift Total Paper Monitored based on shift logbooks, for change in fuel and time of change. The data would be archived until 2 years after end of the crediting period.

D.2.1.3.(a)6 Feed water temperature

Plant Deg C Measured Every Shift Total Paper Monitored by temperature indicator at the end of shift/batch. The data would be archived until 2 years after end of the crediting period.

D.2.1.3.(a)7 Feed water flow Plant Cum/shift Measured Every Shift Total Paper Monitored by flow recording meter at the end of shift/batch. Or blow down level indicator in case of one time blow down at the end of shift (and not continuous blow down). The data would be archived until 2 years after end of the crediting period.

D.2.1.3.(a)8 Calorific Value of Fuel (GCV & NCV )

Plant Natural Gas: kcal/SM3 Naphtha , coal , LSHS: kcal/kg

Measured With every delivery of fuel. (Refer guidelines on boiler efficiency monitoring)


D.2.1.3.(a)9 Ultimate Analysis of fuel

Plant Kg or kg-mole Measured With every delivery of fuel. (Refer guidelines on boiler efficiency monitoring)


D.2.1.3.(a)10 Boiler efficiency Plant % Estimated Monthly (Refer guidelines on boiler efficiency monitoring)

Total Paper Direct efficiency based on heat balance.(Refer guidelines on boiler efficiency monitoring). The data would be archived until 2 years after end of the crediting period.

D.2.1.3.(a)11 Retrofit Event - Measured As and when occurs.

Total Paper Follow Retrofit Monitoring Test as given in monitoring methodology. The data would be


ID number



Recording Frequency



Comment

archived until 2 years after end of the crediting period.

D.2.1.4. Description of formulae used to estimate baseline emissions (for each gas, source, formulae/algorithm, emissions units of CO2 equ.)

The specific steam consumption (Tonne) in Ammonia plant per NH3 production is derived for base case scenario. This figure of specific steam consumption is used for all future project scenarios to compare the emissions of project scenario and likely emissions of baseline scenario. Emissions due to steam Consumption in Ammonia Plant The source of greenhouse gas emissions in the project activity is due to steam consumption in the boilers resulting into CO2 emitted from fossil fuels like Natural gas/Naphtha /Coal /LSHS/fired in the boilers for generating steam. The historical one-month data on shift-wise output of NH3 produced is analysed and representative output value (Prep) is calculated. While calculating daily average, the extreme values are segregated from the available values of output rate (shift output). This is because the specific steam consumption in a plant reduces with increased production rates. Based on our experience, the energy-production relationship is not significantly sensitive up to +/-5% of normal rated production. Therefore +/- 5% range is taken as normal production range for this purpose. If production fluctuates (from shift to shift) beyond normal production range, these specific values are segregated to derive average production of the day. Similarly steam consumption value corresponding to such production is also segregated. Step-1: Estimate representative value of Ammonia ( NH3 ) production of the unit Based upon NH3 production of the unit, all values (P1, P2, P3 etc.) under normal range of plant capacity to be selected and averaged out to find out representative value.

( ) 3...1 xn

PPP nrep+

=

Where, P1Pn = value(s) of NH3 produced (Tonne / shift ) No. of shifts per day = 3 Prep = Representative value of NH3 produced in the unit (Tonne /day)


Note: n may not be equal to 3 (no. of shifts), because if some shift-data is filtered out because it is out of normal production range, n will be less than 3. Step-2: Estimate steam consumption for representative output values

The steam consumption (consumption per shift) values corresponding to representative NH3 production values are selected and the average of the same is calculated.

( ) 3....1 +=n

SSS nrep

S1Sn = Values of steam consumption per shift (Tonne /shift).

Srep= Representative steam consumption for the day (corresponding to representative production of the day)

No. of shifts per day = 3 Step-3: Calculate Specific Steam Consumption Ratio-SSCR (Tonne of steam consumed / Tonne of NH3 produced) The steam consumption values corresponding to NH3 produced values selected above, to be identified and average representative value (Ss ) to be worked out.

Ss = Srep / Prep Where, Ss = Specific Steam Consumption Ratio (Tonne of steam/ Tonne of NH3 produced from Ammonia plant) Srep = Representative Steam Consumption Rate (Tonne/day)

D. 2.2. Option 2: Direct monitoring of emission reductions from the project activity (values should be consistent with those in section E). D.2.2.1. Data to be collected in order to monitor emissions from the project activity, and how this data will be archived:


ID number (Please use numbers to ease cross-referencing

to table D.3)

Data variable

Source of data

Data unit

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

Recording frequency

Proportion of data to

be monitored

How will the data be archived? (electronic/

paper)

Comment

D.2.2.2. Description of formulae used to calculate project emissions (for each gas, source, formulae/algorithm, emissions units of CO2 equ.): >> D.2.3. Treatment of leakage in the monitoring plan D.2.3.1. If applicable, please describe the data and information that will be collected in order to monitor leakage effects of the project activity

ID number (Please use numbers to ease cross-referencing to table D.3)

Data variable

Source of data Data unit

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

Recording frequency



Comment

Not applicable

Not applicable

Not applicable

Not applicable

Not applicable Not applicable

Not applicable

Not applicable Not applicable

D.2.3.2. Description of formulae used to estimate leakage (for each gas, source, formulae/algorithm, emissions units of CO2 equ.) Not applicable


D.2.4. Description of formulae used to estimate emission reductions for the project activity (for each gas, source, formulae/algorithm, emissions units of CO2 equ.)

Step 4: Net Reduction in SSCR (Tonne of steam consumed / Tonne of NH3 produced ) Sr1 = Ss1-Ss

Where: Sr1 = Net Reduction in SSCR (Tonne of steam consumed / Tonne of NH3 produced ) Ss1 =SSCR of the unit in base case scenario (Tonne of steam consumed / Tonne of NH3 produced ) Ss = SSCR of the unit in project scenario (Tonne of steam consumed / Tonne of NH3 produced ) Step 5: Calculate reduction in daily steam consumption due to project activity (Tonne / day) Srf = Sr1 x Pgv Where: Srf = Net reduction in steam due to project activity (Tonne /day) Sr1 = Net reduction in specific steam consumption (Tonne of steam consumed / Tonne of NH3 produced ) Pgv= Actual NH3 production in the unit (Tonne /day)

Step-6: Calculate equivalent energy for steam reduction (GJ/day)

Ei = Srf x Es

Where Ei = Reduction in equivalent energy due to steam reduction (GJ/day) Srf = Net reduction in steam due to project activity (Tonne/ day) Es = Net enthalpy of steam = Total enthalpy of steam (GJ/tonne) Feed water enthalpy (GJ/tonne)

Step-7: Calculate CO2 emissions reduction (T /day)

Ce1 = ((Ei x (Fn x Pn)) / (1000 x bh ) Where Ce1 = CO2 emissions reduction per day due to fuel combustion in boiler to produce steam required in the unit (Te/day) Ei = Reduction in equivalent energy for steam reduction (GJ/day) Fn = Emission factor of fuel n used ( as per IPCC-guidelines (IPCC) (Te / GJ) Pn = Energy contribution share of fuel n in total energy generated by fuel mix (%)


bh = Efficiency of boiler (monitored monthly. See boiler efficiency monitoring guideline) Note : Since steam saved in Aonla plant is in Heat Recovery Steam Generators (HRSGs) and Heat Recovery Units (HRUs), the efficiency calculation on regular basis is difficult. Therefore the manufacturers table is followed to get the figure of natural gas consumption based on reduction in steam generation in HRSG and HRU. This table (chart) is validated by heat balance once in a year. Net effect on emissions due to electrical energy consumption The emission is resulted due to operation of some additional new motors installed during implementation of the energy savings schemes. The formulae used to calculate the emissions are given below: Step-8: Calculate increase in CO2 emissions due to combustion of fuel in power generation system for net increase in power consumption (T /day)

Ce1 = (Pto x Fn x Hdt) / (1000 x bh ) Where Ce2 = Increase in CO2 emissions due to increase in power consumption (Te/day) Fn = Emission factor of fuel n used (as per IPCC-guidelines (IPCC) (Te / GJ) Hd = No of operating hours in a day (24 hrs/day) Ptot = Power consumption of additional motors (GJ/day)

gh = Efficiency of electricity generating system based on historical data (assumed constant)

D.3. Quality control (QC) and quality assurance (QA) procedures are being undertaken for data monitored Data (Indicate table and ID number e.g. 3.-1.; 3.2.)

Uncertainty level of data (High/Medium/Low)

Explain QA/QC procedures planned for these data, or why such procedures are not necessary.

D.3.(a)1 Low ISO 9001 D.3.(a)2 Low ISO 9001 D.3.(a)3 Low ISO 9001 D.3.(a)4 Low ISO 9001 D.3.(a)5 Low ISO 9001


D.3.(a)6 Low ISO 9001 D.3.(a)7 Low ISO 9001 D.3.(a)8 Low There is no procedure required for the testing of fuels as the test certificate given by reputed

Naphtha/coal/LSHS supplier for each fuel delivery. In case of Natural Gas, the calorific value is available for every days supply.

D.3.(a)9 Low The procedure is required if emission factor is determined by testing of fuel supplier or in-house or external reliable laboratory . Otherwise IPCC/National emission factor to be used.

D.3.(a)10 Low ISO 9001 D.3.(a)11 Low For retrofit monitoring retrofit test should be followed as given in section D.2.1.1. D.4 Please describe the operational and management structure that the project operator will implement in order to monitor emission reductions and any leakage effects, generated by the project activity Joint General Manager (Technical) would be responsible for monitoring and archiving of data required and for estimating the emission reductions. He would be supported by Plant incharge, who would continuously monitor the data and would generate Daily, Monthly report of the same

D.5 Name of person/entity determining the monitoring methodology:

IFFCO has determined monitoring methodology and is also project participant. The contact details are given in Annex 1.


SECTION E. Estimation of GHG emissions by sources E.1. Estimate of GHG emissions by sources: Following are sample calculations. Please refer Enclosure-3, Enclosure-4 and Enclosure-5 for Excel sheet calculations for Aonla, Phulpur and Kalol plants respectively. Sample Calculations Aonla-I plant for representative production of 1520 MTPD +/- 5%. The SSCR in project case is estimated for 1-months baseline production data.

Ammonia Production

Steam Cons to syn gas turbine-Baseline case

Steam Cons to syn gas turbine-Project case

SSCR-Baseline case

SSCR-Project case

T/Day

T/Day

T/Day

T of steam/ T of Amm

T of steam/ T of Amm

1479.700 6384 5102.4 4.31 3.45 1497.700 6451 5169.4 4.31 3.45

1519.400

6604 5322.4 4.35 3.50

1514.100 6524 5242.4 4.31 3.46 1513.200 6464 5182.4 4.27 3.42 1514.000 6542 5260.4 4.32 3.47 1520.400 6546 5264.4 4.31 3.46 1520.300 6646 5364.4 4.37 3.53 1520.300 6558 5276.4 4.31 3.47 1520.500 6667 5385.4 4.38 3.54 1486.800 6474 5192.4 4.35 3.49 1504.300 6570 5288.4 4.37 3.52 1542.400 6646 5364.4 4.31 3.48 1521.400 6482 5200.4 4.26 3.42 1520.300 6540 5258.4 4.30 3.46 1520.400 6540 5258.4 4.30 3.46 1520.200 6576 5294.4 4.33 3.48 1512.000 6504 5222.4 4.30 3.45 1518.200 6469 5187.4 4.26 3.42 1537.300 6596 5314.4 4.29 3.46 1502.200 6384 5102.4 4.25 3.40 1519.200 6478 5196.4 4.26 3.42 1497.000 6396 5114.4 4.27 3.42 1505.100 6384 5102.4 4.24 3.39 1531.500 6504 5222.4 4.25 3.41 1528.400 6528 5246.4 4.27 3.43 1506.600 6534 5252.4 4.34 3.49 1538.700 6663 5381.4 4.33 3.50 1530.400 6422 5140.4 4.20 3.36 1531.400 6456 5174.4 4.22 3.38 1481.700 6216 4934.4 4.20 3.33 1479.900 6240 4958.4 4.22 3.35 1462.600 6205 4923.4 4.24 3.37


1476.700 6264 4982.4 4.24 3.37 1476.800 6240 4958.4 4.23 3.36 1479.700 6288 5006.4 4.25 3.38 1509.744 4.287 3.437

SSCR of the Project case of Aonla-I = 3.437Ton of steam consumed/ Ton of Ammonia produced

Sample Calculations Aonla-II plant for representative production of 1520 MTPD +/- 5%. The SSCR in project case is estimated for 2-months baseline production data. Ammonia Prodn. Steam Cons.

in Syn gasTurbine-Baseline case

Steam Cons to syn gas turbine-Project case

SSCR -Baseline case

SSCR -Project case

T/Day T/Day T/Day T of steam / T of Amm

T of steam / T of Amm

1481 6601 5955.4 4.46 4.02 1522 6667 6021.4 4.38 3.96 1517 6660 6014.4 4.39 3.97 1510 6590 5944.4 4.36 3.94 1483 6428 5782.4 4.33 3.90 1520 6514 5868.4 4.29 3.86 1525 6392 5746.4 4.19 3.77 1525 6439 5793.4 4.22 3.80 1525 6293 5647.4 4.13 3.70 1525 6464 5818.4 4.24 3.82 1512 6379 5733.4 4.22 3.79 1520 6503 5857.4 4.28 3.85 1520 6508 5862.4 4.28 3.86 1515 6480 5834.4 4.28 3.85 1520 6532 5886.4 4.30 3.87 1520 6536 5890.4 4.30 3.88 1520 6503 5857.4 4.28 3.85 1497 6476 5830.4 4.33 3.89 1520 6549 5903.4 4.31 3.88 1567 6671 6025.4 4.26 3.84 1521 6552 5906.4 4.31 3.88 1540 6680 6034.4 4.34 3.92 1496 6530 5884.4 4.37 3.93 1502 6529 5883.4 4.35 3.92 1510 6577 5931.4 4.36 3.93 1507 6554 5908.4 4.35 3.92 1540 6684 6038.4 4.34 3.92 1532 6611 5965.4 4.32 3.89 1482 6442 5796.4 4.35 3.91 1540 6623 5977.4 4.30 3.88 1468 6386 5740.4 4.35 3.91 1458 6321 5675.4 4.34 3.89 1520 5896 5250.4 3.88 3.45 1486 6330 5684.4 4.26 3.83 1479 6256 5610.4 4.23 3.79 1486 6260 5614.4 4.21 3.78


1512 4.29 3.86

SSCR of the Project case of Aonla-II= 3.86 Ton of steam consumed / Ton of Ammonia produced

E.2. Estimated leakage:

There are no potential significant sources of leakages

E.3. The sum of E.1 and E.2 representing the project activity emissions: Total emissions reduction due to project activity = Ce1 Ce2 Te / day

E.4. Estimated anthropogenic emissions by sources of greenhouse gases of the baseline:

SSCR of the Baseline case of Aonla-I =4.287 Ton of steam consumed/ Ton of Ammonia produced SSCR of the Baseline case of Aonla-II = 4.29 Ton of steam consumed/ Ton of Ammonia produced Reduction in steam consumption due to project activity in Aonla-I = 1281.83 Ton of steam /day = 53.41 Ton of steam /hour Reduction in steam consumption due to project activity in Aonla-II = 645.74 Ton of steam /day = 26.91 Ton of steam /hour

Total Emission Reduction in Aonla Plant Total steam saved by the project activity = 80.32 TPH Reduction in steam produced in GTG-I/HRSG-I of Power plant = 21.2 TPH Reduction in steam produced in GTG-II/HRSG-II of Power plant = 26.8 TPH Reduction in steam produced in HRU of Aonla-II = 32.5 TPH GT/HRU OF Aonla NG consumption in GT/HRU (Baseline Scenario) = 9025 NM3/Hr NG consumption in GT/HRU (Project Scenario) = 6802 NM3/Hr NG saving in GT/HRU = 2223 NM3/Hr Natural Gas saving in GTG-I /HRSG-I of power plant due to reduction in steam generation NG consumption in GTG-I(Baseline Scenario) = 5553 NM3/Hr NG consumption in HRSG-I (Baseline Scenario) = 3423 NM3/Hr NG consumption in GTG-I(Project Scenario) = 5870 NM3/Hr NG consumption in HRSG-I (Project Scenario) = 1986 NM3/Hr Increase in NG consumption in GTG-I = 317 NM3/Hr NG saving in HRSG-I = 1437 NM3/Hr Natural Gas saving in GTG-II /HRSG-II of power plant due to reduction in steam generation NG consumption in GTG-II(Baseline Scenario) = 5487 NM3/Hr NG consumption in HRSG-II (Baseline Scenario) = 3637 NM3/Hr NG consumption in GTG-II(Project Scenario) = 5870 NM3/Hr NG consumption in HRSG-II (Project Scenario) = 1986 NM3/Hr Increase in NG consumption in GTG-II = 383 NM3/Hr NG saving in HRSG-II = 1651 NM3/Hr


Total Natural gas saved = 4611 NM3/Hr Lower Calorific value of natural gas = 8774 kcal/NM3 Emission factor for natural gas = 15.3 tC/TJ = 56.1 tCO2/TJ Total emission reduction = 75,138 tCO2/year

E.5. Difference between E.4 and E.3 representing the emission reductions of the project activity:

Net Reduction in SSCR of Aonla-I = 0.849 Ton of steam consumed/ Ton of Ammonia produced Net Reduction in SSCR of Aonla-II = 0..43 Ton of steam consumed / Ton of Ammonia produced

E.6. Table providing values obtained when applying formulae above:

Following table indicates the emission reductions in each year of credit period for all plants (Aonla-I, Aonla-II, Phulpur - I, Phulpur-II, Kalol).

Year Estimation of Project activity Emission reductions (tonnes of CO2 e)

Estimation of baseline Emission reductions (tonnes of CO2 e)

Estimation of leakage (tonnes of CO2 e)

Estimation of emission reductions (tonnes of CO2 e)

2006-2007 1805269

2067980

0 262711

2007-2008 1805269 2067980 0 262711 2008-2009 1805269 2067980 0 262711 2009-2010 1805269 2067980 0 262711 2010-2011 1805269 2067980 0 262711 2011-2012 1805269 2067980 0 262711 2012-2013 1805269 2067980 0 262711 2013-2014 1805269 2067980 0 262711 2014-2015 1805269 2067980 0 262711 2015-2016 1805269 2067980 0 262711

Total (tonnes of

CO2 e)

18052690 20679800 0 2627110


SECTION F. Environmental impacts F.1. Documentation on the analysis of the environmental impacts, including transboundary impacts: The Ministry of Environment and Forests (MoEF), Government of India, under the Environment Impact Assessment Notification vide S.O. 60(E) dated 27/01/94 has listed a set of industrial activities in Schedule I of the notification which for setting up new projects or modernization/ expansion will require environmental clearance and will have to conduct an Environment Impact Assessment (EIA) study. However, the project activity under consideration does not require any EIA to be conducted, as the activity is not included in Schedule I.

Article 12 of the Kyoto Protocol necessitates that a CDM project activity contributes to the sustainable development of the host country. Assessing the project activitys positive and negative impacts on the local environment and on society is thus a key element for each CDM project.

The CDM project activity developed by IFFCO ensures maximum global and local benefits with respect to certain environmental, social issues and contributes positively towards sustainable development. The GHG emission reductions (by reducing the burning of fossil fuels in boilers which leads to CO2 emissions) from project activity benefit the global environment. The local environment is benefited by resource conservation, employment generation, water conservation etc. IFFCO plants being an ISO 14001 organization has specialized environmental management systems, consistent evaluation of the impacts & key parameters have ensured that the plants meets the environmental targets .The recipient of many environmental excellence awards for its best environment management practices, IFFCO implements many environmentally benign projects. The project activity is one such voluntary measure, which has positive long-term environmental impact. The nature of the impacts that are evident during the operational phase are discussed in detail in the table given below. The environmental impact during the construction phase is regarded as temporary or short term and hence does not affect the environment significantly.


F.1. Documentation on the analysis of the environmental impacts, including transboundary impacts:

SL. NO. ENVIRONMENTAL IMPACTS & BENEFITS MITIGATION MEASURES / REMARKS

A CATEGORY: ENVIRONMENTAL NATURAL RESOURCE CONSERVATION

1

Fossil fuel conservation: The project activity reduces consumption of fossil fuels like Coal, Natural gas, Naphtha and LSHS used in the boilers. Coal/ Natural gas is a finite natural resource used as fuel to generate power and for production processes. Since the project activity reduces Coal, Natural gas, Naphtha & LSHS consumption it positively contributes towards conservation of Coal, Natural gas, Naphtha & LSHS and making them available for other important applications.

The project activity is a step towards fossil fuel conservation.

B CATEGORY: ENVIRONMENTAL AIR QUALITY

Reduction in steam con

reduction in steam consumption through revamping of ammonia plant-iffco plants

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