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

CDM Executive Board

CLEAN DEVELOPMENT MECHANISM


PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD)
Version 03 - in effect as of: 22 December 2006
CONTENTS
A.

General description of the small scale project activity

B.

Application of a baseline and monitoring methodology

C.

Duration of the project activity / crediting period

D.

Environmental impacts

E.

Stakeholders comments
Annexes

Annex 1: Contact information on participants in the proposed small scale project activity
Annex 2: Information regarding public funding
Annex 3: Baseline information
Annex 4: Monitoring Information

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CDM Executive Board

Revision history of this document

Version
Number
01
02

Date

Description and reason of revision

21 January
2003
8 July 2005

Initial adoption

03

22 December
2006

The Board agreed to revise the CDM SSC PDD to reflect


guidance and clarifications provided by the Board since
version 01 of this document.
As a consequence, the guidelines for completing CDM SSC
PDD have been revised accordingly to version 2. The latest
version can be found at
<http://cdm.unfccc.int/Reference/Documents>.
The Board agreed to revise the CDM project design
document for small-scale activities (CDM-SSC-PDD), taking
into account CDM-PDD and CDM-NM.

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SECTION A. General description of small-scale project activity


A.1
Title of the small-scale project activity:
Natural Gas based bundled Co-generation and Tri-generation rental project in industrial facilities.
Version 01
Date: 19/01/2009

A.2.

Description of the small-scale project activity:

Quippo Energy Rental provides a unique rental proposition - an alternative to "buying" in the area of gas
based power generation to user who have access to piped natural gas and also other forms of gas (nonnatural gas) by putting together containerized equipment to generate power, heat and cooling. As a
common practice the electric power needed for the operations is being taken from the state electricity
board grid or met by way of owned captive generation on fossil fuels (Coal/HSD/HFO/Stoic Engine) by
using generators, thermal energy is generated by combustion of fossil fuel in a separate system (fired
boilers) and chilled water was being generated using vapour compression chillers driven by electricity.
Purpose of the project activity:
The objective of the project is to reduce Green House Gas (GHG) emission through adaptation of a
cogeneration system with enhanced efficiency and substitution of carbon intensive fuel based power
generation with comparatively cleaner natural gas based power generation and utilization of waste heat
for thermal energy generation. The project activity thus leads to a cleaner environment through lower
greenhouse gas emissions and other pollutants and greater energy security of the nation through lower
fuel consumption, fossil fuel conservation for other activities. It also ensures contribution towards
sustainable development through social, economic, environmental and technological innovation.
Salient Features of the Project:
The project proponent QEPL is in the field of renting power packs with natural gas based power
generation facility and has been able to replace 13.632 MW of electrical power (rated) at 6 different
locations along with installation of 9 nos. of Exhaust Gas Boilers, 1Hot Water generator and 3 nos. of
vapour absorption chillers using waste heat .
(Ref. Contract No) / Company Name

Capacity of Power Pack


(Installed Rated- kWe)
(J002) International Electron Devices Ltd. 1 * 1021 KW = 1021
Ghaziabad, UP
(J006) Mayur Dye-Chem Intermediates Ltd. 1 * 1021 KW = 1021
Vadodara, Gujarat
(J007) Star OxoChem Pvt. Ltd.,
1 * 1021 KW = 1021
Jhagadia Dist. Bharuch, Gujarat
(J008) Raymond Limited,
1 * 1364 KW = 1364
Paladi Dist. Valsad, Gujarat
(J012) Micro Inks Limited,
5 * 1364 KW = 6820
Vapi , Gujarat
1 * 1021 KW = 1021
(J013) Bilag Industries Limited,
1 * 1364 KW = 1364
Vapi , Gujarat

Waste Heat Recovery


Mechanism
1 * Exhaust Gas Boiler
1 * Exhaust Gas Chiller
1 * Jacket Water Chiller
1 * Exhaust Gas Boiler
1 * Exhaust Gas Boiler
1* Hot Water Generator
5 * Exhaust Gas Boilers
1 * Exhaust Gas Boiler
1* Jacket Water Chiller

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Power packs will deliver output of 71.650 GWH at average 60% effective PLF and provides the base
load electrical demand of the industry at the specified reference condition.
The introduction of an energy efficient natural gas based power generation along with waste heat
recovery system would result in increase in overall energy efficiency and reduction in the total amount of
fossil fuel used to provide heat and electricity to the industrial facility thereby resulting in a significant
amount of green house gas emission reduction estimated at 36,168 tCO2-equivalent per annum or an
361,680 tCO2-equivalent over a period of ten years.
Project contribution towards sustainable development
With its corporate strategy of innovation in every aspect of business and its commitment to socially
responsible practices the strategic planning at Quippo is aimed at establishing a balance between social,
economic and environmental demands of conducting business.
Quippo has hence selected eco-friendly and contemporary technology to establish new paradigms from an
environmental perspective while also being committed towards development of the community. Thus the
projects contribution towards sustainable development has been addressed based on the following pillars
of sustainable development as follows:
Social well being
The project activity would result in generation of employment opportunities for professional, skilled and
unskilled labor for management, operation and maintenance of the new activities. The development of
project specific infrastructure has also resulted in employment and income generation sources.
In addition various kinds of electromechanical work would generate employment opportunities for local
contractor on regular and permanent basis. The concept of packaged cogeneration is the first of this kind
in the region moreover the project activity is a result of involvement of many international vendors which
have studied and engineered the project, the project would contribute towards capacity building in terms
of technical knowledge and managerial skills.
In the context of national energy, the Indian economy is highly dependent on oil imports, with more than
seventy percent of oil being imported and with unstable crude prices in the world market, the project
activity through partial elimination of fuel oil consumption will contribute towards the national energy
security.
Economic well being
Successful implementation of the project activity will attract other industries towards the Natural Gas
Project and being a tri-generation project it will promote the efficient utilization of Natural Gas. It will
further encourage the expansion of Natural Gas Based grid not only in Gujarat but also in other parts of
the country this will in turn result in to economic development.

Environmental well being


The project activity through adaptation of natural gas based power generation facility would be reducing
considerable amount of GHG emission which would have taken place in the pre project scenario. As
sulphur content in the natural gas is very low and can be considered to be nil for any practical purpose
therefore the project would result in eliminating the SOx emissions to a considerable extent. The project

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is also results in elimination of NOx, carbon monoxide and particulate matter emission level. Hence the
project activity apart from reducing greenhouse gas emissions will be contributing towards better quality
environment for the employees and the community.
The project activity will also lead towards better management of health and safety of the employee
through incorporation of equipment with minimum noise generation by utilization of sound attenuation
structure (containers).
Technological well being
Natural gas based packaged cogeneration system is a robust and clean technology and it serves as a
demonstration project to encourage the development of more efficient cogeneration systems throughout
the country-.
The project will contribute positively to the application of natural gas based cogeneration in the industry.
The development of such technology is very limited facing many financial, institutional and technical
barriers. More specifically barrier of lack of awareness of the potential of energy efficiency and its
technical and economic benefit would be lowered by the incorporation of the project.

A.3.

Project participants:

The Party which is hosting the proposed CDM project activity i.e. the host country for the CDM
project activity is India.
India has already ratified the Kyoto Protocol on 26 August 2002 (Type A). Ratification details
are available in the UNFCCC website.
Name of Party
Involved (*)
((host) indicates a
host party)
Government
India
(Host Country)

Private
and/or Kindly indicate if the party involved wishes to be
Public entity (ies) considered as a project participant
Project
(Yes / No)
Participants (*)
as applicable
of A)
No
Quippo
Private
India

Energy
Limited.

B)
KfW, Germany

(*) In accordance with the CDM Modalities and procedures, at the time of making the CDMPDD public at the stage of validation, a Party involved may or may not have provided its
approval. At the time of requesting the registration, the approval by the party (ies) involved is
required.
Note: When the PDD is filled in support of a new methodology (forms CDM-NBM and CDMNMM), at least the host party (ies) involved and any known project participant (e.g. those
proposing a new methodology) shall be identified.

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The entity who is investing in the project activity i.e. Quippo Energy Private Limited is the Project
Participant for the project activity.
CDM revenue generated from a particular industrial facility will be equally shared between
QEPL and the corresponding industrial facility.

A.4.

Technical description of the small-scale project activity:

The proposed CDM project activity has following two specific components:
Switching from grid power & HSD/FO/Coal based/Stoic Engine captive power generation to
Natural Gas based captive power generation.
Waste heat utilization from the exhaust gases of the engine of captive power plant through waste
heat boiler, exhaust gas chiller and jacket water chiller or hot water generator.
A brief description of the project activity is provided in following paragraphs:
Natural Gas based captive power generation
As an alternative to drawing power from the state electricity grid, industries establish captive facilities for
power generation and as a common practice all locations have coal based or HSD/HFO based captive
generation.
Quippo is providing at aforesaid locations natural gas based packaged power generation units coupled
with waste heat recovery system for heating/cooling requirement.
Net Power
Output

Exhaust Gas
Boiler/VAC

Steam/Chilling

Auxiliary
Consumption

Chilling
Exhaust
Gas Heat

Power
Generated

Power Pack
(Gas Engine)
Natural Gas

Jacket Water
Chiller
Coolant
Heat

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Detailed Technical specification of captive power generation unit are given in the Table1
Table 1: Technical Specifications of Power Pack
Power Pack
PP1000
PP1300
Engine Power (KW)
1050
1400
Speed (rpm)
1500
1500
0
Exhaust Temperature ( C)
517
526
Compression Ratio
12:1
12:1
Generator Efficiency (%)
97.2
97.4
Energy Balance
Electrical Power (KW)
1021
1364
Jacket water heat (KW)
475
624
Intercooler LT Heat (KW)
87
112
Exhaust Gas (KW)
682
928
Radiation Heat (KW)
89
108
Fuel Consumption (KW)
2545
3394
Electrical Efficiency (%)
40.1
40.2
Thermal Efficiency (%)
45.5
45.7
Overall Efficiency (%)
85.6
85.9
Source: Technical Data Sheet as provided by the manufacturer.
Captive natural gas based co generation power plant leads to reduction in CO2 emission as overall
efficiency of the captive power generator is 85% as compared to 35% efficiency (Source: CEA Database
Version 4)of the fossil fuel based power plants supplying electricity to grid or HSD/FO/Stoic Engine
efficiency. At the same time natural gas is less carbon intensive than other fossil fuels like Coal, HSD,
and HFO. Carbon emission intensity of fossil fuels as per IPCC guidelines 2006 is given below:
Fossil Fuel
CO2
emission
factor (tCO2/TJ)

Coal
96.1

Lignite
101

Diesel

Furnace
Oil

74.1

77.4

Natural
Gas

Naphtha

56.1

73.3

Gasoline
69.3

Waste Heat Utilization


Apart from the two reasons mentioned above, the emission of carbon dioxide also reduces due to recovery
of waste heat from the exhaust of the engine. This waste heat is used for running a vapour absorption
chiller to produce cooling effect or Exhaust Gas Boiler (EGB) to produce steam.
Vapour Absorption Chiller can be operated from two sources:
a. Exhaust Gas Chiller (EGC) which is operated on the heat recovery from exhaust gases from
engine.
b. Jacket water Chiller which is operated on the heat recoverd from jacket water used for cooling of
engine.

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Estimation of waste heat recovery through Vapour Absorption Chiller and Boiler is given in the
Table 2
Table 2: Estimation of waste heat recovery
Power Pack Electricity
Loading
Jacket Water Exhaust Gas Boiler
Model
Generation
(%)
Chiller
Chiller
(10.54 Kg/cm2)
Capacity (KW)
Capacity (TR) Capacity (TR) Giga Cal/Hr
1021
100
0.52
PP1000
98 to 102
203 to 228
75
0.43
50
0.30
1364
100
0.70
PP1300
110 to 123
272 to 310
75
0.58
50
0.41
Source: Technical Data Sheet as provided by the manufacturer.
In the absence of project activity, steam would have been produced by Coal, HSD or HFO fired boiler
system.
Vapour compression using compressors run by electrical motors is the predominantly used technology in
India for condensing the vapours of the refrigerant in a refrigeration / air conditioning cycle because of its
low initial cost as compared to vapour absorption system.
Technical specification of Exhaust Gas Chiller and Jacket Water Chiller are given in Table 3 and Table 4
respectively.
Table 3: Exhaust Gas Chiller
SOURCE OF HEAT - EXHAUST GAS

1000
Power Pack

1300
Power Pack

Exhaust Gas Flow Rate (8%)

Kg/hr

5499

7332

Exhaust Gas Temperature inlet

Deg C

517

526

Chiller Type

Model

EGC 1000

EGC 1300

Capacity

TR

228

203

310

272

Exhaust Gas Temperature outlet

Deg C

180

180

180

180

Chilled water inlet temperature

Deg C

12

10

12

10

Chilled water outlet temperature

Deg C

Chilled Water Flow Rate

M3/hr

137.89

122.77

187.49

164.51

Cooling water inlet temperature

Deg C

32

32

32

32

10

Cooling water outlet temperature

Deg C

37.3

37.3

37.2

37.0

11

Cooling Water Flow Rate

M3/hr

228

228

310

310

12

Vacuum Pump Rating

KW

0.75

0.75

13

Auxiliary Power Consumption


(ABS+REF+DAMPER+CP)

KW

3.35

4.15

Source: Technical Data Sheet as provided by the manufacturer.

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Table 4: Jacket Water Chiller


SOURCE OF HEAT - JACKET WATER
1
2
3
4
5
6
7
8
9
10
11
12
13
14

HT Jacket water heat rejection


(8%)
Jacket Water Outlet Temp
Jacket Water Inlet Temp
Jacket Water flow Rate
Chiller Type
Capacity
Chilled water inlet temperature
Chilled water outlet temperature
Chilled Water Flow Rate
Cooling water inlet temperature
Cooling water outlet temperature
Cooling Water Flow Rate
Vacuum Pump rating
Auxiliary Consumption
(ABS+REF+CP)

1000
Power Pack

1300
Power Pack

473

622

92
82
44
JWC 17

92
82
53
JWC 13

KW
Deg C
Deg C
M3/hr
TR
Deg C
Deg C
M3/hr
Deg C
Deg C
M3/hr
KW

102
12
7
61.69
32
37.3
141

98
10
5
59.27
32
37.1
141

KW

Source: Technical Data Sheet as provided by the manufacturer

123
12
7
74.39
32
38
149
0.75
2.45

110
10
5
66.53
32
37.4
149

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

2.Mayur Dye Chem


Intermediates Ltd.
3. Star Oxo
Chem Pvt. Ltd.

4. Raymond Ltd.

5. Micro Inks Ltd


6. Bilag Industries Ltd.

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1. International
Electron
Devices Ltd.

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A.4.1.1.

Host Party (ies):

>> India
A.4.1.2.
>> Uttar Pradesh, Gujarat

Region/State/Province etc.:

A.4.1.3.
City/Town/Community etc:
>> Ghaziabad, Vadodara, Jhagadia, Paladi, Vapi
A.4.1.4.
Details of physical location, including information allowing the
unique identification of this small scale project activity:
Company Name

Address

Latitude and Longitude

International Electron Devices Ltd.


Ghaziabad

Plot No. 609, Village- Chhapraula,


Dist Gautam Budh Nagar
201009, U.P.
Unit III, Survey No. 327 to 334-A,
Village Karkhadi, Ta. Padra, Dist
Baroda. Gujarat
Plot No. 756/10 A&B, Mega Ind.
Estate, Jaghadia- 393110, Dist
Bharuch. Gujarat
NH 8, Khadki Udwada Tal. Pardi,
Dist. Valsad 396185. Gujarat
Plot No. 808/E, 305/6/7, GIDC,
Vapi 396 195. Gujarat
Plot No. 306 / 3, II Phase, GIDC,
Vapi 396 195, Gujarat

Latitude: 2803713.21N
Longitude : 7702831.66E

Mayur Dye-Chem Intermediates Ltd.


Vadodra (Baroda)
Star Oxo Chem Pvt. Ltd., Jhagadia

Raymond Limited, Valsad


Micro Inks Limited, Vapi
Bilag Industries Limited

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Latitude: 2201529.45N
Longitude : 730009.01E
Latitude: 2103849.78N
Longitude: 730738.08E
Latitude: 2002859.97N
Longitude:7205553.05E
Latitude: 2002218.74 N
Longitude:7205615.61E
Latitude: 2002221.93N
Longitude: 720563.38E

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A.4.2. Type and category(ies) and technology/measure of the small-scale project activity:
Type II: Energy Efficiency Projects
Sub Category: II H,
Version 01, in effect from 14 April. 2008
Energy efficiency measures through centralization of utility provisions of an industrial facility
Sectoral Scope Number 4: Manufacturing industries.
A.4.3

Estimated amount of emission reductions over the chosen crediting period:

>>
YEAR

ESTIMATION OF ANNUAL EMISSION


REDUCTION IN TONNES OF CO2EQ.
2009
36,168
2010
36,168
2011
36,168
2012
36,168
2013
36,168
2014
36,168
2015
36,168
2016
36,168
2017
36,168
2018
36,168
Total Estimated Reductions (tCO2eq.)
361,680
No. of Crediting Years
10
Annual Average of Estimated Reductions over the 36,168
Crediting Period
A.4.4. Public funding of the small-scale project activity:
>> No Official Development Allocation (ODA) will be invested in the project activity.
A.4.5. Confirmation that the small-scale project activity is not a debundled component of a
large scale project activity:
>> In accordance with Appendix C to simplified modalities and procedure for small scale CDM project
activities DETERMINIG THE OCCURENCE OF DEBUNDLING it can be confirmed that the
proposed small scale project activity is not a debundled component of a large scale project activity.
As apart from the proposed project activity there is no registered or applied small scale CDM project
activity:
(a) With the same project participants;
(b) In the same project category and technology/measure; and
(c) Registered within the previous 2 years; and
(d) Whose project boundary is within 1 km of the project boundary of the proposed small
activity at the closest point.

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SECTION B. Application of a baseline and monitoring methodology


B.1.
Title and reference of the approved baseline and monitoring methodology applied to the
small-scale project activity:
Type II H: Energy efficiency measures through centralization of utility provisions of an industrial facility
Version 1, in effect from 14 April 2008
Reference: Appendix B of the Simplified Modalities and Procedures for Small Scale CDM Project
B.2
Justification of the choice of the project category:
The project activity meets all the applicability criteria as proposed in the approved baseline methodology
AMS II H version 01 Energy efficiency measure through centralization of utility provisions of an
industrial facility. The methodology is applicable to the Quippo natural gas based packaged cogeneration
and tri-generation project under the following conditions.
The applicability of the methodology is justified as follows:
Applicability Criteria 1: This methodology comprises energy efficiency measures implemented through
integration of a number of utility provisions (for power, steam/heat and cooling) of an industrial facility
into one single utility. The single utility shall consist of either, a Combined Heat and Power (CHP Cogeneration) or a Combined Cooling, Heat and Power (CCHP - tri-generation) installation, replacing
one or more:
(a) Existing utility provisions, and/or
(b) Facilities that would have otherwise been built.

Justification: Project activity involves generation of power, steam/heat and chilled water from same
natural gas based system replacing separate power generation; steam generation/heating and chilling
system which is either existing or would have otherwise been built meet the power, steam/heating and
cooling requirement of the industrial facility. Hence the project activity falls under CHP
Cogeneration/CCHP Tri-generation category. Establishment of captive generation of power using
natural gas as fuel is providing the opportunity for using waste heat in the exhaust of the power plant and
effective utilization of this waste heat in vapour absorption chillers and exhaust gas boilers is leading to
improvement in energy efficiency.
Applicability Criteria 2: Measures are limited to the activities that result in additional steam/heat and/or
cooling generation capacity of no more than 5% of the pre project situation. Consequently the
methodology is not applicable to activities seeking to retrofit existing facility to increase steam/heat
output.
Justification: Project activity is not a retrofit to the existing facility for capacity addition; it involves the
installation of a completely new steam/heat generation unit, Waste Heat Recovery Exhaust Gas Boiler, in
the facility.

Applicability Criteria 3: This methodology is applicable under the following conditions:


(a) Project activity results in total energy saving of no more than 60 GWh (or 180 GWhth) per year;

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(b) Project activity does not displace existing CHP or CCHP systems; and
(c) In case of CCHP systems, the project activity shall include the shift from vapour compression
chillers using chemical refrigerants to chillers which use refrigerants that have no global warming
potential (GWP) and no ozone depleting potential (ODP). This conversion must be voluntary and not
mandated by laws or regulations.
Justification:
(a) Maximum energy saving (sum of electrical energy saving and thermal energy saving) through
project activity will be 65 GWhth/year.
(b) No CHP / CCHP system is being replaced at the six sites.
(c) Pure water is used as a refrigerant in Vapour Absorption Chillers, pure water wdoes not have any
global warming potential or ozone depletion potential.

Applicability Criteria 4: In case the produced electricity, cooling or steam/heat are delivered to another
facility within the project boundary, a contract between the supplier and consumer of the energy will have
to be entered into specifying that only the facility generating the energy can claim emission reductions
from the energy displaced.
Justification: All electrical and heat energy generated by CHP system is utilized in the same industrial
facility.
B.3.
Description of the project boundary:
The Project Boundary is represented by dotted box in below diagram

Power
Generated
Captive Power
Generation

B.4.

Auxiliary
Consumption

Waste Heat
Utilization

Net Power
Generated

Plant
Equipments/Process

Heating /Cooling

Description of baseline and its development:

In accordance with the paragraph 8 of the approved methodology AMS II H

for power generation in natural gas based generators; the baseline considered is power supply
from the grid/ on site captive power generation using fossil fuel;

for steam/heat generation baseline considered is fossil fuel; and

for cooling requirement baseline considered is vapour compression chiller consuming electricity
from grid/captive power plant.

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In case of new facility baseline considered is the energy use of the facility that would have been otherwise
built.
In accordance with paragraph 9 of the approved small scale methodology baseline GHGs emission for
electricity displaced from grid will be calculated by multiplying grid emission factor with amount of
electricity generated by natural gas based generator.
With the purpose of providing a ready reference for the grid emission factors to be used in CDM projects,
Central Electricity Authority (CEA), Government of India, has published, CO2 Baseline
Database for the Indian Power Sector User Guide, Version 4.0. This database is an official publication of
the Government of India for the purpose of CDM baselines. It is based on the most recent data available
to the Central Electricity Authority.
Baseline GHGs emission for electricity displaced from captive power plant will be calculated by
multiplying emission factor of captive power plant (calculated based on specific fuel consumption)
consuming coal/HSD/HFO/Natural Gas with amount of electricity generated by natural gas based
generator.
In accordance with paragraph 10 of the approved small scale methodology AMS II H baseline GHGs
emission for steam/heat will be calculated based on quantity of baseline fuel (HFO/Natural Gas) that
would have been consumed in the absence of project activity, in accordance with Tool to calculate
project or leakage CO2 emission from fossil fuel consumption.
In accordance with paragraph 11 of the approved small scale methodology for an absorption chiller
baseline emission is the emission from electricity consumed to operate the baseline chiller whether it is
captive power or power from grid.
GHGs emission in presence of CDM project activity will be calculated based on amount of natural gas
consumption in CHP/CCHP system in accordance with Tool to calculate project or leakage CO2
emission from fossil fuel consumption.

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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 small-scale CDM project activity:
The project activity is considered to be additional if anthropogenic emissions of GHG gases 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 ).
There are a number of barriers towards implementation of the proposed CDM project. An outline of the
barriers towards implementation of project has been provided in the following paragraphs:
Project Specific Risk due to Gas Availability and Rental Model

Domestic gas production in India has either been stagnating or increasing at a slow pace over the past five
years. The increase in production from OIL and JV/private producers has been largely offset by the
decline in production by ONGC as Table shows.

Actual supply to the market is lower because of internal consumption, recovery of higher hydrocarbons
and flaring. For instance, supplies were only around 75 MMSCMD in 2005-06 from domestic production
as against production of 89 MMSCMD.(Source: Indian Natural Gas Sector : Developments and Outlook
By ICRA)
As against the gas availability of 93 MMSCMD, current demand is estimated, even at conservative levels,
at 166 MMSCMD. ICRAs estimates of gas supplies, taking into account the proven gas fields and the
developmental plans announced, are shown in table below:

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As against the supply estimates mentioned in table above a huge latent demand notwithstanding, gas
to gas competition, based on the delivered price of Natural Gas, may well emerge.

It is clear from the above discussion that due to huge demand and supply gap of natural gas in India there
is high uncertainty of availability of natural gas. Due to shortage in supplies of natural gas project
operation may face barrier due to termination of rental contract with Quippo on account of nonavailability of assured and affordable fuel supply.
The Indian gas market, historically used to price subsidisation even with the prices of alternative
feedstock/fuels ruling high on an energy equivalent basis, has witnessed significant developments over

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the past two years in terms of price rationalisation. Definitive steps were taken by the GoI when it issued
a gas pricing order, after nearly five years delay, with effect from July 1, 2005 and then second pricing
order in June 2006. Changes in the prices after each order are shown in the table
below:

In view of the developments discussed, nearly 50% of the market is buying gas at market rates. Going
forward, this proportion can only increase in the coming years.
The price of R-LNG supplied by Petronet LNG Limited, the main supplier in the Indian markets at
present, is also expected to undergo a significant change beginning January 2009, when the currently
existing cap is lifted and prices get gradually aligned with the Japanese Custom Cleared Crude Oil prices.
The incremental LNG to be sourced in the Indian market is also expected to be available at higher prices
than contracted hitherto, given the tight demand-supply levels for LNG current and envisaged in the
global market.

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An user of QEPL Solution can withdraw from the rental contract due to following reasons:
1. Considering the on going shortage of supply of natural gas, prices are always expected to rise;
the other cause of price hike can be internal policy changes by government. Any further rise in
the natural gas price can make cost of natural gas based power generation non-viable option for
the QEPL solution users. In that case users can switch back to their previous source - grid power
or other cheaper liquid fuel based captive generation options.
2. Perceived risk of non availability or curtailment of the supply natural gas in future: Indias
domestic production of natural gas is not sufficient to cater the ever rising demand of natural gas
and international scenario is highly volatile in terms of oil and gas production.
3. There are chances that due to expansion plans of clients and an increased load in the client facility
the QEPL solution user can go in for a owned captive power plant in future.
4. Any abrupt change in government policy on captive power generation and/or imposition of new
taxes or upward revision in electricity duty payable on self generated units or demand charges for
stand-by grid connection can make the entire solution non-viable instigating users to withdraw
from the contract prematurely.
5. User owning cost reduction due to decreasing import duty structure on power generating
equipment can be a potential threat for termination of the service contract.
.

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Financial barrier to project activity


Benchmark Analysis Approach has been used to demonstrate the financial barrier to project activity.
Details of the project cost and other financial information are given in below table:
Description

(in Rs. Lacs*)

Project Cost
Power Packs
Boilers
Chillers
Margin Money for Working Capital
Total
Project Financing (Rs. Lacs)
Debt (75%)
Equity (25%)
Rate of interest
Working Capital (Rs. Lacs)
1 Month Receivable
Working Capital Debt (75%)
Rate of Interest
Working Capital Equity (25%)
Depreciation
Revenue Generation
Capacity
1
Effective PLF
Electricity Generation
Electricity Sale Price
Boiler Rent
EGC 1000
JWC 1000
JWC 1300

2930.88
225
130
19.7
3305.6
2479.2
826.4
12%
78.9
59.2
12%
19.7
10.34%
13.632 MW
60%
716.50 Lac units
1.20 Rs./Unit
89 Rs./Hour
139 Rs./Hour
138 Rs./Hour
172 Rs./Hour

Note : * Rs. 1 Lac = Rs. 100,000


Benchmark rate of return has been calculated as weighted average cost of total capital employed for the
project activity. Bench mark return is 12.20% whereas return from project is only 7.86% which is less
than required return. With the help of CDM revenues Project IRR crosses Benchmark IRR making project
financially viable. Below table depicts the sensitivity analysis of IRR with respect to PLF.

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Sensitivity Analysis
Project IRR
with CDM
Revenue
Projected PLF
10.03 %
60 %
7.86 %
12.20%
13.00 %
+10% PLF
66 %
10.69 %
12.20%
- 10% PLF
6.44 %
54 %
4.53 %
12.20%
__________________________________________________________________________________
1: Effective PLF = Power Plant PLF (0.75) x Plant Utilization Factor (0.8) = 0.60
Where: Plant utilization factor indicates the estimated number of operation hours plant will be available
in a year and power plant PLF indicates the average loading on the plant during operative hours.
Variation in PLF

Effective PLF

Project IRR

WACC

Technological barriers project activity


The application of natural gas based packaged cogeneration system by Quippo is first of this kind in the
country. Although cogeneration systems have been applied to a limited extent in the country but the
application of third party owned natural gas based co-generation system is rare. The low market share of
cogeneration systems compared to the existing power generation capacity and the gap between harnessed
and potential capacities strongly suggest the insufficient infrastructure to support installation and
maintenance of the system acting as a technological barrier to the project proponent.
A study has been carried out by Ministry of Non-conventional Energy Sources (MNES) depicting the
total potential of cogeneration in the country which mentions that the industries have the potential to
produce 15,000 MW through co-generation while industrial and urban wastes could generate about 2700
MW which would increase to 7000 MW by 2017. (http://www.mnes.nic.in/)As per the MNES annual
report the total potential of the cogeneration being harnessed is just above three percent. Hence the above
facts and figures suggest the institutional barriers faced by the industry in adaptation of such
technological barriers.
Regulatory barrier to project activity

Although the electricity act and the national electricity policy de-license the incorporation of cogeneration
system in the industrial facility but there is no such preferential tariff initiative, financing or fiscal benefit
compared to other generators. Indian Renewable Energy Development Agency (IREDA), a premier
financing institute in the country that promotes and finance for renewable project provides lower interest
loan only for biomass based cogeneration system but since the cogeneration project at the industrial
facility is a fossil fuel based system it is being deprived from receipt of financial benefit compared to
other electricity generation system from renewable source. This undermines the financial viability of
cogeneration investment.
In this context it is worthwhile to mention the financial barrier and other bottle necks which the industrial
facility faces for gas procurement. There is huge disparity in the demand supply scenario of natural gas in
this part of the country; moreover the gas price is soaring resulting in the project activity being non-viable
without additional revenue sources. Hence revenue generated from the CDM activities would substantiate
the viability of the project activity.

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Also, the fact that all industrial facilities have connections from the grid and have to pay minimum
monthly demand charges (even if no power purchase is made) acts like a barrier in the implementation of
this project.
Additionally, certain state electricity boards (like Gujarat, Maharashtra state) are also charging an
additional levy called as Electricity Duty of about 0.4 Rs / Unit of electricity generated by Quippo power
plants, which also acts like an additional burden on the user. This extra payment to state electricity board
acts as great barrier in the implementation of the project, as overall energy cost to customer goes up about
10 - 15 %. Electricity duty along with VAT makes more than l 10 % of landed cost of power to the end
user.
Hence the project activity faces regulatory barriers in getting operating clearance from state electricity
board authority.
VAT draw back Natural Gas purchase for Power Generation

Unlike natural gas used for process heating applications, natural gas used for power generation does not
allow user to get credits on taxes and levies. Natural gas consumed in boiler is eligible for VAT credit,
however, if it is used for captive power generation, the VAT paid at the rate 15 % becomes cost to user
and landed power cost to user increases making CPP operation further unviable.
Institutional barriers to ESCOs (Energy Service Company)
In package natural gas based power generation system institutional arrangement is totally different.
Quippo has to invest and install the system at the user site and provide electricity and thermal energy to
user. Quippo is also responsible for operation & maintenance of the system and continuous supply of
energy to user where as in traditional approach industrial facilities used to generate captive power
generation unit and after installation they were responsible for operation. The concept of ESCOs is not a
widely spread concept in India like other developed nationes and is in nacent stage. These installations are
a first attempt from Quippo as ESCO projects. So there is a lack of experience for Quippo and lack of
acceptance from industrial user to this concept.

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Thus this new arrangement involves a significant institutional barrier.


Expected CDM revenue shall bring down users present energy cost per unit basis, additionally it
will provide improved liquidity to Quippo to carry out its activities. These facts will immensely help
to propagate ESCO concept in India on a larger scale making it as an acceptable solution. Energy
rental offerings are additional in nature to normal buying this enhanced capacities shall lead to
reduce CO2 emissions additionally mitigating global warming.
B.6.

Emission reductions:
B.6.1. Explanation of methodological choices:

Baseline Emission Calculation


For the project activity displacing grid electricity the baseline emissions are determined based on the
amount of grid electricity displaced by the project activity.
BEPY = EPY * EFGY
Where:
BEPY is baseline emissions for the grid electricity displaced by the project in year y (t CO2e/year)
EPY is the amount of grid electricity displaced by the project in year y (MWh)
EFGY Emission factor of the grid (calculated in accordance with methodology AMS I.D (tCO2/MWh)
For the project activity displacing a captive steam/heat generation plant the baseline emissions are
calculated based on the equivalent amount of fuel that would have been used in the absence of the project
activity. The equivalent amount of fuel (in thermal unit) that would have been consumed by the captive
steam generation plant in year is calculated as follow:
FCY = SPY / Y
FCY is equivalent amount of fuel that would have been consumed by the captive steam generation plant
in year y (TJ)
Y is efficiency of the displaced captive steam generation plant in year y which is chosen as 100% in
accordance with guidance given in AMS II H.
SPY Thermal energy delivery of the project activity (TJ) in year y
The amount of electricity consumed to operate the baseline chiller is calculated based on the displaced
chillers Coefficient of Performance. The Coefficient of Performance is defined as chilling output per
Electrical input.
EBC,Y = CP,Y / COP
Where:
EBC,Y is the amount of electricity consumed to operate the baseline chiller in year y (MWh/year)
COP The Coefficient of Performance of the displaced chiller (MWhth/MWh) which is chosen as 5.0.
CP,Y is the cooling output of the baseline chiller in year y(MWhth/year)

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The baseline emissions associated with electricity consumed to operate the baseline chiller is calculated
as follow:
BEBC,Y = EBC,Y * EFGY
The total cooling output of the project activity per year in MJ is calculated as follow:
CP,Y = m * Cp * T

m is the chilled water mass flow-rate in year y (tonnes/year)


C is specific heat capacity of water (MJ/tonnes C) (liquid water 4.2 MJ/t C)
T is differential temperature of incoming and outgoing water (C)
Project Emission Calculation
Project emission due to use of fossil fuels and electricity by the CCHP units, including those to run
auxiliary equipments will be calculated in accordance with the Tool to calculate project or leakage CO2
emissions from fossil fuel combustion as given in para 12 of approved small scale methodology
AMS II H.
Project Emission is calculated on the basis of quantity of fossil fuel consumed. CO2 emission from
combustion of Natural Gas in project scenario is calculated as follow:
PECCHP = FCCCHP * COEFNG
Where:
PECCHP is emission due to combustion of natural gas in project scenario (tCO2 / year)
FCCCHP is quantity of Natural Gas combusted in CCHP system (NM3/year)
COEF is carbon dioxide emission coefficient of natural gas (tCO2/NM3)
COEFNG = NCVNG * EFNG
Where:
NCV is net calorific value of Natural Gas (TJ/NM3)
EF is CO2 emission factor of natural gas as per IPCC default values (tCO2/TJ)
Leakage Emission Calculation
Project activity includes the installation of Greenfield projects and refrigerant used is pure water which is
not having any GWP.

Emission Reduction Calculation


The emission reduction achieved by the project activity shall be calculated as the difference between the
baseline emissions and the sum of the project emissions and leakage.

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

Data / Parameter:
Data unit:
Description:
Source of data used:
Value applied:
Description of
measurement methods
and procedures actually
applied :
Any comment:

EFNG
tCO2/TJ
Emission Factor of the fuel being used in the pre and post project activity
IPCC Data 2006 Guidelines
For Natural Gas 56.1
Default values decided by Intergovernmental Panel on Climate Change

Data / Parameter:
Data unit:
Description:
Source of data used:

EFGY
tCO2/MWh
Emission factor of power generation in baseline scenario
Official database for grid emission factor published by Central Electricity
Authority(CEA)
Combined Margin Emission Factor = (0.5)*Operating Margin + (0.5)*Build
Margin
0.805
Grid Emission factor is calculated by CEA in accordance with AMS I D

Value applied:
Justification of the
choice of data :
Any comment:
Data / Parameter:
Data unit:
Description:

Country Specific Value not Available

EFFO
tCO2/TJ
CO2 emission factor of furnace oil which would have been consumed in
baseline scenario.
IPCC Data -2006
77.4
Default values decided by Intergovernmental Panel on Climate Change

Source of data used:


Value applied:
Description of
measurement methods
and procedures actually
applied :
QC/QA procedure:
Any comment:
Country Specific values are not available
Data / Parameter:
Data unit:
Description:
Source of data used:
Value applied:
Justification of the
choice of data :

NCVNG
For Natural Gas - KCal/SCM
Net Calorific Value of Natural Gas used as fuel in project scenario
Value Specified by the supplier of the fuel
IEDL
MIDL
SOPL
RL
MIL
BIL
8500
9000
8250
8650
8350
8350
Generally, the facilities for determining the calorific value of gas fuel are not
available with the production units. Further the use of calorific value as
provided by the gas supplier is expected to be more reliable.

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Any comment:
Data / Parameter:
Data unit:
Description:
Source of data used:
Value applied:
Justification of the
choice of data :
Any comment:

COP
Fraction
Co-efficient of performance for baseline chiller
Technical Details of chillers from chiller manufacturer
5.00
COP for the baseline chiller is taken for the chiller having capacity nearly same
as in case of project scenario

Data / Parameter:
Data unit:
Description:
Source of data used:
Value applied:

SPY (Thermal Energy Produced by boiler )


TJ/year
Amount of heat energy produced by waste heat boiler in form of steam
Technical Specifications provided by manufacturer
1000PP
1300PP
15.76
21.26
Thermal output of the boiler used for ex ante emission reduction calculation is
the out of the boiler at 75% loading of power plant.

Justification for the


choice of data:
Any comment:
Data / Parameter:
Data unit:
Description:
Source of data used:
Value applied:
Justification of the
choice of data :
Any comment:

B.6.3

Y
Fraction
Efficiency of displaced captive steam generation system
As per provisions given in paragraph 10 of AMS II H
1.00
Maximum efficiency of 100% is assumed out of three options given and which
is most conservative for the purpose of ex ante emission reduction calculation.

Ex-ante calculation of emission reductions:

Baseline Emission for Power Generation


Parameter

Symbol

Unit

Formula Used

Amount of grid electricity displaced by the


project in year

EPY

MWh

Installed Capacity in
MW*0.60*8760

Emission factor of the grid

EFGY

tCO2/MWh

Constant

Baseline emissions for the grid electricity


displaced

BEPY

tCO2

EPY* EFGY

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Baseline Emission for Exhaust Gas Boiler


Thermal energy delivery of the project
activity

SPY

TJ

(Boiler capacity in
GigaCal/Hr*0.60*8760)/1000

Efficiency of the displaced captive steam


generation

fraction

Fixed Constant

Amount of fuel that would have been


consumed by the captive steam generation
plant

FCY

TJ

SPY/ Y

CO2 emission factor of furnace oil / Natural


gas as per IPCC default values as applicable

EFFO

tCO2/TJ

Constant

Baseline emissions for captive steam


generation plant
BEHY
Baseline Emission for Vapour Absorption Chiller

tCO2

FCY* EFFO

Cooling output of the baseline chiller

CP,Y

MWhth

(TR capacity of
chiller*3.413*8760)/1000

Coefficient of Performance of the displaced


chiller

COP

Fraction

Fixed Constant

Amount of electricity consumed to operate


the baseline chiller

EBC,Y

MWh

CP,Y/ COP

BECY

tCO2

EBC,Y* EFGY

BECCHP

tCO2

BEPY+ BEHY+ BECY

Quantity of Natural Gas combusted in CCHP


system
CO2 emission coefficient of natural gas
Net calorific value of Natural Gas

FCCCHP
COEFNG
NCVNG

SCM
tCO2/SCM
TJ/SCM

Monitored
NCVNG* EFNG
Monitored

CO2 emission factor of Natural Gas as per


IPCC default values

EFNG

tCO2/TJ

Constant

PECCHP

tCO2

COEFNG* FCCCHP

LECCHP

tCO2

ER

tCO2

Baseline emissions for chiller


Total Baseline Emission
Total baseline emission from combined
cooling heating and power(CCHP) system
Project Emission

Emission due to combustion of natural gas in


project scenario
Leakage Emisssion
Leakage emission from CCHP system
Emission Reduction
CO2 emission reduction from CCHP system

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Detailed CER calculation is given in table below:

Total Emission reductions = 36168 tCO2/year

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B.6.4

Summary of the ex-ante estimation of emission reductions:

YEAR

ESTIMATION OF ANNUAL EMISSION


REDUCTION IN TONNES OF CO2EQ.
2009
36168
2010
36168
2011
36168
2012
36168
2013
36168
2014
36168
2015
36168
2016
36168
2017
36168
2018
36168
Total Estimated Reductions (tCO2eq.)
10
No. of Crediting Years
361680
Annual Average of Estimated Reductions over the 36168
Crediting Period

B.7

Application of a monitoring methodology and description of the monitoring plan:

The monitoring is the part of baseline methodology. As explained earlier, the baseline methodology is
applicable to the project activity and hence the monitoring protocol given in the methodology is
applicable to the project activity.
In accordance with paragraph 16 of the approved methodology AMS II H, the monitoring shall consist of:
(a) Documenting of the technical specification of the captive equipment displaced or equipment
which would otherwise have been built.
(b) The metering of electricity, cooling and steam outputs (net of internal consumption) generated by
the CHP or CCHP utility and delivered to its users.

(i) The measurement of steam output is based on continuous monitoring of steam flow-rate,
temperature and pressure.
(ii) The measurement of cooling output is based on continuous monitoring of chilled water flow-rate
and the temperature difference between incoming and outgoing circulating water.
(c) The metering of fossil fuel and electricity used in the project activity (including those to run
auxiliary equipment) shall be as mandated by Tool to calculate project or leakage CO2 emissions
from fossil fuel combustion and in case of electricity use it shall be done as per the procedures
of AMS I.D. In case natural gas is used for energy generation, the amount of natural gas used
shall be monitored continuously using gas flow meters.

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(d) The parameters required to calculate the emission factor of the grid shall be monitored in
accordance with the procedures of AMS I.D.
(e) Necessary parameters are monitored to demonstrate that the measures implemented by the project
activity are limited to activities that results in additional steam/heat and/or cooling generation
capacity of no more than 5% of the pre-project situation.
B.7.1

Data and parameters monitored:

Data / Parameter:
Data unit:
Description:

EPY
MWh/year
Electric energy generated by captive power after deducting the auxiliary
power consumption
Source of data used:
Energy meter installed at power output of captive power plant
Value applied:
68873
Description of
Net power generated in the power plant will be determined using an electronic
measurement methods
energy meter installed at the outlet of the power plant. The meter used will be
and procedures actually of integrator type. The reading of the meter will be noted in the beginning of
applied :
every shift and at the end of the shift. The difference of the two readings will be
taken as the power generated during the shift.
Any comment:
Data / Parameter:
Data unit:
Description:

FCCCHP
SCM/year
Natural Gas used in the captive Natural gas based power plant for generating
Power
Source of data used:
Gas flow meter installed at the fuel supply inlet of the power plant
Value applied:
18277501
Description of
The gas flow meter used will be integrator type, wherein the gas used for every
measurement methods
shift of operation will be determined. The reading of the meter at the beginning
and procedures actually of the shift and at the end of the shift will be noted. The difference between the
applied :
two readings will be determined using the difference between the two readings.
Any comment:
The use of mass flow meter is not suggested as the density of the gas may vary
from time to time and the data of the calorific value from the gas supplier is
available in volume terms. The values available from volumetric flow meter
will be available as volume under ambient temperature and pressure.
Data / Parameter:
Data unit:
Description:
Source of data used:
Value applied:
Description of
measurement methods
and procedures actually
applied :

CPY
MWhth/year
Amount of refrigeration effect produced
Instantaneous reading from the PLC unit installed on the chiller
9016.75
PLC unit will show the instantaneous value of TR generation based on
formula:
m*cp*T
TR generated will be converted into MWhth based on the formula:
CPY = (TR*3.513)/1000

Any comment:

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Data / Parameter:
Data unit:
Description:
Source of data used:
Value applied:
Description of
Measurement Method
and procedures actually
applied :
Any comment:

ECB,Y
MWh/year
Power consumed to operate baseline chiller
Computed Value
1803.35
ECB,Y = CPY/COP

Data / Parameter:
Data unit:
Description:
Source of data used:

SPY
TJ/year
Amount of heat energy produced by boiler in form of steam
Volume flow meter and temperature and pressure recorder installed on the
steam outlet of boiler and a similar instrument installed at the inlet of the feed
water to boiler.
Value applied:
196.12
Using the steam flow rate, temperature and pressure at outlet and inlet heat gain
Description of
measurement methods
can be calculated using standard steam table and thermal energy produced by
and procedures actually boiler can be calculated.
applied :
Any comment:
Measurement of steam flow rate, temperature and pressure is a common
practice in industries.

Data / Parameter:
Data unit:
Description:
Source of data used:
Value applied:
Justification of the
choice of data :
Any comment:
Data / Parameter:
Data unit:
Description:
Source of data used:
Value applied:
Description of
measurement methods
and procedures actually
applied :
Any comment:

Y
Fraction
Efficiency of displaced captive steam generation system
Fixed value as per provisions given in paragraph 10 of AMS II H
1.00
Maximum efficiency of 100% is assumed out of three options given and which
is most conservative for the purpose of ex ante emission reduction calculation.

FCY
TJ/year
Amount of fuel that would have been consumed by the captive steam
generation plant in baseline scenario.
Computed Value
196.12
Will be computed as:
FCY = SPY/ Y

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Data / Parameter:
Data unit:
Description:
Source of data used:

Value applied:
Description of
measurement methods
and procedures actually
applied :
QC/QA procedure:
Any comment:
Data / Parameter:
Data unit:
Description:

EFGY
tCO2/MWh
Emission factor of power generation in baseline scenario
Computed based on specific fuel consumption of baseline fuel, the
corresponding power generation and the carbon emission coefficient of the
fuel/ incase of grid electricity as specified by central electricity authority
0.8050
Grid Emission Factor is calculated by CEA in accordance with AMS I D

EFFO
tCO2/TJ
CO2 emission factor of furnace oil which would have been consumed in
baseline scenario.
IPCC default emission factor for furnace oil
77.4
Value from latest IPCC guidelines has to be used

Source of data used:


Value applied:
Description of
measurement methods
and procedures actually
applied :
QC/QA procedure:
Any comment:
Country Specific values are not available
Data / Parameter:
Data unit:
Description:
Source of data used:
Value applied:
Description of
measurement methods
and procedures actually
applied :
QC/QA procedure:
Any comment:

EFNG
tCO2/TJ
Emission Factor of the fuel being used in the pre and post project activity
Default values decided by Intergovernmental Panel on Climate Change
56.1
Value from latest IPCC Guidelines has to be used

Country Specific Value not Available

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B.7.2 Description of the monitoring plan:


>>
The proposed CDM project leads to mitigation of GHG due to following two specific measures:
1. Replacement of grid power with power generated in captive natural gas based power generator
2. Waste heat utilization from the exhaust gases through exhaust gas boiler, exhaust gas chiller and
jacket water chiller.
The monitoring of the emission reduction will be carried out by measuring the actual power generation,
actual refrigeration generation and actual thermal energy generation in form of steam and the
corresponding natural gas / power consumption.
The fuel consumption for power generation can vary either because of variation in the efficiency of the
power plant or because of the variation in the calorific value of the natural gas. Variation in the calorific
value of the natural gas does not lead to variation in the emission coefficient (in terms of GHG emission
per unit of power generated). However variation in the thermal efficiency of the power plant leads to
variation in the emission coefficient. To account for the variations in the GHG emissions due to variation
in thermal efficiency of the power plant, combination of the natural gas consumption and the computed
value of emission coefficient of natural gas will be used. The value of the emission coefficient (in terms
of emissions per NM3) will be determined using emission coefficient for natural gas and the actual
calorific value of natural gas.
For determining the refrigeration generated, flow rate of the chilled water and the temperature loss across
the chilling unit is measured. There will be fluctuations of water temperature loss across the chilling unit.
In order to take care of the fluctuations detailed record of the periodic readings will be maintained
For determining the thermal energy output of boiler steam flow rate, temperature and pressure at inlet and
outlet will be monitored. In order to take care of the fluctuation detailed record of periodic readings will
be maintained.
The proposed CDM project activity will be implemented at six different production facilities by Quippo
located in the state of Gujarat and Uttar Pradesh. Quippo has designated a team for carrying out the
monitoring of the operation of the project activity. The CDM team will be headed by a General Manager
supported by two Senior Manager, Electrical and Mechanical field. The Senior Assistant Engineer,
Electrical and Senior Assistant Engineer, Mechanical would monitor the day to day activities of the
project activity and manage the lower hierarchical level resources responsible for recording the relevant
monitoring data required for the purpose of estimation of emission reduction. The data recorded will be
there by reported to Senior Assistant Engineer. The respective Senior Manager will be responsible for
validating the data and presenting these reports to the, General Manager, Head of the Power Plant and the
management on a periodic basis.
The engineers of the team will be responsible to maintain, calibrate (when required) the all monitoring
equipment they are also to report the Senior Manager on the recorded and monitored data time to time.
Functional layout of the team is given in block diagram below:

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General Manager

Senior Manager
Electrical
Senior Assistant
Engineer Electrical

Data validation

Senior Manager
Mechanical

Data Compilation

Senior Assistant
Engineer Mechanical

Quippos Internal Structure


Quippos External Structure
Data collection by field operator

.8
Date of completion of the application of the baseline and monitoring methodology and the
name of the responsible person(s)/entity(ies)
>> Date of completion of the application of the baseline and monitoring methodology:

20/09/2008
Contact information of the person / entity responsible for the application of the baseline and
monitoring methodology:
Gensol Consultants Pvt. Ltd.
SCO 11 (IInd Floor)
Sector - 11, Panchkula, Haryana 134109.
The entity is not a project participant

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SECTION C. Duration of the project activity / crediting period


C.1
Duration of the project activity:
Duration of proposed small scale project activity is 10 years.
C.1.1. Starting date of the project activity:
Date of contract agreement between Quippo Energy Private Limited and their client is taken as the
starting date of the project at different locations is. Starting dates at different locations are given in the
table below:
Site Name

IEDL,
Ghaziabad

MDIL,
Vadodara

SOPL,
Jhagadia

Start Date

18-Nov
2006

11-Sep
2007

02-Nov
2007

Raymond
Ltd,
Valsad
10-Dec
2007

MIL,
Vapi

BIL,
Vapi

14-April
2008

16-April
2008

CDM Project start date will be the earliest start date i.e. 18th Nov 2006
C.1.2. Expected operational lifetime of the project activity:
48000 Hours up to complete overhaul. After complete overhaul an additional full life term of 48000
Hours is reinstated. All the plants installed in this project are brand new.
Total operational lifetime of equipment is 96000 Hours, 48000 Hours original life and 48000 Hours
restored life.
C.2
Choice of the crediting period and related information:
Fixed Crediting Period
C.2.1. Renewable crediting period
Not Applicable
C.2.1.1.

Starting date of the first crediting period:

C.2.1.2.

Length of the first crediting period:

>>

>>
C.2.2. Fixed crediting period:
C.2.2.1.
Starting date:
>> 01/08/2009 or date of registration of project with Executive Board whichever is later
C.2.2.2.

Length:

>> 10 Years

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SECTION D. Environmental impacts


>>
D.1.
If required by the host Party, documentation on the analysis of the environmental impacts
of the project activity:
>> The installation of natural gas based cogeneration system at the industrial facility has been done
keeping in consideration of all the environmental norms of the country. The cogeneration system utilising
natural gas replaces fuel oil based electricity generation with higher carbon and sulphur content.

Air pollution mitigation


1. Natural gas containing negligible amount of sulphur will reduce the level of SOx pollution to a
considerable extent which was emitted in the pre project scenario from burning of the Fuel oil for
electricity generation.
2. The project activity will also result in mitigation of emission of suspended particulate matter

D.2.
If environmental impacts are considered significant by the project participants or the host
Party, please provide conclusions and all references to support documentation of an environmental
impact assessment undertaken in accordance with the procedures as required by the host Party:
>> The State Pollution Control Board does not recommend any environmental impact assessment for this
activity. The industrial facilities apply to the State Pollution Control Board and have been given required
clearance.

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SECTION E. Stakeholders comments

E.1.

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

Local Stakeholders Meeting for all six site locations included in the project activity was conducted
individually. Details of the local stakeholders meeting are given in table below:
Company
Name
Date of
Meeting
Mode of
invitation

IEDL

MDIL

SOPL

RL

MIL

BIL

26/12/2007

28/12/2007

20/07/2008

12/03/20008

05/072008

05/07/2008

Official
Invitation
through
Notice

Official
Invitation
through
Notice

Official
Invitation
through
Notice

Official
Invitation
through
Notice

Publishing
of Notice in
News Paper

Publishing of
Notice in
News Paper

Representatives from Quippo, Consultant and respective companies along with local stakeholders were
present during each meeting.

E.2.

Summary of the comments received:

Project activity received has received positive comments from the stakeholders. Some of the commmets
received for the project activity are listed below:
Reduction in emission will facilitate clean and healthy working environment.
Project activity will promote other user to cut down their carbon emission.
New skilled operators are also recruited for power plants and boiler.
Natural gas based system is much more advantageous over other options like diesel generators as carbon
emission is reduced, fuel spillage and environment degradation is avoided.
This kind of project should be given financial incentive.
Details of stakeholders meeting are available in documented form and can be validated.
E.3.

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


Project activity has not received any negative comments.

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Annex 1
CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY
(A)
Organization:
Street/P.O.Box:
Building:
City:
State/Region:
Postfix/ZIP:
Country:
Telephone:
FAX:
E-Mail:
URL:
Represented by:
Title:
Salutation:
Last Name:
Middle Name:
First Name:
Department:
Mobile:
Direct FAX:
Direct tel:
Personal E-Mail:
(B)
Organization:
Street/P.O.Box:
Building:
City:
State/Region:
Postfix/ZIP:
Country:
Telephone:
FAX:
E-Mail:
URL:
Represented by:
Title:
Salutation:
Last Name:
Middle Name:
First Name:

Quippo Energy Private Limited.


Plot # 427 / P, Mahagujarat Industrial Estate,
Sarkhej Bavla Highway
Ahemedabad
Gujarat
382 213
India
+91 2717 322 901 / 922
+91 2717 251 775
cdmproject.er@quippoworld.com
www.quippoworld.com
CDM Project Managers
Mr. / Mr.
Landge / Patwa
J. / G.
Sanjay / Montu
Energy Rental
+91 9328895079 / +91 9377395065
+91 2717 251 775
+91 2717 322 901 / 922 (Ext : 112 / 114 )
Sanjay.landge@quippoworld.com / montu.patwa@quippoworld.com

KfW

Palmengartenstr. 5-9
60325, Frankfurt

Germany
+49 69 7431 3717
+49 69 7431 4775
carbonfund@kfw.de
www.kfw.de/carbonfund
Vice President
Ms.
Sittler
Karin

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Department:
Mobile:
Direct FAX:
Direct tel:
Personal E-Mail:

KfW Carbon Fund


+49 69 7431 4775
+49 69 7431 2980

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Annex 2
INFORMATION REGARDING PUBLIC FUNDING
NO ODA IS BEING USED IN THE PROJECT ACTOVITY

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Annex 3
BASELINE INFORMATION

Company (End user) Name


International Electron Devices Ltd.
Ghaziabad
Plot NO. 609, Village- Chhapraula, Disst
Gautam Budh Nagar 201009, U.P.
Mayur Dye-Chem Intermediates Ltd.
Vadodara.
Unit III, Survey No. 327 to 334, Village
Karkhadi, Ta. Padra, Distt Vadodara,
Gajarat
Star Oxochem Pvt. Ltd., Jhagadia
Plot No. 756/10 A&B, Mega Ind. Estate,
Jaghadia- 393110, Disst Bharuch,
Gujarat
Raymond Limited, Valsad
NH 8, Khadki Udwada Tal Pardi,
Valsad 396185, Gujarat

Micro Inks Ltd., Vapi


Plot No. 808/E, 305/6/7, GIDC, Vapi
396 195. Gujarat

Bilag Industries Ltd., Vapi


Plot No. 306 / 3, II Phase, GIDC, Vapi
396 195.306 / 3, II Phase, GIDC, Vapi
396 195. Gujarat

Power
DG set - Fuel : HSD,
NCV : 11200 kCal/Kg
Density : 0.88 Kg / Ltr
with back up from Grid
(North region)
Stoic Engines (450 KWe)
NCV : 9000 kCal / Sm3
+ Grid Power (300 kWe)
( Western India grid Gujarat
state)
DG set Fuel : HSD
NCV : 11200 kCal/Kg
Density : 0.88 Kg / Ltr
Note : No grid connection
Grid Power
( Western India grid Gujarat
state) + DG set back-up

CPP, Fuel : Heavy Fuel Oil


NCV : 9650 kCal / Kg
Density : 0.9 kg / Ltrs
( Furnace Oil )
With DG set back-up
CPP, Fuel : Heavy Fuel Oil
NCV : 9650 kCal / Kg
Density : 0.9 kg / Ltrs
( Furnace Oil )
With DG set back-up

42

Heating and Cooling


Heating : Gas fired Boiler
NCV : 8500 kCal / Sm3
Cooling : N.A

Cooling
:
Electric
reciprocating chillers.
Heating : N.A

Heating : Gas fired Boiler


NCV : 8250 kCal / Sm3
Cooling : N.A
Heating :
Steam : Gas Fired Boiler
Hot Water : Steam from gas
fired boiler
NCV : 8650 kCal / Sm3
Cooling : N.A
Heating : HFO Fired Boiler
NCV : 9650 kCal / Kg
Density : 0.9 kg / Ltrs
( Furnace Oil )
Cooling : Not Applicable
Heating : HFO Fired Boiler
NCV : 9650 kCal / Kg
Density : 0.9 kg / Ltrs
( Furnace Oil )
Cooling
:
Electric
reciprocating chillers.
Specific Fuel Consumption :
0.7 TR / TR

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Annex 4
MONITORING INFORMATION
A
INPUT
Measuring Instrument
Specifications

Method of calibration
Contingency in case of
failure
OUTPUT
Measuring Instrument
Specifications

Method of calibration
Contingency in case of
failure

B
INPUT
Measuring Instrument
Specifications

Method of calibration
Contingency in case of
failure
OUTPUT
Measuring Instrument
Specifications

Power Pack
Natural Gas Critical measurement
Make : Emersion / Krohne Marshal
Type : Electronic / Vortex type gas flow mete
Least Count : Digital LCD Indication up to 2 decimals
Range : 0 to 500 SCM / Hr
Unit : SCM / Hr
Calibration Schedule : Every Year
At site / Laboratory calibration of transmitter by OEM.
Gas supplier company meter reading shall be construed as back up
reading.
Electricity Gross generation meter Critical measurement /
Auxiliary consumption meter Non-critical measurement
Make : Trinity (Gross generation meter) /
Type : Electronic digital energy meter
Least Count : 1 kWh
Range : 0 10000000 Units
Accuracy : Class 0.5
Unit : kWh
Calibration Schedule : Every Year
Laboratory calibration of Energy meter by third party.
In case, Power Pack gross power generation meter fails, the same
shall be replaced or repaired at the earliest opportunity, however it
is mandatory in Gujarat State that an additional gross power
generation meter is always installed on each Power Pack by end
user which is sealed by (Gujarat) State Electricity Board Authority
to monitor the unit generation on which electricity duty to be paid.
During such failures final report shall be generated based on user
meter (sealed by SEB inspector).
Heat Recovery Boiler
Feed Water and Blow down / Drain Non Critical measurement
Make : Boiler feed water tank level indicator
Type : Level Indicator
Least Count : 1 Ltr
Range : Not applicable
Unit : Ltrs per Hours
Calibration Schedule : Non critical measurement
Measuring actual flow in a measuring bucket
Non critical measurement to be maintained for cross check with
final steam generation meter reading.
Steam Critical measurement
Make : Emerson / Krohne Marshal
Type : DP + Transmitter / Vortex type flow meter

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Method of calibration
Contingency in case of
Failure

B
INPUT / OUTPUT
Measuring Instrument
Specifications

Method of calibration
Contingency in case of
failure

Least Count : Digital LCD Indication up to 2 decimals


Range : 0 to 2000 Kg / Hr
Unit : Kg / Hr
Calibration Schedule : Every Year
At site / Laboratory calibration of transmitter by OEM.
In case steam flow-meter fails the same shall be repaired at the
earliest opportunity, however feed water consumption shall be
monitored critically for said period. Historical data base and %
Power pack loading shall be used to arrive at derived flow rate.
Heat Recovery Absorption Chiller
Chiller Capacity
Make : Thermax Chiller Siemens PLC
Type : Digital
Least Count : 1 M3 / Hr
Range : As applicable
Unit : M3 / Hr
Calibration Schedule : Every Year
Not Applicable
Chiller output capacity is indicated by PLC panel based on constant
chilled water flow rate and variable inlet / outlet chilled water
temperature across chillers. In case, PT 100 type temperature
indicators fail to measure right temperature then mercury type
temperature indicators shall be used to measure the temperature loss
across chillers and capacity shall be calculated by capacity
calculation formula.

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