Zhonghang Tengjin CCPP PDF

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
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CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-PDD) Version 03 - in effect as of: 28 July 2006 CONTENTS A. B. C. D. E. General description of project activity Application of a baseline and monitoring methodology Duration of the project activity / crediting period Environmental impacts 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:
Project title: Zhonghang Tengjin Combined Cycle Power Plant Project PDD version: 2.0 Date of document: 24/08/2008
A.2.
Description of the project activity:
The Zhonghang Tengjin Combined Cycle Power Plant Project (the proposed project) is a new combined cycle power plant (CCPP) with the capacity of 65MW developed by Shanxi Zhonghang Tengjin Clean Energy Co., Ltd. (the developer) in Shanxi Province, China. The objective of the proposed project activity is to capture waste gasses from the steel-making and coking process and utilise these in the CCPP. The fuel fed to the CCPP will be blast-furnace gas (BFG) and coke oven gas (COG). Before the implementation of the proposed project, BFG and COG were flared and/or vented to the atmosphere. The CCPP will consist of one set of gas turbines (with associated fuel gas compressor and generator) and one set of steam turbines (with associated boiler and generator). The total capacity of the generator of the proposed project activity is 65MW. The project is estimated to supply 302,500MWh electricity per annum. The baseline scenario of the proposed project is the additional provision of comparable electricity generation by the North China Power Grid (NCPG). As the NCPG is dominated by the thermal power generation, the proposed project activity will achieve greenhouse gas (GHG) emission reductions by displacing fossil fuel generated electricity from NCPG. The ex-ante estimated annual emission reductions of this project are 300,322tCO2e. The proposed project promotes local sustainable development through the following aspects: Reducing greenhouse gas emissions in China compared to a business-as-usual scenario; Reducing other pollutants resulting from the power generation industry, compared to a business-asusual approach, such as SO2, NOx and soot; Creating local employment opportunity during the construction and for operation of the proposed project. Project participants: Private and/or public entity(ies) project participants (as applicable) Shanxi Zhonghang Tengjin Clean Energy Co., Ltd. Carbon Resource Management Ltd. Party involved wishes to be considered as project participant (Yes/No) No No
A.3.
Name of Party involved P.R. China (host) United Kingdom of Great Britain and Northern Ireland
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A.4.
Technical description of the project activity: A.4.1. Location of the project activity: A.4.1.1. Host Party(ies):
Peoples Republic of China A.4.1.2. Shanxi Province A.4.1.3. Jiaocheng City
Region/State/Province etc.:
City/Town/Community etc.:
A.4.1.4. Details of physical location, including information allowing the unique identification of this project activity (maximum one page): The proposed project is located in east of Jiaocheng city, Shanxi province with the co-ordinates of longitude 1121527 East and latitude 373446 North. The distance between Jiaocheng City and project site is around 6 km. Figure 1 The location of the proposed project activity in Shanxi Province. Project site
A.4.2. Category(ies) of project activity: Sectoral Scope 1: Energy industries (Sectoral Scope 4: Manufacturing industries) A.4.3. Technology to be employed by the project activity:
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The proposed project activity consists of the installation of one set of gas turbine-generator and one set of steam turbine-generator with a total installed capacity of 65MW. And the estimated annual supplied electricity is 302,500MWh. A new substation is to be built. The power generation from the proposed project will then send to Meijin Energy Group through this substation by 110kV transmission line. Details of the CCPP process are illustrated in the figure below. Figure 2 Diagram of CCPP process
Gas Clean
COG BFG Steam turbine and generator
Generation
Compressor
Gas turbine and generator
Exhaust Air
Boiler
Generation
In the process, COG gas will be fed into an advanced industrial gas-fired turbine after the process of gas clean to achieve low dust content gas and pressurizing process in a compressor to obtain high pressure. Then the high-temperature exhaust gases from the gas turbine are further conveyed to a gas-fired boiler with the blast furnace gas (BFG) to drive steam turbine to generate electricity. The CCPP, which combines a gas turbine and a steam turbine, will be more efficient compared to the conventional power generation. The baseline scenario of the proposed project is the additional provision of comparable electricity generation by the North China Power Grid (NCPG). As the NCPG is dominated by the thermal power generation, the proposed project activity will achieve greenhouse gas (GHG) emission reductions by displacing fossil fuel generated electricity from NCPG.
The main equipments used in the proposed project activity are listed in Table 1 below.
Table 1 The main technology parameters of the main equipments of the project Equipment Parameter Value Type QD-100A Gas-fired turbine Heat-consumed rate (LHV) 11492 kJ/kWh
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Gas-fired generator
Boiler
Exhausting flux Exhausting Temperature Efficiency of turbine Type The rated power The rated voltage The rotate speed The power factor Type The rated transpiration quantity The rated steam pressure The rated steam temperature Guarantee efficiency of boiler Type The rated power The income steam pressure The income steam temperature Type The rated power The rated voltage The rated rotate speed The power factor The rated frequency
43 kg/s 4730C 31.33 % QFW-12 15MW 10.5kv 3000r/min 0.8 JG-170/9.8-Q D=170t/h P=9.8 Mpa Tgr=540 0C =93 % N50-8.83/535 50 MW 8.83 MPa(a) Tgr=535 0C QF-50-2 50 MW 10.5 kV 3000 r/min 0.8 50 HZ
Steam Turbine
Generator
A.4.4. Estimated amount of emission reductions over the chosen crediting period: The ex-ante estimated average annual emission reductions over the crediting period of the project are as follows: Table 2 Estimated emission reductions from the proposed project activity Period Estimated emission reductions (tCO2e) 2009 300,322 2010 300,322 2011 300,322 2012 300,322 2013 300,322 2014 300,322 2015 300,322 2016 300,322 2017 300,322 2018 300,322 Total estimated reductions(tCO2e) 3,003,220 Total number of crediting years 10 Annual average over the crediting 300,322 period of estimated reductions
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(tCO2e) . Note: The full year is from Jan 01 to Dec 31. The baseline emissions factor has been fixed in the crediting period. The amount of CERs actually generated by the project will vary based on the metered power supply of the project. A.4.5. Public funding of the project activity: There is no public funding from Annex I Parties for this project. SECTION B. Application of a baseline and monitoring methodology B.1. Title and reference of the approved baseline and monitoring methodology applied to the project activity: Title of baseline and monitoring methodology: ACM0012 Consolidated baseline methodology for GHG emission reductions for waste gas or waste heat or waste pressure based energy system Version 03 (Valid from 16 Aug 2008 onwards) Tools referenced in this methodology: Approved methodology ACM0012 prescribes the use of the latest version of the Tool for the demonstration and assessment of additionality (version 05, 26 May, 2008) and the Tool to calculate the emission factor for an electricity system (version 01, 19 October, 2007).
B.2. Justification of the choice of the methodology and why it is applicable to the project activity: The project activity utilizes waste gas as an energy source for generation of electricity. Therefore, ACM0012 is applicable to the proposed project activity under the following conditions: Table 3 Methodology applicability assessment Conditions Assessment All the COG and BFG from Meijin 1. The consolidated methodology is for project activities Energy Group which are utilized for Type-1: All the waste energy in electricity generation in the project activity would be flared to atmosphere identified WECM stream/s, which will be utilized in the project activity, after incineration in the absence of the is, or would be flared or released to project atmosphere in the absence of the project activity at the existing or new facility. The waste energy is as an energy source for: Cogeneration; or Generation of electricity; or
Applicability Applicable
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Direct use as process heat source; or For generation of heat in element process (e.g. steam, hot water, hot oil, hot air); For generation of mechanical energy 2. If project activity is use of waste pressure to generate electricity, electricity generated using waste gas pressure should be measurable. 3. Energy generated in the project activity may be used within the industrial facility or exported outside the industrial facility. 4. The electricity generated in the project activity may be exported to the grid or used for captive purposes. 5. Energy in the project activity can be generated by the owner of the industrial facility producing the waste energy or by a third party (e.g. ESCO) within the industrial facility. 6. Regulations do not constrain the industrial facility generating waste gas from using the fossil fuels being used prior to the implementation of the project activity. 7. The methodology covers both new and existing facilities. For existing facilities, the methodology applies to existing capacity. If capacity expansion is planned, the added capacity must be treated as a new facility. 8. The emission reductions are claimed by the generator of energy using waste energy.
The proposed project activity does not involve the use of waste pressure.
Applicable
Energy generated in the project activity is used within the industrial facility (Meijin Energy Group) through the facilitys internal grid. The electricity generated in the proposed project activity is imported to Meijin Energy Group The energy is generated by the Shanxi Zhonghang Tengjin Clean Energy Co., Ltd., which is a third party within the industrial facility. Regulations do not constrain the Meijin Energy Group generating waste gas from using the fossil fuels.
Applicable
Applicable
Applicable
Applicable
The proposed project activity is the implementation of a new CCPP project.
Applicable
The emission reductions of the project are claimed by Shanxi Zhonghang Tengjin Clean Energy Co., Ltd., which is the generator of energy using waste gas.
Applicable
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9. In cases where the energy is
exported to other facilities, an official agreement exists between the owners of the project energy generation plant (henceforth referred to as generator, unless specified otherwise) with the recipient plant(s) that the emission reductions would not be claimed by recipient plant(s) for using a zeroemission energy source.
The Shanxi Zhonghang Tengjin Clean Energy Co., Ltd, the developer of the proposed project, has signed an official agreement with Meijin Energy Group. The emission reductions of the project would not be claimed by Meijin Energy Group.
Applicable
10. For those facilities and recipients, included in the project boundary, that prior to implementation of the project activity (current situation) generated energy on-site (sources of energy in the baseline), the credits can be claimed for minimum of the following time periods: the remaining lifetime of equipments currently being used; and credit period. 11. Waste energy that is released under abnormal operation (for example, emergencies, shut down) of the plant shall not be accounted for.
Before the implementation of the project, the Meijin Energy Group purchases electricity entirely from the North China Power Grid. Therefore the electricity generated from the project will displace the electricity from the North China Power Grid. The remaining lifetime of the equipments currently being used is more than 10 years, which is longer than the fixed 10year credit period.
Credits will not be claimed under abnormal operation (for example, emergencies, shut down) by the project developer.
Applicable
Applicable
B.3.
Description of the sources and gases included in the project boundary:
Spatial boundary According to ACM0012 and the Tools referred to in this methodology, the spatial extent of the project boundary includes the following: 1. The industrial facility where waste energy is generated, including the part of the industrial facility where the waste gas was utilized for generation of captive electricity prior to implementation of the project activity. For the proposed project, the industrial facilities where waste gas generated are Blast Furnace and Coke Oven in Meijin Energy Group. The facility where process heat in element process/steam/electricity is generated (generator of process heat/steam/electricity). Equipment providing auxiliary heat to the waste heat recovery process shall be included within the project boundary For the proposed project, the facility generated electricity is the CCPP which includes the boiler, turbines, generators and auxiliary equipment.
2.
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3.
The facility/s where the process heat in element process/steam/electricity/mechanical is used (the recipient plant(s)) and/or grid where electricity is exported, if applicable The electricity generated by the proposed project is imported to Meijin Energy Group. As the internal electricity system of Meijin Energy Group is connected to the North China Power Grid, the North China Power Grid is also included in the spatial extent of the project boundary. Based on Tool to calculate the emission factor for an electricity system, the spatial extent of the project electricity system is the power plants that are physically connected through transmission and distribution lines to the project activity and that can be dispatched without significant transmission constraints. Using the boundary definitions of the Chinese DNA1, NCPG consists of Shandong, Beijing, Tianjin, Hebei, Shanxi, and Inner Mongolia power grids. The electricity transmission between different provinces in NCPG is very large and it is reasonable for the project to regard NCPG as the project boundary.
Emission sources According to the approved methodology ACM0012, the emission sources and GHGs in the project boundary are as follows: Table 4 Sources and gases in the project boundary Source Gas Included? CO2 Yes Baseline Grid CH4 No N2O No CO No 2 Supplemental fossil fuel consumption at the project plant Project activity Supplemental generation consumption at the project plant Project emissions from cleaning of gas CH4 N2O CO2 CH4 N2O CO2 CH4 N2O No No No No No Yes No No
Justification / Explanation Main emission resource Excluded for simplification. Excluded for simplification. Excluded for simplification. Excluded for simplification. Excluded for simplification. Excluded for simplification. Excluded for simplification. Excluded for simplification. Waste gas cleaning is required Excluded for simplification. Excluded for simplification.
B.4. Description of how the baseline scenario is identified and description of the identified baseline scenario: According to ACM0012 v03, the baseline scenario is identified as the most plausible baseline scenario among all realistic and credible alternative(s), as follows: Step 1: Define the most plausible baseline scenario for the generation of heat and electricity using the
Chinese DNA designates it at http://cdm.ccchina.gov.cn/WebSite/CDM/UpFile/2006/2006121591135575.pdf.
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following baseline options and combinations. The project proponent has identified and evaluated all the realistic and credible alternatives for the utilisation of the COG and BFG to generate of power. The analysis of all the alternatives is presented in Table 5 below. Table 5 Baseline scenario analysis Option Description W1
WECM is directly vented to atmosphere without incineration or waste heat is released to the atmosphere or waste pressure energy is not utilized; WECM is released to the atmosphere (for example after incineration) or waste heat is released to the atmosphere or waste pressure energy is not utilized; Waste energy is sold as an energy source;
Credibility The use of waste energy This does not comply with legal requirements. The waste gas from the facility can only be released after incineration, according to the legal requirements. Therefore direct venting of waste gas to the atmosphere without incineration is not an option.
Conclusion Not a part of baseline
W2
This is current practice/business as usual. Prior to the implementation of the proposed project activity, the facility releases the waste gas after incineration (flaring). This is in compliance with all the legal and regulatory requirements and can be a part of the baseline.
A part of baseline
W3
W4
Waste energy is used for meeting
As part of their local contributions, Meijin Energy Group supplies COG as fuel to households in Qingxu City. The volume of gas supplied is about 20,000 Nm3/h. The volume of gas supply has been stable over the long term and the supply areas will not be enlarged. Besides, expansion of COG supply requires the installation of additional pipelines, which would involve high cost and give a low return. Therefore, expansion of COG supply is very unlikely. There is no user for BFG near the facility, and no people or enterprises have the intention to purchase BFG because of its low calorific value. Therefore, this alternative can not be considered as a realistic and credible alternative for the project proponent in the absence of the project activity. This is the project scenario. The waste gas can be used for meeting the
Not a part of baseline
Not a part of
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energy demand;
W5
W6
A portion of the waste gas produced at the facility is captured and used for captive electricity generation, while the rest of the waste gas produced at the facility is vented/flared; All the waste gas produced at the industrial facility is captured and used for export electricity generation.
energy demand as in the project activity. However this alternative would face financial barrier that the project activity is facing (please refer to Section B.5 for details). Therefore in the absence of CDM revenue, this alternative can not be considered as a realistic and credible alternative for the project proponent. The waste gas can be used for captive electricity generation in the project activity. However this alternative would face financial barriers that the project activity is facing (please refer to Section B.5 for details). Therefore in the absence of CDM revenue, this alternative can not be considered as a realistic and credible alternative for the project proponent. It is not a realistic and credible scenario.
baseline
P1
Proposed project activity not undertaken as a CDM project activity
P2
On site or off site existing/new fossil fuel powered cogeneration plant On site or off site existing/new renewable energy based cogeneration plant
P3
The waste gas can be used for captive electricity generation in the project activity. However this alternative would face financial barrier that the project activity is facing (please refer to Section B.5 for details). Therefore in the absence of CDM revenue, this alternative can not be considered as a realistic and credible alternative for the project proponent. Power generation This is the project scenario. In the absence of the proposed project activity, the heat content of the waste gas could be used for power generation. However this alternative would face financial barrier that the project activity is facing (please refer to Section B.5 for details). Therefore in the absence of CDM revenue, this alternative can not be considered as a realistic and credible alternative for the project. The project proponent and Meijin Energy Group do not have any requirement for steam. Therefore installation of a fossil fuel powered cogeneration plant in the absence of the project activity is not a realistic and credible alternative for the project proponent. The project proponent does not have any requirement for steam. Therefore installation of a renewable energy based cogeneration plant in the absence of the project activity is not a realistic and credible alternative for the project proponent. Furthermore, renewable energy based energy generation system is not a prevailing practice in the region because of limited availability of renewable
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P4
On site or off site existing/new fossil fuel based existing captive or identified plant.
P5
P6
On site or off site existing/new renewable energy or other waste energy based existing captive or identified plant. Sourced gridconnected power plants
resources. A conventional fossil fuel fired power plant of the required size for the facility does not comply with the legal framework. According to Chinese regulations, coal-fired power plants of less than 135MW are prohibited from being built in areas covered by the large grids such as provincial grids2.As the facility only requires a capacity of 65MW, this alternative is not a legally possible option. The availability of renewable resources near the proposed project activity is limited.
P7
P8
This is current practice/business as usual. The industrial facility currently imports its power requirements from the grid. This alternative is in compliance with all the legal and regulatory requirements and can be a part of the baseline. Therefore this alternative is considered further for the determination of baseline scenario for the project activity under consideration. Captive Electricity As discussed above, utilization of the heat content of generation using the waste gas for power generation is not a realistic waste energy (if and credible alternative for the project proponent project activity is considering the investment related risks and barriers captive generation associated with the project activity (please refer to using waste Section B.5 for details). energy, this Furthermore, captive electricity generation from waste scenario gas with lower efficiency results in less electricity and represents captive generation lower revenue, and will be economically less attractive than alternative P1. with lower efficiency than the project activity); Cogeneration The project activity is not a cogeneration project using waste using waste energy, this scenario represents energy (if project cogeneration with lower efficiency than the project activity is activity, and therefore, it cant be accepted by the cogeneration with developer. waste energy, this So, it is not a realistic and credible scenario. scenario
A part of baseline
Notice on Strictly Prohibiting the Installation of Fuel fired Generators with the Capacity of 135MW or below issued by the General Office of the State Council, Decree No. 2002-6.
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P9
P10
represents cogeneration with lower efficiency than the project activity); Existing power generating equipment ( used previous to implementation of project activity for captive electricity generation from a captured portion of waste gas) is either decommissioned to build new more efficient and larger capacity plant or modified or expanded (by installing new equipment), and resulting in higher efficiency, to produce and only export electricity generated from waste gas. The electricity generated by existing equipment for captive consumption is now imported from the grid. Existing power generating equipment (used previous to implementation of project activity for captive electricity generation from a captured portion of waste gas) is either decommissioned
There is no existing power generating plants at the project site, therefore utilizing existing decommissioned power generation equipment to build new more efficient and larger captivity plant (or modified plant or expanded plant ) is not applicable. Therefore, it is not a realistic and credible scenario.
There is no existing power generating plants at the project site, therefore utilizing existing decommissioned power generation equipment to build new more efficient and larger captivity plant (or modified plant or expanded plant ) is not applicable. Therefore, it is not a realistic and credible scenario.
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P11
to build new more efficient and larger capacity plant or modified or expanded (by installing new equipment), and resulting in higher efficiency, to produce electricity from waste gas (already utilized portion plus the portion flared/vented) for own consumption and for export. Existing power generating equipment is maintained and additional electricity generated by grid connected power plants.
There is no existing power generating equipments at the project site.
Heat generation The proposed project activity utilises the waste gas from coke and steel production to generate electricity only. So the analysis for heat generation is not applicable. Mechanical energy The proposed project activity utilises the waste gas from coke and steel production to generate electricity only. So the analysis for mechanical energy is not applicable. From the above evaluation, it can be concluded that in the absence of the project activity, the realistic and creditable alternative is: Table 6 The realistic and creditable alternative of the project Baseline alternatives Scenario Description of Alternatives Waste energy Power The proposed project activity utilises waste gas from coke and steel production to generate electricity. The waste gas would have been released after incineration (flaring) without the implementation of the proposed project. The electricity output of 1 W2 P6 the proposed project activity would have been generated in power plants connected to the grid where the plant is connected. This alternative is in compliance with all the legal and regulatory requirements and reflects the current practice/business as usual, and can be part of the baseline. Therefore this alternative is
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considered further for determination of baseline scenario for the project activity under consideration. Step 2: Identify the fuel for the baseline choice of energy source taking into account the national and/or sectoral policies as applicable. This step demonstrates that the identified baseline choice of energy source is available in abundance in the host country and there is no supply constraint taking into account the national and sectional policies. The energy source chosen in the baseline is electricity from the grid. Power generation capacity in China is rapidly expanding to supply the growing demand. Grid power consists of power generated from a range of different sources, including fossil fuels, nuclear and renewable resources, thus avoiding supply constraints. Therefore, the identified alternative (alternative 1) is a realistic and creditable alternative for the proposed project activity. Step 3: Step 2 and/or step 3 of the latest approved version of the Tool for the demonstration and assessment of additionality shall be used to identify the most plausible baseline scenarios by eliminating non-feasible options. This step identifies the most plausible baseline scenarios by eliminating unfeasible options (e.g. alternatives where barriers are prohibitive or which are clearly economically unattractive). The analysis above shows that the baseline scenario is the combination of W2 and P6, which is waste gases venting to the open air after incineration and electricity provided by the NCPG. The project scenario is a combination of W4 and P1, which is the utilization of waste gas for power generation only. Section B.5 provides the detailed assessment following Step 2 of the latest approved version of the additionality tool. The investment analysis shows that the IRR (after tax) for the project scenario (combination of baseline option W4 and P1) is only 6%, which is below the benchmark of 12%. Therefore, this combination is not financially attractive compared to the benchmark or baseline scenario (W2 and P6), and hence is excluded as not plausible. While CERs revenue is taken into consideration, the IRR will increase would increase to 16.94%, which is above the benchmark. Therefore, only the baseline scenario combination identified in Table 7 in Step 1 above, consisting of baseline options W2 and P6, is plausible. STEP 4: If more than one credible and plausible alternative scenario remain, the alternative with the lowest baseline emissions shall be considered as the most likely baseline scenario. There is only one plausible alternative scenario, so this step is not necessary. Conclusion Based on the above analysis, only one credible and plausible alternative scenario remains. The
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baseline scenario matrix of the project activity is shown in Table 7 above. B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the registered CDM project activity (assessment and demonstration of additionality): As mentioned above, the proposed project is not financially attractive because the IRR of this project is lower than the benchmark. However, the project owner considered CDM revenue from the very beginning of project implementation, as mentioned in feasible study report (FSR), CDM revenue will help to overcome the investment barrier of this project. Also a Decision Memo is made by the Board of Director regarding CDM development and the Emission Reduction Purchase Agreement (ERPA) had already been signed with Carbon Resource Management (CRM). According to the approved methodology ACM0012, the additionality will be demonstrated and assessed through latest version of the Tool for the demonstration and assessment of additionality agreed by the Executive Board, which follows the steps below. Step 1. Identification of alternatives to the project activity consistent with current laws and regulations Sub-step 1a. Define alternatives to the project activity: A full list of alternatives (W1 to W6 for the treatment of waste energy, and P1 to P11 for power generation) to the proposed project activity were identified in the Section B.4 above and summarised in Table 6. The identified plausible alternatives are W2, flaring of waste gas (baseline scenario), and W4, the utilisation of waste gas for power generation (project scenario), P1, the generation of power from waste gas (project scenario) and P6, import of electricity from the grid (baseline scenario). Table 7 summarises the baseline scenario, W2 and P6. Sub-step 1b. Consistency with mandatory laws and regulations: All alternatives except W1 and P4 comply with laws and regulations. Step 2. Investment analysis The purpose of this step is to determine whether the proposed project activity is economically or financially less attractive than other alternatives without the revenue from the sale of certified emission reductions (CERs). To conduct the investment analysis, the following sub-steps are used: Sub-step 2a. Determine appropriate analysis method Three analysis methods can be used according to the Tool for the demonstration and assessment of additionality for the investment analysis: simple cost analysis (Option I), investment comparison analysis (Option II) and benchmark analysis (Option III). The simple cost analysis method can be used if the project activity generates no financial or economic
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benefits other than CDM related income. However, this option is not applicable to the project because the project activity will generate economic benefits from the sale of electricity generation. The investment comparison analysis method can only be used if the project and the alternatives to the project activity are all investment projects. However, this option is not applicable to the project because the alternative to the project activity is waste gas released to the atmosphere after incineration and equivalent annual electricity supplied by NCPG, this alternative isnt a new investment project. Therefore, the only applicable analysis method to the project is benchmark analysis (Option III). Sub-step 2b Option III. Apply benchmark analysis According to the Economical assessment and parameters for construction project, 3rd edition3, a project will be financially acceptable when the financial Internal Return Rate (IRR) is better than the benchmark IRR. The benchmark project IRR for the iron and steel industry is 12%. It is approved by Chinese NDRC, and is widely accepted. Sub-step 2c. Calculation and comparison of financial indicators: All relevant data shown in Table 8 for financial analysis is based on the Feasibility Study Report. Table 7 Relevant indicators for financial assessment Item Installed capacity Supplied power to the grid Total investment Expected operational lifetime Value added tax rate Income tax rate Additional tax rate Assumed CERs price
Value 65 MW 302,500 MWh/year 293,853.3 thousand Yuan 18 years 17% 33% 10% 10 /t CO2e
Table 8 shows the IRR of the proposed project activity without and with CER revenue. It can be seen that IRR without CER revenue is below the benchmark 8% and with revenue from CDM at the assumed price level, the proposed project would be more financially attractive. Table 8 Total investment analysis of the proposed project IRR With CERs without CERs 6% 16.9% Note: CERs price assumed to be EUR 10 / CERs.
Benchmark 12%
The revenue from the sale of CERs is expected to have a significant impact on the IRR. Although some uncertainties still exist, investors would gain reasonable financial return to
3
China Planning Press, 2006, ISBN 7-80058-286-8.
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reduce the risk. And the internal return rates, 16.9% for total investments, would appear more financially attractive for prospective investors. Therefore, the registration of the proposed project activity as a CDM project activity will help the developer to overcome the financial barrier. Sub-step 2d. Sensitivity analysis A sensitivity analysis is used to show whether the conclusion regarding the financial attractiveness is robust to reasonable variations in the critical assumptions, the result of the sensitivity analysis is shown in Figure 3. The most important parameters impacting the IRR are: Total investment Annual Operation and Maintenance costs On-grid tariff Generation
In the sensitivity analysis, variations of 10% have been considered in these most important parameters. The results of the sensitivity analysis for the IRR are shown in Figure 3. Figure 3 Sensitivity analysis result
It can be concluded from the sensitivity analysis that the project is not financially attractive compared with the appropriate benchmark without additional CER revenue for any plausible variation in the critical parameters. Even with 10% variations of the most critical parameters determining the IRR, IRR will not exceed 12%. Therefore, the project remains commercially less attractive without the revenues from the sale of CERs in comparison with the identified baseline scenario. . The financial analysis shows that the project is not the most financially attractive alternative, and the sensitivity analysis shows that it is unlikely to be financially attractive compared to the benchmark under any reasonable variations in the assumptions. However, the revenue from the CERs will greatly improve the financial feasibility of the proposed project, and it will also
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improve the ability to hedge risks. If after the sensitivity analysis it is concluded that the proposed CDM project activity is unlikely to be the most financially attractive (as per step 2c para 8a) or is unlikely to be financially attractive (as per step 2c para 8b), then proceed to Step 3 (Barrier analysis) or Step 4 (Common practice analysis). The financial analysis clearly shows that the project is not the most financially attractive alternative, and that it is unlikely to be financially attractive under reasonable variations in the assumptions, therefore the project is additional. The project participants chose to proceed to Step 4. Step 4. Common practice analysis Sub-step 4a. Analyze other activities similar to the project activity: The similar project in Shanxi Province is: Table 9 The similar projects in Shanxi province Installed Capacity 113MW Start date 2007.03 Comments Applying for CDM
Project name Shanxi Xiaoyi Waste Gas Combined Cycle Power Generation Project4
Sub-step 4b. Discuss any similar options that are occurring: There is only one CCPP project using COG (and BFG) in Shanxi province. And this project had also applied CDM to overcome financial and technological barriers. In conclusion, without support from CDM revenue, the proposed project activity is financially unattractive and will not occur. Therefore, this analysis has shown that the project activity is additional. If Sub-steps 4a and 4b are satisfied, i.e. similar activities cannot be observed or similar activities are observed, but essential distinctions between the project activity and similar activities can reasonably be explained, then the project activity is additional. In conclusion, all the steps above are satisfied, the proposed CDM project is not the baseline scenario, so the project activity is additional.
http://cdm.unfccc.int/Projects/DB/DNV-CUK1204706185.39/view
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B.6.
Emission reductions: B.6.1. Explanation of methodological choices:
Baseline Emissions The baseline emissions for the year y are determined as follows: BEy = BEEn,y + BEflst,y (ACM0012: 1)5
Where: BEy are total baseline emissions during the year y in tonnes of CO2; BEEn,y are baseline emissions from energy generated by the project activity during the year y in tonnes of CO2, and; BEflst,y are baseline emissions from steam generation, if any, using fossil fuel, that would have been used for flaring the waste gas in the absence of the project activity (tCO2e per year). This is relevant for those project activities where in the baseline steam is used to flare the waste gas. There is no generation of steam for flaring the waste gas in the absence of the project activity. Therefore BEflst,y = 0 and thus BEy = BEEn,y Baseline emissions for Scenario 1 The calculation of baseline emissions from energy generated by the project activity during the year y in tonnes of CO2 (BEEn,y) depends on the identified baseline scenario. As discussed in section B.4. The baseline scenario of the proposed project activity corresponds to the scenario 1 of ACM0012: the electricity is obtained from NCPG. The baseline emissions for scenario 1 are calculated as follows: BEEn,y = BEElec,y + BETher,y (ACM0012: 1a)
Where: BEElec,y are baseline emissions from electricity during the year y in tonnes of CO2, and; BETher,y are baseline emissions from thermal energy (due to heat generation by element process) during the year y in tonnes of CO2. The proposed project activity is for generation of electricity only, therefore BETher,y is zero and equation (1a) can be simplified as: BEEn,y = BEElec,y a) Baseline emissions from electricity The baseline emission from electricity that is displaced by the project activity is calculated as follows: (1a-simplified)
Using the formula numbers of ACM0012 or the tool as indicated.
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BEElec,y = fcap * fwcm * j i (EGi,j,y * EFElec,i,j,y)
(ACM0012: 1a-1)
Where: BEElec,y are baseline emission due to displacement of electricity during the year y in tonnes of CO2; EGi,j,y is the quantity of electricity supplied to the recipient j by generator, which in the absence of the project activity would have been sourced from source i during the year y in MWh (i can be either grid or identified source, in the case of the proposed project activity, i is the grid); EFEleci,j,y is the CO2 emission factor for the electricity source i (grid), displaced due to the project activity, during the year y in tonnes of CO2/MWh; is the fraction of total electricity generated by the project activity using waste energy. This fwcm fraction is 1 if the electricity generation is purely from use of waste energy. If the boiler providing steam for electricity generation uses both waste and fossil fuels, this factor is estimated using equation (1d). If the steam used for generation of the electricity is produced in dedicated boilers but supplied through common header, this factor is estimated using equation (1d/1e). Note: For project activity using waste pressure to generate electricity, electricity generated from waste pressure use should be measurable and this fraction is 1. fcap is energy that would have been produced in project year y using waste gas generated in base year expressed as a fraction of total energy produced using waste gas in year y. The ratio is 1 if the waste gas generated in the project year y is the same or less then that generated in base year. The value is estimated using equation (1f) and (1f-1). The electricity generation of the project is purely from the utilisation of waste gas. Therefore, according to the explanation of formula (1a-1), formula (1d) and (1d-1), the value of fwcm is 1. Capping of baseline emissions As an introduction of element of conservativeness, this methodology requires that baseline emissions should be capped irrespective of planned/unplanned or actual increase in output of plant, change in operational parameters and practices, change in fuels type and quantity resulting into increase in waste gas generation. In case of planned expansion a separate CDM project should be registered for additional capacity. According to the methodology and the project condition, method 2 is used for the calculation of fcap. Method-2: The manufacturers data for the industrial facility is used to estimate the amount of waste gas the industrial facility generates per unit of product generated by the process that generates waste gas (either product of departmental process or product of entire plant, whichever is more justifiable and accurate). In case any modification is carried out by project proponent or in case the manufacturers data is not available for an assessment should be carried out by independent qualified/certified external process experts such as a chartered engineer on a conservative quantity of waste gas generated by plant per unit of product manufactured by the process generating waste gas. The value arrived based on above sources of data, shall be used to estimate the baseline cap (fcap). The documentation of this assessment shall be verified by the validating DOE. Under this method, following equations should be used to estimate fcap: fcap = QWG,BL / QWG,y (ACM0012: 1f)
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QWG,BL = QBL,product qWG,product
(ACM0012: 1f-1)
Where: QWG,BL is the quantity of waste gas generated prior to the start of the project activity estimated using equation 1f-1 (Nm3); QBL,product is the production by process that most logically relates to waste gas generation in baseline. This is estimated based on 3 years average prior to start of project activity; qwg,product is the amount of waste gas/heat/pressure the industrial facility generates per unit of product generated by the process that generates waste gas/heat/pressure. Because the generation of waste gas in the industrial facility will not be impacted by the proposed project activity, it is expected that the volume of waste gas in year y will not increase. Therefore, the value of the fcap, as determined in the relevant section below using formulae (1f) and (1f-1) above, is expected to be 1. Calculation of the grid emissions factor The displaced electricity for the recipient facility is supplied by the grid, NCPG, the CO2 emission factor of the electricity, EFELEC,grid,j,y is determined following the guidance in the Tool to calculate the emission factor for an electricity system. The project participants therefore apply the six steps from the tool. Step 1. Identify the relevant electric power system The proposed project activity is connected, through the internal electricity grid of Meijin Energy Group, to the Shanxi Provincial Grid, which is part of the North China Power Grid. Based on the definitions in the tool, the spatial extent of the project electricity system is the power plants that are physically connected through transmission and distribution lines to the project activity and that can be dispatched without significant transmission constraints. In line with this definition, and using the boundary definitions of the Chinese DNA6, NCPG consists of Shandong, Beijing, Tianjin, Hebei, Shanxi, and Inner Mongolia power grids. The electricity transmission between different provinces in NCPG is very large and it is reasonable for the project to regard NCPG as the project boundary. The connected electricity system is the Northeast Power Grid (NEPG) and Central China Power Grid (CCPG). The Northeast Power Grid (NEPG) consists of three provincial grids: Jilin, Liaoning and Heilongjiang. The Central China Power Grid (CCPG) consists of six provincial grids: Jiangxi, Hunan, Hubei, Henan, Sichuan, Chongqing. For the purpose of determining the operating margin, the emission factors of imports are taken into consideration. The CO2 emission factor for net electricity imports (EFgrid,import,y) from the connected electricity system should be determined using one of the following options: (a) 0 tCO2/MWh, or (b) The weighted average operating margin (OM) emission rate of the exporting grid, or (c) The simple operating margin emission rate of the exporting grid, if the conditions for this method apply to the exporting grid; or
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(d) The simple adjusted operating margin emission rate of the exporting grid. Option (b) is selected to calculate the CO2 emission factor(s) for net electricity imports (EFgrid,import,y), determined as described in step 3 (d) of the tool. The values of the emission factor as determined and published by the Chinese DNA are used for the imports. Step 2. Select an operating margin (OM) method According to the tool, the calculation of the operating margin emission factor (EFgrid,OM,y) is based on one of the following methods: a) Simple OM; b) Simple adjusted OM; c) Dispatch data analysis OM; d) Average OM Any of the four methods can be used by the project participants, however, the Simple OM method (option a) can only be used if low-cost/must-run resources constitute less than 50% of total grid generation in average of the five most recent years. Option a is selected by the project participants. The Simple OM method is applicable, as generation from all sources (including hydro power) other than thermal plants were less than 1% of total generation in NCPG in each of the last 5 years (see annex 3). The Simple OM emissions factor can be calculated using either ex-ante or ex-post data vintages. The project proponents have chosen to use the ex-ante option, and EFgrid,OM,y is fixed for the duration of the first crediting period:
Ex ante option: A 3-year generation-weighted average, based on the most recent data available at the time of submission of the CDM-PDD to the DOE for validation, without requirement to monitor and recalculate the emissions factor during the crediting period. The three most recent years for which data is available are 2004-2006.
Step 3. Calculate the operating margin emission factor according to the selected method The Simple Operating Margin emission factor EFgrid,OM,y is defined as the generation-weighted average emissions per unit net electricity generation (tCO2/MWh) of all generating sources serving the system, not including low-cost / must-run power plants. Three options can be selected to calculate the simple OM: Based on data on fuel consumption and net electricity generation of each power plant / unit (Option A); or Based on data on net electricity generation, the average efficiency of each power unit and the fuel type(s) used in each power unit (Option B); or Based on data on the total net electricity generation of all power plants serving the system and the fuel types and total fuel consumption of the project electricity system (option C).
As data for options A and B are not available, the published DNA data uses option C for the calculation
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of the operating margin emission factor, and the project participants follow the DNA data. As Option C is used, the Simple OM emission factor is calculated based on the net electricity supplied to the grid by all power plants serving the system, not including low-cost / must-run power plants / units, and based on the fuel type(s) and total fuel consumption of the project electricity system, as follows:
EFgrid ,OMsimple , y =
FC
i
i, y
NCVi , y Fco2 ,i , y EG y
(Tool: 5)
Where EFgrid,OMsimple,y is the simple operating margin CO2 emission factor in year y (tCO2/MWh); FCi,y is the amount of fossil fuel type i consumed in the project electricity system in year y (mass or volume unit); NCVi,y is the net calorific value (energy content) of fossil fuel type i in year y (GJ/mass or volume unit); EFCO2,i,y is the CO2 emission factor of fossil fuel type i in year y (tCO2/GJ); is the net electricity generated and delivered to the grid by all power sources serving the EGy system, not including low-cost / must-run power plants / units, in year y (MWh); i is all fossil fuel types combusted in power sources in the project electricity system in year y; when using the ex-ante option, is the three most recent years for which data is available at the time of submission of the CDM-PDD to the DOE for validation. EFgrid,OMsimple,y is calculated to be 1.1169 tCO2/MWh (see Annex 3 for detail). Step 4. Identify the cohort of power units to be included in the build margin The sample group of power units m used to calculate the build margin consists of the set of power capacity additions in the electricity system that comprise 20% of the system generation (in MWh) and that have been built most recently.7 This option is chosen as it comprises larger annual generation than the five units built most recently. Following the deviation8, the latest statistical data available (from the China Power Yearbook) is used by the DNA to determine the most recent year from which the added generation capacity is equal to or just exceeds 20% of the latest statistic year 2006. The added generation capacity is the sample group of power units m used to calculate the build margin. In terms of vintage of data, project participants can choose between ex-ante, and ex-post data vintages. The project proponents have chosen to use the ex-ante option, and EFgrid,BM,y is fixed for the duration of the first crediting period.
Ex-ante option: For the first crediting period, calculate the build margin emission factor ex-ante based on the most recent information available on units already built for sample group m at the time of CDM-PDD submission to the DOE for validation. For the second crediting period, the build margin emission factor should be updated based on the most recent information available on units already built at the time of submission of the request for renewal of the crediting period to
If 20% falls on part capacity of a unit, that unit is fully included in the calculation. Deviation for projects in China (DNV, 7 Oct 05), see http://cdm.unfccc.int/Projects/Deviations.
7 8
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the DOE. For the third crediting period, the build margin emission factor calculated for the second crediting period should be used. This option does not require monitoring the emission factor during the crediting period. Step 5. Calculate the build margin emission factor The build margin emissions factor is the generation-weighted average emission factor (tCO2/MWh) of all power units m during the most recent year y for which power generation data is available, calculated as follows:
EFgrid ,BM , y
EG EF = EG
m, y m m, y m
EL ,m , y
(Tool: 12)
Where EFgrid,BM,y is the build margin CO2 emission factor in year y (tCO2/MWh); is the net quantity of electricity generated and delivered to the grid by power unit m in year y EGm,y (MWh); EFEL,m,y is the CO2 emission factor of power unit m in year y (tCO2/MWh); m is the power units included in the build margin; y is the most recent historical year for which power generation data is available. The CO2 emission factor of each power unit m (EFEL,m,y) should be determined as per the guidance in step 3 (a) for the simple OM. Due to the limited availability of publicly available data, the DNA uses the accepted deviation mentioned in Step 4 to calculate EFBM,y, as follows: Use of capacity additions for estimating the build margin emission factor for grid electricity. Use of weights estimated using installed capacity in place of annual electricity generation. Using the latest statistical data available from China Energy Statistical Yearbook to calculate the different CO2 emission percentage (i) of solid, liquid and gas fuel in the total emission from thermal generation in the North China Power Grid. Based the emission percentage (i) of different kind fossil fuels and the corresponding emission factor (EFi) according to the best technology commercially available in the China, the weighted emission factor of thermal power (EFthermal) is calculated. Using the latest statistical data available (from the China Electric Power Yearbook) determine the year from which the added generation capacity is equal to or just exceeds 20% of the capacity of the latest statistic year 2006. Regarding the added generation capacity above 20%, calculate the Build Margin through multiply the weighted emission factor of thermal power (EFthermal) by the capacity percentage of the thermal power among the about 20% new capacity of 2006.
EFgrid,BM,y is calculated to be 0.8687 tCO2/MWh (see Annex 3 for detail). Step 6. Calculation of the combined margin emission factor The combined margin emission factor is calculated as follows:
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EFgrid,CM,y = wOM EFgrid,OM,y + wBM EFgrid,BM,y Where EFgrid,BM,y is the build margin CO2 emission factor in year y (tCO2/MWh) EFgrid,OM,y is the operating margin CO2 emission factor in year y (tCO2/MWh) wOM is the weighting of operating margin emissions factor (%) is the weighting of build margin emissions factor (%). wBM
(Tool: 13)
EFgrid,CM,y (or EFELEC,) is calculated to be 0.9928 tCO2/MWh (see Annex 3 for detail) as follows: EFELEC = 0.5 EFOM + 0.5 EFBM = 0.5 1.1169 + 0.5 0.8687 = 0.9928 tCO2/MWh. Calculation of project emissions Project emissions include emissions for flaring waste gas and electricity emissions due to consumption of electricity for cleaning of gas before being used for generation of electricity. PEy = PEAF,y + PEEL,y+ PEEL,Import,y (ACM0012: 2)
Where: is the project emissions due to project activity; PEy PEAF,y is the project activity emissions from on-site consumption of fossil fuels by the cogeneration plant, in case they are used as supplemental fuels, due to non-availability of waste gas to the project activity or due to any other reason; PEEL,y is the project activity emissions from on-site consumption of electricity for gas cleaning equipment. PEEL,Import,y is Project activity emissions from import of electricity replacing captive electricity generated in the absence of the project activity for Type-2 project activities 1) Project emissions due to auxiliary fossil fuels These emissions are calculated by multiplying the quantity of fossil fuels (FFi,y) used by the recipient plant(s) with the CO2 emission factor of the fuel type i (EFCO2,i), as follows:
PE AF, y = FFi , y NCVi EFCO 2,i
(ACM0012: 2a)
Where: PEAF,y are the emission from the project activity in year y due to combustion of auxiliary fuel in tonnes of CO2; FFi,y is the quantity of fossil fuel type i combusted to supplement waste gas in the project activity during the year y, in energy or mass units; NCVi is the net calorific value of the fossil fuel type i combusted as supplementary fuel, in TJ per unit of energy or mass units, obtained from reliable local or national data, if available, otherwise taken from the country specific IPCC default factors; EFCO2,i is the CO2 emission factor per unit of energy or mass of the fuel type i in tonnes CO2 obtained from reliable local or national data, if available, otherwise taken from the country specific IPCC default factors.
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The project is not a co-generation project, therefore, it is zero. 2) Project emissions due to electricity consumption of gas cleaning equipment Project emissions are calculated by multiplying the CO2 emission factor for electricity (EFCO2,EL) by the total amount of electricity used as a result of the project activity (ECPJ,y). The source of electricity may be the grid or a captive power plant. Project emissions from consumption of additional electricity by the project are determined as follows:
PE EL,y = EC PJ , y EFCO 2, EL, y
(ACM0012: 2b)
Where: PEEL,y is the project emissions from consumption of electricity in gas cleaning equipment of project activity (tCO2/year) ECPJ,y is the additional electricity consumed in year y as a result of the implementation of the project activity EFCO2,EL,y is the CO2 emission factor for electricity consumed by the project activity in year y (tCO2/MWh) According to the project FSR, the electricity used for gas cleaning is included in the internal power use of power plant, which had been deducted from the total electricity generation of the project.
3) Project activity emissions due to consumption of imported electricity that in the absence of project activity would have been supplied by captive electricity generated. Project emissions are calculated by multiplying the CO2 emission factor for the electricity imported (EFCO2,EL) by the quantity of electricity imported (ECPJ,Importi,,y). Project emissions from imported electricity that replaces captive electricity are determined as follows: PE EL,import, y= EC PJ,Im port, y EFCO2,EL,y (2c) Where: PEEL,Import,y = Project emissions from imported electricity in the project activity, replacing captive electricity in the baseline (tCO2/yr) ECPJ,import,y = Imported electricity from source i consumed in year y replacing captive electricity generated in the absence of the project activity (MWh) EFCO2,EL,y = CO2 emission factor for electricity imported to replace captive electricity in year y (tCO2/MWh)
According to the project FSR, there is no consumption of imported electricity that in the absence of project would have been supplied by captive electricity generated isnt exists, therefore, it is zero. Leakage No leakage is applicable under ACM0012.
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Calculation of emission reductions Emission reductions due to the project activity during year y are calculated as follows: ERy = BEy PEy Where: ERy are the total emissions reductions during the year y in tonnes of CO2; are the emissions from the project activity during the year y in tonnes of CO2; PEy BEy are the baseline emissions reductions during the year y in tonnes of CO2. (ACM0012: 3)
B.6.2. Data and parameters that are available at validation: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied: Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied: Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of QWG,BL Nm3 Quantity of waste gas generated prior to the start of the project activity waste gas supply contract COG 41.25 million Nm3 BFG 715 million Nm3 Direct measurements by generator of gas through an appropriate metering device
QBL,product Tonne Annual production of iron Production record Based on audited production records. Data for three years prior to project implementation
qwg,product m3/ton Waste gas production per ton of iron Project participant or external expert. Estimated based on information provided by the technology supplier and the external expert
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measurement methods and procedures actually applied: Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied: Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: FWCM Fraction of total electricity generated by the project activity using waste gas. 1 The electricity generation of the project is purely from use of waste gas, according to the methodology ACM0012, the fraction is 1.
FCi,j,y and FCi,m,y Tonnes or m3 OM: Fuel use of type i in plant j (only included plant) in year y BM: Fuel use of type i in plant m (includes all generating plant) in year y China Energy Statistics Yearbook (2005,2006,2007) See Annex 3 The available data were published by the Chinese DNA, and officially accepted by the Chinese DNA in their emission factor calculations.
NCVi kJ/kg or kJ/m3 Net caloric value (energy content) per mass or volume unit of fuel i China Energy Statistic Yearbook (2007), p287 See Annex 3. The available data were published by the Chinese DNA, and officially accepted by the Chinese DNA in their emission factor calculations.
Some fuels are presented in tonnes of standard coal equivalent units (tce), the NCV of standard coal equivalents is 29.27 GJ/tce. EFCO2,i,y tCO2/TJ
Data / Parameter: Data unit:
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Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment:
CO2 emission factor per unit of energy for fuel i 2006 IPCC Guidelines on National GHG Inventories, Volume 2, Chapter 1, Table 1.4 See Annex 3. According to ACM0012, if the local or national value is not available, the IPCC value can be applied
To be conservative, EF for the undefined category other fuels is considered zero, thus emissions from this source is also zero. EGj,y Mwh Electricity generation by fuel type for each province. China Electric Power Yearbook See Annex 3 This is the most accurate data presenting electricity generation by fuel type for each province. Generation is presented as gross generation, a self-use (own consumption) percentage is also given. Total net generation is calculated from gross generation and self-use share. Calculated from gross generation and self use listed in the Yearbook EGimport MWh Imported electricity from NEPG and CCPG China Electric Power Yearbook See Annex 3 This is an authoritative official data, the available data were published by the Chinese DNA, and officially accepted by the Chinese DNA in their emission factor calculations
Data / Paramter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Paramter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually
Used to adjust the emission factor of NCPG for imports Internal power use rate of power plant % The internal power consumption rate of power plants in province j in year y China Electric Power Yearbook 2005-2007 See Annex 3 for details The available data were published by the Chinese DNA, and officially accepted by the Chinese DNA in their emission factor calculations.
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applied: Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied:
Used for calculation of power grid emission factor Power plant efficiency % The power supply efficiency of fossil fuel type i-fired power plants with best commercially available technology Chinese DNAs Guideline of emission factors of Chinese grids (http://cdm.ccchina.gov.cn) and see Annex 3 Coal/solids: 37. 28% Oil/liquids: 48.81% Natural gas/gases: 48.81% The available data were published by the Chinese DNA, and officially accepted by the Chinese DNA in their emission factor calculations
Justification of the choice of data or description of measurement methods and procedures actually applied: Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied: Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied: Any comment:
Used for calculation of build margin emission factor EFi,adv tCO2/MWh The emission factor of fossil fuel type i-fired power plants with best commercially available technology Chinese DNAs Guideline of emission factors of Chinese grids (http://cdm.ccchina.gov.cn) and see Annex 3 See Annex 3 The available data were published by the Chinese DNA, and officially accepted by the Chinese DNA in their emission factor calculations
Used for calculation of build margin emission factor i % Emission share of fossil fuel type i-fired power plants in build margin Calculated See Annex 3 The available data were published by the Chinese authorities, and officially accepted by the Chinese DNA in their emission factor calculations
Used for calculation of build margin emission factor
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Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied: Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment:
EFThermal tCO2/MWh The weighted power supply efficiency of thermal power plants with best commercially available technologies Calculated See Annex 3 The available data were published by the Chinese authorities, and officially accepted by the Chinese DNA in their emission factor calculations
Used for calculation of power grid emission factor OXIDi % OXIDi is the oxidation factor of the fuel i IPCC default value 1 ACM0012 refer to IPCC default values. The IPCC Guidelines are the most up to date version.
2007 IPCC Guidelines, Volume 2, page 1.21-24 Cn, Cthermal MW Installed capacity of NCPG (in year n) China Electric Power Yearbook See Annex 3. The available data were published by the Chinese authorities, and officially accepted by the Chinese DNA in their emission factor calculations
The year selected is 2006. The share of added thermal capacity is 95.64% of total added capacity during this period. EFOM or EFgrid,OMsimple,y tCO2e/MWh the operating margin emission factor of the North China Power Grid http://cdm.ccchina.gov.cn and see Annex 3 1.1169 Authorial data, issued by Chinese DNA.
Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods
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and procedures actually applied : Any comment:
Used to calculate the combined emission factor of the North China Power Grid. EFBM or EFgrid,BM,y tCO2e/MWh the build margin emission factor of the North China Power Grid http://cdm.ccchina.gov.cn and see Annex 3 0.8687 Authorial data, issued by Chinese DNA.
Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment:
Used to calculate the combined emission factor of the North China Power Grid EFgrid,CM,y or EFELEC,i,j,y (with i is grid) tCO2e/MWh the combined margin emission factor of the North China Power Grid http://cdm.ccchina.gov.cn and see Annex 3 0.9928 Authorial data, issued by Chinese DNA.
Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment:
Calculated ex-ante and fixed for the crediting period
B.6.3. Ex-ante calculation of emission reductions: 1. Baseline Emission With the grid emission factor calculated as the weighted average of operating and build margin emission factors as follows: EFgrid = 0.5 EFOM + 0.5 EFBM = 0.5 1.1169 + 0.5 0.8687 = 0.9928 tCO2/MWh See Annex 3 for details. Following the formulae in chapter B.6.2, the fcap = 1, fWcm = 1, baseline emissions can be calculated exante as the net electricity generated by the proposed project activity, multiplied by the calculated grid emission factor: BEy = BEEn,y = fcap fWcm EGy EFgrid
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= 1 1 302,500 MWh/y 0.9928 tCO2/MWh = 300,322 tCO2e/y 2. Project Emission Project emissions include emissions due to combustion of auxiliary fuel to supplement waste gas and electricity emissions due to consumption of electricity for cleaning of gas before being used for generation of electricity. Following the analysis in chapter B.6.2, the project emissions are zero. PEy = PEAF,y + PEEL,y+ PEEL,Import,y= 0 3. Emission Reduction ERy = BEy PEy = 300,322 tCO2 B.6.4 Summary of the ex-ante estimation of emission reductions:
Table 10 Values obtained when applying formulae above (tCO2e) Estimation of project Estimation of baseline Estimation of Year activity emissions emissions leakage 2009 0 300,322 0 2010 0 300,322 0 2011 0 300,322 0 2012 0 300,322 0 2013 0 300,322 0 2014 0 300,322 0 2015 0 300,322 0 0 300,322 0 2016 0 300,322 0 2017 0 300,322 0 2018 0 3,003,220 0 Total Note: The full year is from Jan 01 to Dec 31. B.7.
Estimation of overall emission reductions 300,322 300,322 300,322 300,322 300,322 300,322 300,322 300,322 300,322 300,322 3,003,220
Application of the monitoring methodology and description of the monitoring plan:
Following the methodology, the following data will be monitored: Project emissions: 1. Net calorific value of fossil fuel 2. CO2 emission factor of the fossil fuel The data items are factors obtained from reliable local or national data. If local data is not available, project participant use default factors published by the IPCC. Baseline Emissions: 1. Quantity of electricity supplied to the Meijin Energy Group.
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2. CO2 emission factor of electricity that would have been consumed by the recipient plant in the absence of the project activity. As grid electricity is consumed by Meijin Energy Group and the grid electricity emission factor is applicable, the relevant variables as contained in Tool to calculate the emission factor for an electricity system are included in the monitoring plan. Following the methodology, data collected will be archived electronically and be kept at least for 2 years after the end of the crediting period. 100% of the data will be monitored if not indicated otherwise in the comments in the tables below. B.7.1 Data and parameters monitored: QBFG,y Nm3 Quantity of BFG used for power generation during year y Measurement BFG 715 million Nm3 Calculated value according to the gas supply contract.
Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied:
Direct Measurements by project participants through an appropriate metering device (e.g. turbine flow meter)
Metering equipment will be maintained and calibrated according to appropriate industry standards. And it should be calibrated on regular equipment. During the time of calibration and maintenance, alternative equipment should be used for monitoring.
Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be QCOG,y Nm3 Quantity of COG used for power generation during year y Measurement COG 41.25 million Nm3
Direct Measurements by project participants through an appropriate metering device (e.g. turbine flow meter)
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applied: QA/QC procedures to be applied:
Metering equipment will be maintained and calibrated according to appropriate industry standards. And it should be calibrated on regular equipment. During the time of calibration and maintenance, alternative equipment should be used for monitoring.
Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: EGy MWh Supplied electricity to Meijin Group Automatically measured by power energy meters 302,500MWh
Any comment:
Power energy meters are installed at substation and the data of electricity are measured continuously and are recorded automatically, meanwhile, the readings of the meters are also recorded manually every day. The accuracy of the meters meets the national standard. 1. Sale receipts and other records are used for double check to ensure the consistency. 2. The meters are calibrated at a regular interval by qualified organization according to the related national standards and regulations. 3. A back-up meter is also installed at the substation, when the main meter fail to work normally, the readings of the back-up meter will be adopted. 4. Proportion of the monitored data is 100%. 5. The data will be archived in electronic manner and in paper. 6. The data will be kept during the crediting period and two years later. 7. The main meter and back-up meter will be calibrated once per quarter by a qualified calibration organization. The uncertainty of the data is very low.
Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5
ECPG,y MWh Additional electricity consumed in gas cleaning equipment of project activity Measured by meters
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Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment:
Measured continuously and recorded monthly
The meters will be periodically checked by according to the relevant national electricity industry standard and regulations. Included in the internal power use rate of power plant
Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment:
EGtot,y MWh Total annual energy produced at the power plants Measured by meters
Measured continuously and recorded monthly
The meters will be periodically checked by according to the relevant national electricity industry standard and regulations.
B.7.2. Description of the monitoring plan: An overall monitoring plan has been designed for the proposed CDM project activity. The project developer has compiled a monitoring and management manual The Monitoring and Management Manual for Zhonghang Tengjin Combined Cycle Power Plant Project. The aim of the monitoring plan is to make sure that all data necessary for the successful operation of the plant as a registered CDM project is monitored completely, consistently, reliably, and accurately, so that the monitored data and calculated emission reductions can be verified. The details are summarized as follows: 1. Monitoring subject The purpose of the project monitoring is to be able to calculate the emission reductions achieved by the proposed project activity and make sure that these emission reductions can be reported and verified. 2. Monitoring management structure In order to obtain reliable monitoring data, the project developer will establish a monitoring management framework prior to the start of the crediting period. Clear responsibilities will be assigned to all staff
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involved in the proposed CDM project activity. A monitoring director will be appointed who has the overall responsibilities for the monitoring of the project, other staffs will be responsible for the data recording, data collecting, data archiving and emission reductions calculation. Figure 4 CDM management structure of the project Monitoring Director
Technical Department
Finance department, General office etc.
Specialists from CRM and the NCPG
Monitoring staff
Auditing staff
3. Monitoring apparatus and installation 3.1 Monitoring of electricity supplied by the Project The electricity meters will be installed in accordance with Technology & Management Regulations for Power Metering Devices (DL/T448-2000). The accuracy of the meters meets the national standard. The main and back-up electricity meter will both be installed at the new 110kV substation which will used to transport the electricity generated by the proposed project to Meijin Energy Group internal grid. . Both meters will be calibrated before the start of operation. And all the electricity meters will be sealed after installation and calibration. 3.2 Monitoring of amount of waste gas combusted Amount (Nm3) of waste gas (COG and BFG) combusted will be monitored through metering equipment. To ensure the accuracy of measurement, one main and one backup metering equipment will be installed. 4. Data monitoring 4.1 Data collection of electricity supplied by the Project The readings of the main meter are used for calculating the emission reductions when the main meter is in normal operation state. The monitoring processes are as follows: (1) The staff records the readings of meters everyday;
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(2) The designated persons from the Meijin Energy Group and the project company record the readings of the power to/from the grid together at the end of every month; (3) The project developer provides Meijin Energy Group with a sale receipt after Meijin Energy Group has confirmed the settling accounts sheet, and preserves the copy of the sale receipt. (4) The project developer provides the DOE with the readings of the meters and the copy of sale receipt. 4.2 Data collection of waste gas combusted The amount of COG and BFG will be measured continuously, recorded hourly and aggregated monthly. The meter reading will be readily accessible for DOE. Calibration tests and metering records will be maintained for verification. 5. Quality control 1) Calibration of meters The calibration of all the meters conducted by a qualified organization must comply with national standard and sectional regulations to ensure the accuracy. The main meter and back-up electricity meter at the substation will be calibrated once per year. The meters must be sealed after calibration. The calibration records must be archived together with other monitoring records. When the main meter or back-up meter have a breakdown, the party finding the breakdown should tell another party and inform the qualified calibration organization to check, calibrate, test and treat the meter so as to recover the normal monitoring state. 2) Emergency treatment In case data accuracy is beyond the acceptable accurate range or the main meter can not regularly work, the amount of power generation and the waste gas combusted due to the project activity will be confirmed by the following methods: 2-1) First, by reading backup meter, unless a test by either party reveals it is inaccurate; 2-2) The reasonable and conservative method will be designed and the sufficient evidences will be provided to verifying DOE by the Project owner and the power plant if accuracy of the backup meters is not acceptable or the operation is beyond standardization. 6. Data management All monitoring data and records will be archived in electronic documents as well as in paper. The electronic documents will be backed up in compact disc or hard disc form. The project developer will also keep the copies of sale receipts and prepare a monitoring report at the end of each year, which includes the net electricity generation, waste gas combusted, the monitoring data summary, the calibration records, and the emission reductions calculation. All the electronic and paper documents will be kept for two years after the end of the crediting period or the last issuance of CERs for the project whichever occurs later. 7. Training program
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The project developer will train all the related staff before the start of project operation. The training contains CDM knowledge, operational regulations, quality control (QC), data monitoring requirements and data management regulations, etc.
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 of the baseline study and monitoring methodology: 20/08/2008. Contact information of the entity and persons responsible: Carbon Resource Management (CRM) prepared the PDD. CRM is a project participant. Contact information is given in Annex 1. The persons preparing the documentation were: o Mr. Liu Ling, Mr. Sun Cuiqing, Mr. Zhong Yong, Mr. Shi Xiangfeng, Ms. Qian Yiwen, ll@carbonresource.com, Tel: +86 10 8447 5246/8 o Mr. Christiaan Vrolijk, cv@carbonresource.com, Tel: +44 20 70161426.
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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: 09/10/2007
C.1.2. Expected operational lifetime of the project activity:

18 year (from commissioning) C.2. Choice of the crediting period and related information: A fixed 10-year crediting period is chosen C.2.1. Renewable crediting period: Not applicable. C.2.1.1. C.2.1.2. Starting date of the first crediting period: Length of the first crediting period:
C.2.2. Fixed crediting period: A fixed crediting period is chosen C.2.2.1. Starting date: 01/01/2009 (or date of registration, whichever is later) C.2.2.2. Length: 10y-0m
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SECTION D. Environmental impacts D.1. Documentation on the analysis of the environmental impacts, including transboundary impacts: An Environmental Impact Assessment (EIA) for the project activity was completed by Shanxi Province Environmental Science Institute. The EIA has been approved by the Environmental Protection Bureau of Shanxi Province. The main findings in the EIA are: The analysis of the environment impact in the construction period The main environmental impacts during the construction period are noise, waste water and solid waste. Atmosphere. The main impact to the atmosphere is dust. In order to reduce the pollution, a number of measures are implemented, including watering and cleaning regularly. Noise: Construction machinery and construction activity will generate noise. However, the project is located in the iron plant, which is far away from the local residential area. Therefore, the impact of noise during construction period is negligible. Waste water: The waste water from construction is mainly sewage from construction workers. This small quantity of sewage will be treated. The waste water during the construction period, therefore, will have no impact on the local environment. Solid waste: The solid wastes in the construction period include waste soil and stone, construction wastes, as well as office garbage. The solid wastes will be treated. And the impact of solid wastes on the local residents arising from the project is considered to be insignificant. In addition, in order to reduce the temporary land use during construction, the construction plan will be efficiently arranged. The analysis of the environment impact in the operational period The main environmental impacts during the operational period are waste water, and noise impact. Waste water: The volume of waste water generated during the operational period will be small, consisting mainly of the sewage from staff. The waste water will be disposed of in the facilitys disposal system. Therefore, the sewage will not be directly drained out, and the impact of the waste water from the project activity will be minimal. Noise: The noise generated during the operation of the project will mainly come from the turbine and generator. The project activity is far away from the local residential area, so the impact of noise to the surrounding population is negligible. However, to ensure a good working condition for the staff, the project owner will utilise screening and shock absorption among other methods to comply with the Industrial Noise Standard (BG12345-90) III. Atmospheric impact: Main emission source is tail gas from the generator and boiler. NO2 and SO2 emission will meet the national standard Emission standard of air pollutants for burning boiler (GWPB3-1999). No other environmental impacts or dangers from the project activity either during construction or operation are identified in the EIA.
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D.2. If environmental impacts are considered significant by the project participants or the host Party, please provide conclusions and all references to support documentation of an environmental impact assessment undertaken in accordance with the procedures as required by the host Party: The environmental impacts of the project are considered to be minimal. The project EIA was approved by the Environmental Protection Bureau of Shanxi Province.
SECTION E. Stakeholders comments E.1. Brief description how comments by local stakeholders have been invited and compiled:
69 local stakeholders were invited to fill a questionnaire in July 2007 and the survey had a 100% response rate. E.2. Summary of the comments received:
The result of the survey indicated the support to the project as shown below. Table 12 Questionnaire responses Question Respondents Background
Do you know CDM?
Do you know the project? What kind of impact do you think of the proposed project on the environment? Do you think the proposed project will have promotion in local economic development?
What kind of positive impacts of the proposed project on your life?
What kind of impact of this project on your life?
Answer Official Local resident and social organizations Others Excellent A little No Excellent A little No Positive impact Negative impact Unknown Yes No Unknown Increase income and improve life Improve environment and reduce GHG emissions Others Positive impact Negative impact
Persons 15 54 0 4 65 0 11 58 0 69 0 0 69 0 0 5 64 0 69 0
Share 22% 78% 0 6% 94% 0 16% 84% 0 100% 0 0 100% 0 0 7% 93% 0 100% 0
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Do you agree the implementation of the proposed project? Conclusions from the survey
Unknown Agreement Opposing Unconcerned
0 69 0 0
0 100% 0 0
The survey shows that the proposed project has strong local support among the stakeholders. They all believe that the proposed project will increase the local employment opportunities, promote the local development in society and in economy greatly. None of the stakeholders are against the project. E.3. Report on how due account was taken of any comments received:
The survey shows that the proposed project has strong local support among the local people. They all believe the proposed project will promote the local economic development and agree the project construction.
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Annex 1 CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY Organization: Street/P.O.Box: Building: City: State/Region: Postcode/ZIP: Country: Telephone: FAX: E-Mail: URL: Represented by: Title: Salutation: Last name: Middle name: First name: Department: Mobile: Direct FAX: Direct tel: Personal e-mail: Shanxi Zhonghang Tengjin Clean Energy Co., Ltd.
Jiaocheng Shanxi Peoples Republic of China 86-351-5988432 86-351-5988433 guoyanbo@cagtc.com Mr. Guo Yanbo General Manager Guo Yanbo +86 13901019033 86-351-5988432 86-351-5988433 guoyanbo@cagtc.com
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Organization: Street/P.O.Box: Building: City: State/Region: Postfix/ZIP: Country: Telephone: FAX: E-Mail: URL: Represented by: Title: Salutation: Last Name: Middle Name: First Name: Department: Mobile: Direct FAX: Direct tel: Personal E-Mail:
Carbon Resource Management Ltd. 49 St. Jamess Street London SW1A 1JT The United Kingdom +44 20 7016 1420 +44 20 7016 1421 nac@carbonresource.com Nicholas A Clarke Managing Director Mr. Clarke Nicholas
+44 20 7016 1421 +44 20 7016 1420 nac@carbonresource.com
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Annex 2 INFORMATION REGARDING PUBLIC FUNDING There is no public funding from Annex I Parties for this project.
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Annex 3 BASELINE INFORMATION Calculation of the grid emission factor Step 1. Identify the relevant electric power system The proposed project activity is connected, through the internal electricity grid of Meijin Energy Group, to the Shanxi Provincial Grid, which is part of the North China Power Grid. Based on the definitions in the tool, the spatial extent of the project electricity system is the power plants that are physically connected through transmission and distribution lines to the project activity and that can be dispatched without significant transmission constraints. In line with this definition, and using the boundary definitions of the Chinese DNA9, NCPG consists of Shandong, Beijing, Tianjin, Hebei, Shanxi, and Inner Mongolia power grids. The electricity transmission between different provinces in NCPG is very large and it is reasonable for the project to regard NCPG as the project boundary. There are electricity transfers from connected electricity systems to the project electricity system, NCPG. The connected electricity system is the Northeast Power Grid (NEPG) and Central China Power Grid (CCPG). The Northeast Power Grid (NEPG) consists of three provincial grids: Jilin, Liaoning and Heilongjiang. The Central China Power Grid (CCPG) consists of six provincial grids: Jiangxi, Hunan, Hubei, Henan, Sichuan, Chongqing. For the purpose of determining the operating margin, the emission factors of imports are taken into consideration. The CO2 emission factor for net electricity imports (EFgrid,import,y) from the connected electricity system should be determined using one of the following options: (e) 0 tCO2/MWh, or (f) The weighted average operating margin (OM) emission rate of the exporting grid, or (g) The simple operating margin emission rate of the exporting grid, if the conditions for this method apply to the exporting grid; or (h) The simple adjusted operating margin emission rate of the exporting grid. Option (b) is selected to calculate the CO2 emission factor(s) for net electricity imports (EFgrid,import,y), determined as described in step 3 (d) of the tool. The values of the emission factor as determined and published by the Chinese DNA are used for the imports. Step 2. Select an operating margin (OM) method According to the tool, the calculation of the operating margin emission factor (EFgrid,OM,y) is based on one of the following methods: a) Simple OM; b) Simple adjusted OM;
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c) Dispatch data analysis OM; d) Average OM Any of the four methods can be used by the project participants, however, the Simple OM method (option a) can only be used if low-cost/must-run resources constitute less than 50% of total grid generation in average of the five most recent years. Option a is selected by the project participants. The Simple OM method is applicable, as generation from all sources (including hydro power) other than thermal plants were less than 1% of total generation in NCPG in each of the last 5 years (see annex 3). The Simple OM emissions factor can be calculated using either ex-ante or ex-post data vintages. The project proponents have chosen to use the ex-ante option, and EFgrid,OM,y is fixed for the duration of the first crediting period:
Ex ante option: A 3-year generation-weighted average, based on the most recent data available at the time of submission of the CDM-PDD to the DOE for validation, without requirement to monitor and recalculate the emissions factor during the crediting period. The three most recent years for which data is available are 2004-2006.
The Simple OM method is applicable if the low-cost / must-run resources constitute less than 50% of total grid generation on average in the five most recent years or based on long-term normal for hydroelectric production. The share of low-cost / must-run generation in NCPG does not exceed 1% in the most recent last 5 years, with the average being 0.81% as presented in Table A1 below.
Table A1 Power generation in the North China Power Grid from 2002 to 2006
year
low-cost/must-run generation 10 kwh

8
Total generation 10 kwh 4075.45 4616.53 5308.04 6077.82 6099.71 26177.55 5235.51 0.89% 0.86% 0.76% 0.75% 0.79%
8
Sources Share Edition/page 2003/P585 2004/P709 2005/P474 2006/P568 2007/P638
2002 2003 2004 2005 2006 Total Average Imports
36.25 39.79 40.32 45.51 48.04 209.41 41.982
Imports into NCPG from connected electricity systems, Northeast Power Grid (NEPG) and Central China Power Grid (CCPG) are calculated using the weighted average operating margin (OM) emission rate of the exporting grid.
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The detailed values of imports are shown in Table A2 and A3.

Table A2 Electricity exchange between power grid in 2005
unit: North Grid Imported electricity from Northeast Grid East Grid Imported electricity from Central Grid Jiangsu Imported electricity from Yangcheng Plant South Grid Imported net electricity from Central Grid
100 million Kwh 39.29 270.39 112.82 202.64
MWh 3,929,000 27,039,000 11,282,000 20,264,000
From:Electricity Industry Statistical Document Summary 2005

Table A3 Electricity exchange between power grid in 2006
Unit: North Grid Imported electricity from Northeast Grid North Grid Imported electricity from Central Grid East Grid Imported electricity from Central Grid Jiangsu Imported electricity from Yangcheng Plant South Grid Imported net electricity from Central Grid Central Grid Imported net electricity from Northwest Grid
100 million Kwh 26.1806 4.9706 24.2915 111.5082 217.3084 30.2895
MWh 2,618,060 497,060 2,429,150 11,150,820 21,730,840 3,028,950
From:Electricity Industry Statistical Document Summary 2006 Step 3. Calculate the operating margin emission factor according to the selected method The most recent year for which data is available in the yearbook is the year 2006. The Operating Margin Emissions Factor is now calculated from the data presented above using formula Tool: 5, and including an adjustment for imports from NEPG and CCPG. The data and calculation is shown in Table A5 to Table A10.
Table A4 The low calorific value, carbon coefficient, oxidation factor of each fuel
fuel type
low calorific value
Carbon coefficient
Oxidation factor
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Raw coal Clean coal Other washed coal Moulding coal Coke
20908 kJ/kg 26344 kJ/kg 8363 kJ/kg 20908 kJ/kg 28435 kJ/kg
25.80 25.80 25.80 26.60 29.20
1 1 1 1 1
Crude oil Gasoline Kerosene Diesel Fuel oil Other petroleum products Other coking products
41816 kJ/kg 43070 kJ/kg 43070 kJ/kg 42652 kJ/kg 41816 kJ/kg 38369 kJ/kg 28435 kJ/kg
20.00 18.90 19.60 20.20 21.10 20.00 25.80
1 1 1 1 1 1 1
Natural gas Coke oven gas Other gas LPG Refinery gas
38931 kJ/m3 16726 kJ/m3 5227 kJ/m3 50179 kJ/kg 46055 kJ/kg
15.30 12.10 12.10 17.20 15.70
1 1 1 1 1
Note: all of the fuel values come from China energy statistical yearbook 2007 P287. Each fuel of Carbon coefficient comes from table 1.3 and table 1.4 of chapter 1 1.21-1.24 2006 IPCC Guidelines for National Greenhouse Gas Inventories Volume 2 Energy.
Table A5 Calculation of CO2 emissions from fuels for thermal power production, North China Grid, 2004.
Beiji ng Tianji n Shanx i Inner Mong olia Shan dong North China Grid Carbon coefficie nt tc/TJ A Raw coal Clean coal Other washed coal Coke Coke oven gas Other gas Crude oil 104 t 10 t 104 t 104 t 108 m 3 108 m 3 104 t 0.55 17.74 0.54 24.25 5.32 8.2 6.48 101 354.2 0.22 0.4 16.47 8.73 1.41
4
Fuel
Unit
Hebei
Oxidatio n factor
NCV MJ/t,km3 J 20908 26344 8363 28435 16726 5227 41816
CO2 emissions tCO2e K=G*H*I*J*44 /12/10000 K=G*H*I*J*44 /12/1000 (unit of volume) 538,547,477 996,857 5,901,191 6,698 1,153,187 1,578,574 0
% I 100 100 100 100 100 100 100
B 1410
C 6300
D 5213
E 4932. 2
F 8550 40 284.2 2
G=A+B+C+D +E+F 27228.29 40 745.91 0.22 15.54 68.07 0
H 25.8 25.8 25.8 29.2 12.1 12.1 20
823.0 9
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Gasoline Diesel Fuel oil LPG Refinery gas Natural gas Other petroleum products Other coking products Other E (standard coal)
104 t 104 t 104 t 104 t 104 t 108 m 3 10 t 104 t 10 Tce

4 4
18.9 0.39 14.66 0.84 4.66 0.16 5.89 14.82 0 0.55 0.37 1.42 0.19 1.97 0.56 0 0 9.41 34.64 109.7 4.48 158.26 20.2 21.1 17.2 15.7 15.3 20 25.8 0
100 100 100 100 100 100 100 100 100
43070 42652 41816 50179 46055 38931 38369 28435 0 Total
0 186,070 479,451 0 52,229 122,306 0 0 0 549,024,041
China energy statistical yearbook 2005 MWh import from Northeast to North Year:2004 4,514,550 Average EF of Northeast Grid 1.17384
Province Beijing Tianjin Hebei Shanxi Inner Mongolia Shandong Total
Table A6 Calculation of thermal power supply to North China Grid, 2004 Thermal Power generation Thermal Power generation Losses (100 million kWh) 185.8 339.5 1250 1049 804.3 1639 MWh) 18579000 33952000 124970000 104926000 80427000 163918000 % 7.94 6.35 6.5 7.7 7.17 7.32
Thermal power supply MWh) 17,103,827 31,796,048 116,846,950 96,846,698 74,660,384 151,919,202 489,173,110
China Electricity statistical yearbook 2005 Total Power supply MWh Total emissiontCO2 year:2004 EF 493,687,660 554,323,400 1.12282
Fuel Unit Beijing Tianji n Hebei Shanxi Inner Mongolia Shandong North China Grid Carbon coefficien t tc/TJ Oxida tion factor % NCV MJ/t,km 3 CO2 emissions tCO2e K=G*H*I*J*4 4/12/10000 K=G*H*I*J*4 4/12/1000 (unit of volume) 636062535.8 1051185.664 5192725.191 9742.210133 1742396.483 2111027.27 22385.49867 298.4751 130786.3867 405689.6325 0 239141.2016 681417.0792 0
G=A+B+C+ D+E+F 32158.53 42.18 656.36 0.32 23.48 91.03 0.73 0.01 4.14 12.54 0 9.02 3.12 0
Raw coal Clean coal Other washed coal Coke Coke oven gas Other gas Crude oil Gasoline Diesel Fuel oil LPG Refinery gas Natural gas Other petroleum products
10 4 t 10 4 t 10 t 10 4 t
10 8 m3 10 8 m3
4
897.75 6.57 0.64 16.09
1675.2
6726.5 167.45
6176.45 373.65 21.08 9.88
6277.23
10405.4 42.18 108.69
25.8 25.8 25.8 29.2 12.1 12.1 20 18.9 20.2 21.1 17.2 15.7 15.3 20
100 100 100 100 100 100 100 100 100 100 100 100 100 100
20908 26344 8363 28435 16726 5227 41816 43070 42652 41816 50179 46055 38931 38369
0.75 7.86
0.62 38.83 0.01 3.54 0.23 9.02
10 4 t 10 4 t 10 4 t 10 4 t 10 4 t 10 4 t
10 8 m3
4
0.21 0.39 18.37 0.73 0.12 0.06
0.11
0.48 12.25
0.28
0.08
2.76
10 t
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Other coking products Other E (standard coal)
10 4 t 10 4 t
8.58 32.35 69.31 7.27 118.9
0 236.41
25.8 0
100 100
28435 0 Total
0 0 647649330.9
China energy statistical yearbook 2006 MWh import from Northeast to North 3,929,000 Average EF of Northeast Grid 1.15764
Table A8 Calculation of thermal power supply to North China Grid, 2005 Province Thermal Power generation (100 million kWh) Beijing Tianjin Hebei Shanxi Inner Mongolia Shandong Total 208.8 369.93 1343.48 1287.85 923.45 1898.8 Thermal Power generation MWh) 20880000 36993000 134348000 128785000 92345000 189880000 Losses % 7.73 6.63 6.57 7.42 7.01 7.14 Thermal power supply MWh) 19,265,976 34,540,364 125,521,336 119,229,153 85,871,616 176,322,568 560,751,013
China eletricity statistical yearbook 2006 Total Power supply MWh Total emissiontCO2 year:2005 EF 564,680,013 652,197,698 1.15499
Fuel Unit Beijin g Tianjin Hebei Shanxi Inner Mongol ia Shandon g North China Grid Carbon coefficien t tc/TJ Oxidatio n factor NCV MJ/t,km % 3 CO2 emissions tCO2e K=G*H*I*J*44/12 /10000 K=G*H*I*J*44/ 12/1000 (unit of volume) 704,277,823 991,125 9,477,855 728,820 98,335 2,638,825 3,263,593 22,692 298 303,589 341,633 316 125,934 1,019,942
A Raw coal Clean coal Other washed coal moulding coal Coke Coke oven gas Other gas Crude oil Gasoline Diesel Fuel oil LPG Refinery gas Natural gas Other petroleum products Other coking products Other E (standard 104 t 10 t 104 t 104 t 104 t 10 m3 8 10 m3 4 10 t 104 t 10 t 104 t 10 t 104 t 10 m3 4 10 t 104 t 104 Tce
8 4 4 8 4
B 1639.2
C 6867.99
D 6968.88
E 8404.05
F 10930.7 39.77
G=A+B+C+ D+E+F 35607.41 39.77 1198 35.74 3.23 35.56 140.73 0.74 0.01
H 25.8 25.8 25.8 26.6 29.2 12.1 12.1 20 18.9 20.2 21.1 17.2 15.7 15.3
I 100 100 100 100 100 100 100 100 100 100 100 100 100 100
J 20908 26344 8363 20908 28435 16726 5227 41816 43070 42652 41816 50179 46055 38931
796.63
6.36 7.97
214.13
371.14
61.77
544.6 27.77 3.23
0.38 20.66
0.63 6.58
5.8 69.72 0.01
22.32 13.79
0.64 22.76 0.74
5.79 7.22
0.21 6.38
3.01 0.08 2.43
0.07
6.32 4.1 0.01 2.32
9.61 10.56 0.01 4.75 4.67
3.41
0.73
0.53
0.28
0.28 0
20 25.8 0
100 100 100
38369 28435 0
7,878 0 0
6.83
47.11
230.76
12.51
132.89
430.1
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coal) Total China energy statistical yearbook 2007 MWh North Grid Imported electricity from Northeast Grid 2,618,060 North Grid Imported electricity from Central Grid 723,298,659
Average EF of Northeast Grid 497,060 Average EF of Central Grid
1.16688 0.87599
Table A10 Calculation of thermal power supply to North China Grid, 2006 Province Thermal Power generation (100 million kWh) 207.05 359.24 1438.88 1502.5 1395.93 2309.22 Thermal Power generation MWh) 20705000 35924000 143888000 150250000 139593000 230922000 721282000 Losses % 7.51 6.86 6.63 7.45 7.58 7.12 Thermal power supply MWh) 19,150,055 33,459,614 134,348,226 139,056,375 129,011,851 214,480,354 669,506,473
Beijing Tianjin Hebei Shanxi Inner Mongolia Shandong total
China energy statistical yearbook 2007 China eletricity statistical yearbook 2007 Total Power supply MWh Total emissiontCO2 year 05 EFom EF 1.1169 672,621,593 726,789,038 1.08053
Based on above data and calculations, the simple OM emission factor of NCPG is calculated ex-ante using a 3-year generation-weighed average is 1.1169 tCO2e/MWh. Step 4. Calculate the build margin emission factor according to the selected method Sub-step 1: calculate the thermal emission factor Using the data presented in Table A9, the CO2 emission percentage of solid, liquid and gas fuel in the total emission of North China Power Grid in 2006 are calculated.
Table A11 Fuel shares in North China Grid. Oxida tion factor CO2 emissions tCO2e K=G*H*I*J *44/12/100 J K=G*H*I*J *44/12/100
Fuel
Unit
Beiji ng
Tianji n
Hebe i
Shan xi
Shangd ong
Inner Mong olia
North China Grid
NCV
Carbon coeffici ent tc/TJ I
KJ/kg G=A+B+C +D+E+F
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Raw coal Clean coal Other washed coal Moulding coal Coke Coal total Crude oil Gasoline Coke oil Diesel Fuel oil Other petroleum products Other coking products Oil total Natural gas Coke oven gas Other gas LPG Refinery gas Gas Total Total
104 t 10 t 10 t 104 t 10 t 10 t 104 t 10 t 10 t 104 t 10 t 104 t 104 t 10 t 108 m3 10 m3

8 4 4 4 4 4 4 4 4
796.6 3
1639. 2
6867. 99
6968. 88
10930.6 6 39.77
8404. 05
35607.41 39.77
20908 26344 8363 20908 28435
25.8 25.8 25.8 26.6 29.2
1 1 1 1 1
704,277,823 991,125 9,477,855 728,820 98,335 715,573,958
6.36 7.97
214.1 3
371.1 4
544.6 27.77 3.23
61.77
1198 35.74 3.23
0.74 0.01
0.74 0.01 0
41816 43070 43070 42652 41816 38369 28435
20 18.9 19.6 20.2 21.1 20 25.8
1 1 1 1 1 1 1
22,692 298 0 303,589 341,633 7,878 0 676,091
0.21 6.38
3.01 0.08
6.32 4.1 0.28
0.07
9.61 10.56 0.28 0 0
34.1 3.8 206.6
7.3 6.3 65.8 58 697.2
5.3 223.2 137.9 57.9 72.2 0.01 2.43 2.32 6.4 227.6
46.7 355.6 1407.3 0.01 4.75 0
38931 16726 5227 50179 46055
15.3 12.1 12.1 17.2 15.7
1 1 1 1 1
1,019,942 2,638,825 3,263,593 316 125,934 7,048,610 723,298,659
108 m3 104 t 104 t
China energy statistical yearbook 2007
coal oil gas
98.93% 0.09% 0.98%
Sub-step 2: Based the emission percentages (i) of the different fuels and the emission factors (EFi), according to the best technology commercially available in the China, the weighted emission factor of thermal power (EFthermal) is calculated.
Table A12 EF calculation of coal, oil and gas variable efficiency of power supply Carbon coefficient(tc/TJ) Oxidation factor EF(tCO2/MWh)
page 56
A Coal plant Gas plant Oil plant EFcoal,adv EFgas,adv EFoil,adv 37.28% 48.81% 48.81%
B 25.8 15.3 21.1
C 1 1 1
D=3.6/A/1000*B*C*44/12 0.9135 0.4138 0.5706
So, emission factor of thermal plant is: EFThermal = Coal EFCoal , Adv + Oil EFOil , Adv + Gas EFGas , Adv = 0.9083tCO2/MWh Sub-step3: Using the latest statistical data available (from the China Electric Power Yearbook) determine the year from which the added generation capacity is equal to or just exceeds 20% of the latest statistic year 2006.
Table A13 Calculation of the share of thermal power in recently added capacity(MW) 2004 A Thermal (MW) Hydropower (MW) Nuclear (MW) Other (MW) Total (MW) Capacity addition 93594.9 3250.7 0 137.5 96983.1 33.79% 2005 B 111068.7 3216.2 0 335.5 114620.4 21.75% 2006 C 141538 4004 0 937 146479 30469.3 787.8 0.0 601.5 31858.6 95.64% 2.47% 0.00% 1.89% 100.00% Capacity added in 2005-2006 Share in added capacity
EFBM = (CAPThermal / CAPTotal) * EFThermal CAPThermal is the thermal capacity among the new capacity from 2005 to 2006, and CAPTotal is the total capacity from 2005 to 2006. EFBM = 0.9083 95.64% = 0.8687 tCO2/MWh Step 6. Calculation of the combined margin emission factor The combined margin emission factor is calculated as follows: EFgrid,CM,y = wOM EFgrid,OM,y + wBM EFgrid,BM, = 0.5 1.1169 + 0.5 0.8687 = 0.9928tCO2/MWh
page 57
Annex 4 MONITORING INFORMATION No other additional information.

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

Description of the project activity:

Peoples Republic of China A.4.1.2. Shanxi Province A.4.1.3. Jiaocheng City

COG BFG Steam turbine and generator

Gas turbine and generator

The proposed project activity is the implementation of a new CCPP project.

9. In cases where the energy is

Description of the sources and gases included in the project boundary:

Chinese DNA designates it at http://cdm.ccchina.gov.cn/WebSite/CDM/UpFile/2006/2006121591135575.pdf.

Conclusion Not a part of baseline

Waste energy is used for meeting

Not a part of baseline

Not a part of baseline

Proposed project activity not undertaken as a CDM project activity

Not a part of baseline

Not a part of baseline

Not a part of baseline

Not a part of baseline

Not a part of baseline

Not a part of baseline

Not a part of baseline

Not a part of baseline

Not a part of baseline

Not a part of baseline

There is no existing power generating equipments at the project site.

Not a part of baseline

China Planning Press, 2006, ISBN 7-80058-286-8.

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

Using the formula numbers of ACM0012 or the tool as indicated.

BEElec,y = fcap * fwcm * j i (EGi,j,y * EFElec,i,j,y)

QWG,BL = QBL,product qWG,product

Chinese DNA designates it at http://cdm.ccchina.gov.cn/WebSite/CDM/UpFile/2006/2006121591135575.pdf.

PE AF, y = FFi , y NCVi EFCO 2,i

PE EL,y = EC PJ , y EFCO 2, EL, y

Data / Parameter: Data unit:

Used for calculation of build margin emission factor

and procedures actually applied : Any comment:

Calculated ex-ante and fixed for the crediting period

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

applied: QA/QC procedures to be applied:

Measured continuously and recorded monthly

Measured continuously and recorded monthly

Finance department, General office etc.

Specialists from CRM and the NCPG

C.1.2. Expected operational lifetime of the project activity:

Do you know CDM?

What kind of positive impacts of the proposed project on your life?

What kind of impact of this project on your life?

Unknown Agreement Opposing Unconcerned

+44 20 7016 1421 +44 20 7016 1420 nac@carbonresource.com

Chinese DNA designates it at http://cdm.ccchina.gov.cn/WebSite/CDM/UpFile/2006/2006121591135575.pdf.

low-cost/must-run generation 10 kwh

Sources Share Edition/page 2003/P585 2004/P709 2005/P474 2006/P568 2007/P638

2002 2003 2004 2005 2006 Total Average Imports

36.25 39.79 40.32 45.51 48.04 209.41 41.982

The detailed values of imports are shown in Table A2 and A3.

100 million Kwh 39.29 270.39 112.82 202.64

MWh 3,929,000 27,039,000 11,282,000 20,264,000

From:Electricity Industry Statistical Document Summary 2005

100 million Kwh 26.1806 4.9706 24.2915 111.5082 217.3084 30.2895

MWh 2,618,060 497,060 2,429,150 11,150,820 21,730,840 3,028,950

low calorific value

25.80 25.80 25.80 26.60 29.20

D=3.6/A/1000BC*44/12 0.9135 0.4138 0.5706