PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-PDD) Version 03 - in effect as of: 28 July 2006
CONTENTS
A. General description of project activity
B. Application of a baseline and monitoring methodology
C. Duration of the project activity / crediting period
D. Environmental impacts
E. Stakeholders comments
Annexes
Annex 1: Contact information on participants in the project activity
Annex 2: Information regarding public funding
Annex 3: Baseline information
Annex 4: Monitoring plan
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SECTION A. General description of project activity
A.1. Title of the project activity: Substitution of coal with alternate fuels at Lucky Cement Limited, Karachi Plant Version 1 10/01/2012
A.2. Description of the project activity:
Lucky Cement Limited has been sponsored by Yunus Brothers Group which is one of the largest business groups of Pakistan. The company has grown rapidly to become the leader among Pakistani cement manufacturers with the largest production capacity, highest sales and greatest market share. Lucky Cement Limited operates two plants and manufactures Ordinary Portland Cement, Sulphate Resistant Cement and Slag Cement. One plant of Lucky Cement Limited is at Karachi and other is at Pezu district Lakki Marwat.
Scenario Existing Prior to the Start of Implementation of the Project Activity
Lucky Cement Limited, Karachi Plant has three kilns, Kiln E, Kiln F and Kiln G. Each kiln has a designed clinker production capacity of 3,300 Tons per Day (TPD) and uses coal as fuel source for clinker production and heavy fuel oil (HFO) for pre-heating of kilns. Kiln E and F have been in operation since October 2006 while Kiln G started operation in January 2009.
Project Scenario
The project activity comprises installation of tyre derived fuel (TDF) and refuse derived fuel (RDF) systems (plants) at the three existing kilns at Lucky Cement, Karach plant. The project activity would result in 50% substitution of coal with alternative fuels (TDF from tyre waste, RDF from Municipal Solid Waste (MSW) and biomass residues such as, Rice Husk). The project activity will result in transfer of modern technology to the host country as RDF and TDF plants are manufactured by Vecoplan Germany and Eldan Recycling A/S Denmark, respectively.
Baseline Scenario
The baseline scenario is the scenario existing prior to the start of implementation of the project activity and is same as identified in Section B.4 of the PDD.
Reduction in Greenhouse Gas Emission
The major source of emissions in the baseline situation is the burning of coal for clinker production. The project activity will substitute coal (the major CO 2 emission source) with the alternative fuels (see section A.4.3 for details). The amount of HFO used for preheating of kilns in the project activity will be the same as that in the baseline situation. The minor carbon dioxide emissions that will occur due to the project activity are associated with the burning of the alternative fuels such as TDF and RDF and transportation of these fuels (sources of emissions and type of emissions are described in detail is section B.3). As there is surplus availability of rice husk in the region, leakage emissions associated with its incineration are PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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considered to be zero in the project activity. Likewise, since the project activity does not use less carbon intensive fuels, there are no upstream leakage emissions involved.
The project activity will result in reduction of Greenhouse Gas (GHG) emissions (on average) equivalent to 208,484 tCO 2 per year.
Contribution towards Sustainable Development
The project activity will the following contributions towards sustainable development:
Environmental Development
Improvement of the local environment by significant reduction of CO 2 emission to the atmosphere Conservation of fossil fuel resources by displacing coal based clinker production Use of municipal solid waste as RDF will help reduce the uncontrolled burning and decaying of municipal solid waste Use of scrap tyres as TDF will result in abatement of environmental hazards associated with their uncontrolled burning
Social Development
Alleviation of poverty by providing labour employment opportunities to the local community during construction phase Creation of new permanent jobs during operational phase of the project activity Reduced health impacts for the local population through less emission of CO 2
Economic Development
Cost reduction for heat production due to lower price of alternative fuels such as rice husk and RDF Employment opportunities for the local people Less dependency on imported coal
Technology Development
Introduction of modern technology to the host country (technology transfer) Setting up an example of sustainable development to be followed by other cement factories
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A.3. Project participants:
The table below illustrates the participants involved in the project activity. Contact information is provided in Annex 1.
Table A.3.1: Project Participants Name of Party involved ((host) indicates a host Party) Private and/or public entity(ies) project participants (as applicable) Kindly indicate if the Party involved wishes to be considered as project participant (Yes/No) Islamic Republic of Pakistan (host) Lucky Cement Limited. (private entity) No Islamic Republic of Pakistan (host) Carbon Services Private Limited. (private entity) No Switzerland First Climate (Switzerland) AG (private entity) No
A.4. Technical description of the project activity:
A.4.1. Location of the project activity:
A.4.1.1. Host Party(ies):
Islamic Republic of Pakistan
A.4.1.2. Region/State/Province etc.:
Sindh
A.4.1.3. City/Town/Community etc.:
Nooriabad, Karachi
A.4.1.4. Details of physical location, including information allowing the unique identification of this project activity (maximum one page):
The project is located at:
Lucky Cement Factory, 58 km Milestone, Super Highway, Nooriabad, Karachi, Sindh, Pakistan.
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The company is headquartered at:
6 A, M Ali Housing Society, A. Aziz Hashim Tabba Road, Karachi 75350, Sindh, Pakistan.
Lucky Cement Karachi Plant is located at following geographical coordinates: Latitude: 25 3 14 Longitude: 67 25 53
Fig A.4.1.4.1: Location of Lucky Cement Plants in Pakistan 1
1 maps.google.com PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Fig A.4.1.4.2: Location of Lucky Cement Plants in Pakistan
Fig A.4.1.4.3: Photograph of Lucky Cement Karachi Plant
A.4.2. Category(ies) of project activity:
As per the sectoral scope of the project activities mentioned in the list of sectoral scopes or accreditation of DOEs, the project activity falls under Sectoral Scope 4 Manufacturing industries
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A.4.3. Technology to be employed by the project activity:
Lucky Cement Limited, Karachi Plant has three kilns, Kiln E, Kiln F and Kiln G. Each kiln has a designed clinker production capacity of 3,300 Tons per Day (TPD) and uses coal as fuel source for clinker production and heavy fuel oil (HFO) for pre-heating of kilns. Kiln E and F have been in operation since October 2006 while Kiln G started operation in January 2009. Two types of coal, local and imported, are used for clinker production. However, use of imported coal is almost 100%. No alternative fuels have been used in the existing plant for the last three years before the implementation of the project activity. Specifications of the kilns are shown in table A.4.3.1 below
Table A.4.3.1: Technical Specifications of Kilns Parameter Kiln-E Kiln-F Kiln-G Designed Production Capacity (TPD) 3,300 3,300 3,300 Minimum Guaranteed Production (TPD) 3,000 3,000 3,000 Guaranteed Heat Rate (kcal/kg) 741.60 741.60 741.60 Achieved Heat Rate (kcal/kg) 784.069 801.3 760
Table A.4.3.2: Historical Operational Days of Kilns Year Kiln-E Kiln-F Kiln-G July 2007 June 2008 333 333 - July 2008 June 2009 342 339 114 July 2009 June 2010 329 321 320
The project activity involves 50% substitution of coal at the existing kilns with the alternative fuels (RDF from Municipal Solid Waste (MSW), TDF and Rice Husk).
In order to implement the proposed project activity a complete system for receiving, storing, and feeding of alternative fuels will be built. The project activity will result in transfer of modern technology to the host country as it involves installation of RDF plant and TDF plant manufactured by Vecoplan Germany and Eldan Recycling A/S Denmark, respectively.
The project activity will result in substitution of coal with RDF and TDF and biomass residues (Rice Husk). The amount of HFO used for preheating of kilns in the project activity will be the same as that in the baseline situation.
The project activity involves implementation of complete waste treatment plant for the municipal solid waste. This plant will treat the municipal solid waste and convert it to reuse derived fuel (RDF) which will be used in the kiln. Specifications of the RDF plant is shown in table A.4.3.3 below,
Table A.4.3.3: RDF Plant Technical Specifications Name of manufacturer Vecoplan (Germany) Input capacity of Municipal Solid Waste 50-60 TPH Density of Input material 350 400 kg/m 3
Output capacity of RDF 15-20 TPH Weight of the shredder 25,000 kg PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Intake Length 2500 mm Intake Width 1700 mm Two rotors, Diameter 720 mm Length per rotor 500 mm Motor Power x 2 155 KW
TDF plant has been imported from Denmark for processing of scrap tyres. Scrap tyres will consist of car tyres, light truck tyres and truck tyres. The scrap tyres (raw material input to the TDF plant) will be free of flammable fluids and foreign bodies such as stones. This plant will recycle scrap tyres by converting them into tyre derived fuel (TDF) which will be used in the kilns E, F and G in place of coal. The TDF plant comprises three parts: Super Chopper (SC), Multi-Purpose Rasper (MPR) and Magnetic Separators (MS). Technical details of each part are provided below: A. Table A.4.3.4: General Specifications of TDF Plant Input capacity of the TDF Plant 18 tons scrap tyres/hour Output capacity of the TDF plant 18 tons TDF chips/hour Maximum diameter of scrap tyre 1900 mm Output size of the TDF chips 25 mm
Scrap tyres will be fed into the super choppers (SC) where it is chopped down into small pieces of about 100 mm diameter. The technical features of the super choppers (SC) are mentioned below in table A.4.3.5:
Table A.4.3.5: Super Chopper SC2118T/3 Technical Specifications Power 250 KW Rotor length 2,100 mm Rotor Diameter 450 mm Rotor Speed 22 rpm Knives 18 flying / 8 static Weight of the Machine 26,000 kg Weight of the Inlet Hopper 1,200 kg Weight of the Hydraulic Station 4,000 kg Dimensions Length : 3,900 mm Height : 1,800 mm Width : 4,000 mm
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The output of the super chopper is fed into the multi purpose rasper (MPR). The MPR further reduces the size of tyres from 100 mm to 25 mm diameter. The technical features of the multi purpose rasper (MPR)are mentioned below in table A.4.3.6:
Table A.4.3.6: Multi Purpose Rasper MPR200T Technical Specifications Motor 2 x 132 kW / 734 rpm / 50Hz Rotor Length 2,000 mm Rotor Diameter 400 mm Cutting Diameter 506 mm R.P.M of Rotor 144 rpm Opening at cutting chamber 700 x 2,000 mm Knives 25 flying / 26 static Total Weight Approx 24,000 kg
The output of the MPR is then fed into the magnetic separator (MS). This magnetic separator separates the rubber and the wires from the TDF. The output of MS is then fed into the kiln for clinker production. The technical details of the magnetic separator are provided below B.
Fig A.4.3.1: Eldan Magnetic Seperator
The Overband Magnets are used to separate magnetic materials from nonmagnetic materials. The Overband Magnets are constructed on a frame. The frame is mounted with a drum motor at one end and a carrier roll at the other end. A permanent magnet is placed in the frame. The Overband Magnets are placed so far above the outlet conveyors that the magnetic material cannot pass by them.
Overband Magnets PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Energy Mass Flows in the baseline and project situation are provided in Table A.4.3.7 below,
Table A.4.3.7: Energy Mass Flows Description Baseline Project Pre Heating of Kilns HFO Consumption for Pre Heating Purposes (tons/yr) 489.43 489.43 Energy Generated from HFO (GJ/yr) 19,704 19,704 Clinker Production and Fuel/Energy Consumption Clinker Production (tons/yr) 3,385,800 3,385,800 Coal Consumption (tons/yr) 443,426 221,713 Energy Generated from Coal (GJ/yr) 11,085,372 5,542,686 Rice Husk (tons/yr) - 43,836 Energy Generated from Rice Husk (GJ/yr) - 554,269 TDF (tons/yr) - 153,214 Energy Generated from TDF (GJ/yr) - 4,101,588 RDF (tons/yr) - 63,608 Energy Generated from RDF (GJ/yr) - 886,830 Total Energy Consumed for Clinker Production (GJ/yr) 11,085,372 11,085,372
The major source of emissions in the baseline situation is the burning of coal for clinker production. The project activity will substitute coal (the major CO 2 emission source) with the alternative fuels (see section A.4.3 for details). Project emissions from additional electricity are considered zero as the project activity doesnt result in consumption of additional electricity. However, as per the methodology requirement, the project emissions due to additional electricity consumption shall be monitored during the entire crediting period of the project activity. The amount of HFO used for preheating of kilns in the project activity will be the same as that in the baseline situation. The minor carbon dioxide emissions that will occur due to the project activity are associated with the burning of the alternative fuels such as TDF and RDF and transportation of these fuels (sources of emissions and type of emissions are described in detail is section B.3). As there is surplus availability of rice husk in the region, leakage emissions associated with its incineration are considered to be zero in the project activity. Likewise, since the project activity does not use less carbon intensive fuels, there are no upstream leakage emissions involved.
All the equipment installed in the project activity is brand new and supplier has guaranteed that the technical lifetime of the equipment is 20 years. The project technology is not likely to be substituted by other or more efficient technologies within the crediting period of the project activity.
The baseline scenario is the scenario existing prior to the start of implementation of the project activity, and is same as identified in Section B.4 of the PDD. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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The project equipment is brand new and uses state of the art technology. The technology is environmentally safe as high carbon intensive fuels are displaced with less carbon intensive fuels. Hence the implemented technology in the project activity is safe. The project involves transfer of modern technology to Pakistan.
The import of new equipment not merely means technology transfer but skill transfer as well. Lucky Cement Limited is contributing significantly to the education and training of technicians with the necessary skills to properly maintain and operate such equipment..
A.4.4. Estimated amount of emission reductions over the chosen crediting period:
A fixed crediting period of 10 years starting from July 01, 2012 has been chosen with average annual estimated emission reductions of 208,484 tCO 2 /year.
Table A.4.4.1: Emission reductions over the crediting period Years Annual estimation of emission reductions in tonnes of CO 2 e Year 1 208,484 Year 2 208,484 Year 3 208,484 Year 4 208,484 Year 5 208,484 Year 6 208,484 Year 7 208,484 Year 8 208,484 Year 9 208,484 Year 10 208,484 Total estimated reductions (tonnes of CO 2 e) 2,084,840 Total number of crediting years 10 Annual average over the crediting period of estimated reductions (tonnes of CO 2 e) 208,484
A.4.5. Public funding of the project activity:
No public funding is involved in this project activity.
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SECTION B. Application of a baseline and monitoring methodology
B.1. Title and reference of the approved baseline and monitoring methodology applied to the project activity:
For the project activity, the approved consolidated baseline and monitoring methodology ACM0003 Version 07.4, Emissions reduction through partial substitution of fossil fuels with alternative fuels or less carbon intensive fuels in cement or quicklime manufacture is used.
The project design document also refers to the latest approved versions of the following tools:
Combined tool to identify the baseline scenario and demonstrate additionality (version 03.0.1); Tool to calculate baseline, project and/or leakage emissions from electricity consumption (version 01).
B.2. Justification of the choice of the methodology and why it is applicable to the project activity:
The project activity fulfils all the applicability conditions of the chosen methodology, ACM0003 (version 07.4); this is shown inTableB.2.1 below.
Table B.2.1: Applicability of ACM0003 (version 07.4) for the Project Activity Condition Project Activity/Baseline Scenario Source Applicability The methodology is applicable to project activities in the cement or quicklime industry where fossil fuel(s) used in an existing clinker or quicklime production facility are partially replaced by less carbon intensive fuel(s) and/or alternative fuel(s) The coal consumed in the clinker kiln is partially replaced by TDF, RDF and biomass residues(e.g. rice husk) Project Feasibility study Applicable. A significant investment is required to enable the use of the alternative fuel(s) and/or the less carbon intensive fossil fuel(s) A significant investment of approximately PKR 1.04 billion is required for the implementation of the project activity. Project Feasibility study Applicable. During the last three years prior to the start of the project activity, no alternative fuels have been used in the project plant No alternative fuels have been used in the project plant during the last three years prior to the start of the Project Activity. Daily production reports (2007 2010) Applicable PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Condition Project Activity/Baseline Scenario Source Applicability The CO 2 emissions reduction relates to CO 2 emissions generated from fuel combustion only and is unrelated to the CO 2 emissions from decarbonisation of raw materials (i.e. CaCO 3 and MgCO 3
bearing minerals) There is no change in chemical composition of the raw material for kiln feed in the project situation, therefore CO 2 emissions from decarbonisation are not affected by the project. The CO 2 emissions reduction is related only to reduce coal combustion due to the project activity and is unrelated to the CO 2 emissions from decarbonisation of raw materials. - Applicable The methodology is applicable only for installed capacity (expressed in tons clinker/year or tons quicklime/year) that exists by the time of validation of the project activity The project activity is restricted to the existing 3 kilns (E ,F and G) each having total installed capacity of 3,300 TPD (3,385,800 tons/year clinker production) Project Feasibility study Applicable The biomass is not chemically processed (e.g. esterification to produce biodiesel, production of alcohols from biomass, etc.) prior to combustion in the project plant but it may be processed mechanically or be dried at the project site. Moreover, any preparation of the biomass, occurring before use in the project activity, does not cause other significant GHG emissions (such as, for example, methane emissions from anaerobic treatment of waste water or from char coal production) Biomass used in the project activity is not chemically processed and will be combusted directly in the kilns. Only physical operations like drying in open sun, classification, size reduction, storage, dosing, etc. shall take place. No chemical reactions are involved. - Applicable The biomass used by the project facility is stored under aerobic conditions The biomass to be used by the project facility will be stored under aerobic conditions. - Applicable In cases where renewable biomass from dedicated plantation is used,natural regeneration The project activity will not use any renewable biomass from dedicated plantation - This condition is not applicable to the project activity. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Condition Project Activity/Baseline Scenario Source Applicability The applicability conditions outlined in the latest available versions of the following tools have to be fulfilled as well:
Combined tool to identify the baseline scenario and demonstrate additionality (version 03.0.1); Emissions from solid waste disposal sites (version 06.00); Tool to calculate project or leakage CO 2 emissions from fossil fuel combustion (version 02.00); Tool to calculate baseline, project and/or leakage emissions from electricity consumption (version 01.00).
The following tools have been used in the PDD
Combined tool to identify the baseline scenario and demonstrate additionality (version 03.0.1); Tool to calculate baseline, project and/or leakage emissions from electricity consumption (version 01.00).
The project activity fulfils all the applicability conditions as outlined in the tools used for/applicable to the project activity - Applicable The methodology is not applicable to project activities that implement efficiency measures in production of clinker, such as changing the configuration/number of pre- heaters The project activity does not implement efficiency measures or modifications in the existing clinker production process. I.E.E Report Applicable PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Condition Project Activity/Baseline Scenario Source Applicability Finally, this methodology is only applicable if F2 (the continuation of the current fuel mix) or F3 (a different fossil fuel mix portfolio) results to be the most plausible baseline scenario for the use of fuels in the cement plant and if one or several of the following scenarios, as explained in the Procedure for the selection of the most plausible baseline scenario and demonstration of additionality result to be the most plausible baseline scenario for the use of alternative fuels: For the fate of any wastes originating from fossil sources: scenarios W1 and/or W3 For the fate of any biomass residues: scenarios B1, B2 and/or B3; For the fate of any renewable biomass: scenario R1. For the project activity, F2 is the most plausible baseline scenario for the use of fossil fuels at the project plant, W3 and B1 and B3 result to be the most plausible baseline scenarios for use of alternative fuels. Since the project activity does not use any renewable biomass, hence condition R 1 is not applicable (identification of baseline scenario is discussed in detail in section B.4). - Applicable
B.3. Description of the sources and gases included in the project boundary:
The physical project boundary covers all production processes related to clinker production, including: The pre-heaters, where the heat of exhaust gas is used to heat the inputs for clinker production; The pre-calciner, where fuels are fired for the pre-calcination of the inputs for clinker production; The kiln tube, where fuels are also fired and where the calcinations process takes place; On-site storage and on-site transportation and drying of alternative fuels (if alternative fuels are used in the project activity); The vehicles used for transportation of alternative fuels to the project site; Where biomass residues are used, the project boundary includes the sites where the biomass residues would be dumped, left to decay or burnt in the absence of the project activity; The project boundary is shown in figures below. Figure B 3.1.1 shows the baseline situation with emission sources and gases
Figure B.3.1.1: Baseline Situation
Imported and local coal Consumption of coal in the Kiln Clinker CO 2 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Figure B 3.1.2 shows the project situation with emission sources, project boundary and gases.
Figure B.3.1.2: Project Activity
Project Boundary Imported and local coal Consumption of coal in the Kiln Tire Waste Transportation of Tire from port to the project plant Recycling of tires to TDF using Tire recycling plant CO2 Consumption of TDF in the Kiln CO2 CO2 MSW Transportation of MSW from landfills to the project plant CO2 Recycling of MSW to RDF using RDF recycling plant Consumption of RDF in the Kiln CO2 Biomass residues (Rice Husk) Clinker Production Recycling of Biomass residues to RDF using RDF recycling plant Consumption of Biomass residues in Kiln Electricity consumption by the RDF and TDF recycling CO2 Cement Production Transportation of MSW from landfills to the project plant CO2 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Emission sources and gases included in or excluded from the project boundary are described in Table 3.
Table B.3.1:Emissions sources included in or excluded from the project boundary Source Gas Included? Justification/Explanation B a s e l i n e
Emissions from fossil fuels displaced in the project plant (BE FF,y ) CO 2 Yes Main emission source CH 4 No Minor source. Neglected for simplicity N 2 O No Minor source. Neglected for simplicity Methane emissions avoided from preventing disposal or uncontrolled burning of biomass residues CO 2 No It is assumed that CO 2 emissions from surplus biomass residues do not lead to changes of carbon pools in the LULUCF sector CH 4 Yes Included if leakage can be ruled out N 2 O No Minor source P r o j e c t
A c t i v i t y
Emissions from the use of alternative fuels (PE k,y ) CO 2 Yes Main emission source CH 4 No Minor source. Neglected for simplicity N 2 O No Minor source. Neglected for simplicity Emissions from the use less carbon intensive fossil fuels (PE k,y ) CO 2 No Not applicable CH 4 No Not applicable N 2 O No Not applicable Emissions from additional electricity as a result of the project activity (PE EC,y ) CO 2 Yes Can be a significant emission source CH 4 No Minor source. Neglected for simplicity N 2 O No Minor source. Neglected for simplicity Emissions from additional fossil fuel consumption as a result of the project activity (PE FC,y ) CO 2 No Not applicable CH 4 No Not applicable N 2 O No Not applicable Emissions from combustion of fossil fuels for transportation of alternative fuels to the project plant (PE T,y ) CO 2 Yes Can be a significant emission source CH 4 No Minor source. Neglected for simplicity N 2 O No Minor source. Neglected for simplicity Emissions from the cultivation of renewable biomass at the dedicated plantation (PE BC,y ) CO 2 No Not applicable CH 4 No Not applicable N 2 O No Not applicable
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B.4. Description of how the baseline scenario is identified and description of the identified baseline scenario:
The identification of baseline scenario is done as per the procedure for the selection of the most plausible baseline scenario and demonstration of additionality provided in ACM0003 (version 07.4) which states that the baseline scenario should be identified and additionality be assessed using the most recent approved version of the Combined tool to identify the baseline scenario and demonstrate additionality (version 3.0.1).
Step 1: Identification of alternative scenarios
Step 1a: Define alternative scenarios to the proposed CDM project activity
According to ACM0003, in applying step 1a of the Combined tool to identify the baseline scenario and demonstrate additionality, the following scenarios are considered, as outcome of step 1a of the tool, as alternatives to the proposed CDM project activity:
Possible alternatives to the fuel mix for cement manufacturing
F1: The proposed project activity not undertaken as a CDM project activity (i.e. use of alternative fuels and/or less carbon intensive fuels) F2: Continuation of current practice, i.e., a scenario in which the company continues cement production using the existing technology, materials and fuel mix F3: The continuation of using only fossil fuels and no alternative fuels, however, with a different fuel mix portfolio, taking into account relative prices of the fuels available. The scenarios may be used on one fuel or a different mixes of fuel. F4: The currently used fuels are partially substituted with alternative fuels and/or less carbon intensive fossil fuels other than those used in the CDM project activity and/or any other fuel types, without using the CDM. If relevant develop different scenarios with different mixes of alternative fuels or less carbon intensive fuels and varying degrees of fuel switch from traditional to alternative fuels or less carbon intensive fuels F5: The construction and operation of a new cement plant
Since the project activity uses alternative fuels, the following alternatives are considered:
Possible alternatives to waste originating from fossil sources used as alternative fuel W1: Incineration of the waste in a waste incinerator without utilizing the energy from the incineration W2: Incineration of the waste in a waste incinerator with use of the energy (e.g. for heat and/or electricity generation) W3: Disposal of the waste at a managed or unmanaged landfill W4: The use of the waste at other facilities, e.g. other cement plants or power plants, as a feedstock or for the generation of energy W5: The recycling or reutilization of the waste W6: The proposed project activity, not undertaken as a CDM project activity, i.e. the use of the waste in the project plant
Since the project activity uses biomass residues (rice husk), the following alternatives are considered: PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Possible alternatives to biomass residues used as alternative fuel
B1: The 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 B2: 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 does not apply to biomass residues that are stock-piled or left to decay on fields B3: The biomass residues are burnt in an uncontrolled manner without utilizing them for energy purposes B4: The biomass residues are sold to other consumers in the market and used by these consumers, such as for heat and/or electricity generation, for the generation of biofuels, as feedstock in processes (e.g. the pulp and paper industry), as fertilizer, etc. B5: The biomass residues are used for other purposes at the project site, such as for heat and/or electricity generation, for the generation of biofuels, as feedstock in processes (e.g. the pulp and paper industry), as fertilizer, etc. B6: The proposed project activity, not undertaken as a CDM project activity, i.e. the use of the biomass residue in the project plant
Since the project activity does not use any renewable biomass; No alternative scenarios to use of renewable biomass are considered.
Outcome of Step 1a: List of plausible alternative scenarios to the project activity.
All the alternatives F1 to F5, W1 to W6 and B1 to B6 mentioned in Step 1a are plausible alternatives to the project activity. Sub-Step 1b: Consistency with mandatory applicable laws and regulations
All of the alternatives identified above are in compliance with the mandatory laws and regulations governing the cement manufacturing process in Pakistan. There are no legal, national, or sectoral policies in place which prohibit the project proponent from opting out any of the alternatives, F1 to F5, W1 to W6 and B1 to B6 which are outcome of step 1a of the tool, in the project years.
Outcome of Step 1b:
All the alternatives F1 to F5, W1 to W6 and B1 to B6 mentioned in Step 1a are in compliance with the mandatory applicable laws and regulations governing the cement manufacturing process in Pakistan.
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Step 2: Barrier analysis Sub-step 2a: Identify barriers that would prevent the implementation of alternative scenarios
A list of barriers that would prevent implementation of alternative scenarios is presented below: Investment barriers: High initial investment without any additional benefit. Technological barrier: Instability in clinker production process, unavailability of skilled labor to operate the technology. Barriers due to Prevailing Practice: Prevailing industry practice in the country. Other barriers: alternative use (other than that in the project activity) of biomass
Sub-step 2b: Eliminate alternative scenarios which are prevented by the identified barriers
In this step barrier analysis has been conducted with respect to each alternative so as to select the most plausible baseline scenario for the project activity. The results are provided in Tables 4.1, 4.2, and 4.3 below followed by details given in case of each alternative.
Table B.4.1: Barrier analysis for F1 to F5
Alternative Sub-step 2a:Identify Barriers that would prevent the implementation of alternative scenarios
Comments Investment Barrier Technological Barrier F1
This alternative turns out to be a plausible baseline scenario to the project activity only in conjunction with B6 and W6 F2
This alternative turns out to be the most plausible baseline scenario to the project activity F3 X This alternative could be excluded from the further consideration. See explanation below F4 X X This alternative could be excluded from the further consideration. See explanation below F5 X X This alternative could be excluded from the further consideration. See explanation below
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Alternative F1: This alternative is not prevented by any of the identified barriers.
Alternative F2: This alternative is not prevented by any of the identified barriers because the continuation of the current practice bears no additional costs; the technology is well-known and is widely used in the country. There are no legal, national, or sectoral policies in place which either prohibit the project proponent from the continuation of current practice in the project years or force the project proponent to undertake the project activity. Hence, it is the most plausible baseline scenario.
Alternatives F3: This alternative is not in consonance with common practice at cement industry in Pakistan. Most of the cement plants in Pakistan primarily use imported coal (because of its purity and low sulphur content) for clinker production. Local coal and pet coke are also used but only in minor fractions. Heavy Fuel Oil (HFO) is primarily used for pre-heating of the kilns and thus cannot be associated with clinker production. At lucky Cement Karachi Plant imported coal has been a preferred choice because its high purity and local coal has only been sparingly used because of its high sulphur content. Thus using local coal in larger quantities could not only create environmental issues but also translate into a serious technological barrier resulting in damage of the clinker production equipment or compromise the clinker quality. Therefore, this alternative is excluded from further consideration as baseline scenario.
Alternative F4: This alternative faces high capital costs and technological barriers. Use of less carbon intensive fuels such as Natural Gas (NG) is not possible due to two reasons (i) Lucky Cement does not have NG connection. Secondly, due to severe gas shortages in the country, there is no possibility of using it even in the remote future. Since there is no way to use fossil fuels other than coal, and use of alternative fuels other than those used in the project activity would require high capital investment, this alternative is excluded from the further consideration as baseline scenario.
Alternative F5: Of all the alternatives discussed so far, this is the most unlikely scenario to happen because of its very high costs which could be many times greater than the project activity cost. Even if a new cement plant is constructed, it shall consume same type of fuels which are currently being utilized in Lucky Cement Karachi Plant, so it shall not make any changes in the CO 2 emissions during its operation. Therefore, it is excluded from the further consideration as baseline scenario. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Table B.4.2: Barrier analysis for W1 to W6
Alternative Sub-step 2a:Identify Barriers that would prevent the implementation of alternative scenarios
Comments Investment Barrier Prevailing Practice Barrier W1 X This alternative could be excluded from the further consideration. See explanation below W2 X This alternative could be excluded from the further consideration. See explanation below W3
This alternative turns out to be the most plausible baseline scenario to the project activity W4 X X This alternative could be excluded from the further consideration. See explanation below W5 X X This alternative could be excluded from the further consideration. See explanation below W6
This alternative turns out to be a plausible baseline scenario to the project activity only in conjunction with F1 and B6
Alternative W1:
Prevailing Practice Barrier: This alternative is prevented by prevailing practice barrier as incineration of waste in a waste incinerator without utilizing the energy from the waste incineration is not a common practice in the Pakistan. There are no facilities in the country for the waste incineration. Alternative W2:
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This alternative is prevented by prevailing practice barrier as incineration of waste in a waste incinerator with utilization of the energy from the waste incineration is not a common practice in the Pakistan. There are no facilities in the country for the waste incineration. Alternative W3: This alternative is not prevented by any of the presented barriers. As disposal of waste in the managed or unmanaged landfills is the common practice in the Pakistan. Alternative W4:
This alternative is prevented by the two barriers prevailing practice barrier and investment barrier.
Prevailing Practice Barrier: Use of waste in the other cement plants is not a common practice 2 in Pakistan. Most of the cement plants use fossil fuels for their clinker production.
Investment barrier: This alternative is prevented by the investment barrier as use of waste for the clinker production requires state of the art waste recycling plants. These recycling plant are very costly and requires high upfront cost and operational and maintenance cost. That is why this alternative is not a common practice in the country. Alternative W5: This alternative is prevented by the two barriers prevailing practice barrier and investment barrier.
Prevailing Practice Barrier: The recycling and utilization of the waste in the country is not the common practice.
Investment barrier: The use of waste requires a recycling plant which is very costly. It requires high upfront and operational and maintenance cost. That is why this alternative is not the suitable baseline scenario. Alternative W6: This alternative is not prevented by any of the identified barriers.
2 As demonstrated in section b.5 common practice analysis PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Table B.4.3: Barrier analysis for B1 to B6
Alternative Sub-step 2a:Identify Barriers that would prevent the implementation of alternative scenarios
Comments Prevailing Practice Barrier Other Barriers B1
This alternative turns out to be the most plausible baseline scenario to the project activity B2 X This alternative could be excluded from the further consideration. See explanation below B3
This alternative turns out to be the most plausible baseline scenario to the project activity B4 X This alternative could be excluded from the further consideration. See explanation below B5 X This alternative could be excluded from the further consideration. See explanation below B6
This alternative turns out to be a plausible baseline scenario to the project activity only in conjunction with F1 and W6
Alternative B1:
The surplus biomass residue would be dumped or left to decay under mainly aerobic conditions in the absence of the proposed project activity. Therefore, Alternative B1 is a realistic baseline alternative for unused biomass. Hence this alternative is a likely baseline scenario. Alternative B2:
Prevailing Practice Barrier: Dumping of biomass residue under clearly anaerobic condition is not a common practice in the country. Normally the biomass residue are dumped or left for decay on field or burnt in an uncontrolled manner PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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for storage efficiency. Hence this alternative is not a likely baseline scenario as it faces prevailing practice barrier. Alternative B3: Burning of surplus biomass residues in an uncontrolled manner without utilizing them for energy purposes is the most prevalent practice in Pakistan. Hence this is a likely scenario as this alternative faces no barrier. Alternative B4:
Prevailing Practice Barrier: As discussed earlier it is not a common practice in Pakistan to utilize biomass residue in industry. Biomass is usually dumped or burnt at site of production as a means of disposal. Hence this alternative is not a likely baseline scenario as it faces prevailing practice barrier. Alternative B5:
Other Barrier This is not a likely scenario as there is no other possible use (other than incineration in the kiln) of alternative fuel at the Lucky Cement Karachi Plant. Alternative B6: This alternative is not prevented by any of the identified barriers.
Outcome of Step 2b: List of alternative scenarios to the project activity that are not prevented by any barrier.
Alternative 1 F1, W6, B6: The proposed project activity not undertaken as a CDM project activity (i.e. use of alternative fuels in the project plant such as TDF from tyre waste, RDF from municipal solid waste and rice husk).
Alternative 2 F2, W3, B1 and B3: Continuation of current practice (i.e., a scenario in which the company continues cement production using the existing technology, materials and fuel mix, municipal solid waste is disposed at a managed or unmanaged landfill and the continuation of dumping of biomass residue (rice husk) under aerobic condition and burning biomass residues in an uncontrolled manner).
As further discussed in section B.5 alternative 1 is economically less attractive than alternative 2. Hence alternative 2 has been identified as the baseline scenario.
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B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the registered CDM project activity (assessment and demonstration of additionality):
CDM consideration before starting date of the project and continued effort to secure CDM status
The starting date of the project activity is November 23 rd 2010 corresponding to the date of signing of contract between Lucky Cement Limited and the project equipment supplier, Eldan Denmark. Lucky Cement was aware of CDM since February 2007 and it played an instrumental role in the investment decision taken on October 21 st , 2010 to implement the project. Discussions with CDM consultants started in February 2007 and during the whole implementation phase before validation, Lucky Cement was accompanied by CDM consultants. The signing of contract between Lucky Cement and civil work consultant was finalized in May 2011. The key dates of the project timeline are provided in table B.5.1
Table B.5.1: Project Timeline Milestone Date Source CDM awareness February 3, 2007 Letter from Director of Carbon Services (Private) Limited to Technical Director of Lucky Cement Limited Investment decision 21
October, 2010 Extract from the minutes of the Boards Meeting Starting date of the project activity 23 November, 2010 Contract with Eldan Recycling A/S for TDF plant Contract with Vecoplan for RDF plant 26 January, 2011 Contract with Vecoplan for RDF plant Letter of credit for TDF plant 30 November, 2010 LC for the TDF plant Letter of credit for RDF plant 7 December, 2010 LC for the RDF plant Intimation to UNFCCC and DNA (Designated National Authority) Pakistan 06 April, 2011 Prior Consideration letter to UNFCCC and DNA. Contract for Civil works and Mechanical works May, 2011
As per the recommendations of the methodology ACM0003 (version 7.4) Combined tool to identify the baseline scenario and demonstrate additionality (version 03.0.1) is used for setting the baseline and the assessment and demonstration of additionality. As per the tool following steps needed to the applied:
Step 1: Identification of alternative and baseline scenarios Step 2: Barrier analysis Step 3: Investment analysis Step 4: Common practice analysis
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Step 1: Identification of alternative and baseline scenarios
Step 1a: Define alternative scenarios to the proposed CDM project activity This step has been described in detail above (section B.4 in the PDD).
Sub-step 1b: Consistency with mandatory laws and regulation This step has been described in detail above (section B.4 in the PDD).
Step 2: Barrier analysis
Sub-step 2a: Identify barriers that would prevent the implementation of alternative scenarios This step has been described in detail above (section B.4 in the PDD).
Sub-step 2b: Eliminate alternative scenarios which are prevented by the identified barriers This step has been described in detail above (section B.4 in the PDD).
Outcome of Step 2b: List of alternative scenarios to the project activity that are not prevented by any barrier.
Alternative 1 F1, W6, B6: The proposed project activity not undertaken as a CDM project activity (i.e. use of alternative fuels in the project plant such as TDF from tyre waste, RDF from municipal solid waste and rice husk).
Alternative 2 F2, W3, B1 and B3: Continuation of current practice (i.e., a scenario in which the company continues cement production using the existing technology, materials and fuel mix, municipal solid waste is disposed at a managed or unmanaged landfill and the continuation of dumping of biomass residue (rice husk) under aerobic condition and burning biomass residues in an uncontrolled manner).
Step 3: Investment Analysis:
As discussed in the section above, it is required to substantiate the additionality by conducting a benchmark analysis comparing the alternatives as identified in step 2. The investment analysis is done in line with the Guidelines on the Assessment of Investment Analysis (Version 5.0.0) 3
The reasoning provided in the following paragraphs clearly reveals that the criteria employed for the selection of type of IRR and the corresponding benchmark are as per the guidance provided in paragraphs 12-14 of Annex 5 to EB 62.
It is stated in Paragraph 12 of Annex 5 to EB 62 that In cases where a benchmark approach is used the applied benchmark shall be appropriate to the type of IRR calculated. Local commercial lending rates or weighted average costs of capital (WACC) are appropriate benchmarks for a project IRR. Required/expected returns on equity are appropriate benchmarks for an equity IRR. Benchmarks supplied by relevant national authorities are also appropriate if the DOE can validate that they are applicable to the project activity and the type of IRR calculation presented
3 Annex 5 to EB 62 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Furthermore, Paragraph 13 of Annex 5 to EB 62 states that In the cases of projects which could be developed by an entity other than the project participant the benchmark should be based on parameters that are standard in the market.
With regard to the proposed CDM project activity:
The investment analysis is in compliance with the requirements of Paragraph 12 of Annex 5 to EB 62 as it is based on the calculation of project IRR and its comparison with the commercial lending rate (15.21%) evaluated at the time of investment decision.
The chosen benchmark is in compliance with the requirements of Paragraph 13 of Annex 5 to EB 62 as the project activity could have been implemented by an entity other than Lucky Cement.
As per guidance provided in Paragraph 14 of Annex 5 to EB 62, Internal company benchmarks/expected returns (including those used as the expected return on equity in the calculation of weighted average cost of capital-WACC) should only be applied in cases where there is only one possible project developer... The reasoning provided in the preceding paragraph clearly shows that this is not the case; therefore, use of equity IRR or internal benchmark is not appropriate the context of the current project activity.
The discussion provided above clearly shows that the selection of project IRR and the corresponding benchmark are appropriate for the purpose of conducting investment analysis of the project activity.
Below it is demonstrated that the Internal Rate of Return for the project activity, i.e. (project IRR) is lower than the benchmark and the project IRR surpasses the benchmark return only with an additional revenue stream from sale of Certified Emission Reductions (CER) generated under the project activity.
Benchmark (Commercial Lending Rate): The local lending and borrowing rates in Pakistan are based on Karachi Inter-bank Offered Rate (KIBOR) plus the credit spread over the KIBOR charged by the local bank. In February 2004, KIBOR was officially introduced by State Bank of Pakistan as a reference rate for all corporate in Pakistan 4 . Thus the KIBOR portion of the commercial lending rate is always determined by SBP. The credit spread calculation is performed by local banks which determine it based on various project specific risks or characteristics of a project type.
For the determination of the benchmark (commercial lending rate) for the project activity, Lucky Cement considered a 6 month tenor average KIBOR of 13.21% for October 2010 5 and assumed a credit spread of 200 basis points which was based on a loan offer extended to Lucky Cement by a local bank in Pakistan 6 . The benchmark thus evaluated was (13.21% + 2.0%) 15.21%.
4 Press release by State Bank of Pakistan: http://www.sbp.org.pk/press/2004/jan-21-04.pdf Third Quarterly report of State Bank of Pakistan FY04: http://sbp.org.pk/reports/quarterly/fy04/thirdQtr/Money%20Market.pdf 5 This is based on average KIBOR rate as available on October 20 th for the month of October 2010. KIBOR rates for October 2010 are available at the website of State Bank of Pakistan: http://www.sbp.org.pk/ecodata/kibor/2010/Oct/index.asp 6 Habib Metropolitan Bank Limited loan offer letter to Lucky Cement PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Calculation and comparison of the project IRR with the selected benchmark
The following general assumptions have been made to calculate the project IRR of the project activity:
Table B.5.2: General assumptions for project IRR calculation General Information Value Unit Source of data Exchange rate to PKR 120.1 PKR Feasibility Study: Exchange rate EURO to PKR on October 20, 2010 www.xe.com as on Exchange rate $ to PKR 86.00 PKR Feasibility Study (Exchange rate USD to PKR on October 20, 2010 http://www.forex.pk/currency- converter.php?send=Y) Depreciation period 20 years Operational technical lifetime of the project plant(letter from the equipment supplier) Technical lifetime of the plant 20 years Operational technical lifetime of the project plant(letter from the equipment supplier) Tax on net income 35 % Income Tax Ordinance Total project investment 1,037,140,283 PKR Feasibility study Operational & maintenance cost 10,371,403 PKR O&M Cost guarantee letter from the supplier Percentage of project loan 100 % Bank Loan Offer Letter Loan period 7 Years Bank Loan Offer Letter Grace period 2 Years Bank Loan Offer Letter Clinker Production 3,385,800 Tons/yr Feasibility Study Coal consumption at the baseline scenario 443,426 Tons/yr Feasibility Study Coal consumption at the project scenario 221,713 Tons/yr Feasibility Study Coal Cost 10,798 PKR/ton London Commodity News Letter Rice Husk Cost 5,650 PKR/ton Quotation from the Rice Husk supplier TDF Cost 11,724 PKR/ton Quotation from the TDF supplier RDF Cost 6,240 PKR/ton Quotation from the RDF supplier
The total investment amount to implement the project is 1,037,140,283 PKR. This includes cost of TDF plant, RDF plant and purchasing of local components for the project activity. As the analysis period corresponds to the depreciation period of 20 years, the fair value of the project investments will be 0 at the end of the analysis period 7 . Depreciation and financial expenses are only used for tax calculation and added back to net profits for the calculation of the project IRR. The Operation and Maintenance (O&M) Costs considered for the project activity is 10,371,403 PKR per annum which represent 1% of the total investment costs 8 .
7 Operational guarantee letter from the equipment supplier 8 Operation and Maintenance Cost letter from the equipment supplier PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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The resulting project IRR of the project saving potential by introducing the project activity is very low and it is in negative. As the benchmark is determined at 15.21%, the project activity would not be implemented. Considering the CER revenues, the project IRR would come up to 15.60% and so gets an economically attractive investment option for project proponent.
Sensitivity analysis
To show the robustness of the results, a sensitivity analysis is carried out for the variation (+/- 10%) of the decisive variables of the project activity. These are the initial project investment, coal cost and alternate fuel cost. The results of the sensitivity analysis are shown in Table B.5.3.
Table B.5.3: Sensitivity analysis Project Investment -10% Base Case 10% Net Saving Cash Flow w/o CER - - - Benchmark 15.21% 15.21% 15.21% Break Even Point -89.55%
Coal Cost -10% Base Case 10% Net Saving Cash Flow w/o CER - - 14.57% Benchmark 15.21% 15.21% 15.21% Break Even Point 10.29%
Alternate Fuel Cost -10% Base Case 10% Net Saving Cash Flow w/o CER 15.00% - - Benchmark 15.21% 15.21% 15.21% Break Even Point -10.09%
The sensitivity analysis shows that the results are robust; even a variation of +/- 10% in the project investment, coal cost and alternate fuel cost do not make the project economically additional without the CDM benefits. For the project investment, the limit of additionality is situated at a total investment cost decrease of 89.55%. This in the present project highly unlikely. For the coal cost, the limit of additionality is situated at a coal cost increase of 10.29%, which is highly unlikely in the current scenario. Likewise a decrease of 10.09% in alternate fuel cost will turn the project financially attractive without the CER revenue. This in the present scenario is highly unlikely.
Outcome of step 3:
Hence as explained in the investment analysis, the project activity would not be economically attractive without the consideration of the CER revenue and would not be realised.
Hence Alternative 1 (F1, W6, B6): The proposed project activity not undertaken as a CDM project activity is not a financially viable option.
Therefore, Alterative 2 (F2, W3, B1 and B3): Continuation of current practice (i.e., a scenario in which the company continues cement production using the existing technology, materials and fuel mix, municipal solid waste is disposed at a managed or unmanaged landfill and the continuation of dumping of PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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biomass residue (rice husk) under aerobic condition and burning biomass residues in an uncontrolled manner) is the only plausible baseline scenario.
Step 4: Common practice analysis
Geographical area for the assessment of common practice in Pakistan is the cement industry of Pakistan. The common practice in Pakistan at the other 28 cement plants is the use of fossil fuels for clinker production. Use of alternative fuels on such large scale has never been attempted by any cement factory in Pakistan (except by DG Cement, which is also a CDM based project) which shows that the project activity is not a common practice in the region. This has been confirmed by All Pakistan Cement Manufacturers Association (APCMA) that the proposed CDM project activity at Lucky Cement Karachi Plant is among the first of its kind in the cement industry of Pakistan in terms of size, installation of fully automatic equipment, and environment friendly technological features.
As per the latest Guidelines on the common practice (version 01.0) 9 common practice can be demonstrated as below:
Step 1: Lucky Cement Karachi Plant produced 3,428,571 tons of clinker in June 2009 10 . If we take +50% and -50% of the clinker production then the applicable range will become 1,714,286 - 5,142,857 tons per year clinker production.
Step 2: In the project activity applicable geographical area is taken as the host country. There are total 28 cement plants in the host country. Out of these, there are 9 cement plants in the geographical area that come in the applicable range of 1,714,286 - 5,142,857 tons per year.
N all = 9
Step 3: Within the plants identified in step 2 those plants that apply different technology other than the project activity.
N diff = 8
Step 4: F = 1 - (N diff / N all ) F = 0.11
N diff - N all = 1
Outcome of step 4:
F is less than 0.2 N diff - N all is less than 3
9 Annex 12 of EB 65 10 Source: Ministry of Industries PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Since both factors F and difference of N diff N all are less than 0.2 and 3, respectively, this project activity is not a common practice 11 .
In view of the investment, sensitivity and common practice analyses provided above, it can be concluded that project activity is additional i.e. CDM income is necessary for the implementation of the project and without CDM income the project would not have been implemented.
B.6. Emission reductions:
B.6.1. Explanation of methodological choices:
The emission reductions of the project activity were calculated according to the methodology ACM0003 (version 7.4)
Project emissions
Project emissions include project emissions from the use of alternative fuels (PE k,y ), project emissions from additional electricity and/or fossil fuel consumption as a result of the project activity (PE EC,y andPE FC,y ), project emissions from combustion of fossil fuels for transportation of alternative fuels to the project plant (PE T,y ), and, if applicable, project emissions from the cultivation of renewable biomass at the dedicated plantation (PE BC,y ):
y , BC y , T y , EC y , FC y , k y PE PE PE PE PE PE (1)
Where:
PE y = Project emissions during the year y (tCO 2 e) PE k,y = Project emissions from combustion of alternative fuels in the project plant in year y (tCO 2 ) PE FC,y = Project emissions from additional fossil fuel combustion as a result of the project activity in year y (tCO 2 ) PE EC,y = Project emissions from additional electricity consumption as a result of the project activity in year y (tCO 2 ) PE T,y = CO 2 emissions during the year y due to transport of alternative fuels to the project plant (tCO 2 ) PE BC,y = Project emissions from the cultivation of renewable biomass at the dedicated plantation in year y (tCO 2 e)
11 Detailed common practice analysis as per the guidelines on common practice (version 01.0) will be provided to DOE during validation PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Project emissions are calculated in the following steps:
Step 1. Calculate project emissions from the use of alternative fuels. Step 2. Calculate project emissions from additional electricity and/or fossil fuel consumption as a result of the project activity. Step 3. Calculate project emissions from combustion of fossil fuels for transportation of alternative fuels to the project plant. Step 4. Calculate project emissions from the cultivation of renewable biomass at the dedicated plantation.
Step 1: Calculate project emissions from the use of alternative fuels and/or less carbon intensive fossil fuels
In case of project activity:
Project emissions from the use of alternative fuels in the project plant are calculated as follows:
k y k, CO2, y k, y k, PJ, y k, EF NCV FC PE (2)
Where: PE k,y = Project emissions from combustion of alternative fuels in the project plant in year y (tCO 2 ) FC PJ,k,y = Quantity of alternative fuel type k used in the project plant in year y (tons) EF CO2,k,y = Carbon dioxide emissions factor for alternative fuel type k in year y (tCO 2 /GJ) NCV k,y = Net calorific value of the alternative fuel type k in year y (GJ/tonne) k = Alternative fuel types used in the project plant in year y
Step 2: Calculate project emissions from additional electricity and/or fossil fuel consumption as a result of the project activity
The use of alternative fuels or less carbon intensive fossil fuels may result in additional fossil fuel and/or electricity consumption at the project site or off-site. This may include, inter alia, the following emission sources:
Drying or mechanical treatment of the fuels; On-site transportation of the fuels; Flue gas treatment required as a result of the project activity.
CO 2 emissions from on-site combustion of fossil fuels (PE FC,y ) should be calculated using the latest approved version of the Tool to calculate project or leakage CO 2 emissions from fossil fuel combustion. For each fossil emission source j, the fuel consumption of each fuel type i (FC i,j,y ) should be monitored, consistent with the guidance in the tool.
In case of Project Activity:
There is no fossil fuel consumption at the project plant, so no emissions can be associated with the combustion of fossil fuels. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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CO 2 emissions from on-site electricity consumption (PE EC,y ) have been calculated using the latest approved version of the Tool to calculate baseline, project and/or leakage emissions from electricity consumption.
In case of Project Activity:
The following equation is used according to the tool for the calculation of Project Emissions due to electricity consumption
Where:
PE EC,y = Project emissions from electricity consumption in year y (tCO 2 /yr) EC PJ,j,y = Quantity of electricity consumed by the project electricity consumption source j in year y (MWh/yr) EF EL,j,y = Emission factor for electricity generation for source j in year y (tCO 2 /MWh) TDL j,y = Average technical transmission and distribution losses for providing electricity to source j in year y 12
The Emission Factor for electricity generation source has to be chosen using one of the 3 scenarios mentioned in the tool.
Since there is a fossil fuel fired captive power plant installed at the site of electricity consumption and the plant is not connected to the grid, Scenario B is identified as the most plausible scenario for the determination of the emission factor for electricity generation.
Step 3: Project emissions from combustion of fossil fuels for transportation of alternative fuels to the project plant
CO 2 emissions resulting from transportation of alternative fuels to the project plant are determined in this step. In the case of project activity transportation is undertaken by vehicles (trucks). Project participant has chosen an approach based on distance and vehicle type (Option 1).
Option 1:
y km,CO2, y y k y k, T, y T, EF AVD TL AF PE (4)
Where: PE T,y = CO 2 emissions during the year y due to transport of alternative fuels to the project plant (tCO 2 /yr)
12 Taken as 0% as mentioned in the Tool to calculate baseline, project and/or leakage emissions from electricity consumption (Version 01). This is the default value for scenario B. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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N y = Number of truck trips during the year y AVD y = Average round trip distance (from and to) between the alternative fuel supply sites and the site of the project plant during the year y (km) EF km,CO2,y = Average CO 2 emission factor for the trucks measured during the year y (tCO 2 /km) AF T,k,y = Quantity of alternative fuel type k that has been transported to the project site during the year y (mass or volume units) TL y = Average truck load of the trucks used (tons or liter) during the year y k = Types of alternative fuels used in the project plant and that have been transported to the project plant in year y
Step 4: Calculate project emissions from the cultivation of renewable biomass at the dedicated plantation
This step is not applicable in our case as renewable biomass is not used in our Project activity.
Baseline emissions
The project reduces CO 2 emissions by using alternative fuels in the pre-calciner and the kiln for the production of clinker in cement manufacture. The project also reduces CH 4 emissions from preventing disposal of biomass residues. Baseline emissions are calculated as follows:
y biomass, CH4, y FF, y BE BE BE (7)
Where: BE y = Baseline emissions in year y (tCO 2 ) BE FF,y = Baseline emission from fossil fuels displaced by alternative fuels in year y (tCO 2 ) BE CH4,biomass,y = Baseline methane emissions avoided during the year y from preventing disposal or uncontrolled burning of biomass residues (tCO 2 e)
Baseline emissions are determined in the following steps:
Step 1. Estimate the project specific fuel penalty. Step 2. Calculate baseline emissions from the fossil fuels displaced by the alternative fuel(s). Step 3. Calculate baseline emissions from decay, dumping or burning of biomass residues.
Step 1: Estimate the project specific fuel penalty
This project specific fuel penalty (FP y ) has been determined as follows:
) SEC (SEC P FP BL clinker, y PJ, clinker, y clinker, y (8) Where: FP y = Fuel penalty in year y (GJ) P clinker,y = Production of clinker in year y (tons) SEC clinker,PJ,y = Specific energy consumption of the project plant in year y (GJ/t clinker) SEC clinker,BL = Specific energy consumption of the project plant in the absence of the project activity (GJ/t clinker) PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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The specific energy consumption in the project is calculated based on the quantity of all fuels used in the project plant and the quantity of clinker produced in year y, as follows: y clinker, k y , k y , k , PJ i y i, y PJ,i, y PJ, clinker, P NCV FC NCV FC SEC (9)
Where: SEC clinker,PJ,y = Specific energy consumption of the project plant in year y (GJ/t clinker) FC PJ,i,y = Quantity of fossil fuel type i fired in the project plant in year y (tons) NCV i,y = Net calorific value of the fossil fuel type i in year y (GJ/ton) FC PJ,k,y = Quantity of alternative fuel type k used in the project plant in year y (tons) NCV k,y = Net calorific value of the alternative fuel type k in year y (GJ/tonne) P clinker,y = Production of clinker in year y (tons) k = Alternative fuel types used in the project plant in year y i = Fossil fuel types used in the project plant in year y that are not less carbon intensive fossil fuel types
As a conservative approach, the specific energy consumption in the absence of the project activity has been calculated as the lowest annual ratio of fuel input per clinker production among the most recent three years (July 2007 June 2010) prior to the start of the project activity, as follows:
2 x clinker, 2 x 1 - x clinker, 1 - x x clinker, x BL clinker, P HG ; P HG ; P HG MIN SEC (10)
With i i x i, x NCV FC HG (11)
Where: SEC clinker,BL = Specific energy consumption of the project plant in the absence of the project activity (GJ/t clinker) HG x = Heat generated from fuel combustion in the project plant in the historical year x (GJ) FC i,x = Quantity of fossil fuel type i used in the project plant in year x (tons) NCV i = Net calorific value of the fossil fuel type i (GJ/ton) P clinker,x = Production of clinker in year x (tons) x = Year prior to the start of the project activity i = Fossil fuel types used in the project plant in the last three years prior to the start of the project activity
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Step 2: Calculate baseline emissions from the fossil fuels displaced by the alternative or less carbon intensive fuel(s)
Baseline emissions from displacement of fossil fuels are calculated as follows:
y BL, CO2, , , , y FF, EF BE y k y k y k PJ FP NCV FC (12)
Where: BE FF,y = Baseline emission from fossil fuels displaced by alternative fuels in year y (tCO 2 ) FC PJ,k,y = Quantity of alternative fuel type k used in the project plant in year y (tons) NCV k,y = Net calorific value of the alternative fuel type k in year y (GJ/tonne) FP y = Fuel penalty in year y (GJ) EF CO2,BL,y = Carbon dioxide emissions factor for the fossil fuels displaced by the use of alternative fuels in the project plant in year y (tCO 2 /GJ) k = Alternative fuel types used in the project plant in year y
The baseline emission factor (EF CO2,BL,y ) is estimated as the lowest of the following CO 2 emission factors for Case A and B (Case C is not applicable to the project activity as F3 is not a plausible baseline scenario):
A. The weighted average CO 2 emission factor for the fossil fuel(s) consumed during the most recent three years before the start of the project activity, calculated as follows:
i i x i, 1 x i, 2 x i, i i FF, CO2, i x i, 1 x i, 2 x i, y BL, CO2, NCV FC FC FC EF NCV FC FC FC EF (13)
Where: EF CO2,BL,y = Carbon dioxide emissions factor for the fossil fuels displaced by the use of alternative fuels in the project plant in year y (tCO 2 /GJ) FC i,x = Quantity of fossil fuel type i used in the project plant in year x (tons) NCV i = Net calorific value of the fossil fuel type i (GJ/ton) EF CO2,FF,i = CO 2 emission factor for fossil fuel type i (tCO 2 /GJ) x = Year prior to the start of the project activity i = Fossil fuel types used in the project plant in the last three years prior to the start of the project activity
B. The weighted average annual CO 2 emission factor of the fossil fuel(s) that are not less carbon intensive fossil fuels and that are used in the project plant in year y, calculated as follows:
i i, , , i y i, FF, CO2, y i, , , y BL, CO2, NCV EF NCV EF y y i PJ y i PJ FC FC (14)
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Where: EF CO2,BL,y = Carbon dioxide emissions factor for the fossil fuels displaced by the use of alternative fuels in the project plant in year y (tCO 2 /GJ) FC PJ,i,y = Quantity of fossil fuel type i fired in the project plant in year y (tons) NCV i,y = Net calorific value of the fossil fuel type i in year y (GJ/ton) EF CO2,FF,i,y = Carbon dioxide emission factor for fossil fuel type i in year y (tCO 2 /GJ) i = Fossil fuel types used in the project plant in year y that are not less carbon intensive fossil fuel types
Step 3: Calculate baseline emissions from decay, dumping or burning of biomass residues
Baseline emissions from decay, dumping or burning of biomass residues are calculated as follows:
y , 2 B , 4 CH y , 3 B / 1 B , 4 CH y , biomass , 4 CH BE BE BE (16)
Where:
BE CH4,biomass,y = Baseline methane emissions avoided during the year y from preventing disposal or uncontrolled burning of biomass residues (tCO 2 e) BE CH4,B1/B3,y = Baseline methane emissions avoided during the year y from aerobic decay and/or uncontrolled burning of biomass residues (tCO 2 e) BE CH4,B2,y = Baseline methane emissions avoided during the year y from anaerobic decay of biomass residues at a solid waste disposal site (tCO 2 e)
In case of Project Activity:
The baseline methane emissions are avoided from aerobic decaying of the biomass residues. So, only BE CH4,B1/B3,y has to be calculated. Whereas baseline methane emissions are not avoided from anaerobic decay of biomass so BE CH4,B2,y = 0.
Baseline emissions avoided from aerobic decay and/or uncontrolled burning of biomass residues are calculated as follows:
y k, 4, burning,CH y k, k y k, PJ, CH4 y B1/B3, CH4, EF NCV FC GWP BE (17) Where: BE CH4,B1/B3,y = Baseline methane emissions avoided during the year y from aerobic decay and/or uncontrolled burning of biomass residues (tCO 2 e) GWP CH4 = Global Warming Potential of methane valid for the commitment period (tCO 2 e/tCH 4 ) FC PJ,k,y = Quantity of alternative fuel type k used in the project plant in year y (tons) NCV k,y = Net calorific value of the alternative fuel type k in year y (GJ/tonne) EF burning,CH4,k,y = CH 4 emission factor for uncontrolled burning of the biomass residue type k during the year y (tCH 4 /GJ) k = Types of biomass residues used as alternative fuel in the project plant in year y for which the identified baseline scenario is B1 or B3 and for which leakage effects could be ruled out with one of the approaches L 1 , L 2 or L 3 described in the leakage section PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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To determine the CH 4 emission factor, referenced default values have been used. In our scenario the default value of 0.0027 tCH 4 /ton biomass is used for the product of NCV k and EF burning,CH4,k,y and the uncertainty is deemed to be greater than 100%, thus resulting in a conservativeness factor of 0.73 (See table B.6.1.1). Thus, in this case, an emission factor of 0.001971 t CH 4 /t biomass is used.
Table B.6.1.1: Conservativeness factors Estimated uncertainty range (%) Assigned uncertainty band (%) Conservativeness factor where lower values are more conservative Less than or equal to 10 7 0.98 Greater than 10 and less than or equal to 30 20 0.94 Greater than 30 and less than or equal to 50 40 0.89 Greater than 50 and less than or equal to 100 75 0.82 Greater than 100 150 0.73
Leakage emissions
Leakage emissions are calculated as follows:
y , upstream , FF y , BR y LE LE LE (18)
Where: LE y = Leakage emissions during the year y (tCO 2 e/yr) LE BR,y = Leakage emissions related to the use of biomass residues during the year y (tCO 2 ) LE FF,upstream,y = Upstream leakage emissions from fossil fuel use in year y (tCO 2 e)
Leakage emissions are calculated in two steps:
Step 1. Calculation of leakage emissions related to the use of biomass residues. Step 2. Calculation of upstream leakage emissions from fossil fuel use.
Step 1: Calculation of leakage emissions related to the use of biomass residues
In case of Project Activity: As the quantity of available biomass residue is at least 25% larger than the quantity of biomass residue utilized in the region, approach L 2 is used to demonstrate that there are no leakages associated with the project activity.
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Step 2: Calculation of upstream leakage emissions from fossil fuel use
Upstream leakage emissions from fossil fuel use are calculated as follows:
y CO2, LNG, y CH4, y upstream, FF, LE LE LE (20)
Where: LE FF,upstream,y = Upstream leakage emissions from fossil fuel use in year y (tCO 2 e) LE CH4,y = Leakage emissions due to fugitive upstream CH 4 emissions in the year y (t CO 2 e) LE LNG,CO2,y = Leakage emissions due to fossil fuel combustion / electricity consumption associated with the liquefaction, transportation, re-gasification and compression of LNG into a natural gas transmission or distribution system during the year y (t CO 2 e)
Fugitive methane emissions
For the purpose of determining fugitive methane emissions associated with the production and in case of natural gas, the transportation and distribution of the fuels the following equation is used: CH4 CH4 upst ream, i, y i, i y i, BL, k CH4 upst ream, k, y k, y k, PJ, y CH4, GWP EF NCV FC EF NCV FC LE (21)
Where: LE CH4,y = Leakage emissions due to fugitive upstream CH 4 emissions in the year y (t CO 2 e) FC PJ,k,y = Quantity of less carbon intensive fossil fuel type k used in the project plant in year y (mass or volume unit) FC BL,i,y = Quantity of fossil fuel type i displaced in the project plant as a result of the project activity in year y (mass or volume unit) NCV k,y = Net calorific value of less carbon intensive fossil fuel type k in year y (GJ/mass or volume unit) NCV i,y = Net calorific value of fossil fuel type i in year y (GJ/mass or volume unit) EF k,upstream,CH4 = Emission factor for upstream fugitive methane emissions from production, transportation and distribution of less carbon intensive fuel type k (t CH 4 / GJ) EF i,upstream,CH4 = Emission factor for upstream fugitive methane emissions from production, transportation and distribution of fossil fuel type i (t CH 4 / GJ) GWP CH4 = Global warming potential of methane valid for the relevant commitment period k = Less carbon intensive fossil fuel types used in the project plant in year y i = Fossil fuel types displaced in the project plant as a result of the use of alternative fuels or less carbon intensive fossil fuels under the project activity
Where reliable and accurate national data on fugitive CH 4 emissions associated with the production, and in case of natural gas, the transportation and distribution of the fuels is available, project participants should use this data to determine average emission factors by dividing the total quantity of CH 4 emissions by the quantity of fuel produced or supplied respectively. 13
13 GHG inventory data reported to the UNFCCC as part of national communications can be used where country- specific approaches (and not IPCC Tier 1 default values) have been used to estimate emissions. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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As reliable and accurate national data on fugitive CH 4 emissions associated with the production, and in case of natural gas, the transportation and distribution of the fuels is not available; the default values provided in Table B.6.1.2 below are used.
As LNG is not used in the project activity, therefore LE FF,upstream,y = 0.
Activity Unit Default emission factor Reference for the underlying emission factor range in Volume 3 of the 1996 Revised IPCC Guidelines Coal Underground mining t CH4 / kt coal 13.4 Equations 1 and 4, p. 1.105 and 1.110 Surface mining t CH4 / kt coal 0.8 Equations 2 and 4, p.1.108 and 1.110 Oil Production t CH4 / PJ 2.5 Tables 1-60 to 1-64, p. 1.129 - 1.131 Transport, refining and storage t CH4 / PJ 1.6 Tables 1-60 to 1-64, p. 1.129 - 1.131 Total t CH4 / PJ 4.1 Natural gas USA and Canada Production t CH4 / PJ 72 Table 1-60, p. 1.129 Processing, transport and distribution t CH4 / PJ 88 Table 1-60, p. 1.129 Total t CH4 / PJ 160 Eastern Europe and former USSR Production t CH4 / PJ 393 Table 1-61, p. 1.129 Processing, transport and distribution t CH4 / PJ 528 Table 1-61, p. 1.129 Total t CH4 / PJ 921 Western Europe Production t CH4 / PJ 21 Table 1-62, p. 1.130 Processing, transport and distribution t CH4 / PJ 85 Table 1-62, p. 1.130 Total t CH4 / PJ 105 Other oil exporting countries / Rest of world Production t CH4 / PJ 68 Table 1-63 and 1-64, p. 1.130 and 1.131 Processing, transport and distribution t CH4 / PJ 228 Table 1-63 and 1-64, p. 1.130 and 1.131 Total t CH4 / PJ 296 Note: The emission factors in this table have been derived from IPCC default Tier 1 emission factors provided in Volume 3 of the 1996 Revised IPCC Guidelines, by calculating the average of the provided default emission factor range. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Emission Reductions Emission reductions are calculated as follows:
y y y y LE PE BE ER (24)
Where: ER y = Emission reductions during the year y (tCO 2 /yr) BE y = Baseline emissions during the year y (tCO 2 e/yr) PE y = Project emissions during the year y (tCO 2 e/yr) LE y = Leakage emissions during the year y (tCO 2 e/yr)
B.6.2. Data and parameters that are available at validation:
Data / Parameter: FC impcoal,2009
Data unit: tons Description: Quantity of imported coal used in the kilns in financial year 2009-2010 Source of data used: Data from fuel consumption data logs at the project site Value applied: 440,286 Justification of the choice of data or description of measurement methods and procedures actually applied : Coal is measured at coal feeding end, using weigh feeder. It is recorded daily. Any comment:
Data / Parameter: FC impcoal,2008
Data unit: tons Description: Quantity of imported coal used in the kilns in financial year 2008-2009 Source of data used: Data from fuel consumption data logs at the project site Value applied: 360,679 Justification of the choice of data or description of measurement methods and procedures actually applied : Coal is measured at coal feeding end, using weigh feeder. It is recorded daily. Any comment:
Data / Parameter: FC impcoal,2007
Data unit: tons Description: Quantity of imported coal used in the kilns in financial year 2007-2008 Source of data used: Data from fuel consumption data logs at the project site Value applied: 291,097 Justification of the choice of data or description of Coal is measured at coal feeding end, using weigh feeder. It is recorded daily. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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measurement methods and procedures actually applied : Any comment:
Data / Parameter: FC Local coal,2009
Data unit: tons Description: Quantity of local coal used in the kilns in financial year 2009-2010 Source of data used: Data from fuel consumption data logs at the project site Value applied: 0 Justification of the choice of data or description of measurement methods and procedures actually applied : Coal is measured at coal feeding end, using weigh feeder. It is recorded daily. Any comment:
Data / Parameter: FC local coal,2008
Data unit: tons Description: Quantity of local coal used in the kilns in financial year 2008-2009 Source of data used: Data from fuel consumption data logs at the project site Value applied: 4,945 Justification of the choice of data or description of measurement methods and procedures actually applied : Coal is measured at coal feeding end, using weigh feeder. It is recorded daily. Any comment:
Data / Parameter: FC local coal,2007
Data unit: tons Description: Quantity of local coal used in the kilns in financial year 2007-2008 Source of data used: Data from fuel consumption data logs at the project site Value applied: 1,303 Justification of the choice of data or description of measurement methods and procedures actually applied : Coal is measured at coal feeding end, using weigh feeder. It is recorded daily. Any comment:
Data / Parameter: FC HFO,2009
Data unit: tons Description: Quantity of HFO used in the kilns in financial year 2009-2010 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Source of data used: Data from fuel consumption data logs at the project site Value applied: 440 Justification of the choice of data or description of measurement methods and procedures actually applied : Coal is measured at coal feeding end, using weigh feeder. It is recorded daily. Any comment:
Data / Parameter: FC HFO,2008
Data unit: tons Description: Quantity of HFO used in the kilns in financial year 2008-2009 Source of data used: Data from fuel consumption data logs at the project site Value applied: 644 Justification of the choice of data or description of measurement methods and procedures actually applied :
Any comment:
Data / Parameter: FC HFO,2007
Data unit: tons Description: Quantity of HFO used in the kilns in financial year 2007-2008 Source of data used: Data from fuel consumption data logs at the project site Value applied: 385 Justification of the choice of data or description of measurement methods and procedures actually applied :
Any comment:
Data / Parameter: P clinker,2009
Data unit: tons Description: Production of clinker in financial year 2009-2010 Source of data used: Data from production data logs at the project site Value applied: 3,149,163 Justification of the choice of data or description of measurement methods and procedures actually applied :
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Any comment:
Data / Parameter: P clinker,2008
Data unit: tons Description: Production of clinker in financial year 2008-2009 Source of data used: Data from production data logs at the project site Value applied: 2,643,195 Justification of the choice of data or description of measurement methods and procedures actually applied :
Any comment:
Data / Parameter: P clinker,2007
Data unit: tons Description: Production of clinker in financial year 2007-2008 Source of data used: Data from production data logs at the project site Value applied: 2,107,290 Justification of the choice of data or description of measurement methods and procedures actually applied :
Any comment:
Parameter: NCV Imported Coal
Data unit: GJ/ton Description: Net calorific value of coal used in the kilns in the last three years prior to the start of the project activity Source of data: Coal test reports Value applied: 25.00 Measurement procedures (if any): - Any comment:
Parameter: NCV Local Coal
Data unit: GJ/ton Description: Net calorific value of coal used in the kilns in the last three years prior to the start of the project activity Source of data: Value applied: 24.54 Measurement procedures (if any): - Any comment: PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Parameter: EF CO2,FF,Imported Coal
Data unit: tCO 2 /GJ Description: Weighted average CO 2 emission factor for imported and local coal used in the kilns in the last three years prior to the start of the project activity Source of data: IPCC default values Value applied: 0.0895 Measurement procedures (if any):
Any comment: Lower value has been taken to be on the conservative side.
Parameter: EF CO2,FF,Local Coal
Data unit: tCO 2 /GJ Description: Weighted average CO 2 emission factor for imported and local coal used in the kilns in the last three years prior to the start of the project activity Source of data: IPCC default values Value applied: 0.0895 Measurement procedures (if any):
Any comment: Lower value has been taken to be on the conservative side.
Parameter: EF CO2,FF,HFO
Data unit: tCO 2 /GJ Description: Weighted average CO 2 emission factor for HFO used in the kilns in the last three years prior to the start of the project activity Source of data: IPCC default values Value applied: 0.0788 Measurement procedures (if any):
Any comment: Higher value has been taken to be on the conservative side.
Parameter: EG captive power plant, 2007
Data unit: MWh Description: Quantity of electricity generation from the captive power plant in financial year 2007-2008 Source of data: Data from power generation report Value applied: 228,161 Measurement procedures (if any):
Any comment:
Parameter: EG captive power plant, 2008
Data unit: MWh Description: Quantity of electricity generation from the captive power plant in financial year 2008-2009 Source of data: Data from power generation report PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Value applied: 281,454 Measurement procedures (if any):
Any comment:
Parameter: EG captive power plant, 2009
Data unit: MWh Description: Quantity of electricity generation from the captive power plant in financial year 2009-2010 Source of data: Data from power generation report Value applied: 303,137 Measurement procedures (if any):
Any comment:
Parameter: EG WHR power plant, 2009
Data unit: MWh Description: Quantity of electricity generation from the waste heat recovery power plant in financial year 2009-2010 Source of data: Data from power generation report Value applied: 28,194 Measurement procedures (if any):
Any comment:
Data / Parameter: FC HFO,2007
Data unit: tons Description: Quantity of HFO used in the captive power plant in financial year 2007-2008 Source of data used: Data from fuel consumption data logs at the project site Value applied: 14,625 Justification of the choice of data or description of measurement methods and procedures actually applied :
Any comment:
Data / Parameter: FC HFO,2008
Data unit: tons Description: Quantity of HFO used in the captive power plant in financial year 2008-2009 Source of data used: Data from fuel consumption data logs at the project site Value applied: 6,343 Justification of the choice of data or description of measurement methods
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and procedures actually applied : Any comment:
Data / Parameter: FC HFO,2009
Data unit: tons Description: Quantity of HFO used in the captive power plant in financial year 2009-2010 Source of data used: Data from fuel consumption data logs at the project site Value applied: 4,586 Justification of the choice of data or description of measurement methods and procedures actually applied :
Any comment:
Data / Parameter: FC NG,2007
Data unit: Nm 3
Description: Quantity of NG used in the captive power plant in financial year 20072008 Source of data used: Data from fuel consumption data logs at the project site Value applied: 51,564,262 Justification of the choice of data or description of measurement methods and procedures actually applied :
Any comment:
Data / Parameter: FC NG,2008
Data unit: Nm 3
Description: Quantity of NG used in the captive power plant in financial year 2008-2009 Source of data used: Data from fuel consumption data logs at the project site Value applied: 78,490,821 Justification of the choice of data or description of measurement methods and procedures actually applied :
Any comment:
Data / Parameter: FC NG,2009
Data unit: Nm 3
Description: Quantity of NG used in the captive power plant in financial year 2009-2010 Source of data used: Data from fuel consumption data logs at the project site PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Value applied: 86,893,165 Justification of the choice of data or description of measurement methods and procedures actually applied :
Any comment:
Data / Parameter: FC DI,2007
Data unit: Ltr Description: Quantity of Diesel used in the captive power plant in financial year 2007-2008 Source of data used: Data from fuel consumption data logs at the project site Value applied: 80,189 Justification of the choice of data or description of measurement methods and procedures actually applied :
Any comment:
Data / Parameter: FC DI,2008
Data unit: Ltr Description: Quantity of Diesel used in the captive power plant in financial year 2008-2009 Source of data used: Data from fuel consumption data logs at the project site Value applied: 59,667 Justification of the choice of data or description of measurement methods and procedures actually applied :
Any comment:
Data / Parameter: FC DI,2009
Data unit: tons Description: Quantity of Diesel used in the captive power plant in financial year 2009-2010 Source of data used: Data from fuel consumption data logs at the project site Value applied: 44,955 Justification of the choice of data or description of measurement methods and procedures actually applied :
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B.6.3. Ex-ante calculation of emission reductions:
The methodological approach applied, justifications of the choices and the methodological equations applicable to the project activity are explained in detail in the Section B.6.1. A brief step-wise calculation of emission reductions is provide below:
Baseline emissions Baseline emissions are calculated as follows:
y biomass, CH4, y FF, y BE BE BE
Specific fuel penalty is calculated as zero.
FP y = 0 tCO 2 /year
Baseline emissions from the fossil fuels displaced by the alternative
BE FF,y = 495,005 tCO 2 /year
Baseline emissions from the decay, dumping of biomass residues
BE CH4,biomass,y = 1,814 tCO 2 /year
BE y = 495,005 + 1,814 tCO 2 /year BE y = 496,819 tCO 2 /year
Project emissions
Project emissions are calculated as follows.
y , BC y , T y , EC y , FC y , k y PE PE PE PE PE PE
Project emissions due to use of alternative fuels (PE k,y ),
PE k,y = 287,821 tCO 2 /year
As no fossil fuels are used in the project activity hence PE FC,y is taken as zero.
As no additional electricity is consumed in the project activity hence it is calculated as zero.
PE EC,y = 0
Project emissions from combustion of fossil fuels for transportation of alternative fuels to the project plant (PE T,y ):
PE T,y = 515
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As the project activity does not use any biomass from dedicated plantation so PE BC,y is
not applicable.
Total project emissions,
PE y = 287,821+ 0 + 0 + 515 tCO 2 /year
PE y = 288,335 tCO 2 /year
Leakage
As there is surplus availability of biomass in the region and the project activity does not use LNG, leakage emissions are taken as zero
LE y = 0 tCO 2 /yr
Emission Reductions
Emission reductions are calculated as follows:
2 y y y y 484 , 208 0 288,335 819 , 496 LE PE BE ER tCO
Estimated annual average emission reduction for the project activity is 208,484 tCO 2 / year.
B.6.4 Summary of the ex-ante estimation of emission reductions:
The annual & total estimation of emission reductions for the fixed crediting period of 10 years starting from July 01, 2012 is provided below:
Table B.6.4.1: Ex-ante Estimation of Emission Reductions Year Estimation of project activity emissions (tonnes of CO 2 e) Estimation of baseline emissions (tonnes of CO 2 e) Estimation of leakage (tonnes of CO 2 e) Estimation of overall emission reductions (tonnes of CO 2 e) Year 1 288,335 496,819 0 208,484 Year 2 288,335 496,819 0 208,484 Year 3 288,335 496,819 0 208,484 Year 4 288,335 496,819 0 208,484 Year 5 288,335 496,819 0 208,484 Year 6 288,335 496,819 0 208,484 Year 7 288,335 496,819 0 208,484 Year 8 288,335 496,819 0 208,484 Year 9 288,335 496,819 0 208,484 Year 10 288,335 496,819 0 208,484 Total (tonnes of CO 2 e) 2,883,350 4,968,190 0 2,084,840
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B.7. Application of the monitoring methodology and description of the monitoring plan:
B.7.1 Data and parameters monitored:
Data / Parameter: FC PJ,k,y
Data unit: tons Description: Quantity of alternate fuel used in the project plant in year y Source of data to be used: Internal records of Lucky Cement Limited Value of data applied for the purpose of calculating expected emission reductions in section B.5
Fuel Name Amount RDF 63,608 TDF 153,214 Rice Husk 43,836 Description of measurement methods and procedures to be applied: Data type: Difference of cumulated values Monitoring Instrument:Screw Weigh Feeder Manufacturer: Schenck Model: Multiflex-A20-25 Range:3-15 TPH Accuracy of the Instrument: 99.90% (error 0.10%) Internal Calibration By: Instrument Department External Calibration By: None Calibration Frequency: Twice per year Calibration Standard: Schenck Standard Calibration and Procedure Recording Frequency: Daily Recording Type: Paper and Electronic QA/QC procedures to be applied: QMS procedures will be followed in measuring, recording, and reporting of the parameter. Any comment:
Data / Parameter: FC PJ,coal,y
Data unit: Tons Description: Quantity of coal used in the project plant in year y Source of data to be used: Internal records of Lucky Cement Limited Value of data applied for the purpose of calculating expected emission reductions in section B.5
Fuel Name Amount Coal 221,713 Description of measurement methods and procedures to be applied: Data type: Difference of cumulated values Monitoring Instrument:Coal Dosing System Manufacturer: Schenck Model: Multicore K-50 Range:0-15 TPH Accuracy of the Instrument: 99.90% (error 0.10%) Internal Calibration By: Instrument Department PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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External Calibration By: None Calibration Frequency: Twice per year Calibration Standard: Schenck Standard Calibration and Procedure Recording Frequency: Daily Recording Type: Paper and Electronic QA/QC procedures to be applied: QMS procedures will be followed in measuring, recording, and reporting of the parameter. Any comment:
Data / Parameter: FC PJ,HFO,y
Data unit: Tons Description: Quantity of HFO used in the project plant in year y Source of data to be used: Internal records of Lucky Cement Limited Value of data applied for the purpose of calculating expected emission reductions in section B.5
Fuel Name Amount HFO 0 Description of measurement methods and procedures to be applied: Data type: Difference of cumulated values on energy meter Monitoring Instrument:Unithrem oil firing system Manufacturer: Endress& Hauser Model: Promass - 80 Range: 0 180000 Kg/ H Accuracy of the Instrument: 99.85% (error 0.15%) Internal Calibration By: Instrument Department External Calibration By: None Calibration Frequency: Yearly Calibration Standard: Endress and Hauser Calibration and Procedure Recording Frequency: As per firing of HFO Recording Type: Paper and Electronic QA/QC procedures to be applied: QMS procedures will be followed in measuring, recording, and reporting of the parameter. Any comment: HFO is used only for pre-heating purposes in both the project and baseline scenario. The quantity of HFO consumed will remain the same in the project activity. If HFO consumption during the project years is greater than the historical average of 489 tons/year it will be considered as project emissions.
Data / Parameter: EF CO2,FF,imported coal,y
Data unit: tCO 2 /GJ Description: Weighted average CO 2 emission factor imported coal in year y Source of data to be used: IPCC default values at the lower limit 14 of the uncertainty at a 95% confidence interval as provided in table 1.4 of Chapter1 of Vol. 2 (Energy) of the 2006 IPCC Guidelines on National GHG Inventories
14 To be conservative, choose the upper limit where project emissions are calculated and the lower limit where baseline emissions are calculated. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Value of data applied for the purpose of calculating expected emission reductions in section B.5 0.0895 Description of measurement methods and procedures to be applied: Local value is not available as Pakistan doesnt have any GHG inventory data. Therefore, IPCC default value is used which is permissible by the applied methodology.
QA/QC procedures to be applied:
Any comment:
Data / Parameter: EF CO2,k,y
Data unit: tCO 2 /GJ Description: Weighted average CO 2 emission factor for alternate fuels in year y Source of data to be used: EF CO2,k,y is zero for the following alternative fuels: - Biomass residues; For following alternate fuels, supplier values shall be used. - Tyre waste/TDF - RDF Value of data applied for the purpose of calculating expected emission reductions in section B.5
Fuel Type Emission Factor Biomass Residues (Rice Husk) 0 TDF 60.4 RDF 45.2 Description of measurement methods and procedures to be applied: Emission factors for RDF and TDF will be provided by the supplier.
Data type: measured Archiving procedure: Paper and Electronic Recording Frequency: Each Delivery QA/QC procedures to be applied: .QMS procedures will be followed in recording and reporting of the parameter. Any comment: Values reported by the supplier will kept in record for the entire crediting period
Data / Parameter: NCV k,y
Data unit: GJ/ton Description: Weighted average net calorific value of alternate fuels in year y Source of data to be used: Supplier Value Value of data applied for the purpose of calculating expected emission reductions in section B.5
Fuel Type NCV TDF 26.77 RDF 13.94 Rice Husk 12.64 Description of Net Calorific Value for alternate fuels will be provided by the supplier. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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measurement methods and procedures to be applied:
Data type: measured Archiving procedure: Paper and Electronic Recording Frequency: Each Delivery QA/QC procedures to be applied: QMS procedures will be followed in recording and reporting of the parameter. Any comment: Values reported by the supplier will kept in record for the entire crediting period
Data / Parameter: NCV i,y
Data unit: GJ/ton Description: Weighted average net calorific value of imported coal in year y Source of data to be used: Supplier value Value of data applied for the purpose of calculating expected emission reductions in section B.5
25.00 Description of measurement methods and procedures to be applied: Net Calorific Value (NCV) of the imported coal will be provided by the coal supplier.
Data type: measured Archiving procedure: Paper and Electronic Recording Frequency: Each Delivery QA/QC procedures to be applied: QMS procedures will be followed in measuring, recording, and reporting of the parameter. Any comment: Values reported by the supplier will kept in record for the entire crediting period
Data / Parameter: EG captive power plant, year
Data unit: MWh Description: Quantity of electricity generated in the captive power plant Source of data to be used: Internal records of Lucky Cement Value of data applied for the purpose of calculating expected emission reductions in section B.5 For ex ante calculation, the value for this parameter has been taken as the sum of the following years:
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Description of measurement methods and procedures to be applied: Data type: measured Archiving procedure: Paper and Electronic Recording Frequency: Monthly QA/QC procedures to be applied: QMS procedures will be followed in measuring, recording, and reporting of the parameter. Any comment:
Data / Parameter: EG WHR Plant, year
Data unit: MWh Description: Quantity of electricity generated by the waste heat recovery power plant Source of data to be used: Internal records of Lucky Cement Value of data applied for the purpose of calculating expected emission reductions in section B.5
Year Electricity Generation 2009 2010 28,194 Description of measurement methods and procedures to be applied: Data type: measured Archiving procedure: Paper and Electronic Recording Frequency: Monthly QA/QC procedures to be applied: QMS procedures will be followed in measuring, recording, and reporting of the parameter. Any comment: The WHR plant commenced operation in February 2010
Data / Parameter: FC captive power plant,NG,year
Data unit: Nm 3
Description: Natural Gas consumption in the captive power plant for the electricity used in the project activity Source of data to be used: Internal records of Lucky Cement Value of data applied for the purpose of calculating expected emission reductions in section B.5
Year NG Consumption 2007 2008 51,564,262 2008 2009 78,490,821 2009 2010 86,893,165 Description of measurement methods and procedures to be applied: Data type: measured Archiving procedure: Paper and Electronic Recording Frequency: Monthly QA/QC procedures to be applied: QMS procedures will be followed in measuring, recording, and reporting of the parameter. Any comment:
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Data / Parameter: FC captive power plant,DI,year
Data unit: tons Description: Diesel consumption in the captive power plant for the electricity used in the project activity Source of data to be used: Internal records of Lucky Cement Value of data applied for the purpose of calculating expected emission reductions in section B.5
Year Disel Consumption (Litres) Disel Consumption (kg) 2007 2008 80,189 69,764 2008 2009 59,667 51,910 2009 2010 44,955 39,111 Description of measurement methods and procedures to be applied: Data type: measured Archiving procedure: Paper and Electronic Recording Frequency: Monthly QA/QC procedures to be applied: QMS procedures will be followed in measuring, recording, and reporting of the parameter. Any comment: Density of diesel has been taken as 0.87 kg/l
Data / Parameter: FC captive power plant,HFO,year
Data unit: tons Description: HFO consumption in the captive power plant for the electricity used in the project activity Source of data to be used: Internal records of Lucky Cement Value of data applied for the purpose of calculating expected emission reductions in section B.5
Year HFO Consumption 2007 2008 14,625 2008 2009 6,343 2009 2010 4,586 Description of measurement methods and procedures to be applied: Data type: measured Archiving procedure: Paper and Electronic Recording Frequency: Monthly QA/QC procedures to be applied: QMS procedures will be followed in measuring, recording, and reporting of the parameter. Any comment:
Data / Parameter: NCV HFO,year
Data unit: GJ/ton Description: Weighted average net calorific value of HFO used in the captive power plant in year y Source of data to be used: Supplier value Value of data applied 40.26 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: Net Calorific Value (NCV) of HFO will be provided by the supplier.
Data type: measured Archiving procedure: Paper and Electronic Recording Frequency: Each Delivery QA/QC procedures to be applied: QMS procedures will be followed in measuring, recording, and reporting of the parameter. Any comment:
Data / Parameter: NCV NG,year
Data unit: MJ/Nm 3
Description: Weighted average net calorific value of NG used in the captive power plant in year y Source of data to be used: Net Calorific Value (NCV) of the NG will be provided by the SNGPL in the monthly bill.
Value of data applied for the purpose of calculating expected emission reductions in section B.5 30.85 Description of measurement methods and procedures to be applied: Data type: measured Archiving procedure: Paper and Electronic Recording Frequency: Monthly QA/QC procedures to be applied: QMS procedures will be followed in measuring, recording, and reporting of the parameter. Any comment:
Data / Parameter: NCV DI,year
Data unit: MJ/l Description: Weighted average net calorific value of Diesel used in the captive power plant in year y Source of data to be used: Supplier value Value of data applied for the purpose of calculating expected emission reductions in section B.5 36.95 Description of measurement methods and procedures to be Net Calorific Value (NCV) of Diesel will be provided by the supplier.
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applied: Archiving procedure: Paper and Electronic Recording Frequency: Each Delivery QA/QC procedures to be applied: QMS procedures will be followed in measuring, recording, and reporting of the parameter. Any comment:
Data / Parameter: AVD y
Data unit: km Description: Average round trip distance (from and to) between the alternative fuel supply sites and the site of the project plant during the year y Source of data to be used: Internal records of Lucky Cement Limited Value of data applied for the purpose of calculating expected emission reductions in section B.5
95 Description of measurement methods and procedures to be applied: Data type: Recorded Archiving procedure: Paper and Electronic
QA/QC procedures to be applied: QMS procedures will be followed in recording & reporting of the parameter. Any comment:
Data / Parameter: EF km,CO2,y
Data unit: tCO 2 /km Description: Average CO 2 emission factor for the trucks measured during the year y Source of data to be used: This value is based on experience and knowledge of the project proponent. Value of data applied for the purpose of calculating expected emission reductions in section B.5 0.000394851 Description of measurement methods and procedures to be applied: Data type: Recorded Archiving procedure: Paper and Electronic Monitoring Frequency: Annually QA/QC procedures to be applied: The value of parameter shall be cross-checked with the information in the literature. QMS procedures will be followed in recording & reporting of the parameter. Any comment:
Data / Parameter: AF T,k,y
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during the year y. Source of data to be used: Internal records of Lucky Cement Limited Value of data applied for the purpose of calculating expected emission reductions in section B.5
Fuel Type Amount Tyre waste 153,214 RDF 63,608 Biomass Residues 43,836 Total 260,658 Description of measurement methods and procedures to be applied: Data type: Measured Recording Frequency: Upon each delivery QA/QC procedures to be applied: QMS procedures will be followed in recording & reporting of the parameter. Any comment:
Data / Parameter: TL y
Data unit: Tons Description: Average truck load of the trucks used during the year y Source of data to be used: Internal records of Lucky Cement Limited Value of data applied for the purpose of calculating expected emission reductions in section B.5 19 Description of measurement methods and procedures to be applied: Data type: Measured Recording Frequency: Upon each delivery QA/QC procedures to be applied: QMS procedures will be followed in recording & reporting of the parameter. Any comment:
Data / Parameter: P clinker,y
Data unit: tons Description: Production of clinker in year y Source of data to be used: Internal records of Lucky Cement Limited Value of data applied for the purpose of calculating expected emission reductions in section B.5 3,385,800 Description of Data type: Difference of cumulated values on energy meter PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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measurement methods and procedures to be applied: Monitoring Instrument: Kiln feed system Manufacturer: Schenck Model: Multicore S - 450 Range:0 300 TPH Accuracy of the Instrument: 99.90% (error 0.10%) Internal Calibration By: Instrument Department External Calibration By: None Calibration Frequency: Twice per year Calibration Standard: Schenck Standard Calibration and Procedure Recording Frequency: Daily Recording Type: Paper and Electronic QA/QC procedures to be applied: QMS procedures will be followed in measuring, recording, and reporting of the parameter. Any comment:
Data / Parameter: EF CO2,BL,y
Data unit: tCO 2 /GJ Description: Carbon dioxide emissions factor for the fossil fuels displaced by the use of alternative fuels in the project plant Source of data to be used: Calculated as follows as the lowest of the following CO 2 emission factors:
- The weighted average annual CO 2 emission factor for the fossil fuel(s) consumed and monitored ex ante during the most recent three years before the start of the project activity - The weighted average annual CO 2 emission factor of the fossil fuel(s) consumed in the project plant in year y that are not less carbon intensive fossil fuels Value of data applied for the purpose of calculating expected emission reductions in section B.5 0.0893 Description of measurement methods and procedures to be applied: Calculated as per step 2 of Baseline emissions calculation in the applied methodology. QA/QC procedures to be applied: QMS procedures will be followed in measuring, recording, and reporting of the parameter. Any comment:
Data / Parameter: FC BL,i,y
Data unit: Tons Description: Quantity of coal displaced in the project plant as a result of the project activity in year y Source of data to be used: Internal records of Lucky Cement Limited PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Value of data applied for the purpose of calculating expected emission reductions in section B.5 221,713 Description of measurement methods and procedures to be applied: Quantity of displaced coal shall be calculated based on heat input from the alternate fuels and NCV of coal. QA/QC procedures to be applied: QMS procedures will be followed in measuring, recording, and reporting of the parameter. Any comment: -
Data / Parameter: Biomass residue type k Data unit: Tons Description: Quantity of biomass residues of type k that are utilized (e.g. for energy generation or as feedstock) in the defined geographical region Source of data to be used: Surveys or statistics Value of data applied for the purpose of calculating expected emission reductions in section B.5 0 Description of measurement methods and procedures to be applied:
QA/QC procedures to be applied:
Any comment: Monitoring of this parameter is applicable if approach L 2 is used to rule out leakage
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B.7.2. Description of the monitoring plan:
All parameters such as, fossil fuel consumption, alternative fuel consumption, leakage emissions, fuel characteristics etc., will be monitored as per the requirements of the monitoring methodology defined in the ACM0003 / Version 07.4.
Lucky Cement has planned proper monitoring system for the project activity. This monitoring system has been explained in detail in this section.
At the production section, Plant Operators hourly collect data for clinker production, fossil fuel consumption and alternate fuel consumption at kilns E, F and G. Daily log sheet for production (Daily production report) is prepared by Senior Assistant Manager based on the data collected by the Plant Operators. The Production Report is initially verified by Deputy Managers of production section, and finally verified by Production Managers.
Data for electricity generation by power plant is collected by Engine Room Operator. Daily log sheet for electricity generation by the power plant is prepared by the Shift Engineer. Deputy Manager Operation does the initial verification of the data for electricity generation. This data is finally verified by the Manager Operations monthly.
The monitored data shall be audited internally by ISO representative after every six months.
Following Table B.7.2.1.shows designation of personnel involved in monitoring plan.
Table B.7.2.1: Designation of personnel involved in monitoring plan Parameter Item First Data Collection Daily Data Log Preparation Initial Data Verification Final Data Verification Clinker production Kiln Plant Operator (Hourly) Senior Assistant Manager Deputy Manager Production Manager Coal consumption Kiln Plant Operator (Hourly) Senior Assistant Manager Deputy Manager Production Manager Alternate Fuels consumption Kiln Plant Operator (Hourly) Senior Assistant Manager Deputy Manager Production Manager HFO consumption Kiln Plant Operator (Hourly) Senior Assistant Manager Deputy Manager Production Manager Power House Engine Room Operator Shift Engineer Deputy Manager Operation Manager Operation Natural gas consumption Power House Engine Room Operator Shift Engineer Deputy Manager Operation Manager Operation Electricity generation Power House Engine Room Operator Shift Engineer Deputy Manager Operation Manager Operation Electricity Consumption Power House Engine Room Operator Shift Engineer Deputy Manager Operation Manager Operation Cement Plant Shift Staff Office Assistant Deputy Manger Operation Senior Manager E/I
Reading is taken once a day in the morning shift
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Fuel Characteristics (NCV, and density) Coal Chemist Chemist Deputy Manager QC Plant Manager Alternate Fuels Transportation Quantity of AF Store Assistant Store In charge Store Assistant Store Manager Truck Load Store Assistant Store In charge Store Assistant Store Manager Distance Daily basis n/a Fleet Tracking Assistant Fleet Manager
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):
Date of Completion (DD/MM/YYYY): 10/01/2012
Table 11 - Name of Responsible Entities First Climate (Switzerland) AG Stauffacherstrasse 45 CH-8004 Zurich Switzerland URL: www.firstclimate.com Contact person: Mr.NikolausWohlgemuth Email: nikolaus.wolhlgemuth@firstclimate.com Carbon Services (Private) Limited 19 Davis Road,2nd Floor, Al Maalik, Lahore Pakistan URL: www.carbon.com.pk Contact person: Mr. Omar M. Malik Email: omar.malik@carbon.com.pk
Both First Climate (Switzerland) AG and Carbon Services (Private) Limited are project participants.
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:
November 23, 2010 15
C.1.2. Expected operational lifetime of the project activity:
20 years
C.2. Choice of the crediting period and related information:
C.2.1. Renewable crediting period:
C.2.1.1. Starting date of the first crediting period: N/A C.2.1.2. Length of the first crediting period: N/A
15 Date of signing of contract with equipment supplier for TDF (Eldan Recycling A/S) PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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C.2.2. Fixed crediting period:
C.2.2.1. Starting date:
Starting date of the crediting period is (01/07/2012) or date of submission to UNFCCC whichever occurs later.
C.2.2.2. Length: 10 years 0 months
SECTION D. Environmental impacts >>
D.1. Documentation on the analysis of the environmental impacts, including transboundary impacts:
No negative environmental impacts are to be considered, as the technology to be adopted is mature and safe, once appropriate operation and maintenance procedure are in place.
The environmental analyses conducted by Lucky Cement Limited for the project are consistent in demonstrating that the project activity is expected to remain fully compliant with NEQS (National Environmental Quality Standards). In fact, it is expected that pollutant emissions (both of local concern and global concern, such as CO 2 ) will reduce from the current levels.
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:
Neither the project participants nor the host Party have any concern about negative environmental impacts associated with the project activity, given that project activity aims at reducing the local and global environmental impacts of the industrial site where the project activity is to be implemented.
SECTION E. Stakeholders comments
E.1. Brief description how comments by local stakeholders have been invited and compiled:
The local stakeholders consultation meeting is a requirement by Designated National Authority (DNA) of CDM Pakistan, as well as it is required for the CDM PDD. The DNA issues Host Country Approval to the project participants after the stakeholders consultation meeting is conducted and all the evidences are provided to it.
Stakeholders were informed about the project activity through specific advertising published by the project owner in the local media (newspaper, public notice boards within and surrounding Lucky Cement Karachi Plant).
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The Stakeholder consultation meeting was held on May18, 2011 at Lucky Cement Limited Karachi Plant and was open to anybody willing to participate (private citizens, representatives of associations, interest groups, unions, public authorities, NGOs etc.).
The meeting was conducted by the representative of the project owner who explained in detail the project activity and stimulated the debate and the expression of comments.
E.2. Summary of the comments received:
Comments from the stakeholders were collected in written form during and after the meeting. These are summarized below in Table E.2.1: Summary of the Comments
Table E.2.1:Summary of the comments
Sr. No . Stakeholders Name Designation Qualificatio n Address Comments/Views about the Project 1.
Rasheed Ahmad Jokhio Land Lord Intermediate Village Saleh Muhammad Jokhio Goth KathoreGaddap Town. This Project is in the best interest of the region. Environment will become pleasant. It will create employment opportunities, will save fuel. People will be inclined towards getting education, also it will improve the lifestyle of the people 2.
Mujahid Ahmad Jokhio Land Lord/ Ex- Nazim UC2 M.A Political Science Village Raza Muhammad DarsanoChanoGadda p Town. The project will reduce environmental pollution and will increase employment opportunity to PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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the people. 3.
Niaz Ahmad Jokhio Land Lord B.A RaisWalidad Muhammad Goth, District Jamshoro, Hyderabad. The project will cause new employment opportunities for the people, which will eradicate unemployment . Environment will improve and the region will progress 4.
JiandSalarJokhi o Agriculture Primary Goth dodo Salar Bin Qasim Town. This project will enhance the business of local people. Region will progress economically and will help in wiping out unemployment . 5. A. GafoorBalouch Land Lord Intermediate SirajAhmed Village UC3 Gaddap Karachi This project will reduce environmental pollution in the region and will give better employment opportunities to the people. Economic progress will cause betterment for the area. 6. Qaisar Farmer/ Shopkeeper Matriculation Muhammad Ali Jokhio Goth Link Road, Koteroro. This project will not only provide employment to the local PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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people but also will be a source of environmental changes, which in turn will cause a positive change in the life style of the people. 7. ShabanJokhio Land Lord
Matriculation Goth WalidadLakhar, District Jamshoro This project will reduce environmental pollution in the region and will give better employment opportunities to the people. Economic progress will cause betterment for the area. 8. Salam Din Farmer
Matriculation RaisWalidadJokhio Goth, District Jamshoro, Hyderabad This project will reduce environmental pollution in the region and will give better employment opportunities to the people. Economic progress will cause betterment for the area. 9. Basheer Ahmed Khaskhaili Farmer/ Gardner Dumba Goth Super Highway, Malir Karachi This project will reduce environmental pollution in the region and PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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will give better employment opportunities to the people. Economic progress will cause betterment for the area. 10.
Badar-Ud-Deen Jokhio Farmer
Matriculation Kareem BukhshJokhio Village Bin Qasim Town Karachi. This project will reduce the amount of fuel used and people will be more inclined towards getting education. Prosperity in the region will improve the standard of living of the people. 11. Abdul Sattar Bukhshani Farmer Middle Damloti- No.8, Bukhshani, Goth Malir Karachi This project will reduce environmental pollution in the region and will give better employment opportunities to the people. Economic progress will cause betterment for the area. 12. Haji Abdul Majeed Lakhro Land Lord Matriculation P.O Jhunipur District, Thatha Sindh This project will enhance the business of PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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local people. Region will progress economically and will help in wiping out unemployment . 13. Ali Nawaz Bukhshani Farmer Intermediate Bukhsha Goth Damloti No.8, Malir Karachi This project will reduce environmental pollution in the region and will give better employment opportunities to the people. Economic progress will cause betterment for the area. 14. Muhammad Azeem Jokhio Farmer/Shopkeepe r Matriculation Ikhtyar Khan Jokhio Goth DarsanaChainoGadar This project will reduce environmental pollution in the region and will give better employment opportunities to the people. Economic progress will cause betterment for the area.
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E.3. Report on how due account was taken of any comments received:
All the comments received at the stakeholders meeting were expressing a positive opinion of the project. The personnel at Lucky Cement explained in detail the technical, environmental, and social consequences of substitution of alternate fuels for clinker production process. The stakeholders were informed that the project is fully in compliance with NEQS. It was also explained that in Lucky Cement Karachi Plant regular environmental audits are conducted by third parties. The stakeholders were satisfied, and were supportive to the project. In conclusion, no negative concerns were expressed by the stakeholders, which eventually expressed appreciation for initiative of Lucky Cement Limited.
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Annex 1
CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY
Organization: Lucky Cement Limited Street/P.O.Box: A. Aziz Hashim Tabba Street Building: 6-A M. Ali Housing Society City: Karachi State/Region: Sindh Postcode/ZIP: Country: Pakistan Telephone: +92-21-111 786 555 FAX: +92-21-34534302 E-Mail: info@lucky-cement.com URL: www.lucky-cement.com Represented by: Title: CEO Salutation: Mr. Last name: Tabba Middle name: First name: Muhammad Ali Department: Mobile: Direct FAX: Direct tel: Personal e-mail: malitabba@lucky-cement.com
Organization: First Climate (Switzerland) AG Street/P.O.Box: Stauffacherstr 45 Building: City: Zurich State/Region: Zurich Postcode/ZIP: 8004 Country: Switzerland Telephone: +41-44-298 2800 FAX: +41 44-298 2899 E-Mail: info@firstclimate.com URL: www.firstclimate.com Represented by: Title: Managing Director Salutation: Mr. Last name: Lchinger Middle name: First name: Alexander Department: Mobile: PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Direct FAX: +41-44-298 2899 Direct tel: +44-44-298 2807 Personal e-mail: alexander.luchinger@firstclimate.com
Organization: Carbon ServicesPrivateLimited Street/P.O.Box: 19 Davis Road Building: 2nd Floor, Al Maalik, City: Lahore State/Region: Punjab Postfix/ZIP: Country: Pakistan Telephone: +92-42-36313235 / 36313236 FAX: +92-42-36312959 E-Mail: URL: www.carbon.com.pk Represented by: Mr. Omar M. Malik Title: Director Salutation: Mr Last Name: Malik Middle Name: M First Name: Omar Department: Mobile: +92-300-8463743 Direct FAX: +92-42-36312959 Direct tel: +92-42-36313235 / 36313236 Personal E-Mail: omar.malik@carbon.com.pk
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Annex 2
INFORMATION REGARDING PUBLIC FUNDING
No Public Funding is involved in this project activity. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
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Annex 3
BASELINE INFORMATION
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