Documento de Diseño Del Proyecto Cambio de Combustible

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM Executive Board
page 1
CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-PDD) Version 03 - in effect as of: 28 July 2006 CONTENTS A. B. C. D. E. Annexes Annex 1: Contact information on participants in the project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring plan General description of project activity Application of a baseline and monitoring methodology Duration of the project activity / crediting period Environmental impacts Stakeholders comments
page 2
SECTION A. General description of project activity A.1. Title of the project activity: >> Paramonga Bagasse Boiler Project Version: 1 Nov 8, 2011 A.2. Description of the project activity: >> Agro Industrial Paramonga S.A. - AIPSA, the project proponent, is one of the largest sugar companies in Peru, producing approximately 110 thousand metric tonnes of sugar annually, which represents an 11% share of the total national sugar production. AIPSAs output is produced on 10,453 hectares of sugar cane; 6,717 of their own and 3,736 leased from different land owners. AIPSA is situated approximately 205 kilometres north of Lima. Its climatic conditions allow AIPSA to produce continuously throughout the 12 months of the year. AIPSA was one of the first sugar refineries established in Peru. When the company was set up in the late 1800s, it was conceived with two principal production activities: sugar and paper. The company was initially designed so that the bagasse generated by the milling of cane from the sugar production activity was transferred directly to the paper plant to produce pulp. The energy and steam requirements for the joint production activities were supplied by boilers that operated mainly with Bunker fuel and complemented on a minor scale with pith (a residual of the pulp process) and leftover bagasse. In 1974 the company was nationalized and divided into two independent companies by the government of Peru. The power plant was physically and legally divided into two side-by-side components. Supreme Decree 016 of 1974 assigned the power plant with all the boilers to the paper company (Sociedad Paramonga Ltda, now known as QUIMPAC) under the commitment that they would supply all the electric energy and steam required by the sugar company (Cooperativa Agraria Azucarera Paramonga LTDA, now known as AIPSA). In 1990, a long term agreement (Resources Exchange Agreement and Boilers Usufruct Agreement) was signed by the two firms to give the sugar company the right to use QUIMPACs main boiler and a secondary boiler to generate the electrical energy and steam for its production processes. The agreement gives AIPSA the right to use part of QUIMPACs power plant, including the largest petroleum boiler, for 30 years. These included agreements by which QUIMPAC would provide Bunker fuel1 to AIPSA in exchange for bagasse and residual pith. In 1998, the sugar company was privatized, creating todays AIPSA sugar company. The paper company was also privatized and its name today is PANASA (formerly QUIMPAC). Currently, the two companies continue to supply each other with bagasse (AIPSA to QUIMPAC), and with Bunker fuel and pith (QUIMPAC to AIPSA), based on the Resource Exchange Agreements (REA). AIPSAs steam requirements are produced by the boilers using Bunker fuel, complemented by residual pith and bagasse as fuel inputs. The standing 30 year agreement between AIPSA and QUIMPAC to use
All references to Oil in this document refer to Bunker Fuels No. 6 and No. 500, produced by Petro Peru
page 3
the main boiler for the long term, the favourable economics of continuing to use the existing arrangement, and recent investments by AIPSA to refurbish the petroleum boilers for long term use, establish the baseline scenario continued use of the existing thermal production system. In 2000, AIPSA was contacted by CONAM, the national environmental authority of Peru, and was invited to participate as a case study in the National Strategy Study (NSS) for Implementation of the CDM. AIPSA agreed to evaluate the economics of converting to a new residual biomass boiler and displacing the use of Bunker fuel, under the possibility of receiving income from certificates of emission reduction (CERs) to co-finance the new investment. The project was included in the NSS, and AIPSA worked closely with CONAM to learn about the potential benefits of applying the CDM2. The main objective of the project is to generate the financial resources necessary to finance the reconversion of the energy generation system of Agro Industrial Paramonga S.A. AIPSA, from the Residual Fuel Oil based energy generation system, to a new energy system based on biomass residues. The project has been developed on the basis of a sequence of activities that are designed to result in the maximization of biomass residues use for heat and steam generation. These include: Phase I: Research and development in use of biomass residues for heat generation. a. Determination of biomass residues available amounts during several year long periods b. Determination of Low Heating Values (LHV) and High Heating Values (HHV) of biomass residues fluxes in order to calculate the potential to generate heat under a set of probable weather scenarios c. Determination of the technology to gather residual foliage from the sugar cane fields. The common practice in the industry is to burn foliage in the field in order to prepare soil conditions for the next harvest. d. Determination of the means to transport foliage to the sugar mill e. Determination of the optimal size of foliage particles to be fed into a new boiler f. Determination of the characteristics of the new boiler that fires only biomass residues g. Determination of the means to feed the new sources of biomass into the new boiler h. Determination of the efficiency of the new boiler fed with new sources of biomass i. Determination of the measures and changes in the sugar production process in order to adapt steam production to the sugar mill requirements Phase II: Investment decision towards an increased use of biomass residues to generate heat j. Investments in various types of chopping machines to determine appropriate size of foliage particles to be fed in the boiler k. Investment in a grinding system to reduce particle size and texture at the outlet of the chopping machines l. Investment in conveyor systems to feed the boiler with biomass residues m. Investment in a new boiler able designed for biomass residues available in the sugar mill (bagasse, pith and foliage) n. Start up of the boiler firing the available biomass residues Phase III: Modification of practices for using biomass residues
World Bank-CONAM, National Strategy Study for Implementation of the CDM in Peru, 2003.
page 4
o. Modification of harvesting practices in order to gather foliage efficiently from the sugar cane growing fields p. Modification of transport practices in order to transport, weigh and deliver foliage to the plant q. Fine tuning of the chopping and grinding systems in order to prepare physical characteristics of biomass residues in optimal size and texture r. Determine correct mixture of biomass residues in order to maximize efficiency of the boiler and to generate the required steam flow to operate the sugar production process In summary, the former phases are the steps that AIPSA is implementing to modify current practices for the modification of their harvesting and production system for the use of biomass residues, to replace the existing boilers with a new biomass boiler, and to displace the use of Residual Fuel Oil with renewable energy and zero net greenhouse gas emissions from heat generation. The use of foliage for heat generation is new in Peruvian sugar cane production and has required extensive research as well as trial and error. The following table summarizes the baseline scenario and the project scenario:
Table 1. Baseline and CDM Project Scenarios. Baseline Scenario Project Scenario Foster Wheeler (120 ton/hr; 31,6 CBS/MEIC (120 ton/hr; 42 KGF/CM2, 371 0C) KGF/CM2 ; 4300C) Edge Moore (17,5 ton/hr; 31,6 KGF/CM2; 371 0C) Bunker Fuel Residual Pith Residual Pith Residual Bagasse Residual Bagasse Residual Foliage Chopping machines with Electric rotating blades. 2,4 ton/h current effective capacity in total, plate capacity 6 ton/h (2 units. It is expected AIPSA will purchase 1 more unit to enhance overall capacity to 10 t/h) Electric Foliage hammer Grinder (1 unit)
Characteristics Operating boilers
Fuel input
Machinery to adapt foliage characteristics to boilers requirements
Prior to the implementation of the project, two types of biomass residues were used: bagasse and pith. Bagasse is a by-product of the sugar production process and is generated on-site by the project participant. The amount of bagasse available depends on the amount of sugar cane harvested and milled throughout the year. Similarly, the amount of pith depends on the amount of bagasse sold by AIPSA to QUIMPAC, as it is a by-product of the paper production process and is part of the Resources Exchange Agreement between the two companies. Table 3 presents fuels use at AIPSA. Due to QUIMPACs market and production crisis, in February 2005 QUIMPACs demand for bagasse fell from 220,910 ton in 2004 to 10,850 in 2005, creating a huge residual bagasse stock at AIPSAs facilities. Although AIPSAs residual biomass based boiler was conceived in 2003, installation of the boiler concluded in late 2006 and its start up was in January 2007. It was not possible to sell the excess bagasse to other buyers since the nearest buyer is 200 km away from Paramonga, and transportation costs made it unfeasible to provide bagasse to potential buyers at commercial rates. Therefore, during 2005 and 2006, AIPSA was forced to make additional investments in retrofitting the Foster Wheeler Boiler in order to use the excess bagasse not received by QUIMPAC.
page 5
In the mean time, until QUIMPACs bagasse demand is restored to 2004 levels, bagasse is considered as the main source of biomass residues for this VCS project activity. Due to QUIMPACs crisis and AIPSAs investment in the Foster Wheeler boiler, investments and decisions required for foliage use was slowed down until late 2006, when efforts were reactivated along with the final construction phase of the new CBS boiler. Since the Resources Exchange Agreement is fundamental to determine the bagasse and bunker fuel flows between the two parties, which were seriously distorted during the period of Quimpacs internal crises in 2005 and 2006, we considered 2002, 2003 and 2004 as the baseline years to calculate future CO2 emission reductions because they represent the conditions prior to the projects initiation between these two firms in the absence of the CDM project activity. In addition, these were the baseline years utilized in the initial presentation of this project to UNFCCC.
Table 2. Time Lines of AIPSA CDM Program and Project Activity.
2000 Peru National Strategy Study, CONAM Invites AIPSA to formulate a project
2001
2002 FONAM formulates Initial Small Scale PDD for AIPSA
TIME LINE OF CDM PROGRAM AT AIPSA 2003 2004 2005 2006 Project withdrawn. UNFCCC informs that project is too large in thermal terms, it must be reformulated as a large scale CDM Project. However, no approved methodologies existed. CAEMA begins process of developing and approving a new methodology. DNV presents positive validation report to UNFCCC Request for Registration and Small Scale Fee Paid to UNFCCC CAEMA begins CDM Formulation of Small Scale PDD based on
2007 CAEMA succeeds in approving the new meth for mixed fuel baseline approved for fuel switch in new boilers.
2008 CAEMA finalizes formulation of this project as a VCS project activity 2008
2000
2001
AIPSA CDM PROJECT ACTIVITY DEVELOPMENT TIMELINE 2002 2003 2004 2005 2006 2007
DNV begins validation of Paramonga Small Scale CDM Project
page 6
AIPSA begins feasibility studies for fuel switch project for CDM
AIPSA evaluates technology providers for CDM project, begins working with residual biomass in boilers, including bagasse, pith and foliage AIPSA increases emphasis on use of biomass for upcoming CDM project. Foster Wheeler boiler adapted to use more biomass. AIPSA orders new boiler in expectation of CDM registration. AIPSA begins construction of new boiler infrastructure. New boiler begins testing last trimester. New equipment for gathering, transporting, cutting and grinding foliage is acquired and tested.
AIPSA participates in NSS, capacity building CDM
AIPSA works closely with FONAM to determine CDM project and small scale PDD
AIPSA begins work with CDM
Table 3. Time Line of the Use of Fuels

TIME LINE OF THE USE OF FUELS AT THE AIPSA PLANT 2002 Bunker fuel use in AIPSAs boilers (Ton) Bagasse sold to Quimpac (Ton) Bagasse used at AIPSA (Ton) Pith used in AIPSAs boilers (Ton) 2003 2004 2005 2006 2007 2008 2009 2010 20112020 each year 0
30,367
30,647
30,234
9,852
10,335
207.9
240,411
223,765
220,910
10,850
24,829
20,837
10,960
AIPSA starts operation with new biomass boiler. Testing and research continues on maximizing use of foliage.
1.043 13,553
20,619
67,668
85,973
245,383
255,931
286,237
283,912
316,590
356,850
372,028
90,044
78,275
77,006
3,801
8,741
478
The project activity will contribute to sustainable development because it will displace a fossil fuel system with a biomass based renewable energy system, generating benefits not only by reducing greenhouse gases, but by also reducing other local air pollutants and environmental impacts associated with the burning of Bunker fuel which have deteriorated the local environment. A.3. >> Project participants: Name of Party involved Private and/or public (*) ((host) indicates a host entity(ies) project Party) participants (*) (as applicable) PERU (host) Agro Industrial Paramonga S.A.A. (AIPSA) Contact information
Project Director: Hugo Ayon Address: Avenida Ferrocarril
page 7
212 Paramonga -Barranca, Lima Telephone: 2021111 ext 106 Email: hayon@agroparamonga.com A.4. Technical description of the project activity: A.4.1. Location of the project activity: >> A.4.1.1. >> PERU A.4.1.2. Region/State/Province etc.: >> LIMA Department, Barranca Province A.4.1.3. >> District of Paramonga City/Town/Community etc.: Host Party(ies):
A.4.1.4. Details of physical location, including information allowing the unique identification of this project activity (maximum one page): >> The project takes place in the main processing facilities of AIPSA, specifically in the heat generation building. AIPSA production facilities are located in the District of Paramonga, Peru, at the following address: Avenida del Ferrocarril 212. The District of Paramonga is located approximately 205 Kilometres north the city of Lima. The main access road is the North Panamerican Highway, the most important thoroughfare of Peru, which runs along the Pacific Coast and joins the northern and southern regions of the country. The following are the geographical coordinates of the location of the project activity: Latitud: 104020 Longitud: 774900 Altitude: 11,65 above sea level. The following map shows the location of the project activity, in Paramonga, Per.
page 8
Graphic 1. Map of Peru including Paramonga
Paramonga, Per Lima, Per
A.4.2. Category(ies) of project activity: >> Project activity consists of the implementation of a new biomass boiler and the generation of steam from biomass residues, classified under UNFCCC CDM sectoral scope 1, Energy industries (renewable sources). This project activity is an individual GHG mitigation project. The project is considered a renewable energy project because the new boiler will switch from fossil fuel use to biomass residuesresidual bagasse, pith and foliage from sugar cane production and processing-as the only fuels. According to the indicative list provided by the CDM Executive Board, biomass combustion as well as power and heat production from waste project activities are considered within the renewable energy project type. A.4.3. Technology to be employed by the project activity: >> The technology employed by the project activity is the new biomass boiler that will generate the heat requirements of AIPSA sugar production plant, the chopping and grinding machines to reduce size of foliage and the modification of the current practices to gather and transport foliage. The boiler specifications are: Name of Manufacturer: Type of Equipment: Reference: Output Capacity/System rating for primary boiler: Temperature: Pressure: CBS/MEIC Aqua tubular Boiler CBS/MEIC Steam production capacity 120 Ton/h 4300C 42 KGF/CM2 ; 4300C
page 9
The chopping and grinding system will deliver foliage of the correct size to be fed into the CBS boiler. The chopping machinery consists of a set of electrical rotating blade choppers specially designed to process sugar cane foliage. Several arrangements have been tried until the present but the final specifications and arrangement are yet to be determined. The following alternatives are under evaluation for placement of the system: 1. Placement near the biomass boiler amid the sugar mill and the growing fields. The main objectives are that the chopper not suffers any stress due to transportation, the reduction in maintenance and the screening and separation of the foliage from stones and soil that may damage the chopper, the hammer mill or the boiler. Transportation costs of the foliage from the field to the plant are high due to the light weight of foliage and must be optimized. The first chopper was installed in 2005 and placed within the bagasse storage open warehouse. The chopper resulted under-dimensioned to deal with the incoming foliage. Stones and soil entering the chopper were a major problem. 2. Fixed placement of the chopper system near the mill, which requires civil engineering works to ground the machine, on the one hand, and continuous supervision to avoid thieves or damage of the machine by third parties. This arrangement is under evaluation. 3. A moveable platform: The chopper is paced on a mobile platform pulled by a truck or tractor. The chopper is taken to the field being harvested and crosses the fields along with harvest activities. A lorry is placed at the outlet of the chopper and filled with the chopped foliage. Once the storing capacity of the lorry is met, the lorry is pulled across the field towards the sugar mill and the chopped foliage is unloaded into a screening machine to remove stones and soil. This arrangement permits reduced transportation costs, however maintenance of the chopper increases in cost. This arrangement is currently in place in a trial period. At present, an additional inconvenience is occurring: human labour to cut the cane is becoming a scarce resource since better wages are paid for the same activity in northern cities like Trujillo (200 km away) or in other activities like mining in the southern part of the country. Therefore, it is expected that in future mechanized gathering of cane will be needed for the industry. This will have implications for the management and operation of the chopping and grinding system. Several tests were performed with chopped foliage which resulted in problems in the feeding system to both the Foster Wheeler boiler and subsequently to the CBS boiler. Problems also resulted within the combustion chamber given that, due to the weight of the foliage particles, they combusted at an inappropriate level in the combustion chamber which reduced efficiency. Therefore, a hammer mill to reduce particle size of foliage was purchased. The hammer mill was placed in a fixed place within the bagasse storage open warehouse. The test performed demonstrated that size and humidity properties of the chopped and hammered foliage are improved resulting in very similar material properties to the bagasse processed in the sugar mill. When QUIMPACs suffered its internal crisis, research and development of full scale foliage processing was slowed down because of AIPSAs need to manage the large amounts of excess bagasse not purchased by QUIMPAC. As QUIMPACs bagasse demand has slowly returned to 2004 levels, AIPSA has focused anew on the research and field trials for the efficient transportation, preparation and burning of foliage.
page 10
A.4.4. Estimated amount of emission reductions over the chosen crediting period: >> The fuel switch project has a baseline determined by the lifetime of the Resources Exchange Agreement and Boilers Usufruct Agreement with nearby industry QUIMPAC, by which AIPSA receives Bunker fuel No. 6 to generate heat and steam from its existing boilers. This contract expires in 2020. The chosen crediting period for this VCS project activity is 14 years, starting on 1 January 2007 and ending on 31 December 2020. The estimated total emission reductions from switching from fossil fuel to biomass residues to produce heat and steam are 2,064,362 Ton CO2e as presented in the following table. The chosen 14 years crediting period may be shortened if AIPSA decides to apply for UNFCCC accreditation of the project. Table 4 presents the emission reduction estimates during the crediting period. Emission reductions for 2008 are split in two: before and after DNVs VCS validation visit. In 2010, this project was verified. 370,392 VCUs was issued for period between 1st January 2007 and 30th November 2009. The estimated amount of emissions reductions over the chosen crediting period of the project activity is:
Table 4. Estimated amount of emissions reduction over the chosen crediting period
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total estimated reductions (tonnes of CO2 e) Total number of crediting years Annual average over the crediting period of estimated reductions (tonnes of CO2 e)
Annual estimation of emission reductions in tonnes of CO2 e Ton CO2 Eq 124,339 119,377 140,590 149,259 161,161 152,241 152,238 152,165 152,165 152,165 152,165 152,165 152,165 152,165 2,064,362 14 147,454
A.4.5. Public funding of the project activity:
>> No public funding is considered for the project activity.
page 11
SECTION B. Application of a baseline and monitoring methodology
B.1. Title and reference of the approved baseline and monitoring methodology applied to the project activity: >> This project used the Approved baseline and monitoring methodology AM0036 v.2.1, named Fuel switch from fossil fuels to biomass residues in boilers for heat generation. B.2. Justification of the choice of the methodology and why it is applicable to the project activity: >> The project activity complies with scenario 2 of the type of project activities covered by the UNFCCC methodology AM0036 v.2.1 as follows: Scenario 2 of project activities eligible for use of UNFCCC AM0036 methodology Replacement of existing boilers. The project activity involves the replacement of (an) existing fossil fuel boiler(s) by (a) new boiler(s) that fire(s) mainly or solely biomass residues (some fossil fuels may be co-fired). The replacement shall (a) enable the use of biomass residues or (b) enable an increase in the use of biomass residues beyond historical levels, which would not be technically possible in any of the existing boilers without a retrofit or replacement of the boilers. Compliance with project activity: The project activity will replace the existing Foster Wheeler and Edge Moore boilers with a new CBS/MEIC boiler that fires only biomass residues (bagasse and pith, and foliage from the sugar cane growing fields). The replacement enables an increase in the use of biomass residues for meeting the requirements of steam production to the plant, beyond historical levels, which is not technically possible in the Foster Wheeler boiler without a major retrofit or its replacement as shown in Table 3 below.
The project activity displaces a thermal energy system which employed boilers built for fossil fuels which had burned a mixed baseline, which was comprised primarily of bunker fuel and mixed with bagasse and pith. The project activity is based on the installation and operation of biomass boilers in an agro-industrial plant (sugar) generating the biomass residues (bagasse, pith, and foliage from the sugar cane growing fields), used in the activity. AM0036 specifically provides for fuel switching from a mixed baseline of fossil and biomass to a project activity using only residual biomass.
Table 5. Maximum steam production of boilers
Efficiency with biomass fuel (Ton Steam/Ton Biomass) Existing Boiler: 1.8 Foster Wheeler New Boiler: 2.3 CBS/MEIC
Maximum amount of biomass residues available (Tons) 305,813 305,813
Maximum amount of steam that can be generated using only biomass fuel (Tons) 549,722 702,423
Steam requirements for sugar production (Tons) 644,326 644,326
The project activity complies with the applicability conditions of the baseline methodology, as follows:
page 12
The heat generated in the boiler(s) is, if power is generated with heat from the boilers, not increased as a result of the project activity, i.e. (a) site, the power generation capacity installed remains unchanged due to the implementation of the project activity and this power generation capacity is maintained at the pre-project level throughout the crediting period; and (b) The annual power generation during the crediting period is not more than 10% larger than the highest annual power generation in the most recent three years prior to the implementation of the project activity. This condition is currently satisfied by the project activity, heat generated in CBS boiler is not increased due to the project activity. Electricity generation is not increased due to the implementation of the project activity. Please see section 3.3 variable MWh electricity generation per year. Increasing the use of biomass residues beyond historical levels is technically not possible at the project site without a significant capital investment in either the retrofit or replacement of existing boilers or in the installation of new boilers. This condition is satisfied. In order to increase the use of biomass residues and generate all heat from biomass only, the replacement of the existing Foster Wheeler and Edge Moore boilers with a new biomass boiler was required, a major new capital investment. Existing boilers at the project site have used no biomass or have used only biomass residues (but no other type of biomass) for heat generation during the most recent three years prior to the implementation of the project activity. This condition is satisfied because existing boilers at Paramonga have used only biomass residues (bagasse and pith), for heat generation during the most recent three years prior to the implementation of the project activity. All biomass residues are co-fired with fossil fuels following CASE B under the section baseline emissions from fossil fuel combustion in boiler(s) for heat generation (BEHG,y) of the approved UNFCCC AM0036 v.2.1 methodology. Bagasse fired in the Foster Wheeler boiler is considered a biomass residue since it is leftover bagasse not purchased neither by QUIMPAC nor other bagasse buyers in the nearby region and not possible to sell at commercial rates to other buyers in the country because of high transport costs; the nearest buyer is 200 kms away from Paramonga thus making transportation costs an excessive share of the final bagasse price. No biomass types other than biomass residues, as defined above (in the UNFCCC AM0036v2.1 methodology), are used in the boiler(s) during the crediting period This condition is satisfied because the residual bagasse, foliage and pith comply with the definition of biomass residues. They all are residual by-products of the sugar growing and processing agro industry (in the case of bagasse and foliage) and the pulp and paper industry (in the case of pith). For projects that use biomass residues from a production process (e.g. production of sugar or wood panel boards), the implementation of the project shall not result in an increase of the processing capacity of raw input (e.g. sugar, rice, logs, etc.) or in other substantial changes (e.g. product change) in this process; This condition is satisfied because the implementation of the project activity will not result in an increase of the processing capacity of sugar or paper or in other substantial changes in this process as the project is limited to the replacement of heat boilers with similar capacity;
page 13
The biomass residues used at the project site, site where the project activity is implemented, should not be stored for more than one year; This condition is satisfied because all the biomass residues used will be produced at the project site and used soon afterwards. They will not be stored for more than one year. Stocks of all biomass residues will be monitored for verification of this requirement. No significant energy quantities, except from transportation or mechanical treatment of the biomass residues, are required to prepare the biomass residues for fuel combustion, i.e. projects that process the biomass residues prior to combustion (e.g. esterification of waste oils) are not eligible under this methodology. This condition is satisfied because no significant energy quantities, except from transportation and mechanical treatment of foliage, pith, and residual bagasse, are required to prepare the biomass residues for fuel combustion in the Paramonga project. The biomass residues are directly generated at the project site or transported to the project site by trucks. Bagasse and pith are directly generated at the project site. Foliage is produced in surrounding sugar cane fields and transported to the project site by trucks along with the harvested cane. In case of project activities that involve the replacement or retrofit of existing boiler(s), all boiler(s) existing at the project site prior to the implementation of the project activity should be able to operate until the end of the crediting period without any retrofitting or replacement, i.e. the remaining technical lifetime of each existing boiler should at the start of the crediting period be larger than the duration of the crediting period. The existing boilers (Foster Wheeler and Edge Moore) at the project site prior to the implementation of the project activity are able to operate until the end of the crediting period without any retrofitting or replacement. The useful life is dictated by the resource exchange agreement contract between Quimpac and Paramonga that permits the use of the baseline boiler, which expires in 2020.
Table 6. Characteristics of Existing Boilers
Technical Characteristics Manufacturer Initial date of operation in AIPSA Estimated remaining life time
Foster Wheeler Foster Wheeler Dec 1990
Edge Moore Edge Moore Jan 2004
Until 2020, dictated by Until 2020, dictated by use contract use contract
B.3. Description of the sources and gases included in the project boundary: >> According to the UNFCCC AM0036 v.2.1 baseline and monitoring methodology, the project boundary includes the following sources and gases:
Table 7. GHG Sources and Gases
Source
Gas
Included In Methodology
Included in Project boundary
page 14
Baseline Fossil fuel combustion in boilers for heat generation Electricity consumption for processing sugar canes Uncontrolled burning or decay of the biomass residues Project Activity On-site fossil fuel and Electricity consumption Electricity production due to increase in power capacity beyond historical levels Off-site transportation of biomass residues Combustion of biomass residues for heat generation Biomass storage
CO2 CH4 N2O CO2 CH4 N2O CO2 CH4 N2O CO2 CH4 N2O CO2 CH4 N2O CO2 CH4 N2O CO2 CH4 N2O CO2 CH4 N2O
Yes No No Yes No No No To be decided by PPs No Yes No No CO2 CH4 N2O Yes No No No To be decided by PPs No No No No
Yes No No Yes No No No Yes No Yes No No Yes No No Yes No No No Yes No No No No
B.4. Description of how the baseline scenario is identified and description of the identified baseline scenario: >> Baseline emissions are the CO2 emissions from fossil fuel co-fired in the existing boilers. In 1990, a long term agreement (Resources Exchange Agreement and Boilers Usufruct Agreement) was signed by the two firms to give the sugar company the right to use QUIMPACs main boiler and a secondary boiler to generate the electrical energy and steam for its production processes. The agreement gives AIPSA the right to use part of QUIMPACs power plant, including the largest petroleum boiler, for 30 years. These included agreements by which QUIMPAC would provide Bunker fuel3 to AIPSA in exchange for bagasse and residual pith. In 1998, the sugar company was privatized, creating todays AIPSA sugar company. The paper company was also privatized and its name today is QUIMPAC. Currently, the two companies continue to supply
3
All references to Oil in this document refer to Bunker Fuels No. 6 and No. 500, produced by Petro Peru
page 15
each other with resources. AIPSA supplies bagasse to QUIMPAC), and QUIMPAC provides AIPSA with Bunker fuel and pith, based on the resource exchange agreements. AIPSAs steam requirements are produced by the boilers using Bunker fuel, complemented by residual pith and bagasse as fuel inputs. The standing 30 year agreement between AIPSA and QUIMPAC to use the main boiler for the long term, the favourable economics of continuing to use the existing arrangement, and recent investments by AIPSA to refurbish the petroleum boilers for long term use, establish the baseline scenario continued use of the existing thermal production system. Physical delineation The physical delineation of the project boundary encompasses the existing boilers generating steam for sugar refining process. The physical, geographical site where the new bagasse boiler will operate, is within the facilities of AIPSAs power plant. At the moment, AIPSA uses two boilers (Foster Wheeler, Edge Moore) that generate steam for the production process, both of them located in the power plant. The Edge Moore and Foster Wheeler boilers deliver steam at 450 psi to the steam distributor. The steam distributor supplies the steam for the mill and the turbine generators, which supply both electricity and steam at 125 and 45 psi to the production process. The Edge Moore boiler uses only bagasse as fuel, and the Foster Wheeler uses residual oil, bagasse and pith. The Distral boiler was a fossil fuel fired 10tSteam/h boiler operated during the period June 2003 - September 2004. It was fired in order to allow the retrofitting of the EM boiler, thus avoiding further needs for steam. In September 2004 it was decommissioned and sold. Manufacturers specifications and all Distral boilers technical literature was handed out to the boilers buyer. Table 8presents the technical characteristics of the existing boilers Edge Moore boiler and the Foster Wheeler.
Table 8. Technical Characteristics of the Existing Boilers
Technical Characteristics Manufacturer Reference Capacity (MCR) (Ton steam/hr) Operating pressure (Kgf/CM2) Temperature (oC) Type of fuel
Foster Wheeler Foster Wheeler FW 22.6 120 * 31.6
Edge Moore Edge Moore 17.5 31.6 371 Residual bagasse and pith Jan 2004
371 Bunker fuel, residual bagasse and pith Initial date of Dec 1990 operation in AIPSA
* Operated only with Bunker fuel.
The project activitys main objective is to replace the existing boilers with a single new biomass residues based one. The new boiler will supply all the steam required by the production process through the
page 16
steam distributor. The project boundary of the project activity is defined as the area of the Power Plant Building of AIPSA which includes the actual boilers as well as the area where the new boiler will be located. Diagram 1 shows the flows of energy and steam of the power plant under current conditions, and Diagram 2 shows the flows under the project activity.
FLUJO DE GENERACIN STEAM AND ELECTRICAL ENERGY FLOWS: GENERATION OFDE VAPOR Y ENERGA ELCTRICA
FLOWS FLUJO
VAPOR 45 psig
CONDENSED WATER
AGUA CONDENSADA
FABRICA FACTORY
VAPOR 15 psig
VAPOR 125 psig
WATER TANKS
TRAPICHE MILLING EQUIPMENT
TANQUES DE AGUA
TURBO GENERATORS TURBOGENERADORES EQUIPOS EQUIPMENT AUXILIARYAUXILIARES
VAPOR 45 psig QUIMPAC VAPOR 15 psig QUIMPAC CONDENSADO
AGUA PARA QUIMPAC
CABEZAL VAPOR STEAM HEAD

CABEZAL
450 PSIG RED.
CALENTADOR
DESAEREADOR
VAPOR 450 psig
V se
V pr 45 0 ps ig
VAPOR 45 psig
EDGE MOORE
FOSTER WHEELER
VAPOR 450 psig
BAGAZO
BAGAZO, BAGASSE, PITH
BAGASSE AND PITH
POLVILLO
BUNKER FUEL
Diagram 1. Flows of Energy and Steam of the Power Plant and project boundary
VAPOR 45 psig
page 17
Diagram 1:
450 PSG
CBS BOILER
FOLIAGE
FOLIAGE CHOPPING AND GRINDING SYSTEM
BAGASSE AND PITH
Diagram 2. VCS project activity
According to UNFCCC AM0036 v.2.1 Procedure for the selection of the most plausible baseline scenario, the following analysis determines the most plausible alternatives to the project activity. Alternatives for heat generation: Realistic and credible alternatives for heat generation available for AIPSA were analyzed taking into account specific conditions of the company and baseline scenarios in UNFCCC AM0036 v.2.1 approved methodology, as follows: H1 The replacement of the Foster Wheeler boiler with the biomass boiler not undertaken as a CDM project activity (heat generation with bagasse, pith and foliage). This was a realistic and credible alternative considered but was not economically feasible without the sale of carbon credits Continued operation of Foster Wheeler boiler using the same fuel mix or less biomass residues as in the past. This was a realistic and credible alternative considered. Continued operation of the existing boiler(s) using a different fuel (mix): High additional investments are required to allow the Foster Wheeler boiler to meet the steam requirements of the plant without burning fuel oil, as in H2 alternative. Therefore this alternative is not realistic, and was not considered. Improvement of the performance of the Foster Wheeler and Edge Moore boilers: This alternative was already implemented by project participants as the Edge Moore boiler was recently refurbished. Since 2003, project participants also have increase the preventive maintenance of
H2 H3
H4
page 18
H5
H6
Foster Wheeler boiler. Boilers performance is not possible to improve beyond current levels without a huge additional investment. Therefore this alternative was not considered. Continued operation of the Foster Wheeler boiler using the same fuel mix or less biomass residues as in the past AND installation of (a) new boiler(s) that is/are fired with the same fuel type(s) and the same fuel mix (or a lower share of biomass) as the existing boiler(s): This alternative was not considered as Foster Wheeler and Edge Moore boilers can produce the steam requirements of the plant, and therefore there is no need for installing an additional boiler. Replacement of the existing boiler(s) with new boiler(s): The type of boiler proposed by the project activity has the best available technology in the region and therefore this alternative is considered as in H1 alternative.
These conditions determine that at the present time AIPSA had two alternatives in the absence of the CDM: H1 H2 The replacement of the Foster Wheeler and Edge Moore boilers with the biomass boiler not undertaken as a CDM project activity (heat generation with bagasse, pith and foliage). Continued operation of the Foster Wheeler boiler using the same fuel mix or less biomass residues as in the past.
Alternatives for the use of biomass
Prior to the implementation of the project activity, two types of biomass residues were used: residual bagasse, and pith. Residual bagasse is a by-product of the sugar production process and is generated onsite by the project participant. The amount of bagasse available depends on the amount of sugar cane milled throughout the year. Similarly the amount of pith depends on the amount of bagasse sold by AIPSA to QUIMPAC, as it is a by-product of the paper production process and is part of the Resources Exchange Agreement between the two companies. The project activity aims to use foliage as a fuel for heat generation. Traditional practices at AIPSA and in the sugar industry leave foliage in the growing fields which is then burnt to clear out the fields and prepare them for the next crop yield.
page 19
Graphic 2. Burning of Foliage in the Field is Common Practice
As for this project activity foliage constitutes the main stream of biomass residues complemented with residual bagasse and pith historically used for heat generation at AIPSA. An exceptional case is due to QUIMPACs internal crisis. In 2005, QUIMPAC decreased bagasse demand drastically leaving excess bagasse at AIPSA. QUIMPACs change in bagasse consumption was due to a reduction in the price paid for paper that used bagasse as raw material. Under those circumstances, AIPSA was compelled to use the excess bagasse for energy purposes slowing down research and investments needed for use of foliage as the main fuel for heat generation. Through 2005, 2006, 2007 and 2008, AIPSA used bagasse as a biomass residue, given that the market situation did not allow AIPSA to sell bagasse at commercial rates. During 2006, QUIMPAC demand has slowly increased. It is expected that in the near future QUIMPACs demand will return to 2004 levels, restoring the resource transfer levels set by the Resources Exchange Agreement. Since AIPSA has continued research in foliage use, once the historical QUIMPACs demand is restored, AIPSA will be able to use foliage as fuel for heat generation needs. The alternative uses of biomass are: B1 Biomass residues are dumped or left to decay under mainly aerobic conditions. This applies, for example, to dumping and decay of biomass residues on fields. This is not a realistic alternative for any of the biomass residues to be used in this project activity (residual bagasse, pith and foliage) since the growing fields need to be cleared of foliage before starting the next crop yield and the traditional practice has been to burn it in the fields for preparing soil for the next yield; residual bagasse and pith are used for heat generation. This is not a realistic and credible alternative. The biomass residues are dumped or left to decay under clearly anaerobic conditions. This applies, for example, to deep landfills with more than 5 meters. This is not a realistic alternative since this is not a common practice for none of the biomass residues used in this project activity.
B2
page 20
B3
B4
B5
B6
B7
B8
The biomass residues are burnt in an uncontrolled manner without utilizing them for energy purposes. This is a realistic alternative for foliage use. This is a common practice in the sugar industry. Residual bagasse and pith are mainly used for heat generation. The biomass residues are sold to other consumers in the market and the predominant use of the biomass residues in the region/country is for energy purposes (heat and/or power generation). This is not a realistic alternative for foliage since B3 is the common practice alternative in the sugar industry. Bagasse, on the other hand, is used for paper and cardboard production, however, AIPSA produces more bagasse than required in regional bagasse market and therefore excess bagasse not sold to the market remains at AIPSAs facilities as a leftover and used within AIPSA for energy purposes. The biomass residues are used as feedstock in a process (e.g. in the pulp and paper industry). This is a realistic and credible alternative for residual bagasse. As explained above, the main use of bagasse is to produce paper and cardboard in the neighbouring company QUIMPAC. Residual bagasse results from the amount of bagasse that has not been possible to sell in the regional bagasse market due to the market size nor in country based markets due to transport costs. The biomass residues are used as fertilizer. This is not a realistic alternative since AIPSAs core business is not the fertilizer industry which would require additional important capital investments. In case fertilizers were to be produced with AIPSAs biomass residues, AIPSA would probably sell biomass residues to neighbouring companies. Actually, a branch of QUIMPAC (today PANASA) located a few block away from AIPSAs sugar mill produces Chemical Fertilizers. . The proposed project activity not undertaken as a CDM project activity (use of the biomass residues for heat generation). This is technically a realistic and credible alternative, but is not financially viable. Any other use of the biomass residues. This is not a realistic alternative due to AIPSAs core business. If the excess foliage were to be sold in the market for other uses this alternative is the same as B4, B5 and B6.
Baseline alternatives for heat generation are related to baseline alternatives for the use of biomass. Alternative H1 has associated alternative B7, meaning that the project is technically feasible but would need CDM financial resources to be carried out. On the other hand, alternative H2 has associated B3, B4, B5, B6 and occasionally B8, meaning that it is more profitable to sell biomass residues than to use them to cover heat generation need on site and displace fossil fuel consumption, which is also an alternative.
B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the registered CDM project activity (assessment and demonstration of additionality): >> As the UNFCCC methodology AM0036 v.2.1 uses the tool for the determination and assessment of additionality, this section will present how the Tool for the demonstration and assessment of additionality V 05.2 UNFCCC was applied to the project activity. Step 1: Identification of alternatives to the project activity consistent with mandatory laws and regulations Sub-step 1a. Define alternatives to the project activity:
page 21
As presented in the above section, baseline alternatives for steam generation in the absence of the CDM are: 1. Continue with the actual situation, generating energy and steam with fossil fuels and biomass in the existing boilers, and selling the excess biomass residues to the market when possible; or, 2. Fuel Switch and implement a new biomass residues boiler neither as a CDM project nor a VCS project. Although this alternative is technically viable, it is not financially viable without incomes from the sale of carbon credits. Sub-step 1b: Consistency with mandatory laws and regulations: Both alternatives and the project activity are in compliance with prevailing laws and regulations and none of the alternatives are mandated/enforced by law. This is demonstrated by the national approval letter. Step 2. Investment analysis. Sub-step 2a. Determine appropriate analysis method The investment comparison analysis is the appropriate method for comparison of the baseline alternatives as the method analyzes the costs, revenues and financial indicators associated with both alternatives. Sub-step 2b. Option II. Apply investment comparison analysis To demonstrate that alternative 2 would not have occurred in the absence of the incentive from carbon credits, due to an investment barrier, we undertake a financial analysis of both alternatives. The financial analysis is based on a documented cash flow analysis of all the costs and revenues related to each alternative. Alternative 1 For alternative 1, the costs include all those related to maintenance and fuel supply of the two existing boilers and the revenues include the sales of biomass residues to QUIMPAC and to others4. Depreciation costs are not included in the analysis because they do not imply cash demands. As mentioned in the description of the project activity, AIPSA signed a Resource Exchange Agreement with QUIMPAC that establishes the terms of exchange through 2020. AIPSA transfers bagasse to QUIMPAC for its pulp and paper processes, and QUIMPAC transfers two types of fuel to AIPSA in exchange: pith (polvillo) and Bunker fuel. The amount of bagasse received by QUIMPAC depends on its production requirements. The amount of Pith returned by QUIMPAC to AIPSA is constant relative to the amount of bagasse transferred because it is a by-product of the pulp process (approximately 34% of the quantity of the bagasse received). The Resource Exchange Agreement defines the terms of the exchanges of the three different fuels (bagasse, pith and Bunker fuel) based on their caloric potential. The terms of exchange of the current agreement are 46 Gallons of Bunker fuel from Quimpac per ton of
4
Financial documentation of the CDM project shows the historical costs associated with alternative 1 incurred by AIPSA during the period 1999 2004.
page 22
bagasse delivered from AIPSA. The amount of pith returned to AIPSA represents 35% of the bagasse weight, and is equivalent to 10.5 gallons of Bunker fuel. This is deducted from the 46 gallon total exchanged, leaving 35.5 Gallons of Bunker fuel received per ton of bagasse delivered. For accounting purposes, both companies (AIPSA and QUIMPAC) register the resource exchanges as purchases and sales of fuels, valued by the price equivalent of oil. But in terms of cash flow, AIPSA has no cost because the revenue received from the sale of bagasse to QUIMPAC equals the cost of purchase of Pith and Bunker fuel. Also, AIPSA has the right to use QUIMPACs boilers at no cost. Likewise, the bagasse burned by AIPSA has no cash flow cost because the bagasse used is a by-product of its sugar production process. In conclusion, the existing conditions are quite favorable to AIPSA and the intentions of both firms in the absence of the CDM are to continue. The costs associated with the alternative 1 continue with the current situation - are limited to the projected costs of maintenance of the existing generation units during the crediting period. The following table shows the costs as well as the net present value of alternative 1:
Table 9. Cash flow analysis for alternative (Figures in USD) 1: Continue with existing situation (figures in USD)
1 2006 Revenues Sale of bagasse to QUIMPAC-PANASA Sale of bagasse to others Operation and Maintenance Costs Fuel costs Pith Residual Fuel Oil Costo Vapor compra a QUIMPAC-PANASA Maintenance costs Foster Wheeler Edge Moore Total Costs Net Cash Flow NPV (10%) $72.523 11 2017 Revenues Sale of bagasse to QUIMPAC-PANASA Sale of bagasse to others Operation and Maintenance Costs Fuel costs Pith Residual Fuel Oil Costo Vapor compra a QUIMPAC-PANASA Maintenance costs Foster Wheeler Edge Moore Total Costs Net Cash Flow 410.603 46.456 7.260.495 25.274 21 2027 Revenues Sale of bagasse to QUIMPAC-PANASA Sale of bagasse to others Operation and Maintenance Costs Fuel costs Pith Residual Fuel Oil Costo Vapor compra a QUIMPAC-PANASA Maintenance costs Foster Wheeler Edge Moore Total Costs Net Cash Flow 410.603 46.456 7.260.495 25.274 410.603 46.456 7.260.495 25.274 410.603 46.456 7.260.495 25.274 410.603 46.456 7.260.495 25.274 410.603 46.456 7.260.495 25.274 410.603 46.456 7.260.495 25.274 410.603 46.456 7.260.495 25.274 410.603 46.456 7.260.495 25.274 410.603 46.456 7.260.495 25.274 410.603 46.456 7.260.495 25.274 1.493.563 5.309.872 1.493.563 5.309.872 1.493.563 5.309.872 1.493.563 5.309.872 1.493.563 5.309.872 1.493.563 5.309.872 1.493.563 5.309.872 1.493.563 5.309.872 1.493.563 5.309.872 1.493.563 5.309.872 6.803.435 482.334 6.803.435 482.334 6.803.435 482.334 6.803.435 482.334 6.803.435 482.334 6.803.435 482.334 6.803.435 482.334 6.803.435 482.334 6.803.435 482.334 6.803.435 482.334 410.603 46.456 7.260.495 25.274 22 2028 410.603 46.456 7.260.495 25.274 23 2029 410.603 46.456 7.260.495 25.274 24 2030 410.603 46.456 7.260.495 25.274 25 2031 410.603 46.456 7.260.495 25.274 26 2032 410.603 46.456 7.260.495 25.274 27 2033 410.603 46.456 7.260.495 25.274 28 2034 410.603 46.456 7.260.495 25.274 29 2035 410.603 46.456 7.260.495 25.274 30 2036 1.493.563 5.309.872 1.493.563 5.309.872 1.493.563 5.309.872 1.493.563 5.309.872 1.493.563 5.309.872 1.493.563 5.309.872 1.493.563 5.309.872 1.493.563 5.309.872 1.493.563 5.309.872 1.493.563 5.309.872 6.803.435 482.334 6.803.435 482.334 6.803.435 482.334 6.803.435 482.334 6.803.435 482.334 6.803.435 482.334 6.803.435 482.334 6.803.435 482.334 6.803.435 482.334 6.803.435 482.334 12 2018 13 2019 14 2020 15 2021 16 2022 17 2023 18 2024 19 2025 20 2026 410.603 46.456 6.248.955 (46.439) 410.603 46.456 6.075.549 (58.733) 410.603 46.456 6.907.286 233 410.603 46.456 7.159.832 18.138 410.603 46.456 7.184.764 19.905 410.603 46.456 7.184.373 19.878 410.603 46.456 7.215.096 22.056 410.603 46.456 7.217.256 22.209 410.603 46.456 7.260.495 25.274 410.603 46.456 7.260.495 25.274 1.271.499 4.520.397 1.233.431 4.385.059 1.416.023 5.034.204 1.471.464 5.231.309 1.476.938 5.250.767 1.476.852 5.250.462 1.483.596 5.274.440 1.484.070 5.276.126 1.493.563 5.309.872 1.493.563 5.309.872 5.791.896 410.620 5.618.490 398.326 6.450.227 457.293 6.702.773 475.197 6.727.705 476.965 6.727.314 476.937 6.758.036 479.115 6.760.196 479.268 6.803.435 482.334 6.803.435 482.334 2007 2 2008 3 2009 4 2010 5 2011 6 2012 7 2013 8 2014 9 2015 10 2016
SOURCE: AIPSA Accounting Dept.
Alternative 2
page 23
For alternative 2 fuel switch and implement a new biomass residues boiler without CDM revenues, the cash flow analysis includes the additional investment costs and the maintenance costs, and the revenues from the net sale of bagasse to QUIMPAC. The results demonstrate that the project activity is not the baseline. The investment cost, US$ 7,876,103, includes all costs made in the period 2004-2008 associated with the purchase of the equipment, transport, and installation, the costs incurred in conditioning a location for the operation of the new boiler as well as the purchase of foliage transport, chopping, grinding and delivery systems. The costs of gathering, transporting, chopping and grinding of the residual foliage for delivery to the boiler are high: $2,774,679 USD. The maintenance cost of the new boiler (USD$377,499 per year) was estimated adjusting the projected cost of the Foster Wheeler Boiler, which is similar in type of operations. The adjustments include relevant personnel reductions, stoppage costs, and reduced maintenance. The maintenance cost of the foliage grinding system adds another $693,670 USD per year. With this alternative, AIPSA would have additional revenue from selling more residual biomass (bagasse) to QUIMPAC. For calculating the revenue, it was assumed that the total residual amount resulting from the bagasse produced and not burned in the new boiler, would be purchased by QUIMPAC or the market (other potential bagasse buyers). QUIMPAC will still return Pith and instead of supplying residual oil, will pay the equivalent value according with the terms of Resources Exchange Agreement. QUIMPAC will demand less Bunker Fuel from the refinery. The residual biomass is calculated by first estimating the total amount of bagasse produced by AIPSA according to its production projections. These projections also give the amount of steam required for the sugar process. With the amount of steam5 needed, we calculated the bagasse requirements of the new boiler to generate that steam based on its operating fuel efficiency. Finally, the residual bagasse is the difference between the total biomass produced and the biomass burned to produce the necessary steam. When the project begins to burn residual foliage in the boiler, the total residual biomass is increased by adding the amount of foliage. Then the amount of biomass necessary to generate needed steam is subtracted. This leaves the amount of bagasse available to trade to Quimpac or sell to the market. The sales value of the Bagasse to Quimpac is based on the average price of Bunker fuel for the period Jan-Sept of 2004. Taking into account the above costs and revenues, the following table shows the cash flow analysis for Alternative 2:
The final value of the bagasse burned takes into account the steam generated by the Pith received.
page 24
Table 10. Cash flow analysis for alternative 2: Implement bagasse boiler without emission reduction crediting (figures inUSD) (Figures in USD)
1 2006 Revenues Sales of Bagasse to QUIMPAC-PANASA Costs Initial investment Initial investment in cbs Initial investment in foliage grinding system Operation and Maintenance Costs Fuel costs Pith Foliage gathering cost Foliage transportation cost Foliage grinder electricity cost labour to run the foliage grinder system Maintenance costs CBS/MEIC Foliage Grinder Total Costs Net Cash Flow NPV (10%) IRR (7.278.189) ($1.616.431) 5% 11 2017 Revenues Sales of Bagasse to QUIMPAC-PANASA Costs Initial investment Initial investment in cbs Initial investment in foliage grinding system Operation and Maintenance Costs Fuel costs Pith Foliage gathering cost Foliage transportation cost Foliage grinder electricity cost labour to run the foliage grinder system Maintenance costs CBS/MEIC Foliage Grinder Total Costs Net Cash Flow 1.123.745 814.817 6.691.395 112.040 21 2027 Revenues Sales of Bagasse to QUIMPAC-PANASA Costs Initial investment Initial investment in cbs Initial investment in foliage grinding system Operation and Maintenance Costs Fuel costs Pith Foliage gathering cost Foliage transportation cost Foliage grinder electricity cost labour to run the foliage grinder system Maintenance costs CBS/MEIC Foliage Grinder Total Costs Net Cash Flow 838.745 814.817 6.406.395 397.040 988.745 814.817 6.556.395 247.040 1.123.745 814.817 6.691.395 112.040 838.745 814.817 6.406.395 397.040 838.745 814.817 6.406.395 397.040 1.743.745 814.817 7.311.395 (507.960) 838.745 814.817 6.406.395 397.040 1.638.745 814.817 7.206.395 (402.960) 1.273.745 814.817 6.841.395 (37.960) 838.745 814.817 6.406.395 397.040 1.493.563 937.040 1.874.080 244.445 203.704 1.493.563 937.040 1.874.080 244.445 203.704 1.493.563 937.040 1.874.080 244.445 203.704 1.493.563 937.040 1.874.080 244.445 203.704 1.493.563 937.040 1.874.080 244.445 203.704 1.493.563 937.040 1.874.080 244.445 203.704 1.493.563 937.040 1.874.080 244.445 203.704 1.493.563 937.040 1.874.080 244.445 203.704 1.493.563 937.040 1.874.080 244.445 203.704 1.493.563 937.040 1.874.080 244.445 203.704 6.803.435 6.803.435 6.803.435 6.803.435 6.803.435 6.803.435 6.803.435 6.803.435 6.803.435 6.803.435 838.745 814.817 6.406.395 397.040 22 2028 838.745 814.817 6.406.395 397.040 23 2029 1.743.745 814.817 7.311.395 (507.960) 24 2030 988.745 814.817 6.556.395 247.040 25 2031 838.745 814.817 6.406.395 397.040 26 2032 1.123.745 814.817 6.691.395 112.040 27 2033 1.638.745 814.817 7.206.395 (402.960) 28 2034 838.745 814.817 6.406.395 397.040 29 2035 1.743.745 814.817 7.311.395 (507.960) 30 2036 1.493.563 937.040 1.874.080 244.445 203.704 1.493.563 937.040 1.874.080 244.445 203.704 1.493.563 937.040 1.874.080 244.445 203.704 1.493.563 937.040 1.874.080 244.445 203.704 1.493.563 937.040 1.874.080 244.445 203.704 1.493.563 937.040 1.874.080 244.445 203.704 1.493.563 937.040 1.874.080 244.445 203.704 1.493.563 937.040 1.874.080 244.445 203.704 1.493.563 937.040 1.874.080 244.445 203.704 1.493.563 937.040 1.874.080 244.445 203.704 6.803.435 6.803.435 6.803.435 6.803.435 6.803.435 6.803.435 6.803.435 6.803.435 6.803.435 6.803.435 12 2018 13 2019 14 2020 15 2021 16 2022 17 2023 18 2024 19 2025 20 2026 98.129 693.670 4.837.976 953.919 202.186 672.902 4.800.125 818.365 377.499 772.515 5.656.097 794.130 377.499 802.761 5.862.771 840.003 377.499 805.747 5.883.174 844.531 377.499 805.701 5.882.854 844.460 377.499 809.380 5.907.996 850.041 377.499 809.639 5.909.763 850.433 377.499 814.817 5.945.148 858.287 377.499 814.817 5.945.148 858.287 1.271.499 797.720 1.595.440 208.101 173.417 1.233.431 773.837 1.547.674 201.871 168.225 1.416.023 888.392 1.776.785 231.755 193.129 1.471.464 923.176 1.846.351 240.828 200.690 1.476.938 926.610 1.853.219 241.724 201.437 1.476.852 926.556 1.853.112 241.710 201.425 1.483.596 930.787 1.861.574 242.814 202.345 1.484.070 931.085 1.862.169 242.892 202.410 1.493.563 937.040 1.874.080 244.445 203.704 1.493.563 937.040 1.874.080 244.445 203.704 7.278.189 7.105.036 173.153 597.913,52 5.791.896 5.618.490 6.450.227 6.702.773 6.727.705 6.727.314 6.758.036 6.760.196 6.803.435 6.803.435 2007 2 2008 3 2009 4 2010 5 2011 6 2012 7 2013 8 2014 9 2015 10 2016
Sub-step 2c. Calculation and comparison of financial indicators (only applicable to options II and III): As we can see comparing the results of Table 12 and Table 13, Alternative 1 has a Net Present Value of USD$72,563, which is a significantly higher value than Alternative 2, which has a negative NPV of USD$ (1,616,431). In the absence of the incentives from the sale of carbon credits, the more attractive option is alternative 1: to continue with the actual situation. Sub-step 2d: Sensitivity analysis (only applicable to Options II and III):
page 25
A realistic possibility for a change in the critical assumptions that affect the economic equation is the case when demand for bagasse from Quimpac is reduced due to falling production. This occurred in 2005, and bagasse stocks at AIPSA increased rapidly. Considering sales to other buyers of bagasse at historical levels, AIPSA would be faced with growing supplies of residual bagasse with no economic value other than burning it in the boiler. If Quimpac were to go out of business, sales to other buyers would be maintained at approximately 13,323 tons per year, and the rest would be consumed in the Paramonga biomass boiler. In this case, due to the excess bagasse available, the use of foliage at AIPSA is reduced to 10% of the available foliage to be chopped, and the costs of foliage gathering, transporting, grinding and use are reduced proportionally. Under this scenario the NPV is more negative than before at -$12,265,593, because incomes fall, investment costs are maintained and operating costs are reduced. Again, without emission reduction crediting, this alternative would not have taken place. The following table demonstrates the economics of this scenario.
page 26
Table 11. Cash flow analysis for alternative 2B: Implement bagasse boiler without emission reduction crediting nor bagasse purchased by Quimpac (figures in USD)
1 2006 Revenues Sales of Bagasse to QUIMPAC-PANASA Sale of bagasse to others TOTAL INCOME Costs Initial investment Initial investment in cbs Initial investment in foliage grinding system Operation and Maintenance Costs Fuel costs Pith Foliage gathering cost Foliage transportation cost Foliage grinder electricity cost labour to run the foliage grinder system Maintenance costs CBS/MEIC Foliage Grinder Total Costs Net Cash Flow NPV (10%) IRR (7.278.189) ($12.265.593) #DIV/0! 11 2017 Revenues Sales of Bagasse to QUIMPAC-PANASA Sale of bagasse to others TOTAL INCOME Costs Initial investment Initial investment in cbs Initial investment in foliage grinding system Operation and Maintenance Costs Fuel costs Pith Foliage gathering cost Foliage transportation cost Foliage grinder electricity cost labour to run the foliage grinder system Maintenance costs CBS/MEIC Foliage Grinder Total Costs Net Cash Flow 1.123.745 81.482 1.531.154 (1.048.820) 21 2027 Revenues Sales of Bagasse to QUIMPAC-PANASA Sale of bagasse to others TOTAL INCOME Costs Initial investment Initial investment in cbs Initial investment in foliage grinding system Operation and Maintenance Costs Fuel costs Pith Foliage gathering cost Foliage transportation cost Foliage grinder electricity cost labour to run the foliage grinder system Maintenance costs CBS/MEIC Foliage Grinder Total Costs Net Cash Flow 838.745 81.482 1.246.154 (763.820) 988.745 81.482 1.396.154 (913.820) 1.123.745 81.482 1.531.154 (1.048.820) 838.745 81.482 1.246.154 (763.820) 838.745 81.482 1.246.154 (763.820) 1.743.745 81.482 2.151.154 (1.668.820) 838.745 81.482 1.246.154 (763.820) 1.638.745 81.482 2.046.154 (1.563.820) 1.273.745 81.482 1.681.154 (1.198.820) 838.745 81.482 1.246.154 (763.820) 93.704 187.408 24.445 20.370 93.704 187.408 24.445 20.370 93.704 187.408 24.445 20.370 93.704 187.408 24.445 20.370 93.704 187.408 24.445 20.370 93.704 187.408 24.445 20.370 93.704 187.408 24.445 20.370 93.704 187.408 24.445 20.370 93.704 187.408 24.445 20.370 93.704 187.408 24.445 20.370 482.334 482.334 482.334 482.334 482.334 482.334 482.334 482.334 482.334 482.334 482.334 482.334 482.334 482.334 482.334 482.334 482.334 482.334 482.334 482.334 2028 838.745 81.482 1.246.154 (763.820) 22 2029 838.745 81.482 1.246.154 (763.820) 23 2030 1.743.745 81.482 2.151.154 (1.668.820) 24 2031 988.745 81.482 1.396.154 (913.820) 25 2032 838.745 81.482 1.246.154 (763.820) 26 2033 1.123.745 81.482 1.531.154 (1.048.820) 27 2034 1.638.745 81.482 2.046.154 (1.563.820) 28 2035 838.745 81.482 1.246.154 (763.820) 29 2036 1.743.745 81.482 2.151.154 (1.668.820) 30 93.704 187.408 24.445 20.370 93.704 187.408 24.445 20.370 93.704 187.408 24.445 20.370 93.704 187.408 24.445 20.370 93.704 187.408 24.445 20.370 93.704 187.408 24.445 20.370 93.704 187.408 24.445 20.370 93.704 187.408 24.445 20.370 93.704 187.408 24.445 20.370 93.704 187.408 24.445 20.370 482.334 482.334 482.334 482.334 482.334 482.334 482.334 482.334 482.334 482.334 482.334 482.334 482.334 482.334 482.334 482.334 482.334 482.334 482.334 482.334 2018 12 2019 13 2020 14 2021 15 2022 16 2023 17 2024 18 2025 19 2026 20 98.129 69.367 444.964 (34.344) 202.186 67.290 538.637 (140.310) 377.499 77.252 763.756 (306.464) 377.499 80.276 778.879 (303.682) 377.499 80.575 780.372 (303.408) 377.499 80.570 780.349 (303.412) 377.499 80.938 782.189 (303.074) 377.499 80.964 782.318 (303.050) 377.499 81.482 784.907 (302.574) 377.499 81.482 784.907 (302.574) 79.772 159.544 20.810 17.342 77.384 154.767 20.187 16.823 88.839 177.678 23.175 19.313 92.318 184.635 24.083 20.069 92.661 185.322 24.172 20.144 92.656 185.311 24.171 20.143 93.079 186.157 24.281 20.235 93.108 186.217 24.289 20.241 93.704 187.408 24.445 20.370 93.704 187.408 24.445 20.370 7.278.189 7.105.036 173.153 597.913,52 410.620 410.620 398.326 398.326 457.293 457.293 475.197 475.197 476.965 476.965 476.937 476.937 479.115 479.115 479.268 479.268 482.334 482.334 482.334 482.334 2007 2008 2 2009 3 2010 4 2011 5 2012 6 2013 7 2014 8 2015 9 2016 10
The exchange rate between Peruvian soles and American dollars is the most influencing variable for the above financial analyses. If the exchange rate takes the lower value in the period 1 January 2007 1 september 2009, as presented in the the Peruvian central bank webpage (http://estadisticas.bcrp.gob.pe/resultados.asp?sIdioma=1&sTipo=1&sChkCount=12&sFrecuencia=D), like in April 8 2008 when the exchange rate was set at S/.2,695 per 1USD$, Alternative 2 IRR=2% and NPV=-3,105,181 (negative). On the other hand, if the exchange rate takes the higher value in the same period (March 3 2009=S/.3,259 per 1USD$) Alternative 2 IRR=5% and NPV=-1,573,511 (negative). If the exchange rate takes a value 10% higher than the one used for the inicial financial analysis (i.e.
page 27
Original ER=3.24; 10% Higher ER=3,564), Alternative 2 IRR=7% and NPV=-947,176 (negative). It is then demonstrated that none variation on the exchange rate would modify AIPSAs choice to continue with Alternative 1: Continue with the existing situation. Other scenarios are not feasible: 1. Change in Bunker oil price is not feasible under this analysis due to the rules agreed in the Resources Exchange Agreement (REA) signed between both firms. Additionally, resources are exchanged based on its Net Calorific Value. Incomes and costs presented in the above analyses are made for accounting purposes; however, no money is involved in the trade. 2. Change in prices of bagasse or pith are also fixed by the REA 3. Change in the amount of bagasse sold to other consumers, is not feasible since theres no facilities able to process the amount of bagasse produced by AIPSA in the nearest 200km. 4. Step 4. Common practice analysis. Sub-step 4a: Analyze other activities similar to the proposed project activity: Common practice is to burn fossil fuels and in some cases varying amounts of bagasse. Burning foliage is not common practice, as is explained in the technology alternatives section of this VCS PD. Sub-step 4b: Discuss any similar Options that are occurring: There are no other projects burning residual foliage in Peru, and no other projects working with the systemic change to begin burning residual foliage in Peru.
B.6.
Emission reductions: B.6.1. Explanation of methodological choices:
>> Baseline emissions Baseline emissions include CO2 emissions from fossil fuel combustion in the boilers in the absence of the project activity and, if included in the project boundary, CH4 emissions from the treatment of biomass residues in the absence of the project activity: (1) BEy = BE HG , y + BE BF , y Where: BEy = Baseline emissions during the year y (tCO2e/yr) BEHG,y = Baseline emissions from fossil fuel combustion for heat generation in the boiler(s) (tCO2 /yr) BEBF,y = Baseline emissions due to uncontrolled burning or decay of the biomass residues (tCO2e/yr) a) Baseline emissions from fossil fuel combustion in boiler(s) for heat generation (BEHG,y) Baseline emissions from fossil fuel combustion in the boiler(s) are determined by multiplying the heat generated with fossil fuels that are displaced by biomass residues with the CO2 emission factor of the least carbon-intensive fossil fuels that would be used in the absence of the project activity and by dividing by the average net efficiency of heat generation in the boiler(s), as follows:
page 28
(2) BE HG , y =
HG PJ ,biomass , y EFFF ,CO2 , y
boiler , FF
Where: BEHG,y = Baseline emissions from fossil fuel combustion for heat generation in the boiler(s) (tCO2e /yr) HGPJ,biomass,y = Heat generated with incremental biomass residues used as a result of the project activity during the year y (GJ/yr) EFFF,CO2,y = CO2 emission factor of the fossil fuel type displaced by biomass residues (tCO2e /GJ) boiler,FF = Average net efficiency of heat generation in the boiler(s) when fired with fossil fuels Case B: Use of some biomass residues for heat generation in the absence of the project activity In this case, only the use of biomass residues beyond historical levels should be attributed to the CDM project activity. Hence, HGPJ,biomass,y refers to the additional (i.e. additional to the baseline scenario) quantity of heat generated from the combustion of biomass residues, as a result of the CDM project activity. As the level of biomass residue use in the absence of the project activity is associated with significant uncertainty, the monitoring plan uses as a conservative approach, for HGPJ,biomass,y the minimum value among the following two options: 1 option (3) HG PJ ,biomass , y = HG PJ ,biomass ,total , y MAX {HG biomass , historic , n ; HG biomass , historic , n 1 ; HG biomass , hisyoric , n 2
Where: HGPJ,biomass,y = Heat generated with incremental biomass residues used in the project activity during the year y (GJ/yr) HGPJ,biomass,total,y = Total heat generated from firing biomass residues in all boilers at the project site during the year y (GJ/yr) HGbiomass,historic,n = Historical annual heat generation from firing biomass residues in boilers at the project site during the year n (GJ/yr) n = Year prior to the implementation of the project activity 2 option (4) HG
HG biomass , historic , n HG biomass ,historic , n 1 HG biomass ,historic ,n 2 Where = HG PJ ,biomass ,total , y HG PJ ,total , y MAX ; ; HG total ,historic ,n 1 HG total ,historic ,n 2 HG total ,historic , n
PJ ,biomass , y
: HGPJ,biomass,y = Heat generated with incremental biomass residues used as a result of the project activity during the year y (GJ/yr) HGPJ,biomass,total,y = Total heat generated from firing biomass residues in all boilers at the project site during the year y (GJ/yr) HGPJ,total,y = Total heat generated in boilers at the project site, using both biomass residues and fossil fuels, during the year y (GJ/yr) HGbiomass,historic,n = Historical annual heat generation from using biomass residues in boilers at the project site during the year n (GJ/yr)
page 29
HGtotal,historic,n = Historical annual total heat generation, from using biomass residues and fossil fuels, in boilers at the project site during the year n (GJ/yr) n = Year prior to the implementation of the project activity The historical fraction of heat generation with biomass residues can be determined based on the quantities of biomass residue types k and fossil fuel types i used historically in the boiler(s) at the project site, as follows:
(5)
HG biomass ,historic ,n HG total , historic , n
BF BF
k k k ,n
k ,n
NCV k
i
NCV k + FC i ,n NCV i
b) Baseline emissions due to uncontrolled burning or decay of the biomass residues (BEBF,y) For this project BEBF, y is equal: (6) BE BF , y = GWPCH 4 BFPJ , k , y NCVk EFburning ,CH 4, k , y
k
Where: BEBF,y = Baseline emissions due to uncontrolled burning or decay of the biomass residues (tCO2e/yr) GWPCH4 = Global Warming Potential of methane valid for the commitment period (tCO2e/tCH4) BF PJ,k,y = Quantity of biomass residue type k used for heat generation as a result of the project activity during the year y (tons of dry matter or liter) NCVk = Net calorific value of the biomass residue type k (GJ/ton of dry matter or GJ/liter) EF burning,CH4 k,y = CH4 emission factor for uncontrolled burning of the biomass residue type k during the year y (tCH4/GJ) Project boundary includes uncontrolled burning or decay of biomass residues within baseline emissions. (See Table 7) Project Emissions (7) PE y = PE CO 2 , FF , y + PE CO 2 , EC , y + PE CO 2 ,TR , y + GWP CH 4 PE CH 4 , BF , y Where: PEy = Project emissions during the year y (tCO2/yr) PECO2,FF,y = CO2 emissions from on-site fossil fuel combustion attributable to the project activity (tCO2/yr) PECO2,EC,y = CO2 emissions from on-site electricity consumption attributable to the project activity (tCO2/yr) PECO2,TR,y = CO2 emissions from off-site transportation of biomass residues to the project site (tCO2/yr) PECH4,BF,y = CH4 emissions from combustion of biomass residues in the boiler(s) (tCH4/yr) a) CO2 emissions from on-site fossil fuel combustion (PECO2,FF,y) (8) PE CO2 , FF , y = FC on site , y NCV i EFCO2 , FF ,i
i
page 30
Where: PECO2,FF,y = CO2 emissions from on-site fossil fuel combustion attributable to the project activity (tCO2/yr) FCon-site,i,y = Quantity of fossil fuel type i combusted at the project site for purposes other than heat generation as a result of the project activity during the year y (mass or volume unit)6 NCVi = Net calorific value of the fossil fuel type i (GJ / mass or volume unit) EFCO2,FF,i = CO2 emission factor for fossil fuel type i (tCO2/GJ) FCon-site,i,y should not include fossil fuels co-fired in the boiler(s) but should include all other fossil fuel consumption at the project site that is attributable to the project activity, such as for on-site transportation or treatment of the biomass residues. b) CO2 emissions from on-site electricity consumption (PECO2,EC,y) (9) PE CO2 , EC , y = EC PJ , y EFgrid , y Where: PECO2,EC,y = CO2 emissions from on-site electricity consumption attributable to the project activity (tCO2/yr) ECPJ,y = On-site electricity consumption attributable to the project activity during the year y (MWh) EFgrid,y = CO2 emission factor for electricity used from the grid (tCO2/MWh). c) CO2 emissions from transportation of biomass residues to the project site (PETR,CO2,y) In cases where the biomass residues are not generated directly at the project site, project participants shall determine CO2 emissions resulting from transportation of the biomass residues to the project plant.
(10) PE CO2 ,TR , y =
BF
k
PJ , k , y
TL y
AVD y EFkm,CO2 , y
Where: PECO2,TR,y = CO2 emissions from off-site transportation of biomass residues to the project site (tCO2/yr) Ny = Number of truck trips during the year y AVDy = Average round trip distance (from and to) between the biomass fuel supply sites and the site of the project plant during the year y (km) EFkm,CO2,y Average CO2 emission factor for the trucks measured during the year y (tCO2/km) BFPJ,k,y = Quantity of biomass residue type k used for heat generation as a result of the project activity during the year y (tons of dry matter or liter)5 TLy = Average truck load of the trucks used (tons or liter) d) CH4 emissions from combustion of biomass residues in the boiler(s) (PECH4,BF,y) If this source has been included in the project boundary, emissions are calculated as follows: (11) PE CH 4, BF = EFCH 4 , BF
BF
k
PJ , k , y
NCVk
Where: PECH4,BF,y = CH4 emissions from combustion of biomass residues in the boiler(s) (tCH4/yr) EFCH4,BF = CH4 emission factor for the combustion of the biomass residues in the boilers (tCH4/GJ)
page 31
BFPJ,k,y = Quantity of biomass residue type k used for heat generation as a result of the project activity during the year y (tons of dry matter or liter)5 NCVk = Net calorific value of the biomass residue type k (GJ/ton of dry matter or GJ/liter)
Leakage Since use of biomass residues for paper production cause no leakage effects, QUIMPACs biomass residues consumption is ruled out according to AM0036 L3 approach. Given that other biomass residues buyers cannot be ruled out by no AM0036 leakage approach, leakage for biomass residues consumed by buyers other than QUIMPAC are calculated using AM0036 equation 17 (Eq. 12 below), as a conservative approach. (12) LE y = EFCO2 , LE BFLE , n , y NCV n
n
Where: LEy = Leakage emissions during the year y (tCO2/yr) EFCO2,LE = CO2 emission factor of the most carbon intensive fuel used in the country (tCO2/GJ) BFLE,n,y = Quantity of biomass residue type n used for heat generation as a result of the project activity during the year y and for which leakage can not be ruled out using one of the approaches L1, L2, L3 or L4 (tons of dry matter or liter) NCVn = Net calorific value of the biomass residue type n (GJ/ton of dry matter or GJ/liter) n = Biomass residue type n for which leakage can not be ruled out using one of the approaches L1, L2, L3 or L4 Emissions reductions (13) ER y = BE y PE y LE y Where: ERy = Emission reductions during the year y (tCO2/yr) BEy = Baseline emissions during the year y (tCO2/yr) PEy = Project emissions during the year y (tCO2/yr) LEy = Leakage emissions during the year y (tCO2/yr)
B.6.2. Data and parameters that are available at validation: (Copy this table for each data and parameter) Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied :
boiler -
Average net efficiency of heat generation in the boiler(s) when fired with fossil fuels On-site measurements 69% The overall heat generation system efficiency was calculated as an average of the boilers performance in the 2002 2004 period. The result of the boilers efficiency performance on such period is presented in the following table:
page 32
Period 2002 2003 2004
Boiler Eficiency 0.70 0.69 0.68
Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied:
Templates will be archived during two years after verification. Data#2: HGPJ,total,y GJ/yr Total heat generated in all boilers at the project site, firing both biomass residues and fossil fuels, during the year y
Calculated
Ex ante and ex post gross heat generation is presented below.

Period 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 HG pj,total, y (GJ/y) 2,785,085 2,932,935 2,737,003 2,677,058 3,060,036 3,494,503 3,644,015 3,504,504 3,504,504 3,504,504 3,504,504 3,504,504 3,504,504 3,504,504 3,504,504 3,504,504
Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied:
The gross heat generation is calculated by adding each fuel combusted which has been multiplied times its respective net calorific value, resulting in the gross available amount of heat generated to be used at AIPSA. Gross heat generation times the boiler efficiency equals the net heat generation useful for running all process activities. Records will be archived during two years after verification Data#2a: T1 C Boiler feed-water temperature Measured
Year 2007 2008 2009 2010 Yearly Average of steam temperature T1 116.72 115.46 124.01 105.68
Justification of the
An instant temperature level digital signal is produced per second by the Type J
page 33
choice of data or description of measurement methods and procedures actually applied :
thermocouple and transmitted to a central control panel that shows on screen the measurement taken by the instrument. Data on screen is digitally recorded at 10 seconds intervals, transmitted continually, and remains in digital format in the control panel hard drive for one month. Hourly, the supervisor in charge of the boiler manually writes down the measurement on screen in a paper template specially designed for this objective. The template contains one days information of the tracking variables. Daily templates are archived in folders in the security shelves of the control panel room. The project activity plans to modify the digital storage of this variable so that it will automatically be stored in the hard drive for minimum two years. Templates will be archived during two years after verification. Data#2b: T2 C Boiler overheated steam temperature Measured
Year 2007 2008 2009 2010 Yearly Average of steam temperature T2 344.73 362.57 409.49 396.24
Justification of the choice of data or description of measurement methods and procedures actually applied :
An instant temperature level digital signal is produced per second by the Type K thermocouple and transmitted to a central control panel that shows on screen the measurement taken by the instrument. Data on screen is digitally recorded at 10 second intervals and remains in digital format in the control panel hard drive for one month. Hourly, the boiler supervisor in charge writes down the measurement from the screen on a paper template specially designed for this objective. The template contains one days information of tracking variables. Daily templates are archived in folders in the security shelves of the control panel room. The project activity plans to modify the digital storage of this variable so that it will automatically be stored in the hard drive for minimum two years. Templates will be archived during two years after verification. Data#2c: P1 Bars Boiler feed-water pressure Measured
Year 2007 2008 2009 2010 Yearly Average feedwater pressure P1 34.87 34.90 41.29 40.73
Justification of the choice of data or
An instant pressure level digital signal is produced per second by the gauge and transmitted to a central control panel that shows on screen the measurement taken by
page 34
description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied:
the instrument. Data on screen is digitally recorded at ten second intervals and remains in digital format in the control panel hard drive for one month. The project activity plans to modify the digital storage of this variable so that it will automatically be stored in the hard drive for minimum two years. Templates will be archived during two years after verification. Data#2d: P2 Bars Boiler overheated steam pressure Measured
Year 2007 2008 2009 2010 P2 29.87 29.90 35.85 35.73
An instant pressure level digital signal is produced per second by the gauge and transmitted to a central control panel that shows on screen the measurement taken by the instrument. Data on screen is digitally recorded at ten second intervals and remains in digital format in the control panel hard drive for one month. Hourly, the boiler supervisor in charge writes down the measurement on screen on a paper template specially designed for this objective. The template contains one days information of tracking variables. Daily templates are archived in folders in the security shelves of the control panel room. The project activity plans to modify the digital storage of this variable so that it will automatically be stored in the hard drive for minimum two years. Templates will be archived during two years after verification. Data#2e: F Tn/h Boiler steam flow Measured
Year 2007 2008 F 52,691.33 49,256.07
Any comment:
An instant compensated mass flow digital signal is produced per second by the flowmeter and transmitted to a central control panel that shows on screen the measurement taken by the instrument. A mass flow totalizer aggregates mass flow. The integration time is 2-10 mseconds. Data on screen is digitally recorded at ten second intervals and remains in digital format in the control panel hard dive for one month. Hourly, the boiler supervisor in charge writes down the measurement from the screen on a paper template specially designed for this objective. The template contains one days information of tracking variables. Daily templates are archived in folders in the security shelves of the control panel room. The project activity plans to modify the digital storage of this variable so that it will automatically be stored in the hard drive for minimum two years. Templates will be archived during two years after verification.
page 35
Data / Parameter: Data unit: Description: Source of data used: Value applied:
BFk,y , BFPJ,k,y Tons of dry matter Quantity of biomass residue type k fired in all boiler(s) at the project site during the year y On-site measurements Values used in calculation are presented in the following Table:
Period 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 BF bagasse,y Ton 245,383 255,931 286,237 283,912 316,590 356,850 372,028 372,028 372,028 372,028 372,028 372,028 372,028 372,028 372,028 372,028 BF pith,y BF foliage, y Ton Ton 3,801 8,741 478 1,640 325 -
Any comment:
On October 2008, new automated scales were installed at AIPSAs facilities in order to measure biomass residues delivered to the CBS boiler. The equipment installed is a Toledo scale, model 9270 Integradora. Prior to the new automated scales, the amount of biomass residues fired in the CBS boiler was calculated based on the total sugar cane entering AIPSAs facilities. A summary of how the calculation was performed is presented in the file entitled bagasse 2003-2005.xls. The file details the procedure for calculating biomass residues burned at the CBS boiler. Pith fired at the CBS boiler is measured with QUIMPACs digital scale. Records stored in the Titanium central information system and Templates containing bagasse use calculations, humidity and ash content will be archived during two years after verification.
FCi,n = FCon-site,i,y
Data / Parameter: Data unit: Description: Source of data used: Value applied:
mass or volume unit Quantity of fossil fuel type i fired in all boiler(s) at the project site during the historical year n On-site measurements Values used in calculation are presented in the following Table:
page 36
Period 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
FC i,n Ton 9,852 10,335 208 1 -
Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment:
Two Quimpac fuel storage tanks were used to store residual oil No. 6 (Bunker fuel) traded in accordance to the Resources Exchange Agreement. The tanks have a fixed volume. Both AIPSA and Quimpac representatives regularly survey the height of fuel stored. Every time Quimpac added fuel into the tank a cross checking between both representatives was performed in order to secure the amount of fuel sold/purchased. Fuel height was measured by means of a calibrated iron ruler as this is a common practice for measuring fuel storage in the petroleum sector. The CBS boiler does not have a system for measuring the combustion of liquid or gaseous fuels because It can not burn these fuels. EFFF,CO2,y tCO2e/GJ CO2 emission factor of the fossil fuel type displaced by biomass residues for the year y Project participants use 2006 IPCC Guidelines for National Greenhouse Gas Inventories Vol 2 Energy, Chapter 2 stationary combustion page 2.16 table 2.2 Bunker fuel, Default emission factor = 77,400 Kg CO2/ TJ or in the following link: http://www.ipccnggip.iges.or.jp/public/2006gl/pdf/2_Volume2/V2_2_Ch2_Stationary_Combustion. pdf 0.0774 IPCC default emission factor.
Data / Parameter: Data unit: Description: Source of data used:
Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description:
MWh Highest historical electricity generation at the project site during the most recent three years prior to the implementation of the project activity and electricity
page 37
Source of data used: Value applied:
generation during the year y at the project site Power plant operation monthly report
Year 2001 2002 2003 2004 2005 2006 2007 2008 MWh/ao 14.717,80 14.969,62 17.285,82 15.746,36 9.552,717 9.155,503 14.008,295 7.220,39
The energy is registred by an electronic Watt meter name brand ABB series #01201163, in coordination between AIPSA ans CAHUA S.A., the electric service utility company. Measurements are taken from the meter monthly. The responsible technician is Ing. Juan Luna Chief of the Area of Electrical Instrumentation.
Moisture content of biomass % water content Moisture content of each biomass residue type k On-site measurements Period Bagasse %water content
Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description:
Pith %water content 2002 50.73 54.73 2003 50.84 54.84 2004 51.08 55.08 2005 50.77 54.77 2006 51.07 55.07 2007 50.83 0.00 2008 51.14 0.00 2009 49.89 0.00 2010 49.67 0.00 AIPSAs standard NTP 207,063:2008 (detailed in Annex 1 monitoring plan) determines bagasse humidity content according to the document ICUMSA GS7-5 (1994) The Determination of Moisture in Cane and Bagasse by Oven Drying. The calculation of pith humidity is based in an analysis simultaneously performed during 2 months at Quimpac and AIPSA laboratories, where pith humidity range was found between 3.5 and 4.5 more than bagasse, reaching by agreement a value of 4 points higher than the measured bagasse humidity. Templates will be archived during two years after verification.
NCVk and NCVi
GJ/ton of dry matter or GJ/liter Net calorific value of the biomass residue type k and net calorific value of the fossil fuel type i
page 38
Source of data used: Value applied:
Provider data and calculated Values used in calculation are presented in the following Table:
Period 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 NVC Bagasse (GJ/Ton) 9.48 9.42 9.47 9.42 9.67 9.79 9.80 9.42 9.42 9.42 9.42 9.42 9.42 9.42 9.42 9.42 NVC Pith (GJ/Ton) 8.73 8.59 8.70 8.70 8.70 8.70 8.70 8.70 8.70 8.70 8.70 8.70 8.70 8.70 8.70 8.70 NVC fossil Fuel (GJ/Ton) 43.17 43.17 43.17 43.17 43.17 43.17 43.17 43.17 43.17 43.17 43.17 43.17 43.17 43.17 43.17 43.17 NVC Foliage (GJ/Ton) 0.00 0.00 8.05 8.00 8.20 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00
Bunker oil NCV measurement is performed by Petroper. Bagasse, Pith and foliage NCVs are based on humidity content of each fuel according to Hugots Handbook. Humidity measurement follows variable Moisture content of biomass.
The NCV data are recorded daily in the Titanium System.

ECPJ,y
MWh On-site electricity consumption attributable to the project activity during the year y On-site measurements Values used in calculation are presented in the following Table:
Period 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 EC pj,y 6,092 9,214 11,968 36,190 28,464 32,327 32,327 32,327 32,327 32,327 32,327 32,327 32,327 32,327
Justification of the
Monthly energy bills will be manually reported to local database.
page 39
choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: EFgrid,y tCO2/MWh CO2 emission factor for electricity used from the grid. Emission factor taken from Poechos I project. Registration Date: 14 Nov 2005. CDM PDD Page 9 or in the following link : http://cdm.unfccc.int/UserManagement/FileStorage/RV1CUGCHTF2HXTZIRZP4F 1ST26GIS9 0.54493 N/A
Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied:
TLy Tons Average truck load of the trucks used Determined by averaging the weights of each truck carrying sugarcane into the project plant. 30 Ton Every truck entering AIPSAs facilities loaded with sugarcane and foliage is weighed at the entrance platform scale. The weight measurement is recorded and aggregated daily in the Titanium central information system.
AVDy
Km
Average return trip distance (from and to) between the biomass fuel supply sites and the site of the project plant during the year y Records of project participants related to the origin of the foliage in the AIPSAs Field Inventories. 0 Km for Bagasse and Pith because this biomass residues are generated in the facility. 31 Km is the maximum return trip distance for foliage transport. The foliage is collected from the sugarcane fields, where it was traditionally burn or degraded. The distance between each of the fields and the project plant is registered in the Field
page 40
Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment:
Inventories in the Titanium System. The measurement is taken in both trajectories (come and back). The distance measurement is recorded in the Titanium system in the Fields inventories.
Templates will be archived during two years after verification. EFkm, co2, y tCO2/Km Average CO2 emission factor for the trucks measured during the year y IPCC default values. 0.00119 IPCC default emission factor.
EFCH4,BF tCH4/GJ CH4 emission factor for the combustion of the biomass residues in the boilers AM0036 page 18 41.1 kg/TJ or 0.0000411 Ton CH4/GJ Default CH4 emission factor
EF burning, CH4, k,y tCH4/GJ CH4 emission factor for uncontrolled burning of the biomass residue type k during the year y AM0036 v 2.1 page 14. Default value in the 100% of uncertainty 0.001971 IPCC default emission factor.
page 41
Data / Parameter: Data unit: Description: Source of data used:
Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment:
EFCO2 LE,y tCO2e/GJ CO2 emission factor of the most carbon intensive fuel used in the country Section 6.4 p.23 of the attached Balance Nacional de Energa 2007 (2007 National Energy Overview states that during the period comprised during 1985-2007 the most used fossil fuels in the peruvian agroindustrial sector are: Gasolina Motor (GM) + Kerosene (KE), Diesel and Petrleo Industrial. In p.196 Petroleo Industrial is defined as a conglomerate of heavy petroleum refining residues and generally used in boilers, electricity gensets and navigation. In the Peruvian petroleo industrial market exist two references with similar characteristics: Petroleo residual No. 6 (bunker oil No.6) and residual 500, being bunker oil No. 6 the heavier fraction. As mentioned above, Bunker oil No. 6 is the fuel used to run the FW boiler and, therefore, constitutes the baseline fuel for this project activity. Bunker Oil No.6 is referenced in the Resources Exchange Agreement as the fuel to be traded between QUIMPAC and AIPSA. According to 2006 IPCC guidelines or in the following link: http://www.ipccnggip.iges.or.jp/public/2006gl/pdf/2_Volume2/V2_2_Ch2_Stationary_Combustion. pdf default residual fuel emission factor = 77,400 Kg CO2/ TJ. As a result, Bunker Oil N 6 is the most carbon intensive fuel of those used in the Peruvian agroindustrial sector. 0.0774 IPCC default emission factor.
B.6.3. Ex-ante calculation of emission reductions: >> Baseline emission reduction (BEy) is calculated as follow:
Period 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 BE y Ton CO2 /yr 140,473 134,561 160,853 183,686 191,550 184,217 184,217 184,217 184,217 184,217 184,217 184,217 184,217 184,217 BE HG,y Ton CO2 /yr 140,222 134,513 160,853 183,686 191,550 184,217 184,217 184,217 184,217 184,217 184,217 184,217 184,217 184,217 BE BF,y Ton CO2 /yr 251 48 -
The calculation of Project Emissions (PEy) is including: emissions from on-site fossil fuel combustion, emissions from on-site electricity consumption, emissions from off-site transportation of biomass
page 42
residues and CH4 emissions from combustion of biomass residues in the boiler(s). Following table is showing calculation:
Period 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 PE,y Ton CO2 /yr 6,369 7,332 9,163 22,741 18,656 20,641 20,641 20,641 20,641 20,641 20,641 20,641 20,641 20,641 PET,y Ton CO2 /yr PEFF,y Ton CO2 /yr 694.75 3.49 PE ec,y Ton CO2 /yr 3,320 5,021 6,521 19,721 15,511 17,616 17,616 17,616 17,616 17,616 17,616 17,616 17,616 17,616 PE biomass,CH4 ,y Ton CO2 /yr 2,354.56 2,310.57 2,641.12 3,016.07 3,145.15 3,024.74 3,024.74 3,024.74 3,024.74 3,024.74 3,024.74 3,024.74 3,024.74 3,024.74
Leakage emissions during crediting period are calculated as following table:

Period 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Ly Ton CO2 /yr 9,765.59 7,852.66 11,100.24 11,686.27 11,732.73 11,334.41 11,338.03 11,410.55 11,410.55 11,410.55 11,410.55 11,410.55 11,410.55 11,410.55 EF CO2, le Ton CO2/ GJ 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 BF bagasse sold others,y Ton 13,323.16 10,770.23 14,837.53 15,418.46 15,475.82 15,545.59 15,550.56 15,650.02 15,650.02 15,650.02 15,650.02 15,650.02 15,650.02 15,650.02 NVC,bagasse GJ/ Ton 9.47 9.42 9.67 9.79 9.80 9.42 9.42 9.42 9.42 9.42 9.42 9.42 9.42 9.42
B.6.4
Summary of the ex-ante estimation of emission reductions:
The table below is presenting summary of the estimation of emission reduction during crediting period January 1st 2007 to December 31st 2020. Following table is including baseline emissions, project emissions and leakage.
Period 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total Average ERy Ton CO2/yr 124,339 119,377 140,590 149,259 161,161 152,241 152,238 152,165 152,165 152,165 152,165 152,165 152,165 152,165 BE y Ton CO2 /yr 140,473 134,561 160,853 183,686 191,550 184,217 184,217 184,217 184,217 184,217 184,217 184,217 184,217 184,217 PE y Ton CO2 /yr 6,369 7,332 9,163 22,741 18,656 20,641 20,641 20,641 20,641 20,641 20,641 20,641 20,641 20,641 Ly Ton CO2 /yr 9,766 7,853 11,100 11,686 11,733 11,334 11,338 11,411 11,411 11,411 11,411 11,411 11,411 11,411 2,064,362 147,454
page 43
B.7.
Application of the monitoring methodology and description of the monitoring plan: B.7.1 Data and parameters monitored:
boiler -
Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied:
Average net efficiency of heat generation in the boiler(s) when fired with fossil fuels On-site measurements 69%
The overall heat generation system efficiency was calculated as an average of the boilers performance in the 2002 2004 period. The result of the boilers efficiency performance on such period is presented in the following table:
Period 2002 2003 2004 Boiler Eficiency 0.70 0.69 0.68
QA/QC procedures to be applied:
Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5
Efficiencies were found individually as power delivered to steam and generated power for each fuel is known; heat value is known and respective amount of mass, then for the current calculation, the global efficiency is found; this involves total delivery steam energy by energy generated per each fuel. Templates will be archived during two years after verification. Data#2: HGPJ,total,y GJ/yr Total heat generated in all boilers at the project site, firing both biomass residues and fossil fuels, during the year y Calculated The table below shows the gross heat generation for the period 2005-2020. The gross heat generation is calculated by adding each fuel combusted which has been multiplied times its respective net calorific value, resulting in the gross available amount of heat generated to be used at AIPSA. Gross heat generation times the boiler efficiency equals the net heat generation useful for running all process activities. The variables required to measure net heat generation are as follows: Data#2a:T1 (Temperature of water), Data#2b:T2 (Temperature of over heat steam), Data#2c:P1 (Boiler feed-water pressure), Data#2d:P2 (Boiler overheated steam pressure), Data#2e:F (Flow-Boiler steam flow)
page 44
The period comprised between 2005-2006 presents the final calculation of heat generated during the period based upon the amount of bagasse, pith and fossil fuel burned in the Foster Wheeler Boiler and Edge Moore boilers and their corresponding Calorific Values. Ex ante and ex post gross heat generation is presented below.
Period 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 HG pj,total, y (GJ/y) 2,785,085 2,932,935 2,737,003 2,677,058 3,060,036 3,494,503 3,644,015 3,504,504 3,504,504 3,504,504 3,504,504 3,504,504 3,504,504 3,504,504 3,504,504 3,504,504
Description of measurement methods and procedures to be applied: QA/QC procedures to be applied:
Variables data #2a through 2d determines water and steam enthalpies; the measurement methods for these variables are detail below. Difference between enthalpies multiplied by Variable data #2e determines the instant amount of heat produced and transferred to steam. Heat production is aggregated to obtain hourly, daily, monthly and yearly heat production. Calculation of HGpj,total,y is performed on hourly basis. Since heat generation is a calculated variable, QA/QC procedures are the same as those presented in variables data #2a-2e Records will be archived during two years after verification Data#2a: T1 C Boiler feed-water temperature Measured
Year 2007 2008 2009 2010
Yearly Average of steam temperature T1 116.72 115.46 124.01 105.68
Description of measurement methods and procedures to be applied:
Measurement equipment to be used:
Type J thermocouple with a temperature transmitter type 20TT100. Specifically, the Smar TT300 is a transmitter mainly intended for measurement of temperature
page 45
using RTDs or thermocouples. How the measurement is undertaken: An instant temperature level digital signal is produced per second by the Type J thermocouple and transmitted to a central control panel that shows on screen the measurement taken by the instrument. Data on screen is digitally recorded at 10 seconds intervals, transmitted continually, and remains in digital format in the control panel hard drive for one month. Hourly, the supervisor in charge of the boiler manually writes down the measurement on screen in a paper template specially designed for this objective. The template contains one days information of the tracking variables. Daily templates are archived in folders in the security shelves of the control panel room. The project activity plans to modify the digital storage of this variable so that it will automatically be stored in the hard drive for minimum two years. Calibration procedures applied: According to manufacturers specifications first calibration of thermocouples is performed after 3 years of boilers start up. First calibration is programmed on December 09. Accuracy of the measurement Higher than 99.5%. According to method: manufacturers specifications the accuracy is 0.02%. Responsible person/entity that should Chief of Power Plant, Engineer Erwin Shult undertake the measurements: Guimet Measurement interval: An instant temperature level digital signal is produced per second by the Type J thermocouple and transmitted to a central control panel that shows on screen the measurement taken by the instrument. An instant temperature level digital signal is produced per second by the Type J thermocouple and transmitted to a central control panel that shows on screen the measurement taken by the instrument. Data on screen is digitally recorded at ten seconds intervals and remains in digital format in the control panel hard disk for one month. Hourly, the boiler supervisor in charge writes down the measurement on screen in a paper template specially designed for this aim. The template contains one days information of tracking variables. Daily templates are archived in folders in the security shelves of the control panel room. The Chief Power supervisor performs monthly and yearly aggregates. Redundancy of the monitoring equipment is performed by field measurement instruments and monitoring of other tracking variables (e.g. pressure or flow) which
page 46
are also taken from field instruments and the control panel. Supervisors take regular readings from temperature gauges on the boilers and compare them with readings in the control panel. Deviations higher than 5% of normal condition at the working pressure or flow, switch on and alarm to all area supervisors. Templates will be archived during two years after verification. Data#2b: T2 C Boiler overheated steam temperature Measured
Year 2007 2008 2009 2010
Yearly Average of steam temperature T2 344.73 362.57 409.49 396.24
Equipment that will be used:
How the measurement is undertaken:
Calibration procedures applied:
Type K thermocouple with a temperature transmitter type 20TT330. Specifically the Smar TT300 Series is a transmitter mainly intended for measurement of temperature using RTDs or thermocouples. An instant temperature level digital signal is produced per second by the Type K thermocouple and transmitted to a central control panel that shows on screen the measurement taken by the instrument. Data on screen is digitally recorded at 10 second intervals and remains in digital format in the control panel hard drive for one month. Hourly, the boiler supervisor in charge writes down the measurement from the screen on a paper template specially designed for this objective. The template contains one days information of tracking variables. Daily templates are archived in folders in the security shelves of the control panel room. The project activity plans to modify the digital storage of this variable so that it will automatically be stored in the hard drive for minimum two years. According to manufacturers specifications the first calibration of thermocouples is performed after 3 years of boilers start up. The first calibration is programmed on
page 47
December 09. Accuracy of the measurement Higher than 99.5%. According to method: manufacturers specifications the accuracy is 0.02%. Responsible person/entity that should Chief of Power Plant, Engineer Erwin Shult undertake the measurements: Guimet Measurement interval: An instant temperature level digital signal is produced per second by the Type J thermocouple and transmitted to a central control panel screen. An instant temperature level digital signal is produced per second by the Type J thermocouple and transmitted to a central control panel that shows on screen the measurement taken by the instrument. Data on screen is digitally recorded at ten second internals and remains in digital format in the control panel hard drive for one month. Hourly, the boiler supervisor in charge writes down the measurement from the screen on a paper template specially designed for this objective. The template contains one days information of tracking variables. Daily templates are archived in folders in the security shelves of the control panel room. The Chief Power supervisor performs monthly and yearly aggregates. Redundancy of the monitoring equipment is performed by field measurement instruments and monitoring of other tracking variables (e.g. pressure or flow) which are also taken from thermometers on the boilers, and the control panel. Supervisors take regular readings from field instruments and compare them with readings from the control panel. Deviations higher than 5% of normal condition at the working pressure or flow, switch on an alarm to alert all area supervisors. Templates will be archived during two years after verification. Data#2c: P1 Bars Boiler feed-water pressure Measured
Year 2007 2008 2009 2010
Yearly Average feedwater pressure P1 34.87 34.90 41.29 40.73
The Smar LD300 series, type LD302, Differential pressure gauge appliance with capacitive transmitter type 20PT200. An instant pressure level digital signal is produced per second by the gauge and transmitted to a central control panel that shows on screen the measurement taken by
page 48
the instrument. Data on screen is digitally recorded at ten second intervals and remains in digital format in the control panel hard drive for one month. The project activity plans to modify the digital storage of this variable so that it will automatically be stored in the hard drive for minimum two years. Calibration procedures are applied: According to manufacturers specifications first calibration of pressure devices is performed after 3 years of boilers start up. First calibration is programmed on December 09. Accuracy of the measurement Higher than 99.5%. According to method: manufacturers specifications the accuracy is 0.04%. Responsible person/entity that should Chief of Power Plant, Engineer Erwin Shult undertake the measurements: Guimet Measurement interval: An instant pressure level digital signal is produced per second by the gauge and transmitted to a central control panel that shows on screen the measurement taken by the instrument. An instant pressure level digital signal is produced per second by gauge and transmitted to a central control panel that shows on screen the measurement taken by the instrument. Data on screen is digitally recorded at ten second intervals and remains in digital format in the control panel hard drive for one month. Redundancy of the monitoring equipment is performed by field measurement instruments and monitoring of other tracking variables (e.g. temperature or flow) which are also taken from field instruments and the control panel. Supervisors take regular readings from field instruments and compare them with readings in the control panel. Deviations higher than 5% of normal condition at the working temperature or flow, switch on an alarm to alert all area supervisors. Templates will be archived during two years after verification. Data#2d: P2 Bars Boiler overheated steam pressure Measured
Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of
Year 2007 2008 2009 2010
P2 29.87 29.90 35.85 35.73
The Smar LD300 series, Type LD302,
page 49
measurement methods and procedures to be applied:
differential pressure gauge appliance with capacitive transmitter type 20PT200 How the measurement is undertaken: An instant pressure level digital signal is produced per second by the gauge and transmitted to a central control panel that shows on screen the measurement taken by the instrument. Data on screen is digitally recorded at ten second intervals and remains in digital format in the control panel hard drive for one month. Hourly, the boiler supervisor in charge writes down the measurement on screen on a paper template specially designed for this objective. The template contains one days information of tracking variables. Daily templates are archived in folders in the security shelves of the control panel room. The project activity plans to modify the digital storage of this variable so that it will automatically be stored in the hard drive for minimum two years. Calibration procedures are applied: According to manufacturers specifications first calibration of pressure devices is performed after 3 years of boilers start up. First calibration is programmed on December 09. Accuracy of the measurement Higher than 99.5% According to method: manufacturers specifications the accuracy is 0.04%. Responsible person/entity that should Chief of Power Plant, Engineer Erwin Shult undertake the measurements: Guimet Measurement interval: An instant pressure level digital signal is produced per second by the gauge and transmitted to a central control panel that shows on screen the measurement taken by the instrument. An instant pressure level digital signal is produced per second by gauge and transmitted to a central control panel that shows on screen the measurement taken by the instrument. Data on screen is digitally recorded at ten second intervals and remains in digital format in the control panel hard drive for one month. Hourly, the boiler supervisor in charge writes down the measurement from the screen on a paper template specially designed for this objetive. The template contains one days information of tracking variables. Daily templates are archived in folders in the security shelves of the control panel room. The Chief Power supervisor performs monthly and yearly aggregates. Redundancy of the monitoring equipment is performed by field measurement instruments and monitoring of other tracking variables (e.g. temperature or flow)
page 50
Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied:
which are also taken from field instruments and the control panel. Supervisors take regular readings from field instruments and compare them with readings in the control panel. Deviations higher than 5% of normal condition at the working temperature or flow, switch on and alarm to alert all area supervisors. Templates will be archived during two years after verification. Data#2e: F Tn/h Boiler steam flow Measured
Year 2007 2008
F 52,691.33 49,256.07
Calibration procedures are applied:
The Smar LD300 series, Type LD302, Nozzle type differential pressure appliance with temperature measurement and flow transmitter type 20FT300. The instrument automatically calculates the compensated mass flow according to temperature changes. Two signals are sent to the control panel: the corrected and the uncorrected measurements. An instant compensated mass flow digital signal is produced per second by the flowmeter and transmitted to a central control panel that shows on screen the measurement taken by the instrument. A mass flow totalizer aggregates mass flow. The integration time is 2-10 mseconds. Data on screen is digitally recorded at ten second intervals and remains in digital format in the control panel hard dive for one month. Hourly, the boiler supervisor in charge writes down the measurement from the screen on a paper template specially designed for this objective. The template contains one days information of tracking variables. Daily templates are archived in folders in the security shelves of the control panel room. The project activity plans to modify the digital storage of this variable so that it will automatically be stored in the hard drive for minimum two years. According to manufacturers specifications
page 51
first calibration of thermocouples is performed after 3 years of boilers start up. First calibration is programmed on December 09. Accuracy of the measurement Higher than 99.5%. According to method: manufacturers specifications the accuracy is 0.04%. Responsible person/entity that should Chief of Power Plant, Engineer Erwin Shult undertake the measurements: Guimet Measurement interval: An instant compensated massflow digital signal is produced per second by the flowmeter and transmitted to a central control panel that shows on screen the measurement taken by the instrument. An instant compensated mass flow measurement digital signal is produced per second by the Type J thermocouple and transmitted to a central control panel that shows on screen the measurement taken by the instrument. Data on screen is digitally recorded at ten second intervals and remains in digital format in the control panel hard drive for one month. Hourly, the boiler supervisor in charge writes down the measurement on screen on a paper template specially designed for this objective. The template contains one days information of tracking variables. Daily templates are archived in folders in the security shelves of the control panel room. The Chief Power supervisor performs monthly and yearly aggregates. Redundancy of the monitoring equipment is performed by field measurement instruments and monitoring of other tracking variables (e.g. pressure or flow) which are also taken from field instruments and the control panel. Supervisors take regular readings from field instruments and compare them with readings in the control panel. Deviations higher than 5% of normal condition at the working pressure or flow, switch on and alarm to alert all area supervisors. Templates will be archived during two years after verification. BFk,y , BFPJ,k,y Tons of dry matter Quantity of biomass residue type k fired in all boiler(s) at the project site during the year y On-site measurements Values used in calculation are presented in the following Table:
page 52
Period 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
BF bagasse,y Ton 245,383 255,931 286,237 283,912 316,590 356,850 372,028 372,028 372,028 372,028 372,028 372,028 372,028 372,028 372,028 372,028
BF pith,y BF foliage, y Ton Ton 3,801 8,741 478 1,640 325 -
Accuracy of the measurement
On October 2008, new automated scales were installed at AIPSAs facilities in order to measure biomass residues delivered to the CBS boiler. The equipment installed is a Toledo scale, model 9270 Integradora. Prior to the new automated scales, the amount of biomass residues fired in the CBS boiler was calculated based on the total sugar cane entering AIPSAs facilities. A summary of how the calculation was performed is presented in the file entitled bagasse 2003-2005.xls. The file details the procedure for calculating biomass residues burned at the CBS boiler. Pith fired at the CBS boiler is measured with QUIMPACs digital scale. Digital scales send an instant mass weight signal of the biomass feeding into the boiler to the control panel. Data is aggregated and stored in the central information system called Titanium. When these scales are out of operation, the amount of bagasse is derived from the amount of heat generated by the boiler and the NCV of the bagasse. The digital panel of the scales shows when calibration is necessary. According to manufacturers specifications the calibration of the scales has four methods: electronic, standard weight, current, real weight. The calibration is performed every month or when significant changes occur to the ratio of vapor produced/bagasse burned. Higher tan 99.2%. According to manufacturers
page 53
A per minute record of the aggregated measure is stored at the Titanium central information system. During the period January 2007 October 2008 the amount of biomass residues fired at the CBS boiler was calculated by means of the sugar cane platform scales and the humidity content and ash content in cane to be milled at AIPSAs facilities. These calculations were performed in a daily fashion. From October 2008 and beyond, biomass residues are measured directly from the digital scales in a continuous fashion. Data will be reported for 1 hour periods. A daily report is delivered under this activity. The humidity content and ash content in cane to be milled are also recorded for quality assurance of sugar to be produced. Crosscheck of the measurements with an annual energy balance that is based on purchased quantities and stock changes of the bagasse. Records stored in the Titanium central information system and Templates containing bagasse use calculations, humidity and ash content will be archived during two years after verification.
FCi,n = FCon-site,i,y
method: Responsible person/entity that should undertake the measurements: Measurement interval:
specifications the accuracy is 0,25%. Chief of Power Plant, Engineer Erwin Shult Guimet
Any comment:
Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5
mass or volume unit Quantity of fossil fuel type i fired in all boiler(s) at the project site during the historical year n On-site measurements Values used in calculation are presented in the following Table:
Period 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 FC i,n Ton 9,852 10,335 208 1 -
Two Quimpac fuel storage tanks were used to store residual oil No. 6 (Bunker fuel) traded in accordance to the Resources Exchange Agreement. The tanks have a fixed volume. Both AIPSA and Quimpac representatives regularly survey the height of fuel stored. Every time Quimpac added fuel into the tank a cross checking between
page 54
both representatives was performed in order to secure the amount of fuel sold/purchased. Fuel height was measured by means of a calibrated iron ruler as this is a common practice for measuring fuel storage in the petroleum sector. Daily checking. Crosscheck of the measurements with an annual energy balance that is based on purchased quantities and stock changes. The CBS boiler does not have a system for measuring the combustion of liquid or gaseous fuels because It can not burn these fuels. EFFF,CO2,y tCO2e/GJ CO2 emission factor of the fossil fuel type displaced by biomass residues for the year y Project participants use 2006 IPCC Guidelines for National Greenhouse Gas Inventories Vol 2 Energy, Chapter 2 stationary combustion page 2.16 table 2.2 Bunker fuel, Default emission factor = 77,400 Kg CO2/ TJ or in the following link: http://www.ipccnggip.iges.or.jp/public/2006gl/pdf/2_Volume2/V2_2_Ch2_Stationary_Combustion. pdf 0.0774
Any comment:
Data / Parameter: Data unit: Description: Source of data to be used:
Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description:
None. IPCC default emission factor.
Official data of high quality is used. Templates will be archived during two years after verification. MWh Highest historical electricity generation at the project site during the most recent three years prior to the implementation of the project activity and electricity generation during the year y at the project site Power plant operation monthly report
Source of data to be used:
page 55
Value of data applied for the purpose of calculating expected emission reductions in section B.5
Year 2001 2002 2003 2004 2005 2006 2007 2008
MWh/ao 14.717,80 14.969,62 17.285,82 15.746,36 9.552,717 9.155,503 14.008,295 7.220,39
Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5
The energy is registred by an electronic Watt meter name brand ABB series #01201163, in coordination between AIPSA ans CAHUA S.A., the electric service utility company. Measurements are taken from the meter monthly. The responsible technician is Ing. Juan Luna Chief of the Area of Electrical Instrumentation. AIPSA and CAHUA S.A compare measurements each month. Templates will be archived during two years after verification. Moisture content of biomass % water content Moisture content of each biomass residue type k On-site measurements
Pith %water content 2002 50.73 54.73 2003 50.84 54.84 2004 51.08 55.08 2005 50.77 54.77 2006 51.07 55.07 2007 50.83 0.00 2008 51.14 0.00 2009 49.89 0.00 2010 49.67 0.00 Equipment that will be used: Precision scale 6,100 gr OHAUS 038LM-2008 Model EP6102C is used to measure weight; Oven with temperature control, Model TCM44 dries the biomass. How the measurement is undertaken: AIPSAs standard NTP 207,063:2008 (detailed in Annex 1 monitoring plan) determines bagasse humidity content according to the document ICUMSA GS7-5 (1994) The Determination of Moisture in Cane and Bagasse by Oven Drying. The calculation of pith humidity is based
Period
Bagasse %water content
page 56
in an analysis simultaneously performed during 2 months at Quimpac and AIPSA laboratories, where pith humidity range was found between 3.5 and 4.5 more than bagasse, reaching by agreement a value of 4 points higher than the measured bagasse humidity. Calibration procedures are applied: The external calibration is realized annually but every month the instrumentation area realizes verification of the instruments and adjusts when necessary. According to manufacturers specifications, the external calibration is done by InCALTM , a laboratory accredited in Peru by IDECOPI. The Annex 108 shows the calibration certificate 038-LM-2008 granted on 200809-19 (detailed in Annex 2 monitoring plan). According to manufacturers specifications, the ovens external calibration is done annually. The Annex 3 monitoring plan shows the ovens external calibration certificates LMC0246-08 granted on 18-2-08 by a laboratory accredited in Brasil. Accuracy of the measurement method: According to manufacturers specifications for scale, the accuracy is 0.01 gr. In accordance with NTP 207.063:2008 the oven has 160 liters of capacity and works at 105C +/- 3 C. Responsible person/entity that should The monthly verification is performed by undertake the measurements: AIPSAs Instrumentation Area (Eng. Cesar Cornejo and Eng. Carlos Horna.) Quality Assurance Laboratory. Measurement interval: Humidity is measured every two hours every day and recorded in the Titanium System. Measurements are compared with the expected range. Templates will be archived during two years after verification.
NCVk and NCVi
QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description:
GJ/ton of dry matter or GJ/liter Net calorific value of the biomass residue type k
page 57
Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5
and net calorific value of the fossil fuel type i Provider data and calculated Values used in calculation are presented in the following Table:
Period 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 NVC Bagasse (GJ/Ton) 9.48 9.42 9.47 9.42 9.67 9.79 9.80 9.42 9.42 9.42 9.42 9.42 9.42 9.42 9.42 9.42 NVC Pith (GJ/Ton) 8.73 8.59 8.70 8.70 8.70 8.70 8.70 8.70 8.70 8.70 8.70 8.70 8.70 8.70 8.70 8.70 NVC fossil Fuel (GJ/Ton) 43.17 43.17 43.17 43.17 43.17 43.17 43.17 43.17 43.17 43.17 43.17 43.17 43.17 43.17 43.17 43.17 NVC Foliage (GJ/Ton) 0.00 0.00 8.05 8.00 8.20 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00
Accuracy of the measurement method:
The Net Calorific Value of bunker fuel No.6 used for heat generation was provided by Petroper which is the fossil fuel provider. The NCV values for bagasse, pith and foliage were provided by AIPSAs Laboratory (Aseguramiento de la Calidad) based upon formulae from E. Hugot manual, Manual de Ingenieros Azucareros page 623 (detailed in Annex 4 monitoring plan). Biomass residues humidity is calculated daily at AIPSAs laboratory facilities. Bunker oil NCV measurement is performed by Petroper. Bagasse, Pith and foliage NCVs are based on humidity content of each fuel according to Hugots Handbook. Humidity measurement follows variable Moisture content of biomass. The NCV data are recorded daily in the Titanium System. In accordance to Annex 5 Plan de calibracion de balanzas standard calibration of scales are performed every year but are verified and adjusted monthly. High
page 58
Responsible person/entity that should Engineer Carlos Horna, Quality undertake the measurements: Assurance. Measurement interval: Daily Humidity is measured every two hours every day. To measure biomass residues humidity, AIPSAs laboratory facilities use a scale and a lab oven. The calibration certificate for the laboratory scale is presented in Annex 108 shows the calibration certificate 038-LM-2008 granted on 2008-09-19 (detailed in Annex 2 monitoring plan). Templates will be archived during two years after verification.
ECPJ,y
MWh On-site electricity consumption attributable to the project activity during the year y On-site measurements Values used in calculation are presented in the following Table:
Period 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 EC pj,y 6,092 9,214 11,968 36,190 28,464 32,327 32,327 32,327 32,327 32,327 32,327 32,327 32,327 32,327
Equipment that will be used: How the measurement is undertaken: Calibration procedures are applied:
Monitoring of Energy meter, confirmed by monthly bills. Monthly energy bills will be manually reported to local database. The calibration procedures for the energy use meter are performed by the electricity provider and carried out in a Reference Laboratory accredited by international standards according to indications of the manufacturer. The Reference laboratory should give a Certificate of Calibration specifying the status, identification of instrument, date of calibration, and next calibration. AIPSA should review these procedures which are the sole
page 59
Accuracy of the measurement method: Responsible person/entity that should undertake the measurements: Measurement interval: Monthly.
responsibility of the electricity supplier. High Electricity supply company. Continuous
Any comment:
Cross check with the monthly invoice from the grid operator. The maintenance, frequency of calibration and control procedures programming is established by the electricity provider. Calibration and maintenance are subject to procedures established by instrument manufacturer under direction of the electricity supplier. Data will be archived during the crediting period and two years afterwards. In the future, as local electricity services providers evolve, this function may become fully automated. EFgrid,y tCO2/MWh CO2 emission factor for electricity used from the grid. Emission factor taken from Poechos I project. Registration Date: 14 Nov 2005. CDM PDD Page 9 or in the following link : http://cdm.unfccc.int/UserManagement/FileStorage/RV1CUGCHTF2HXTZIRZP4F 1ST26GIS9 0.54493
Data / Parameter: Data unit: Description: Source of data to be used:
Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods
N/A
N/A Templates will be archived during two years after verification. TLy Tons Average truck load of the trucks used Determined by averaging the weights of each truck carrying sugarcane into the project plant. 30 Ton
1) Platform scale type BA,75 Tn SAIRBANKS MORSE, indicator IQ
page 60
and procedures to be applied:
Accuracy of the measurement method: Responsible person/entity that should undertake the measurements:
Measurement interval: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: As per standard FPB-I-001
plus 310, Model IQ 310 AF (used until december 2007) 2) Platform scale type BB, 80 Tn Metler Toledo, Model IND 310 3) Platform scale type BC, 80 Tn Metler Toledo, Model IND 310 Every truck entering AIPSAs facilities loaded with sugarcane and foliage is weighed at the entrance platform scale. The weight measurement is recorded and aggregated daily in the Titanium central information system. The calibration is carried out annually but every month, the AIPSA instrumentation area carries out the verification, considering the procedure FAL-I-009 Verificacion de la balanza de plataforma para camiones, (detailed in Annex 6 monitoring plan). Annex 106 shows the calibration certificate for the platform scale granted on 2008-08-18 (detailed in Annex 7 monitoring plan). Monthly verification is performed by AIPSAs Instrumentation Area, Engineer Cesar Cornejo and the Engineer Carlos Horna of the Quality Assurance area. External calibration is performed by an accredited laboratory in Peru. High (Accuracy class III) The Scale Operator will register the data in the Titanium Central Information system. The Quality Assurance area ensures compliance with standard FPB-I001 (detailed in Annex 8 monitoring plan). Measurement is performed on every truck entering AIPSAs facilities.
Information is archived 2 more years after verification AVDy

Km
Average return trip distance (from and to) between the biomass fuel supply sites and the site of the project plant during the year y Records of project participants related to the origin of the foliage in the AIPSAs Field Inventories (detailed in Annex 9 monitoring plan).
page 61
Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied:
QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description:
0 Km for Bagasse and Pith because this biomass residues are generated in the facility. 31 Km is the maximum return trip distance for foliage transport. The foliage is collected from the sugarcane fields, where it was traditionally burn or degraded. The distance between each of the fields and the project plant is registered in the Field Inventories in the Titanium System. Equipment that will be used: The trip distance between the facility and the fields is measured by the trucks odometers. How the measurement is undertaken: The measurement is taken in both trajectories (come and back). The distance measurement is recorded in the Titanium system in the Fields inventories. Calibration procedures are applied: N.A. Accuracy of the measurement method: High Responsible person/entity that should Engineer Luis Benitez, field manager, undertake the measurements: Statistical area. Measurement interval: Measurement is performed for every payment period, given that truck drivers are paid their salary based on mileage driven in the transport of cane and biomass. Check consistency of distance records provided by the truckers by comparing recorded distances with other information from other sources (e.g. maps). Templates will be archived during two years after verification. EFkm, co2, y tCO2/Km Average CO2 emission factor for the trucks measured during the year y IPCC default values. 0.00119
Official data of high quality is used. Templates will be archived during two years after verification. EFCH4,BF tCH4/GJ CH4 emission factor for the combustion of the biomass residues in the boilers
page 62
Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used:
AM0036 page 18 41.1 kg/TJ or 0.0000411 Ton CH4/GJ
Default CH4 emission factor
None. Default emission factor. Templates will be archived during two years after verification. EF burning, CH4, k,y tCH4/GJ CH4 emission factor for uncontrolled burning of the biomass residue type k during the year y AM0036 v 2.1 page 14. Default value in the 100% of uncertainty 0.001971
Official data of high quality is used. Templates will be archived during two years after verification. EFCO2 LE,y tCO2e/GJ CO2 emission factor of the most carbon intensive fuel used in the country Section 6.4 p.23 of the attached Balance Nacional de Energa 2007 (2007 National Energy Overview states that during the period comprised during 1985-2007 the most used fossil fuels in the peruvian agroindustrial sector are: Gasolina Motor (GM) + Kerosene (KE), Diesel and Petrleo Industrial. In p.196 Petroleo Industrial is defined as a conglomerate of heavy petroleum refining residues and generally used in boilers, electricity gensets and navigation. In the Peruvian petroleo industrial market exist two references with similar characteristics: Petroleo residual No. 6 (bunker oil No.6) and residual 500, being bunker oil No. 6 the heavier fraction. As mentioned above, Bunker oil No. 6 is the fuel used to run the FW boiler and, therefore, constitutes the baseline fuel for this project activity. Bunker Oil No.6 is referenced in the Resources Exchange Agreement as the fuel to be traded between
page 63
Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment:
QUIMPAC and AIPSA. According to 2006 IPCC guidelines or in the following link: http://www.ipccnggip.iges.or.jp/public/2006gl/pdf/2_Volume2/V2_2_Ch2_Stationary_Combustion. pdf default residual fuel emission factor = 77,400 Kg CO2/ TJ. As a result, Bunker Oil N 6 is the most carbon intensive fuel of those used in the Peruvian agroindustrial sector. 0.0774
Official data of high quality is used. Templates will be archived during two years after verification.
B.7.2. Description of the monitoring plan: >> Project participants have proposed a new monitoring methodology named Monitoring methodology for steam generation from biomass residues displacing fossil fuels CDM projects. Since the bagasse boiler is already in place, the monitoring plan corresponds to the already in place devices used to record all variables described in section B.7.1. All variables listed in section B.7.1 correspond to the methodology requirements explained in section B.6 below. Project activitys data will be archived during the whole crediting period and at least 2 more years. Since the new boiler uses environmentally sustainable biomass residues, grown on location as its main fuel, the project activity results in zero net CO2 on-site emissions. The CO2 emissions of the biomass combustion process will be absorbed by the growing sugar cane plants, representing a continual cyclic process of carbon emission and equivalent sequestration. Although AIPSAs plan is to produce steam exclusively with residual biomass, the monitoring plan also includes measuring the amount of Bunker fuel that would have been burned in the new boiler or in Foster Wheeler, as it will not be uninstalled. On-site fossil fuel consumption for the operation of the biomass boiler is metered through mass or volume (flow) meters in boiler. Project participants will cross-check these estimates with fuel purchase receipts. Project participants will monitor the time of storage (or rotation) of stocks of all types of biomass used for combustion in the project boiler with the stocks of biomass residues at the beginning of the month, at the end of month and the amount of biomass residues combusted during that period. Rotation will be calculated comparing the quantity of biomass residues combusted during the month, with the increase of stock.
page 64
B.8. Date of completion of the application of the baseline study and monitoring methodology and the name of the responsible person(s)/entity(ies): >> Nov 8, 2011 Juan Carlos Caycedo, email: juanccaycedo@gmail.com; Maria Teresa Rojas email: matederojo@gmail.com; Yolima Gordillo Herrera, email: yolima.gordillo@gmail.com ; Andean Center for Environmental Economics CAEMA, email: caema@andeancenter.com Address: Cra 3 No 11 55 Int 213, Bogot, Colombia. TelFax: (571) 337 6553, 337 6616 URL: www.andeancenter.com SECTION C. Duration of the project activity / crediting period C.1. Duration of the project activity:
C.1.1. Starting date of the project activity: >> January 1, 2007
C.1.2. Expected operational lifetime of the project activity:

>> 40 years. C.2. Choice of the crediting period and related information: C.2.1. Renewable crediting period: C.2.1.1. >> January 1, 2007 C.2.1.2. >> 7 years (renewable once) C.2.2. Fixed crediting period: C.2.2.1. >> Left blank on purpose. C.2.2.2. >> Left blank on purpose. Length: Starting date: Length of the first crediting period: Starting date of the first crediting period:
page 65
SECTION D. Environmental impacts >> D.1. Documentation on the analysis of the environmental impacts, including transboundary impacts: >> The implementation of the project activity, the new bagasse boiler and associated fuel switching activities, will significantly improve the environment and general well being of the local community by displacing the current system. The existing energy production system imposes significant environmental problems that may have affected the local community negatively in terms of human health and visual pollution. Environmental problems directly related to the current system include: (a) harmful emissions of various types of pollutants from the burning of Bunker fuel; (b) the high levels of pith particles in the air.
Graphic 3. Smog over Paramonga Community from Baseline Boilers using Bunker Fuel, 2006
These afflictions were referred to by stakeholders in the public consultation process (see section E). The adoption of the new bagasse boiler will reduce or eliminate the emissions of nationally controlled air pollutants, metals, total organic compounds, trace elements, and greenhouse gasses commonly generated by the combustion of Bunker fuels in industrial burners. The new bagasse boiler includes a wet scrubber which will control emissions of particulates; according to EPA, these scrubbers reduce particulates
page 66
between 50 and 60%.6 CO will still be emitted by bagasse consumption; however, the new boiler complies with World Bank-IFC emission standards. NOx should be reduced, and SO2 emissions should be eliminated. Pith particles from the existing system, which fill the air when prevailing winds blow them upwards from open air storage and handling systems, have been deposited over the years throughout the community, accumulating in homes and public places. The new system will reduce Pith usage and volatility by 75%. This should significantly reduce the minor irritations to eyes and breathing commonly experienced by local residents. Metals, total organic compounds and trace elements have not been measured, but have been documented by US EPA as standard emissions from the industrial combustion of Bunker fuel. If these are present in the current emissions in significant quantities, the impacts to human health may be highly significant; the CDM project activity should reduce or eliminate most of these, to the benefit of the communitys health and welfare. TOCs, Metals and Trace Elements from Combustion of Bunker fuel in Industrial Boilers Compilation of Air Pollutant Emission Factors, AP-42, Fifth Edition, Volume I,: Stationary Point and Area Sources. US EPA, Washington DC, 2004 Section 1.3: Fuel Oil Combustion Total Organic Volatile organic compounds; semi volatile organic compounds; condensable Compounds organic compounds; formaldehyde. Trace Elements As, Be, Cd, Cr, Cu, Pb, Hg, Mn, Ni, Se, Zn Trace metals A wide range of metals are usually emitted. Actual emissions depend on the composition of the fuel, concentration levels of the metals, and combustion temperatures. See appendix IV, EPA table 1.3-11 for metals and emissions factors identified in 18 of 19 samples from residual oil combustion in industrial boilers. In conclusion, the current pollution problems will be replaced by vapour and reduced particulate emissions from the controlled burning of bagasse in the new boiler, which includes a high efficiency wet scrubber. The new system should greatly reduce emissions of the entire range of contaminants documented by EPA from Bunker fuel. The CO2 will be recycled and sequestered during each growing season, resulting in zero net CO2 emissions. The adoption of the project activity should greatly improve the local environment, including human health and visual pollution. In addition, the project will contribute significantly to reducing global warming by displacing 1,354,500 tons of CO2 during the 10 years accreditation period, and potentially much more, as the useful life of the new boiler could be many more years into the future.
Technical proposal from MEIC-CBSERV, the new boiler manufacturers. Pg 16.
page 67
Host party requirement: INRENA is the government authority responsible for controlling air quality in Perus sugar cane processing industry. Regulations require that the new boiler comply with existing regulation D.S. 0742001-PCM, National Standards for Environmental Air Quality. The new system complies with World Bank-IFC standards and improves upon Perus permitted limits for NO2, SO2, and CO. The wet scrubber should control particulate matter emissions far below permitted standards, which should also improve visual effects.
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: >>Environmental impacts are not considered significant.
page 68
SECTION E. Stakeholders comments >> E.1. Brief description how comments by local stakeholders have been invited and compiled: >> To inform and consult local stakeholders about the project activity, AIPSA conducted a community stakeholders forum on the 29th of October 2004 at the Paramonga sugar mill installations. Paramonga invited local radio and television stations to the event to ensure regional dissemination of the event and the main messages. AIPSA prepared a list of potentially interested and affected stakeholders from all sectors of the community and invited them to the forum. The event was attended by the governor, the mayor, directors of the television and radio stations, representatives of the poor communities most affected by the existing pollution, numerous health services organizations, local police, and environmental officials from the mayors office. The national environmental authority, CONAM, was invited but was unable to attend. 23 participants attended. AIPSA officials presented the project in detail, highlighted the technical and environmental attributes of the new bagasse boiler, and discussed how the air pollution problems from the existing system would be reduced or eliminated. As part of AIPSAs commitment to social and environmental responsibility, a second networking event was held on September 14 and 15, 2011 concerning the advancement of project activities. The project was presented in detail and included all the technical, environmental and social aspects. This event had 149 attendees among area residents, municipal mayors, academic institutions, NGO officials, government agencies, representatives of the religious sector and local AIPSA employees. Invitation to this event was carried out personally, through letters delivered to each one of the guests and mass media announcements - newspapers and radio. It should be noted that the event collected 120 surveys, signed by individuals confirming their support of the project, and identified no issues regarding them. The interaction with stakeholders was detailed and comprehensive. Commencement of networking activities and project presentation:
Figure 1. Main Table, networking event held on the 14th and 15thof September, 2011. From left to right: Dr. Thomas Black, CAEMA. Eng. Jorge Fernandez, AIPSA. Eng. Jose Laca, General Manager, AIPSA. Eng. Efrain Salas, AIPSA. Eng. Senisse Cotrina, FONAM. Dr. Hugo Ayon, AIPSA
page 69
E.2. Summary of the comments received: >>Participants were asked to fill out a short survey form that asked them to state in their own words their perceptions regarding environmental conditions around the Paramonga sugar mill. 20 of the 23 indicated that the worst environmental problems in the area are caused by the smokestack emissions from the residual fuel boilers. 100% supported the project to replace the burning of Bunker fuels with the wetscrubbed bagasse boiler. In the question and answer session, all participants discussed the negative health and visual effects of the existing boilers and fuels, and most insisted that the new project be implemented as soon as possible. Appendix V-A includes the results of the survey and the transcriptions of all the comments and questions received at the end of the event. AIPSA asked participants to send in any additional comments by mail if they wished; none had been received at the date of preparation of this document. During the September 14 and 15, 2011 networking event, workshops were held with community representatives and stakeholders. In order to ensure greater participation and interaction with the community, a total of 20 round tables were set up. Each table was comprised of AIPSA technical experts of the highest level and experience regarding the fuel replacement project and between 5 and 10 community representatives and stakeholders. A note taker was assigned at each table to log the questions, comments and requests of participants. For a period of 2.5 hours, the projects and perceptions of the participantswere discussed in an orderly and straightforward manner, with great intensity.
Figure 2. AIPSA team and stakeholder work session.
In addition, the individual participants completed 120 surveys. All the surveys highlighted favorable aspects of the projects addressed in the networking event. Only a few surveys, along with the positive comments, includedproject areasrequiringimprovement. Among the opinions expressed in the surveys, participants stressed that the project has improved the environmental conditions of the surroundings by incorporating emissions reduction plans in its activities and has contributed positively to the development of the population by incorporating social programs for education (EscuelasExitosas, Educanto and BecasVallegrande), sports and recreation (school sports, stadium availability, Christmas party) and public area enhancement (cleaning of parks and public areas).
page 70
However, participants expressed the project should improve in aspects such as: bagasse control, expanding education coverage to the female community and improve the communication and dissemination of the effected projects. Similarly, concernsregarding the possible displacement of manual labor by the use of harvesters and whether the project could contribute to the recovery of the regional hospital (Santa Rosa Hospital) were manifested. Atranscript of the networking event is included in Appendix V-B. It contains a summary of the questions and comments made by stakeholders during the workshops and surveys. Additionally, a model of the invitation letters and press release issued convening the networking events is also included.
E.3. Report on how due account was taken of any comments received: >> During stakeholder consultation realized in October 29 2004, no negative comments regarding the implementation of the project activity (the new bagasse boiler) were received. The recommendations from the community were all related to the rapid replacement of the old boiler and fuels with the new system. Some of the questions and comments made by the community at the September 14 and 15 of 2011 event were answered by AIPSA during the event, others were answered in a written statement, sent to the interested party directly. A list of each question and the answer issued by AIPSA is found in Appendix V-B. In conclusion, based on the results of the sustainability matrix established by the Gold Standard, and the results of the surveys completed by the participants, a thorough assessment of the sustainability of the project is not required given that none of the parameters evaluated in the surveys completed by the stakeholders received a negative score. Only the access to health services was rated as having "no change" (0). The tables issued all the other parameters a positive (+) score. As no major concerns arose during the networking processes, changes in project design or the incorporation of additional measures to demarcate or avoid negative environmental impact were unwarranted.
page 71
Annex 1 CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY Organization: Street/P.O.Box: Building: City: State/Region: Postcode/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: Agro Industrial Paramonga S.A.A. (AIPSA) Address: Avenida Javier Prado Este 5245 Camacho -Lima Lima Department -Per (51-1) 317 0400 ext. 1002 until 16 December 2004; then, (51-1) 618 1616 ext 1002.. (51-1) 618 1617 hayon@cgaip.com.pe http://www.agroparamonga.com/ Mr. Hugo Ayon Director of Finance Mr. Ayon -Hugo Finance -(51-1) 618 1617 (51-1) 317 0400 ext. 1002 until 16 December 2004; then, (51-1) 618 1616 ext 1002.. hayon@agroparamonga.com
page 72
Annex 2 INFORMATION REGARDING PUBLIC FUNDING No public funding will be used for the CDM project
page 73
Annex 3 BASELINE INFORMATION
TABLE A.3.1: ESTIMATED STEAM AND THERMAL ENERGY REQUIREMENTS OF THE BASELINE SCENARIO Projected # Days of Operation 293.7 318.2 298.2 329.3 327.7 318.3 318.3 318.3 318.3 318.3 318.3 318.3 318.3 318.3 318.3 Sugar Cane Produced Ton 1,088,888 960,983 1,087,001 1,056,063 1,090,397 1,090,397 1,090,397 1,090,397 1,090,397 1,090,397 1,090,397 1,090,397 1,090,397 1,090,397 1,090,397 Bagasse Produced Ton 304,979 269,155 304,450 295,785 356,850 372,028 372,028 372,028 372,028 372,028 372,028 372,028 372,028 372,028 372,028 Steam Requirements Ton 643,434 567,854 642,319 624,037 644,326 644,326 644,326 644,326 644,326 644,326 644,326 644,326 644,326 644,326 644,326 Thermal Energy Requirements TJ 2,110 1,863 2,107 2,047 2,113 2,113 2,113 2,113 2,113 2,113 2,113 2,113 2,113 2,113 2,113
Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Projection Parameters Working Hours per day Ton Cane/Hour % bagasse/cane % ton steam/ton sugar cane Enthalpy of steam (MJ/t)
22 171.5 0.28 0.59 3280
page 74
Jan Thermal Energy (GJ) Foster Wheeler Boiler Edge Moore Boiler Distral Boiler Total Thermal Energy (GJ) Amount of fuel combusted (t) Fuel Oil in Foster Wheeler Bagasse in Foster Wheeler Pith in Foster Wheeler Fuel Oil in Distral Bagasse in Edge Moore Amount of Energy in fuels (GJ) % Fossil Fuels
TABLE A.3.2 FUEL CONSUMPTION AND THERMAL ENERGY GENERATION IN PLANT DURING YEARS 2003 AND 2004 Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Dec
Total 2003
157,208.60
146,359.46
162,790.90
147,374.42
145,945.88
150,730.55
128,997.46
145,329.72
138,625.90
151,624.19
153,297.51
142,269.01
1,770,553.58
157,208.60
146,359.46
162,790.90
147,374.42
145,945.88
4,687.61 155,418.17
7,934.02 136,931.48
11,719.56 157,049.28
10,625.47 149,251.37
8,160.86 159,785.04
10,664.50 163,962.01
10,691.94 152,960.94
64,483.96 1,835,037.54
2,955.59 2,851.72 7,931.68 -
3,028.22 1,135.06 7,367.20 -
3,316.74 41.12 8,670.87 -
3,151.88 8,457.80 -
2,978.75 2,024.47 6,514.74 -
2,284.30 8,688.07 5,002.93 144.35
1,837.93 8,633.14 3,687.50 231.35
1,809.26 10,581.68 4,777.71 338.28
1,772.51 9,500.29 5,299.85 305.44
1,942.81 10,458.68 5,879.34 238.39
2,136.72 8,667.31 7,302.87 311.14
2,281.49 5,227.34 7,717.04 316.11
29,496.20 67,808.89 78,609.53 1,885.05
185,305.40 0.64 Jan
172,541.76 0.71 Feb
183,768.61 0.73 Mar
175,612.46 0.72 Apr
172,054.10 0.70 May
189,394.04 0.52 Jun
166,942.10 0.50 Jul
190,488.93 0.45 Aug
182,891.77 0.46 Sep
197,326.39 0.44 Oct
203,323.79 0.48 Nov
186,857.98 0.56 Dec
2,206,507.33 0.57 Total 2004
Thermal Energy (GJ) Foster Wheeler Boiler Edge Moore Boiler Distral Boiler Total Thermal Energy (GJ) Amount of fuel combusted (t) Fuel Oil in Foster Wheeler Bagasse in Foster Wheeler 137,524.42 7,943.52 145,467.94 131,484.23 16,463.09 2,791.68 150,738.99 135,999.86 22,111.86 988.59 159,100.31 133,044.65 20,683.31 153,727.97 149,109.99 20,860.56 2,819.11 172,789.66 137,576.12 21,359.61 5,956.37 164,892.09 141,669.73 20,821.53 1,759.83 164,251.10 139,789.63 20,503.96 2,477.27 162,770.85 128,305.34 18,349.53 111.41 146,766.28 143,340.94 17,929.62 161,270.56 132,854.74 19,359.22 152,213.96 127,002.35 19,478.44 146,480.79 1,637,702.01 217,920.73 24,847.77 1,880,470.51
2,153.28 7,800.27
1,430.12
2,265.86 6,194.61
1,888.15
2,932.24 3,652.73
2,707.98 2,657.73
2,725.21 3,735.36
2,769.45 2,149.02
2,529.22
3,091.39 986.33
2,964.21 784.79
2,788.15 636.68
30,245.26
page 75
9.528,92 Pith in Foster Wheeler Fuel Oil in Distral Bagasse in Edge Moore Amount of Energy in fuels % Fossil Fuels Minimum fraction of fossil fuel co-fired per year 7.549,82 235,15 196.093,35 0,49 5.471,99 128,56 2.901,11 184.208,74 0,34 5.032,63 11,26 3.869,75 193.430,08 0,47
8.590,31 4.527,90 3.607,77 190.309,50 0,40 6.680,06 82,20 3.686,40 212.884,51 0,57 6.898,71 176,26 3.773,60 202.350,94 0,57 6.559,13 51,44 3.658,09 203.020,96 0,55 7.487,67 70,78 3.552,44 198.711,12 0,57
2.186,63 6.968,46 3,25 3.247,91 181.407,69 0,56 7.678,48 3.052,27 197.882,37 0,63 7.797,00 3.213,28 193.163,48 0,62 6.165,62 2.505,05 170.454,65 0,66
48.903,38 78.817,47 758,89 37.067,66 2.323.917,38 0,55
0,55
page 76
This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.
page 77
Annex 4 MONITORING INFORMATION Please see section B.7.2.
Annex 5 STAKEHOLDERS COMMENTS
-----
This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

Documento de Diseño Del Proyecto Cambio de Combustible

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Documento de Diseño Del Proyecto Cambio de Combustible

Uploaded by

Copyright:

Available Formats

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

Characteristics Operating boilers

Machinery to adapt foliage characteristics to boilers requirements

2002 FONAM formulates Initial Small Scale PDD for AIPSA

DNV begins validation of Paramonga Small Scale CDM Project

AIPSA participates in NSS, capacity building CDM

AIPSA begins work with CDM

Table 3. Time Line of the Use of Fuels

Project Director: Hugo Ayon Address: Avenida Ferrocarril

Graphic 1. Map of Peru including Paramonga

Paramonga, Per Lima, Per

A.4.5. Public funding of the project activity:

>> No public funding is considered for the project activity.

SECTION B. Application of a baseline and monitoring methodology

Maximum amount of biomass residues available (Tons) 305,813 305,813

Steam requirements for sugar production (Tons) 644,326 644,326

Foster Wheeler Foster Wheeler Dec 1990

Edge Moore Edge Moore Jan 2004

Table 7. GHG Sources and Gases

Included in Project boundary

Yes No No Yes No No No Yes No Yes No No Yes No No Yes No No No Yes No No No No

Foster Wheeler Foster Wheeler FW 22.6 120 * 31.6

VAPOR 125 psig

TURBO GENERATORS TURBOGENERADORES EQUIPOS EQUIPMENT AUXILIARYAUXILIARES

VAPOR 45 psig QUIMPAC VAPOR 15 psig QUIMPAC CONDENSADO

AGUA PARA QUIMPAC

CABEZAL VAPOR STEAM HEAD

450 PSIG RED.

VAPOR 450 psig

VAPOR 450 psig

BAGAZO, BAGASSE, PITH

BAGASSE AND PITH

FOLIAGE CHOPPING AND GRINDING SYSTEM

BAGASSE AND PITH

Diagram 2. VCS project activity

Alternatives for the use of biomass

Graphic 2. Burning of Foliage in the Field is Common Practice

SOURCE: AIPSA Accounting Dept.

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

HG PJ ,biomass , y EFFF ,CO2 , y

HG biomass ,historic ,n HG total , historic , n

(10) PE CO2 ,TR , y =

Period 2002 2003 2004

Boiler Eficiency 0.70 0.69 0.68

Ex ante and ex post gross heat generation is presented below.

choice of data or description of measurement methods and procedures actually applied :

Justification of the choice of data or

FC i,n Ton 9,852 10,335 208 1 -

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

Source of data used: Value applied:

Source of data used: Value applied:

The NCV data are recorded daily in the Titanium System.

Monthly energy bills will be manually reported to local database.

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

Leakage emissions during crediting period are calculated as following table:

Summary of the ex-ante estimation of emission reductions:

QA/QC procedures to be applied:

Description of measurement methods and procedures to be applied: QA/QC procedures to be applied:

Year 2007 2008 2009 2010

Yearly Average of steam temperature T1 116.72 115.46 124.01 105.68

Description of measurement methods and procedures to be applied:

Measurement equipment to be used: