Feasibility Report On From Rice Husk

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

SIMPLIFIED PROJECT DESIGN DOCUMENT
FOR SMALL-SCALE PROJECT ACTIVITIES (SSC-CDM-PDD)
Version 02
CONTENTS
A. General description of the small-scale project activity
B. Baseline methodology
C. Duration of the project activity / Crediting period
D. Monitoring methodology and plan
E. Calculation of GHG emission reductions by sources
F. Environmental impacts
G. Stakeholders comments
Annexes
Annex 1: Information on participants in the project activity
Annex 2: Information regarding public funding

Revision history of this document
Version Date Description and reason of revision

Number
01 21 January Initial adoption
2003
02 8 July 2005 • The Board agreed to revise the CDM SSC PDD to reflect
guidance and clarifications provided by the Board since version
01 of this document.
• As a consequence, the guidelines for completing CDM SSC
PDD have been revised accordingly to version 2. The latest
version can be found at
<http://cdm.unfccc.int/Reference/Documents>.
SECTION A. General description of the small-scale project activity
A.1. Title of the small-scale project activity:
Biomass based power plant at Siltara, Raipur, Chhattisgarh, India.
Version No. – 02
Date: 24/01/2007
A.2. Description of the small-scale project activity:
Background
Maa Usha Urja Limited (MUUL) belongs to the NECO Group of companies which is mainly into the
business of manufacturing steel products. MUUL proposes to set up a 7.5 MW biomass based power
generation unit at Siltara located in Raipur district of Chhattisgarh, India.
Purpose
MUUL has entered into an understanding with Jayaswals Neco Limited (JNL), another group
company of MUUL, which has its steel plant division at Siltara Growth Centre, Raipur. MUUL will
arrange to supply power from its biomass based power generation plant to cater to a part of the power
requirement of JNL.
Steel plants are extensively power intensive. Chattisgarh is a state with a prevailing gap between demand
and supply of electricity. In view of the same, in absence of the project activity it was likely for the
project proponent to generate thermal power using coal to cater to the power requirement of energy
intensive steel industry of JNL owning abundant coal reserves near Raipur (See Section B.2 for selection
of appropriate baseline scenario). But, to abate Greenhouse Gas (GHG) emission, the project proponent
has decided to effectively utilize locally available rice mill generated rice husk, which is an un-utilized
biomass resource, as the main fuel for generation of steam and therefrom electricity.
Salient features of the project
The 7.5 MW biomass based power plant of MUUL, after meeting the auxiliary power requirement for
operation of the power plant, will sell electricity to JNL for in-house consumption of the JNL’s steel
plant. JNL has proposed direct drawal of power without using the transmission lines of the state
electricity grid. As per the Power Purchase Agreement (PPA) with JNL1, in case JNL is not in a position
to take supplies of power generated by MUUL due to any reason, the shortfall in consumption by JNL
will be sold to Chhattisgarh State Electricity Board (CSEB) at prices fixed by CSEB from time to time.
With the idea of using primarily rice husk as a fuel for the biomass based power plant, an annual
requirement of around 70000 tonnes of rice husk is envisaged for the proposed power plant. The rice husk
requirement for the project is proposed to be met from the rice mills in the near vicinity of the proposed
1
Refer to PPA between JNL and MUUL, dated 22/06/2005
power plant. At present the project developer has entered into fuel supply agreements with more than
one party in order to ensure assured supply of rice husk. However, avenue has been kept in the system to
fire different types of biomass into the Atmospheric Fluidised Combustion Boiler (AFBC) as per
availability. In case rice husk is not adequately available in the nearby locality, the project proponent
proposes to procure the same from the adjacent areas where rice yield is substantial. MUUL has also
planned for energy plantation exclusively for the purpose of ensuring the sustained supply of biomass for
the project activity2. Provision will be also be kept for co-firing of coal to take care of any exigency
arising from shortage of supply of biomass. With the excess rice husk availability in and around
Chhattisgarh, the possibility of such exigencies are low3.
Biomass being a carbon-neutral fuel the project activity will directly reduce Greenhouse Gas (GHG)
emissions related with equivalent electricity generation using fossil fuel in absence of the project
activity4. The project will also help to partially reduce the increasing demand and supply gap of electricity
for the steel plant division of JNL and indirectly of the entire region.
Project’s contribution to sustainable development
The contribution to sustainable development has been described under the following indicators:
Social-economic well being - Necessity of skilled and semi-skilled jobs during construction and for
operation and maintenance of the equipments of the power plant will generate both direct and indirect
employment in the rurally backward area surrounding the plant. Utilization of such an un-utilized waste
biomass for power generation will add value to rice husk and is expected to have a positive impact on the
economics of the rice millers in the region. The project will also help to partially reduce the gap between
electricity demand and supply at local and national level.
Environmental well being - The project activity is a renewable energy power project, which will use rice
husk generated from the rice mills in the locality as a fuel for power generation. Rice husk is a carbon-
neutral fuel. Thus the project activity will supply clean power to JNL. This electricity will displace the
power generation using fossil fuel coal. Thus it will reduce the related GHG (CO2) emissions from the
combustion of coal and save an equivalent amount of conventional fuel which is a non-renewable
resource.
Technological well being - The plant will use efficient and environment friendly technology of renewable
energy sector. The technology includes a modern Fluidised Bed Combustion (FBC) boiler designed to
operate with co-firing of two fuels – coal and rice husk and also different grades of biomass if need be so.
2
Refer to Deed of undertaking for permission to cultivate julie flora/other sources of biomass by JNL to MUUL,
dated 22/11/2005
3
Refer to Biomass Assessment Study in Siltara Growth Centre at 150 km range for Biomass Combustion based
Power Generating Unit of MUUL, prepared by M.C. Jain and Associates
A.3. Project participants:
Name of the Party involved Private and/or public entity(ies) Kindly indicate if the
((host) indicates a host party) Project participants (as Party involved wishes to
applicable) be considered as project
participant
(Yes/No)
Government of India Maa Usha Urja Limited No
A.4. Technical description of the small-scale project activity:

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

>>
A.4.1.1. Host Party(ies):

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

Chhattisgarh
A.4.1.3. City/Town/Community etc:

Siltara, Raipur
A.4.1.4. Detail of physical location, including information allowing the unique identification of this
small-scale project activity(ies):
The proposed power plant will be located in the premises of MUUL at Siltara, in Raipur District,
Chhattisgarh, India. The site is located on State Highway No. 5 which passes by the western side of the
plant. The location is selected considering various aspects like availability of rice husk in adequate
quantity throughout the year, availability of water and grid connectivity. The location also has the
abundant availability of skilled and semi-skilled labour and well connected with road, rail and air
communication.
The nearest railway station is at Raipur at a distance of about 8 km. Airport is also nearby and is located
at Raipur.
Fig 1: Location of
project activity
(Maps not to scale)
A.4.2. Type and category(ies) and technology of the small-scale project activity:
The 7.5 MW biomass based power plant of MUUL will evacuate power into JNL’s substation situated
within a distance of 1 kilometre (km) from the project activity site. The different power generating
sources evacuating into the JNL’s substation and the different end users drawing power from the same
substation are shown in the block diagram below.
CHHATTISGARH
STATE 7.5 MW BIOMASS
ELECTRICITY BASED POWER
GRID PLANT OF MUUL
12 MW 7.5 MW
15.5 MW BLAST
FURNACE GAS 11.5 MW
BASED POWER JNL’S SUBSTATION
PLANT OF JNL
23.5 MW STEEL MELT
SHOP OF JNL
4 MW BLAST FURNACE
OF JNL
2.5 MW OXYGEN
PLANT OF JNL
2.5 MW SINTER PLANT

OF JNL
2.5 MW COKE OVEN

PLANT OF JNL
As can be seen in the diagram above, JNL’s substation can be considered to be an isolated distribution
system, having multiple feeders and end users. MUUL’s biomass based power plant will supply
electricity to JNL through this isolated distribution system. In case JNL is not in a position to take
supplies of power generated by MUUL due to any reason, the shortfall in consumption by JNL will be
sold to CSEB at prices fixed by CSEB from time to time.
The project falls under the UNFCCC small-scale CDM project activity categories under Type-I with
project activity being renewable electricity generation for a grid.
Main Category: Type I - Renewable Energy Power project
Sub Category: D – ‘Grid connected renewable electricity generation’
As per paragraph 2 under Category I.D of Appendix B of the UNFCCC-defined simplified modalities
and procedures (M&P) for small-scale CDM project activities (Version 09: 28 July 2006), in case of
a unit which co-fires renewable biomass [rice husk] and non-renewable fossil fuel [coal] the
capacity of the entire unit shall not exceed the limit of 15 MW, for the project to qualify as a small-
scale CDM project.
Evidently, the project qualifies as a small scale one under Category I.D.
A brief on the technology employed
The power plant will be based on Rankine Cycle. Primary biomass fuel considered for the boiler is rice
husk, to be supplemented by other biomass materials and coal in case of exigencies. Suitable boiler
design will be available for use of rice husk and other biomass as fuels for steam generation along with
the provision kept for co-firing of coal if need be so. The salient features of a fluidized bed combustion
(FBC) type boiler include super heater, economizer, drum and air preheater. It also has the advantages of
high thermal and combustion efficiency reducing quantity of husk needed, to a minimum, automatic
operation for consistent high efficiencies and reduced need for manpower. The boiler will be multi-pass,
natural circulation type, sized to produce a maximum of 33 tonnes per hour of steam at 66 kg/cm2, 4950C.
The steam generated from the boiler will drive a steam turbine of 7500 kilo-watt (kW) (steam inlet
configuration 64 kg/cm2 and 495oC) capacity coupled to an electric generator of 7.5 mega-watt (MW)
maximum continuous rating [terminal voltage being 11kilo-volt (kV)]. The turbine will be of single
cylinder, straight condensing type, designed for high operating efficiencies and maximum reliability.
Power Evacuation
The JNL sub-station of 33 kV is located at about 500 metres from the plant site. Power generated at the
plant at 11 kV will be stepped upto 33 kV through a 10/12.5 MVA, 11/33 kV outdoor transformer.
Transmission and Distribution losses can be assumed to be low owing to proximity of the sub-station.
For evacuating the power to JNL’s substation, MUUL paid for constructing 33 kV transmission line from
the location of its power project upto JNL’s substation.
A.4.3. Brief explanation of how the anthropogenic emissions of anthropogenic greenhouse gas
(GHGs) by sources are to be reduced by the proposed small-scale project activity, including why
the emission reductions would not occur in the absence of the proposed small-scale project activity,
taking into account national and/or sectoral policies and circumstances:
The power plant proposes to use biomass (rice husk) as fuel for generation of electricity and in case of
exigencies has the provision of using coal as fuel. Biomass is a carbon-neutral fuel and hence there are no
net CO2 emissions from combustion of biomass. Since the biomass contains only negligible quantities of
other elements like Nitrogen, Sulphur etc. release of other GHGs like SOx, NOx are considered as
negligible.
The MUUL project will generate 7.5 MW power. Auxiliary consumption for the project activity has been
estimated at around 10% and the rest of the electricity generated will be sold to Group company JNL for
its captive consumption. In case JNL is not in a position to take supplies of power generated by MUUL
due to any reason, the shortfall in consumption by JNL will be sold to Chhattisgarh State Electricity
Board (CSEB). The Plant Load Factor (PLF) for the first year of operation has been estimated to be 70%,
in the second year of operation, the PLF has been estimated to be 80% and for the years ahead, the PLF
has been estimated to be 90%.
The plant will be commissioned in December 2006 and is expected to generate net amount of 3.449 GWh
per month of electric energy units in the first year (at 70% PLF), 3.942 GWh per month in the second
year (at 80% PLF) and 4.435 GWh per month for the subsequent years (at 90% PLF) in the crediting
period. In case generation is stabilized early, the maximum units i.e. 4.435 GWh per month will be
supplied from stabilization period onwards.
In absence of the project activity, MUUL would have generated equivalent power in a coal based power
plant and would have supplied the generated power to JNL (See Section B.2 for justification of the
baseline scenario). Under the project activity, net electricity generated from the 7.5 MW biomass based
power plant, after meeting the auxiliary consumption of the plant, will amount to 37.422 GWh in the first
year, 42.768 GWh in the second year and 48.114 GWh for the remaining years of the entire crediting
period. Cumulatively coal based electrical energy equivalent of 465.102 GWh for a period of 10 years
would be replaced by the renewable electricity generated from the 7.5 MW non-conventional renewable
resource (rice husk) based power plant with CO2 emission reduction of 445192 tonnes in 10 years.
Without project activity, the same energy load would have been taken up by a fossil fuel (coal) based
power plant and corresponding emission of CO2 would have occurred due to combustion of coal.
A.4.3.1 Estimated amount of emission reductions over the chosen crediting period:
Operating CO2 Emission Reductions

Years (tones of CO2)
April 2007- March 2008 28176.61
April 2008- March 2009 32912.57
April 2009- March 2010 37648.53
April 2010- March 2011 37648.53
April 2011- March 2012 37648.53
April 2012- March 2013 37648.53
April 2013- March 2014 37648.53
April 2014- March 2015 37648.53
April 2015- March 2016 37648.53
April 2016- March 2017 37648.53
Total estimated reductions (tonnes of CO2 e) 362277.40
Total number of crediting years 10

Annual average over the crediting period of 36227.740
estimated reductions (tonnes of CO2 e)
A.4.4. Public funding of the small-scale project activity:
No public funding from parties included in Annex I to the UNFCCC, is available to the project.
A.4.5. Confirmation that the small-scale project activity is not a debundled component of a larger
project activity:
According to Appendix C of Simplified Modalities & Procedures for small scale CDM project activities,
‘Debundling’ is defined as the fragmentation of a large project activity into smaller parts. A small-scale
project activity that is part of a large project activity is not eligible to use the simplified modalities and
procedures for small-scale CDM project activities.
A proposed small-scale project activity shall be deemed to be a debundled component of a large project
activity if there is a registered small-scale CDM project activity or an application to register another
small-scale CDM project activity:
With the same project participants;
In the same project category and technology/measure;
Registered within the previous 2 years; and
Whose project boundary is within 1 km of the project boundary of the proposed small-scale activity
at the closest point.
None of the above mentioned criteria holds for the small scale project activity. So it can be concluded to
be not a debundled component of a larger project activity.
SECTION B. Application of a baseline methodology:
B.1. Title and reference of the approved baseline methodology applied to the small-scale project
activity:
Title: Grid connected renewable electricity generation
Reference: Category I.D of Appendix B of the simplified M&P for small-scale CDM project activities of
the UNFCCC CDM website
This is a rice husk based power project and falls under the category of Renewable Energy Projects as
per Appendix B of the simplified M&P for small-scale CDM project activities of the UNFCCC CDM
website.
Details of approved methodology for baseline calculations for small scale CDM projects of Category
I.D [Version 09 : July 28, 2006] is specified in Appendix B of the simplified M&P for small-scale CDM
project activities of the UNFCCC CDM website.
B.2 Project category applicable to the small-scale project activity:
The project activity’s fit to category I.D of small scale CDM project activities has been explained in
section A.4.2. It meets the applicability criteria for the same and can use a baseline methodology provided
for the specific kind of project under the category I.D in the Appendix B of the simplified modalities and
procedures for small-scale CDM project activities
Appendix B of the simplified M&P for small-scale CDM project activities of the UNFCCC CDM
website, provides guidelines for preparation of Project Design Document (PDD) including baseline
calculations. The same is available for Category I.D projects.
As per paragraph 9 under Category I.D. in Appendix B of the Simplified M&P for small scale CDM
project activities (Version 09 : July 28, 2006), the baseline is the kWh produced by the renewable
generating unit multiplied by an emission coefficient (measured in kg CO2equ/kWh) calculated in a
transparent and conservative manner as:
(a) A combined margin (CM), consisting of the combination of operating margin (OM) and build margin
(BM) according to the procedures prescribed in the approved methodology ACM0002. Any of the four
procedures to calculate the operating margin can be chosen, but the restrictions to use the Simple OM and
the Average OM calculations must be considered
OR
(b) The weighted average emissions (in kg CO2equ/kWh) of the current generation mix. The data of the
year in which project generation occurs must be used.
In the project activity scenario, electricity will be generated by a biomass based power plant. Moreover,
electricity so generated, will be fed to an isolated distribution system (mini-grid) owned by JNL to meet
the electricity demand of JNL’s steel plant division at Siltara. The management of MUUL considered
most of the risk aspects associated with the implementation of the project activity, which have been
elucidated in Section B.3. They have also considered the following alternative means to cater to the
power demands of the power intensive steel plant division of JNL:
Alternative 1: Import of power from the Chhattisgarh state electricity grid

Alternative 2: 100% Coal based power plant of MUUL
Alternative 3: 100% Diesel based power plant of MUUL.
Alternative 4: Project activity without CDM benefits.
Alternative 1: Import of power from the Chhattisgarh state electricity grid
In absence of the project activity, the power requirement of JNL could have been met through importing
power from Chhattisgarh state electricity grid. This alternative is in compliance with all applicable legal
and regulatory requirements and does not need any significant additional investment. Although imported
power from the grid was used to meet part of the electricity requirement of the existing facility of JNL
before the expansion activities, imported power from grid cannot be solely relied upon for catering to the
electricity requirement of the power intensive integrated steel plant like JNL especially after the
expansion of its operations. Inspite of that, since imported power from the grid would require minimum
investment, it would have been a financially more attractive option for meeting the power requirement of
JNL. Therefore the Alternative 1 is considered further for arriving at the baseline scenario.
Alternative 2: 100% Coal based power plant of MUUL
In absence of the project activity, the power requirement of JNL could have been met through an 18 MW
coal based power plant. This alternative is in compliance with all applicable legal and regulatory
requirements. JNL has its own huge reserves of coal in Raigarh near Raipur, coal from where is proposed
to be sold to MUUL for use in its biomass based power plant in case of exigencies. The same coal could
be used for generating power in a coal based power plant. Moreover, most of the integrated steel plants of
India like plants of Steel Authority of India Limited, Jindal Steel and Power Limited, Tata Iron and Steel
Company Limited, cater to the majority of their power demand from coal based power plants. For an
energy intensive industry like a steel plant, a coal based captive power plant is the most reliable source of
power. Therefore, this alternative may be a part of the baseline.
Therefore the Alternative 2 is considered further for arriving at the baseline scenario.
Alternative 3: 100% Diesel based power plant of MUUL.
This is not a realistic and credible alternative to be adopted because of the higher generation cost of diesel
based power (around Rs. 3.5-4.6 per kWh). Diesel generators are mainly used as a back up system during
starting up of power plants. Therefore in absence of project activity, it was unlikely for MUUL to
implement Alternative 3 and so alternative 3 is excluded from further consideration for arriving at the
baseline scenario.
Alternative 4: Project activity without CDM benefits.
This alternative is in compliance with all applicable legal and regulatory requirements. However, this
alternative has associated barriers to its implementation which prevented MUUL to implement the project
activity (Please refer to Barrier Analysis in Section B.3 below for details). The consideration of the CDM
benefits (GHG abatement and financial benefits) played a key role in MUUL’s decision to proceed with
the project activity. Therefore alternative 5 would not be a credible and realistic alternative option for
MUUL to implement and can be excluded from further consideration as a possible baseline scenario.
It is evident from the above discussion that either of “Alternative 1: Import of power from the
Chhattisgarh state electricity grid” and “Alternative 2: 100% Coal based power plant of MUUL”
can be a plausible baseline option. However, “Alternative 1: Import of power from the
Chhattisgarh state electricity grid” requires the minimum investment. On the other hand, unit
cost of electricity generation for “Alternative 2: 100% Coal based power plant of MUUL” would
be much lower compared to imported electricity from the CSEB grid which would cost JNL INR
3.15/ kWh. However as grid based power has lower emission factor compared to that from coal based
power generation, in order to arrive at a conservative estimate of the baseline emissions, Alternative 1:
Import of power from the Chhattisgarh state electricity grid” has been considered as the baseline scenario
for the project activity under consideration.
The MUUL project activity will displace an equivalent amount of electricity that would have been drawn
from the CSEB grid which falls under the Western Regional electricity grid. In the project case, the
proposed rice husk based power plant will generate electricity at 7.5 MW. In view of the predicted
power deficit status of the state in future, a delay effect in future power plants may creep in due to the
occurrence of this project although to a limited extent. Since the displaced electricity generation is the
element that is likely to affect both the operating margin in the short run and the built margin in the long
run, electricity baselines should reflect a combination of these effects. Therefore an ideal baseline
approach is envisaged as the one that combines both Operating and Build Margin as prescribed in first
alternative given in paragraph 9 under Category I. D of the UNFCCC M&P for small scale projects. In
case of the project activity, a combined margin (CM) emission factor, calculated according to the
procedures prescribed in the approved methodology ACM0002 and publicly available in the official
website of Central Electricity Authority (CEA), has been used for arriving at the baseline.
Key information and data used to determine the baseline scenario
Serial Variable Parameters Data sources

number
01 Enet, y Electricity evacuated to JNL MUUL maintained data
substation in a year y
02 EFGRID Combined margin emission factor CEA published CDM –

(in tCO2/MWh) of the Southern Carbon dioxide baseline
Regional Electricity grid database5
(calculated ex-ante and kept
constant for the entire crediting
period)
B.3. Description of how the anthropogenic emissions of GHG by sources are reduced below those
that would have occurred in the absence of the registered small-scale CDM project activity:
5
Source: http://www.cea.nic.in/planning/c%20and%20e/Government%20of%20India%20website.htm
That the project activity qualifies to use simplified methodologies has been justified in Section A.4.2
where it has been shown to qualify as a small scale CDM project of Category I.D.
As per the decision 17/cp.7 paragraph 43, a CDM project activity is additional if anthropogenic emissions
of greenhouse gases by sources are reduced below those that would have occurred in the absence of the
registered CDM project activity. This project activity involves electricity generation from renewable
energy source rice husk with net zero CO2 emission from rice husk combustion since rice husk is carbon-
neutral. An analysis of the coal co-fired with biomass (in case of exigency) under the project activity
gives the baseline emission factor in kgCO2/kWh for the crediting period, and the GHG (CO2) emission
reductions that the project activity will achieve will be through substitution of an equivalent supply from
a coal based power plant, and which would not happen in absence of the project activity. Since, the
biomass contains only negligible quantities of other elements like Nitrogen, Sulphur etc. release of other
GHGs are considered as negligible. The project activity is not mandated by the law either from the Centre
or the State. Although the MNES and the state government are promoting such renewable energy
endeavours, there is no legal binding on either the state or the promoter to come up with such biomass
based power plant.
Barriers and Additionality
Attachment A to Appendix B of the simplified M&P for small-scale CDM project activities of the
UNFCCC CDM website asks for an explanation to show that the project activity would not have occurred
anyway due to at least one of the following barriers:
(a) Investment barrier
(b) Technological barrier
(c) Barrier due to prevailing practice
(d) Other barriers
Investment Barriers
1) Increase in cost of power generation: The cost of rice husk during the project conception stage was
around INR 360/ton. The then prevailing statistics of biomass based power generation in Chhattisgarh
signified that two biomass based power plants had been commissioned, permission from Government had
been granted to seven parties (inclusive of MUUL) and applications for obtaining permission for setting
up biomass based power plants were under consideration for seven proponents. Such a trend indicated
that there would be a significant rise in the biomass demand for power generation over the years. MUUL
anticipated that since mainly rice husk is available as a waste biomass in Chhattisgarh (called the ‘rice
bowl of India’), rise in waste biomass demand for power generation would signify a consequent increase
in the rice husk demand, thereby resulting in a parallel rise in the rice husk price. This was further
substantiated by the increasing rice husk price trend in Chhattisgarh. The cost of rice husk increased to
around INR 550/ton in the second half of 2003. At present, the price of rice husk is in the range of INR
1100/ton. This escalation in the biomass prices is because of increase in demand of rice husk as a fuel and
also increase in its transportation cost. Apart from that, with the successful operation of biomass based
power generation, the supply of biomass has become an organized business for the suppliers who are bent
upon increasing their profit margins through rice husk sale.
Considering 100% rice husk based power generation, annual requirement of rice-husk for 7.5 MW of
power generation would be 68400 ton.
• Annual expenditure on rice-husk (@ INR 360/ton) = INR 24624000

• Annual expenditure on rice-husk due to increased cost (@ INR 550/ton) = INR 37620000
• Annual expenditure on rice-husk due to increased cost (@ INR 1100/ton) = INR 75240000
• Increase in expenditure due to increased cost of biomass from 2001 to 2003 = INR 37620000 –
INR 24624000 = INR 12996000
• Increase in expenditure due to increased cost of biomass from 2003 to 2005 = INR 75240000 –
INR 37620000 = INR 37620000 which implies rice husk price has almost doubled in a period of
two years.
The above data signify that there has been a substantial rise in the rice husk price as well as a substantial
increase in the rate of increment over a period of 4 years.
Due to increase in rice husk price, the estimated cost of power generation has also increased. With rice
husk priced at INR 625/MT as was the case in 2004, the cost of biomass based power generation would
have been INR 1.22/kWh. Based on present day price of rice husk at INR 1100/MT, the cost of biomass
based power generation would be INR 1.78/kWh.
Instead of a biomass based power plant, if the project proponent had gone ahead with a 7.5 MW coal
based power plant, the cost of generation of electricity would have been INR 1.34/ kWh based on cost of
coal at INR 750/ MT. So, setting up of a coal based power plant would have been a financially more
viable option for the project proponent.
This increase in cost of biomass and the consequent increase in cost of power generation, will be
significantly compensated by the proposed carbon financing and will help to improve the sustainability of
the project which will otherwise be rendered financially unstable.
2) Possible increase in transportation cost of biomass: MUUL apprehended that with the patronization of
the Government and with the potential CDM revenue from biomass based power generation projects in
view, more similar projects may be coming up in Chhattisgarh in the future since Chhattisgarh is well-
known as the ‘rice bowl of India’. In view of the same there is a possibility of inadequacy of rice husk
supply from the vicinity and hence MUUL has provisioned for the same by keeping open the option of
transporting rice husk from distant locations and through energy plantation. This apprehension of MUUL
was further substantiated by the statistics of biomass based power plants in Chhattisgarh, that had been
accorded Government approval by 2002. In a scenario of higher demand in comparison to the availability
in Chhattisgarh, MUUL will have to procure the biomass for sustained operation of its power plant from
distant locations, thereby incurring additional expenses in transportation of the biomass from distant
locations.
Institutional Barrier(s)
CREDA had accorded permission for installation of the 7.5 MW biomass based power plant of MUUL in
March 2002 and in relation to that, had advised MUUL to acquire all permission/clearances/amenities
from other relevant departments of the Government and to execute Power Purchase Agreement (PPA)
with CSEB. But MUUL could not obtain all the necessary clearances in an appropriate time, one of them
being the Consent to Establish from Chhattisgarh Energy Conservation Board (CECB). In 2003, CREDA
notified MUUL that even after a long period, the progress of MUUL on installation of the biomass power
plant was quite unsatisfactory. CREDA also advised MUUL to expedite their efforts for installation of the
project and furnish monthly progress report regularly to CREDA office latest by 5th of every month,
mentioning the targeted date for commissioning of the plant failing which the permission from CREDA
may be treated as cancelled. Cancellation of the permission by CREDA, would necessitate re-submission
for approval for the same project activity to CREDA, thereby getting into the risk of undefined delay for
the institutional procedures involved. MUUL was forced to progress with installation in view of the
above, even before the financial closure for the project activity was achieved.
In case MUUL had proposed to set up a coal based power plant, MUUL would not require to obtain
clearances from any association or regulatory body like CREDA where a time-schedule for project
implementation would be stipulated, failing which the clearance could be cancelled. Therefore, there
would have been no risk involved in obtaining approval from any regulatory authority due to delay in
commissioning of the project as was faced by MUUL in case of establishing the biomass based power
plant.
Other barrier(s)
Apart from the above mentioned barriers, there are certain technological difficulties in using biomass as a
fuel:
• Uncertainties related to achievement of higher steam temperature and pressure parameters by

using rice husk as primary fuel because it tends to stick to the boiler tube surface.
• High moisture content of biomass in the monsoon posing serious problems in fuel efficiency and
also increasing the net cost in power generation.
• Need to charge additional bed materials (i.e. refractory materials) in order to maintain the
required bed height since the ash percentage in rice husk is low. Such usage of costly bed
materials has created an additional financial burden on MUUL.
• Transportation of rice husk needs special protective measure in order to avoid undue losses.
Running hours for the equipment for rice husk transfer inside the plant will be more because of
low specific gravity of rice husk. This will increase the auxiliary consumption of electrical energy
of the rice husk based power plant of MUUL.
Compared to project activity a coal based power plant would have been a less technologically advanced
alternative with lower risks associated with performance uncertainty, but would have led to higher GHG
emissions.
The project proponent plans to bring in the expertise of people in the field of power generation to further
develop the technology for effective utilisation of rice husk as fuel in boilers.
Barriers due to prevailing practice:
Rice husk based power plants are not a prevailing practice in the Chhattisgarh scenario. This is one of the
first few of such projects in the state. Most of the other projects have been taken up as potential CDM
projects; the one of Vandana Vidhyut Limited at Bilaspur, Chhattisgarh has also got registered as a CDM
project activity.
85-90% of the power generation in Chhattisgarh is from coal based thermal power plants. There are huge
coal reserves in the vicinity, offering cheap pithead power generation opportunities. 84% of India's coal is
in Chhattisgarh and two other States. South Eastern Coalfields Ltd, Bilaspur is in the process of doubling
its production from 35 million tonnes to 70 million tonnes per annum.6 The business as usual (BAU)
scenario in Chhattisgarh may be considered as thermal power generation using coal as 85-90% of the
power generation comes from such sources. In the similar project sector, socio-economic environment,
geographic conditions and technological circumstances, the project activity uses a technology, which
shows very limited penetration.
It has been clearly established from the above discussion that the project activity faces hindrances in its
implementation and successful operation. Some of these barriers have the potential to even disrupt the
operation of the biomass based power plant thereby damaging the commercial viability of the project
activity.
However with objective of setting up a renewable energy power plant and thereby availing the credits
from GHG emission reduction, the management of MUUL has decided on going ahead with the project
option. The corporate decision to invest
• in overcoming the barriers encountered in the project activity implementation
• in the CDM project activity
has been guided by the anthropogenic greenhouse gas emission reductions the project activity would
result in and the associated carbon financing the project activity would receive through sale of Certified
Emission Reductions under the Clean Development Mechanism.
Based on the baseline calculation methodology, it is calculated that (see section E for the calculation) the
project activity will avoid 362277.40 tonnes of CO2 equivalent emissions in a 10 year credit period, by
displacing electricity generated from fossil fuel coal. Hence, the project activity is not a baseline scenario
and without the project activity there will be emission as per the carbon content of the coal that would
have been used as the fuel for the 7.5 MW power plant in absence of the project activity.
6
Source: http://www.Chhattisgarh.nic.in/power
B.4. Description of how the definition of the project boundary related to the baseline
methodology selected is applied to the small-scale project activity:
The project boundary as specified under Category I.D of small scale CDM project activities in
Appendix B of the simplified M&P for the same shall encompass the physical, geographical site
of the renewable energy generating unit and the equipment that uses the electricity produced.
For the project activity the project boundary is from the point of fuel supply to the point of power
export to the substation where the project proponent has a full control. Thus, boundary covers
fuel storage and processing, boiler, steam turbine generator and all other accessory equipments,
the point in JNL substation to which the generated electricity will be evacuated, the land over
which energy plantation would be done (if required).
Since, the project would not have any impact on transmission and distribution losses it is not
included in the project boundary. Using part of the available biomass, being wasted earlier, in the
project, will not affect current needs for other fuels and therefore the emissions from any other
fuel-use are not included in the system boundary.
Flow chart and project boundary is illustrated in the following diagram [the blue line demarcates the boundary]:
CO 2 SEQUESTRATED PROJECT
BOUNDARY
GREEN PLANTS
BIOMASS
STORAGE AUXILLIARY
CONSUMPTION
Coal
ELECTRICITY
BOILER STEAM TURBINE ELECTRICITY TO JNL SUBSTATION
GENERATOR
BRICK
CO2 ASH MANUFACTURING
GENERATED DUE PLANT OF JNL.
TO COMBUSTION
OF BIOMASS
B.5. Details of the baseline and its development:
B.5.1 Specify the baseline for the proposed project activity using a methodology specified in the
applicable project category for small-scale CDM project activities contained in Appendix B of the
simplified M&P for small-scale CDM project activities:
In absence of the project activity, coal based power generation is the most viable option to cater to the
power requirement of JNL, which has been already established in Section B.3. However as grid based
power has lower emission factor compared to that from coal based power generation, to be conservative
“Alternative 1: Import of power from the Chhattisgarh state electricity grid” has been considered as the
baseline scenario in this project activity.
Considering the multilayered dispatch system in India, the Western Regional Grid has been selected as
the reference grid system where an equivalent amount of electrical energy will be replaced by the
implementation of the project activity to maintain transparency and conservativeness. Since the displaced
electricity generation is the element that is likely to affect both the operating margin in the short run and
the build margin in the long run, electricity baselines should reflect a combination of these effects.
Therefore an ideal baseline approach is envisaged as the one that combines both Operating and Build
Margin as prescribed in first alternative given in paragraph 9 under Category I. D of the UNFCCC M&P
for small scale projects.
In case of the project activity, a combined margin (CM) emission factor, consisting of the combination of
operating margin emission factor and build margin emission factor, calculated according to the
procedures prescribed in the approved methodology ACM0002 and publicly available in the official
website of CEA, has been used for arriving at the baseline. The simple operating margin emission factors
from 2000 to 2005 (inclusive of imports) and the build margin emission factor (not adjusted for imports)
for the Western Regional Electricity grid, as per CEA published data, has been provided below.
Simple Operating Margin (tCO2/MWh) (incl. Imports)

2000-01 2001-02 2002-03 2003-04 2004-05
Using approach (c) on p. 4 of
West 0.98 1.01 0.98 0.99 1.01 ACM0002 / Ver 06
Average simple operating margin emission factor for the Western Regional electricity grid = (0.98 + 0.99
+ 1.01)/3 t CO2/MWh= 0.99 t CO2/MWh.
Build Margin (tCO2/MWh) (not adjusted for imports)

2000-01 2001-02 2002-03 2003-04 2004-05
West 0.78
Calculation of combined margin
As per ACM 0002 (Version 06, Sectoral Scope: 01, 19 May 2006), the combined margin emission factor
should be calculated as the weighted average of the Operating Margin emission factor (EFOM,y) and the
Build Margin emission factor (EFBM,y):
EFy = wOM ⋅ EFOM , y + wBM ⋅ EFBM , y
where the weights wOM and wBM, by default, are 50% (i.e., wOM = wBM = 0.5)
Therefore, combined margin emission factor (EFy) for the Western Regional Electricity grid =
0.5×0.99 + 0.5×0.78 = 0.89 t CO2/MWh
For the project activity under consideration, the combined margin emission factor for Western Regional
Electricity grid has been calculated ex-ante and will be kept constant for the entire crediting period.
Since there is a gap in demand and supply scenario in Western Regional electricity grid, the export of
power to Western Regional grid will replace or get absorbed to partially fulfil the grid power requirement.
If the same amount of electricity is generated by a mix of coal and gas based power project, it will add to
the emissions that is getting reduced by the project activity. Hence, the baseline calculated using above
methods/ scenarios would represent the anthropogenic emissions by sources (coal and gas power plants)
that would occur in absence of the project activity.
B.5.2 Date of completing the final draft of this baseline section (DD/MM/YYYY):
09/02/2007
B.5.3 Name of person/entity determining the baseline:
Experts and consultants of MUUL

SECTION C. Duration of the project activity / Crediting period:
C.1. Duration of the small-scale project activity:

>>
C.1.1. Starting date of the small-scale project activity:
21/12/2004
C.1.2. Expected operational lifetime of the small-scale project activity:
20 years
C.2. Choice of crediting period and related information:

>>
C.2.1. Renewable crediting period:

>>
C.2.1.1. Starting date of the first crediting period:

>>
C.2.1.2. Length of the first crediting period:

>>
C.2.2. Fixed crediting period:
C.2.2.1. Starting date:

01/04/2007
C.2.2.2. Length:
10 years
SECTION D. Application of a monitoring methodology and plan:

>>
D.1. Name and reference of approved monitoring methodology applied to the small-scale project
activity:
According to Appendix B of the simplified M&P for small-scale CDM project activities of the UNFCCC
CDM website, the project has been identified to belong to Category I.D [renewable electricity generation
for a grid]. Paragraph 9 under Category I.D of the same document specifies that for the said category of
CDM project, ‘Monitoring shall consist of metering the electricity generated by the renewable
technology. In the case of co-fired plants, the amount of biomass and fossil fuel input shall be
monitored’.
D.2. Justification of the choice of the methodology and why it is applicable to the small-scale
project activity:
Generation of electricity using biomass as fuel leads to mitigation of GHG emissions from coal-based
power generation in the baseline scenario. In order to monitor the mitigation of GHG emission due to
project activity of MUUL, the total electricity generated and the net electricity evacuated to JNL
substation (a mini-grid) will be measured. The net electricity supplied to JNL by the project activity
multiplied by the CO2 emission factor of the Western Regional electricity grid will form the baseline for
the project activity. The project may co-fire coal along with biomass (in case of exigencies) and hence
there will be monitoring of the amount of coal input as well as emission factor for the same. Thus the
monitoring methodology under Category I.D of the Appendix B of the simplified M&P for small-scale
CDM project activities of the UNFCCC CDM website is aptly applicable to the project activity.
Description of the Monitoring Plan
The Monitoring and Verification (M&V) procedures define a project-specific standard against which the
project's performance (i.e. GHG reductions) and conformance with all relevant criteria will be monitored
and verified. It includes developing suitable data collection methods and data interpretation techniques for
monitoring and verification of GHG emissions with specific focus on technical / efficiency / performance
parameters. It also allows scope for review, scrutiny and benchmarking of all these information against
reports pertaining to M & V protocols.
The M&V Protocol provides a range of data measurement, estimation and collection options/techniques
in each case indicating preferred options consistent with good practices to allow project managers and
operational staff, auditors, and verifiers to apply the most practical and cost-effective measurement
approaches to the project. The aim is to enable this project have a clear, credible, and accurate set of
monitoring, evaluation and verification procedures. The purpose of these procedures would be to direct
and support continuous monitoring of project performance/key project indicators to determine project
outcomes, greenhouse gas (GHG) emission reductions.
GHG SOURCES
Direct On-Site Emissions
Direct on-site emissions after implementation of the project arise from the burning of rice husk in the
boiler. These emissions mainly include CO2. However, the CO2 released equals the amount of CO2 taken
up by the equivalent paddy plantation / green biomass during their growth, therefore no net CO2
emissions occur. However, the biomass availability varies seasonally. Adequate storage is required for
months to ensure sustained supply of biomass. Methane emissions may only occur under anaerobic
conditions in such storage. This is not expected to contribute significantly to GHG emissions even under
anaerobic conditions.
In principle nitrous oxide (N2O) emissions could also arise from storage. However, no data on emission
from storage is available. We assume the amount of CH4 and nitrous oxide emissions formed due to
biomass storage to be comparable to the amount of CH4 and N2O emissions arising from biomass when
left on the field. As a consequence, the CH4 and N2O emissions will not be influenced by the project and
will therefore not be taken into account for monitoring.
Since the rice husk is co-fired with coal in case of exigencies, the maximum usage of coal being restricted
to 25% by mass, the other direct on-site emission due to combustion of coal in the boiler should be
considered as project activity emission and should be subtracted from the baseline emissions. Algorithm
has been provided below in Section E.1.2.1 for accounting for the project activity emissions arising from
combustion of co-fired coal in case of exigencies.
Direct Off-Site Emissions
Although the project proponent proposes to use waste biomass mainly, the project proponent has also
kept the avenue for energy plantation for the exclusive purpose of ensuring sustained supply of biomass
for the project activity. Energy cultivation will result in an additional uptake of CO2 thereby acting as a
carbon sink. For arriving at a conservative estimate of the emission reductions, CO2 uptake by the energy
plantation has not been added to the baseline emissions. But N2O emission due to possible use of
synthetic fertilizers for the energy cultivation and the corresponding CO2 equivalent emissions have been
accounted for as direct off-site emission arising out of the project activity.
Indirect On-Site Emissions
The indirect on site GHG source is the consumption of energy and the emission of GHGs involved in the
construction of rice husk based power plant.
Considering the life cycle assessment of the total power generated and the emissions to be avoided in the
life span of 15 –20 years, emissions from the above-mentioned source are too small and hence neglected.
No other indirect on-site emissions are anticipated from the project activity.
Indirect Off-Site Emissions
For the project activity under consideration, indirect off-site emissions may arise due to the indirect N2O
emissions that may take place in case of use of any nitrogenous synthetic fertiliser for the possible energy
plantation of MUUL.
Indirect off-site GHG may also arise from the process of construction and erection of the transmission
lines from the nearest sub station, up to the point from where the project wheels the power.
Considering the life cycle assessment of the total power generated and the emissions to be avoided in the
life span of 20 years, emissions from this source are also too small and hence neglected.
Leakage
According to Appendix B of the simplified modalities and procedures for small-scale CDM project
activities, if the energy efficiency technology is equipment transferred from another activity or if the
existing equipment is transferred to another activity, leakage is to be considered.
Leakage in the project activity arises from the biomass transport. However, in the baseline, fossil fuel
(coal) transport can also be taken into account. Coal, in the baseline as well as in the project activity
scenario, would be procured from the coal reserves of JNL in Raigarh which is at a distance of around
180 km. Although biomass is proposed to be procured mainly from the nearby rice mills, but avenue has
also been kept to procure biomass from adjacent states as and when required, such that the maximum
distance over which biomass is required to be transported to the project activity site is around 300 km. On
an average, the distance over which coal has to be transported from the coal reserves of JNL to the project
site is much less than the average distance over which the biomass needs to be transported. It can be
rightly considered that carbon dioxide emission due to coal transport from the mines is much lower than
that due to biomass transport because, the distance of transportation is less and also lesser amount of coal
will be necessary to generate the same amount of energy and also specific gravity of coal is higher than
that of biomass enabling greater amount of coal than biomass transport in a truck in a single trip. In order
to arrive at a conservative estimate of emission reductions, emissions due to coal transport have not been
considered in the baseline and those due to biomass transport have been taken into account as project
emissions.
GHG performance parameter and the emission reductions achieved through the project activity will be
determined based on the following parameters:
• Quantum of electricity sold to JNL as measured by the main power meter at the 6.6/11 kV
substation of JNL
• Amount of coal co-fired with biomass in the project activity
• Quality i.e. net calorific value (NCVcoal) and total carbon content (Ccoal) of coal co-fired with
biomass under the project activity
• Emissions involved in transportation of biomass from different sources to the project activity site.
GHG performance parameter and the emission reductions achieved through the project activity will be
verified based on the following parameter(s):
• Invoices raised to JNL, based on meter readings that will also be covered in the regular finance
audit.
The instrumentation and control system for the fluidized bed combustion boiler and the turbogenerator
units will be of electronic instruments with pneumatic final control elements using the latest state of the
art technology namely microprocessor based single loop controllers and programmable logic controller
system along with computer based automation system for monitoring and control of the power plant from
the control room. All monitoring and control functions will be done as per the internally accepted
standards and norms of MUUL.
The instrumentation system for the project will mostly comprise microprocessor-based instruments of
reputed make with desired level of accuracy. All instruments will be calibrated and marked at regular
intervals so that the accuracy of measurement can be ensured all the time.
D.3 Data to be monitored:
a) Parameters required to be monitored to calculate the baseline emission
ID Data type Data variable Data unit Measured Recording Proportion How will the data For how Comment
Number (m), frequency of data to be archived? long is
calculated (c) be (electronic/paper) archived
or estimated monitored data to
(e) be kept?
1. Enet Energy Electricity evacuated to kWh m Hourly Total Electronic/Paper 2 years Measured by the
JNL substation after end main power meter
of at JNL substation
crediting
period
(CP)
2. Enet,y Energy Electricity evacuated to kWh c Annually Total Electronic/Paper 2 years Enet, y will be
JNL substation in a year after end calculated as the
y of sum of the hourly
crediting values electricity
period evacuated by
(CP) MUUL biomass
based power plant
to JNL substation,
for all the
operating hours in
the year y
b) Parameters required to be monitored to calculate the project emission
ID Data type Data variable Data Measured Recording Proportion How will the data be For how Comment
Number unit (m), frequency of data to be archived? long is
calculated monitored (electronic/paper) archived
(c) or data to be
estimated kept?
(e)
Parameters required to be monitored for estimation of GHG emissions due to co-firing of fossil fuel coal along with the biomass in case of exigencies under the
project activity
1. Acoal Fuel Amount of coal co- MT m Daily Total Electronic/Paper 2 years To be monitored at
Quantity fired with biomass after end purchase and use
into the boiler of of CP
the project activity
2.NCVcoal Fuel Net Calorific kCal/kg m Monthly Grab sample Electronic/Paper 2 years
MUUL has a coal
Quality Value of coal that after end
supply agreement
will be co-fired of CP
with JNL. Sample
with biomass
analysis of coal will
under the project
be done at the coal
activity
supplier end ie. JNL
3. Ccoal Fuel Carbon content of % Actual Monthly Grab sample Electronic/Paper 2 years
MUUL has a coal
Quality coal that will be sample after end
supply agreement
co-fired with testing of CP
with JNL. Sample
biomass under the
analysis of coal will
project activity
be done at the coal
supplier end ie. JNL
Parameters that are required to be monitored to account for project activity emissions due to any synthetic fertilizer utilization only in case of energy plantation (if
any)
4. NFERT Quantity Synthetic fertilzer kg m Annually 100% Electronic/Paper 2 years

To be monitored in
application rate to after end
case the project
energy cultivation of CP
proponent goes for
area per annum
any kind of energy
plantation and uses
any synthetic
fertilizer.
c) Parameters required to be monitored to calculate the leakage associated with transportation of biomass
ID Data type Data variable Data unit Measured (m), Recording Proportion How will the data For how
Comment
Number calculated (c) frequency of data to be be archived? long is
or estimated monitored (electronic/paper) archived
(e) data to be
kept?
1. N Quantitative Number of trucks c Annually Total Electronic/Paper 2 years
supplying biomass to after end
MUUL in a particular of
year crediting
period
(CP)
2. Source Qualitative The source/location NA NA With every NA Electronic/Paper 2 years
This data is meant
of from which the biomass truckload of after end
for verifying whether
biomass is being procured for biomass of CP
the biomass is being
each truck-load transported
procured from a
into the
sustainable source
project
without any leakage
activity site
involved
3. DTruck,i Quantitative Distance from which km e With every Total Electronic/Paper 2 years
Will be measured by
biomass is being truck of after end
the biomass supplier
procured for each truck- biomass of
and will be verified
load entering into crediting
by MUUL against
the premises period
the challan for
of MUUL (CP)
respective truckload,
mentioning the
source of the
biomass
4. D Quantitative Average distance over km c Annually Total Electronic/Paper 2 years
Calculated as:
which biomass is after end
transported in a of N
particular year crediting ∑D Truck , i

period D= i =1
(CP) N
5. LTruck,i Quantitative Load of biomass in each MT m With every Total Electronic/Paper 2 years
Will be measured by
truck truck of after end
the biomass supplier
biomass of
and will be verified
entering into crediting
by MUUL against
the premises period
the challan for
of MUUL (CP)
respective truckload,
mentioning the
source of the
biomass
6. LTruck Quantitative Average load of biomass MT c Annually Total Electronic/Paper 2 years
Calculated as:
in a truck in a particular after end
year of N
crediting ∑L Truck , i
period LTruck = i =1
(CP) N
D.4. Qualitative explanation of how quality control (QC) and quality assurance (QA) procedures are undertaken:
Data Uncertainty level of Are QA/QC I. Outline explanation why QA/QC procedures are or are
data procedures planned for not being planned.
(High/Medium/Low) these data?
D.3.(a)1, 2 Low Yes This data will be used as supporting information to calculate baseline emissions.
D.3.(b)1 to 6 Low Yes This data will be used for calculation of project activity emissions
4
D.3.(c)1 to 6 Low Yes This data will be used as supporting information to calculate baseline emissions.
D.5. Please describe briefly the operational and management structure that the project participant(s) will implement in order to monitor emission
reductions and any leakage effects generated by the project activity:
The Plant Manager is responsible for monitoring and archiving of data required for estimating emission reductions. He would be supported by the shift in-
charge who would continuously monitor the data logging and would generate daily, monthly reports.
D.6. Name of person/entity determining the monitoring methodology:
Experts and consultants of MUUL.

SECTION E.: Estimation of GHG emissions by sources:
The applicable project category from Appendix B i.e. Category I.D. does not indicate specific formulae
for calculation of the GHG emission reductions by sources.
E.1. Formulae used:

Not applicable
E.1.1 Selected formulae as provided in appendix B:

Formulae not provided in Appendix B.
E.1.2 Description of formulae when not provided in appendix B:
E.1.2.1 Describe the formulae used to estimate anthropogenic emissions by sources of GHGs due to
the project activity within the project boundary:
Formula used to calculate GHG emissions co-firing of fossil fuel coal along with the biomass in case
of exigencies under the project activity
Coal will be co-fired with the rice husk into the FBC boiler only in case of exigencies within the
permissible limit of 25% by mass of total fuel fired into the boiler. Considering the regular stable
availability of biomass in the vicinity of the project activity, instances of exigency is expected to be rare.
CO2 emissions due to combustion of coal co-fired only in case of exigencies can be considered as project
emission and subtracted from the baseline emission as and when required. In case of exigency the
emissions from coal co-firing can be estimated using the following formula:
PEcoal = Project emission from coal co-fired with biomass in case of exigencies
= Acoal × Ccoal × Oxidation Factor × (44/12)
Where,
Acoal - amount of coal co-fired with biomass in tonnes/annum
Ccoal – total carbon content of coal in %
Oxidation factor – IPCC oxidation factor for combustion of solid fuels = 98% (as per Reference Manual
of Revised 1996 IPCC guidelines)
For projecting the emission reductions, however project emissions due to coal co-firing in case of
exigencies has been considered to be zero, assuming the instances of exigency to be negligible.
Formula for estimation of GHG emissions due to any synthetic fertilizer utilization only in case of
energy plantation (if any)
N2ODirect -N = [(FSN + FAM + FBN + FCR) × EF1] + (FOS×EF2)
Where,
N2ODirect -N = Emission of N2O in units of Nitrogen

FSN = Annual amount of synthetic fertiliser nitrogen applied to soils adjusted to account for the amount
that volatilises as NH3 and NOx
FAM = Annual amount of animal manure nitrogen intentionally applied to soils adjusted to account for the
amount that volatilises as NH3 and NOx. This is not applicable for MUUL’s energy plantation plan.
FBN = Amount of nitrogen fixed by N-fixing crops cultivated annually. This is not applicable for MUUL’s
energy plantation plan.
FCR = Amount of nitrogen in crop residues returned to soils annually. This is not applicable for MUUL’s
energy plantation plan.
FOS = Area of organic soils cultivated annually. This is not applicable for MUUL’s energy plantation
plan.
EF1 = Emission factor for emissions from N inputs (kg N2O-N/kg N input) = IPCC Default Value of EF1
(in kg N2O-N/kg N) = 1.25% = 0.0125
EF2 = Emission factor for emissions from organic soil cultivation (kg N2O-N/ha-yr). This is not relevant
to MUUL’s energy plantation plan.
Conversion of N2O-N emissions to N2O emissions for reporting purposes is performed by using the
following equation:
N2O = N2ODirect -N × 44/28
As per relevance to the energy plantation plan of MUUL, the above equation can be modified as follows:
N2ODirect -N = FSN × EF1
FSN can be calculated as
FSN = NFERT × (1 – FracGASF)
NFERT = Total amount of synthetic fertiliser consumed annually.

FracGASF = Fraction that volatilises as NH3 and NOx = 10%
Therefore, direct soil emissions due to utilization of synthetic fertilizer for energy plantation will be given
by:
EN2O_Direct = NFERT × (1 – FracGASF) × EF1 × (44/28) × GWPN2O
Where,
GWPN2O is the global warming potential of N2O in t CO2 e / t N2O = 310 t CO2 e / t N2O
The following algorithm7 will be used for estimation of the indirect N2O emissions from possible
synthetic fertiliser application for the energy plantation of MUUL and the equivalent CO2
emissions:
N2Oindirect-N = N2O(G) + N2O(L) + N2O(S)
Where,
7
Reference: Chapter 4 of IPCC Good Practice Guidance and Uncertainty Management in National Greenhouse Gas
Inventories
N2Oindirect-N = Emissions of N2O in units of nitrogen

N2O(G) = N2O produced from volatilisation of applied synthetic fertiliser and animal manure N, and its
subsequent atmospheric deposition as NOx and NH4 (kg N/yr)
N2O(L) = N2O produced from leaching and runoff of applied fertiliser and animal manure N (kg N/yr).
This emission is not applicable for the possible energy plantation plan of MUUL since there are no
aquatic systems around the project activity site which may lead to the leaching and runoff of applied N.
N2O(S) = N2O produced from discharge of human sewage N into rivers or estuaries (kg N/yr). This
emission is not applicable for the possible energy plantation plan of MUUL
Conversion of N2O-N emissions to N2O emissions for reporting purposes is performed by using the
following equation:
N2O = N2OIndirect -N × 44/28
⎡ ⎤
N2O(G) -N = ⎢( N FERT × FracGASF ) +
⎣
∑ (N
T
(T ) × Nex (T ) ) × FracGASM ⎥ × EF4
⎦
Where,
N2O(G) = N2O produced from atmospheric deposition of N, kg N/yr

NFERT = total amount of synthetic nitrogen fertiliser applied to soils, kg N/yr
FracGASF = fraction of synthetic N fertiliser that volatilises as NH3 and NOx, kg NH3-N and NOx-N/kg of
N input = 0.01 (Default Value as per IPCC Guidelines)
∑T
( N (T ) × Nex(T ) ) = total amount of animal manure nitrogen excreted in a country, kg N/yr. This is not
applicable for the energy plantation plan of MUUL.

FracGASM = fraction of animal manure N that volatilises as NH3 and NOx, kg NH3-N and NOx-N/kg of N
excreted
EF4 = emission factor for N2O emissions from atmospheric deposition of N on soils and water surfaces,
kg N2O-N/kg NH3-N and NOx-N emitted = 0.01 kg N2O-N/kg NH3-N and NOx-N emitted (IPCC Default
value)
Therefore, indirect N2O emissions from possible synthetic fertiliser application for the energy plantation
of MUUL and the equivalent CO2 emissions can be calculated as:
EN2O_Indirect = NFERT × FracGASF × EF4 × (44/28) × GWPN2O
E.1.2.2 Describe the formulae used to estimate leakage due to the project activity, where required,
for the applicable project category in appendix B of the simplified modalities and procedures for
small-scale CDM project activities
Formula to estimate GHG emissions due to transportation of biomass from different sources to the
biomass based power plant of MUUL
Project activity emissions due to biomass transportation can be calculated considering that:
• biomass is transported from the sources to the project activity site in trucks running on diesel as
fuel
• mileage of trucks running on diesel is 4 km/litre
NT = mbiomass / LTruck
Where,
NT - number of return trips of a truck involved in transportation of biomass fired to the boiler
mbiomass – mass of biomass annually fired into the boiler in the project activity, in tonnes which has
been considered to be 68400 tonnes
LTruck – average load of biomass per truck, in tonnes which has been considered to be 5.5 tonnes for
estimation of leakage
Therefore,
NT = 68400/5.5 ≈ 12436
Now, ADiesel = 2 × D/ Mileage
Where,
ADiesel – consumption of diesel by a truck in one trip, in litres
D – Average distance over which biomass is transported in a particular year, in km. In order to arrive
at a conservative estimate of emission reductions, maximum distance covered in transportation of
biomass from the sources to the site is considered to be 300 km.
Mileage – mileage of the truck, in km/litre = 4 km/ litre

Therefore,
ADiesel = 2 × 300/4 = 150 litres
TDiesel = ADiesel × NT × ρDiesel / 1000
Where,
TDiesel – total diesel consumption per annum in transportation of biomass fired annually to the boiler,
in kg
ρDiesel - density of diesel, in kg/m3 = 850 kg/m3
Therefore,
TDiesel =150 × 12436 × 850 / 1000 = 1585636.364 kg
So, CO2 emission (in tonnes) per annum due to transport of biomass to the project activity site =
IPCC Default emission factor for diesel (kgCO2/kg) × TDiesel / 1000
Therefore,
Leakage (in tonnes of CO2) = CO2 emission due to transportation of biomass from different sources,
in tonnes = 3.13759 × 1585636.364 / 1000 = 4975.08
E.1.2.3 The sum of E.1.2.1 and E.1.2.2 represents the small-scale project activity emissions:
Sl. Operating Project Activity Emissions(tonnes of CO2 e)

No. Years
1. April 2007- March 2008 4975.08
2. April 2008- March 2009 4975.08

3. April 2009- March 2010 4975.08
4. April 2010- March 2011 4975.08
5. April 2011- March 2012 4975.08
6. April 2012- March 2013 4975.08
7. April 2013- March 2014 4975.08
8. April 2014- March 2015 4975.08
9. April 2015- March 2016 4975.08
10. April 2016- March 2017 4975.08
E.1.2.4 Describe the formulae used to estimate the anthropogenic emissions by sources of GHGs in
the baseline using the baseline methodology for the applicable project category in appendix B of the
simplified modalities and procedures for small-scale CDM project activities:
Coal based CPP is considered for baseline analysis and calculation of anthropogenic emissions by fossil
fuel (coal) during power generation. The baseline emission is calculated as below:
Formulae for estimation of baseline emission:
Net units of electricity generated by the biomass-based power plant (Enet, y) in MkWh= (Total electricity
generated by the power plant in the year y- Auxiliary Consumption of the power plant in the year y) =
EGEN, y - EAUX, y
Where,
EGEN, y - gross electricity generated by the power plant in year y, in MkWh
EAUX, y - auxiliary consumption of the power plant in year y, in MkWh and
y is any year within the crediting period of the project activity.
Therefore,
Baseline Emission (BEy) (in tonnes of CO2) = Enet, y × EFGRID / 1000
where,
BEy = Baseline Emissions due to displacement of electricity during the year y (in tons of CO2)
EFGRID = Emission Factor of the grid (in t CO2/ MWh)
E.2 Table providing values obtained when applying formulae above:
Sl. Operating Baseline Project Emission

No. Years Emissions(tonnes of Emissions Reductions
CO2 e) (tonnes of CO2 e) during the year
y ERy (tonnes
of CO2 e)
1. April 2007- March 2008
33151.69 4975.08. 28176.61
2. April 2008- March 2009 37887.65 4975.08. 32912.57

3. April 2009- March 2010 42623.61 4975.08. 37648.53
4. April 2010- March 2011 42623.61 4975.08. 37648.53
5. April 2011- March 2012 42623.61 4975.08. 37648.53
6. April 2012- March 2013 42623.61 4975.08. 37648.53
7. April 2013- March 2014 42623.61 4975.08. 37648.53
8. April 2014- March 2015 42623.61 4975.08. 37648.53
9. April 2015- March 2016 42623.61 4975.08. 37648.53
10. April 2016- March 2017 42623.61 4975.08. 37648.53

SECTION F.: Environmental impacts:
F.1. If required by the host Party, documentation on the analysis of the environmental impacts of
the project activity:
The assessment of Environmental Impact for the project activity has been carried out as required under
Environmental (Protection) Act 1986, Government of India, mandatory for expansion or modernization of
any activity or for setting up new projects listed in Schedule I of the notification.
As the project would utilize the rice husk for power generation and burn the same in a controlled manner,
this thereby eliminates the environmental consequences of fugitive emissions that arise due to the usual
methods of rice husk disposal i.e., open air burning or dumping.
The SOx, and NOx, emissions from rice husk combustion will be much lower compared to the
conventional fossil fuel, coal, and is well within the limits as prescribed by the different state and national
environmental statutes.
The disposal of fly ash is properly done in order to prevent it from escaping to the atmosphere or entering
the local waterways via run off.
In addition to the above, monitoring of the following are done on a regular basis:
z Air emission from stack

z Ambient air quality
z Noise level monitoring
z Water quality
z Occupation health and safety
z Records of accidents
Summary of Environmental Impact
Evaluation of environmental impacts: The possible impacts of the project on the various environmental
parameters have been appraised in an EIA study conducted by MUUL. It reveals that the project will not
have any adverse environmental impacts. The impacts due to the project are positive after
implementation of the Environment Management Plan (EMP).
Effect on Biological Environment
The project operation will neither affect the biological environment in the study area nor in adjoining
areas. Under EMP, MUUL will develop a 15 to 30 m wide green belt around their factory premises which
will act as a buffer zone and will attenuate most of the noise pollution and fugitive emission from the
proposed project activity, besides acting as a sink for CO2 and other pollutants.
Effect on Water Quality
The existing quality of aquatic environment is satisfactory and the same has been observed from data
obtained for ground water in the vicinity. Project would not affect water quality of the nearby area in any
situation. The plant washings containing ash/lignite dust and floor washing will be discharged to ash
channels.
The heat cycle make up requirement for the power plant would be met from dimineralized water,
generating acidic and basic effluents, which would be neutralized in neutralization tank and finally would
be recycled in process or green belt development.
Boiler blowdown with high temperature will be cooled by mixing with powerhouse and service water
drains.
Waste water from dust extraction and suppression system along with surface drain settling ponds where
solid would separate and overflow, would be recycled.
Effect on Air Quality
The major sources of pollution from the proposed power plant will be boiler ash, boiler flue gases
containing suspended particulate matter (SPM), oxides of sulphur (SOx) and nitrogen (NOx).
The SPM as ash will be controlled by high efficiency Electro-Static Precipitator (ESP) that will be
3
installed at the exit of boilers to limit the SPM in the flue gas to less than 100 mg/Nm . Apart from that,
the technology employed should be so selected that it is based on low NOx burners and low furnace
temperature which suppress NOx production considerably. The SOx and NOx emissions are also less due
to presence of meagre amount of sulphur and nitrogen in the biomass fired into the boiler. A stack of
adequate height will be provided which further helps in fast dispersion of pollutants into the atmosphere,
thus, reducing their impact in the vicinity of the project area. The flue gases will be passed through ESP
before discharging into the atmosphere through the stack.
The EMP envisages periodical monitoring of the emissions from the stack, ambient air, work zone air
quality. All the emissions from the plant shall be controlled to meet the relevant standard set by
Chhattisgarh Environment Conservation Board (CECB). Any deviations from the original levels shall
indicate inefficient functioning of the ESP or higher sulphur content levels of the fuel. Remedial action
shall be taken immediately and efficacy ascertained. Thus with pollution abatement devices and proper
conduction of EMP, air pollution impacts due to running of power plant does not remain a matter for
concern.
Another source of air pollution is heat if it is above acceptable limits. Therefore, to minimize thermal
pollution, plant building will be designed for adequate air circulation through natural ventilation. In
addition, air conditioning systems will be provided for specific areas. Coolers will be installed at hot work
spots.
Effect on land environment/ soil
The evaluation of the impacts on the land environment indicates no detrimental effect due to project’s
activity. The ash removal system will be adequately sized to collect fly ash in the collectors. Use of
covered conveyers, wetting sprays at transfer points, sprinkling of haulways, treatment of storage pits
with polymeric compounds and enclosure of live piles will be provided singly or in combination to
control fugitive dusts from fly ash handling operations.
Effect of Noise pollution
Noise level rise due to operation of various equipments and transportation has minor impact on the
employees from the point of view of occupational hazard. A routine check up of noise contour in and
around the plant with Sound Pressures Level Meter will be done on regular basis to ensure that the noise
level is well under control around 85 dBA. Regular health check-up of workers will also be undertaken.
Solid Waste Management
The main problem of solid waste is the fly ash that will be generated in the process of power generation.
However the company will sell it to suitable vendors for commercial uses like building blocks, road
embankment, land filling etc.
Aesthetic environment
There will not be any detrimental effect on the aesthetic environment. The project is located in an
industrial area. The development of green belt by the industry would rather enhance the same in the
vicinity.
Overall impact
An overall positive impact is assessed for the project. The net effect on biological environment would be
positive with the company’s vegetation and plantation scheme as outlined in the EMP. The net impact on
environmental pollution would be positive. The negative effects due to emission of particulate matter,
gases and increased noise levels are controlled and will be prevented by pollution control measures in the
form of air pollution control devices of adequate capacity and employee health & safety norms in
practice. The aesthetic environment would have a positive value addition with the vegetation and
plantation schemes of the company. Moreover, the human-interest parameters show encouraging positive
impacts due to increased job opportunities, transportation, medical facilities, housing etc. These have
long-term socio-economic benefits.
SECTION G. Stakeholders’ comments:
G.1. Brief description of how comments by local stakeholders have been invited and compiled:
Identification of Stakeholders
Maa Usha Urja Limited at Siltara, Raipur has proposed to implement the 7.5 MW non-conventional
renewable energy source rice husk based power plant. The project proponent proposes to use mainly rice
husk generated by the nearby rice mills of Chhattisgarh as the fuel. For the purpose, MUUL first had to
obtain an approval from Chhattisgarh State Renewable Energy Development Agency (CREDA).
Subsequently, ‘Consent to Establish’ was obtained from Chhattisgarh Environment Conservation Board
(CECB), the state nodal agency equivalent to state pollution control board.
Some of the major stakeholders identified for the project activity are local authority, local community,
Chhattisgarh State Electricity Board (CSEB), Chhattisgarh Electricity Regulatory Commission (CERC),
CREDA, CECB, Environment Department, Govt. of Chhattisgarh, Ministry of Environment and Forest
(MoEF), Govt. of India, Ministry of Non-conventional Energy Sources (MNES), equipment suppliers,
rice millers, rice-husk suppliers and the employees of MUUL.
Some of the above stakeholders were involved in the project at various stages of obtaining clearances.
MUUL put up a general notice intimating its employees about the biomass based power generation
project during the project conception stage. The local people also came to know about the project activity
when MUUL initiated the process of entering into fuel supply agreements with the rice husk suppliers.
G.2. Summary of the comments received:
As per the comments of a local village authority, the biomass based power plant will not only help in
bridging the ever-increasing gap between demand and supply fronts of electricity through clean power
generation, but will also help in improving the economic condition of the locality. Business prospect of
rice millers and rice husk suppliers will be benefited due to the biomass based power plant. Moreover, the
project activity will also generate employment for the local people directly or indirectly.
Comments have also been received from the employees of MUUL appreciating such an initiative on part
of MUUL in using waste biomass as resource for power generation. The project has also been
commended for its contribution to socio-economic development of the locality through generation of
employment, savings in fossil fuel combustion and generation of clean power.
G.3. Report on how due account was taken of any comments received:
During the project conception stage, MUUL intimated the local village authority about the biomass based
power generation project activity through a notice and also invited their comments on the same. The
employees of MUUL were also notified and were asked to comment on MUUL’s venture on renewable
energy generation.
The relevant comments and important clauses mentioned in the project documents / clearances like
Detailed Project Report (DPR), EIA Report, PPA with JNL, local clearances etc. were considered while
preparing the CDM Project Design Document.
As per UNFCCC requirement this Project Design Document (PDD) was published at the validator’s web
site for public comments and has not received any comments.
Annex 1
CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY
Organization: Maa Usha Urja Limited

Street/P.O.Box: Siltara Growth Centre, Siltara
Building:
City: Raipur
State/Region: Chhattisgarh
Postcode/ZIP: 492001
Country: India
Telephone: 07721 – 403323/24
FAX: 07721 – 264279/264240
E-Mail: S.K.Moitra [susanta.moitra@necoindia.com]
URL:
Represented by: S.K.Moitra
Title: Senior General Manager (Finance)
Salutation: Mr.
Last Name: Moitra
Middle Name: K
First Name: S
Department: Finance
Mobile: +91 93002 07114
Direct FAX:
Direct tel:
Personal E-Mail:
Annex 2
INFORMATION REGARDING PUBLIC FUNDING
Till now funding from any Annex I party is not available.
-----

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CDM-SSC-PDD (version 02)

CDM – Executive Board page 1

CLEAN DEVELOPMENT MECHANISM

A. General description of the small-scale project activity

C. Duration of the project activity / Crediting period

D. Monitoring methodology and plan

E. Calculation of GHG emission reductions by sources

Annex 1: Information on participants in the project activity

Annex 2: Information regarding public funding

CDM – Executive Board page 2

Revision history of this document

Version Date Description and reason of revision

CDM – Executive Board page 3

SECTION A. General description of the small-scale project activity

A.1. Title of the small-scale project activity:

Biomass based power plant at Siltara, Raipur, Chhattisgarh, India.

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

Salient features of the project

CDM – Executive Board page 4

Project’s contribution to sustainable development

CDM – Executive Board page 5

A.3. Project participants:

A.4. Technical description of the small-scale project activity:

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

A.4.1.1. Host Party(ies):

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

A.4.1.3. City/Town/Community etc:

CDM – Executive Board page 6

CDM – Executive Board page 7

2.5 MW SINTER PLANT

2.5 MW COKE OVEN

Sub Category: D – ‘Grid connected renewable electricity generation’

CDM – Executive Board page 8

A brief on the technology employed

CDM – Executive Board page 9

Operating CO2 Emission Reductions

Total number of crediting years 10

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

CDM – Executive Board page 10

 With the same project participants;

 In the same project category and technology/measure;

 Registered within the previous 2 years; and

CDM – Executive Board page 11

SECTION B. Application of a baseline methodology:

Title: Grid connected renewable electricity generation

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

CDM – Executive Board page 12

Alternative 1: Import of power from the Chhattisgarh state electricity grid

Alternative 1: Import of power from the Chhattisgarh state electricity grid

Alternative 2: 100% Coal based power plant of MUUL

Alternative 4: Project activity without CDM benefits.

CDM – Executive Board page 13

Key information and data used to determine the baseline scenario

Serial Variable Parameters Data sources

02 EFGRID Combined margin emission factor CEA published CDM –

CDM – Executive Board page 14

Barriers and Additionality

(a) Investment barrier

(b) Technological barrier

(c) Barrier due to prevailing practice

(d) Other barriers

CDM – Executive Board page 15

With the same project participants;

In the same project category and technology/measure;

Registered within the previous 2 years; and