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									                    PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02

CDM – Executive Board                                                                                   page 1


                              CLEAN DEVELOPMENT MECHANISM
                          PROJECT DESIGN DOCUMENT FORM (CDM-PDD)
                                Version 02-in effect as of: 1 July 2004

                                                    CONTENTS

         A.       General description of project activity

         B.       Application of a baseline methodology

         C.       Duration of the project activity / Crediting period

         D.       Application of a monitoring methodology and plan

         E.       Estimation of GHG emissions by sources

         F.       Environmental impacts

         G.       Stakeholders’ comments

                                                       Annexes

         Annex 1: Contact information on participants in the project activity

         Annex 2: Information regarding public funding

         Annex 3: Baseline information

         Annex 4: Monitoring plan




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                    PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02

CDM – Executive Board                                                                                   page 2

SECTION A. General description of project activity

A.1      Title of the project activity:

HFC23 Decomposition Project at Zhonghao Chenguang Research Institute of Chemical Industry, Zigong,
SiChuan Province, China

Version 5.0 – March 26th, 2007

A.2.     Description of the project activity:

The project activity primarily aims at reducing HFC23 (CHF3) emissions by recovering and decomposing
this gas that is currently generated as an inevitable by-product of HCFC22 (CHClF2) production and
emitted to the atmosphere. HFC23 is not toxic. It is one of six greenhouse gases (GHG) controlled under
the Kyoto Protocol, with a very high Global Warming Potential (GWP) (GWP_HFC23=11,700 in the
IPCC second assessment Report). As far as we are aware, there is however no national or regional
regulations or restrictions on the emission of HFC23, and any market for HFC23 in China, where the
proposed project activity will be carried out. At present all the HFC23 in China is directly emitted to the
atmosphere.

Zhonghao Chenguang Research Institute of Chemical Industry (hereinafter referred to as “Chenguang”)
started experimentally its HCFC22 production with annual production capacity of 300 tons in 1970s and
this production unit has been already phased out. Currently, Chenguang has two HCFC22 production
units (Unit A and Unit B), with the total annual production capacity of 18,000 tons. Unit A was installed
and put in operation in 1998. Meanwhile Chenguang was expanding its production capacity by adding a
new second HCFC22 production Unit B to increase total HCFC22 production capacity by 12,000 tons
and it started operation in 2004. However, the destruction of the HFC23 emission reductions from the unit
B will not be included in the calculations of emission reductions for the proposed project, as the
methodology AM0001/Version 04 only covers the destruction of HFC23 waste streams from Unit A. The
actual annual production of Unit A was 5,433 tons in 2002, 5,887 tons in 2003 and 2,657 tons in 2004
respectively.

The project intends to decompose the HFC23 waste gas generated as a by-product of HCFC22 production
through the plasma technology at its plant in Zigong City, Sichuan Province. The application of this
plasma technology will reduce the GHG emissions, which would otherwise be directly emitted to the
atmosphere if the project were not carried out.

This proposed CDM project aims to contribute to the sustainable development in China, which will be
reflected in the following aspects:

        Contribute to the global initiatives towards mitigation of climate change through a reduction in
        GHG emissions in the said project;
        Facilitate testing and development of advanced technology for reduction of GHG emissions in
        China;
        Increase local revenue through redistribution benefits on account of the economic activities
        associated with the project, create jobs and employment, and accordingly promote the
        development of local economy.

Initial training and maintenance efforts will be conducted during the project period and this is elaborated
in other sections of this project design document (PDD) as well.




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CDM – Executive Board                                                                                   page 3



In conclusion, the implementation of this CDM project brings not only significant environmental benefits
through reducing GHG emissions, but economic benefits (CERs related revenue) to China. This will
contribute to sustainable development of China and facilitate to build a harmonious society.

A.3.       Project participants:

                                                                                       Kindly indicate if
       Name of Party involved              Private and/or public
                                                                                      the Party involved
                  (*)                           entity(ies)
                                                                                         wishes to be
       ((host) indicates a host           project participants (*)
                                                                                        considered as
                Party)                        (as applicable)
                                                                                      project participant
                                                                                           (Yes/No)
                                      Zhonghao Chenguang
   People’s Republic of China         Research Institute of Chemical                           No
                                      Industry

   Italy                              Enel Trade S.p.A.                                        No


China has signed the Kyoto Protocol on May 29, 1998 and ratified it on August 30, 2002.

In brief, the roles played by the project participants in above table are as follows:

Project Entity:

Zhonghao Chenguang Research Institute of Chemical Industry

Zhonghao Chenguang Research Institute of Chemical Industry (hereinafter referred to as “Chenguang”)
was founded in 1960s, located in the suburb of Zigong City, Sichuan province. The Chenguang’s
production base covers nearly 1,000,000 square meters, owns active employees of 2,886 (including
Society of Manufacturing Engineers(SME) of 1,197). Its products are designed and fabricated in line
with American Society of Testing Materials (ASTM) and national standards, certified by ISO9001 quality
management system in 2000. With a self-operational import/export licence, Distributed Control System
(DCS) in the production system, and realizes microcomputer management in its daily work. Recently,
over 20 new products have been successively rolled out and brought up to the international standards.
Chenguang has also enough competence to develop the new technology. Chenguang has successfully
made several technical innovations in their research and development(R & D) since the establishment.
Nowadays upon completion of restructuring to a tech-oriented enterprise in 1999, Chenguang has been
growing by 30% every year with its main economic indicators ranking high in the national new synthetic
materials industry.

Purchaser of CERs from the Project:

Generation and Energy Management Division -Business Area Energy Management
Enel Trade S.p.A

Enel is an energy company focused on the production, distribution and sale of electricity and the
distribution and sale of gas, and ranks as one of the largest energy producers in the world. Since 1999 it




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                    PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02

CDM – Executive Board                                                                                   page 4

has also been active in the telecommunications industry through Wind, a company with about 27 million
customers in fixed-line and mobile telephony, data transmission, and Internet.

Enel is present throughout Italy, supplying electricity to more than 30 million customers and gas to more
than 1 million and 850 thousand families. In the power business, Enel has 42,000 Megawatt of generating
capacity. The company also produces and sells electricity in other European countries (Spain, Russia,
Romania, Bulgaria, the Slovak Republic), North America (Canada, the United States) and Latin America
(Chile, Costa Rica, El Salvador, Guatemala).

The company has about 64,000 employees and operates 43 thermal plants, 495 hydro facilities, 31
geothermal plants, 18 wind farms and 5 photovoltaic plants, in addition to more than a million kilometres
of power units, in Italy and abroad.

Deeply committed to social and environmental responsibility (production from renewable sources
amounts to more than 31 million kWh), Enel was the first utility to enter the FTSE 4 Good Global 100, a
stock index comprising the 100 most important companies in the world that distinguish themselves by the
results achieved and the commitments made with regard to environmental and social sustainability. In
2004 the company was included in the Dow Jones Sustainability Index World.

Italy signed the Kyoto Protocol on April 29, 1998 and ratified it on May 31, 2002

The contact information of project participants is given in Annex1.

A.4.     Technical description of the project activity:

         A.4.1. Location of the project activity:

                  A.4.1.1. Host Party(ies):

                             People’s Republic of China

                  A.4.1.2. Region/State/Province etc.:

                             Sichuan Province

                  A.4.1.3. City/Town/Community etc:

                             Zigong City

                A.4.1.4. Detail of physical location, including information allowing the unique
identification of this project activity (maximum one page):

The proposed project is in Chenguang which is located in Fushun County of Zigong City. Zigong City is
in the southeast of Sichuan Province, stretched in between104°40′48″~105°15′52″east longitudes, and
28°55′37″~29°28′42″north latitudes. The City borders Neijiang City on the north, adjoins Yibing City
on the south, neighbours Leshan City on the west and Luzhou City on the east. (See Figure 1).




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CDM – Executive Board                                                                                   page 5

    Figure 1 Geographical Position Map of                          Figure 2 Geographical Position Map of
                  Sichuan                                                      Chenguang




Surroundings of the project of Chenguang are: 500m away north from Woniudang Village and 850m
away from Xujiawan Village, 420m away east from Yangjiaba Village and Guiyuan Village, and 300m
away west from living area in Hongqi Village and facing Tuo River on the south. (See Figure2 and 3).
The proposed project will be located in Chengguang’s HCFC22 facility. It neighbors the
erfluorocaprylic acid facilities on the east, faces the wastewater treatment facilities on the north, and the
boundary of the plant on the south and west.
                               Figure 3 Surroundings of the Proposed Project




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CDM – Executive Board                                                                                   page 6

         A.4.2. Category(ies) of project activity:

The project is principally categorized in: Sectoral Scope 11: “Fugitive Emissions from Production and
Consumption of Halocarbons and Sulphur Hexafluoride”.

         A.4.3. Technology to be employed by the project activity:

HCFC22 is manufactured through continuous reaction of anhydrous hydrogen fluoride (AHF) and
chloroform (CHCl3) that are introduced into the reactor, in the presence of the antimony pertachloride
(SbCl5) catalyst. HCFC22 and a small amount of HFC23 as well as HCl are generated in the reactor. The
production flow of HCFC22 and its by-products of HFC23 are given in Figure 4.
                                     Figure 4 HCFC22 Production Process


      Raw Materials
                                                                                                                 Product
              HF                                                               Separation/
 Anhydrous Hydrogen Fluoride                    Reaction                                                         CHClF2
                                                                           Purification Process
                                                                            分离纯化过程                               HCFC-22
                                                Process
            CHCl3
          Chloroform

                                                  HCl                               CHF3
                                           Hydrochloric Acid                        HFC-23

                                                                                 By-product
The main reaction in the HCFC22 Plant is:

                               2 HF + CHCl3 --> CHClF2 (=HCFC22) + 2 HCl

The chemical reaction generating HFC23 in the HCFC22 Plant is:

                                  3 HF + CHCl3 -->CHF3 (=HFC23) + 3 HCl

In above HCFC22 manufacturing process HFC23 is inevitably generated as a by-product. There is no
Chinese governmental regulation on the quantities of HFC23 that may be emitted to the atmosphere and
on the quantities of HCFC22 production as raw material, and Chenguang has not recovered or sold the
HFC23 generated to the market. Therefore, all of this HFC23 has historically been emitted to the
atmosphere.

Chenguang will install a plasma destruction facility for the destruction of the waste gas vent stream
containing the HFC23 to the currently operating HCFC22 manufacturing plant.

The plasma technology is used for destruction of chemical manufacturing process wastes by high
temperatures and instant decomposition. The technology has been adapted to treat a wide range of




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CDM – Executive Board                                                                                                                                                          page 7

halogenated organic waste world wide since it was first application in 1992 at Laverton, Victoria
Australia1.

Plasma is an ionized gas consisting of molecules, atoms, ions, and electrons. It differs from the normal
gaseous state because it is electrically conducting. Plasma is often referred to as the fourth state of matter,
since material passes from solid, to liquid, to gas and finally becomes plasma with increasing temperature.
Gases become electrically conducting at temperatures in excess of 4,000 °C and in most industrial
plasmas temperatures greater than 10,000°C are attained2. A plasma column is generated by the passage
of an electric current through a gaseous medium between a cathode and an anode.

Electric arc plasmas have the advantage of very high temperature, high energy density, and accurate and
rapid control of the process; attributes which make the technology particularly relevant to waste
destruction applications. Any organic molecule injected into the plasma is decomposed instantaneously
into its components atoms and ions due to the very high temperature involved.

The plasma technology has been successfully tested at the pilot facility in Chenguang. The HFC23
decomposition process flow of the plasma technology to be applied in the project is given in Figure 5.
The detailed description is as follows:

                         Figure 5 Process Flow Diagram of the Plasma destruction Facility



                                                                                                                                                                              Gaseous effluent

                                                                                                                                         Deionized
    HFC 23                                                                                                                                water
                                                                                                                                                      Alkaline
                                                           Absorption Tower




                                                                                                                      Absorption Tower
                                                                                                Absorption Tower




                                                                                                                                                       tower
    Compressed Air
                          arc furnace




                                                                                                   Secondary
                                                               Primary




                                                                                                                          Tertiary
                            Plasma




N2
                                                                                                                                                                                                 Stack
                                                                         towerⅠ




                                                                                                                                                     30% NaOH
DC power                                                                                                                                              Solution                   Exhaust stack
Deionized water
    recycling
                                                               HF/HCl solution recycling




                                                                                                                                                                   NaCl NaF




                                                                                           HF/HCl solution recycling                          Recirculation
                                                                                                                                                 pump
                          Quench        HF/HCl solution
                                           recycling
                                                                                                       Acid tank
     HF/HCl solution recycling          HF/HCl solution
                                           recycling
                                                                                                                                                                                                   Liquid effluent
                         Graphite                                                                                                                         Neutralization tank
                                         HF/HCl solution                                                                                                                                            Sludge
                        condenser                                                                                                                             Ca(OH)2 Solution
                                            recycling                                                                                                                                               (CaF2)
                                                     Recirculation                                                 HF/HCl Solution (40%)
                                                        pump                                                           by-product




1
    http://ozone.unep.org/teap/Reports/Other_Task_Force/TEAP02V3b.pdf
2
    http://ozone.unep.org/teap/Reports/Other_Task_Force/TEAP02V3b.pdf




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CDM – Executive Board                                                                                   page 8



1) Plasma Generation and Waste Injection
The plasma furnace is composed of plasma generator, injection nozzle, plasma arc zone, and combustion
zone. The high-purity nitrogen was chosen as the plasma gas since it has suitable thermodynamic
properties, is monatomic and for its inertness to the components in the reaction chamber. The nitrogen
plasma is generated by a direct current discharge between a cathode and anode of the plasma generator.

HFC23 waste gas enters the plasma furnace at a specially designed injection nozzle and instantly mixes
with the plasma. The mixture temperature at this point is approximately 3,000 ºC.

The recycled deionized water from the condenser is introduced to the jacket of the plasma generator for
cooling purpose. This process can avoid the damage of the plasma generator which is caused by the high
temperature.

2) Reaction zone (Plasma arc zone)
HFC23 waste gas is rapidly pyrolyzed in the injection zone and the hot gases pass down the plasma arc
zone in 5-10 milliseconds undergoing further pyrolysis3. After that, the gases enter the combustion zone
(1,200~1,500℃) which has a 2-second residence time. In addition, the air is added at the injection nozzle
to the plasma furnace in order to assure that all carbon, produced during pyrolysis, is converted to carbon
gases. The hot plasma gases cool to over 1,200 ºC in the plasma arc zone where the pressure is kept as
negative pressure of 20 ~ 40 millimetre of water. Such negative pressures less than normal atmospheric
pressure can avoid possible outside leakage of toxic wastes of the plasma furnace system and ensure the
safety of plasma decomposition performance.

The process is designed to have a high destruction performance for HFC23 waste gas and to suppress any
potential back reactions that would lead to undesirable by-products. This is particularly important when
treating chlorinated organic wastes (e.g. HCFC22 in this case).

3) Quench
The hot gas mixture at the bottom of the plasma furnace resulting from the decomposition of a
halogenated organic waste stream is typically CO, CO2, acid halide gases (HCl and HF), nitrogen, and
water vapour. The hot gases exiting the plasma furnace undergo rapid quenching to approximately 40ºC
by direct sprays of cool recycled HF/HCl solution as a quenching medium. The recycled HF/HCl solution
passes a graphite condenser, where the solution is cooled with brine (-5ºC) salt water to the lower
temperature. The rapid quenching prevents the formation of any undesired organic molecules as dioxins.

4) Absorption
The cool gases leaving the quench tower are fed to the primary absorption tower, the secondary
absorption tower and the tertiary absorption tower orderly. Deionized water is introduced to the tertiary
absorption tower for absorbing the acid gases (HF and HCl). The solution at the bottom is partly recycled
to the its top, and partly refluxed to the top of the primary absorption tower, the secondary absorption
tower and the quench tower through a recirculation pump to remove the acid halide gases. The HF/HCl
solution is accumulated and then intermittently discharged from the bottom of the primary absorption
tower for sale when its concentration reaches about 40% (see Section E).

5) Scrubbing (Alkaline tower)

3
 The strong acid gases including HF and HCl are generated here at very high temperature, which results in the acid
erosion within the plasma furnace. As a countermeasure, the shell and furnace body of the proposed plasma furnace
use special materials targeting the fluorochemicals.




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CDM – Executive Board                                                                                   page 9

The gases coming from the tertiary absorption tower pass through a draught fan and flow to the alkaline
tower where a small amount of remaining HF and HCl gases are further removed after being washed by
caustic soda solution (NaOH). A percentage of the carbon dioxide in the gas stream is also removed
during this process. Caustic solution is recycled to the top of the tower to neutralize the acid gases.

Because no fuel gas is needed for the destruction, the gas volume produced is much smaller than those
generated by the conventional thermal oxidisers, resulting in a more economical scrubbing system.

6) Neutralization
The exhausted caustic solution which contains NaCl and NaF is fed to the neutralization tank, where NaF
is neutralized using slaked lime Ca(OH)2. The resulting precipitated CaF2, including a small amount of
CaCl2, is separated in the precipitation tank, and then sold to a local cement plant as raw materials after
being dehydrated. After such treatment process, the liquid effluent, except chloride, can reaches the
requirements of Class I in Integrated Wastewater Discharge Standard (GB8978-1996). A minute quantity
of chloride meets with the threshold values of the Water Pollutants Discharge Standard of Sichuan
Province (DB51/190-93)4 (see Table 4 in section F). Finally, the treated effluent is discharged through
the wastewater pipeline to the Tuo River.

7) Stack (tail gas)
Finally, the off gases are vented by a reinforced plastic stack via an exhaust fan fitted with a speed
controller. The gas emission will meet the requirements of Class II in the Table 2 of the Integrated
Emission Standard of Air Pollutants (GB 16297-1996).

This project will employ an advanced and clean HFC 23 decomposition facility with high burning
efficiency and decomposition rate to reduce HFC 23 emission to the maximum extent. The pollutants
discharged from the proposed HFC 23 decomposition facility also completely comply with the threshold
values of air pollutants in Table 3 in Pollution Control Standard for Hazardous Wastes Incineration (GB
18484-20015).

8) Destruction Efficiency
This technology typically has more than 99.99% of destruction efficiency. No toxic residues are
generated and emissions to the atmosphere are substantially lower than existing and proposed national or
local standards. Additionally, the key process elements are fully contained to avoid in-process gas leaks
to the atmosphere.

The plasma technology for decomposing organic fluorinated waste gas has been demonstrated 6 by the
Environmental Science and Technology Consulting Service Centre of Zigong City.

The proposed plasma decomposition technology in Chenguang’s case represents current good practices in
decomposing organic halogenated waste gas of China. It is not likely to be substituted by other more
efficient technologies in the first crediting period.




4
    GB8978-1996 doesn’t stipulate the discharge content of chloride.
5
    GB18484-2001 is a stricter standard compared to the GB16297-1996 targeting emission control on air pollutants.
6
 Technological Assessment Report on Technological Alternation of HCFC22 Tail Gas Decomposition Project at
Zhonghao Chenguang Research Institute of Chemical Industry, August 6, 2006.




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CDM – Executive Board                                                                                 page 10

       A.4.4. Brief explanation of how the anthropogenic emissions of anthropogenic greenhouse
gas (GHGs) by sources are to be reduced by the proposed CDM project activity, including why the
emission reductions would not occur in the absence of the proposed project activity, taking into
account national and/or sectoral policies and circumstances:

This project will adopt plasma technology to decompose HFC23, which has a large GWP of 11,700.
Through the highly efficient destruction, the HFC23 can be converted to CO2 with much lower GWP
(GWP_CO2=1 in the IPCC Second Assessment Report). The technology to be adopted by the project can
decompose 99.99% of HFC23, therefore almost all HFC23 in the plant can be destroyed by implementing
this project.

Without this project, all the HFC23 produced by Chenguang will be emitted to the atmosphere without
any recovery. Reasons are listed as below:

         (a) There is no compulsory restriction about HFC23 production or emission, it is unlikely that
             any such limits on emissions would be imposed in the near future in China (As far as we are
             aware, there are no quantitative limits in any non-Annex I);
         (b) The Montreal Protocol is now the only law implemented in China that impacts HCFC22. The
             Montreal Protocol stipulates that the HCFC22 production should be ceased by the year 2040
             (HCFC22 as raw material is not limited by Montreal Protocol).Since the demand for
             HCFC22 as raw material for Polytetrafluoroethylene (PTFE) production keeps increasing,
             HFC23 will continue to be generated as a by-product of HCFC22 manufacture;
         (c) There are no commercial incentives for Chenguang to set up the destruction facility
             mentioned in this project at present or in the future and there is no HFC23 market in China.

Therefore, GHG emission reductions would not occur in the absence of the proposed project activity.
However HFC23 can be almost completely decomposed with the proposed project activities and thus
GHG emission reduction can be realized by this project. The project is therefore proven to be additional
in accordance with the requirements for proving additionality outlined within AM0001/Version 04.

                  A.4.4.1. Estimated amount of emission reductions over the chosen crediting period:

                                                         Annual estimation of emission reductions
   Years
                                                         in tonnes of CO2 e
   Year 2007 (May to December)                           1,377,035
   Year 2008                                             2,065,553
   Year 2009                                             2,065,553
   Year 2010                                             2,065,553
   Year 2011                                             2,065,553
   Year 2012                                             2,065,553
   Year 2013                                             2,065,553
   Year 2014                                             2,065,553
   Year 2015                                             2,065,553
   Year 2016                                             2,065,553
   Year 2017                                             2,065,553
   Year 2018                                             2,065,553
   Year 2019                                             2,065,553
   Year 2020                                             2,065,553




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CDM – Executive Board                                                                                 page 11

       Year 2021                                         2,065,553
       Year 2022                                         2,065,553
       Year 2023                                         2,065,553
       Year 2024                                         2,065,553
       Year 2025                                         2,065,553
       Year 2026                                         2,065,553
       Year 2027                                         2,065,553
       Year 2028 (January to April)                        688,518
       Total estimated reductions
                                                         43,376,613
       (tonnes of CO2e)
       Total number of crediting years                   21 years
       Annual average over the crediting period          2,065,533
       of estimated reductions (tonnes of CO2e)

This project will reduce annually 2,065,533tCO2e and in the first 7-year crediting period will reduce a
total of 14,458,871 tCO2e. The estimated amount of emission reductions is listed in A.4.4.1 and Section E.

           A.4.5. Public funding of the project activity:

No Official Development Assistance (ODA) Fund is used in this project

SECTION B. Application of a baseline methodology

B.1.       Title and reference of the approved baseline methodology applied to the project activity:

The baseline methodology employed by the plasma destruction facilities of HFC23 at Chenguang
HCFC22 production facility is the approved baseline methodology AM0001/Version 04 (“Incineration of
HFC23 waste streams”).

The methodology is available on the UNFCCC website:
http://cdm.unfccc.int/methodologies/PAmethodologies/approved.html

        B.1.1. Justification of the choice of the methodology and why it is applicable to the project
activity:

This baseline methodology AM0001/Version 04 is applicable to HFC23 (CHF3) waste streams from an
existing HCFC22 production facility where the project activity occurs:

(i).       with at least three years of operating history between the beginning of the year 2000 and the end
           of the year 2004; and
(ii).      where no regulation requires the destruction of the total amount of HFC23 waste.

The methodology is applicable to the project activity, for the following reasons:

(i)        The project decomposes the HFC23 originated from the existing HCFC22 production facilities of
           Chenguang.
(ii)       The above HCFC22 production facility was put into production and operation in 1998. It has
           been operated for more than three years between 2000 and 2004. The time of production and




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CDM – Executive Board                                                                                 page 12

         operation meets with the methodology AM0001/Version 04; and
(iii)    HFC23 is an inevitable by-product of the HCFC22 manufacturing process. In China, HFC23 has
         no any commercial value except as fire extinguishing agents, so all of them are released to
         atmosphere as waste gas; Quantitative regulation of HFC23 emissions does not currently exist in
         China (nor is it planned).

Therefore, the project activity complies with all applicable conditions of methodology AM0001/Version
04.

B.2.     Description of how the methodology is applied in the context of the project activity:

Calculation of GHG emission reduction measured in tons of CO2 equivalents (tCO2e) is according to
methodology AM0001/Version 04:

Emission Reduction:

The GHG emission reduction achieved by the project activity is the quantity of waste HFC23 actually
destroyed less the greenhouse gas emissions generated by the destruction process less leakage due to the
destruction process. Specifically, the greenhouse gas emission reduction (ERy) achieved by the project
activity during a given year (y) is equal to the quantity of HFC23 waste from HCFC production facility
(Q_HFC23y) destroyed by the project activity less the baseline HFC23 destruction (B_HFC23y) during
that year multiplied by the approved Global Warming Potential value for HFC23 (GWP_HFC23) less the
greenhouse gas emissions generated by the destruction process(E_DPy) less greenhouse gas leakage (Ly)
due to the destruction process.

                       ERy = (Q_HFC23y - B_HFC23y) * GWP_HFC23 - E_DPy - Ly

Where:
ERy is the greenhouse gas emission reduction during year y measured in tons of CO2 equivalents (t CO2e);
Q_HFC23y is the quantity of waste HFC23 destroyed during year y measured in metric tons (t);
B_HFC23y is the baseline quantity of HFC23 destroyed during year y measured in metric tons (t),
GWP_HFC23 is the Global Warming Potential value for HFC23, i.e. 11700t-CO2e/t-HFC23, which
converts 1 ton of HFC23 to 11,700 tons of CO2 equivalents;
E_DPy is the GHG emissions due to the destruction process year y (t CO2e); and
Ly is the GHG leakage due to the destruction process year y (t CO2e).

The quantity of waste HFC23 destroyed (Q_HFC23y) is calculated as the product of the quantity of waste
HFC23 supplied to the destruction process (q_HFC23y) measured in metric tons and the purity of the
waste HFC23 (P_HFC23y) supplied to the destruction process expressed as the fraction of HFC23 in the
waste [Q_HFC23y = q_HFC23y * P_HFC23y].

The destruction process uses electricity as an energy, which is purchased from the Central China Power
Grid, the emissions associated with electricity is included in the leakage calculation (Ly) in terms of
methodology AM0001. The emissions due to the destruction process (E_DPy) are the emissions due to the
emissions of HFC23 not destroyed and the greenhouse gas emissions of the destruction process.

Thus:

                         E_DPy = ND_HFC23y * GWP_HFC23 + Q_HFC23y * EF




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CDM – Executive Board                                                                                 page 13

Where:

ND_HFC23y is the quantity of HFC23 not destroyed during year y (t);

The quantity of HFC23 not destroyed (ND_HFC23y) is typically small; the monitoring plan provides for
its periodic on site measurement. Theoretically HFC23 can also leak to the water effluent and then escape
to the atmosphere. This possibility is ignored because it is infinitesimally small; the solubility of HFC23
is 0.1% wt at 25oC water.

The plasma destruction process converts the carbon in the HFC23 into CO2, which is released to the
atmosphere. The quantity of CO2 produced by the destruction process is the product of the quantity of
waste HFC23 (Q_HFC23y) destroyed and the emission factor (EF). The emission factor is calculated as
follows:

EF = 44/[(molecular weight of HFC23)/(number of C in a molecule of HFC23)] = 44/[70/1] =0.62857

As stated in the methodology AM0001/Version 04, the production of the purchased energy is one of
sources of leakage. It produces CO2 emissions and a small quantity of N2O emissions. In Chenguang’s
case, the only energy needed by the plasma destruction process is electricity and therefore also produces
N2O emissions. According to the AM0001, the N2O emissions, on a CO2 equivalent basis, are a small
fraction of the CO2e emissions and so are ignored.

Baseline:
The baseline quantity of HFC23 destroyed is the quantity of the HFC23 waste stream required to be
destroyed by the applicable regulations. The quantity required to be destroyed by the applicable
regulations is:

                                          B_HFC23y = Q_HFC23y * ry

Where ry is the fraction of the waste stream required to be destroyed by the regulations that apply during
year y. In the absence of regulations requiring the destruction of HFC23 waste, the typical situation in
non-Annex I Parties like China, ry = 0. Absent regulations on HFC23 emissions, the HFC23 waste is
typically released to the atmosphere so the baseline scenario is zero destruction.

To exclude the possibility of manipulating the HCFC22 production process to increase the quantity of
HFC23, Q_HFC23y is limited to a fraction (w) of the actual HCFC22 production during the given year y
at the originating plant (Q_HCFCy).

                                         Q_HFC23y ≤Q_HCFC22y * w

Where Q_HCFC22y is the actual production of HCFC22 during the year at the plant where the HFC23
waste originates measured in metric tons. Q_HCFC22y is limited to the maximum historical annual
production level at this plant (in tons of HCFC22) during any of the last three years between beginning of
the year 2000 and the end of the year 2004. In this project, it is set HCFC22 yield in 2003, 5,887 tons.

The coefficient w is the waste generation rate (HFC23 7 )/(HCFC22) for the originating plant. The
historical waste generation is estimated for the three most recent years of operation up to 2004.

7
 The quantity of HFC23 used to calculate this coefficient is the sum of HFC23 recovered for sale plus the waste
HFC23.




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CDM – Executive Board                                                                                 page 14



According to the AM0001 methodology there are three options for calculating w:
      1. “Direct measurement of HFC23 release is to be used where data are available, otherwise
      2. Mass balance or other methods based on actual data are to be used. Uncertainty in emission rate
         estimates shall be quantified and conservative emission rate estimates shall be used when
         calculating expected emission reductions.
          Regardless of which option is followed it is stated that “The value of w is set at the lowest of the
          three historical annual values estimated as specified above and is not to exceed 3% (0.03 tons of
          HFC23 produced per ton of HCFC22 manufactured)”.
      3. If insufficient data is available for calculating HFC23 emissions for all three most recent years up
         to 2004, then w is set at the default value of 1.5%.

In this case, Chenguang provides the sufficient data for the calculation of HFC23 generation rate w, the
1.5% default value for w is not applicable to the proposed CDM project in Chenguang plant.

The emission rate (HFC23/HCFC22) by mass balance calculation are 3.20% (2002), 3.16%( 2003) and
3.10 %( 2004).

Uncertainty analysis

(1) w values

The uncertainty of w values are estimated and quantified through population standard deviation at the
confidence level of 95%. As mention upon, the value of w in 2002, 2003, and 2004 are all higher than 3%,
and lowest w is 3.10% So the value of w calculation results obtained from mass balance the lowest value
between 2002 and 2004 should be written as (3.10±0.02). The lower limit value is higher than 3%.
According to the AM0001/Version 04 methodology, the value of w should not exceed 3%. Therefore, w
for the proposed project shall be 3% for conservative purpose.

(2) Amount of HCFC22 production (Q_HCFC22y)

In this project, the quantity of HCFC22 produced in the plant generating the HFC23 waste is measured by
mass flowmeter. The accurate level of the flowmeter is about ± 0.5% 8 . Therefore, the maximum
measurement error of Q_HCFC22y is 5,887 tons/y × 0.5% (error range) = 29 tons/y (5,887 tons/y is the
maximum eligible HCFC22 annual production).

In order to have more accurate data, recalibration and zero check will be done in a same manner and with
a same frequency with the flow meters used for the measurement of HFC23 (see Section D.2 for details).
This method reduces the error level of Q_HCFC22y.

(3) Others
It is likely that the project will decompose more HFC23 than the quantity of HFC23 that can be certified.
The additional decomposed HFC23 will make extra contribution to the global environment.

As Q_HFC23y needs to satisfy: Q_HFC23y ≤Q_HCFC22y * w (w = 3%). Where Q_HCFC22y is the
maximum quantity of HCFC22 produced from the existing production facility during the last three years

8
    Provided by ROSEMOUNT, the supplier of the mass flowmeters.




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CDM – Executive Board                                                                                                        page 15

between 2000 and 2004. Since the annual production of HCFC22 at Chenguang in 2002, 2003 and 2004
are 5,433 tons, 5,887 tons and 2,657 tons respectively, the value of Q_HCFC22 for this project is 5,887
tons.

To ensure conservativeness, in an ordinary year of project operation, even when the quantity of HFC23
generated by the project activity is more than Q_HCFC22y* w, the accepted quantity of HFC23 remains
equal to the calculation result of Q_HCFC22y * w. Since the value of w in 2002, 2003, and 2004 are all
higher than 3%, it is likely that the project will decompose more HFC23 than the quantity of HFC23 that
can be certified. The additional decomposed HFC23 will make extra contribution to the global
environment.

As mentioned in section A.2 of this project design document, the second HCFC22 production Unit B is
not included in the proposed project. Only the destroyed HFC23 generated from production Unit A will
be considered by this project. As shown in Figure 6, it is not possible to transport/destroy HFC23 from
unit B in the destruction facility at present and in future as bellows:

a)   The tail gas of unit B is not connected to unit A, HFC23 destruction facility and the 200m piping on
     the pipe rack between unit A and HFC23 destruction facility;
b)   Only the tail gas of unit A flows to the flowmeters located near the HFC23 destruction facility;
c)   An additional flowmeter installed voluntarily just after unit A is used to measure the amounts of the
     HFC23 that generated from this production unit. The amounts of the HFC23 to be destructed in the
     project activity will be confirmed through comparing the values obtained by the additional flow
     meter located just after Unit A and the two flowmeters located near the HFC23 destruction facility.

                               Figure 6 A piping and Instrumentation (P&I) Diagram

                          HCFC22 Plant                                                         Project Boundary

                                         Flowmeter
                                                       (about 200m piping)
             HCFC22
                            Uint A




                                          By-product                             Flowmeters
            Production                                                 HFC 23
                                           HFC23
                                                                                                    arc furnace




                                                                                Compressed Air
                                                                                                      Plasma




                                                                                     N2
                                                                    DC power                                      Other facilities
                                                                                 Deionized water                  included in
                                                                                                                  project activity
                                           Exhaust                                 recycling
                                                                                                                  (see Figure 7 for
                                                                                                                  details)

                                                                                                    Quench
              HCFC22                    By-product
                               Uint B




             Production                  HFC23


                                                                                                    Graphite
                                                                                                   condenser




The flow meter is calibrated in a manner and with a frequency that complies with AM0001/ Version 04 as
described in Section D.2.

Leakage




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CDM – Executive Board                                                                                 page 16



As specified in AM0001/Version 04 methodology, leakage is greenhouse gas emissions due to the project
that occur outside the project boundary.

The sources of leakage are:

• Greenhouse gas (CO2 and N2O) emissions associated with the production of purchased energy
(electricity)

• CO2 emissions due to transport of the by-products of sludge and HF solution as well as the process
inputs (sodium hydroxide and calcium hydroxide).

Thus:
                                        Ly = Q_Powery * E_Powery + ETy

Where:
Q_Powery is the quantity of power used by the destruction process during the given year y (kWh);
E_Powery is the emission factor of power used by the destruction process (tCO2e/kWh);
ETy is the GHG emissions associated with transport of the by-products of sludge and HF solution as well
as the process inputs (sodium hydroxide and calcium hydroxide) during year y (t CO2e).

As mentioned previously, the plasma destruction process in Chenguang’s case only uses electricity.

Key information and data used to determine the baseline

             Variable                                   Value                                 Data source
Q_HCFC22
(Maximum historical HCFC22
                                         5,887 tons                               Provided by Chenguang
production at Chenguang
between 2000 and 2004)
w
(HFC23 generation rate at                3.0%                                     Provided by Chenguang
Chenguang)
Q_HFC23y
(Quantity of HFC23 to be fed to          176.61tons                               Calculated by Q_HCFC22 * w
the destruction process)

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 CDM project activity:

China has no regulations limiting HFC23 emission and will not adopt such regulation in the expected
future. HFC23 destruction facility, require significant capital and operating costs and the host entity has
no direct economic incentive to incur these costs. Therefore, the baseline scenario is that HFC23 will be
directly released to the atmosphere.

At present, as B_HFC23y is zero, Q_HFC23y, the quantity of HFC23 destroyed is much greater than the
baseline quantity destroyed (B_HFC23y).

Moreover, in order to avoid the possibility of increasing the quantity of HFC23 through manipulating the




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HCFC22 production process, the project has set a “cut-off rate” (w) to define the maximum HFC23
production that can be recognized. In the case of Chenguang, w is set as 3% based on the historical data.

It is clear that in the absence of the proposed project, all the HFC23 generated from HCFC22 plants of
Chenguang will be vented to the atmosphere. This is the baseline situation. However, if the project can be
implemented, almost all the generated HFC23 (99.99%) can be decomposed. The GHGs generated from
the project is rather small in quantity. Therefore, compared to the baseline situation, only small amount of
GHGs are finally released to the atmosphere, thereby achieving significant GHGs emission reduction and
contributing to the mitigation of Climate Change problem.

B.4.  Description of how the definition of the project boundary related to the baseline
methodology selected is applied to the project activity:

The project boundary is defined as the facility to decompose the HFC23 in the baseline methodology as
shown in Figure 7, including incinerator, quench, absorption tower, graphite condenser, alkaline tower,
exhaust stack etc., while HCFC22 production facility, the solid waste treatment facility, and the
transportation of HF solution are out of the project boundary.

                                                          Figure 7 Project Boundary
                                                                                                                                                                                       Gaseous effluent


                     q_HFC23y            Q_HFC23y                                           Project Boundary                                                             ND_HFC23y
                      meausred                                                                                                                                            meausred
                                    Calculated from q_HFC23y and p_HFC23y
                                                                                                                                                                                          CO2_HFC23y
 Q_HCFC22y           p_HFC23y
                                                                                                                                                    Deionized                           Calculated from
  meausred            meausred
                                                                                                                                                     water                                q_HFC23y
  HCFC22           HFC 23                                                                                                                                       Alkaline
                                                                        Absorption Tower



                                                                                                             Absorption Tower



                                                                                                                                 Absorption Tower




   Plant                                                                                                                                                         tower
                                        arc furnace




                  Compressed Air
                                                                                                                Secondary
                                                                            Primary




                                                                                                                                     Tertiary
                                          Plasma




                    N2
                                                                                                                                                                                                            Stack
                                                                                      to




                                                                                                                                                                30% NaOH


                                                                                                                                                                                            Exhaust stack
  DC power                                                                                                                                                       Solution

                  Deionized water
  Q_Powery
                      recycling
                                                                            HF/HCl solution recycling




                                                                                                                                                                            NaCl NaF




  meausred
 CO2_Powery                                                                                                                                              Recirculation
                                                                                                        HF/HCl solution recycling                           pump
Calculated from                                       HF/HCl solution
                                        Quench
  Q_Powery                                               recycling
                                                                                                                      Acid tank
                  HF/HCl solution recycling           HF/HCl solution
                                                         recycling                                                                                                                                             Liquid
                                        Graphite                                                                                                                    Neutralization tank                       effluent
                                       condenser        HF/HCl solution                                                                                               Ca(OH)2 Solution                         Sludge
                                                           recycling
                                                                                                                                                                                                               (CaF2)
                                                                   Recirculation
                                                                      pump

                                                                                                                                HF/HCl Solution (40%)
                      HFC23y_Sold                B_HFC23y                                                                           by-product
                         meausred             Calculated from domestic regulation status



B.5.   Details of baseline information, including the date of completion of the baseline study
and the name of person (s)/entity (ies) determining the baseline:

The date of completion of the baseline study: 26/10/06




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CDM – Executive Board                                                                                 page 18

The contract information of the person who determines the baseline:

Ms. Zheng Wenru
Foreign Economic Cooperation Centre of Environmental Protection, China
227, Zhaodengyu Road, Xicheng District, Beijing, 100035
Tel: (+86) 10- 6653 2351
Fax: (+86) 10- 6653 2330
Email: zheng.wenru@sepafeco.org.cn

Mr. Xiao Xuezhi
Foreign Economic Cooperation Centre of Environmental Protection, China
227, Zhaodengyu Road, Xicheng District, Beijing, 100035
Tel: (+86) 10- 6653 2346
Fax: (+86) 10- 6653 2330
Email: xiao.xuezhi@sepafeco.org.cn

SECTION C. Duration of the project activity / Crediting period

C.1      Duration of the project activity:

         C.1.1. Starting date of the project activity:

                  01/05/2007

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

                  21 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:

                  01/05/2007

                  C.2.1.2. Length of the first crediting period:

                  7 years and 0 month

         C.2.2. Fixed crediting period:

                  Not opted for.

                  C.2.2.1. Starting date:

                  Not opted for.




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CDM – Executive Board                                                                                 page 19

                  C.2.2.2. Length:

                  Not opted for.

SECTION D. Application of a monitoring methodology and plan

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

The monitoring methodology employed for the destruction of HFC23 waste at Chenguang’s HCFC22
production facility is the Approved Monitoring Methodology AM0001/Version 04 (“Incineration of
HFC23 waste streams”).

The methodology is available on the UNFCCC website:
http://cdm.unfccc.int/methodologies/PAmethodologies/approved.html

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

This methodology is applicable to HFC23 waste streams from an existing HCFC22 production facility
with at least three years of operating history between beginning of the year 2000 and the end of the year
2004 where the project activity occurs and where no regulation requires the destruction of the total
amount of HFC23 waste.

The methodology is applicable to the project activity, for the following reasons:

(i)      The project decomposes the HFC23 originated from the existing HCFC22 production facility
         (Unit A)of Chenguang. HFC23 is an inevitable by-product of the HCFC22 manufacturing
         process. In China, HFC23 has no any commercial value except as fire extinguishing agents, so
         most of them are released to atmosphere as waste gas;
(ii)     The above-mentioned HCFC22 production facility was put into production and operation in 1998.
         The time of production and operation meets with the methodology AM0001/Version 04; and
(iii)    Quantitative regulation of HFC23 emissions does not currently exist in China (nor is it planned)
         and the project therefore meets the requirement of condition.

Therefore, AM0001/Version 04 monitoring methodology is fully applicable to the proposed project.

Besides, HCFC22 is a type of GHG with GWP of 1,700 (refer to IPCC Second Assessment Report).
Since the project activity does not cause any changes to the existing HCFC22 plant, there is no leakage
effect associated with HCFC22 production outside the project boundary.

N2O is also a type of GHG with GWP of 310 (refer to IPCC Second Assessment Report). A small
quantity of N2O emissions is produced during plasma destruction process, and such emissions for the
proposed project activity are neglected as aforementioned in Section B.2.

In this project, HFC23 to be decomposed and the power to be consumed by the plasma destruction will be
measured directly and continuously. Since the quantity of HFC23 fed to the plasma destruction facility is
crucial to the total emission reduction generated from the project activity, two flow meters will be
installed for the project at Chenguang in order to ensure the accuracy and conservativeness of the HFC23
measured. The flow meters will be calibrated every six months by an officially accredited entity. The zero




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CDM – Executive Board                                                                                 page 20

check on the flow meters will be conducted every week. If the zero check indicates that flow meter is not
stable, and immediate calibration of the flow meter will be undertaken. Most of the time, both flow meters
measure the same amount of HFC23 flows simultaneously. When one flow meter is undertaken
recalibration, the other will keep measuring. If HFC23 quantities measured by the two flow meters are
different and the difference is smaller than the two times of the flow meter precision value, then the lower
HFC23 quantity will be adopted. However, if the difference is larger than the two times of the flow meter
precision value, we will immediately assign monitoring staff to identify the problem and solve the
problem.

The monthly quantity of HFC23 waste flows (q_HFC23m) is the sum of the lower periodic9 reading of the
two meters, as follow:

q_HFC23m =                   ∑minm (q_HFC231,t, q_HFC232,t)
                 t= number of period in a month


The monitoring plan for the proposed project also includes the following process for quality control:

      •    Purity of HFC23: It will be checked monthly by sampling and using gas chromatography.
           Combinations of continuous flow measurement and calculation will be used to estimate quantities
           of other materials, e.g., air that may be in the HFCs if this is appropriate.
      •    Amount of HFC23 waste generated: The output of HFC23 from the HCFC22 plant will be
           checked at least yearly by comparing the amount of HCFC22 manufactured to the sum of the
           HFC23 produced (“produced” in lieu of “recovered for sale and HFC23 decomposed”).

Furthermore, the quantities of gaseous effluents (CO, HCl, HF, Cl2, dioxin and NOX) and liquid effluents
(PH, COD, BOD, n-H (normal hexane extracts), SS (suspended solid), phenol, and metals (Cu, Zn, Mn
and Cr)) are measured every six months to ensure compliance with environmental regulations.




9
    The periodic frequency of less than one hour can be used, as documented in the PDD.




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           D.2. 1. Option 1: Monitoring of the emissions in the project scenario and the baseline scenario
.
           D.2.1.1. Data to be collected in order to monitor emissions from the project activity, and how this data will be archived:

ID number        Data variable     Source of data     Data unit   Measured          Recording       Proportion    How will the   Comment
(Please use                                                       (m),              frequency       of data to    data be
numbers to                                                        calculated (c)                    be            archived?
ease cross-                                                       or estimated                      monitored     (electronic/
referencing                                                       (e)                                             paper)
to D.3)
D.2.1.1 -1       Quantity of       Mass               kg-         Measured          Monthly         100%          Electronic     Measured by two flow meters in series;
q_HFC23y         HFC23             Flowmeter          HFC23                                                                      Calibration will be done every six months by
                 supplied to the                                                                                                 an officially accredited entity. The zero check
                 destruction                                                                                                     on the flow meters will be conducted every
                 process                                                                                                         week and if the zero check indicates that flow
                                                                                                                                 meter is not stable, the immediate calibration
                                                                                                                                 of the flow meter will be undertaken;
                                                                                                                                 The monthly quantity of HFC23 waste flows
                                                                                                                                 (q_HFC23m) is the sum of the lower
                                                                                                                                 periodic10 reading of the two meters. It will be
                                                                                                                                 confirmed through checking the harmony of
                                                                                                                                 the values obtained by the additional flow
                                                                                                                                 meter located just after Unit A and the two
                                                                                                                                 flowmeters located near the HFC23
                                                                                                                                 destruction facility.
D.2.1.1 -2       Purity of         chromatograph      %           Measured          Monthly                       Electronic     Measured by sampling and using gas
P_HFC23y         HFC23             y                                                                                             chromatography
                 supplied to the
                 destruction
                 process
D.2.1.1 -3       Quantity of       chromatograph      kg-         Measured          Monthly                       Electronic     When the plasma destruction process stops,
ND_HFC23y        HFC23 in          y                  HFC23                                                                      analysis of the effluent gas is done to check
                 gaseous                                                                                                         leaked HFC23 by sampling
                 effluent


10
     The periodic frequency of less than one hour can be used, as documented in the PDD
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In addition the quantities of gaseous effluents (CO, HCl, HF, Cl2, dioxin and NOX) and liquid effluents (PH, COD, BOD, n-H (normal hexane extracts), SS
(suspended solid), phenol, and metals (Cu, Zn, Mn and Cr)) are measured in a manner and with a frequency that complies with local environmental
regulations.
         D.2.1.2. Description of formulae used to estimate project emissions (for each gas, source, formulae/algorithm, emissions units of CO2 equ.)

Emission from each source inside the project boundary due to the project activity is as follows:

E_DPy = ND_HFC23y * GWP_HFC23 + Q_HFC23y * EF

Where:
E_DPy (tCO2e) is the sum of the emissions in the project boundary during a given year y.
ND_HFC23y (t) is the quantity of HFC23 not destroyed during year y,
GWP_HFC23 is the Global Warming Potential value of HFC23: 11,700.
Q_HFC23y (t) is HFC23 decomposed by the project activity in that year.
EF is the emission factor that indicates the quantity of CO2 generated when 1 ton of HFC23 is decomposed. EF=0.62857

The quantity of HFC23 not destroyed (ND_HFC23y) is typically small; the monitoring plan provides for its periodic on site measurement. Theoretically
HFC23 can also leak to the water effluent and then escape to the atmosphere. This possibility is ignored because it is infinitesimally small; the solubility of
HFC23 is 0.1% wt at 25oC water.

      D.2.1.3. Relevant data necessary for determining the baseline of anthropogenic emissions by sources of GHGs within the project boundary
and how such data will be collected and archived :
ID number            Data variable         Source of      Data unit    Measured (m),       Recording      Proportion   How will the         Comment
(Please use                                  data                      calculated (c),     frequency      of data to     data be
numbers to ease                                                        estimated (e),                         be        archived?
cross-referencing                                                                                         monitored    (electronic/
to table D.3)                                                                                                             paper)




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D.2.1.3. -1          The quantity of         Mass           t-            Measured          Monthly          100%      Electronic   Q_ HCFC22y is a vital indicator in
Q_HCFC22y            HCFC22               Flowmeter       HCFC22                                                                    this project for determining the
                     produced in the                                                                                                certified credit and also for checking
                     plant                                                                                                          the by-product, HFC23 using “cut-
                     generating the                                                                                                 off rate”, w, which might be 3.0 in
                     HFC23 waste                                                                                                    the project, while Q_HFC23y is
                                                                                                                                    checked against this value using w.
D.2.1.3 -2           The HFC23           Weight meter     t- HFC23        Measured          Monthly          100%      Electronic   Reference data to check cut off
HFC23y_sold          sold by the                                                                                                    condition and rough estimation of
                     facility                                                                                                       Q_HFC23y
                     generating the
                     HFC23 waste
D.2.1.3 -3           Fraction of         Governmenta          %           Estimated         Monthly          100%      Electronic   Estimated in consideration of
ry                   HFC23 subject         l laws and                                                                               governmental laws and regulations
                     to regulation        regulations                                                                               on HFC23 control

         D.2.1.4. Description of formulae used to estimate baseline emissions (for each gas, source, formulae/algorithm, emissions units of CO2 equ.)

B_HFC23y = Q_HFC23y * ry
Where:

Q_HFC23y (t) is the quantity of waste HFC23 destroyed during year y measured in metric tons (t)
ry is the fraction of the waste stream required to be destroyed by the regulations that apply during year y.
In the absence of regulations requiring the destruction of HFC23 waste, the typical situation in non-Annex I Parties like China, ry = 0.
B_ HFC23y (t) is the baseline quantity of HFC23 destroyed is the quantity of the HFC23 waste stream required to be destroyed by the applicable regulations.
Since China so far has no regulations on the control of HFC23 emissions, this value is set as zero.

         D. 2.2. Option 2: Direct monitoring of emission reductions from the project activity (values should be consistent with those in section E).

This section is not applicable to the proposed project.

                  D.2.2.1. Data to be collected in order to monitor emissions from the project activity, and how this data will be archived:



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   ID number          Data       Source of        Data    Measured (m),     Recording     Proportion      How will the                      Comment
   (Please use       variable      data           unit    calculated (c),   frequency     of data to        data be
numbers to ease                                           estimated (e),                      be           archived?
      cross-                                                                              monitored       (electronic/
 referencing to                                                                                              paper)
    table D.3)




                D.2.2.2. Description of formulae used to calculate project emissions (for each gas, source, formulae/algorithm, emissions units of CO2
equ.):

           D.2.3. Treatment of leakage in the monitoring plan

           D.2.3.1. If applicable, please describe the data and information that will be collected in order to monitor leakage effects of the project
activity
ID number        Data variable   Source of data                   Measured (m),      Recording     Proportion    How will the   Comment
                                                         Data
(Please use                                                       calculated (c)     frequency     of data to    data be
                                                         unit
numbers to                                                        or estimated                     be            archived?
ease cross-                                                       (e)                              monitored     (electronic/
referencing                                                                                                      paper)
to table D.3)
D.2.3.1. -1      Electricity     Electricity meter       kWh      Measured           Monthly       100%          Electronic     Metered
 Q_Powery        consumption
                 by the
                 destruction
                 process
D.2.3.1. -2      Emission        The emission            tCO2e/   Estimated          Annually      100%          Electronic     Estimated
E_Powery         factor of       factors issued by       kWh
                 power           China’s DNA
                                 (NDRC) for the
                                 CDM projects

                   D.2.3.2. Description of formulae used to estimate leakage (for each gas, source, formulae/algorithm, emissions units of CO2 equ.)

The leakage effect of the project emissions is the indirect CO2 emissions associated with the power generation and the transport of the by-products of sludge
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and HF solution as well as the process inputs (sodium hydroxide and calcium hydroxide):

Ly = Q_Powery * E_Powery + ETy

Where:
Ly (tCO2e) is the sum of the emissions outside the project boundary in the given year y
Q_Powery (kWh)is the quantity of power for the destruction process during year y
E_Powery (t CO2e/kWh) is the greenhouse gas emissions factor for power during year y
ETy (t CO2e) is the GHG emissions associated with the by-products of sludge and HF solution as well as the process inputs (sodium hydroxide and calcium
hydroxide) during year y.

A small amount of sludge is generated during the wastewater treatment which will be transported to a local lime plant for sale. Besides, the project also
generates HF solution as by-product which will be sold and transported by truck. The transport of the purchased process inputs including sodium hydroxide
and calcium hydroxide also caused CO2e emissions. The amount of CO2 emissions due to the transport of these by-products and process inputs are very small
compared to the GHG emission reductions and therefore estimated to be negligible, i.e. ETy = 0. Please refer to Section E.2 for details.

       D.2.4. Description of formulae used to estimate emission reductions for the project activity (for each gas, source, formulae/algorithm,
emissions units of CO2 equ.)

ERy = (Q_HFC23y – B_HFC23y) * GWP_HFC23 – E_DPy – Ly

Where:
ERy (tCO2e) is the total emission reduction of the project activity in the given year y, measured in tons of CO2 equivalent.

D.3.     Quality control (QC) and quality assurance (QA) procedures are being undertaken for data monitored

Data                     Uncertainty level of data    Explain QA/QC procedures planned for these data, or why such procedures are not necessary.
(Indicate table and      (High/Medium/Low)
ID number e.g. 3.-1.;
3.2.)




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q_HFC23y                 Low                          Will be measured by the two flow meters in series. The amount of HFC23 to be destructed in the project activity
                                                      will be confirmed through checking the harmony of the values obtained by the additional flow meter located just
                                                      after Unit A and the two flowmeters located near the HFC23 destruction facility. The two groups of flowmeters
                                                      near the HFC23 destruction facility shall be calibrated every six months by an officially accredited entity. The
                                                      zero check on the flow meters shall be conducted every week. If the zero check indicates that flow meter is not
                                                      stable, and immediate calibration of the flow meter shall be undertaken.
ND_HFC23y                Low                          Will be measured from the gas effluent of the destruction process. In order to determine the quantity of HFC 23
                                                      not destroyed, this project activity proposes to measure the quantity of the gas effluent released to the atmosphere
                                                      using a flow meter, and to determine the fraction of HFC 23 of such effluent by gas chromatography. The
                                                      quantity of HFC 23 not destroyed will be obtained by multiplying the quantity of gas effluent by the fraction of
                                                      HFC 23 of such effluent.

                                                      The verification of gas chromatography will be conducted pursuant to the Verification Regulation of Gas
                                                      Chromatograph (JJG700-1999), using HFC23 as standard substances. The analysis will be repeated in case of
                                                      doubt regarding its veracity.
P_HFC23y                 Low                          Will be measured using gas chromatography. The verification of gas chromatography will be conducted pursuant
                                                      to the Verification Regulation of Gas Chromatograph (JJG700-1999), using HCFC22 and HFC23 as standard
                                                      substances. The analysis will be repeated in case of doubt regarding its veracity.
Q_Powery                 Low                          Will be metered using electricity meter
Q_HCFC22y                Low                          Will be obtained from production records of HCFC22 production unit A where the HFC23 waste originates in
                                                      Chenguang
HFC23y_sold              Low                          Will be obtained from production records of HCFC22 production unit A where the HFC23 waste originates in
                                                      Chenguang

The mass flowmetres used in this project have obtained Verification Certificate from National Institute of Measurement and Testing Technology (NIMTT).
NIMTT is an institute, which has obtained acquired People's Republic of China Certificate of Metrological Authorization to The Legal Metrological
Verification Institution and Accreditation Certificate of China National Accreditation Board for Laboratories.

Reference documents for the verification: JJG897-1995 Verification Regulation of Mass Flow Meter

Measuring range:(0 ~10884)kg/h

Uncertainty maximum permissible error: ±0.5%

Assessment of Uncertainties:

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The quantitative relative scale of the BEy (baseline emissions) and E_DPy (project emissions) is around the order of 104 (for high GWP gases like HFC23) as
shown in section E. So, the quality control of Q_HFC23y dominates the uncertainty range of whole emission reductions.

In order to control the quality level of Q_HFC23y, sampling check will be done for the non-decomposed amount ND_HFC23y and the purity of HFC23 to be
decomposed. In addition, the output of HFC23 from the HCFC22 plant will be checked yearly by comparing the amount of HCFC22 sold, HFC23
decomposed. This process is a part of assessing the “cut-off”. In order to have more accurate data, the flow meters will be calibrated every six months by an
officially accredited entity. The zero check on the flow meters will be conducted every week. If the zero check indicates that flow meter is not stable, and
immediate calibration of the flow meter will be undertaken. Two flow meters measure Q_HFC23y independently.

Moreover, the ex-post assessment will be made on:
    The domestic policy (under the existence of quantitative domestic regulations);
    The cut-off condition for HFC23 through HCFC22 process (by comparing Q_HFC23y and the cut-off); and
    Gas leakage from the valves (flow after the flowmeters) is to be checked annually.
These will be verified by the Operational Entity at the time of verification.

D.4    Please describe the operational and management structure that the project operator will implement in order to monitor emission reductions
and any leakage effects, generated by the project activity

Management structure:

Chenguang has obtained the ISO9001 (2000), ISO14001 (2005) and GB/T28001(2005) certifications. Based on its existing certified environmental
management system and quality management system, the company will ensure the successful implementation of QA/QC for the proposed project and keep
pursuing continuous improvement.

The management structure for the proposed CDM project at Chenguang is shown in Figure 8. A project manager of the Decomposition Plant of HCFC22 Tail
Gas will be designated to be in charge of the overall management and implementation of this proposed project. He is also the head of the monitoring team.
The monitoring team consists of professional monitoring personnel who will perform all the monitoring activities according to the monitoring plan described
in this project design document. At the same time, the project manager will also be responsible for coordinating relevant departments, such as the operators of
HFC23 destruction facility, the HCFC22 plant manager, quality assurance department manager and information center personnel to provide support to the
project operation and monitoring. A monthly report will be sent to the Director and safety & environmental manager of Chenguang by the project manager.
The monitoring team will not only submit weekly report to the project manager but also prepare semi-annual report for DOE verification. Before
implementation of this project, the personnel relevant with the operation and monitoring of plasma destruction process will be trained to acquire
comprehensive knowledge with regards to general and technical aspects of this CDM project.

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                                                       Figure 8 Management structure for the proposed project




In addition, 20 staffs will be assigned for monitoring emissions. They are to be distributed to the following sections: 12 for operation control every 4 staffs in
3 shifts, 4 for operation control, 2 for instruments management and 2 for maintenance.

Qualification and Training:

For the facility/equipment developed by Chenguang itself, the technology department will provide staff training and instruction on installation, operation,
maintenance and calibration. This very facilitates the transfer and experiences sharing of internal knowledge, know-how, and best practices; for the other
bought-in equipments/meters/instruments, the suppliers will be responsible for relevant training and instruction. Staff training will facilitate smooth and
effective implementation of the HFC23 emissions reduction project both during its construction and operational phases.
Emergency preparedness and Countermeasures:
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Emergency preparedness plan is part of Chenguang’s safety and environmental management system. The existing plan has combined inventory of hazardous
substances, identification of potential accidents, and steps to respond to the potential accidents. The detailed procedures in the existing emergency
preparedness plan will be regularly checked and revised for improvement. The monitoring instruments will also be regularly checked. If any faults or
problems are identified, they will be immediately fixed or the equipment will be replaced.

The unintended emissions associated with the production process would be related to main failures in the plasma decomposition facility. If the equipment
can’t work properly, the following emergency measures should be initiated: 1) to stop air admission to the plasma destruction system and then directly release
tail gas of HCFC22; or immediately stop producing HCFC22 to avoid the generation of HFC23 gas; destruct it by the destruction system after the failures are
addressed; 2) to immediately initiate emergency response system to ensure that the residual waste gas in the destruction system is fully purified and in
compliance with national related emission standard; 3) to close the draw-off valve and collect all wastewater through the pilot-scale treatment station for
treatment (see Section F).

A special cofferdam will be also built for the storage tank of HF solution in case of emergent spill.

Quality Assurance and Inspection:

Based on these original quality control procedures of the HCFC22 production as assured by its certificates of ISO 9001 and ISO14001, quality control and
inspection procedure will be established for monitoring and calibration of the proposed project activity to assure monitoring accuracy when the applicable
area of these certificates is expanded at the time of commissioning. Such procedure will include, but not limited to, following features:

     Annual test and calibration of monitoring equipment, including semiannual recalibration by an officially accredited entity and weekly zero check of the
     two flow meters for HFC23;
     Definition of malfunction of monitoring equipment;
     Corrective actions in case of malfunction/breakdown or for more accurate monitoring and reporting;
     Internal audit;
     Project performance review.

Data Management System

A computer system saves and archives the data collected during monitoring process. The monitoring personnel are primarily responsible to manage the
computer system and to save data also in hard copy. If the Designed Operational Entity (DOE) makes a reasonable request for information not directly related
to the proposed project, Chenguang is responsible to provide it provided that certain confidentiality is secured and it should be archived in the data
management system also.


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Paper information, for example maps, tables, and governmental approval on environmental impact report, is utilized to supplement the monitoring, in order to
verify credibility of the saved information.

D.5      Name of person/entity determining the monitoring methodology:

The monitoring study is completed on October 26th, 2006

Contact information:

Ms. Zheng Wenru
Foreign Economic Cooperation Centre of Environmental Protection), China
227, Zhaodengyu Road, Xicheng District, Beijing, 100035
Tel: (+86) 10- 6653 2351
Fax: (+86) 10- 6653 2330
Email: zheng.wenru@sepafeco.org.cn

Mr. Xiao Xuezhi
Foreign Economic Cooperation Centre of Environmental Protection, China
227, Zhaodengyu Road, Xicheng District, Beijing, 100035
Tel: (+86) 10- 6653 2346
Fax: (+86) 10- 6653 2330
Email: xiao.xuezhi@sepafeco.org.cn




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SECTION E. Estimation of GHG emissions by sources

E.1.      Estimate of GHG emissions by sources:

Within the system boundary, GHG emissions include CO2 release due to conversion of HFC23 and
HCFC22 in plasma destruction process, CO2 equivalent of non-decomposed HFC23 and GHG (CO2 and
N2O) release from this project.

The possible release of un-decomposed HFC23 from the plasma destruction system is ignored because it
is infinitesimally small. The solubility of HFC23 is 0.1%wt at 250C water. Besides, HCFC22 is a type of
GHG with GWP of 1,700 (refer to IPCC Second Assessment Report).

The following indirect CO2 emissions are not considered, as these are very insignificant and not
measurable. This is in accordance with the approved AM0001/Version 04.

       CO2 released in the manufacture of packing material for absorption tower (caustic scrubbing tower)
       as this packing material is not consumable item. This packing material requires change only when
       broken;
       CO2 released in the fabrication/manufacture of equipment and machinery used in the project activity;

       CO2 equivalent of N2O released from the project activity, which is insignificant in comparison to the
       GHG emission reductions.

The nitrogen and deionized water needed by the plasma decomposition facility are not additionally
produced for this CDM project. They are widely used in other production processes of Chenguang, such
as fluorine rubber and polytetrafluoroethylene. To date, their surplus capacities are sufficient for the
needs of this CDM project. Therefore, the indirect emissions associated with their production aren’t
considered.

Within the system boundary, GHG emissions include CO2 release due to conversion of HFC23 in plasma
destruction process, CO2 equivalent of non-decomposed HFC23. Besides, the composition of HFC23
stream from vent of condenser after all the processes. It is likely that the project will decompose the
HCFC22 can be certified. The additional decomposed HCFC22 will make extra contribution to the global
environment.

E_DPy = ND_HFC23y * GWP_HFC23 + Q_HFC23y * EF

Where the parameters are those specified in the AM0001/Version 04 and also in Section B.

Identification of ND_HFC23y

The HFC23 destruction efficiency of the proposed technology is 99.99%.
ND_HFC23y = Q_HFC23y*0.01% = 176.61 * 10-4 t

Identification of Q_HFC23y

Q_HFC23y ≤ Q_HCFC22y * w = 5,887* 3% = 176.61 t
Identification of EF




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EF = 44/ [ ( molecular weight of             HFC23 ) /(number of the carbon atom in one molecular of
HFC23)]=0.62857

Therefore:

E_DPy = ND_HFC23y * GWP_HFC23 + Q_HFC23y * EF
      = 176.61 * 10-4 * 11,700 + 176.61 * 0.62857
      = 207 + 111
      = 318 tCO2e

E.2.     Estimated leakage:

According to AM0001/Version 04, the leakage is emissions of GHG due to the project activity that occur
outside the project boundary. The sources of leakage due to the plasma destruction process are:
- GHG (CO2 and N2O) emission associated with the production of purchased energy (electricity).
- CO2 emissions due to transport of the by-products of sludge and HF solution as well as the process
    inputs (sodium hydroxide and calcium hydroxide).

As mentioned previously, during the plasma destruction process of the project, N2O is also generated,
which is also a representative GHG with GWP value of 310 (refer to IPCC Second Assessment Report).
However, the quantity of N2O is very small and thus can be neglected during emission reduction
estimation.

                                       Ly = Q_ Powery * E_Powery + ETy

Where the parameters are those specified in the AM0001/Version 04 and also in Section B.

Identification of E_Powery

E_Power y is the greenhouse gas emissions factor for electricity during year y with unit of tCO2e /kWh. In
this project, the electricity required for this project will be supplied by the Central China Power Grid
which covers five provinces and one municipality (Henan province, Hubei province, Jiangxi province,
Sichuan province, Hunan province and Chongqing municipality).

On October 16, 2006, the National Development and Reform Commission of China (NDRC) issued the
emission factors for the CDM projects (Reference: The Summary of Calculation Results of Baseline
Emission Factors of China Grid). The operating margin (OM) and the build margin (BM) emission
factors for the Central China Power Grid are 1.2526 tCO2e /MWh and 0.6363 tCO2e /MWh respectively.
In this project, the OM emission factor is used for conservative purpose, i.e. E_Powery = 1.2526*10-3
tCO2e/kWh.

There are CaF2 sludge and HF/HCl solution generated as by-product for sale in this project. The process
inputs including sodium hydroxide and calcium hydroxide are purchased from Zigong Chemical Market.
Their transportation from the market to the Chenguang is also leakage source. The following table
provides detailed information about their transportation.




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               Table 1 Information about the Transport of By-Products and Process Input
                                 Item
                                                               HF/HCl
             Value                               Sludge                      NaOH      Ca(OH)2        Data source
                                                               Solution
Parameter
Amount (t/y)                                   1.7            433.1      9.6           2.484        Chenguang
Load-carrying capacity (t)                     5              5          3             3            Chenguang
Transportation distance (km)                   30             30         25            25           Chenguang
Fuel type                                                         gasoline                          Chenguang
Fuel efficiency (km/t- fuel)                                        4100                            Chenguang
Emission factor of fuel (t CO2e/t-fuel)                               2.17                          IPCC default
                                                                                                    value
Sub-total CO2 Emissions (t CO2e/y)             0.0053         1.37           0.042     0.011              -
Total CO2 Emissions (t CO2e/y)                 1.4                                                        -

 As shown in Table 1, total annual CO2 emission associated with the transport of the by-products and
 process inputs is only about 1.4 tCO2e, which is very small (compared with the large amount of CER
 generated by the project) and therefore to be neglected.

 As analyzed above, ETy, can be neglected, i.e. ETy is zero.

 The values of Q_Powery is 3.72×105 kWh/y, which is provided by Chenguang.

 Ly =   Q_ Powery * E_Powery + ETy
    =   3.72×105 * 1.2526*10-3 + 0
    =   466+ 0
    =   466 tCO2e

 E.3.     The sum of E.1 and E.2 representing the project activity emissions:

 The project EPy (tCO2e) represents the project activity emissions are expressed as:

 EPy = E_DPy + Ly
     = 318 tCO2e + 466 tCO2e
     = 784 tCO2e

 E.4.     Estimated anthropogenic emissions by sources of greenhouse gases of the baseline:

 In the unit of CO2 equivalent basis, where B_HFC23y is the baseline quantity of HFC23 destroyed during
 year y measured in metric tons (e.g., proportional to the regulatory level).

 The baseline quantity of HFC23 destroyed in a year y is described as

 B_HFC23y = Q_HFC23y * ry

  Where the parameters are those specified in the AM0001/Version 04 and also in Section B.
 In the absence of regulations requiring the destruction of HFC23 waste, the typical situation in non-
 Annex I Parties like China, ry = 0. Since China so far has no regulations on the control of HFC23




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emissions, the HFC23 waste is typically released to the atmosphere so the baseline scenario (B_HFC23y)
is zero destruction.

E.5.     Difference between E.4 and E.3 representing the emission reductions of the project activity:

The total emission reduction ERy in a regular year is expected to be:

ERy = (Q_HFC23y - B_HFC23y) * GWP_HFC23 - E_DPy - Ly
    = (Q_HFC23y – B_HFC23y) * GWP_HFC23 – (ND_HFC23y * GWP_HFC23 + Q_HFC23y * EF) –
       (Q_Powery * E_Powery + ETy)
    = 176.61 * 11700 – (176.61*0.01%*11700 + 176.61*0.62857) – (3.72×105*1.2526*10-3+0)
    = 2,066,337 tCO2e–318 tCO2e–466 tCO2e
    = 2,066,019 tCO2e –466 tCO2e
    = 2,065,553 tCO2e/y

Where ERy is the total emission reduction of the project activity in the given year y, and measured in tons
of CO2 equivalent.

E.6.     Table providing values obtained when applying formulae above:

                                Estimation of
                                                          Estimation of                              Estimation of
                                Project activity                             Estimation of
                                                        baseline emission                            Emission
 Year                           Emission                                     leakage
                                                           reductions                                reductions
                                reductions                                   (tonnes of CO2e)
                                                        (tonnes of CO2 e)                            (tonnes of CO2 e)
                                (tonnes of CO2e)
 Year 2007(May to
                                1,377,346               0                    311                     1,377,035
 December)
 Year 2008                      2,066,019               0                     466                    2,065,553

 Year 2009                      2,066,019               0                     466                    2,065,553

 Year 2010                      2,066,019               0                     466                    2,065,553

 Year 2011                      2,066,019               0                     466                    2,065,553

 Year 2012                      2,066,019               0                     466                    2,065,553

 Year 2013                      2,066,019               0                     466                    2,065,553

 Year 2014                      2,066,019               0                     466                    2,065,553

 Year 2015                      2,066,019               0                     466                    2,065, 553

 Year 2016                      2,066,019               0                     466                    2,065,553
 Year 2017                      2,066,019               0                     466                    2,065, 553
 Year 2018                      2,066,019               0                     466                    2,065,553




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 Year 2019                      2,066,019               0                     466                    2,065,553
 Year 2020                      2,066,019               0                     466                    2,065,553
 Year 2021                      2,066,019               0                     466                    2,065, 553
 Year 2022                      2,066,019               0                     466                    2,065,553
 Year 2023                      2,066,019               0                     466                    2,065, 553
 Year 2024                      2,066,019               0                     466                    2,065,553
 Year 2025                      2,066,019               0                     466                    2,065, 553
 Year 2026                      2,066,019               0                     466                    2,065,553
 Year 2027                      2,066,019               0                     466                    2,065, 553
 Year 2028 (January to
                                 688,673                0                    155                        688,518
 April)
 Total
 (t CO2e)
                                43,386,399              0                    9,786                   43,376,613

SECTION F. Environmental impacts

F.1.   Documentation on the analysis of the environmental impacts, including transboundary
impacts:

As required by “Environmental Impact Assessment Law of China” the proposed project shall go through
an Environmental Impact Assessment (EIA) and the project entity shall submit an EIA Report to local
Environmental Protection Bureau for approval.

A statement on EIA for the proposed project targeting this technology had been undertaken pursuant to
the stipulation of the law and ordinance above and approved by Environmental Protection Bureau (EPB)
of Zigong City, Sichuan Province, China on October 16th, 2006. The EPB of Zigong City thought the
project is technologically feasible11 and environmentally sound and therefore positively supported the
implementation of the proposed project. Meanwhile, the EPB also made the following requirements on
the construction and operation of the project:

1) Pollution control

All proposed countermeasures to possible pollution caused by the project, including air pollution, water
pollution, solid wastes pollution and noise pollution, should be seriously carried out to avoid secondary
pollution.

2) Compliance with relevant standards




11
  Reference: Environmental Science and Technology Consulting Service Centre of Zigong City, October 12, 2006,
the Technological Assessment on the Statement on the Environmental Impact Assessment of HFC23 Decomposition
Project at Zhonghao Chenguang Research Institute of Chemical Industry,




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The incinerator will be constructed as stipulated in the Pollution Control Standard for Hazardous Wastes
Incineration (GB 18484/2001). This can ensure that the incinerator is operated at negative pressure to
avoid the leakage of the toxic or harmful gas.

The gas cleanup system of the incinerator should be also constructed in a manner of standardization and
normalization.

3) Process safety

The storage, transport and use of the dangerous chemicals as consumables or by-products in the project
should be seriously compliance with complying with “Regulations on the Control over Safety of
Dangerous Chemicals 12 ”. The emergency response plan to potential environmental risks and
countermeasures to accidents should be carried out.

4) Resource comprehensive utilization

The wastewater generated by the project should be reused and recycled as much as possible.

The sludge is forbidden to be discharged with the wastewater. It should be dredged and dehydrated to
facilitate their comprehensive utilization.

The main impacts identified by the Statements on EIA are summarized below. The full EIA report is
available for review by the validator on request.

Gaseous effluents:

Destruction of HFC23 and HCFC22 generates hydrogen fluoride (HF) and hydrogen chloride (HCl). As
required by the Pollution Control Standard for Hazardous Wastes Incineration (GB18484-2001). It should
ensure that the plasma furnace system is operated at negative pressure. Therefore, the quantity of
unintended emission associated with the decomposition process is very small. If any, they are nearly fed
into the gas cleanup system. The waste gas generated by the plasma furnace is quenched and scrubbed
with water and caustic soda to completely remove such acid substances before being vented to the
atmosphere. The rapid quenching prevents the generation of dioxins.

According to the trial test data13 of the proposed plasma decomposition facility, the gaseous emission is
predicted (see the Table 2).
                                  Table 2 Gaseous effluents from the project
                                                         Pollution Control Standard for                Compliance
                                 Gas Emission
No.         Pollutants                                   Hazardous Wastes Incineration,                  Status
                                 Concentration
                                                                 GB18484-2001
1               HF                  <8 mg/m3                       ≤9.0 mg/m3                               Yes
                                                                                  3
2              HCl                 <80 mg/m3                         ≤100 mg/m                              Yes
                                                                                  3
3              CO                  <50 mg/m3                         ≤100 mg/m                              Yes


12
  Decree No. 344 of the State Council of the People's Republic of China. (Promulgation Date: 26th January 2002.
Effective Date: 15th March 2002
13
     Data source: Provided by Chenguang




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4               NOx                  <200 mg/m3                      ≤500 mg/m3                             Yes
                                                                                    3
5          Dioxin           <0.1 TEQng/m3                          ≤0.5 TEQng/m                             Yes
Data source: The Statement on EIA

From Table 2, we can see that the gaseous emission levels of the destruction system are much lower than
those emission levels required by China’s environmental standard on air pollution control (Pollution
Control Standard for Hazardous Wastes Incineration, GB18484-2001). So the proposed project fully
complies with local regulations for gaseous emission control.

Noise:

In this project, noise mainly comes from the induced draft fan for waste gas treatment and various kinds
of pumps. In order to weaken the noise, the project will apply equipment with low noise level and adopt
some measures such as sound insulation and vibration absorption in the plant.

The “Technical Guidelines for EIA: Noise Environment (HJ/T2.4-1995)” are used to predict the noise
impacts of this project. The main noise sources and their noise levels are given in Table 3. The combined
noise level of these twelve noise sources is predicted to be 70.8 dB(A)through noise superposition14
method.

                        Table 3 The main sources of noise and noise control measures

                                         Noise                                     dB(A)            Combined
          Main Noise
                               No.       Level         Control Measures           after Noise       Noise Level
           Source
                                        dB(A)                                       Control           dB(A)

                                                         Sound insulation,
      Induced draft fan
                                                        vibration damping,
      for waste gas             2           85                                          ≤60
                                                       installation of sound
      treatment
                                                             eliminator
                                                                                                        70.8

      Magnetic Diver                                   Vibration damping,
                               10           85                                          ≤60
      pump                                              sound insulation

        Data source: The Statement on EIA.

The contribution of the combined noise to the noise level at the boundary of east, south, west and north
are 26.8dB(A), 40.8dB(A), 40.8dB(A), and 48.8dB(A) respectively, which are fully compliance with the
threshold values15 of Category III of the Standard of Noise at the Boundary of Industrial Enterprises,
GB12348-90).
Liquid effluent:




14
     Noise superposition means to add up sound pressure levels of multiple noise sources.
15
     Day value: 65 dB(A), night value: 55 dB(A).




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The waste water generated from the alkaline tower contains small amount of NaF and NaCl. It will be
sent to the neutralization tank. After treatment, water pollutants, except chloride, can reaches the
requirements of Class I in the Integrated Wastewater Discharge Standard (GB8978-1996). A minute
quantity of chloride meets with the threshold values of the Water Pollutants Discharge Standard of
Sichuan Province (DB51/190-93)16 (see Table 4). Finally, the treated effluent is discharged through the
wastewater pipeline to the Tuo River.

According to the trial test data17 of the proposed plasma decomposition facility, the discharge of liquid
effluent is predicted as Table 4.

                               Table 4 Waste Water Discharges from the Project
           Indicator                       Value                    GB8978-1996                DB51/190-93
               PH                            6-9                          6-9                          -

            Fluoride                      ≤10mg/L                      ≤10mg/L                         -

            Chloride                      ≤300mg/L                          -                     ≤300mg/L

               SS                         ≤70mg/L                      ≤70mg/L                         -

          COD                     ≤100mg/L                             ≤100mg/l                        -
Data source: The Statement on EIA

F.2.    If environmental impacts are considered significant by the project participants or the host
Party, please provide conclusions and all references to support documentation of an environmental
impact assessment undertaken in accordance with the procedures as required by the host Party:

According to environmental impact assessment report, the environmental impact of the proposed project
is low.

SECTION G. Stakeholders’ comments

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

According to China’s EIA law, inviting stakeholders’ comments is not compulsory for this CDM project
as this project has no any significant impact on environment. Chenguang voluntarily implement this
project in a manner that seriously complies with national and local environmental regulations and
conducted stockholders’ comments through the following methods:

       Provide the investigation tables for the public (questionnaire-based survey)
       Solicit the opinion of the local government
       Public notice in the bulletin board of neighbour villages



16
     GB8978-1996 doesn’t stipulate the discharge concentration of chloride.
17
     Data source: Provided by Chenguang




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The contents of questionnaire design see Table 5. To facilitate the conduction of questionnaire-based
survey, the contents of questionnaire are designed according to the principles of simplicity, popularization,
directness, comprehensibility and avoiding inducement. An announcement of inviting stakeholders’
comments was posted on 9th December, 2005 in the bulletin board of the nearby villages committees
respectively to inform the public of the outlines of the project, at the same time Chenguang spread 50
copies of questionnaire. Meanwhile Chenguang also made a field clarification or explanation for the
proposed project itself to the interviewee in the process of questionnaire investigation and with some
explanation about the proposed project was attached:

    1)    Introduction of Kyoto Protocol and clean development mechanism (CDM)
    2)    The technological process meets with the requirements of clean production and reaches
          international advanced level. The proposed project would employ an advanced and high burning
          efficiency HFC23 destruction facility to reduce HFC23 emission to improve local and global
          environment;
    3)    About 71.5t/d wastewater would be treated by Chenguang’s wastewater treatment facilities to
          comply with national related environmental regulations and standards; and
    4)    The proposed project would create about 15 employment opportunities for local people.

The main stakeholders for this project are farmers since the surroundings of Chenguang plant are all
villages (see the Figure 3) without other factories and government agencies located nearby. Therefore, for
this reason, the affected areas of the proposed project are chosen as the scope of questionnaire. The 50
distributed questionnaires were returned on December 15th 2005.They are all valid and reliable.

Relevant information of 50 interviewees is given in Table 6.




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                                              Table 5 Questionnaire

            Name                                               Gender
            Occupation                                         Age
            Education                                          Minority
            Address
Information Working place
     of
                                    □within 10 years; □ 10 - 20 years; □20-30 years; □ over
interviewee How many years have
            you lived in this area? 30 years
                How far is your □within 500m; □500 -1000m ; □1000-2000m;□further
                location away from than 2000m
                Chenguang
                1. Are you satisfied with the present □satisfied □not satisfied □unclear
                local environment?

                2. Do you think it is important to carry       □very important □important □not important
                out this CDM project?                          □no idea

                3. Do you agree to carry out this CDM          □agree        □object        □don't care
                project??
                4. Do you think the selection of project       □reasonable         □not reasonable         □don’t
                location is reasonable?                        care
     The
                5. Which problem do you think is the           □air pollution     □water pollution        □noise
 attitude of
                main environmental problem caused
Interviewee
                by this project?
   on the
   project      6. In your mind, what impacts does
                                                               □improve the ecosystem     □damage the
                this project have on the ecosystem?
                                                               ecosystem     □no impacts on the ecosystem
                7. What impacts does this project have         □improve the environment     □damage the
                on local environment?                          environment     □no impacts on the
                                                               environment
                8. Are you satisfied with the
                                                               □satisfied □not satisfied □not sure □not
                countermeasures adopted to mitigate
                                                               familiar with the countermeasures
                adverse environmental impacts?
                9. What impact does this project have  □will improve local economy      □will
                on local economy?                      restrict local economy   □will not affect
                                                       local economy
                Do you have any comments on this project?
Comments
   and          Do you have any suggestions on this project? (please mention the measures you wish us
suggestions     to take during project development )




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                                      Table 6 Information of Interviewee

 Item                                     Type                                     No. of interviewee

 Gender                                   Male                                     26

                                          Female                                   24

 Age                                      <18                                      0

                                          18~35                                    4

                                          36~55                                    30

                                          >56                                      16

 Occupation                               Officer                                  0

                                          Worker                                   0

                                          Farmer                                   49

                                          Student                                  0

                                          Other                                    1

 Education                                Primary school                           15

                                          high school                              35

                                          University                               0


G.2.     Summary of the comments received:

The public opinions collected through questionnaire investigation were summarized in Table 7 confirmed
that local stakeholders have sufficient support for the proposed CDM project at Chenguang




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                              Table 7 Questionnaire investigation result
                                                                       No. of                      Percentage
   No                    Question                   Opinion
                                                                    interviewee                      (%)
           Are you satisfied with the present       Satisfied            50                           100
    1
           local environment?                     Unsatisfied            0                               0
                                                          Very important              49                98
                                                             Important                1                  2
           Do you think it is important to carry
    2
           out this CDM project?                           Not important              0                  0
                                                            Do not know               0                  0

                                                                Agree                 50               100
           Do you agree to carry out this CDM
    3                                                          Object                 0                  0
           project??
                                                            Do not care               0                  0
                                                            Reasonable                50               100
           Do you think the selection of project
    4                                                     Not reasonable              0                  0
           location is reasonable?
                                                            Do not care               0                  0
                                                            Air pollution             50               100
           Which problem do you think is the
    5      main environmental problem caused              Water pollution             0                  0
           by this project?
                                                          Noise pollution             0                  0
                                                          Positive impact             26                52
           In your mind, what impact does this            Negative impact             0                  0
    6
           project have on the ecosystem?
                                                             No impact                24                48
                                                          Positive impact             50               100
           What impact does this project have on
    7                                                     Negative impact             0                  0
           local environment?
                                                             No impact                0                  0
                                                              Satisfied               50               100
                                                            Not satisfied             0                  0
           Are    you     satisfied with   the
    8      countermeasures adopted to mitigate                Not sure                0                  0
           adverse environmental impacts?                   Not familiar
                                                              with the                0                  0
                                                          countermeasures
                                                          Positive impact             50               100
           What impact dose this project have on
    9                                                     Negative impact             0                  0
           local economy?
                                                             No impact                0                  0




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

The comments collected through the questionnaire-based survey mainly include the impact of the project
on the local environmental quality, emergency preparedness and the benefits that can be brought to the
local economy. The responses from Chenguang are as follows:

a)     Environmental quality:
           Air quality: Chenguang has taken an EIA for the project and make some countermeasures to
           possible pollution. The pollutants discharge will fully comply with relevant national standard.
           During the project construction period, Chenguang will take several measures to control dust,
           such as setting up site fence, sprinkling the construction road with water, and closing over all
           the construction materials of small-particle size. During the project operation period, as the
           HFC23 destruction facility employed by the project can clean the off-gas before it is vented to
           the atmosphere, air pollution can be effectively controlled under normal operation.

           Water quality: the wastewater generated form the proposed project contains a small amount of
           NaF and NaCl. It will be sent to the neutralization tank at Chenguang. After treatment, it can
           respectively meet with related national and local discharge standards as mentioned in Section
           F.1.

           Solid wastes: The amount of sludge generated in the process of wastewater treatment is
           estimated to be 1.7t/y, which will be sold as a raw material to other company. Therefore, there is
           almost no pollution except a small amount of negligible emissions associated with the transport
           of sludge.

b)     Emergency preparedness: All countermeasures identified in the EIA report would be strictly and
       seriously adopted to mitigate possible adverse environmental impacts to maximum extent; and the
       critical process-related destruction facility will be maintained and inspected regularly to detect
       potentials for accidents and prevent spill of raw materials and air pollutants contained in flue gas
       during operation. Furthermore, Chenguang will check the destruction facility regularly in order to
       ensure normal operation.

c)     The local economy: Chenguang also informed the stakeholders that the proposed project would
       contribute to the sustainable development of region and country by attracting foreign finance into
       China, and harmonious and steady social development by providing more employment opportunities.
       Chenguang will receive additional revenue on account of transfer of CERs to Annex I countries that
       have commitments under Kyoto Protocol. This will have a positive impact on local economy;
       Regarding future employment created by the proposed project, Chenguang responded that the
       company preferred to employ local residents to help local governments solve unemployment
       problem;




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                                                       Annex 1

          CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY

Organization:               Zhonghao Chenguang Research Institute of Chemical Industry
Street/P.O.Box:
Building:
City:                       Zigong
State/Region:               Sichuan Province
Postfix/ZIP:                643201
Country:                    China
Telephone:                  0086-813-7202180
FAX:                        0086-813-7201124
E-Mail:                     cgy@chenguang.cn
URL:                        http://www.chenguang.cn/index.htm
Represented by:
Title:                      Director
Salutation:                 Mr.
Last Name:                  Chen
Middle Name:
First Name:                 Bo
Department:
Mobile:                     (+86) 13309000326
Direct FAX:                 (+86) 813 7201124
Direct tel:                 (+86) 813 7202180-2032
Personal E-Mail:

Organization:               Enel Trade S.p.A.
Street/P.O.Box:             Viale Regina Margherita 125
Building:
City:                       Roma
State/Region:
Postfix/ZIP:                00198
Country:                    Italy
Telephone:                  +39-06-8305-8506
FAX:                        +39-06-8305-4810
E-Mail:                     eliano.russo@enel.it
URL:                        www.enel.it
Represented by:
Title:
Salutation:                 Mr.
Last Name:                  Russo
Middle Name:
First Name:                 Eliano
Department:                 Generation and Energy Management Division -Business Area Energy
                            Management
Mobile:




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Direct FAX:                 +39-06-8305-4810
Direct tel:                 +39-06-8305-8506
Personal E-Mail:




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                                                       Annex 2

                           INFORMATION REGARDING PUBLIC FUNDING

No Official Development Assistance (ODA) Fund is used in this project.




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                                                       Annex 3

                                          BASELINE INFORMATION

Indicator          Definition                     Value                                     Data source
Q_HFC23y           Quantity of HFC23                                                        Calculated from
                   destroyed during year y                                                  q_HFC23y, P_HFC23y
q_HFC23y           Quantity of HFC23                                                        Monitored by flow
                   waste fed to the                                                         meters
                   destruction process
P_HFC23y           Purity of HFC23 fed to                                                   Measured by gas
                   the destruction process                                                  chromatograph
B_HFC23y           Baseline quantity of           0                                         Estimated by the
                   HFC23 destroyed                                                          applicable regulations
Q_HCFC22y          Maximum historical             5,887 t HCFC22                            Provided by
                   HCFC22 production at                                                     Chenguang
                   Chenguang between
                   2000 and 2004
w                  HFC23 generation rate          3.00 % (t HFC23 / t HCFC22)               Provided by
                   at Chenguang                                                             Chenguang
GWP_HFC23          Global Warming                 11,700 (tCO2 e/ tHFC23)                   IPCC default value
                   Potential value of
                   HFC23
EF                 Emission factor of             0.62857 (tCO2 / tHFC23)                   AM0001
                   HFC23
E_Powery           CO2 emission factor of         1.2526*10-3 (tCO2e/kWh)                   Official data from the
                   the Central China Power                                                  China’s DNA (NDRC)
                   Grid power consumed
                   by the project

Please refer to Section E of this project design document for detailed estimation and calculation of the
above indicators.




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                                                                         Annex 4

                                                            MONITORING PLAN

                                                                                                                                                                           Gaseous effluent


                     q_HFC23y           Q_HFC23y                  Project                                        Boundary                                    ND_HFC23y
                      meausred      Calculated from q_HFC23y and p_HFC23y                                                                                     meausred

 Q_HCFC22y                                                                                                                                                                   CO2_HFC23y
                     p_HFC23y
                                                                                                                                        Deionized                           Calculated from
  meausred            meausred
                                                                                                                                         water                                q_HFC23y
  HCFC22           HFC 23                                                                                                                           Alkaline
   Plant                                                                                                                                             tower
                  Compressed Air



                                                                         Absorption



                                                                                                             Absorption
                                                                                                              tower II


                                                                                                                           Absorption
                                                                                                                            tower III
                                                                          towerⅠ
                                         arc furnace




                    N2
                                           Plasma




                                                                                                                                                                                                Stack

                                                                                     to
                                                                                                                                                    30% NaOH




                                                                                                                                                                                Exhaust stack
  DC power                                                                                                                                           Solution

                  Deionized water
  Q_Powery
                      recycling
                                                                           HF/HCl solution recycling




                                                                                                                                                                NaCl NaF
  meausred
 CO2_Powery                                                                                                                                  Recirculation
                                                                                                       HF/HCl solution recycling                pump
Calculated from                                        HF/HCl solution
                                        Quench
  Q_Powery                                                recycling
                                                                                                                   Acid tank
                  HF/HCl solution recycling            HF/HCl solution
                                                          recycling                                                                                                                               Liquid
                                        Graphite                                                                                                        Neutralization tank                       effluent
                                       condenser         HF/HCl solution                                                                                  Ca(OH)2 Solution                         Sludge
                                                            recycling
                                                                                                                                                                                                   (CaF2)
                                                                    Recirculation
                                                                       pump

                                                                                                                          HF/HCl Solution (40%)
                      HFC23y_Sold                  B_HFC23y                                                                    by-product
                         meausred             Calculated from domestic regulation status


According to AM0001 methodology, the following parameters will be monitored.

1. The quantity of HFC23 supplied to the plasma destruction process (q_HFC23y) will be directly and
   continuously measured by using two flow meters. It will be confirmed through checking the harmony
   of the values obtained by the additional flow meter located just after Unit A and the two flowmeters
   located near the HFC23 destruction facility. In order to have more accurate data, the flow meters
   located near the HFC23 destruction facility will be calibrated every six months by an officially
   accredited entity. The zero check on the flow meters will be conducted every week. If the zero check
   indicates that flow meter is not stable, and immediate calibration of the flow meter will be undertaken.
   When one flow meter is recalibrated, the other flow meter will continue measuring the quantity of
   HFC23 fed to the destruction process.
2. The purity of HFC23 supplied to the destruction process (p_HFC23y) will be checked monthly by
   sampling and using gas chromatography.
3. The quantity of HCFC22 produced (Q_HCFC22y) will be measured by weighing. The amount of
   HFC23 generated from the HCFC22 plant will be checked yearly against the Q_HCFC22.
4. The electricity consumption (Q_powery) will be measured by a meter.
5. The quantity of leaked HFC23 in gaseous effluent (ND_HFC23y) will be measured by sampling.
6. The quantities of gaseous effluents (CO, HCl, HF, organic carbon, dioxin and NOx) will be measured




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    twice a year to ensure that the project is in compliance with the relevant environmental standard in
    China (GB18484-2001: National Pollution Control Standard for Hazardous Wastes Incineration).
The quantities of liquid effluents (PH, COD, BOD, SS, fluoride and metals) will be measured twice a year
and checked against the relevant environmental standard in China (GB8978-1996: Integrated Wastewater
Discharge Standard).

Monitoring structure:
During the project implementation, operators of each shift will record the monitoring data both electronic
and paper-based, and the shift heads should check the records to ensure their accuracy. One professional
monitoring personnel will be assigned to collect the monitoring data and other supporting data to make a
weekly report to the manager of HFC23 destruction facility. The manager will not only give a report to
the Director every month, but also prepare the semi-annual monitoring report to DOE for emission
reduction verification with the assistance of the monitoring personnel.

Personnel from other departments will support the monitoring work of the HFC23 destruction. Plant
manager of HCFC22 production, quality assurance department manager and information centre personnel
will provide monitoring personnel information he/she needed, such as data about HCFC22 production,
sample analysis results and computer system maintenance.

The personnel relevant with monitoring work will be trained to acquire comprehensive knowledge with
regards to general and technical aspects of CDM project. And the monitoring equipments supplier will
provide instruction on installation, operation, maintenance and calibration of their equipments.




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