waste heat project at lsil pdd date 05 feb
TRANSCRIPT
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
1/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 1
CLEAN DEVELOPMENT MECHANISM
PROJECT DESIGN DOCUMENT FORM (CDM-PDD)
Version 03 - in effect as of: 28 July 2006
CONTENTS
A. General description of project activity
B. Application of a baseline and monitoring methodology
C. Duration of the project activity / crediting period
D. Environmental impacts
E. Stakeholders comments
Annexes
Annex 1: Contact information on participants in the project activity
Annex 2: Information regarding public funding
Annex 3: Baseline information
Annex 4: Monitoring plan
Appendix: Screen shots of excel sheets.
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
2/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 2
SECTION A. General description of project activity
A.1. Title of the project activity:>>
(a) Title of project activity: Waste Heat project at LSIL
(b) The current version number of document: 1
(c) The date of the document was completed: 05/02/2010
A.2. Description of the project activity:
>>
Description of project activity
(1) Purpose of the project activity
The purpose of project activity is to replace fossil fuel being used in reheating furnace (RHF), Continuoushot dip Galvanising Line (CGL) furnaces and Coiler furnace at Lloyds Steel Industries Limited (LSIL) by
waste coke oven gas. The details on waste coke oven gas provided in this section.
The Coke Oven Gas is sourced from joint facility of Uttam Galva Metallics Limited (UGML) and LSIL.
UGML is being put up with sole intention to supply LSIL their entire finished product Pig Iron. LSIL will
use the pig iron for manufacturing of their product steel. UGML is within the same industrial facility
adjoining to LSIL manufacturing area and creating joint facility as they use common utilities like water,
Nitrogen, Oxygen etc.
The agreement between UGML and LSIL for creating joint facility where in the entire product of UGML
is supplied to LSIL and having common utilities including use of coke oven gas by LSIL will be made
available to DOE during validation process.
(a) Scenario existing prior to start of the implementation of project activity.
LSIL is a steel manufacturing company equipped with DR-EAF-Continuous slab caster based steel
plant of capacity about 600000 tonnes/year of steel. The fossil fuels are presently being fired in the
following furnaces.
(a.1) The Reheating Furnace for heating of ladle, turn dish etc uses Furnace oil for firing.
(a.2) Continuous hot dip galvanising line (CGL) furnaces
NON OX furnace is direct LPG fired
RTF furnace is indirect LPG fired
(a.3) Stecker Mill Coiler furnaceFuel fired is LPG
The project activity is to replace the fossil fuel being presently used with waste coke oven gas.
(b) The project scenario.
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
3/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 3
(b.1) LSIL proposes to replace this Reheating furnace (RHF) of capacity of 150 tonnes/hr which uses
furnace oil as fuel with new Reheating furnace of capacity 300 tonnes/hr which can use Coke Oven Gas
as fuel. The proposed new facility will result in increased plant of capacity of 1000000 tonnes/year of
steel.
(b.2) Continuous hot dip galvanising (CGL) and coiler furnaces which presently use LPG as fuel will
be modified to use coke oven gas instead of LPG. The modification will involve changing burners and
control system including piping of coke oven gas.
LSIL proposes to use only waste coke oven gas in the furnaces thus replacing the furnace oil/LPG
consumption.
The waste coke oven gas will be sourced from UGML who are putting 450 m3 blast furnace to produce
472000 tonnes/month of hot metal and 200000 tonnes/month of metallurgical coke. The coke oven gas is
obtained as by product during manufacturing of metallurgical coke which is used in blast furnace for
making hot metal.
UGML do not have any use for excess coke oven gas after using the coke oven gas in the blast furnace
and would be letting out into atmosphere after burning.
LSIL has entered into agreement with UGML to create the joint facility where LSIL will source the
entire finished product Pig Iron of UGML and common utilities are being used. LSIL will use the waste
coke oven gas which has the following composition and calorific value as delivered to LSIL at receiving
point by UGML. The agreement will be made available to DOE during validation.
Flow rate 12250 Nm3/h
Temperature 100 deg C
Pressure 0.95 kg/cm2
Composition CO 7.5 -9 % CO2 2.0-3.0% H2 55-57 % N2 2-6% CH4 24-26% CnHn 5%Calorific value 16720 kJ/Nm3
This coke oven gas is fired instead of furnace oil in reheating furnace and coke oven gas will be fired
instead of LPG in Coiler furnace and CGL furnaces.
Scope of activities include the following installations
1 New reheating furnace capable of using coke oven gas for firing.
2 Modification of Coiler furnace for using coke oven gas instead of LPG.
3 Modification of CGL furnaces for using coke oven gas instead of LPG.
4 Pipe line to carry gas from gas holder to utility points of approximate length of 3 km.
Current status of project activity
1 The new reheating furnace capable of using coke oven gas is received and being installed.
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
4/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 4
2 Piping work from UGML to LSIL utility points will be completed by March 2010.
3 Commissioning expected by April-June 2010 after the continuous availability of coke oven gas.
(c)Base line Scenario
The baseline is the same scenario existing prior to the start of implementation of project activity.
The base line is fossil fuel i.e. Furnace oil for RHF and LPG for Coiler/CGL furnaces are being fired inpre project scenario and the same scenario of using fossil fuel for firing in furnaces would have been
continued in the absence of project activity.
(2) How the project activity reduces GHG emissions
The project activity reduces CO2 emissions from replacement of fossil fuels used in the furnaces by waste
coke oven gas which would have been otherwise flared by UGML before letting into atmosphere in theabsence of the project activity and in the project activity LSIL uses this waste coke oven gas in theirfurnaces to provide required heat which would have been otherwise provided by firing fossil fuels like
furnace oil in reheating furnace and LPG in coiler and CGL furnaces. CO2 emission due to burning of
fossil fuel is avoided and thus achieves reduction in CO2 emissions.
In B.3 section it is explained that CO2 emissions due to base line fossil fuel are mainly considered andCH4 and N2O are not considered to be on conservative side in calculating baseline emissions. In A.4.3
It is also explained that the Furnace oil for RHF and LPG for Coiler/CGL furnaces are being fired in pre
project scenario and the same are being replaced by WECM coke oven gas.
.The total CO2 emission reduction for the entire crediting period of 10 years has been calculated as
1170800 tonne CO2 equivalent.
(3)The project activity will lead to sustainable development and promote sustainable Industrial growth by
conserving natural resources and preventing the thermal pollution even though no such statutory
requirement exists.
Social benefit to state
The project activity increases the employment within LSIL for skilled manpower and Professionals.
Skilled and unskilled labour will gain temporary employment while executing the project.
India is very deficient in crude oil and major portion of its oil requirements are met by imports. Hence
saving in the use of fossil fuel like furnace oil and LPG enables the scarce petroleum products to be made
available to the society for some other uses.
Economical Benefits to State
The project involves investment of around 600 million rupees and will involve more than 400 million
rupees capital equipment purchase. Engineering industry will benefit and provide employment
opportunity for professionals, skilled and unskilled people.
The state will generate revenue out of the manufacturing activities supported by the energy generation
and due to purchase of equipment for execution of project by way of Sales Tax; Excise Duty; Entry Tax
etc.
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
5/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 5
India is facing shortage of oil leading to import of major requirement of its oil needs which consumes
valuable foreign exchange leading to petroleum products starvation and hence the project activity enables
the country to bridge this gap by reduction in demand on petroleum products by company and save
valuable foreign exchange.
Environmental Benefit
The Project activity is waste heat recovery based Project by utilizing waste heat from coke oven gases
coming from process and thus effectively saving environment of thermal pollution. In the absence of
project activity coke oven gases would have been flared by UGML leading to thermal pollution. The
project activity displaces heat from fossil fuel and hence reduces CO2 emission
A.3. Project participants:
>>
Name of the Party Involved (host)
indicates Host party)
Private and/or Public entity (ies)
Project Participant
( as applicable)
Kindly indicate if the party
involved wishes to be
Considered as projectparticipant
(Yes/ No)
India (host)
Ministry of Environment and Forest Lloyds Steel Industries Limited
(Private Entity).
No
A.4. Technical description of the project activity:
A.4.1. Location of the project activity:
>>
India
A.4.1.1. Host Party(ies):>>
India
A.4.1.2. Region/State/Province etc.:
>>
Maharashtra
A.4.1.3. City/Town/Community etc.:
>>
Bhugano, Taluk Wardha.
A.4.1.4. Details of physical location, including information allowing the
unique identification of this project activity (maximum one page):
>>
Physical location
The project activity located at Lloyds Steel Industries Limited, Bhugano, Wardha Taluka & District,
Maharashtra. Latitude 200 42 4.45, Longitude 780 37 15.24. Nearest Railway station is Bhugano.
The plant is located approximately at 6 km from Wardha on Bhugano link road.
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
6/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 6
A.4.2. Category(ies) of project activity:
>>
The project activity may be principally categorised in category 04 Manufacturing Industries as per
Scope of Projects activities enlisted in the list of sectoral scopes and approved base line and monitoring
methodologies on the website for accreditation of Designated operational Entities.
The CDM PDD is based on approved methodology ACM0012 version 03.2 and Sectoral scope; 01 & 04EB 51 Consolidated baseline methodology for GHG emission reductions from waste energy recovery
projects
A.4.3. Technology to be employed by the project activity:
1) Description of how the project is environmentally safe and sound technology, and know how transfer.
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
7/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 7
The Reheating Furnace is being imported from Jiangsu Sky run Corporation China which is of proven
technology and all the technical details for operation of the equipment safely are provided by Jiangsu Sky
run Corporation. The modifications for Continuous hot dip galvanising line (CGL) furnaces and Coiler
furnace are being carried out by LSIL with new burners from indigenous suppliers. The technology is
proven. The installation is under CCOE and hence all approvals will be got from CCOE which ensures
that the installation is safe and of sound technology.
2) Purpose of project activity
The purpose of project activity is to replace fossil fuel being used in reheating furnace (RHF),
Continuous hot dip Galvanising Line (CGL) furnaces and Coiler furnace at Lloyds Steel Industries
Limited (LSIL) by waste coke oven gas.
LSIL proposes to use only waste coke oven gas in the furnaces thus replacing the furnace oil/LPG
consumption.
The waste coke oven gas will be sourced from UGML who are putting 450 m3 blast furnace to produce
472000 tonnes/month of hot metal and 200000 tonnes/month of metallurgical coke. The coke oven gas is
obtained as by product during manufacturing of metallurgical coke which is used in blast furnace for
making hot metal.
UGML do not have any use for excess coke oven gas after using the coke oven gas in the plant and
would be letting out into atmosphere after flaring.
LSIL has entered into agreement with UGML to create the joint facility where LSIL will source the
entire finished product Pig Iron of UGML and common utilities are being used. LSIL will use the waste
coke oven gas which has the following composition and calorific value as delivered to LSIL at receiving
point by UGML. The agreement will be made available to DOE during validation.
Flow rate 12250 Nm3/h
Temperature 100 deg C
Pressure 0.95 kg/cm2
Composition CO 7.5 -9 % CO2 2.0-3.0% H2 55-57 % N2 2-6% CH4 24-26% CnHn 5%
Calorific value 16720 kJ/Nm3
This coke oven gas is fired instead of furnace oil in reheating furnace and coke oven gas will be fired
instead of LPG in Coiler furnace and CGL furnaces.
(a) The scenario existing before project activity.
In the present system of steel manufacturing in LSIL is based on DR-EAF-Continuous slab based steel
plant. The rolling and processing lines include steckel mill, cold rolling mill and galvanising lines. The
plant is operating with DRI and scrap as major metallic inputs to the EAF.
The following furnaces are existing presently using fossil fuel
(a.1) The Reheating Furnace (RHF) for heating of ladle, turn dish etc uses Furnace oil for firing.
Capacity: 600000 tonnes/year
Make: MDH
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
8/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 8
Fuel used: furnace oil
SpecificFuel consumption: 1380 MJ/tonne based on 3 years averageYear of installation: 1994
(a.2) Continuous hot dip galvanising line (CGL) furnaces
NON OX furnace is direct LPG fired
RTF furnace is indirect LPG fired
Capacity: 250000 tonnes/year
Fuel used: LPG
Specific Fuel consumption: 1210 MJ/tonne based on 3 year average.
Year of installation: 1995
(a.3) Coiler furnace
Fuel fired is LPG
Capacity: 400000 tonnes/year
Make: MDHFuel used: LPG
Specific Fuel consumption: 254 MJ/tonne based on 3 years average.
Year of installation: 1994
(b) The project scenario
(b.1) LSIL proposes to replace this Reheating furnace (RHF) of capacity of 150 tonnes/hr with new
Reheating furnace of capacity of 300 tonnes/hr which can use both Furnace oil/Coke Oven Gas. The
proposed facility will result in increased plant of capacity of 100000 tonnes/year of steel from present
600000 tonnes/year.
(b.2) Existing Continuous hot dip galvanising (CGL) and coiler furnaces will be modified to use coke
oven gas instead of LPG. The capacity of each furnace remains unchanged.
The Coke Oven gas which is a by product during manufacturing of metallurgical coke from coal which is
used in blast furnace to produce pig iron and excess coke oven gas after the use in coke ovens is a waste
gas which has to be let out to atmosphere and the waste coke oven gas has the following composition and
flow rate as delivered to receiving point of LSIL by UGML
Flow rate 12250 Nm3/h
Temperature 100 deg C
Pressure 0.95 kg/cm2
Composition CO 7.5 -9 % CO2 2.0-3.0% H2 55-57 % N2 2-6% CH4 24-26% CnHn 5%
Calorific value 16720 kJ/Nm3
UGML does not have any use for this excess coke oven gas in their process after their requirements aremet in coke oven batteries and have to let out into atmosphere after burning in the absence of project
activity.
The project activity will comprise the following scope of activities
Main equipment
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
9/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 9
1 The pipe line from this gas tank to utility points of approximately 3 km.
2 The new reheating furnace.
The new reheating furnace (RHF) has the following specifications:
Make: Jiangsu Sky run Corporation
Capacity: 1 Million tones/year
Charging: cold/hotFuel used: Coke Oven Gas
Specific Fuel consumption: 1.3 GJ/tonne based on manufacturer specifications for coke oven gas
1.35 GJ/tonne for furnace oil based on manufacturer specification for
Furnace oil.Fuel consumed = 9000 Nm3/hr
3 Coiler furnace and CGL furnaces modification in burner system to make them suitable for coke ovengas firing. Make of burners is M/S Continental Thermal Engineers, Chennai, India.
Coiler furnace:
Capacity: 400000 tonnes/year
Fuel used: Coke Oven Gas
Specific Fuel consumption: 1210 MJ/tonne based on 3 year average
Fuel Consumption: 500 Nm3/hr of coke oven gas.
CGL furnaces
Capacity: 250000 tonnes/year
Fuel used: Coke Oven Gas
Fuel Consumption: 2550 Nm3/hr of coke oven gas.
The fuel consumption being monitored by electronic meters.
(c) Base line Scenario
The baseline is the same scenario existing prior to the start of implementation of project activity.
The base line is fossil fuel i.e. Furnace oil for RHF and LPG for Coiler/CGL are being been fired in preproject scenario and the same scenario of using fossil fuel for firing in furnaces would have been
continued in the absence of project activity as it is business as usual scenario.
c. a) Age and average life time of equipment
LSIL is a steel manufacturing company equipped with DR-EAF-Continuous slab caster based steel plantof capacity about 600000 tonnes/year of steel. The fossil fuels are presently being fired in the following
furnaces.
1 The Reheating Furnace (RHF) for heating of ladle, turn dish etc uses Furnace oil for firing.
Capacity: 600000 tonnes/year
2 Continuous hot dip galvanising line (CGL) furnaces fuel used is LPG. Capacity 250000 tonnes/year
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
10/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 10
3 Coiler furnace, Fuel fired is LPG, Capacity: 400000 tonnes/year
Fuel consumption and production from furnace are monitored.
Normal life of steel mill equipment is 30 years as observed in industry. Reheating furnace is new. CGL
furnace and coiler furnace are approximately 16 years in operation. Expected balance life for these
furnaces is about 14 years.
c.b) how emission reductions are achieved.
The project activity reduces CO2 emissions from replacement of fossil fuels used in the furnaces by
Waste coke oven gas would have been otherwise flared by UGML before letting into atmosphere in the
absence of the project activity and in the project activity LSIL uses this waste coke oven gas in their
furnaces to provide required heat which would have been otherwise provided by firing fossil fuels like
furnace oil in reheating furnace and LPG in coiler and CGL furnaces. CO2 emission due to burning of
fossil fuel is avoided and thus achieves reduction in CO2 emissions.
c.c) Heat energy generated in the project activity.
The Coke Oven gas which is a by product during manufacturing of metallurgical coke from coal which is
used in blast furnace to produce pig iron and excess coke oven gas after the use in coke ovens is a waste
gas which has to be let out to atmosphere and the waste coke oven gas has the following composition and
flow rate as delivered to receiving point of LSIL by UGML
Flow rate 12250 Nm3/h
Temperature 100 deg C
Pressure 0.95 kg/cm2
Composition CO 7.5 -9 % CO2 2.0-3.0% H2 55-57 % N2 2-6% CH4 24-26% CnHn 5%
Calorific value 16720 kJ/Nm3
UGML does not have any use for this excess coke oven gas in their process after their requirements are
met in coke oven batteries and have to let out into atmosphere after burning in the absence of project
activity.
The heat generated using coke oven gas is calculated as follows:
Heat from coke oven gas: 12250 x 4000 x 4.18 = 2.0482 x 10 8 kilojoules/hr
Heat produced by coke oven gas /year = 17942.2 x 10 8 kilojoules/year.
The use in furnaces expected as follows:
S No Description ReheatingFurnace
CGLfurnaces
CoilerFurnace
Referencedocument
1 Production
capacity
tonnes/year
1000000 250000 400000 Manufacturer
specifications
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
11/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 11
2 Base line
fuel
Furnace
oil
LPG LPG
3 Specificheat
requirement
MJ/tonne
1350 1210 254 Manufacturerspecification
for RHF and
for CGL/Coiler
furnaces
3 years average
4 Heat
provided by
coke oven
gas MJ
13.5 X 108
3.025X
108
1.016X
108
5 HG j y 17.541 X 108MJ/Year
A.4.4. Estimated amount of emission reductions over the chosen crediting period:Years Annual estimation of emission
reductions in tonnes of CO2eq
2010 117028
2011 117028
2012 117028
2013 117028
2014 117028
2015 117028
2016 117028
2017 117028
2018 117028
2019 117028Total estimated reductions
(tonnes CO2 e)1170280
Total number of crediting years 10
Annual average over the
crediting period of estimated
reductions (tonnes CO2 e)
117028
A.4.5. Public funding of the project activity:
>> No public funding from parties included in Annex-I is available for the project activity. No ODA
funds are used in project activity.
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
12/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 12
SECTION B. Application of a baseline and monitoring methodology
B.1. Title and reference of the approved baseline and monitoring methodology applied to the
project activity:
>>
Title of approved methodology: Consolidated baseline methodology for GHG emission reduction from
energy recovery projects
Methodology No &Version : ACM 0012, Version 03.2, Sectoral Scope: 1&4 EB 51.
Other methodologies ACM 0012
draws upon : 1 Tool for the demonstration and assessment of additionality
(Version 05.2) EB 39.
B.2. Justification of the choice of the methodology and why it is applicable to the project
activity:
>>
The methodology sets out two types of project activity.
Type 1 All the waste energy in identified WECM stream, that will be utilized in the project activity, is, or
would be flared or released to atmosphere in the absence of project activity at the existing or new facility.
The waste energy is an energy source for
. Cogeneration or
. Generation of electricity or
. Direct use as process heat source or
.For generation of heat in element process (e.g. steam, hot water, hot oil, hot air) or
. For generation of mechanical energy
The project activity is for direct use as process heat source in furnaces and hence falls in type1 category
direct use as process heat source. The identified WECM is excess waste coke oven gas.
The methodology lists out following applicable conditions
Applicable conditions of Methodology How the project activity meets the conditionsIf project activity is based on use of waste pressure
to generate electricity, electricity generated using
waste gas pressure should be measurable
Not applicable as project activity is for direct use as
process heat source.
Energy generated in the project activity may be
used within the industrial facility or exported
outside the industrial facility
The project activity generates heat for use in
furnaces from WECM and the generated heat is
used within the industrial facility. UGML has no
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
13/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 13
use for excess WECM after using in coke oven
batteries, WECM is being sourced to LSIL as an
energy source as per agreement to form jointindustrial facility.
The electricity generated in the project activity may
be exported to grid
Not applicable as the project activity is for direct
use of WECM as process heat source
Energy in the project activity can be generated by
the owner of the industrial facility producing waste
gas/heat or by a third party (e.g.ESCO) within the
industrial facility.
Energy in the form of heat is being generated and
used by LSIL within the same industrial facility.
UGML has no use for excess WECM after using in
coke oven batteries, WECM is being sourced to
LSIL as an energy source as per agreement to form
joint industrial facility.
Regulations do not constrain the industrial facility
generating waste energy from using the fossil fuels
being used prior to the implementation of project
activity
Regulations do not constrain UGML generating
waste energy from using the fossil fuels being used
prior to the implementation of project activity.
The methodology covers both new and existing
facilities. For existing facilities, the methodology
applies to existing capacity, as well as to planned
increases in capacity during the crediting period. Ifcapacity expansion is planned, the added capacity
must be treated as a new facility.
LSIL is existing plant. The production capacity of
RHF is being expanded to 1 million tonne of
steel/year from 0.6 million tonne of steel/year
before the project activity by replacing the old RHFwhich uses fossil fuel with new Chinese make
RHF. Hence it is treated as new facility. CGL
furnaces and coiler furnace are being modified and
hence they are existing facility.
The emission reductions are claimed by generator
of energy using waste gas/heat
The CDM credits will be claimed only by LSIL
who generate process heat using waste coke oven
gas.
In case the energy is exported to other facilities anagreement is signed by the energy generation plant
with recipient plants that emission reductions
would not be claimed by recipient plants for using
a zero emission source
Not applicable as process heat generated will beused for captive consumption only.
For those facilities and recipients included in the
project boundary, which prior to the
implementation of project activity generated energy
on site, the credits can be claimed for a minimum
of the following periods
. The remaining life time of equipments currently
being used.
. Credit period
LSIL is replacing the present RHF with new RHF
with increased capacity and hence can be treated as
new facility.
Normal life of steel mill equipment is 30 years as
observed in industry. CGL furnace and coilerfurnace are approximately 16 years in operation.
Expected balance life for these furnaces is about 14
years.
The PDD has been developed for fixed crediting
period of ten years.
Waste gas that is released under abnormal
operation of the plant shall not be accounted.
The PDD does not take into consideration any
waste gas released under abnormal conditions
Cogeneration is from combined heat and power and
not Combined cycle mode of electricity generation
The project activity is for process heat generation
only.
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
14/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 14
The waste energy utilized in project activity was
flared or released into the atmosphere in the
absence of project activity. This shall be proven byeither one of the following
1 By direct measurements of energy content
2 Energy balance
3 Energy bills
4 Process plant manufacturers original
specifications
5 On site checks by DOE
Coke oven Gas used in project activity is surplus
after providing for internal use of UGML. UGML
has no further use in the process and would haveflared through chimney in the absence of the
project activity. The same can be proven from site
checks by DOE.
The project activity meets the applicability conditions set out in approved methodology
The other conditions of methodology are met by the following steps
1. The base line calculations for CO2 emission reduction are in line with approved methodology andare calculated using CEA data provided in CO2 data base Version 5.0 November 2009 available in CEA
web site www.cea.nic.in.
2. By successful operation of project activity, the project activity will be able to displace/ substitute
electricity of grid with an emission reduction of 117028 tCO2/annum (Ref. Section- B 6.3).
3. The project activity adds no additional GHG emission.
Hence it is concluded that the project activity meets the conditions set out in selected approved
methodology.
B.3. Description of the sources and gases included in the project boundary:
>>
In line with methodology, the project activity is for the recovery of waste heat from coke oven gases for
generation of process heat for direct use as heat in furnaces.
In the base line scenario, the heat would have other wise been generated by fossil fuel like furnace oil and
LPG.
In line with methodology the project boundary comprises of the RHF, CGL and Coiler Furnaces, piping
for coke oven gas
As per the approved methodology the geographical extent project boundary shall include the following:
1 The industrial facility where waste energy is generated (coke oven gas), that is, UGML
Project activity has no control over waste gas quantity and quality like flow and temperature. , Gas holder
is provided by UGML for temporary storage.
2 The facility where process heat in element process/steam/electricity are generated (generator of process
heat/steam/electricity). Equipment providing auxiliary heat to the waste heat recovery process shall be
included within the project boundary:
That is the actual project activity comprises of burning coke oven gas in furnaces where project
participant has full Control.
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
15/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 15
3 The facility/s where the process heat in element process/steam/electricity is used (the recipient plant(s)
and /or grid where electricity is exported. Not applicable as the project activity is for providing in house
requirement of direct heat to furnaces.
Schematic for project boundary is as below.
316720 Kj/Nm
100C
20.95 kg/Cm
Approximate pipe line : 3 km
312250 Nm /hr
PROJECT ACTIVITY BOUNDARY
LSIL
POINT OFRECEIVING
3
RHF
9000 m /hr
3500 m /hr
32550 m /hr
COILER FURNACE
CGL 1 & 2
Table 1: Summary of gases and sources included in the project boundary, justification explanation where
gases and sources are not included.
Source Gas Included? Justification /
ExplanationCO2 Excluded Not
applicable.
CH4 Excluded Not
applicable.
Electricity generation, grid or captive source.
N2O Excluded Not
applicable.
CO2 Included Main
emission
source
CH4 Excluded Excluded for
simplification.
This is
conservative.
Fossil fuel consumption in furnace for thermal energy
N2O Excluded Excluded for
simplification.
This is
conservative.
Baseline
Fossil fuel consumption in cogeneration plantCO2 Excluded Not
applicable.
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
16/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 16
CH4 Excluded Not
applicable.
N2O Excluded Notapplicable.
CO2 Excluded Not
applicable.
CH4 Excluded Not
applicable.
Base line emissions from generation of steam used in the flaring
if any.
N2O Excluded Not
applicable.
CO2 Excluded Not
applicable as
No extra fuel
or support
fossil fuel
is fired.
Supplemental fossil fuel consumption
at project plant
N2O Excluded Not
applicable
CO2 Excluded Not
applicable as
No
supplemental
electricity
consumed
CH4 Excluded Not
applicable
Supplemental electricity consumption
at project plant
N2O Excluded Not
applicable
CO2 Excluded Not
applicable as
No captive
electricity is
consumed
CH4 Excluded Not
applicable
Electricity import to replace captive electricity which was generated
gas in absence of project activity
N2O Excluded Not
applicable
CO2 Excluded Not applicable
as waste gas
cleaning not
requiredCH4 Excluded Not applicable
ProjectActivity
Project emissions from cleaning of gas
N2O Excluded Not applicab
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
17/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 17
B.4. Description of how the baseline scenario is identified and description of the identified
baseline scenario:
>> Identification of baseline scenario.
The baseline scenario is identified as the most plausible scenario among all realistic and credible
alternatives.
Realistic and credible alternatives should be determined for:
. Waste energy use in the absence of the project activity.
. Heat generation in the absence of the project activity.
While determining the baseline scenario the project participant shall identify the realistic and
credible alternatives to the project activity, which would provide output equivalent to combined output of
all the sub systems in the project scenario. Therefore the alternatives should provide the same heat output
as in the project activity and should include the alternate use of the waste gas heat utilised in the projectactivity.
The project Participant shall exclude baseline options that:
. do not comply with legal or regulatory requirements or
. depend on fuels that are not available on the site.
The project participant is required to provide evidence and supporting documents to exclude
baseline options that meet the above mentioned criteria. The methodology provides 4 steps to
to determine baseline.
Step 1: Define the most possible baseline scenario for the generation of heat and electricity using
baseline options and combinations.
The baseline candidates should be considered for following facilities.. For the industrial facility where the waste energy (coke oven gas) is generated UGML and
. For the facility where the energy is produced and consumed i.e.LSIL; and
Hence Baseline study has been carried for project proponent LSIL and UGML.
Baseline
options
Realistic and credible
alternative
LSIL UGML
W1 WECM is directly vented to
atmosphere without
incineration
Not applicable. Not applicable.
W2 WECM is released after
incineration or waste heat isreleased to atmosphere or
Waste gas pressure energy is
not utilized.
Not applicable. Applicable. UGML who
generate waste gaseswould have flared the
waste gases before
releasing to atmosphere in
the absence of project
activity as UGML does
not have any use of the
excess waste gases.
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
18/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 18
W3 Waste energy is sold as an
energy source.
Not applicable. Not applicable. UGML
has no use for excess
WECM after using incoke oven batteries,
WECM is being sourced
to LSIL as an energy
source as per agreement to
form joint industrial
facility.
W4 Waste energy is used for
meeting energy demand.
Not applicable as WECM
is not generated by LSIL.
Not applicable.
UGML does not have any
further use of WECM and
UGML will send waste
gases to atmosphere after
flaring in the absence ofproject activity.
W5 A portion of waste gas
produced at the facility is
captured and used for captive
electricity generation while
the rest of the waste gas
produced at the facility is
vented/flared.
Not applicable. Not applicable as no
electricity is generated
using waste gas.
UGML which generates
WECM uses part of
WECM to generate heat
in their facility. UGML
would have flared WECM
in the absence of project
activity at LSIL.
Surplus WECM is
sourced to LSIL which isa part of joint industrial
facility as energy i.e heat
source for their furnaces
in the process. LSIL is the
project proponent as LSIL
is sourcing and using
WECM to generate heat
in the furnaces in steel
making process as per
agreement to form joint
industrial facility.
W6 All the waste gas produced at
the industrial facility is
captured and used for export
electricity generation
Not applicable. Not applicable as no
electricity is generated
from waste gas.
UGML which generates
WECM uses part of
WECM to generate heat
in their facility. UGML
would have flared WECM
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
19/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 19
in the absence of project
activity at LSIL.
Surplus WECM issourced to LSIL which is
a part of joint industrial
facility as energy i.e heat
source for their furnaces
in the process. LSIL is the
project proponent as LSIL
is sourcing and using
WECM to generate heat
in the furnaces in steel
making process.
H1 Proposed project activity not
undertaken as a CDM
activity.
LSIL has incurred losses
when the steel industry
faced acute recession afew years back. The
company has accumulated
losses and is under BIFR
(Board of Industrial and
Financial Restructure)
with debt restructuring of
liabilities. Hence the
company faces the
financial barrier due to the
non availability of fresh
funds to carry out
expansion activities both
from financial institutesand equity market.
Hence LSIL promoters
had to arrange privately
raised loans to undertake
the project activity. These
loans carry higher rate of
interests compared to
institutional loans. In the
absence of CDM benefits
the project activity could
not be implemented as
CDM benefits enable the
promoters to convinceprivate lenders on
viability of the project
activity.
Not applicable as UGML
does not have any further
use of WECM.
H2 On site or off-site
existing/new fossil fuel fired
cogeneration plant
Not applicable as
presently only fossil fuel
is being used currently to
Not applicable.
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
20/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 20
provide heat in the
process. LSIL does not
have any cogenerationplant based on fossil fuel.
H3 On site or off-site
existing/new renewable
energy based cogeneration
plant
Not applicable as LSIL do
not have any cogeneration
plant based renewable
energy.
Not applicable.
H4 An existing or new fossil fuel
based furnaces.
Applicable. Presently
only fossil fuel is used to
provide heat in the
process. LSIL will
continue to use fossil fuel
in the absence of project
activity.
Not applicable.
H5 An existing or newrenewable or other waste
energy based existing
furnaces
Not applicable aspresently only fossil fuel
is used to provide heat in
the process.
Not applicable.
H6 Any other source such as
district heat
No such heat source is
available
Not applicable.
H7 Other heat generation
technologies (e.g heat pumps
or solar energy)
No such alternative source
is available or feasible as
the steel making process is
energy intensive and direct
use of large amount of heat
is required in concentrated
fashion.
Not applicable.
H8 Steam/process heatgeneration from waste
energy, but with lower
efficiency.
Not applicable as WECMavailable has to be used
with maximum efficiency
as WECM quantity is
limited.
Not applicable.
H9 Cogeneration with waste
energy but a lower
efficiency.
Not applicable as the
project activity is not for
cogeneration.
Not applicable.
Step 2: Identify the fuel for the baseline choice of energy source taking into account the national
and/or sectoral policies as applicable
The base line is fossil fuel (Furnace oil for RHF furnace and LPG for Coiler and CGL furnaces) as the
fossil fuel being used as energy source from the inception of the manufacturing facilities. There is no
shortage of furnace oil or LPG as the same are available on demand from the refineries. The refineries use
both indigenous and imported crude oil to generate the fossil fuels.
STEP 3:
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
21/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 21
Step 2 and/or Step 3 of the latest approved version of the Tool for the demonstration and
assessment of additionality shall be usedto identify the most plausible baseline scenarios by
eliminating non feasible options
Section B.5 covers the stepwise demonstration of additionality as per the Tool for the demonstration
and assessment of additionality version 05.2 EB 39 . We have demonstrated the additionality based on
step 3.
STEP 4: If more than one credible and plausible alternative scenario remain, the alternative with
the lowest base line emissions shall be considered as the most likely baseline scenario.
Project scenario: Generation of heat
Scenario Baseline option for LSIL
Waste gas Heat
energy1 W2 H4
In step1 all the credible alternatives for waste gas and waste heat were considered. In the absence of
project activity UGML would have vented through chimney the excess waste coke oven gas as UGML do
not have further requirements in the process (W2) and LSIL would continue to use fossil fuel for
providing heat in their furnaces (H4).
Base line
The baseline is the same scenario existing prior to the start of implementation of project activity.
The base line is fossil fuel i.e. Furnace oil for RHF and LPG for Coiler/CGL furnaces are being been fired
in pre project scenario and the same scenario of using fossil fuel for firing in furnaces would have been
continued if waste coke oven gas is not available.
The project activity reduces CO2emissions from replacement of fossil fuels used in the furnaces by waste
coke oven gas which would have been otherwise burnt by UGML before letting into atmosphere in the
absence of the project activity and in the project activity LSIL uses this waste coke oven gas in their
furnaces to provide required heat which would have been otherwise provided by firing fossil fuels likefurnace oil in reheating furnace and LPG in coiler and CGL furnaces. CO2 emission due to burning of
fossil fuel is avoided and thus achieves reduction in GHG emissions.
B.5. 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 (assessment
and demonstration of additionality):It is required to describe how the anthropogenic emissions of GHG by sources are reduced below those
that would have occurred in the absence of registered CDM activity. The proposed CDM project activity
is designed to generate heat from the waste coke oven gases emitting out of an established industrial
manufacturing process i.e. coke oven complex which would have been let into atmosphere after burning
in the absence of project activity . The reduction in GHG emissions due to burning of fossil fuel is
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
22/68
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
23/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 23
3 He further informed the board that to avail such CDM benefits it is desirable to apply to appropriate
authorities for CDM registration and CDM benefits would make project viable.
The extracts of the board meeting will be made available to DOE.
The tool for the demonstration and assessment of additionality version 05.2 outlines four steps to
demonstrate additionality.
Time line of activities
Time line of activities of Project Activity Time line of activities for CDM registration
Board Resolution 25/10/2008 Board resolution 25/10/2008
Agreement with
UGML 15/01/2009
Notification regarding
CDM project activity
to UNFCCC
21/11/2009
Starting of pipe line
laying work
01/11/2009 Appointment of DOE
for validation
12/01/2009
Expected receipt ofReheating Furnace
25/12/2009 Submission of PDD toDOE for pre
validation check
10/04/2009
Expected date of
completion of piping
and storage tank work
28/02/2010 DOE Comments
receipt after pre
validation check
10/06/2009
Installation of
reheating furnace
25/03/2010 DOE confirmation
that PDD can be
resubmitted
10/01/2009
Modification of Coiler
and CGL furnaces
25/03/2010 PDD resubmission
To DOE for
validation
23/01/2009
Expected date of
commissioning
14/04/2010 to
15/6/2010.
STEP 1 - Identification of the alternatives to the project activity considered with current laws
and regulations
Sub-Step 1.a Define alternatives to the project activity:
Identify realistic and credible alternatives
Proposed activity not undertaken as CDM
project activity.
All other plausible and credible alternative
continuation of current situation
In section B.4 all the possible alternatives have been
discussed for the alternatives recognised were:
1 The methodology lists six realistic and credible
alternatives for waste gas and the alternative to vent
to atmosphere the waste coke oven gases afterflaring was the only option in the absence of project
activity for UGML.
2 The methodology lists nine realistic and credible
alternatives for heat generation. The only credible
alternative in base line is using fossil fuel which is
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
24/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 24
the continuation of current situation in the absence
of project activity for LSIL.
Step 1.b Consistency with mandatory laws and regulations:
1 Alternative shall be in compliance with
legal and regularly requirements.
All the alternatives are in compliance with current
legal and regulatory requirements.
Additionality tool provides the option of selecting Step 2 or Step 3. LSIL select step 3 and hence proceed
to Step 3.
STEP 3 Barrier analysis to show additionality.
Sub-Step 3.a Identification of barriers that would prevent the implementation of the type of the
project activity.
Investmentbarriers
3.a.1
Debt funding is
not available for
this type of
proposed project
activity.
LSIL has incurred losses when the steel industry faced acute recession a
few years back. The company has accumulated losses and is under BIFR
(Board for Industrial and Financial Reconstruction, Government of India)
with debt restructuring of liabilities. Hence the company faces the financial
barrier due to the non availability of fresh funds to carry out expansion
activities both from financial institutes and equity market. The companys
finance demands go through close scrutiny of the concerned financial
institutions and have not been able to secure institutional loans for project
activity. The details of company financial are as follows
Details of company are as follows
Nature of company:
LSIL is a public limited having two divisions. Steel division manufactures
steel products in Wardha plant .Engineering division manufactures
specialised equipment for chemical,petrochemical,steel,defence ,power
plant etc
Financials of company
(Rs in Millions)
2008-09 2007-08
Sales 28415.644 24773.629
Profit (loss) after tax for the year (164.8545) (46.8921)Profit(loss) brought from previous
year (12631.012 ) ( 12162.091)
payment made as per
debt restructuring 461.4 826.7
distribution of share holding
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
25/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 25
promoters 18.51 20.43
financial institutions/Banks 12.83 3.76
MFs/UTI 0.46 0.51FII 0.20 0.22
Others 68.00 75.08
Paid up equity 2111.488 1911.462
Promoters: Mr Mukesh Gupta, Mr Rajesh Gupta, Mr B.L.Agarwal by
themselves and through their associate companies.
When LSIL approached for finance of project activity, the financial
lenders advised that the loans can not be sanctioned:
1 As the project activity is an in house project not involving any costbenefits the loans can not be sanctioned.
2 The company has accumulated losses and is under debt restructuring
with BIFR.The financial lenders refusal / advice letter will be made available to DOE.
As the debt funds were not available from banks for the project activity the
project proponent has to raise the debt funds from private investors at higher
interest than lending rates of banks.
No access to
international
capital markets
due to real or
perceived risks.
LSIL have not received any foreign assistance and they are not in a position
to access the international capital markets.
How CDM
revenues help to
alleviate the
above barrier
CDM revenues help to make the project activity more financially feasible
and help convincing the private investors to lend funds for the project
activity.
Whether fossil
fuel based heat
generation face
the barrier
This is business as usual situation with no investment required. Hence the
capital expenses are not involved and the economic barrier is not faced.
3.a.b Technological
barrier
1 Skilled and or
properly trained
labour not
available
How CDM
revenues help to
alleviate the
above barriers
As Coke oven gas is highly poisonous gas the workers operating in the area
are to highly skilled. Project participant is not having such skilled workers
and they have to be recruited. The skilled persons are not available in the
area as steel plants are not located near by where coke oven gas is generated
and used. This can be supported by plant record of employment related
matters.
CDM revenues will enable the company to overcome the barrier partially by
providing higher wages and other facilities to attract skilled people and also
send existing staff for training and developing necessary skills. But as the
company has accumulated losses making available higher wages to certain
set of people can lead to internal worker problem on parity of wages and also
company fails to attract the best talent due to its reputation of loss making
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
26/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 26
2
3
4
5
Lack ofinfrastructure for
implementation
of the technology
How CDM
revenues help to
alleviate the
above barriers
Lack of previous
experience in
using coke oven
gas.
How CDM
revenues help to
alleviate the
above barriers
Uncertainties of
availability of
coke oven gas.
How CDMrevenues help to
alleviate the
above barriers
Regulatory and
organisation.
Present lay out of the plant does not have the infrastructure does not havecorrect technology to handle coke oven gas as all jobs within a radius of 40
m could be a source of fire/ignition . Un authorised persons can not be
allowed to work in the area without shutting down the gas system. As per
present lay out ,the material handling systems like EOT cranes work on
overhead and run by electric supply connected with DSL ;there are
continuous sparks . This is very dangerous the gas area has to be completely
modified with new infra structure layout. This can be proved by plant
records.
CDM revenues help to overcome the barrier by changing the lay out and
shifting and carry out infra structure changes.
Company has no previous experience of using coke oven gas. Hence
having no previous experience acts as technical barrier. This can be
supported by plant records.
CDM revenues enable company to appoint with previous experience by
offering higher wages and other incentives. But as the company has
accumulated losses making available higher wages to certain set of people
can lead to internal worker problem on parity of wages and also company
fails to attract the best talent due to its reputation of loss makingorganisation.
The coke oven gas is sourced from UGML and the operations of UGML
Blast furnace is not under control of LSIL. Any planned or unplanned
shutdowns which are in control of UGML will immediately affect coke oven
gas supply which will disrupt LSIL production. This is definite barrier which
can not be overcome by LSIL and hence has to carry alternative furnace oil
storage and burner system in addition to coke oven gas system. This can be
supported by the agreement with UGML and plant visit.
The CDM alleviate the barrier by allowing LSIL maintain the alternativeexisting system to eliminate disruption of production. But this is partial
alleviation as the coke oven gas is sourced from UGML where LSIL do not
have control.
As the whole area will attract classification of highly hazardous area they
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
27/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 27
6
technological
problem
How CDM
revenues help to
alleviate the
above barriers
No control over
coke oven gases
and Related
design problem.
come under Chief Controller Of Explosives CCOE and permissions are to be
sought and got.
The following restrictions will be placed due to the poisonous and explosive
nature of coke oven gas
5.1 No personnel shall be allowed to work in or go to the area where fuel
gases are present if the carbon monoxide content is more than 25 ppm. On
line monitoring system with alarm for carbon monoxide concentrated will be
provided near gas handling areas.
5.2 The following precautions have to be ensured within 40 m of gas lines
a) No manual hammering which may give spark.
b) No use of sparking tool or instrument
c) No naked fired) All welding or cutting jobs to be done with written clearance from
competent authority. A minimum oxygen level of 20% is to be ensured.
This acts as regulatory/ technological barrier for coke oven gas based heat
generation. This can be supported by CCOE regulations.
CDM revenues will help the company to plan provide for instrumentation to
detect any leakages and increase the safety provisions so that regulatory
conditions are adhered strictly.
As coke oven gas is being sourced from UGML the project proponent does
not have control on quality and quantity of gas availability.
The coke oven gas produced by the pyrolysis process contains tar,
ammonia,napthlene,light oil and sulphur before the gas is used as fuel. The
cleaning process is responsibility of UGML as LSIL is getting the surplus
coke oven gas after UGML have used coke oven gas in their processes.
The furnace burner system is designed to use clean coke oven gas and due to
any reason the coke oven gas is not free of these impurities then furnace
working will be affected. The design of furnace burner is critical and hence
unclean coke oven gas will present design problem.
Water present in coke oven gas will also present design problems as the pipe
line might get clogged if the atmospheric temperature falls below 4 deg c.
The above can be supported by research article coke manufacturing in
pollution prevention and abatement hand book of world bank group,
research article investigation of the hazards of using manufactured gas in
Baltimore by Shrader and other research articles.
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
28/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 28
7
8
How CDMrevenues help to
alleviate the
above barriers
Production
related problem
How CDM
revenues help to
alleviate the
above barriers
Whether fossil
fuel based heat
generation face
the barriers
The CDM alleviate the barrier by allowing LSIL maintain the alternativeexisting system to eliminate disruption of production. But this is partial as
the coke oven gas is sourced from UGML where LSIL do not have control.
.
The composition of coke oven gas is critical as it decides the heat
availability. As the composition of coke oven gas can not be fully
guaranteed the heat availability in the furnace can be subjected to variation
and this will directly affect LSIL production.
The problem of what to do with coke oven gases when LSIL furnaces are
shut down is a concern which has to be addressed. The following twooptions are being considered.
Option 1 A boiler needs to be installed which will burn the coke oven gases
and produce steam. LSIL have presently no use for this steam and hence
have to find a consumer for steam. LSIL is considering installation of such
boiler so that waste heat is used and not wasted by burning while sending itto atmosphere through chimney. This option needs extra investments to the
extent of approximately Rs 80 million.
Option 2 LSIL will send coke oven gases to chimney and flare them before
letting out into atmosphere. The energy is wasted and LSIL have to provide
flare system at an additional cost of approximately Rs 30 million.
CDM revenues will enable the company to overcome the problem by
providing one of the above options or any other measure.
1 Barrier 1 : fossil fuel based system is very well established technology and
do not face skilled personnel problem as pool of trained people is large while
waste heat recovery systems are developing technology which is why skilled
personnel problem is faced by project activity. As LSIL is operating the
fossil fuel based system from inception it is business as usual and hence this
barrier will not be faced.
2 Barrier 2 : fossil fuel based systems do not face this problem as it is
existing system. As LSIL is operating the fossil fuel based system from
inception it is business as usual and hence this barrier will not be faced.
3 Barrier 3 : Company has fossil fuel handling experience hence furnace oil
based systems will not face this barrier in . As LSIL is operating the fossil
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
29/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 29
fuel based system from inception it is business as usual and hence this
barrier will not be faced.
4 Barrier 5: fossil fuel based heat generation is steady and proper regulations
are in place. As LSIL is operating the fossil fuel based system from inception
it is business as usual and hence this barrier will not be faced.
5 Barrier 4,6,7 : These are specific coke oven gas related barriers not
applicable to fossil fuel based systems. As LSIL is operating the fossil fuel
based system from inception it is business as usual and hence this barrier
will not be faced.
Barriers due to
prevailing
practice.
1
Discuss the
project activity in
host country.
How CDM
revenues help toalleviate the
above barrier
Whether fossil
fuel based heat
generation face
the barrier
LSIL is a steel manufacturing company equipped with DR-EAF-
Continuous slab caster based steel plant of capacity about 600000
tonnes/year of steel. There are 36 units in India who have similar process
and capacity as per Ministry of Steel Government of India site
www.steel.nic.in
None of these units are having furnaces using coke oven gas for heating in
furnaces. Coke oven gas is available only with blast furnace based
manufacturers as they use coke
CDM revenues help to make the project activity feasible and enable the
company to put the project activity and cross the barrier of prevailingpractice of not using the waste heat in sponge iron industry.
Fossil fuel based heat generation does not face this barrier as it is common
practice to establish such units.
Sub-Step 3.b. Show that the identified barriers would not prevent the implementation of at least
one of the alternatives (except the proposed project activity).
In section B.4 all the realistic and credible alternatives have been discussed in step 1 in line with
methodology and in the above section the barriers have been discussed and the concludes as follows:
The conclusion arrived was the continuation of use of fossil fuel as fuel in the furnaces was the only
viable and credible alternative( H4) as it is existing scenario and is business as usual scenario also.
As this is business as usual since the year1994 and faces no barrier.
STEP-4 Common practice analysis
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
30/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 30
Sub step -4a Analyse other activities similar to project activity
Analysis of
activities similar
to the project
activity.
LSIL is a steel manufacturing company equipped with DR-EAF-
Continuous slab caster based steel plant of capacity about 600000
tonnes/year of steel. There are 36 units in India who have similar process
and capacity as per Ministry of Steel Government of India site
www.steel.nic.in
None of these units are having furnaces using coke oven gas for heating
in furnaces.
The project activity is to generate heat from excess waste coke oven
gas generated in coke ovens after the use of gases in coke ovens. The
coke ovens produce coke and coke is used in steel industry where the
blast furnace is used for melting. Hence the steel unit which does nothave blast furnace do not have requirement of coke and hence coke oven
gas is not available as they do not have coke ovens.
Hence LSIL project activity is first of its kind in steel plants
using EAF route and using coke oven gas as heat source in furnaces.
This is possible as UGML who are in the same complex forming joint
facility with LSIL under which utilities are shared and all the product of
pig iron is sourced by LSIL as their input.
The industry followed the practice of letting the excess coke oven gases
out into atmosphere without utilising waste heat.
As per the ministry web site www.steel.nic.in the small steel mills splitup is as follows
1 EAF based units : 36
2 Induction furnace based units : 970
3 MBF,ETF based units:2
2 The following steel plants in private sector have blast furnaces.
1 Tata Steel Limited 5 million tonnes
2 Jindal steel limited 1.37 million tonnes
3 JSW Steel Limited 6.8 million tonnes
4 Ispat industries 3 million tonnes
5 kalyani steel 1 million tonne
Excess Coke oven gas in all the above industries is being used for
captive power generation and are under CDM project activities . If the
part of coke oven gases could have been used in furnace heating then
also 5 out of 36 units make less than 15% diffusion.
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
31/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 31
Sub-Step 4.b Discuss any similar options that are occurring
Activities
in similar
scale.
LSIL is a steel manufacturing company equipped with DR-EAF-Continuous
slab caster based steel plant of capacity about 600000 tonnes/year of steel.
There are 36 units in India who have similar process and capacity as per
Ministry of Steel Government of India site www.steel.nic.in
None of these units are having furnaces using coke oven gas as heat source.
The industry followed the practice of letting the excess coke oven gases out
into atmosphere without utilising waste heat.
As per the ministry web site www.steel.nic.in the small steel mills split up is as
follows
1 EAF based units : 36
2 Induction furnace based units : 970
3 MBF,ETF based units:2
2 The following steel plants in private sector have blast furnaces.
1 Tata Steel Limited 5 million tonnes
2 Jindal steel limited 1.37 million tonnes
3 JSW Steel Limited 6.8 million tonnes
4 Ispat industries 3 million tonnes
5 Kalyani steel 1 million tonne
Excess Coke oven gas in all the above industries is being used for captive
power generation and are under CDM project activities .
3 The difference in the above project activities is
1 LSIL do not have blast furnace and coke oven batteries which generate coke
oven gas.
2 Excess coke oven gas is sourced from UGML after their consumption of
coke oven gas in coke ovens3 Coke oven gas is used as heat source only and no power generation is done.
.
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
32/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 32
N
Optional
Y
Y
STEP 1. Identification of
alternatives to the project
activity consistent with
mandatory laws and
regulations.
STEP 2. Investment analysis
Does sensitivity analysis conclude
that the proposed CDM projectactivity is unlikely to be the most
financially attractive or is
unlikely to be financially Attractive?
STEP 3. Barrier analysis
(1) Is there at least one barrier
preventing the implementation of theproject activity without the CDM
And
(2)Is at least one alternative
Scenario, other than proposed CDM
CDM project activity, not prevented
by any of the identified barriers?
STEP 4. Common practice Analysis
(1)No similar activities can be Observed,
or (2) if similar Activities are observed,
are the essential distinctions between the
proposed CDM project Activity and
similar activities can reasonably be
explained?
Project is
Additional
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
33/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 33
B.6. Emission reductions:
B.6.1. Explanation of methodological choices:
>> Selected methodology is ACM 0012 Version 3.2 Sectoral Scope 1&4 EB 51
a) The methodology gives 4 steps to determine the baseline. All these 4 steps have been discussed in B.4
and arrived at baseline scenario of W2/H4 as the WECM would have been flared before letting into
atmosphere and the existing business as usual scenario where fossil fuel is used to provide heat in
furnaces of LSIL.
The baseline is the same scenario existing prior to the start of implementation of project activity.
The base line is fossil fuel i.e. Furnace oil for RHF and LPG for Coiler/CGL are being been fired in preproject scenario and the same scenario of using fossil fuel for firing in furnaces would have been
continued in the absence of project activity as it is business as usual scenario.
The methodology lists realistic and credible alternatives to project activity and arrives at conclusion ofcontinuation of current situation as the only plausible alternative in the absence of project activity.
b) The emission reductions are achieved by displacing fossil fuel used in furnaces with waste coke oven
gas which uses only waste heat and does not use any fuel.
c) The additionality has been proved using additionality tool the tool for the demonstration and
assessment of additionality (version 05.2) EB 39.
d) The baseline emissions have been calculated for scenario 1 using equations 1, 1a, 1a.2, 1h. The
methodology states that if the project activity is generation of heat only then one of the two sub sections
under scenario 1 shall be used for estimating the base line.
1 Base line emissions
As the project activity is for generation of heat only ,Base line emissions are calculated for Scenario 1 as
the heat is obtained from fossil fuel in baseline. The applicable equations is 1a.2
2 Calculation of energy generated (heat) in units supplied by waste heat
The heat generated is calculated by using gas analysis and calculate heating value and the flow of
WECM. As 100% heat is generated by WECM the metered values of flow will be used and heating value
is calculated using gas analyser data.
3 Capping of baseline emissions
The methodology requires capping for element of conservativeness. We have selected Method 2 usingmanufacturers data and applicable equation 1g to calculate baseline cap f cap.
The baseline emissionsfor the year shall be determined as follows
BE y = BE En, y + BE fist y = BE En, y (equation 1)
Where,
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
34/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 34
BE y = Total baseline Emissions during a given year y.
BE En y =Baseline emissions from energy generated by the project activity during a given year y.
BE fist, y = Baseline emission from generation of steam, if any, using fossil fuel that would
have been used for flaring in the absence of the project activity =0 as no steam from fossil fuel is used for
flaring in baseline
BEy = BEElec,y + BEThermy = BETherm, y (equation 1.a)
Where,
BEy = Total baseline Emissions during a given year y.
BEElec y =Baseline emissions from electricity by the project activity during a given year y =0.
BETherm, y = Baseline emission from generation of thermal energy
As the project activity is for generation of heat only, Base line emissions are calculated for Scenario 1 as
clarified by note under this scenario. The applicable equations is 1a.2
Baseline emissions from thermal energy (BE Therm y)
BETher.y = fcap*f wcm**( (HG j y *EFheat, y )+(MG/ mech,tur))*EFheat, y (equation 1a-2)
MG/ mech,tur = 0 as no mechanical energy is generated in the project activity the equation becomes
BETher.y = fcap*f wcm**HG j y *EFheat, y (equation 1a-2)
BETher.y = Base line emissions from thermal energy during the year in tons of CO2
HG j y =Net quantity of heat supplied by the project activity in the year TJEFheat, y = CO2 emission factor t CO2/TJ
wcm = fraction of total heat generated by project activity using waste energy =1 as the heat generation
Is purely from waste energy
fcap= fraction of total energy produced using equation 1hEFCO2,I,j
EFheat, y = wsi,j ------------- ( 1a-22)
EP,I,y
EFCO2,I,j = CO2 Emission factor for base line fuel t CO2/TJ
EP,I,y =Maximum efficiency 100%wsi,j = fraction of total heat that is used by the recipient =1 as total heat is used is purely waste energy.
Capping of baseline emissions
As UGML is a new plant and no historical data is available Method 3 Case 1 is selected and following
equations will be used to estimate fcap.,
Q OE,BL
fcap = ------------ (1h)
Q OE, y
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
35/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 35
Q OE,BL = Output energy that can be theoretically produced to be determined on the basis of maximum
recoverable energy from WECM which would have been released in the absence of project activity.
Q OE, y = quantity of actual out put energy during yeary
The project emissions (PE y) are zero as no cleaning of gases is done in the project activity and no
electricity is used for any other purpose during handling of delivered coke oven gas. No auxiliary fuel is
used while using waste energy.
Leakage is zero as per methodology.
Emission Reductions
ERy =BETherm, y - PE y =BETherm, y
ERy = Total emission reductions during the year y in tons of CO2
PE y = 0
BETherm, y = Base line emissions for the project activity during the year y in tons of CO2
B.6.2. Data and parameters that are available at validation:
(Copy this table for each data and parameter)
Data / Parameter: EP,I,yData unit:
Description: Baseline efficiency. Source of data used: Project participant has assumed 100% efficiency.
Value applied: 100%
Justification of the
choice of data ordescription of
measurement methods
and procedures actually
applied :
For conservativeness maximum efficiency is assumed.
Any comment: nil
Data / Parameter: Hwcm,BL
Data unit: KJ/m3
Description: Calorific value
Source of data used: UGML the waste coke oven gas supplier
Value applied: 4000x4.18 KJ/M3
Justification of thechoice of data or
description of
measurement methods
and procedures actually
applied :
UGML the waste coke oven gas supplier has provided this data based on thecoke oven gas composition of Composition
CO 7.5 -9 % CO2 2.0-3.0% H2 55-57 % N2 2-6% CH4 24-26% CnHn 5%
Any comment: nil
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
36/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 36
Data / Parameter: twcm,BL
Data unit: Deg CDescription: Average temperature of WECM
Source of data used: UGML the waste coke oven gas supplier
Value applied: 100 deg C
Justification of the
choice of data or
description of
measurement methods
and procedures actually
applied :
UGML the waste coke oven gas supplier has provided this data based on the
coke oven gas availability.
Any comment: nil
Data / Parameter: Pwcm,BL
Data unit: Kg/cm2Description: Pressure of WECM
Source of data used: UGML the waste coke oven gas supplier
Value applied:
Justification of the
choice of data or
description of
measurement methods
and procedures actually
applied :
UGML the waste coke oven gas supplier has provided this data based on the
coke oven gas delivery.
Any comment: Nil
Data / Parameter: Q OE,BLData unit: MJ
Description: Output energy that can be theoretically produced to be determined on the basis
of maximum recoverable energy from the WECM which would have been
flared in the absence of project activity.
Source of data used: UGML the waste coke oven gas generator
Value applied: 17.942 X 10 8 MJ/Year
Justification of the
choice of data or
description of
measurement methods
and procedures actually
applied :
UGML have provided this data as excess coke oven gas that can be made
available to LSIL after considering their internal consumption.
Any comment: Nil
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
37/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 37
B.6.3. Ex-ante calculation of emission reductions:
>>
In step1 of B.4 all the credible alternatives for waste gas and waste heat were considered . in the absenceof project activity UGML would have vented through chimney the excess waste coke oven gas as UGML
do not have further requirements in the process(W2) and LSIL would continue to use fossil fuel for
providing heat in their furnaces(H4) .
Base line
The base line is Furnace oil/LPG which could have been fired if waste coke oven gas is not available. The
furnace oil is used in RHF and LPG is used in CGL and Coiler furnaces in current situation.
The project activity reduces GHG emissions as Waste coke oven gas would have been burnt by UGML
before letting into atmosphere in the absence of the project activity and LSIL uses this waste coke ovengas in their reheating furnace to provide required heat which would have been otherwise provided by
firing Furnace oil/LPG. GHG emission due to burning of fossil fuel is avoided and thus achieves reductionin GHG emissions.
Baseline emissions from thermal energy (BE Therm y)
BETher.y = fcap*f wcm**( (HG j y *EFheat, y )+(MG/ mech,tur))*EFheat, y (equation 1a-2)
MG/ mech,tur = 0 as no mechanical energy is generated in the project activity the equation becomes
BETher.y = fcap*f wcm**HG j y *EFheat, y (equation 1a-2)
BETher.y = Base line emissions from thermal energy during the year in tons of CO2
HG j y =Net quantity of heat supplied by the project activity in the year TJ
EFheat, y = CO2 emission factor t CO2/TJ
fwcm =fraction of total heat generated by project activity using waste energy =1 as the heat generation
is purely from waste energy
fcap= fraction of total energy produced using equation 1gEFCO2,I,j
EFheat, y = wsi,j ------------- ( 1a-22)
EP,I,yEFCO2,I,j = CO2 Emission factor for base line fuel t CO2/TJ
EP,I,y =Maximum efficiency 100%wsi,j = fraction of total heat that is used by the recipient =1 as total heat is used is purely waste energy.
The step wise calculations are as follows
1 Calculation offcap
As UGML is a new plant and no historical data is available Method 3 Case 1 is selected and following
equations will be used to estimate fcap.,
Q OE,BL
fcap = ------------ (1h)
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
38/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 38
Q OE, y
Q OE,BL = Output energy that can be theoretically produced to be determined on the basis of maximum
recoverable energy from WECM which would have been released in the absence of project activity.
Q OE, y = quantity of actual out put energy during yeary
S No Description Reheating
Furnace
CGL
furnaces
Coiler
Furnace
Reference
document
1 Production
capacity
tonnes/year
1000000 250000 400000 Manufacturer
specifications
2 Base line
fuel
Furnace
oil
LPG LPG
3 Specific
heat
requirement
MJ/tonne
1350 1210 254 Manufacturer
specification
for RHF
3 years average
4 Heat
provided by
coke oven
gas MJ
Q OE,y
=Productioncapacity
*specific
heatrequired
13.5 X 108
3.025X
108
1.016X
108
5 Q OE,y MJ 17.541 X 108 MJ/Year
6 Quantity of
WECM
12250 NM3/hr
7 Calorific
value
KJ/NM3
16720 KJ/NM3
=16.72 MJ/NM3
8 Q OE,BL MJ 12250 X 16.72 X 24 X365
= 17.942 X 108
MJ/Year
9 fcap = Q OE,BL/ Q OE,BL
= 17.942 X 10 8 / 17.541 X 10 8
= 1.023 But as per methodology consider f cap = 1
Calculation off wcm
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
39/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 39
As only waste heat is used for heat generation f wcm =1
Calculation ofHGj y
S No Description Reheating
Furnace
CGL
furnaces
Coiler
Furnace
Reference
document
1 Production
capacity
tonnes/year
1000000 250000 400000 Manufacturer
specifications
2 Base line
fuel
Furnace
oil
LPG LPG
3 Specific
heat
requirement
MJ/tonne
1350 1210 254 Manufacturer
specification
for RHF and
for CGL/Coilerfurnaces
3 years average
4 Heat
provided by
coke oven
gas MJ
13.5 X 108
3.025X
108
1.016X
108
5 HG j y 17.541 X 108 MJ/Year
Calculation ofEFheat, y
EFCO2,I,j
EFheat, y = wsi,j ------------- ( 1a-22)EP,I,y
EFCO2,I,j = CO2 Emission factor for base line fuel t CO2/TJ
EP,I,y =Maximum efficiency 100%wsi,j = fraction of total heat that is used by the recipient =1 as total heat is used is purely waste energy.
S No Description Reheating
Furnace
CGL
furnaces
Coiler
Furnace
Reference
document
1 Baseline
Fuel used
Furnace
oil
LPG LPG
2 EP,I,y 100% 100% 100% Considered
maximum for
conservativeness3 wsi,j =
fraction of
total heat
that is used
by the
recipient
1 1 1
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
40/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 40
4 EFCO2,I,j 0.0719 0.0494 0.0494 As per CO2
Baseline data
Version 5November 2009
Available on
www.cea.nic.in
5 EFheat, y
kg of
CO2/MJ of
base line
fuel using
1a -22
0.0719 0.0494 0.0494
Calculation of baseline emissions BETher.y
BETher.y = fcap*f wcm**HG j y *EFheat, y (equation 1a-2)
S No Description Reheating
Furnace
CGL
furnaces
Coiler
Furnace
Reference
document
1 Production
capacity
tonnes/year
1000000 250000 400000 Manufacturer
specifications
2 Base line
fuel
Furnace
oil
LPG LPG
3 Specific
heatrequirement
MJ/tonne
1350 1210 254 Manufacturer
specificationfor RHF
3 years average
4 Heat
provided by
coke oven
gas MJ
HG j y
13.5 X 108
3.025X
108
1.016X
108
5 EFheat, y
kg of
CO2/MJ of
base line
fuel
0.0719 0.0494 0.0494 As per CO2
Baseline data
Version 4
Available on
www.cea.nic.in
6 fcap 1 1 1 Assumed.
Actual value to
be taken during
every year
calculations.
-
8/8/2019 Waste Heat Project at LSIL PDD Date 05 Feb
41/68
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
page 41
7 f wcm 1 1 1 All heat will be
supplied by
waste gas8 wsig 1 1 1 Total heat will
be used by the
utility point.
9 Base line
reductions
tonnes of
CO2/year
97065 14943.5 5019.04
10 Total base
line
reductions
Tonnes of
CO2/year
BETher.y
117027.54 rounded to 117028
Project emissions
As no other fuel is used in the normal operation.
PE y = 0
Leakage
No leakage is applicable under methodology
Calculation of emission reductions
ERy =BETherm, y - PE y = 117028-0 = 117028 tons of CO2 per year
ERy = Total emission reductions during the year y in tons of CO2
PE y = 0BETherm, y = Base line emissions for the project activity during the year y in tons of CO2
= 117028 tons of CO2.
T