Andhra_Pradesh_vensa_biotec_PDD

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					       PROJECT DESIGN DOCUMENT
      4.0 MW INDUSTRIAL WASTE BASED
         POWER GENERATION PROJECT




                 VENSA BIOTEK LIMITED
                      SamalKot, Andhra Pradesh


                               Prepared by:




1, Navjeevan Vihar,                                      Tel: 011 2669 3868
New Delhi 110 017                                        Fax: 011 2669 3881
                         website: www.winrockindia.org
     4.0 MW Industrial Waste Based Power Generation Project of Vensa Biotek Limited




                                       CONTENTS



       A.     General Description of the small-scale Project Activity


       B.     Baseline Methodology


       C.     Duration of the Project Activity / Crediting Period


       D.     Monitoring Methodology and Plan


       E.     Calculation of GHG Emission Reductions by Sources


       F.     Environmental Impacts


       G.     Stakeholders Comments


       Annexes


       Annex 1: Information on participants in the project activity


       Annex 2: Information regarding public funding


       Annex 3: Base Line Data


       Appendix A: References


       Appendix: Abbreviations




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A.       General Description of the small-scale Project Activity

A.1      Title of the small-scale project activity:
         4.0 MW biomass based power generation project at Vensa Biotek Limited.


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


Purpose of the Project:
The purpose of the Vensa Biotek Limited (VBL) power generation project is to utilise
industrial waste (biomass based) and other agricultural residue for generation of
electricity for in-house consumption and export surplus to the electricity grid. The project
activity indirectly helps in reducing the power deficit in the state of Andhra Pradesh,
reduces the grid system’s dependency on fossil fuel resources (primarily coal and gas)
and reduces the emission of greenhouse gases (GHG). The project activity also
contributes to an economically, environmentally and socially sustainable development in
the region through the commercial operation of the power plant and thereby creating
sustainable stakeholder value.


Features of the Project:
The project involves the implementation of a biomass-based power generation plant
using direct combustion of fuels in a boiler for steam generation and expansion of the
same in an extraction cum condensing turbine. The installed capacity of the plant is 4.0
MW. The fuel used is primarily starch industry solid waste viz. tapioca tippi and agro-
biomass viz. rice husk, groundnut husk, saw dust and tapioca stem and biogas
(generated from bio-methanation plant for treating liquid effluents generated during
starch manufacturing). The generated electricity meets VBL’s captive electricity
requirement and the surplus being sold to the state grid. The generated electricity
replaces a mixture of coal and gas-based power generation. The total amount of certified
emission reductions (CERs) to be delivered is expected to be 175,079 tCO2equivalent.
The implementation of the project also leads to additional income and employment in the
region (approximately 80,000 man days of work per year1).


Past Scenario:
The total power requirement of the starch and liquid glucose plant was being met by
APTRANSCo (Andhra Pradesh Power Transmission Corporation Limited) grid and total
process steam requirement of around 10 TPH at 10 kg/cm2 was being met by two




1
 Based on an estimate of at least 100,000 man-days per year for a 5 MW biomass based plant from the Indian Ministry of
Non-Conventional Energy (1999)


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numbers of low pressure Thermax design Water Tube boilers, which were fed with rice
husk. Diesel generator sets were being used as a standby provision for power.


Project Scenario:
The project activity, which is a ‘carbon neutral fuel’ based cogeneration plant, generates
electricity in addition to steam to meet VBL’s captive electricity requirements thereby
displacing an equivalent amount of electricity the plant would have drawn from the
APTRANSCo grid. Additionally, the surplus electricity is being exported to the grid and in
absence of the project same electricity would have been supplied through the power
generation mix of APTRANSCo. By feeding additional power to the grid, the project will
add to the reliability of power supply and stabilization of the voltage, which will create
business opportunities and help economic development in rural areas where the plant is
situated.


The CDM project is limited to the captive electricity consumption and the electricity
export to the electricity distribution grid, where the CO2-neutral electricity generation will
replace conventional electricity generation highly dependent on fossil fuel in the grid
system and thereby reducing GHG emission in the electricity grid system. The CDM
project also produces steam for the plant processes, but this part will not be part of the
CDM project as the steam generated by the new plant replaces the renewable steam
production that was taking place on an old rice husk (biomass) fired boiler.


Key data for the project:
 Power generation capacity                         4.00 MW
 In house power demand                             1.55 MW
 Annual minimum in house demand                    9,112 MWh
 Scheduled export to the grid                      2.45 MW
 Annual minimum export to the grid system          19,400 MWh
                                                   Tapioca Tippi (in-house
                                                                                  19,800 MT
                                                   / by supplier)
                                                   Rice Husk (by supplier)        13,200 MT
 Annual consumption of biomass                     Tapioca stems /
                                                   Groundnut Husk / Saw           10,500 MT
                                                   dust (by supplier)
                                                   Total                          43,500 MT
                                                                                   2.9 million
 Annual consumption of biogas                      Biogas (in-house)
                                                                                         NM3




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                                                                                                           Gross
                                                                   Steam               Steam
     Turbine Details                       Type                                                            Power
                                                                  Pressure        Temperature
                                                                                                        Generation
                                                                             2         0
    1 No. X 4.00 MW           Multi stage, Extraction            65 kg/cm         485 C                4000 kW
                              cum condensing turbine


                                                                                                           Steam
      Boiler Details                       Type                   Pressure        Temperature
                                                                                                            (TPH)
                                                                             2         0
    1 No. high                Bi-drum, Multi fuel fired,         65 kg/cm         485 C                28 TPH
    efficiency boiler         Travel grate, Water tube


Chronological Description of the Project’s Background:
In January 2001, VBL a leading manufacturer of starch and liquid glucose from maize
and tapioca tuber, decided to set up a 4.0 MW biomass based power plant (industrial
waste and agro-biomass). Subsequently, VBL management obtained permission from
Non-conventional Energy Development Corporation of Andhra Pradesh (NEDCAP) for
setting up of the 4.0 MW Power Plant. The core justification for this investment by VBL
management was the potential monetization of CERs to deliver a sustainable and
appropriate return. Subsequently, as VBL was unable to obtain proper guidance and
technical evaluation facilities, in August 2002 the issue of CERs marketing was
temporarily postponed. In June 2004, VBL decided to revive the issue of CERs
marketing and develop the biomass based cogeneration project as a CDM project under
the Cleaner Technology Promotion In India (CTPI) supported by SECO/UNIDO. Power
purchase agreement (PPA) with the transmission authority APTRANSCo was signed in
February 2002.


Despite several technical and financial risks associated with the project, VBL decided to
start construction of power plant in October 2002. The reasonable assurance that the
project would be able to avail carbon credits benefits was one of the key factors in the
decision making, as is stated in VBL’s Board Meetings2. Decisions weighing IRR against
securing CDM credits are presented in Section B.3. Since its commissioning and start-up
in November 2003, VBL cogeneration plant has been confronted with several ongoing
operational problems related to the behavior of mixed biomass feedstock.


Availability of Bio-mass:
The VBL cogeneration plant is being fuelled with starch industry solid waste viz. tapioca
tippi and agro-biomass viz. rice husk, groundnut husk, saw dust and tapioca stem etc.
Apart from these two types of fuels, the cogeneration plant is also being fuelled with
biogas generated from bio-methanation plant (from treating liquid effluents generated in

2
    Documentary evidence on VBL’s Board Meetings decisions would be shared with the Designated Operational Entity


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the starch plant). Apart from these fuels, the company has also identified agro wastes
such as tapioca stem.       These are being sourced from the same farmers who are
supplying the raw material (maize and tapioca) for the starch and glucose production.
Thus, for VBL the biomass waste is supplied from the own plant and from the contracted
farmers. VBL has entered into agreement with biomass suppliers for long term supply of
biomass. Additionally, as per the survey conducted by NEDCAP on availability of
biomass in the region (East Godavari district), it highlights that the district has surplus
biomass availability for the next 10-15 years.


Contribution to Sustainable Development:
The project activity has excellent contribution towards sustainable development and
addresses the key issues:


Environmental Sustainability:
   •    Substituting the electricity requirement from grid by cogeneration scheme thereby
        eliminating the generation of equivalent quantum of electricity using conventional
        fuel feeding the state grid
   •    Reducing disposal and indiscriminate incineration (in low efficiency boilers) of
        biomass waste generated during starch manufacturing process
   •    Conserving coal and other non-renewable natural resource
   •    Mitigating the emission of GHG (CO2) as biomass is a carbon neutral fuel


Socio-economic Sustainability:
   •    Andhra Pradesh had a peak power deficit of 2.3% at the end of the year 2003,
        according to Ministry of Power (MoP, 2003). The biomass based power plants will
        contribute, though in a small measure, to bridging the gap between the supply
        and demand of power in the state.
   •    The unit is located at dispersed rural location, which reduces the transmission
        and distribution (T&D) losses to some extent. The T&D losses in Andhra Pradesh
        were about 26% in year 2003 (MoP 2003).
   •    The project is in line with the policies of MNES. It contributes to achievement of
        the 11th Plan target of 10,000 MW renewable energy by 2012 set by MNES.
   •    Contrary to certain fossil fuel fired plants, the proposed project will not lead to an
        outflow of foreign exchange capital, since most capital equipment is locally
        produced and the biomass waste does not have to be imported. This is in
        accordance with India’s policy of self-reliance.
   •    The plant is situated far from an urban center, creating rural employment. It is
        estimated that the project has potential to create approximately 80,000 man-days
        of work per year. Creation of employment opportunities in rural areas has long
        been recognized as a major element of sustainable development and to stem the



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           large-scale migration from rural to urban areas. To this extent, the project directly
           addresses a core national concern.


A.3        Project Participants:


The project participants are:
      •    Vensa Biotek Limited (VBL): project owner
      •    Government of India: host country; the Government of India ratified the Kyoto
           Protocol in 2002.


Vensa Biotek Limited – India


Role in the Project:
Developer and investor in the biomass based power generation project and supplier of
the carbon credits.


Brief Company Description:
Vensa Biotek Limited (VBL) is one of the leading manufacturers of starch and liquid
glucose from maize and tapioca tuber. The company started its commercial production of
starch and liquid glucose in 1989 by using tapioca tuber as raw material. Subsequently
the company has added maize plant and this is only one of its kinds in India, which can
process both tapioca and maize simultaneously. The company processes around 30,000
MT of tapioca and 63,000 MT of maize annually. The company currently operates
commercial plants aggregating a total installed capacity of 80 MT for the production of
starch, and 40 MT for liquid glucose per day.


VBL is a public limited company with equity participation from IDBI and IFCI banks. The
net fixed assets of the company are INR 218.04 Million (US$ 4.84 million) and net sales
of approx. INR 219.75 Million (US$ 4.88 million) in 2003-2004. The main promoters hold
51% of the equity. It has an impeccable track record with its bankers and a track record
of profits and dividends for its shareholders.


Contact information on party(ies) and private/public entities involved in the project activity
are listed in Annex 1.




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A.4    Technical Description of the small-scale Project Activity:


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


               A.4.1.1       Host Party(ies)               :       India
               A.4.1.2       Region/State/Province etc.    :       Andhra Pradesh
               A.4.1.3       City/Town/Community etc       :       G. Ragampet village,
                                                                   Peddapuram Mandal,
                                                                   East Godavari District
               A.4.1.4       Detail of physical location, including information allowing
                             the unique identification of this small-scale project
                             activity(ies):


                             See following pages




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A.4.2 Type and Category(Ies) and Technology of small-scale Project Activity:


Project Category       :       Renewable energy power project (Type I)
Sub Category           :       Thermal energy for the user (I.C)
                               Renewable electricity generation for supply to a grid (I.D)


As defined under Appendix B of the simplified modalities and procedures for small-scale
CDM project activities, these categories include “biomass based co-generating
systems that produce heat and electricity for use on-site” and “biomass combined
heat and power (co-generation) systems that supply electricity to a grid”. For co-
generation systems to qualify under these categories, the sum of all forms of energy
output shall not exceed 45 MWthermal (rating for the primary boiler shall not exceed 45
MWthermal). This project activity clearly qualifies in the above categories since the net
thermal energy output from the project activity is approximately 22.7 MMKcal/hr
MWthermal (< 45 MWthermal).


The captive power requirement for operating VBL is about 1.55 MW (0.44 MW auxiliary
consumption for cogeneration plant and 1.11 MW for process). Before setting up the
cogeneration plant, power requirement was being met by supplies from APTRANSCo. By
setting up the biomass based cogeneration plant, VBL meets its steam and power
requirement from captive sources and is thus applicable for project category I.C.
Additionally, the surplus electricity is supplied to the grid that is now supplied primarily by
coal power plants with future plans overwhelmingly in favour of fossil fuel based
generating facilities and is thus applicable for project category I.D.


Technology of Project Activity:
The system adopted for power generation is direct combustion of fuels in a high-
pressure boiler for steam generation and expansion of the same in an extraction cum
condensing turbine for generation of power. The boiler (28 TPH, 65 kg/cm2, 4850C) used
for steam generation is specifically designed to fire a combination of various biomass
fuels. The boiler is provided with a large furnace and the super heaters are specially
designed and provided with a protective coating to prevent corrosion from the chemically
contaminated flue gases that are generated while burning tapioca fibre, rice husk and
tapioca stems. The flue gas velocity and spacing of the super heater coils are so
designed to allow minimum fouling with chemical depositions, to extend the life of the
Super heater.




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The steam turbine for the power plant is an extraction cum condensing turbine with one
controlled extraction for process steam requirements. The turbine is designed to drive
the generator directly through a gearbox to generate power at 50 HZ. The speed of the
generator is 1,500 RPM and the generator is designed to generate 4.0 MW Electrical
Power at 50 HZ, 11 KV Voltage level and 0.9 Plant Load Factor.


The generating voltage at the generator terminals is 11 KV which is stepped up to 33 KV
for exporting power to APTRANSCo grid in a 5 MVA Transformer and bring down the
voltage from 11 KV to 415 V in a 2 MVA Transformer for captive use of power.
Accordingly all other electrical equipment like grid transformer, switchyard etc. are sized.


No transfer of technology is involved to host country as the technology of biomass based
high steam pressure power generation is known and in use in India. However, the use of
tapioca and maize crop residue as fuel for power generation is a pioneering effort by
VBL; this project represents the use of tapioca and maize crop residue, for the first time,
for the generation of electricity on a commercial scale.


A.4.3 Brief explanation of how the anthropogenic emissions of anthropogenic
greenhouse gases (GHGs) by sources are to be reduced by the proposed small-
scale project activity, including why the emission reductions would not occur in
the absence of the proposed small-scale project activity, taking into account
national and or/sectoral policies and circumstances:


The project results in a clear reduction of CO2 emissions: the CO2 neutral biomass based
power generation for captive consumption and supply to the electricity grid replaces CO2-
emitting fossil fuel based power that might have been generated in absence of the CDM
project.


The emission reductions would not occur in the absence of the proposed small-scale
project activity as the alternatives to the project include business-as-usual i.e. import of
equivalent amount of electricity through the power generation mix of APTRANSCo grid.
Almost all starch-manufacturing plants in India have their own boilers to generate steam
and electricity supply is from the grid. The boilers dedicated to the starch manufacturing
process are mainly fuelled with coal or lignite. The proposed project uses starch industry
solid waste and agricultural wastes (biomass) to generate power for self-consumption
and export of surplus power to the APTRANSCo grid. In absence of the project, same
power might have been supplied through the power generation mix of APTRANSCo grid,
resulting in CO2 (carbon dioxide) emissions.




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A.4.3.1 Estimated amount of emission reductions over the chosen crediting period


A conventional electrical energy equivalent of 246.87 Million kWh for a period of 10 years
in Andhra Pradesh would be replaced by the electricity from the existing 4.0 MW non-
conventional renewable resource (biomass) based cogeneration plant with CO2
emission reduction of 175,079 tonnes CO2e in a period of 10 years.


A.4.4 Public funding of the small-scale Project Activity:


No public funding as part of project financing from parties included in Annex I is involved
in the project activity. Equity for the project is supplied by VBL and debt is supplied by an
Indian Bank.


A.4.5 Confirmation that the small-scale project activity is not a de-bundled
component of a larger project activity:


According to Appendix C of Simplified Modalities and Procedures for small scale CDM
project activities, “Debundling” is defined as the fragmentation of a large project activity
into smaller parts. A small-scale project activity that is part of a large project activity is
not eligible to use the simplified modalities and procedures for small-scale CDM project
activities.
As highlighted in Appendix C of Simplified Modalities and Procedures for small scale
CDM project activities, a proposed small-scale project shall be deemed to be a de-
bundled component of a large project activity if there is a registered small-scale CDM
project activity or an application to register another small-scale CDM project activity:
    •     With the same project participants;
    •     In the same project category and technology / measure;
    •     Registered within the previous 2 years; and
    •     Whose project boundary is within 1 km of the project boundary of the proposed
          small-scale activity at the closest point.


On the basis of the above, the proposed cogeneration project cannot be considered as
de-bundled component of a large project activity as:
    •    The proposed project is VBL’s first and so far only biomass power plant and VBL
         do not propose another biomass power plant;
    •    VBL have not registered any other small-scale project activity within the previous
         two years; and
    •    Project boundary is not within 1 km radius of any other proposed small-scale
         activity.




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B: Application of a Baseline Methodology

B.1 Title and Reference of the approved baseline methodology applied to the
small-scale Project Activity:


Main Category:
Type I – Renewable energy power project


Sub Category:
C – Thermal energy for the user
D – Renewable electricity generation for a grid


The reference has been taken from the recent list of the small-scale CDM project activity
categories contained in Appendix B of the simplified M&P for small-scale CDM project
activities.


B.2 Project Category Applicable to the small-scale Project Activity:


“Appendix B of the simplified modalities and procedures for small-scale CDM project
activities”, provides indicative simplified baseline and monitoring methodologies for
selected small-scale CDM project activity category. As per this document, the proposed
CDM project falls under Type I.C – Thermal Energy for the User and Type I.D -
Renewable electricity generation for a grid. Baseline methodology for projects under
Type I.C has been detailed in paragraphs 5-7 (Type I.C) of the above mentioned
document. Paragraph 7 (Type I.C) which applies to this sub category of project activity
states that for renewable energy technologies that displace electricity the simplified
baseline is the electricity consumption times the relevant emission factor calculated as
described under Category I.D, paragraph 7 (Type I.D). Similarly, baseline methodology
for projects under Type I.D has been detailed in paragraphs 5-7 (Type I.D) of the above
mentioned document. Paragraph 7 (Type I.D) also applies to this sub category of project
activity. Paragraph 7 (Type I.D) states that the baseline is the kWh produced by the
renewable generating unit multiplied by an emission co-efficient (measured in kg
CO2equ/kWh) calculated in a transparent and conservative manner as:


a) The average of the “approximate operating margin” and the “build margin”, where:
       I. The “approximate operating margin” is the weighted average emissions (in kg
          CO2equ/kWh) of all generating sources serving the system, excluding hydro,
          geothermal, wind, low-cost biomass, nuclear and solar generation;




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     II. The “build margin” is the weighted average emissions (in kg CO2equ/kWh) of
         recent capacity additions to the system, which capacity additions are defined as
         the greater (in MWh) of most recent 20% of existing plants or the 5 most recent
         plants
                                           OR


b) The weighted average emissions (in kg CO2equ/kWh) of the current generation mix.


Considering the available guidelines and the present project scenario, Andhra Pradesh
state grid has been chosen for baseline analysis by selecting “the weighted average
emissions of current generation mix” for baseline calculations. Further details of the
baseline are given in Annex 3.


B.3 Description of how the anthropogenic emissions of GHG by sources are
reduced below those that would have occurred in the absence of the registered
small-scale CDM project activity (i.e. explanation of how and why this project is
additional and therefore not identical with the baseline scenario)


Emission Reductions:


a)     On-site Emissions:


Construction of Cogeneration Plant:
The first direct on-site emissions occur during the construction of the cogeneration plant.
However, as there is a shortage of electricity in India, it can be assumed that in the
baseline situation, fossil fuel power plants would have been constructed instead which
would at least result in similar emission levels. We can therefore safely assume that the
construction of cogeneration plant does not result in additional emissions compared to
the baseline scenario.


Combustion of Biomass:
The fuel used for the cogeneration plant is primarily starch industry solid waste viz.
tapioca fibre and maize husk, agro-biomass viz. rice husk and tapioca stem and biogas.
Direct on-site GHG emissions after implementation of the project arise from the burning
of biomass and biogas in the boiler. These emissions mainly include CO2. However, the
CO2 released equals the amount of CO2 taken up by the biomass during growing,
representing a cyclic process of carbon sequestration and therefore no net emissions
occur. Since the above biomass contains only negligible quantities of other elements like
Nitrogen, Sulphur etc. release of other GHGs are considered as negligible. Additionally,
the biogas which is generated from bio-methanation plant for treating liquid effluents
generated during starch manufacturing is assumed to be produced on a sustainable

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basis and therefore the CO2 associated with biogas consumption is re-absorbed in the
growth of fodder and foodstuffs.


Storage of Biomass:
The harvesting of the maize crop takes place throughout the year, tapioca crop in the
period of January to March and rice crop in the period of July to November and
December to March. Since tapioca being a seasonal crop is only available for three to six
months a year, adequate storage facilities are required. In principle N2O and CH4
emissions could arise from storage. However, this is not expected to generate significant
GHG emissions:
     •    In principle nitrous oxide emissions could arise from storage. However, it seems
          fair to assume the amount of nitrous oxide emissions formed during biomass
          storage to be comparable to the amount of N2O emissions arising from
          agricultural residues when left on the field. As a consequence the N2O emissions
          will not be influenced by the project and will therefore not be taken into account.
     •    Substantial methane emissions from storage are not anticipated. There are three
          arguments for this:
              1. The materials are stored in such a way that anaerobic digestion is very
                   unlikely (dry and with excess oxygen)
              2. Methane production from anaerobic digestion only starts after a couple of
                   months and reaches its peak after 2 years (storage time for the proposed
                   project is on an average one month3)
              3. The biomass materials used in this project have very little organic
                   components that are biodegradable under anaerobic conditions.


b)        Off-site Emissions:


Transport of Biomass:
Direct off-site emissions in the proposed project arise from transporting the biomass. The
biomass is being transported by tractors and trolleys. However, in the baseline situation,
the transport of coal and gas has to be taken into account. On average, the distance
over which fuels have to be transported will be substantially larger for fossil fuel-fired
power stations because of the larger distance to mines and ports than for the proposed
project. For example, Andhra Pradesh fossil fuel-fired power stations procure coal from
facilities located over 100-500 kilometres away either from in-house mines (Singareni
and Godavarikhani) or from neighbouring states such as Chattisgarh, Orissa and
Madhya Pradesh4. Therefore, transport emissions in the baseline will be larger than the

3
  Documentary evidence regarding the VBL agreement with biomass suppliers stating that the supplier agrees to supply
the biomass in monthly consignments to VBL would be shared with the Designated Operational Entity
4
  Andhra Pradesh has huge reserves of key minerals such as coal, limestone, granite, bauxite and barytes. In fact, the
State is estimated to have a third of India’s total mineral wealth. Andhra Pradesh is the only southern state with coal
deposits; however, annual coal production is an almost negligible proportion of reserves (0.3 per cent)


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transport emissions related to the proposed project. Because of a lack of data on the
average transport distances for coal to power stations in Andhra Pradesh and the
Southern grid, we have not included fuel transport emissions in the system boundary of
both the current situation and the project5. This also provides a conservative estimate of
emission reductions.


Biomass Left or Burnt on the Field:
The project will result in reduced direct off-site emissions compared to the current
situation, in which part of the biomass waste stays on the field. This may lead to
methane emissions from decaying biomass. In cases where the biomass is burnt on the
field, N2O may be emitted. N2O and methane have a stronger global warming potential
than CO2. These emissions however, are not taken into account, providing a more
conservative estimate of the baseline emissions.


Since the proposed project uses biomass waste only, no additional biomass is grown on
account of the project. Therefore the project does not result in an additional uptake of
CO2 by sinks.


Justification of Simplified Methodologies:
The net thermal energy output from the project activity is approximately 22.7 MWthermal.
The proposed project therefore qualifies for a small-scale project as the sum of all forms
of energy output is not exceeding 45 MWthermal (as defined in Appendix B of the M&P of
small-scale CDM project activities).


Additionality:
In order to determine if the project activity is additional, the additionally tool approved by
the CDM Executive Board is applied6. Each of the steps is explained below:


Step 0: Preliminary screening based on the starting date of the project activity




(http://www.aponline.gov.in/quick%20links/vision2020/c19.pdf). Since Andhra Pradesh is located adjacent to the ports,
imported coal is also easily available. Regarding gas and other major sources of energy, the discovery of gas in the
Krishna-Godavari Basin offshore coastal Andhra Pradesh by the consortium led by Gujarat State Petrochemicals Limited
will form a major determinant of the future energy generation pattern for Andhra Pradesh
(http://www.projectsmonitor.com/detailnews.asp?secid=39&newsid=6347 ).
5
  The fuel efficiency of tractors and trolleys is 6-7 km/liter. We take 6 km/liter in order to be conservative. Biomass will be
transported over an average distance of 30 km with a minimum load per trip of 8000 kg. Thus, transporting up to 33,600
MT (Tapioca Tippi (9,900 MT), Rice Husk (13,200 MT) and Tapioca stems / Groundnut Husk / Saw dust (10,500 MT)
requires 4,200 trips of 60 km (including the return trip). In total, a maximum of 42,000 liters of diesel oil will be consumed
for the 4.0 MW plant per year, with total emissions amounting to 111 ton CO2/year (assuming an emission factor for diesel
oil of 20.2 t C/TJ, a caloric value of 43.33 TJ/k ton and a density is 0.827 kg/l).


6
    http://cdm.unfccc.int/EB/Meetings/016/eb16repan1.pdf


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a)      Project start date: In January 2001, VBL proposed to set up a 4.0 MW Power
        Plant based on Starch waste. Subsequently VBL management obtained
        permission from NEDCAP for setting up of the 4.0 MW Power Plant. Financing of
        the project was secured in October 2001 and project was commissioned in
        November 2003.


          Step 0: Eligibility of projects already started                        Yes   No
          Has construction started?                                              Y
          Was construction begun before 01/01/2000?                                     N
          Was construction before (i) registration date, and (ii) registration   Y
          of a CDM activity?
          Was CDM considered from early stages of development?                   Y
          Is there documentation to this effect?                                 Y


b)      Evidence demonstration that CDM incentives were seriously considered in
        the development of project: Despite several technical and financial risks
        associated with the project, VBL decided to start construction of cogeneration
        plant in October 2002. The reasonable assurance that the project would be able
        to avail carbon credits benefits was one of the key factors in the decision making.


        During the planning phase itself (January 2001), VBL proposed to explore the
        possibility for marketing the CERs for better viability of the project. Subsequently,
        as the company was unable to obtain proper guidance and technical evaluation
        facilities, in August 2002 the issue of CERs marketing was temporarily
        postponed. In June 2004, VBL decided to revive the issue of CERs marketing
        and develop the biomass based cogeneration project as a CDM project under the
        Cleaner Technology Promotion In India (CTPI) supported by SECO/UNIDO.


Step 1:     Identification of Alternatives to the Project Activity Consistent with
Current Laws and Regulations


Sub-step 1a: Define Alternatives to the Project Activity:
The alternatives to the project include business-as-usual i.e. import of equivalent amount
of electricity through the power generation mix of APTRANSCo grid. Almost all starch-
manufacturing plants in India have their own boilers to generate steam and electricity
supply is from the grid. The boilers dedicated to the starch manufacturing process are
mainly fuelled with coal or lignite.


The proposed CDM project uses starch industry solid waste and agricultural wastes
(biomass) to generate power for self consumption and export of surplus power to the


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APTRANSCo grid. In absence of the project, same power might have been supplied
through the power generation mix of APTRANSCo grid, resulting in CO2 (carbon dioxide)
emissions. The data from APTRANSCo reveals that thermal generation (coal and gas
based) accounts for as high as 80% of total generation in Andhra Pradesh7 as on
31/03/2005. This includes the share of Central Sector thermal power projects based on
coal and gas.


Sub-step 1b: Enforcement of Applicable Laws and Regulations:
Both the project activity (cogeneration plant) and the alternative scenario (old boiler) at
project site are in compliance with all regulations. Thus, the refurbishment of the project
activity at project is not mandated by law and clearly exceeds the legal requirements.


Step 2: Investment Analysis:
The project is a pioneer in utilization of waste from starch manufacturing process for
electricity generation for self consumption and export of surplus power to the grid.
However, there are currently no special incentives for these small power producers to
offset the generally higher costs of non-conventional energy production as compared to
conventional power production based on fossil fuel.


Implementation of the project faces investment barriers. The outlook for the starch
market has changed over time. Compared to earlier years when starch production was
considered as a major revenue-earner, the situation today is quite grim with depressed
Indian and global starch markets. In the depressed starch price scenario, which affects
capacity for internal accrual to generate funds for investment, making investments in
cogeneration facility, which costs approximately INR 36 million / MW (US$ 0.8 million), is
an issue. Though a number of financial institutes offer funds to implement cogeneration
projects, the stringent equity considerations affect the possibility of accessing them.


Some of the investment barriers are:
•      The cost of biomass fuel (rice husk) is low at the moment compared to conventional
       fuel, as the renewable energy market is limited. If the market for renewable energy
       increases in India or other uses of the waste emerge, the costs of production
       increases as a result of the sacrifice of alternative revenues for the project owner.
•      There are no special tariffs or grants schemes available in India for renewable
       energy projects and the project got finance on behalf of the financial strength of the
       project owner.


IRR Analysis:
The most appropriate analytical option is the presentation of financial indicators (IRR


7
    (http://aptranscorp.com/pact01.html)


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calculation) for the project compared to benchmark IRR for biomass based power plants.
The typical IRR benchmark in case of biomass based power plants is around 13%
depending on the type of fuel that is used. IRR at present operating conditions with
reduced power tariff i.e. INR. 3.18 / kWh are coming to 10.76%8 making the project “an
unviable one” without CER sale revenue stream. With CER sale revenue stream the IRR
is coming to 13.80% (see footnote 8) making it a viable option. A likely alternate
investment decision would have been for the implementation of a coal based power
plant. The typical IRR in case of coal based power plants is around 20% (see footnote 8)
depending on the type of coal that is used


While calculating the IRR in project scenario, the maximum fuel price is considered. The
unit is located in the heart of biomass belt. Various biomass fuels are available
throughout the year. Apart from this, VBL is using Tapioca Fibre and Rice Husk in their
boiler for steam generation. Escalation in wages, O&M etc. were considered as 5%.


Least Cost Analysis:
The project’s costs of generating electricity are higher than that for the least cost option
of coal. The cost of electricity production from the project is estimated at INR 2.02/kWh
(see footnote 8), whereas the annualised cost of power generation from a 100 MW coal
based power plant are estimated in this study at INR 1.90/kWh (see footnote 8).
Additionally IRR of a typical coal based (100 MW) power project is 20% (approx.) as
against 11% (approx.) for biomass based power project (see footnote 8).


VBL went for biomass based power generation option because of the following reasons:


           1. The quality of grid power for VBL was bad as the voltage variation was high
                and the frequent interruptions in power supply results in heavy loss of
                production. Hence good quality of power was the immediate requirement for
                VBL and un-interrupted supply of power became necessary for smooth
                running and profitable operation of the plant. To get good quality of power,
                option with VBL was to generate power through coal based power plant or
                utilise the waste generated in-house for power generation.
           2. Biomass based power generation (through in-house waste from plant and
                from market) is slightly costly as compared to coal based (explained above).
                The selection of biomass based power option is because the plant has full
                control on fuel availability and is beneficial with CDM revenues. At the same
                time, it is environmentally friendly as well.


On the basis of above analysis it is clear that VBL could have considered a coal based

8
    Details of the calculation will be provided to the Designation Operational Entity

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power plant instead of the biomass plant, which in terms of financial feasibility would be
clearly more attractive than a biomass plant. It can thus be concluded that a biomass
plant is not an attractive course of action and therefore its implementation is not the most
likely scenario.


Step 3: Barrier Analysis:


Technological Barriers:
The project uses an advanced cogeneration technology in the form of high-pressure
boiler (65 kg/cm2, 4850C) with steam turbine coupled to an alternator for the generation
of power. Currently, the starch manufacturing industry in India predominantly uses low
efficiency, low-pressure boilers for their own steam generation (14 to 17 kg/cm2). The
high-pressure boiler installed at VBL not only belongs to the first installations in the
starch sector but is also among the most efficient installations in India.


Being aware of the difficult combustion characteristics of rice and tapioca residues VBL
contracted with Thermax Ltd. Thermax took specific precautions with respect to the
design (larger furnace, convective heat transfer surfaces, efficient soot blowers and
conservative furnace outlet temperature) of the boiler.


As such, VBL was aware of the serious technological risk associated with the
combustion of rice husk and tapioca residues. Additional revenues through carbon
credits were considered essential to counterbalance the risks.


Institutional Barriers:
The lack of familiarity with handling high-pressure boilers coupled with the complex
operation of condensing and extraction multistage turbines is a major barrier to adoption
of the proposed new technology in the starch manufacturing sector. Furthermore, the
project used new technologies that had not been implemented in starch manufacturing
sector before. The technological risk was higher than conventional projects as the know-
how and support facilities in manufacturers will be established together with the project.


The above barriers lead to an increased risk for the project owner compared to
establishing a conventional power plant for their starch-manufacturing unit.


Step 4: Common Practice Analysis:


Sub-step 4a: Analyze Other Activities Similar to the Proposed Project Activity:
Almost all starch-manufacturing plants in India have their own boilers to generate steam
and electricity supply is from the grid. The boilers dedicated to the starch manufacturing
process are mainly fuelled with coal or lignite. The project activity is the first project in

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India to utilize all the biomass waste products from the starch manufacturing process for
generation of power and steam and supply excess electricity to the electricity grid
system.


Sub-step 4b: Discuss Any Similar Options that are Occurring:
There is no other case in India in starch manufacturing sector of a project of this type.


Step 5: Impact of CDM Registration:


The CDM has made it possible to set up a cogeneration plant and export electricity to the
grid. CDM revenues improve the project’s rate of return, without CERs, the project shows
lower IRR, but breaks even with CER revenues in 10 years crediting period, which is
necessary to initiate such pioneering projects. Thus the prospect of CDM credits for the
project proved helpful in securing a go-ahead decision for this project, since they
diversified the financial returns on investment. In the absence of CER revenue stream,
the project might not have been taken at all. The registration of the proposed project
activity will have a strong impact in paving the way for similar biomass projects to be
implemented in the starch manufacturing sector. From the above assessment, it is clear
that the proposed project does not fall within the baseline scenario and that it would not
occur without the assistance of the CDM benefits.




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B.4    Description of how definition of the Project Boundary related to the
baseline methodology selected is applied to the small-scale Project Activity:


According to Appendix B of the simplified modalities and procedures for small-scale
CDM project activities, the project boundary encompasses the physical and geographical
site of the renewable generation source. For the proposed project activity the project
boundary is from the point of fuel storage to the point of electricity supply to the starch
manufacturing unit where the project proponent has a full control. The steam generation
from the cogeneration activity has been excluded from the project boundary, as it is not
included under the CDM project activity.


Thus, project boundary covers fuel storage, boiler, steam turbine generator and all other
accessory equipments. The transport of biomass and the state electricity grid are not
included in the project boundary.




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Flow chart and project boundary is illustrated in the following diagram:


                                     Biomass Source




  Project
Boundaries                           Biomass Storage




                                   Biomass Fired Boiler                Emission Generated




                                                                             Emission
                                 Power Generation Unit                      Sequestered




Electricity to Starch                                                  Auxiliary
Manufacturing Unit                                                    Consumption




 Electricity Export to                                               Steam for process
    State Grid and                                                  requirement at site
    Consumption



                         Figure B.1: Flow Chart and Project Boundary




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B.5 Details of the Baseline and its Development:


B.5.1 Specify the baseline for the proposed project activity using a methodology
specified in the applicable project category for small-scale CDM project activities
contained in appendix B of the simplified M&P for small-scale CDM project
activities:


The general approach for the baseline is based on the baseline formula as included in
Appendix B, IC category: Thermal energy for the user and ID category: Renewable
electricity generation for a grid (UNFCCC, 2003b). The baseline proposed here is


Option (b): The weighted average emissions of the current generation mix.


In the proposed baseline, Andhra Pradesh electricity grid is used as the reference region
for estimating the current generation mix. Using the methodology available for small-
scale project activities, the weighted average emissions (in KgCO2equ/kWh) of current
generation mix of Andhra Pradesh is used for the calculation of baseline. Actual CO2
emission factor are used for the purpose.


B.5.2 Date of completing the final draft of this baseline section:      29/07/2005


B.5.3 Name of person/entity determining the baseline:


The baseline has been prepared by Winrock International India in consultation with VBL.


Company name          :       Winrock International India
Address               :       1 Navjeevan Vihar, New Delhi – 110017 India
Telephone number      :       91-11-26693868
Fax number            :       91-11-26693881
E-mail                :       wii@winrockindia.org
Website               :       www.winrockindia.org


Winrock International India is not a project participant as meant in Annex 1.




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C.     Duration of the project activity / Crediting period


C.1    Duration of the small-scale Project Activity:


C.1.1 Starting date of the small-scale Project Activity: 16th October 2002


The project started construction after January 2000. Referring to the Glossary of terms
provided in version-2 (03 December, 2004) of “Guidelines for completing the project
design document (CDM-PDD), the proposed new methodology: baseline (CDM-NMB)
and the proposed new methodology: monitoring (CDM-NMM)” the project starting date is
considered as October 16, 2002 the date of laying of foundation stone to start the actual
implementation of the project activity, considering the future benefits through CDM for
sustainable operation of the project. The project started the commercial operation from
November 20, 2003.


C.1.2 Expected operational lifetime of the small-scale project activity:


       Life time of the project      :        20 years


C.2    Choice of the crediting period and related information:


C.2.1 Renewable crediting period (at most seven (7) years per crediting period)


       C.2.1.1        Starting date of the first crediting period (DD/MM/YYYY):
       C.2.1.2        Length of the first crediting period:


C.2.2 Fixed crediting period (at most ten (10) years):


       C.2.2.1        Starting date (DD/MM/YYYY): 20/11/2003
       C.2.2.2        Length (max 10 years): – 10 years




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D.        Application of a monitoring methodology and plan


D.1 Name and Reference of Approved Methodology Applied to the small-scale
Project Activity:


The monitoring methodology / guideline mentioned in the ‘Appendix B of the simplified
modalities and procedures for small scale CDM project activities’ in the project category
Type I.C and Type I.D is considered as basis for monitoring methodology for the project
activity. This methodology involves metering of the electricity generated by the
renewable technology. Although the proposed project does not involve co-fired plants,
the monitoring of the amount of biomass input and its energy content is included as well
in the methodology.


D.2 Justification of the Choice of The Methodology and Why It is Applicable to The
small-scale Project Activity:


The proposed project is eligible as a small-scale project (see section B.2), category
‘Thermal Energy for the User’ (I.C) and ‘Renewable electricity generation for a grid’
(1.D.). The monitoring methodology is consistent with the methodology as required in
Appendix B (UNFCCC, 2003b). The proposed methodology thus provides measured
data on the amount of electricity generated, the biomass input and the fossil fuel input.
With this information, a reliable estimate of the amount of emission reductions can be
made.


In order to monitor the mitigation of GHG due to the project activity at VBL, the total
electricity produced and auxiliary consumption, and captive power consumption for
process plant, needs to be measured. The net electricity supplied to manufacturing
facility of VBL and state grid by the project activity multiplied by emission factor for the
grid will form the baseline for the project activity.


Description of Monitoring Plan:


Explanation of Data Collection:
The data will be collected as follows:
     •    The quantity of biomass purchased will be based on invoices/receipts from
          farmers and the fuel contractor as well as with the weighbridge log. This will be
          audited in regular, annual tax and shareholder audits. If required the DOE will be
          given access to the audit and monitoring reports.
     •    Biogas and biomass produced in plant.


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   •    Electricity production and distribution will be measured and monitored through:
            o   In-house electricity meters installed within the plant premises to record the
                gross power produced, auxiliary power consumed, and captive power
                consumption for processes
            o   Two Electricity meters installed (one check meter and one main meter) at
                the inter connection point of the substation at Peddapuram for the
                electricity export
   •    The purchase and use of fossil fuels (coal) would of course cancel a measure of
        emission reductions. The purchase of fossil fuels, if made, will be tracked through
        the audit report and reflected in final emission reduction calculations. To date, the
        need to use fossil fuels has not occurred for the project.
   •    The energy content of the biomass is measured on an annual basis from a
        recognised testing laboratory


Missing Data:
Missing data is only relevant on the level of electricity meters being temporarily out of
order. At the sub-stations of APTRANSCo there are two meters: the main metering
system and a back-up meter. If the main meter is out of order or under repair, the back-
up meter will provide redundancy. Besides the two meters there will be meters from VBL
within the plants themselves. However, these meters are for internal use (gross power
produced, auxiliary power consumed and electricity supplied to manufacturing facility of
VBL) only and APTRANSCo may not accept these readings for billing purposes.
Electricity fed into the grid and unable to be metered will not be registered and invoiced.
This will result in less registered emission reductions than actually generated.


Operational Parameters of the power generating Unit:


Total Electricity Generated:
The total electricity generated by the power project will be measured in the plant
premises to the best accuracy and will be monitored and recorded, on a continuous
basis through installed electricity meters.


Auxiliary Consumption:
The electricity consumed by plant auxiliaries will be recorded in the plant premises to the
best accuracy. This will be monitored and recorded on a continuous basis through
installed electricity meters. The total quantum of electricity consumed by the auxiliaries
would affect the total electricity supplied to the manufacturing unit and state grid and
therefore the amount of GHG reductions.




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Electricity Exported to the State Grid:
Net electricity exported to state grid would depend on total electricity generated, auxiliary
consumption and captive consumption.


All the above parameters / factors will demonstrate the performance of the project at any
point of time.




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D.3      Data to be Monitored:


The tables below include the variables that will be monitored for this project. No emissions from the project activity are foreseen.


a) Parameters affecting the emission reduction potential of the project activity
    ID     Data     Data variable      Data   Measured (m),       Recording   Proportion      How will the data      For how long is            Comment
Number     type                        unit    calculated (c)     frequency   of data to be     be archived?         archived data to
                                              or estimated (e)                 monitored      (electronic/ paper)        be kept?
1         Energy   Total               kWh          m            Continuous      Total        Electronic / paper    2 years after end   Measured in plant
                   electricity                                                                                      of crediting        premises and monitored
                   generated                                                                                        period              and recorded
                                                                                                                                        continuously
2         Energy   Auxiliary           kWh          m            Continuous      Total        Electronic / paper    2 years after end   Measured in plant
                   consumption                                                                                      of crediting        premises and monitored
                                                                                                                    period              and recorded
                                                                                                                                        continuously
3         Energy   Power               kWh          m            Continuous      Total        Electronic / paper    2 years after end   Measured in plant
                   supplied to                                                                                      of crediting        premises and monitored
                   process plant                                                                                    period              and recorded
                                                                                                                                        continuously
4         Energy   Power               kWh          m            Continuous      Total        Electronic / paper    2 years after end   Measured at the inter
                   supplied to                                                                                      of crediting        connection point of the
                   state grid                                                                                       period              substation at
                                                                                                                                        Peddapuram on daily
                                                                                                                                        basis and data from
                                                                                                                                        invoices on monthly basis



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b)        Fuel related parameters affecting the project activity
     ID     Data     Data variable      Data   Measured (m),      Recording   Proportion of   How will the data      For how long is            Comment
Number       type                       unit    calculated (c)    frequency    data to be        be archived?        archived data to
                                               or estimated (e)                monitored      (electronic/ paper)        be kept?
1          Fuel     Biomass             MT           m            Daily          > 95%              Paper           2 years after end   Data from invoices and
                                                                                                                    of crediting        log book
                                                                                                                    period
2          Fuel     Fossil fuel         MT           m            Daily          > 95%              Paper           2 years after end   Monitoring of fossil fuel
                                                                                                                    of crediting        is only relevant if there
                                                                                                                    period              is insufficient biomass
3          Fuel     Biogas              NM3          m            Daily          > 95%              Paper           2 years after end   Data from log book
                                                                                                                    of crediting
                                                                                                                    period
4          Fuel     Energy content      MJ/k         m            Annually        N/A               Paper           2 years after end   Monitoring of energy
                    - Biomass           g                                                                           of crediting        content will serve
                    - Biogas                                                                                        period              useful if/when fossil fuel
                    - Coal                                                                                                              sources are used




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D.4       Qualitative explanation of how Quality Control (QC) and Quality Assurance
(QA) Procedures are undertaken:


Monitoring Approach:
The general monitoring principles are based on:
      •   Frequency
      •   Reliability
      •   Registration and reporting


As the emission reduction from the project are determined by the number of units supplied to
the manufacturing facility of VBL and state grid (and then multiplying with appropriate
emission factor) it becomes important for the project entity to monitor the power supplied to
manufacturing facility and state grid on real time basis.


Net emission reductions also depend on the leakage estimate due to firing of coal in case of
exigencies. Hence the second important thing is to monitor the quantity of coal used, if any,
and quantify the power contribution from the same.


Frequency of Monitoring:
The project entity will install all metering and check metering facilities within the plant
premises and at the inter connection point of the substation. The measurement will be
recorded and monitored on a continuous basis by the project entity.


Reliability:
The amount of emission reduction is proportional to the net energy generation from the
project. Since the reliability of the monitoring system is governed by the accuracy of the
measurement system and the quality of the equipment to produce the result all power
measuring instruments must be calibrated once a year for ensuring reliability of the system.
All instruments carry tag plates, which indicate the date of calibration and the date of next
calibration. Therefore the system ensures the final generation is highly reliable.


The Shift Engineer is responsible for data recording and the Plant Manager ensures that the
data is recorded continuously and is archived properly. Also, the Shift Engineer had
undergone an induction programme including plant operations, data monitoring, report
generation etc.




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Registration and Reporting:
Registration of data is computerised. Daily, weekly and monthly reports are prepared stating
the generation.


The other major factors, which need to be ensured and monitored, are the use of biomass
and coal (if any).


Fuel Related Parameters:


Quantity of Biomass used in the Boiler as Fuel:
The biomass received from the traders is stored in the plants storage area specially
designed for such storage. The amount of biomass entering the plant is measured through
the weighbridge log and the bills / invoices to the biomass traders and records of the same is
maintained. The weighing system is being calibrated regularly to ensure the accuracy of the
measurement. The data is recorded for further verification. The amount of biomass
purchased is based on invoices / receipts from traders.


Quantity of the Coal used in the Boiler as Fuel:
Coal demands a similar monitoring system in place (as above) for the amount of coal fired (if
any).


Quality of Biomass used in the Boiler:
The main fuel proposed for the power generation is only biomass. The properties of various
types of biomass (Tapioca Tippi, Rice Husk, and Tapioca stems / Groundnut Husk / Saw
Dust) from ultimate analysis-energy content, ash compositions etc. are already established
and will be consistent in the region. Similarly, the properties of biogas from ultimate analysis
- energy content etc. is also established.


Quality of Coal Fired in the Boiler:
The properties of the coal from ultimate analysis – energy content and composition etc. will
depend on the quality of coal received.


D.5 Please describe briefly the operational and management structure that the project
participant(s) will implement in order to monitor emission reductions and any leakage
effects generated by the project activity


To address all O&M issues, the project has experienced Engineers and has an Officer for
Fuel Procurement under the guidance of the Executive / Technical Director. Together they
have recruited and groomed a team of Supervisors and Field Representatives to effectively



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control and monitor the complete process of fuel procurement, quality issues, and the
handling and storage of material in the plant area.


The monitoring parameters relevant for the CDM activity (see section D.3), i.e. biomass input
flow, biomass energy content, electricity production, consumption and export are part of the
regular monitoring scheme of the plant. No additional CDM related training was required.
The monitoring data required for the CDM verification are taken from the regular digital and
manual logs.



D.6    Name of Person / Entity Determining The Monitoring Methodology:


Winrock International India (see also section B.5)




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E.      Estimation of GHG emissions by sources


E.1     Formulae Used:


(In E.1.1 please provide the formula used to calculate the GHG emission reductions by
sources in accordance with the applicable project category of small-scale CDM project
activities contained in appendix B of the simplified M&P for small-scale CDM project
activities.


In case the applicable project category from appendix B does not indicate a specific formula
to calculate the GHG emission reductions by sources, please complete E.1.2 below.)


E.1.1 Selected Formulae as Provided in Appendix B:


(Describe the calculation of GHG emission reductions in accordance with the formula
specified for the applicable project category of small-scale CDM project activities contained
in appendix B of the simplified M&P for small-scale CDM project activities.)


Since category I.C and I.D does not indicate a specific formula to calculate the GHG
emission reduction by sources, the formula is described below in E.1.2


E.1.2 Description of formulae when not provided in appendix B:


E.1.2.1 Describe the formulae used to estimate anthropogenic emissions by sources of
GHGs due to the project activity within the project boundary: (for each gas, source,
formulae/algorithm, emissions in units of CO2 equivalent)


The project is a CO2 neutral biomass-based power plant designed to supply electricity to the
grid. Therefore, no additional anthropogenic emissions of GHGs due to the project activity
are expected to be generated within the project boundary. For further information, see
section B.3.


In case of exigencies of biomass scarcity, VBL proposes to use coal as fuel. However, in the
last 14 years of the operation of the old rice husk fired boiler and last 1.5 years of operation
of new boiler, VBL has never faced any shortage of the biomass. Hence the uncertainties in
the project emissions are negligible. In case coal is used, the CO2 emissions during the
usage of coal will be calculated in the following manner:




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1.     Using IPCC Standard CO2 Emission Factor


                CEC = Q*CC*EFC
       Where,
       CEc      =     Carbon-dioxide emission due to coal burning at project site, MT
       CC       =     Calorific value of coal, kcal/ton
       Q        =     Quantity of coal burned, MT
       EFC      =     IPCC standard emission factor, kg of CO2/kcal


                                                  OR


2.     Using Actual Carbon Content of the Coal
       CO2 Emission [in kgs] = Stoichiometric CO2 from carbon content of coal (based on
       total carbon content).


       To have an estimate of the project CO2 emission quantity due to combustion of coal
       along with the biomass, total carbon content of the coal should be known.
       Combustion reaction for CO2 emission is as under.


                C + O2 = CO2


       Assuming complete combustion of coal, following formula can be used for
       conservative estimation of CO2 emissions.


                CEC = (44/12)*C*Q


       Where,
       CEc      =     Stoichiometric carbon-dioxide emission due to coal burning at project, MT
       C        =     Carbon percentage in coal, %
       Q        =     Quantity of coal burned, MT


       Diesel Generator (DG) sets will be used as standby. However the emissions from the
       usage of DG sets are not considered in the project activity emissions since the
       electricity generated by DG sets would be monitored separately. For each start up of
       the cogeneration plant, the DG (600 kVA) set is operated for two hours with a total
       diesel consumption of 100 litres. The cogeneration plant require four such starters
       per annum, hence consuming 400 litres of diesel per annum which is equivalent to
       generation of 1 ton CO2 per annum (assuming an emission factor for diesel oil of
       20.2 t C/TJ, a caloric value of 43.33 TJ/k ton and a density is 0.827 kg/l).



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E.1.2.2 Describe the formulae used to estimate leakage


E.1.2.2 Describe the formulae used to estimate leakage due to the project activity, where
required, for the applicable project category in appendix B of the simplified modalities and
procedures for small-scale CDM project activities (for each gas, source, formulae/algorithm,
emissions in units of CO2 equivalent)


As prescribed in Appendix B of the Simplified Modalities and Procedures for small-scale
CDM project activities, for Category I.C and I.D, leakage estimation is only required if
renewable energy technology equipment is transferred from another activity. This does not
apply to the project case. However, the only source of leakage activity identified, which
contributes for GHG emissions outside the project boundary is transportation of biomass
from biomass suppliers to project site. For calculation of leakage, see section B.3.


The CO2 emission (leakage) occurs during the transportation of coal from the mines to
respective coal based power plants. The distance between the coal mines and the power
plants is higher as compared to the transportation distance between biomass suppliers to
project site and hence the higher CO2 emissions. To be on conservative side, this leakage
due to coal transportation has not been added while calculating the baseline of Andhra
Pradesh grid and hence a small leakage due to transportation of biomass has been
neglected from the calculations and estimations of emission reductions.


E.1.2.3 The sum of E.1.2.1 and E.1.2.2 represents the small-scale project activity emissions:


The emissions from the project due to use of coal (if any) would give the project activity
emissions.


E.1.2.4 Describe the formulae used to estimate the anthropogenic emissions by sources of
GHG’s in the baseline using the baseline methodology for the applicable project category in
appendix B of the simplified modalities and procedures for small-scale CDM project
activities: (for each gas, source, formula / algorithm, emissions in units of CO2 equivalent)


Andhra Pradesh state grid is considered for baseline analysis and calculation of
anthropogenic emissions by fossil fuels during power generation. Andhra Pradesh’ present
generation mix has been used to arrive at the net carbon intensity / baseline factor of the
chosen grid. It is observed that, in the Andhra Pradesh generation mix, coal and gas based
power projects are responsible for GHG emissions. As per the provisions of the proposed
methodology the emission coefficient for the electricity displaced would be calculated in



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accordance with provisions of paragraph 29 (a) of ‘Appendix B of Simplified Modalities and
Procedures for Small Scale CDM Project Activities’.


The emission coefficient has been calculated in a transparent and conservative manner as:


The weighted average emission of the current generation mix:



Step-by-step calculation of baseline emission is as under:
                   Overall efficiency of coal
     Step 1    :                                        =    35%
                   based power plants
                   Overall efficiency of gas
     Step 2    :                                        =    50%
                   based power plants
                   CO2 emission factor for
     Step 3    :                                        =    96.10 Kg CO2 / GJ9
                   coal
                   CO2 emission factor for
     Step 4    :                                        =    63.10 Kg CO2 / GJ10
                   gas
                                                             CO2 emission factor for coal /
                   Actual emission factor for
     Step 5    :                                        =    Overall efficiency of coal based
                   coal
                                                             power plants (Kg CO2 / kWh)
                                                             CO2 emission factor for gas /
                   Actual emission factor for
     Step 6    :                                        =    Overall efficiency of gas based
                   gas
                                                             power plants (Kg CO2 / kWh)
                                                             Actual emission factor for coal *
                   Net emission factor for
     Step 7    :                                        =    % of generation by coal out of
                   coal
                                                             total generation (Kg CO2 / kWh)
                                                             Actual emission factor for gas *
                   Net emission factor for
     Step 8    :                                        =    % of generation by gas out of
                   gas
                                                             total generation (Kg CO2 / kWh)
                                                             Net emission factor for coal +
     Step 9    : Total net emission factor              =    Net emission factor for gas (Kg
                                                             CO2 / kWh)
                   Units consumed at VBL
                                                             Total power generation – Total
     Step 10   : and exported to                        =
                                                             auxiliary consumption
                   APTRANSCo grid
     Step 11   : Project emissions                      =    Coal used * Heat value of coal *

9
  As per Revised 1996 IPCC Guidelines for National GHG Inventories: Reference manual, page 1.13, for sub-bituminous coal,
IPCC standard CO2 emission factor is 96.1 t CO2 / TJ.
10
  As per Revised 1996 IPCC Guidelines for National GHG Inventories: Reference manual, page 1.13, for natural gas liquefied,
IPCC standard CO2 emission factor is 63.1 t CO2 / TJ.



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                                                  CO2 emission factor of coal as
                                                  per IPCC
                                                  Total net emission factor * Units
 Step 12    : Baseline emission               =   consumed at VBL and exported
                                                  to APTRANSCo grid
                CO2 emission reduction            Baseline emission – Project
 Step 13    :                                 =
                due to project activity           emissions


Since there is a gap between demand and supply in Andhra Pradesh grid, the power
supplied to VBL (from the grid) in the non-project scenario and the export of power from the
project activity to Andhra Pradesh grid can be diverted to other utilities, in the project
scenario. Hence the generation of power at VBL from the project activity will partially fulfil the
power requirement for the state of Andhra Pradesh.


If the same amount of electricity is generated by the coal and gas based power project mix,
it adds to the emissions that are ultimately getting reduced by the project activity. Hence, the
baseline calculated using above methods / scenarios would represent the realistic
anthropogenic emissions by sources that would occur in absence of the project activity.


The uncertainties in the baseline, arising out of capacity additions and deletions are already
taken into consideration during calculation of total net baseline emission factor.


E.1.2.5 Difference between E.1.2.4 and E.1.2.3 represents the emission reductions due to
the project activity during a given period:


The following formula is used to determine emission reduction:


CO2 emission reduction due to project activity = Baseline emission - Project emission


E.2    Table providing values obtained when applying formulae above:


Using UNFCCC baseline methodology for small-scale CDM project, emission reductions by
project activity for 10 years crediting period has been calculated and tabulated as under.




Table E.2 : CO2 Emission Reductions due to project activity



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                               2003-
                                       2004-05   2005-06   2006-07   2007-08   2008-09 2009-10   2010-11   2011-12   2012-13
                                04

Baseline
Emission             kgCO2/    0.72
                                       0.721     0.726     0.713     0.708     0.706   0.704     0.702     0.700     0.698
factor                kWh       7
Plant operation data
Gross
                     MW        4         4         4         4         4        4        4         4         4         4
capacity
PLF                   %       26.6      85        85        85        85        85       85       85        85        85
Days of
                     Days     365      365       365       365       365       365      365      365       365       365
operation
Hours of
                    Hours     8760     8760      8760      8760      8760      8760    8760      8760      8760      8760
operation
Electricity                                      2978      2978      2978      2978    2978      2978      2978
                   MWh/yr     9321     29784                                                                         29784
generation                                         4         4         4        4        4         4         4
Auxiliary
                   MWh/yr     1025     3276      3276      3276      3276      3276    3276      3276      3276      3276
consumption
Captive
consumption                            2650      2650      2650      2650      2650    2650      2650      2650
                   MWh/yr     8296                                                                                   26508
& electricity                            8         8         8         8        8        8         8         8
export
Plant emission data
Project
                     tCO2      0         0         0         0         0        0        0         0         0         0
emissions
Leakage              tCO2      0         0         0         0         0        0        0         0         0         0
Emission reductions
Emission             tCO2-             1910      1925      1891      1876      1871    1865      1860      1854
                              6033                                                                                   18492
reduction             /yr                3         6         0         8        2        7         1         6
Total Emission Reductions (tons)                                                                                 175079




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Uncertainties:


There are two primary areas of uncertainties in the baseline:
   1. The PLF of 85% has already been achieved in 2004-05. It is assumed here that this
       peak PLF will continue for the remainder of the project’s ten year duration. There
       exist the possibilities of not maintaining the proposed PLF during the crediting period.
       However, it should be stressed here that the majority of the technological challenges
       appear to have been resolved and the peak PLF should be maintained.
   2. Emissions from the generation of electricity i.e. when a fossil fuel source must be
       used in the event that insufficient biomass material is available – may be another
       situation where current assumptions prove incorrect. What can be said is that to date
       there has been no need to use fossil fuels in place of the biomass material. In the
       event that this changes, appropriate monitoring procedures are in place to track the
       reduced emission reductions.


Therefore a conventional energy equivalent of 246.87 Million kWh for a period of 10 years in
Andhra Pradesh would be saved by the 4 MW biomass based power plant which in turn will
reduce 175,079 tons of CO2 emissions considering baseline calculations.


The methodology adopted to calculate the baseline is given in detail in Annx-3 (Excel sheets
attached).




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F.       Environmental Impacts


F.1 If required by the host Party, documentation on the analysis of the environmental
impacts of the project activity:


According to Indian regulation, the implementations of biomass plants do not require an
Environmental Impact Assessment (EIA). The Ministry of Environment and Forests (MoEF),
Government of India notification dated June 13, 2002 regarding the requirement of EIA
studies as per the Environment Protection Rule, 1986 (MoEF, 2002) states that any project
developer in India needs to file an application to the MoEF (including a public hearing and an
EIA) in case the proposed industry or project is listed in a predefined list. Thermal Power
Plants with an investment of less than INR 1 billion (US$ 22.22million) are excluded from this
list. As the investment of biomass based project (being a Thermal Power Plant) is less than
INR 1 billion (total project cost is INR 0.15 billion (US$ 3.436 million)), an EIA is not required
(neither is a public hearing).


However the design philosophy of this cogeneration project activity is driven by the concept
of providing the energy with acceptable impact on the environment hence possible
environmental impacts of the project activity are described here. The following environmental
aspects are addressed:
     •   Particulate matter and gases
     •   Dry fly ash
     •   Water use
     •   Waste water


Particulate Matter and Gases:
The elements polluting the air that are discharged from the Cogeneration power plant are:
     •   Dust particulate from fly ash in flue gas
     •   Nitrogen oxide in flue gas
     •   Sulphur di-oxide in flue gas


Electrostatic precipitator (ESP) is installed for the steam generator to contain the dust
emission from plant to a level of less than 115 mg/Nm3. Adequate height of the stack for the
biomass fired boiler, which disburses the pollutants, has been provided as per guidelines
given by the pollution regulations, for dust and sulphur-di-oxide emissions in the
atmosphere.




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The temperatures encountered in the boiler while burning the specified fuels, are low
enough not to produce nitrogen-oxides. Hence, no separate measures are taken to contain
the nitrogen oxide pollutants.


Dry Fly Ash:
The biomass as fuel has only 5-14% ash compared to 30-40% of ash in coal. Ash disposal is
one of the most significant concerns associated with power generation. The above reduction
of ash generated per megawatt of installed capacity is a quantum leap in addressing this
concern. Leading coal-based power units on an average generate 1,368 tonns/year/ MW of
installed capacity of ash. In comparison, the project activity generates ash to the extent of
420 tonns/year/MW of installed capacity (approximately a third of coal based units).


The wet ash from the boiler grate is being collected, transported and stored in ash bunkers
through conveyer system. The dry fly ash from the economizer, air pre-heater, boiler bank
and ESP hoppers is collected by screw conveyer and stored in ash bunker. The ash is being
supplied to brick and cement manufacturers as filler material. Provision is made in the
system for water spray to eliminate dust nuisance in the plant.


Water Use:
The cogeneration plant has a consumption rate of 150 m3/day/MW of installed capacity
compared to 131 m3/day/MW of installed capacity for large coal based plants. This is to be
expected since the project units are small and do not have the advantages of economies of
scale. Furthermore, the seasonal fluctuations are not significant and since treated effluents
are being used for irrigation on the premises (part of this would result in recharge of ground
water); the slightly higher specific water consumption may not be considered unsustainable.


Waste Water:
Effluent from water treatment plant: Hydrochloric acid and sodium hydroxide is being used
as regenerants in the proposed water treatment plant. The acid and alkali effluent generated
during the regeneration process of the ion-exchangers is being drained into a lined
underground neutralizing pit. Generally these effluents are self neutralizing. The effluent is
then being pumped into the effluent treatment ponds which form part of the main starch unit
as well as cogeneration power plant’s effluent disposal system. The neutralizing pit has been
sized with sufficient capacity. The rejects from water treatment plant is having high TDS and
is being diluted and used for cleaning purposes in the project activity. This water also could
be used for plantation.


Biocide in cooling water: The biocide dosing is done to prevent biological growth in the
cooling tower system. This would not result in any chemical pollution of water and also
meets the national standards for the liquid effluent.


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Boiler blow down: pH of the blow down water is in the range of 9.8 to 10.2 and the
temperature is about 850C. The quantity of blow down from the boiler is about 361 kg/hr,
however, part of this is being flashed in the blow down tank and the flashed steam is taken
to the de-aerator for supplementing the steam supplied for decreasing the boiler feed water.
Hence, the actual blow down water released to the drains is about 230 kg/hr and the
temperature is about 600C. As this quantity is very small, the blow down is used for on land
irrigation.


Sewage from various buildings in the plant: Sewage from various buildings in the power
plant area is conveyed through separate drains to the effluent treatment plant (ETP). The
treated effluent from ETP is used for on land irrigation.


Thermal pollution: A close circuit cooling water system with cooling towers has been
installed. This eliminates the letting out of high temperature water into the canals / river and
prevents thermal pollution. Blow down, amounting 520 m3/day from the cooling tower, is
collected and used for on land irrigation. Hence, there is no separate pollution on account of
blow down from cooling water system.


Noise pollution: The rotating equipment in the power plant has been designed to operate
with a total noise level of not exceeding 70 dB (A) as per the requirement of the Noise
Pollution (Regulation and Control) Rules, 2000. The rotating equipments are provided with
silencers where required to meet the noise pollution.


Monitoring:
The characteristics of the effluents from the power plant is monitored and maintained so as
to meet the requirements of State Pollution Control Board and the minimum national
standards for effluent from thermal power plant. Air quality monitoring (Suspended
Particulate Matter) is also undertaken to ensure that the dust level is within limit. The
particulate emission monitoring at the stack is performed once in two months to keep a
continuous check on the performance of the ESP. Adequate sampling openings is provided
in the stack.




G.      Stakeholders Comments



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G.1 Brief description of how comments by local stakeholders have been invited and
compiled:


Public Participation Requirements in India:
To design, construct and operate a small-scale thermal power plant like the biomass based
power plant in this project, there are no specific public consultation requirements. However,
the normal formal procedures need to be followed in order to obtain the required land and
operational licenses and permits.


Initial approval from the NEDCAP was essential because it is the single agency for the
Government of Andhra Pradesh to permit such renewable energy ventures.


Thereafter but prior to the construction and operation of the power project, the following
permissions are required:


Before the plant’s construction start date:
   •   Conversion of land from Agricultural to Non Agricultural – from respective District
       Collector
   •   Department of Factories and Boilers under Department of Industries, Government of
       Andhra Pradesh
   •   Andhra Pradesh Pollution Control Board – Initial Consent to Establish (separately for
       Water and Air).
   •   Power purchase agreement form the transmission authority (APTRANSCo)


Before the plant’s operation date:
   •   Ground Water Department, Government of Andhra Pradesh, for ground water use
   •   Andhra Pradesh Pollution Control Board –Consent to Operate the Plant
   •   Electrical Inspectorate (from Electrical Wing of Public Works Department) before the
       start generating power.


The permissions have already been obtained. None of the above permissions include public
participation. Public hearings may be necessary if an Environmental Impact Assessment
(EIA) is required. However for smaller thermal plants (below investment of INR 1 Billion), this
is not required (see section F.1).


Stakeholder Consultation:
The local stakeholders are immediately affected by the activities of the project. The effect is
on the local environment, social life and economics. All the individuals and organizations



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falling in the above effects are perceived as stakeholders. They can be within the boundaries
of the village, district, state or nation.


VBL checked the opinion of the stakeholders on the project through consultation of
stakeholders. The following stakeholders were identified:
    •   The rural population living in the neighbourhood of the plant
    •   Customer - APTRANSCo
    •   Licensing and regulatory authorities like
            o   Non-conventional Energy Development Corporation of Andhra Pradesh
                (NEDCAP)
            o   Andhra Pradesh Pollution Control Board (APPCB)
            o   Andhra Pradesh Electricity Regulatory Commission (APERC)


Rural Local Population:
The rural population is directly involved with the project. First of all they will be confronted
with the construction and operation of a power plant in their direct environment. When
selecting the site and designing the project attention was given to maintain a very good
relationship with the local population. The project depends on the supply of biomass from
the rural farmers and therefore a good and mutually beneficial relation is essential.         In
addition to this, the project would also lead to local manpower working at the plant site.
Since, the project will provide good direct and indirect employment opportunities the local
populace is encouraging the project.


The project did not require displacement of any local population. In addition, the local
population is also an indirect consumer of the power that is supplied from the power plants.
This is essentially because the power sold to the grid is expected to improve the stability in
the local electricity network. Since, the distance between the electrical substation for power
evacuation and the plant is less; installation of transmission lines has not created any
inconvenience to the local population.


Thus, the project will not cause any adverse social impacts on local population rather helps
in improvising their quality of life. To further prove this VBL obtained an approval from Gram
Panchayat of G. Ragampeta village. This is the village level body formed out of local farmers
and residents. This body met and granted an approval.




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Customer – APTRANSCo:
As a buyer of the power, the APTRANSCo is a major stakeholder in the project. They hold
the key to the commercial success of the project. APTRANSCo has already cleared the
project and VBL has already signed Power Purchase Agreement (PPA) with APTRANSCO.


Licensing and Regulatory Authorities:
APPCB has prescribed standards of environmental compliance and monitors the adherence
to the standards. The project has already received No Objection Certificate (NOC) from
APPCB to start commissioning of the plant and has also obtained the consent for operation
(CFO) from APPCB.


NEDCAP implements policies in respect of non-conventional renewable power projects in
the state of Andhra Pradesh and has accorded approval to the project. Further, State’s apex
body of power is Andhra Pradesh Electricity Regulatory Commission (APERC) and they
have already issued consent for the installation of biomass power plant of 4 MW capacity
under section 21 (4) of AP electricity reform Act 1998 read with section 44 of the Indian
Electricity Supply Act 1948.


The government of India, through Ministry of Non-conventional Energy Sources (MNES),
has been promoting energy conservation, demand side management and viable renewable
energy projects including wind, small hydro and bagasse cogeneration / bio-mass power.


For host country approval to the project, VBL is intending to submit the project for approval
to Designated National Authority (DNA) under Ministry of Environment and Forest (MoEF).


G.2 Summary of the Comments Received:


So far only positive comments have been received. The project is welcomed by all
stakeholders because it is environmentally benign, it generates income and jobs, it supports
the development of the rural districts and the state, it helps bridging the gap between the
demand and supply of electricity, reduces T&D losses, among other benefits.


As mentioned above, VBL has already received the approvals and clearances for their
project from the following stakeholders:


   •   Consent order of Establishment (CFE) and consent for Operation (CFO) from
       APPCB;
   •   Power Purchase Agreement with APTRANSCo;
   •   Approval from the Gram Panchayat, G. Ragampeta village.



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G.3 Report on How Due Account was Taken of Any Comments Received:


As no negative comments have been received, there was no need to address any particular
concerns.




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                                                                                 Annex 1


         CONTACT INFORMATION FOR PARTICIPANTS IN THE PROJECT ACTIVITY
Organization:            Vensa Biotek Limited
P.O.Box:                 18
Building:
City:                    Samalkot
State:                   Andhra Pradesh
Postcode/ZIP:            533440
Country:                 India
Telephone:               +91 884 2327851-4
FAX:                     +91 884 2327303
E-Mail:                  rmy_vensab@sancharnet.in
URL:
Represented by:
Title:                   Executive Director
Salutation:              Mr.
Last Name:               Venigalla
Middle Name:             Krishna
First Name:              Gopi
Department:
Mobile:                  +91 9848961153
Direct FAX:              +91 884 2327303
Direct tel:              +91 884 2327851-4
Personal E-Mail:         rmy_vensab@sancharnet.in




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                                                                              Annex 2


                     INFORMATION REGARDING PUBLIC FUNDING


No Public Funding is available to the project.




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                                                                                   Annex 3


                                          BASE LINE DATA
The methodology adopted for the calculation of the baseline is 'the weighted average
emissions of the current generation mix". Year 2003-04 is considered as the base year for
prediction of future capacity additions during the crediting period. APGENCO generation
data as tabulated below is used for consideration of installed Andhra Pradesh grid capacity
and energy availability during the period 2003-04.


  Table No. 1: Installed Capacity and Generation in Andhra Pradesh during 2003-04
  Sr.                         Sector                           Installed      Generation
  No.                                                      capacity MW       million kWh
   1.    Coal / Lignite Based, MW (AP Genco)               2972.5           16397.56
         Coal / Lignite Based, MW (share from central
   2.                                                      2069.5           11416.23
         plants)
         Thermal - Gas / Naptha based (Joint Sector -
   3.                                                      272              1713.64
         APGPCL)
   4.    Hydro (AP Genco)                                  3586.36          3726.95
   5.    Private / IPP (gas / naptha)                      998.88           6293.09
   6.    Private / IPP (coal / lignite)                    0                0.00
   7.    Nuclear, MW (central)                             143              617.21
   8.    Renewable- wind/mini hydel/cogen/bio-mass         477.11           1656.01
         Others (mini power plants / iso. Gas wells /
   9.                                                      176.21           982.73
         waste heat / industrial Waste etc.)
         TOTAL AP GRID                                         10695.56        42803.42


In order to arrive at the detailed break up of power generation mix (table no. - 1) in Andhra
Pradesh, various documents including the Andhra Pradesh Power Profile and various web
sites were refereed. The websites refereed for estimating the generation mix in Andhra
Pradesh are:
   1. APGENCO web site, www.apgenco.com
   2. Andhra Pradesh State Electricity Board at www.infraline.com/power
   3. Promotion of Non Conventional energy, www.infraline.com/power




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As per the availability, actual generation figures as against the sector wise installed capacity
were used. Wherever the break up of generation was not available, proportionate calculated
figures were used so as to match the total energy availability to Andhra Pradesh grid.
In order to predict the future capacity additions in the state, the proposed power projects of
different sectors (state, central, IPP's, private sector etc.) along with their implementation
plan were considered.


Predictions of capacity additions through Renewable projects are based on the projects
sanctioned by NEDCAP till date. Projects with an installed capacity of 1013 MW of power
under non-conventional energy sources have been sanctioned as of date. According to
NEDCAP, projects with an aggregate capacity of 447 MW have already been commissioned
till now. For the purpose of baseline calculation, the balance capacity of 536 MW (1013-447
MW) is equally added (60 MW) in every year for the crediting period of 10 years. The list of
the proposed projects considered with their implementation schedule is given in the table
below:

    Location          State /        Promoter      Fuel         Capacity         Expected
                    Central / IPP                                (MW)         Implementation
                                                                                Schedule
Simhadri            Central         NTPC        Coal          1000           2002
Srisailam LB        State           APGENCO     Hydel         900            300 MW    in 2003,
                                                                             300 MW     in 2005
                                                                             and 300     MW in
                                                                             2007
Ramagundam          IPP             BPL Power   Coal          520            260 MW    by 2005
                                                                             and 260   MW by
                                                                             2006
Krishnapatnam A     IPP             GVK         Coal          520            2006
                                    Power
Krishnapatnam B     IPP             BBI Power   Coal          520            260 MW by 2004
                                                                             and 260 MW by
                                                                             2005
Ramagundam III      Central         NTPC        Coal          500            2005
Kondapalli          IPP             Lanco       Gas           355            2001
Vemagri             IPP             Nippon      Natural Gas   492            370 MW in 2005
                                    Denro
                                    Ispat
Rayalseema II       State           APGENCO     Coal          420            210 MW by 2005
                                                                             and 210 MW by
                                                                             2006
Peddapuram          IPP          Gautami        Natural Gas 464              2006
                                 Power
Jegurapadu Extn    IPP           GVK            Gas             230          2002
                                 Power
Samalkot           IPP           BSES           Natural Gas 210              2002
                                 Andhra
                                 Power
Source: Andhra Pradesh State Electricity Board at www.infraline.com/power


No additional project other than above list has been considered for capacity additions.


CDM – VENSA – PDD (Version 02 – 8 July 2005)                                Page 52 of 56
         4.0 MW Industrial Waste Based Power Generation Project of Vensa Biotek Limited




                                                                             Appendix A


Sr. No                                      References
         Website of Ministry Non-Conventional Energy Sources (MNES), Government of
1.       India, www.mnes.nic.in
         Website of Indian Renewable Energy Development Agency (IREDA),
2.       www.ireda.nic.in
         Andhra Pradesh Power Profile at www.bisnetworld.net/bisnet/states
3.
4.       www.infraline.com/power/
5.       Annual Report, Ministry of Power, 2003
6.       Kyoto Protocol to the United Nations Framework Convention on Climate
         Change (UNFCCC)
7.       Website of United Nations Framework Convention on Climate Change,
         http://unfccc.int
8.       UNFCCC document: Annx B to attachment 3, Indicative simplified baseline and
         monitoring methodologies for selected small scale CDM project activity
         categories
9.       UNFCCC decision 17/CP.7: Modalities and procedures for a clean development
         mechanism as defined in article 12 of the Kyoto Protocol
10.      UNFCCC, Clean Development Mechanism, Project Design Document (CDM-
         PDD) version 01 (with effect as of: August 29, 2002)
11.      Detailed project report on 4 MW Biomass based power project – Vensa Biotek
         Limited
12.      Website of Central Electric Authority (CEA), Ministry of Power, Govt. of India-
         www.cea.nic.in
                                       th
13.      CEA published document “16 Electric Power Survey of India”


13.      Website of APGENCO, www.apgenco.com




CDM – VENSA – PDD (Version 02 – 8 July 2005)                              Page 53 of 56
          4.0 MW Industrial Waste Based Power Generation Project of Vensa Biotek Limited




                                                                             Appendix B


                                          Abbreviation
      0
1      C                    Degrees Celcius
2     AP                    Andhra Pradesh
3     APERC                 Andhra Pradesh Electricity Regulatory Commission
4     APGENCO               Andhra Pradesh Power Generation Corporation Limited
5     APGPCL                Andhra Pradesh Gas Power Corporation Limited
6     APPCB                 Andhra Pradesh Pollution Control Board
7     APTRANSCo             Andhra Pradesh Power Transmission Corporation Limited
8     CDM                   Clean Development Mechanism
9     CEA                   Central Electricity AUTHORITY
10    CER                   Certified Emission Reductions
11    cm                    Centimeter
12    CFE                   Consent Order of Establishment
13    CFO                   Consent For Operation
14    CH4                   Methane
16    CO2                   Carbon Di-oxide
17    CTPI                  Cleaner Technology Promotion In India
18    dB                    Decibels
19    DG                    Diesel Generator
20    DNA                   Designated National Authority
21    DOE                   Designated Operational Entities
22    DPR                   Detailed Project Report
23    EIA                   Environmental Impact Assessment
25    ESP                   Electrostatic Precipitator
26    ETP                   Effluent Treatment Plant
27    GHG                   Greenhouse Gas
28    GJ                    Gigajoule
29    hr                    Hour
30    HZ                    Hertz
31    IDBI                  Industrial Development Bank of India
32    IFCI                  Industrial Finance Corporation of India
33    INR                   Indian Rupee
34    IPCC                  Intergovernmental Panel on Climate Change
35    IPP                   Independent Power Producers



CDM – VENSA – PDD (Version 02 – 8 July 2005)                               Page 54 of 56
       4.0 MW Industrial Waste Based Power Generation Project of Vensa Biotek Limited




36    IRR                Internal Rate of Return
37    IREDA              India Renewable Energy Development Agency
38    Kcal               Kilo Calories
39    kg                 Kilo Gram
40    KgCO2equ/kWh       Kilo Gram Carbon Di oxide equivalent / Kilowatt Hour
              2
41    kg/cm              Kilo Gram per Square Centimeters
42    kg/l               Kilogram per Liters
43    km                 Kilometer
44    KP                 Kyoto Protocol
45    KV                 Kilovoltage
46    kVA                Kilo Volt Ampere
47    kW                 Kilo Watt
48    kWh                Kilo Watt Hour
        3
49    m /day/MW          Cubic meters per day per mega watt
50    LP                 Low Pressure
51    MJ/kg              Mega Joules per Kilo Gram
52    MNES               Ministry of Non Conventional Energy Sources
53    MoEF               Ministry of Environment and Forests
54    MoP                Ministry of Power
55    MT                 Metric Tons
56    MU                 Million Units
57    MVA                Million Volt Ampere
58    MW                 Mega Watt
59    MWh                Mega Watt Hour
60    N2O                Nitrous Oxide
61    NEDCAP             Non-conventional Energy Development Corporation of
                         Andhra Pradesh
63    NGO                Non Government Organization
64    NMB                New Methodology: Baseline
65    NMM                New Methodology: Monitoring
66    NOC                No Objection Certificate
67    O&M                Operation and Maintenance
68    PDD                Project Design Document
69    PIN                Project Idea Note
70    PLF                Plant Load Factor
71    PPA                Power Purchase Agreement
72    QA                 Quality Assurance
73    QC                 Quality Check



CDM – VENSA – PDD (Version 02 – 8 July 2005)                            Page 55 of 56
       4.0 MW Industrial Waste Based Power Generation Project of Vensa Biotek Limited




74    RE                 Renewable Energy
75    RPM                Rotation Per Minutes
76    SEB                State Electricity Board
77    SECO               State Secretariat for Economic Affairs of Switzerland
78    STG                Steam Turbine Generator
79    t C/TJ             Tons of Carbon per Tera Joule
80    T&D                Transmission and Distribution
81    tCO2               Tons Carbon Di oxide
82    tCO2/yr            Tons Carbon Per Year
83    TDS                Total Dissolved Solids
84    TJ/k ton           Tera Joules per Kilo Ton
85    TPD                Tons per Day
86    TPH                Tons Per Hour
87    UNFCCC             United Nations Framework Convention on Climate
                         Change
88    UNIDO              United Nations Industrial Development Organization
89    US$                United States Dollar
90    VBL                Vensa Biotek Limited




CDM – VENSA – PDD (Version 02 – 8 July 2005)                            Page 56 of 56

				
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