Oswal Woolen Mills Limited 3.5 MW Rice Husk Based Cogeneration by liwenting

VIEWS: 11 PAGES: 47

									Oswal Woolen Mills Limited




3.5 MW Rice Husk Based Cogeneration Project
at Oswal Woolen Mills Ltd.




Project Design Document
                                   CONTENTS

A.      General description of 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: Baseline Data

Appendix

Appendix A: Abbreviations

Appendix B: Reference List

Enclosures


Enclosure: Calculations
A. General description of project activity

A.1 Title of the project activity:
3.5 MW Rice Husk based Cogeneration Project at Oswal Woolen Mills Ltd.

A.2 Description of the project activity:

Purpose

The purpose of the project activity is to utilize rice husk available in the region for effective
generation of electricity for in-house consumption. The project activity is the part of cogeneration
activity involving generation of electricity and steam for captive consumption. The project activity
will indirectly help in reducing the power deficit in the state of Punjab and conserve natural
resources like coal.

Salient features of the project

Oswal Woolen Mills Ltd. (OWML), a leading manufacturer of woolen, blended and acrylic yarns is
the promoter of the project activity. The major equipments of the project activity will comprise a
new 3.5 MW condensing cum extraction turbine and will replace the two existing low-pressure
boilers with a new boiler of 25 Tonnes per hour TPH steam generation capacity at 67 atmosphere1
(atm) pressure.

Present Scenario

The total power requirement of the woolen mill is being met by Punjab State Electricity Board
(PSEB) grid and total process steam requirement of around 13.5 TPH at 8 atm. is being met by
existing two nos. of low pressure Atmospheric Fuidized Bed Combustion (AFBC) boilers, which
are fed with rice husk. Diesel generator sets are 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 OWML’s captive electricity requirement thereby displacing an
equivalent amount of electricity the plant would have drawn from the PSEB grid. Diesel generator
sets will continue to be used as standby.




1
    1 atmosphere = 1.033 kg/cm2
Turbine details                Steam Pressure              Steam Temperature            Gross power
                                                                                        generation
1 No. X 3.5 MW                 64 atm.                     480 oC                       3500 kW

Boiler details                Pressure                   Temperature            Steam (TPH)
1 No. high efficiency         67 atm.                    485 oC                 25 TPH
boiler

Availability of rice husk

Punjab — the grain basket of India, is the major agricultural State of the country. Paddy (rice
cultivation) is an important cash crop for the state. Punjab produced 8.88 million tonnes of paddy
during the year 2002-032, At present the number of rice mills in the state is stated to be more than
30003. Rice husk from these mills is available in plenty but it is utilised in-efficiently in furnaces
and low efficiency boilers by most of the textile and paper industries in Punjab for meeting their
steam requirements.
The current requirement of 60-70 tonnes/day of rice husk at OWML is going to increase by 100 %
with the new cogeneration scheme. The entire rice husk requirement for the project activity will be
met from the rice mills located within a radius of 50 kms from the site.

Project activity’s contribution to sustainable development

This project activity has excellent contribution towards sustainable development and addresses the
key issues:
Environmental well-being
           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.
           Conserving coal and other non-renewable natural resource
           Mitigating the emission of GHG (CO2) as rice husk is a carbon neutral fuel
Socio-economic well being
           Saving the power at grid and allowing it to be diverted to other needy sections of the
           economy
           Contributing to a small increase in the local employment by employing skilled and un-
           skilled personnel for operation and maintenance of the equipment.
           Adopting an advanced and sustainable technology for long term benefits.
           Helping to abridge the gap of electricity demand and supply at local level


2
    Source: Department of Agriculture, Govt. of Punjab
3
    http://www.tribuneindia.com/2004/20040408/biz.htm
A.3.    Project participants

Project promoter and official contact for project activity -Oswal Woolen Mills Limited, Sherpur,
Ludhiana, Punjab, India
(Detailed information is given in Annex 1)

A.4     Technical description of the project activity:

A.4.1   Location of the project activity:
A.4.1.1 Host country Party: India
A.4.1.2 Region/State/Province etc.: Punjab
A.4.1.3 City/Town/Community etc: Ludhiana
A.4.1.4 Detailed description of the physical location, including information allowing the
        unique identification of this project activity:

The project is being implemented adjacent to the OWML manufacturing facility in Sherpur
industrial area of Ludhiana, Punjab. The site measuring about 4046 m2 has already been acquired.
The location also has the abundant availability of skilled and semi-skilled labour and is situated on
GT road just 5 km away from the Ludhiana station.
The geographical location with rail/road connectivity of Ludhiana is detailed in the maps below.
Maps not to scale
A.4.2 Type and category and technology of project activity

Main Category:
Type I - Renewable energy power project
Sub Category: C–Thermal Energy for the User
As defined under Appendix B of the simplified modalities and procedures for small-scale CDM
project activities, this category includes “biomass based co-generating systems that produce heat
and electricity for use on-site”. For co-generation systems to qualify under this category, the sum
of all forms of energy output shall not exceed 45 MW thermal [rating for the primary boiler shall not
exceed 45 MW     thermal].   This project activity clearly qualifies in the above category since the net
thermal energy output from the project activity is approximately 25 MWthermal (< 45 MWthermal).
The power requirement for operating the process plant at OWML is about 3.5 MW. Presently the
power requirement is met by supplies from Punjab State Electricity Board (PSEB). OWML is
setting up the rice husk based cogeneration plant to meet its steam and power requirement from
captive sources. The electricity produced by the project activity will replace the grid supply.

Technology employed for the project activity

The proposed plant will have one condensing cum extraction turbine along with a 25 TPH high-
pressure boiler with steam parameters of 67 atm. and 485 oC. The proposed boiler is of modern
design with membrane furnace walls, atmospheric fluidised bed suitable for outdoor installation
with electrostatic precipitators for dust collection. Uninterrupted flow of rice husk to the boiler will
be enabled by a twin bunker system located in front of the boiler. In case of exigencies of biomass
fuel scarcity, OWML proposes to use coal as fuel. The plant has three-days storage capacity for rice
husk.
Fuel Handling System: Rice husk will be loaded in the twin type bunkers, installed near the boiler
with the help of conveyor belts. One drag chain conveyor for each bunker will be provided for
mixing of fuel in the twin bunker. Feeding of rice husk from bunker to drag chain will be through
rotary feeder. Rice husk will be fed to the boiler by pneumatic conveyor. The total capacity of fuel
handling system is 12TPH.
Monitoring of rice husk quantity fed as fuel is done at these bunkers/ silos using level assessment.
For generating maximum of 100 % steaming capacity of the boiler at rated parameters, about 6.4
TPH of Rice husk (100 % Rice husk firing) is required.
The plant will also have coal handling facilities with necessary crushers and conveyors to meet the
requirement in case of exigencies of biomass fuel scarcity.
The plant will have Distributed Control System (DCS)/Supervisory Control And Data Acquisition
(SCADA) for operation and will generate a gross output of 3500 kW at the generator terminals. The
power generation in the cogeneration plant will be at 11 kV level. The internal consumption
requirements will be met by stepping down the voltage level to 415 V.
No transfer of technology is involved to host country because technology is available within India
from reputed manufacturers.

Ultimate analysis of rice husk used as fuel4

Parameter                          Content (% w/w)


Carbon                             36.70


Hydrogen                           3.00


Oxygen                             31.20


Nitrogen                           1.00


Sulphur                            0.00


Moisture                           10.00


Ash                                18.00


Gross Calorific Value              3150 (Kcal/kg)



The plant is designed with all other auxiliary plant systems like:
           Rice husk and coal handling system
           Ash handling system
           Air pollution control devices
           Water system consists of following sub-systems:
                   Raw water system
                   Circulating water system
                   Condensate system

4
    As per the analysis report available with OWML
                   Water treatment system
                   Service and potable water system
          Compressed air system
          Fire protection system
          Air conditioning and ventilation system
          Complete electrical system for power plant including, instrumentation and control systems
          etc.
A.4.3     Brief statement on how anthropogenic emissions of greenhouse gases (GHGs) by
sources are to be reduced by the proposed CDM project activity:

The proposed cogeneration plant will reduce anthropogenic GHG emissions by displacing fossil
fuel based electricity generation with environmentally sustainable resource, rice husk (carbon
neutral), which is a renewable biomass. The project activity leads to GHG on-site emissions in the
form CO2 from combustion of rice husk which will be consumed by paddy plantations and other
plant species, representing a cyclic process of carbon sequestration. Since, the rice husk contains
only negligible quantities of other elements like Nitrogen, Sulphur etc. release of other GHGs are
considered as negligible.
In the last 10 years of operation of the existing boilers for process steam generation, OWML has
never faced any shortage of rice husk. Although the project activity will entail approximately
double the amount of rice husk consumption compared to the pre-project scenario, there is almost
no possibility of rice husk supply shortage going by the excess availability of the same in the
region. No transmission and distribution losses are considered since the project will supply power
at a short distance.
A conventional electrical energy equivalent of 261.12 Million kWh for a period of 10 years in
Punjab would be replaced by the electricity from the proposed 3.5 MW non-conventional renewable
resource (rice husk) based cogeneration plant with CO2 emission reduction of 222,670 tonnes in a
period of 10 years.
In the absence of the project activity, the same energy load would have been taken up by state grid
comprised primarily of thermal power plants and emission of CO2 would have occurred due to
combustion of conventional fuels like coal / gas.
Percentage generation from grid feeding sources5 (Year: 2002-03)
Coal-55.03 %
Gas-6.98 %
Hydro-33.70 %

5
    Source: Punjab State Electricity Regulatory Commission (PSERC)-tariff order for PSEB-FY2003-04
Nuclear-1.61 %
Unknown-2.69 %
The power sector profile as per Ministry of Power, for Northern Region6 gives the energy shortage
(%) and peak deficit (%) for the state of Punjab as shown below.


                 Energy Shortage (%) & Peak Deficit (%)
    7                                                                         10
    6                                                                         9
                                                                              8
    5                                                                         7
    4                                                                         6
                                                                              5
    3                                                                         4
    2                                                                         3
                                                                              2
    1                                                                         1
    0                                                                         0
                                                                                  Energy Shortage
        8

                 9

                          0

                                  1

                                           2

                                                    3

                                                             4

                                                                      5
     -9

              -9

                       -0

                               -0

                                        -0

                                                 -0

                                                          -0

                                                                   -0
97

            98

                     99

                              00

                                      01

                                               02

                                                        03

                                                                 04



                                                                                  Peak Deficit
19

         19

                  19

                          20

                                   20

                                            20

                                                     20

                                                              20




As per Ministry of Power, Punjab recorded 6.7 % peak deficit and 5.9 % energy shortage during
2003-04. As per the 16th Electric Power Survey of India, conducted by Central Electricity Authority
(CEA), the growth in energy requirement for Punjab is expected to be 7.05 % between 2002 and
2007 and 6.95 % between 2007 and 2012.             This leads to the conclusion that replacement of grid
electricity results in equivalent GHG (CO2) emission reductions related to corresponding reduction
in fossil fuel usage in the power plants feeding the grid. If such replacement is brought about by a
carbon neutral fuel like rice husk as in the project case, then project emission is zero and the entire
emission reductions due to fossil fuel reduction in grid mix gets credited to the project activity.

From the above we can conclude that the project activity results in a net reduction of GHG
emissions in the form of CO2 emissions.




6
    http://powermin.nic.in/indian_electricity_scenario/pdf/NR0105.pdf
A.4.4   Public funding of the project activity

No public funding as part of project financing from parties included in Annex I is involved in the
project activity.

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

According to Appendix C of Simplified Modalities & Procedures for small scale CDM project
activities, ‘Debundling’ is defined as the fragmentation of a large project activity into smaller parts.
A small-scale project activity that is part of a large project activity is not eligible to use the
simplified modalities and procedures for small-scale CDM project activities.
A proposed small-scale project activity shall be deemed to be a debundled component of a large
project activity if there is a registered small-scale CDM project activity or an application to register
another small-scale CDM project activity:
    •   With the same project participants;
    •   In the same project category and technology/measure;
    •   Registered within the previous 2 years; and
    •   Whose project boundary is within 1 km of the project boundary of the proposed small-
        scale activity at the closest point.
The proposed cogeneration project is not a debundled component of a large project activity as:
        The project proponents do not propose another biomass power plant
        The project proponents 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.
B. Baseline methodology

B.1 Title and reference of the project category applicable to the project activity:

Main Category:

        Type I - Renewable energy power project

Sub Category:
        C – Thermal Energy for the User

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 project activity:

Document ‘Appendix B of the simplified M&P for small-scale CDM project activities’, provides
indicative simplified baseline and monitoring methodologies for selected small-scale CDM project
activity categories. As per this document the proposed project falls under Type I.C – Thermal
Energy for the User. Baseline methodology for projects under Type I. C has been detailed in
paragraphs 18-20 of the above mentioned document. Paragraph 20 which applies to the 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 29. Paragraph 29 states that the baseline is the kWh produced by the
renewable generating unit multiplied by an emission coefficient (measured in kgCO2/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;
             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 kgCO2equ/kWh) of current generation mix.
        Considering the available guidelines and the present project scenario, Punjab state grid has
        been chosen for baseline analysis by selecting “The average of the approximate operating
        margin and the build margin (combined margin)” for baseline calculations. Further details
        of the baseline are given in Annex 3. The Operating Margin estimates the effect of the
           proposed project activity on the operation of existing and or/future power plants and the
           build margin estimates the effect of the proposed project activity on the building of alternate
           power plants. Elements of operating and built margins are captured in the combined margin
           which is chosen as representative baseline for the credit period.


B.3 Description of how the anthropogenic GHG emissions by sources are reduced below those
that would have occurred in the absence of the proposed CDM project activity

A two-step approach is followed to establish the additionality for the project activity:

      Step 1-Additionality test-the project is not a part of baseline scenario and hence different from
      what otherwise would have happened

      Step 2-Describing the appropriate baseline scenario and calculating the resulting GHG
      reductions.

Step 1: Project’s Additionality Test
In accordance with paragraph 28 of the simplified modalities and procedures for small-scale CDM
project activities, a simplified baseline and monitoring methodology listed in Appendix B may be
used for a small-scale CDM project activity if project participants are able to demonstrate to a
designated operational entity that the project activity would otherwise not be implemented due to
the existence of one or more barrier(s) listed in attachment A of Appendix. B.
It is established here that the project activity has associated barriers to its implementation which
would be overcome with the availability of carbon financing against a sale consideration of carbon
credits that would be generated once the project is implemented.
Investment barrier

The major investment barrier to the project is the perceived risk to the project in case of reduced
supply of rice husk in future since Punjab government is discouraging the cultivation of paddy in
this state due to requirement of large quantities of water for cultivation of paddy7. Investors are
worried that shortage in supply of rice husk in future, may lead to steep rise in prices of rice husk
which might render the project financially unstable.
This is evident from the fact that the cost of rice husk during the financial closure was around INR
1,400/ton, which has increased to more than INR 1600/ton in a period of one year8 (an increase of
14 %). This escalation in the rice prices is expected to continue in future because of reasons
mentioned above.

7
    http://www.punjabgov.net/roadmap1.asp
8
    Documentary evidence regarding the price escalation would be shared with the validator during validation
Annual expenditure on rice husk (@ INR 1400/ton) = INR 55,440,000

Annual expenditure on rice husk due to increased cost (@ INR 1600/ton) = INR 63,360,000

Annual increase in expenditure due to increased cost of rice husk:

INR 84,480,000– INR 73,920,000= INR 7,920,000

Annual earnings from sale of CER (@ Euro 5/CER) = INR 6,123,4259

This enormous increase in cost of rice husk would be significantly compensated by the proposed
carbon financing and will help to improve the sustainability of the project which will otherwise be
rendered financially unstable.

Due to high initial investment in starting the cogeneration plant and due to its associated risk
mentioned above, majority of the textile mills in Punjab rather generate steam from low-pressure
boilers to meet the process requirements and depend on the state grid for their power requirements.
This is evident from the fact that out of total co-generation potential of 150 MW in the industry
(apart from sugar industry) in the state, none has been tapped10. The project proponent had an
alternative to continue to purchase power from PSEB and could have invested the money (used to
install cogeneration plant) for enhancing the installed capacity of the woollen mill which would
have delivered assured higher returns in view of favourable market for textile industry in Punjab. In
spite of these factors, OWML is one such entrepreneur to initiate this GHG abatement project under
Clean Development Mechanism. It is ascertained here that, if OWML is successful in securing the
proposed carbon financing, it will help in offsetting this barrier and encourage other entrepreneurs
to come up with similar project activities.

Barriers due to prevailing practice

Analysis of power data of Punjab state shows that installed capacity is dominated by thermal (63.18
%) and hydro (32.71 %) power. Also capacity additions worth 1168 MW are planned during the X
five year plan11 which contains 2 x 500 MW coal based thermal power plants and 168 MW hydro
power plant.
As per Punjab government the power generation potential from biomass in the state is of the order
of 1000 MW out of which only 20.5 MW (about 2 %) has been tapped. OWML will be among the
first few organisations in the textile sector in Punjab to set up a rice husk based cogeneration plant.

9
    1 Euro = INR 55.0
10
     http://punjabgovt.nic.in/Industry/ind557.htm
11
     http://powermin.nic.in/power-profile-NR_files/v3_document.htm
This illustrates the low penetration of such projects and little willingness to change the current
operating practice in the region. Implementation of the project activity is a voluntary step
undertaken by OWML with no direct or indirect mandate by law or promotional policies.

Other Barriers

Energy is not a core business of OWML. They are mainly manufacturers of woolen, blended and
acrylic yarns. The rice husk based cogeneration project activity is a steep diversification from the
core business fields to power sector economics, where the project proponent has to meet challenges
of techno-commercial problems associated with the project activity.
It is estimated that, of the total textile mills in Punjab, only a few are successful in commissioning
of the plant due to some of the above-mentioned barriers. Moreover, Punjab’s textile industry does
not any incentive to invest in high efficiency biomass cogeneration for electricity generation in the
future. In such circumstances they will continue to use rice husk for in-efficient burning in low
pressure boilers with no electricity generation.
The information on the state of rice husk-based cogeneration suggests that the barriers discussed are
sufficient to hinder growth of the sector. While the country has a clean energy strategy, the reality
is that coal will continue to dominate in the near term and the textile industry will burn rice husk in
inefficient boilers unless financial incentives, such as carbon financing, exist.

Step 2: Baseline scenario and corresponding GHG reduction

The business as usual (BAU) for the textile industry in Punjab is not the project activity but to
continue with the industry’s status quo, which is to burn rice husk in inefficient, low pressure
boilers for process steam and depend on state grid for their power requirements.
This project activity is a renewable energy project with net zero CO2 emission due to the carbon
sequestration. Paddy re-grows at the same rate as it is being harvested, and acts as a sink for
atmospheric carbon dioxide and the net flux of CO2 to the atmosphere is zero. An analysis of the
state grid generation mix gives the baseline emission factor of 0.85 kgCO2/kWh for the grid, and
the 222,670 tonnes of CO2 emission reductions that the proposed activity will reduce over a
period of 10 years.
In view of the above mentioned prohibitive barriers and GHG emission reductions, it is understood
that the project activity is additional.

B.4 Description of the project boundary for the project activity:
As mentioned under Type I.C. of ‘Annex-B of the simplified modalities and procedures for small-
scale CDM project activities’, 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 woolen mill 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. However, for the purpose of calculation of baseline emissions, Punjab state electricity
grid is also included in the boundary.

Flow chart and project boundary is illustrated in the following diagram:
      Project
                 Biomass
     Boundary    Source




                 Biomass
                 Biomass
                 Source
                 Storage

                                   Emission
                                   Generated

                 Biomass fired
                    Boiler

                                   Emission
                                  Sequestered

                   Power
                  Generation
                    Unit


Electricity to                     Auxiliary
Woolen Mill                      Consumption




                                   Steam for
                                    Process
                                 Requirement at
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 state grid has been considered as the baseline since the project activity will avoid the use of
fossil fuel by existing thermal power plants for supply of power to OWML. The baseline
methodology specified in the para 29 of the Appendix B of the Simplified M&P for small scale
CDM project activities ‘The average of the approximate operating margin and the build margin’ of
Punjab is used for the calculation of baseline.
The calculation of the Emission Factor and corresponding CO2 emission reductions have been done
in an excel sheet which is enclosed as Enclosure A and the same has been explained in Section E.
Baseline data has been provide in Annex 3

B.5.2 Date of completing the final draft of this baseline section (DD/MM/YYYY):

August 2004

B.5.3 Name of person/entity determining the baseline:
Oswal Woolen Mills Limited
GT Road, Sherpur
Ludhiana-141003
Punjab
India

The person/entity is also a project participant as listed in Annex 1 of this document.
C. Duration of the project activity and crediting period

C.1 Duration of the project activity:

       C.1.1 Starting date of the project activity:

       September 2004

       C.1.2 Expected operational lifetime of the project activity:

       25 years

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

       C.2.1 Renewable crediting period

               C.2.1.1 Starting date of the first crediting period:

               C.2.1.2 Length of the first crediting

       C.2.2 Fixed crediting period:

               C.2.2.1 Starting date: July 2005

               C.2.2.2 Length (max 10 years):

               10 years
D. Monitoring methodology and plan


D.1 Name and reference of approved methodology applied to the project activity:

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. is considered
as basis for monitoring methodology for the project activity. The document states that the
monitoring shall consist of metering the electricity generated by the renewable technology through
co-generation plant.

D.2 Justification of the choice of the methodology and why it is applicable to the project
activity:

As established in Section A.4.2 the project activity falls under Category I.C. Generation of
electricity for captive consumption using rice husk as fuel in OWML’s cogeneration plant will lead
to mitigation of GHG emissions from the fossil fuel based plants, which supply power to PSEB
grid. In order to monitor the mitigation of GHG due to at the project activity at OWML, the total
electricity produced and auxiliary consumption need to be measured. The net electricity supplied to
manufacturing facility of OWML by the project activity multiplied by emission factor for the grid
will form the baseline for the project activity.

Description of monitoring plan

The project activity will have two separate meters to record the gross power produced, auxiliary
power consumed and net electricity supplied. The monitoring and verification system would mainly
comprise of these meters as far as power supplied to woolen mill is concerned. The rice husk input
is also to be monitored. Quantity of coal will also be monitored when used.
These monitoring and controls will be the part of the DCS/SCADA of the entire plant. All
monitoring and control functions will be done as per the internally accepted standards of OWML.
All instruments will be calibrated and marked at regular intervals so that the accuracy of
measurement can be ensured all the time. The quantity of emission reduction claimed by the project
will only be a fraction of the total generated emissions, which depends on the actual generation mix
of the grid
GHG SOURCES

Direct On-Site Emissions

Direct on-site emissions after implementation of the project arise from the combustion of biomass
in the boiler. These emissions mainly include CO2. However, the CO2 released is very less as
compared to the amount of CO2 taken up by the biomass during growing, therefore no net
emissions occur.

Direct Off-Site Emissions

Direct off-site emissions in the proposed project arise from the biomass transport. The same type of
CO2 emission (leakage) occurs during transportation of coal from coal mines to respective power
plants and distance between the coal mine12 and power plant is much higher as compared to the
average transportation distance considered between project site and biomass collection centres and
hence higher CO2 emissions.

Indirect On-Site Emissions

The indirect on site GHG source is the consumption of energy and the emission of GHGs involved
in the construction of rice husk based power plant.

Considering the life of the cogeneration plant and the emissions to be avoided in the life span,
emissions from the above-mentioned source is too small and hence neglected.

No other indirect on-site emissions are anticipated from the project activity.

Project Parameters affecting Emission Reduction

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
woolen mill (and then multiplying with appropriate emission factor) it becomes important for the
project activity to monitor the net power supplied to the woolen mill on real time basis.
Net emission reductions also depend on the leakage estimated due to firing of coal in case of
exigencies. Hence the second important thing is to monitor the quantity of coal used and quantify
the power contribution from the same.

12
     Coal mines situated in Bihar, Madhya Pradesh and West Bengal
Frequency of monitoring

The project developer will install all metering and check metering facilities within the plant
premises. The measurement will be recorded and monitored on a continuous basis by the project
developer.

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 incharge will be responsible for data recording and the plant manager will ensure that data
is recorded continuously and is archived properly. Also the shift incharge will under go an
induction programme including plant operations, data monitoring, report generation etc.

Registration and reporting

Registration of data is on-line. 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 rice husk and coal

Fuel related parameters:

Quantity of Rice husk used in the boiler as fuel

The rice husk received from the rice mills will be stored in the plants storage area specially
designed for such storage. The amount of rice husk entering the plant will be measured and records
of the same will be maintained. The weighing system needs to be calibrated regularly to ensure the
accuracy of the measurement. The data will be recorded for further verification. The amount of rice
husk purchased, will be based on invoices / receipts from fuel contractors. The amount of rice husk
fed to the boiler will also be measured/ monitored through level assessment at the bunkers.
Quantity of the coal used in the boiler as fuel

Coal demands a similar monitoring system in place for the amount of coal fired.

Quality of Rice husk used in the boiler
The main type of fuel proposed for the power generation is only rice husk. The properties of the
rice husk from ultimate analysis-calorific value, ash compositions etc. are already established and
will be consistent in the region.

Quality of coal fired in the boiler

The properties of the coal from ultimate analysis - calorific value and composition etc. will depend
on the quality of coal received.

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 DCS/SCADA.

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 DCS/SCADA. The
total quantum of electricity consumed by the auxiliaries would affect the total electricity supplied to
the woolen mill and therefore the amount of GHG reductions.

Electricity exported to the woolen mill

Net electricity exported to wolen mill would depend on total electricity generated and auxiliary
consumption.
All the above parameters / factors will demonstrate the performance of the project at any point of
time.

Verification

The performance of the rice husk based power project leads to CO2 emission reductions. In other
words, the longer the power plant runs and supplies power to woollen mill, more would be the
emission reductions. Fully functional management information systems will be built in
DCS/SCADA so that accessing and verification of actual data are possible at any point of time. The
major activities to be verified are as under

    •   Verification of various measurement and monitoring methods

    •   Verification of instrument calibration methods

    •   Verification of data generated by DCS/SCADA

    •   Verification of measurement accuracy
D.3 Data to be monitored:
          a) Parameters affecting the emission reduction potential of the project activity
    ID     Data type   Data variable    Data unit    Measured       Recording      Proportion     How will the     For how             Comment
    No.                                                 (m),        frequency     of data to be     data be         long is
                                                     calculated                    monitored       archived?      archived
                                                       (c) or                                     (electronic/    data to be
                                                     estimated                                       paper)          kept?
                                                         (e)
1         Energy       Total              kWh            M          continuous        Total        Electronic      Crediting    Measured in plant
                       electricity                                                                                  Period      premises and
                       generated                                                                                 (CP)+2 years   monitored and
                                                                                                                                recorded continuously
                                                                                                                                through DCS/SCADA.
2         Energy       Auxiliary          kWh            M          continuous        Total        Electronic    CP+2 years     -do-
                       consumption
3         Energy       Power              kWh            M          continuous        Total        Electronic    CP+2 years     -do-
                       supplied    to
                       woolen mill
       b) Fuel related parameters affecting the project activity
ID    Data type     Data variable     Data       Measured           Recording   Proportion      How will the     For how           Comment
No                                    unit          (m),            frequency    of data to        data be        long is
 .                                             calculated (c)                        be           archived?     archived
                                               or estimated                     monitored        (electronic/     data to
                                                     (e)                                            paper)       be kept?
1    Fuel           Type of fuel     MT        M                   Daily        >95%          Electronic        CP+2        To be monitored at
     Quantity       used                                                                                        years       purchase and usage.
                    - rice husk
                    - coal

2    Fuel Quality   Net calorific    TJ/ton    M                   Yearly       -             Electronic        CP+2
                    value of fuels                                                                              years
                    used
                    - rice husk
                    - coal
3    Fuel Quality   CO2 emission     Ton       -                   Yearly       -             Electronic        CP+2        IPCC value to be
                    coefficient of   CO2/TJ                                                                     years       considered
                    coal
        c)    Relevant data necessary for determining the baseline of anthropogenic emissions by sources of GHG within the project
        boundary and identification if and how such data will be collected and archived.

  ID          Data        Data        Data unit        Will data be           How is data         For how long is                Comment
number        type       variable                    collected on this         archived?           data archived
                                                       item? (If no,       (electronic/paper)       to be kept?
                                                         explain).


Not applicable

        d) Quality control (QC) and quality assurance (QA) procedures are being undertaken for data monitored. (data items in tables
        contained in section D.3 (a to c) above, as applicable)

 Data       Uncertainty level of       Are QA/QC                         Outline explanation why QA/QC procedures are or are
                     data              procedures                                            not being planned.
            (High/Medium/Low)          planned for
                                       these data?

D.3.(a)1             Low                   Yes          This data will be used for calculation of emission reductions by project activity.

D.3.(a)2             Low                   Yes          This data will be used for calculation of emission reductions by project activity.

D.3.(b)1             Low                   Yes          This data will be used as supporting information to calculate emission reductions by project
                                                        activity.

D.3.(b)2             Low                   Yes          This data will be used as supporting information to calculate emission reductions by project
                                                        activity
  Data       Uncertainty level of        Are QA/QC                           Outline explanation why QA/QC procedures are or are
                     data                 procedures                                         not being planned.
             (High/Medium/Low)           planned for
                                          these data?

D.3.(b)3              Low                     No           Standard IPCC values are used




D.4      Name of person/entity determining the monitoring methodology:
Oswal Woolen Mills Limited

The person/entity is also a project participant as listed in Annex 1 of this document.
E. Calculation of GHG emission reductions by sources

E.1 Formulae used:

E.1.1 Selected formulae as provided in Appendix B:

Since category I.C. 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.1.2.1Describe 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 activity leads to GHG on-site emissions in the form of CO2 emissions from combustion
of rice husk
The CO2 emissions from rice husk combustion process will be consumed by the paddy plantations,
representing a cyclic process of carbon sequestration. Since the husk contains negligible quantities
of other elements like Nitogen, Sulphur etc. release of other GHG emissions are considered
negligible. GHG emissions during on-site construction work will be negligible and are not
accounted for. Similarly emissions associated with transportation of construction materials are
ignored.
In case of exigencies of biomass fuel scarcity, OWML proposes to use coal as fuel.
However as mentioned earlier, in the last 10 years of the operation of the existing boilers, OWML
has never faced any shortage of rice husk. 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:

Tonnes of CO2 = Quantity of coal used in tonnes x Net calorific value of coal x CO2 emission
coefficient of coal in kg CO2/TJ (IPCC value)

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

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.
As prescribed in Appendix B of the Simplified Modalities and Procedure for small-scale CDM
project activities, for Category I.C leakage estimation is only required if renewable energy
technology is equipment transferred from another activity. This does not apply to the project case.
However, the only source of leakage activity identified, which contributes GHG emissions outside
the project boundary is transportation of rice husk from the supplying rice mills within a 50 km
radius to OWML.

The same type of GHG emissions occur during transportation of coal from coal mines in Bihar,
West Bengal and Madhya Pradesh to respective thermal power plants in Punjab. Since the distance
between the coalmines and power plant (avg. 1500 kms.) is much higher as compared to the
transportation distance of rice husk, the GHG emissions are higher in the earlier case. Considering
the transportation leakages for the 2 fuels, there is a net positive addition on the baseline emission
which will result in net increase in CO2 reduction from the project. To be on conservative side, this
CO2 emission due to coal transportation and husk transportation has not been considered while
calculating the baseline emissions and project emissions respectively.

E.1.2.3 The sum of E.1.2.1 and E.1.2.2 represents the 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:

PSEB grid supplying power to OWML has been considered as the baseline. Punjab’s present power
generation mix has been used to arrive at the net carbon intensity/baseline factor of the chosen grid.
As per the provisions of the proposed methodology the emission coefficient for the electricity
displaced would be calculated in 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 average of the approximate operating margin and the build margin
The step-by-step calculation of base line emission is as follows:

       Step 1         :      Thermal          efficiency =   35.51 %
                             of coal based power
                             plants
       Step 2         :      Thermal          efficiency =   50 %
                             of gas based power
                             plants
       Step 3         :      CO2 emission factor =           96.10 kg CO2 / GJ
                             for coal
       Step 4         :      CO2 emission factor =           56.10 kg CO2 / GJ
                             for gas
       Step 5         :      Actual           emission =     CO2 emission factor for coal/
                             factor for coal                 Thermal efficiency of coal based
                                                             power plants (kg CO2/kWh)
       Step 6         :      Actual           emission =     CO2 emission factor for gas/
                             factor for gas                  Thermal efficiency of gas based
                                                             power plants (kg CO2/kWh)
       Step 7         :      Net emission factor =           Actual emission factor for coal x
                             for coal                        % of generation by coal out of
                                                             total      generation           excluding
                                                             renewable,       hydel    and      nuclear
                                                             power generation (kg CO2/kWh)
       Step 8         :      Net emission factor =           Actual emission factor for gas x
                             for gas                         % of generation by gas out of total
                                                             generation excluding renewable,
                                                             hydel      and      nuclear            power
                                                             generation (kg CO2/kWh)
       Step 9         :      Net operating margin =          Net emission factor for coal + Net
                             factor for grid                 emission       factor    for     gas     (kg
                                                             CO2/kWh)
       Step 10               Net      built     margin =     Weighted average emissions of
                             factor for grid                 recent     5     plants        built     (kg
                                                             CO2/kWh)


       Step 11               Combined           margin =     (Net operating margin factor for
                             factor                          grid + Net built margin factor for
                                                             grid)/2 (kg CO2/kWh)
       Step 12        :      Units consumed at =          Total Energy generation –Total
                             OWML                         auxiliary consumption.


       Step 13        :      Baseline emission       =    Combined margin factor for grid x
                                                          Units consumed at OWML

Since there is a gap between demand and supply in Punjab, the power supplied to OWML in the
non-project scenario can be diverted to other utilities, in the project scenario. Hence the generation
of power at OWML from the project activity will partially fulfill the power requirement for the state
of Punjab.
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 combined margin factor.
Detailed calculation has been shown in Enclosure A.

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:

Following formula is used to determine Emission reduction
 CO2 emission reduction                   Baseline emission                Project Activity
                                =                                  –
 due to project activity                                                      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 year crediting period have been calculated and tabulated as under.
Table 1 Emission Reductions

  Sr.      Operating        Net Baseline          Baseline          Project            Emission
                           Emission Factor                          activity          Reductions,
  No.         Years                              Emissions
                             (Kg of CO2 /                          Emissions      (Tonnes of CO2)
                                                 (Tonnes of
                                kWh)
                                                   CO2)            (Tonnes of
                                                                     CO2)
   1.       2005-2006            0.85              22,267               0               22,267
   2.       2006-2007            0.85              22,267               0               22,267
   3.       2007-2008            0.85              22,267               0               22,267
   4.       2008-2009            0.85              22,267               0               22,267
   5.       2009-2010            0.85              22,267               0               22,267
   6.       2010-2011            0.85              22,267               0               22,267
   7.       2011-2012            0.85              22,267               0               22,267
   8.       2012-2013            0.85              22,267               0               22,267
   9.       2013-2014            0.85              22,267               0               22,267
  10.       2014-2015            0.85              22,267               0               22,267
                                Total             222,670               0              222,670

Therefore a conventional energy equivalent of 261.12 Million kWh for a period of 10 years in
Punjab would be saved by generating power from the 3.5 MW Biomass based power plant which in
turn will reduce 222,670 tonnes of CO2 emissions considering baseline calculations.
F. Environmental impacts

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

The project does not fall under the purview of the Environmental Impact Assessment (EIA)
notification of the Ministry of Environment and Forest, Government of India.
However the design philosophy of this cogeneration project activity is driven by the concept of
providing the low cost energy with acceptable impact on the environment hence the environment
and safety aspects of the project activity are discussed as follows:

Particulate matter and gases

The elements polluting the air that are discharged from the proposed 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 proposed for the plant steam generator to contain the dust
emission from plant to a level of less than 115 mg/Nm3. The proposed Electrostatic Precipitator will
be designed such that the dust concentration at the ESP outlet will be 115 Mg/Nm3, even during the
plant firing Coal in future. Adequate height of the stack for the 25 TPH, 67 kg/m2, 485 oC Rice
husk fired boiler, which disburses the pollutants has been provided as per guidelines given by the
pollution regulations, for dust and sulphur-di-oxide emissions into the atmosphere.
The temperatures encountered in the AFBC 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 ash will be collected manually by using Trolleys. The dry fly ash from the economiser, air
heater and ESP hoppers will be collected by dense phase ash handling system and stored in ash
bunker, will be used for land filling in the nearby lowland areas. Provision will be made in the
system for water spray to eliminate dust nuisance in the plant.

Wastewater

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

Chlorine in cooling water: In the condenser cooling water, residual chlorine of about 0.2 ppm is
maintained at the condenser outlet. This chlorine dosing is done mainly to prevent biological
growth in the cooling tower system. This value would not result in any chemical pollution of water
and also meets the national standards for the liquid effluent.

Steam generator blow down: pH of the blow down water would be in the range of 9.8 to 10.2 and
the temperature will be about 85oC. The quantity of blow down from the boiler is about 361 kg/hr,
but however, part of this will be flashed in the blow down tank and the flashed steam will be taken
to the deaerator for supplementing the steam supplied for deaerating the boiler feed water. Hence,
the actual blow down water to be released to the drains will be about 230 kg/hr and the temperature
will be about 60oC. As this quantity is very small, it is proposed to put the blow down into the
trench and leave it in the plant sewerage system.

Sewage from various buildings in the plant: Sewage from various buildings in the power plant area
will be conveyed through separate drains to the septic tank. The effluent from the septic tank will
be disposed in soil by providing disposing trenches. There will be no ground pollution because of
leaching due to this. Sludge will be removed occasionally and disposed off as landfill at suitable
places.
Thermal pollution: A close circuit cooling water system with cooling towers has been proposed.
This eliminates the letting out of high temperature water into the canals and prevents thermal
pollution. Blow down from the cooling tower will be trenched out and ultimately conveyed to the
drainage. Hence, there is no separate pollution on account of blow down from cooling water
system.

Noise pollution: The rotating equipment in the Power plant will be designed to operate with a total
noise level of not exceeding 90 db (A) as per the requirement of Occupational Safety and Health
Administration (OSHA) Standards. The rotating equipments are provided with silencers wherever
required to meet the noise pollution.

Monitoring

The characteristics of the effluents from the proposed plant will be monitored and maintained so as
to meet the requirements of State Pollution Control Board and the minimum national standards for
effluent from thermal power plants. Air quality monitoring will also be undertaken to ensure that
the dust pollution level is within limits.

Air Quality Monitoring Programme:

The purpose of air quality monitoring is the acquisition of data for comparison against the
prescribed minimum standards and thereby assure that the air quality is maintained within the
prescribed levels.
The following will be monitored from the stack emissions:
          Suspended Particulate Matter.
It is proposed to monitor the particulate emission at the stack , once in six months to keep a
continuous check on the performance of the ESP. Adequate sampling openings will be provided in
the stack.
G. Stakeholders comments

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

The 3.5 MW biomass (rice husk) based cogeneration plant is implemented by OWML. The project
activity will use biomass that is abundantly available.
The various stakeholders identified for the project activity are as under
    1. Punjab Pollution Control Board
    2. Councillor, Municipal Corporation of Ludhiana
    3. Industrial associates
    4. Consultants
    5. Equipment suppliers
Stakeholders list includes the government and non-government parties, which are involved in the
project activity at various stages. At the appropriate stage of the project development, stakeholders /
relevant bodies were involved to get the clearance

G.2 Summary of the comments received:

Stakeholders Involvement

The local community mainly comprises of other industrial associates around the project area. In
addition to this, it also includes local manpower since, the project activity will provide direct and
indirect employment opportunities to local populace thus encouraging the project activity.
The project activity will not cause any displacement or adverse social impacts on the local
population but will help in improving the quality of life for them.
Punjab State Pollution Control Board (PSPCB) has prescribed standards of environmental
compliance and monitor the adherence to the standards. OWML is in the process of getting NOC
from the PSPCB
Projects consultants are to be involved in the project activity to take care of the various pre contract
and post contract issues / activities like preparation of basic and detailed engineering documents,
preparation of tender documents, selection of vendors / suppliers, supervision of project operation,
implementation, successful commissioning and trial run.
The project proponent has received comments from its industrial associates and the area councilor,
who have communicated their appreciation for such an effort on OWML’s part. They have no
objection to the installation of the proposed co-generation plant. The copies of the comments
received from the stakeholders would be shared with the validator during validation

G.3 Report on how due account was taken of any comments received:

The relevant comments and important clauses mentioned in the project documents / clearances like
Feasibility Report, local clearances etc. were considered while preparing the CDM Project Design
Document.
As per UNFCCC requirement the PDD will be published at the validator’s web site for public
comments.
                                    Annex 1

    CONTACT INFORMATION FOR PARTICIPANTS IN THE PROJECT ACTIVITY



Organization:      Oswal Woolen Mills Limited
Street/P.O.Box:    G.T. Road, Sherpur
Building:          --
City:              Ludhiana
State/Region:      Punjab
Postcode/ZIP:      141003
Country:           India
Telephone:         91-161-542501-07
FAX:               91-161-542509
E-Mail:            oswal@owmnahar.com
URL:
Represented by:
Title:             Financial Controller
Salutation:        Mr.
Last Name:         Sood
Middle Name:       M
First Name:        R
Department:        (Finance)
Mobile:            09814123544
Direct FAX:        --
Direct tel:        --
Personal E-Mail:    rmsood@owmnahar.com
                                            Annex 2

                     INFORMATION REGARDING PUBLIC FUNDING

No public funding as part of project financing from parties included in Annex I is involved in the
project activity.
                                              Annex 3

                                           Base line data

Carbon emission factor of grid

Punjab’s present generation mix, sector wise installed capacities, thermal efficiency, and emission
co-efficient are used to arrive at the net carbon intensity/baseline factor of the chosen grid. As per
the provisions of the methodology the emission coefficient for the electricity displaced would be
calculated in accordance with provisions of paragraph 29 of Appendix B of Draft Simplified
Modalities and Procedures for Small Scale CDM Project Activities for grid systems.

The provisions of paragraphs 29 of Appendix B requires the emission coefficient (measured in kg
CO2equ/kWh) to be calculated in a transparent and conservative manner as:

    (a) The average of the “approximate operating margin” and the “build margin” (or combined
        margin)

        OR

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

Complete analysis of the electricity generation has been carried out for the calculation of the
emission coefficient as per point 29 (a) given above.

Combined Margin

The baseline methodology suggests that the project activity will have an effect on both the
operating margin (i.e. the present power generation sources of the grid, weighted according to the
actual participation in the state grid mix) and the build margin (i.e. weighted average emissions of
recent capacity additions) of the selected grid and the baseline emission factor would therefore
incorporate an average of both these elements.
Operating Margin

The “approximate operating margin” is defined as 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;

The project activity will have some effect on the Operating Margin (OM) of the Punjab State Grid.
The carbon emission factor as per the Operating Margin takes into consideration the power
generation mix of 2002-2003 excluding hydro, geothermal, wind, low-cost biomass, nuclear and
solar generation of the selected grid, thermal efficiency and the default value of emission factors of
the fuel used for power generation.

The consumer of a state of Punjab gets a mix of power from the different sources. The figures of
installed power capacity, share of the state in the central pool, and actual plant availability decides
the content of power. The real mix of power in a particular year is however based on actual units
generated from various sources of power. PSEB is operating major thermal and hydel power
stations in Punjab. The state also gets share from the central sector generation plants and interstate
power projects. The data collected and used are presented in Tables 2.1 to 2.4.

The most important parameter in estimating the emissions is the thermal efficiency of the power
plant. As per the CEA report, it is assumed that all the coal & lignite based plants coming up in
tenth & eleventh & plan will use pulverized coal sub-critical / super critical pressure technology
with the thermal efficiency of around 34%. The percentage of carbon that is not burnt is very low
and, hence, complete combustion was assumed. The thermal efficiency of existing old power plants
is less than 30% and for new modern power plants it is expected to be around 34%. Central
Electricity Authority has presented the analysis of Station Heat Rates (SHR) for 43 thermal power
plants using coal, in India, in the report ‘Performance Review of Thermal Power Stations 2003-04
Section 13’13. As per this report ‘Lehra Mohabbat’, a plant located in Punjab has the highest
efficiency of 35.51 % among all the coal based power plants in Northern India. Hence the
efficiency of ‘Lehra Mohabbat’ thermal power plant has been considered for the calculations.
Average efficiency of gas based thermal plants as against the standard norms works out to be
around 40-45% On conservative basis average efficiency for base line calculations is considered as
50%. Standard emission factors given in IPCC for coal and gas (thermal generation) are applied
over the expected generation mix and net emission factor is determined.

13
     http://cea.nic.in/opm/0304/sec-13_sush777.pdf
The formulae are presented in Section-E and the calculations are presented in an excel sheet as
Enclosure A. Carbon Emission Factor of grid as per OM is 0.91 kg CO2/kWh electricity generation.

Build Margin

The “build margin” emission factor 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.

The project activity will have some effect on the Build Margin (BM) of the Punjab State Grid. The
baseline factor as per the Build Margin takes into consideration the delay effect on the future
projects and assumes that the past trend will continue in the future.     For our build margin
calculation we would take into consideration 5 most recent plants built in Punjab given in Table-
2.5. The thermal efficiencies of coal and gas based plants for calculating build margin have been
assumed same as that for calculating operating margin. Carbon Emission Factor of grid as per BM
is 0.80 kg CO2/kWh electricity generation.

 Net Carbon Emission Factor Grid for 2002-2003 as per CM = (OM + BM)/2 = 0.85 kg of CO2 /
 kWh generation respectively. (Refer to Excel Sheet Enclosure A and B).
Table 2 Grid data for calculation of baseline emission factor of grid for 2002-0314

Table 2.1: Power Generation Mix of Punjab from the State Generating Stations (net generation)
Sr. No.       Energy Source                                                     2002-2003 (MkWh)

I.            Punjab State
1.            Thermal (coal)
              GNDTP, Bhatinda                                                           2266
              GGSTP, Ropar                                                              7565
              GHTP, Lehra Mohabat                                                       2646
A.            Thermal (Coal) Total                                                     12477
2.            Thermal (Gas)
B.            Thermal (Gas) Total                                                         0
C.            Thermal (Coal & Gas)Total:                                               13650
3.            Hydro
              Shanan                                                                    469
              UBDC                                                                      394
              Anandpur Sahib                                                            750
              Mukerian                                                                  795
              RSDHEP                                                                    1151
              Micro Hydel                                                                 9
D.            Hydro Total                                                               3446
F.            State Sector Total                                                       17217




14
     Source: Punjab State Electricity Regulatory Commission (PSERC)-tariff order for PSEB-FY2003-04
Table 2.2: Power Generation Mix of Punjab from the Central Generating Stations
Sr No Energy Source                                                2002-2003 (MkWh)

II.     Punjab’s share in Central Schemes
1.      Thermal (Coal)
        Dadri thermal                                                    75
        Singrauli                                                       1622
        Rihand                                                          908
        Unchahar-I                                                      352
        Unchahar-II                                                     445
A.      Thermal (Coal) Total                                            3402
2.      Thermal (Gas)
        Anta                                                            357
        Auraiya                                                         685
        Dadri gas                                                       973
B.      Thermal (Gas) Total                                             2015
C.      Total Thermal (Coal & Gas)                                      5417
3.      Hydel
        Salal                                                           832
        Bairasuil                                                       307
        Tanakpur                                                         59
        Chamera-I                                                       232
        Uri                                                             333
D.      Total Hydro                                                     1763
4.      Nuclear
        NAPP                                                            363
        RAPP                                                            101
E.      Total Nuclear                                                   464
F.      Central Sector Total                                            7644
Table 2.3: Power Generation Mix of Punjab from the Power Stations in Partnership Projects
Sr No Energy Source                                                2002-2003 (MkWh)
III.      Punjab’s share in Partnership Projects
1.        Hydel
          BBMB Projects                                                                  4515


Table 2.4: Power Generation Mix of Punjab from Other Sources
Sr No Energy Source                                                               2002-2003 (MkWh)

II.       Other Sources
1.        Co-generation                                                                     78
2.        Banking                                                                          467
3.        PTC                                                                              126
4.        Net UI                                                                            98
5.        Western region                                                                    6
A.        Total                                                                           77515

Table 2.5: Five most recent plants built in Punjab
Sr.        Year of            Energy Source                      Generation           CO2 Emission
No.    Commissioning                                              (MkWh)                  Factor
                                                                                        (kg/kWh)
                            Thermal
I.           1997           GHTP, Lehra Mohabat                     1323                  0.973
                            (Unit 1)
             1998           GHTP, Lehra Mohabat                     1323                  0.973
                            (Unit 2)
             1992           GGSTP, Ropar (Unit 5)                   1261                  0.973
             1993           GGSTP, Ropar (Unit 6)                   1261                  0.973
                            Hydel
II.          2002           Ranjit Sagar Dam                        1151                     0




15
  Due to lack of information and to be on conservative side, this quantity has been taken as renewable energy
for calculation of emission factor for the grid
Appendix A : Abbreviations

 AFBC            Atmospheric fluidized bed combustion
 atm             Atmosphere
 BBMB            Bhakara Beas management board
 CDM             Clean development mechanism
 CEA             Central electricity authority
 CO2             Carbon dioxide
 DCS             Distributed control system
 dB              Decibel
 DPR             Detailed project report
 ESP             Electrostatic precipitator
 GGSTP           Guru Gobing Singh super thermal Plant
 GHG             Greenhouse gas
 GHTP            Guru Hargobind thermal power plant
 GJ              Giga joule
 GNDTP           Guru Nank Dev thermal plant
 IPCC            Inter governmental panel on climate change
 kg              Kilogram
 km              Kilometer
 kV              Kilo volt
 kW              Kilo watt
 kWh             Kilo watt hour
 mg              Milligrams
 MU              Million units
 MW              Mega watt
 Nm   3
                 Normal meter cube
 OWML            Oswal woolen mills ltd.
 PDD             Project design document
 PEDA            Punjab energy development agency
 ppm             Parts per million
 PSEB            Punjab state electricity board
 PSPCB           Punjab State Pollution Control Board
 RSDHEP          Ranjit Sagar dam hydro electric project
 T               Tonne
 TDS             Total dissolved solids
 TPH             Tonne per hour
 UNFCCC          United Nations Framework Convention on Climate Change
V                  Volt




                                 Appendix B: List of References

Sl. No.                                Particulars of the references
    1.    Kyoto Protocol to the United Nations Framework Convention on Climate Change
    2.    Website of United Nations Framework Convention on Climate Change (UNFCCC),
          http://unfccc.int
    3.    UNFCCC document: Clean Development Mechanism, Simplified Project Design
          Document For Small Scale Project Activities (SSC-PDD), Version 01 (21 January,
          2003)
    4.    UNFCCC document : Simplified modalities and procedures for small–scale clean
          development mechanism project activities
    5.    UNFCCC document: Indicative simplified baseline and monitoring methodologies for
          selected small-scale CDM project activity categories, Version 02, 2nd December 2003
    6.    UNFCCC document: Determining the occurrence of debundling
    7.    Statistics of Punjab State Electricity Board
    8.    Power sector profile for Northern region as on 30.04.04-Ministry of Power
    9.    Website of Ministry of Power (MoP), Govt. of India www.powermin.nic.in
    10. Feasibility Report of OWML, Cogeneration Project
    11. Paper on ‘Rice Processing Industry in Punjab: Problems and their Remedies’ published
        in Ind. Jn. of Agri. Econ., Vol.58, No.3, July-Sept 2003


    12. http://www.owmnahar.com/index.html
    13. http://punjabgovt.nic.in/Industry/ind557.htm (PEDA)
    14. http://www.psebindia.org/pseb.htm
    15. http://www.tribuneindia.com/2004/20040408/biz.htm

								
To top