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					General Project Description
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                                          Appendix 6
                                   Project Design Document
                                                 PDD - Version 4




A      General Project Description




A 1 PROJECT IDENTIFICATION



                                             Title of the project activity

      “Electric Power Production on Stripped Casing-head Gas
                           in Boryslav”



Applicant

Scientific-productive company “Eastern European Energetic Union” Ltd.




                                  Date of Submission: 26 September 2005
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A 2 GENERAL INFORMATION


A 2.1 General information
Project name                          Electric Power Production on Stripped Casing-head Gas in Boryslav



Project type                          ⃝      Avoidance

                                            Reduction
Description of the project activity   The objective of the project is utilization of non-conventional energy source – stripped
and its purpose                       casing-head gas for power production. The proposed technology is environmentally
(EB PDD A.2.)                         sound and resources-saving providing reduction of GHG emissions. Stripped casing-
                                      head gas (SCH gas) emerges as Casing-head gas that for the environmental safety
                                      reasons has to be vacuumed from multiple (about 400) operated and abandoned oil
                                      wells and stripped from heavy liquid fractions of oil at the Oil-and-gas Production
                                      Department "Boryslavnaftogas" (further to be referred to as OGPD
                                      “Boryslavnaftogas”) of Open Joint-Stock Company “Ukrnafta” (further to be referred to
                                      as OJSC "Ukrnafta"). OGPD “Boryslavnaftogas” is obligated to vacuum Casing-head
                                      gas to avoid gas contamination of Boryslav city, which already has an extremely high
                                      background concentration of methane. Incidences of housing explosions with human
                                      victims took place in the past. The major problem is that SCH gas in the meantime
                                      does not have a consumer, which is able to utilize it. Historically SCH gas is
                                      transported through an old pipe from OGPD “Boryslavnaftogas” to Oil Refinery Plant
                                      “Galychyna”, where almost all (more than 99%) SCH gas is flared due to its
                                      uselessness. Only a small part of it together with natural gas used to fire the boiler
                                      house of the Oil-refinery Plant “Galychyna”. The boiler house has small installed
                                      capacity and operates only during the winter season for heating of administrative
                                      buildings of a plant, and only if the plant operates. So this amount of SCH gas earlier
                                      used at the boiler house of ORP “Galychyna” is not even considered as a leakage.
                                      ORP “Galychyna” has a strong intention to disconnect from the pipeline with SCH gas,
                                      escaping from status of its nominal consumer. In order to avoid wasting SCH gas the
                                      proposed project technology envisages construction of 11.91 MW power plant near
                                      Borislav city (in Drogobych region) based on gas-reciprocating engines fuelled by
                                      SCH gas.

Description of the background to Over 2000 wells left in the town of Boryslav and around it, which are the elements of
the project                      oil extraction system. For a long time Boryslav and its inhabitants were in a very
                                 dangerous environmental situation caused by contamination by casing-head gas – a
                                 by-product of oil extraction, emerging from oil boreholes. Due to that, the Council of
                                 Ministers of Ukrainian SSR by the Resolution of 21.05.1972 and the State
                                 Commission on Ecological Security and Emergency Situations by Meeting Protocol №
                                 1 of 07.04.2000 obligated enterprise OJSC “Ukrnafta” (Ukrainian oil company) to
                                 execute a complex of measures aimed to eliminate contamination by casing-head gas
                                 in Boryslav. These measures included installation of gas-vacuum system on the wells.
                                 Since installation of the system gas has been extracted, collected and transferred to
                                 gas processing enterprise OGPD “Boryslavnaftogas” (department of OJSC
                                 “Ukrnafta”), where the gas is stripped from heavy fractions of oil (C3+) and Stripped
                                 Casing-head gas delivered to ORP “Galychyna”, where it is flared.
                                 Quality of SCH gas (oxygen content is approximately 5%) doesn't meet the
                                 requirements of state standard (GOST 5542-78). "Safety Rules for Gas Supply
                                 System of Ukraine" allow the content of oxygen in natural gas to be only up to 1%. So,
                                 stripped vacuum gas is not allowed for transferring through the network of
                                 “Obltransgas” (Lviv Oblast natural gas supply company).
                                 Due to the absence of consumer for the SCH gas, approximately 3 mill m3 of gas is
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                                    flared every month. The potential for GHG emission reduction is in replacement of
                                    power in the grid by power generation on stripped casing-head gas. (See details of
                                    SCH gas production dynamics in the past and production dynamics for the future by
                                    OGPD “Boryslavnaftogas” in Annex 2).
                                    The only feasible way to change current situation is construction of power plant near
                                    Boryslav based on gas-reciprocating engines fuelled by SCH gas. The plant will:
                                    - ensure sustainable use of ill-conditioned gas;
                                    - contribute to the satisfaction of power demand in Lviv oblast;
                                    - contribute to reduction of GHG emission due to utilisation of SCH gas.
                                    The project will allow having a new power generating capacity in industrial Lviv oblast
                                    and in Drogobych region in particular. That will increase general reliability of local
                                    energy system. Electricity consumption in the region tends to grow. Total capacity of
                                    high-voltage power grid of Drogobych region is 195 MW.
                                    Main electricity consumers of the region are:
                                    - "Oil-refinery Plant – Galychyna" – 6,738,300 kWh/yr;
                                    - State enterprise "Sirka" – 42,198,800 kWh/yr;
                                    - "Pulp and paper mill "Zhydachiv" – 41,125,100 kWh/yr;
                                    - "Polymineral", Stebnyk city – 9,714,400 kWh/yr.
                                    Three power plants operate in the region:
                                    - CHP plant of Drogobych public corporation ORP “Galychyna” – installed capacity is
                                      17 MW;
                                    - CHP plant of State Enterprise "Sirka" (Rozdol) – installed capacity is 18 MW;
                                    - CHP plant of public corporation "Zhydachiv Pulp And Paper Mill" – installed capacity
                                      is 12 MW.
                                    The existing CHP plants do not meet energy demand of the region. Drogobych local
                                    power grid imports electricity from other regions of Ukraine. Despite of industrial
                                    intensity of the region, reliability of its energy supply system is low because of the
                                    deficit of energy generating sources. The sound solution in this situation is increasing
                                    region‟s energy capacities. Experts of Scientific-productive company “Eastern
                                    European Energetic Union” Ltd. predict a stable demand for power produced by the
                                    plant planned to be constructed within the framework of a JI project.

                                    Brief history of a project:
                                    1. Issue on construction of a power plant fuelled by SCH gas was discussed at the
                                    meeting of scientific and technical council of OJSC “Ukrnafta” on 27.03.2001 in Kyiv.
                                    2. In February 2002 Scientific-productive Company “Eastern European Energetic
                                    Union” was founded.
                                    3. In 2002 the feasibility study on SCH utilization was performed by SPC “Eastern
                                    European Energetic Union”. The feasibility study showed that the best technology for
                                    SCH gas utilization is 6 gas-reciprocating engines “Caterpillar” G3532TA (1985 kW).
                                    Mayor and all communal services of Boryslav city have approved the feasibility study.
                                    4. During 2002 – 2004 gas samples were tested, investment opportunities studied,
                                    and other basic data verified. The feasibility study was corrected a couple of times due
                                    to the new data on gas characteristics, prices of equipment, etc. (Testing results
                                    obtained by Zeppelin Ukraine where sent to Austrian JI/CDM Programme before.
                                    Standard on SCH gas parameters may be found in Annex 2).
                                    5. Feasibility study showed that project couldn‟t be performed without foreign
                                    investments. The investment barrier can be resolved if the Company will invest 15%
                                    from its own funds. This is an investment condition of Czech Bank “Ceskoslovenska
                                    obchodni banka” (Extracts from contract between PSG-International and SPC
                                    “Eastern European Energetic Union” were submitted before to Austrian JI/CDM
                                    Programme. Annex 5 contains excerpts from that Contract on the 15% advanced
                                    payment and on the price of a Contract). 15% means about 1,000,000 EUR, which the
                                    SPC “Eastern European Energetic Union” does not have. Management staff of the
                                    SPC “Eastern European Energetic Union” was aware about ratification of the Kyoto
                                    Protocol by Ukraine in 2004. The decision on breaking down the investment barrier
                                    through JI mechanism was made in summer 2004 after a meeting of management
                                    staff of the SPC “Eastern European Energetic Union” (Excerpt of the meeting protocol
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                                    from August 12th, 2004 is in Annex 4). After tendering the consultants on JI
                                    mechanism realization SPC “Eastern European Energetic Union” laid a contract with
                                    SEC “Biomass” on preparation of the Expression of Interest documents for the First
                                    Call of Austrian JI/CDM Programme with SEC “Biomass” on 23.09.2004, N 5/2004.
                                    Emission reduction calculations showed that 30% prepayment for ERUs will
                                    compliment the investment needs as a contribution from the SPC “Eastern European
                                    Energetic Union” to receive credit from Czech Bank.
                                    6. On 30.03.2004 the board of directors of OJSC “Ukrnafta” decided to issue 0.1650
                                    hectares of land from OGPD “Boryslavnaftogas” to SPC “Eastern European Energetic
                                    Union”.
                                    7. By July 7, 2004 the OJSC “Girhimprom”, a licensed entity has made a
                                    Environmental Impact Assessment on the project activities for construction of gas-
                                    generator power plant on the territory of OGDP “Boryslavnaftogas” (Translated extract
                                    from this EIA is available in Annex 1).
                                    8. On September 27, 2004 the Expression of Interest for the project “Electric Power
                                    Production on Stripped Casing-head Gas in Boryslav” was submitted to Austrian
                                    JI/CDM Programme.
                                    9. On 05.10.2004 the board of directors of OJSC “Ukrnafta” decided to approve a
                                    contract between OGPD "Boryslavnaftogas" and SPC “Eastern European Energetic
                                    Union” Ltd. on a long-term supply of stripped casing-head gas and its price. The
                                    Contract N 1/4/184/129-G was signed in 2004 (the translation of the contract was sent
                                    to Austrian JI/CDM Programme before).
                                    10. On December 20, 2004 the Czech Bank “Ceskoslavenska obchodni banka” have
                                    sent a notification letter to SPC “Eastern European Energetic Union” on consideration
                                    of crediting (the letter was sent to Austrian JI/CDM Programme before).
                                    11. Contract on long-term land use rent for construction of a power plant and its
                                    operation will be laid with the Regional authority in the near future (By the end of
                                    August the final decision on land issue will be made. As soon as it will be available,
                                    the copy will be sent to Austrian JI/CDM Programme). So far, the decision of
                                    Drohobych District Council of Lviv Region from October 21, 2004, # 331 “On the
                                    approval of the conclusion concerning preliminary agreement on the location of land
                                    designated for gas-generator heat power plant for SPC „Eastern European Energetic
                                    Union‟ on the territory of Modrychi village council ” was sent before to Austrian JI/CDM
                                    Programme.




A 2.2 Category(ies) of project
activity
Project category                    ⃝        Construction (retrofitting) of combined heat and power coupling plants
(EB PDD A.4.2.)                     ⃝         Energy sources transfer in energy conversion installations and production
                                              plants to renewable energy sources or from energy sources with high
                                              carbon content to energy sources with lower carbon content, especially in
                                              existing district heating systems

                                             Construction (or retrofitting) of generating plants operated with renewable
                                              energy sources (especially wind power stations, biogas or biomass
                                              combined heat and power coupling as well as hydroelectric power plants)

                                    ⃝         Projects whose purpose is the avoidance or (energy) recovery of landfill gas

                                    ⃝         Waste management measures which contribute to avoidance of
                                              greenhouse gas emissions especially through energy recovery of waste, if
                                              possible under consideration of waste heat utilisation
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                                    ⃝              Projects serving the reduction of end-user energy consumption in residential
                                                   accommodation, public and private service office buildings as well as in
                                                   industrial applications and processes (including waste heat potentials)
                                                   (energy efficiency projects)

                                    ⃝              Other: ______________________________________________________




A 2.3 Greenhouse gases
Greenhouse gases reduced                    CO2
through the project
                                    ⃝        CH4

                                    ⃝        N2O

                                    ⃝        HFCs

                                    ⃝        PFCs

                                    ⃝        SF6



For small-scale projects simplifications in certain areas are possible (baseline, monitoring plan etc.). Information
is available at http://cdm.unfccc.int/.


A 2.4 CDM project category
CDM project category                ⃝        Normal project

                                            Small-scale project

                                        o       Renewable energy project activity with a maximum output capacity
                                                equivalent of up to 15 megawatts (or an appropriate equivalent)

                                        o       Energy efficiency improvement project activity which reduces energy
                                                consumption, on the supply and/or demand side, by up to the equivalent of
                                                15 gigawatthours per year
                                        o       Other project activity that both reduces anthropogenic emissions by sources
                                                and directly emits less than 15 kilotonnes of carbon dioxide equivalent
                                                annually
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A 3 PROJECT PARTICIPANTS (EB PDD A.3.)


A 3.1 Applicant

Name                                  Scientific-productive company “Eastern European Energetic Union” Ltd.

Type of organization                  ⃝      Authorities: _________________________________________________

                                            Private enterprise

                                      ⃝      NGO

                                      ⃝      Other: _____________________________________________________

Other functions of applicant within   ⃝      Sponsor
the project
                                      ⃝      Intermediary

                                            Technical consultant

                                      ⃝      Other: _____________________________________________________

Main activities, knowledge and        Scientific-productive company “Eastern European Energetic Union” Ltd. was
experience                            established in February 2002. Its main activity includes production, transmission and
                                      supply of power in Ukraine. Now activity of the company is concentrated at the JI
                                      project on construction of power plant on stripped casing-head gas.

Address                               01032, Ukraine, Kyiv, 23/4 Sagaidachnogo str., 3rd Floor


URL                                   ---

Phone/fax                             Ph. (+380 44) 463 71 06, 463 71 08; Fax (+380 44) 463 71 06

                                      eeeu@mail.ru
E-mail

Contact person                        Mr. Protsyshyn, Vasyl Bogdanovych – Director general of SPC “Eastern European
                                      Energetic Union”
Name, department, phone, fax,
                                      Ph. (+380 44) 463 71 06, 463 71 08; Fax (+380 44) 463 71 06
e-mail                                E-mail: eeeu@mail.ru
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A 3.2 Project developer

Name                                Scientific Engineering Centre “Biomass”

Type of organization                ⃝        Authorities: _________________________________________________

                                            Private enterprise
                                    ⃝        NGO
                                    ⃝        Other: _____________________________________________________

Other functions of project          ⃝        Sponsor
developer within the project
                                    ⃝        Intermediary

                                            Technical consultant
                                ⃝      Other: _______________________________________________________
Main activities, knowledge and SEC “Biomass” is one of the most experienced companies in the field of energy
experience                     production from biomass in Ukraine. The Company was established in January 1998.
                               Present staff is 15 experts including 5 PhDs. SEC “Biomass” has a broad experience
                               in development and implementation of international and local bioenergy projects.
                               Besides SEC “Biomass” possesses an experience in the preparation of projects for
                               international programmes within the framework of Kyoto protocol mechanisms. Main
                               activities of the company:
                                Consultancy on technologies for energy production from biomass.
                                Pre-feasibility and feasibility study. Development of business plans.
                                Identification of bioenergy projects. Search for project financing.
                                Development and management of bioenergy projects.
                                R&D work. Design and engineering work.
                                Organization of subject seminars/ conferences/ training courses.
                                Development of JI projects within the framework of Kyoto protocol mechanisms.

Address                             2A, Zhelyabov str., 03057, Kyiv, Ukraine


URL                                 www.biomass.kiev.ua
Phone/fax                           tel. +(38 044) 456 94 62, 453 28 56; fax: +(38 044) 456 94 62


E-mail                              info@biomass.kiev.ua
Contact person
                                    Mr. Filonenko Alexander – Consultant
                                    tel. +(38 044) 456 94 62, 453 28 56; fax: +(38 044) 456 94 62
Name, department, phone, fax,       filonenko@biomass.kiev.ua
e-mail
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A 3.3 Other project participants

Name                                Zeppelin Ukraine – official representative of the US company CATERPILLAR.


Type of organization                ⃝        Authorities: _________________________________________________
                                            Private enterprise
                                    ⃝        NGO
                                    ⃝        Other: ______________________________________________________

Other functions of project          ⃝        Sponsor
participant within the project      ⃝        Intermediary
                                            Technical consultant
                                            Other: Operator of the equipment during the warranty period with possible
                                             extension

Main activities, knowledge and      Zeppelin Ukraine proposes on the market:
experience                               -      excavation equipment;
                                         -      road construction equipment;
                                         -      gas engines (8-5720 kW)
                                         -      CHP units
                                         -      Etc.
                                    Zeppelin Ukraine company specialists provide services on selection of required
                                    equipment (from a certain unit to whole complexes) in order to maximise efficiency at
                                    the least cost. The equipment usually manufactured considering needs and orders of
                                    each customer. Maintenance and supply of the spare parts provided by a company
                                    during the whole exploitation term of the equipment on the territory of Ukraine.

Address                             34 Vasylkivska str., 3-rd floor, Kyiv, Ukraine 03022


URL                                 www.zeppelin.com.ua
                                    (+38 044) 494-23-30/(+38 044) 494-23-31
Phone/fax

E-mail                              zeppelin@zeppelin.com.ua

Contact person                      Mr. Lavinukov Robert Valerievych

Name, department, phone, fax,       Head of the power units sales department
                                    Phone: +38 044 494 23 30 ext. 142
e-mail
                                    E-mail: Robert@zeppelin.com.ua
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A 4 LOCATION OF THE PROJECT ACTIVITY


A 4.1 Host country
Host Country Party(ies)                 Ukraine

(EB PDD A.4.1.1.)

Region/State/Province etc.              Lviv oblast

(EB PDD A.4.1.2.)

City/Town/Community etc.                Boryslav

(EB PDD A.4.1.3.)



A 4.2 Location of the project
activity
Detail on physical location,            Boryslav is situated in western part of Ukraine (Lviv oblast) not far from Truskavets,
including information allowing the      worldwide famous spa.
unique identification of this project   Lviv oblast: location in Ukraine
activity

(EB PDD A.4.1.4.)

Please enclose a map of the
project location.




                                        Lviv oblast: location of the town of Boryslav




                                        Power plant will be constructed on the land plot of 0.445 hectares. Part of the plot
                                        (0.165 hectares of free area) is located on the territory of gas processing enterprise of
                                        OGPD "Boryslavnaftogas"; the rest (0.28 hectares) belongs to the local council of
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                                    Modrychi village and located outside the village at a distance of 1.5 km. The village of
                                    Modrychi is situated near Borislav (Drogobych region). Part of land plot (0.28
                                    hectares) belonging to Modrychi is a plain area in the form of quadrangle without any
                                    constructions and green plantations. Part of construction site that belongs to OGPD
                                    "Boryslavnaftogas" has connection to industrial water, drinking water, and sewerage.
                                    The construction site is easy to reach by highway Boryslav-Drogobych. The site was
                                    selected according to resolution of the scientific and technical council of OJSC
                                    “Ukrnafta” (N 29 of 27.03.2001). The advantages of the power plant location are:
                                         1) Minimal distance for SCH gas transmission (less than 100 metres).
                                         2) The possibility of linking gas engines to existing gas-distributing devices (6
                                    kV);
                                         3) Minimal distance from gas engines to gas-distributing devices (6 kV) – less
                                    than 50 metres.
                                         4) The possibility to supply electricity to local power grid through 35 kV
                                    transformer substation without its reconstruction.
                                         5) The possibility to supply part of electricity (1.5 MW) to OGPD
                                    "Boryslavnaftogas" for its production needs directly through the 6 kV gas-distributing
                                    devices avoiding regional power grid OJSC "Lvivoblenergo".


Is the location in a nature reserve? ⃝       Yes

                                            No

Will the project have effects on    Positive effect due to establishment of reliable and independent source of power
residents?                          production.
                                    All other effects (noise, emission) will remain within the limits of Ukrainian norms and
(e.g. noise, smell, other
                                    standards as it was before the project realisation.
immissions, additional
infrastructure, ...)
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A 5 SCHEDULE


A 5.1 Schedule
Starting date of the project activity   October 2005 (expected)
(e.g. start of construction)

(EB PDD C.1.1.)

Construction period                     October 2005 – July 2006

Construction phases                     Measures                                     Duration

                                        Preparation of construction territory and    August-September 2005
                                        other preparatory work

                                        Reconstruction of the main building of       October-December 2005
                                        power plant

                                        Mounting of the equipment                    January-February 2006

                                        Building of outside water supply network     March-April 2006
                                        and sewerage system

                                        Laying of outside power network              May-June 2006

                                        Connection to local power grid               June 2006

                                        Local land improvement                       July 2006

Date of commissioning                   August 2006

Expected operational lifetime of        20y
the project activity
                                        (operational lifetime of the new project equipment)
(in years and months, e.g. two
years and four months would be
shown as: 2y-4m)

(EB PDD C.1.2.)



A detailed project schedule is to be enclosed.


The crediting period corresponds to the period during which 'creditable' emission reduction certificates can be
generated.

JI Projects

The Marrakesh Accords do not specify for how long emission reduction certificates can be generated by a JI
project. It can however be assumed that the crediting period will correspond to the first commitment period (2008
- 2012).

CDM Projects
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The crediting period of CDM projects is stipulated in the Marrakesh Accords as follows:
        7 years with two extension options (each with renewed baseline determination), i.e. a maximum total of
         21 years,
        once 10 years with no renewal option.
Crediting of the Certified Emission Reductions, CERs, can be performed retroactively from the year 2000.
Contractual parties having carried out CDM projects since 2000 must be able to prove the fulfilment of the CDM
criteria to be retrospectively credited CERs.


A 5.2 Choice of the crediting
period
JI projects
                                    Starting date of the crediting period (DD/MM/YYYY): 1/01/‟2008

                                    Duration of the crediting period: 5 years

CDM projects                        ⃝        Renewable crediting period
(EB PDD C.2.1., EB PDD C.2.2.)               (at most seven years per period)

                                    ⃝        Fixed crediting period
                                             (at most ten years)

                                    Starting date of the (first) crediting period (DD/MM/YYYY): ________________

                                    Length of the (first) crediting period: _________________________________
                                                                            (in years and months, e.g. two years and
                                                                            four months would be shown as: 2y-4m)
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A 6 TECHNICAL DESCRIPTION OF THE PROJECT


A 6.1 Technology to be
employed by the project activity

Project technology used and listing The project technology refers to construction of a 11.91 MW power plant fuelled by
of all measures                     SCH gas. Expected annual SCH gas consumption of the plant is 30.71 mill m3 at
                                    methane concentration in SCH 76%. (Testing results conducted by project partner
Please refer to Appendix 2.
(EB PDD A.4.3.)                     Zeppelin Ukraine were sent before to Austrian JI/CDM Programme).

                                    The fundamental elements of power plant are 6 motor-generator containers of
                                    TEDOM TGS 2000 type. The source of electrical energy is Genset C2000, which
                                    consists of a gas internal combustion engine (1985 kW) with a generator. Each motor-
                                    generator container contains one Genset C2000. Gas combustion engine of G 3520C
                                    type is a product of company CATERPILLAR (USA).

                                    Power plant will be connected to 110 kV Energy Market Grid (national level grid), 35
                                    kV – Drogobych high-voltage power grid of OJSC “Lvivoblenergo” (regional level local
                                    grid), and to 6 kV cable directly to OGDP “Boryslavnaftogas”.
                                    Detailed technical description of the project is presented in Appendix 2.
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A 7 PROJECT ORGANISATION


A 7.1 Economic aspects
Public funding of the project            The project has no public funding
activity
Level and source of public funding
for the project activity, including an
affirmation that such funding does
not result in a diversion of official
development assistance and is
separate from and is not counted
towards the financial obligations of
the funding Parties
(EB PDD A.4.5.)
Economic viability                       See Business Plan – Appendix 1, and Appendix 1.1 (confidential).
A detailed financing plan and an
economic viability calculation (for
at least 15 years) has to be
enclosed. Please refer to Appendix
1.
Indicative offer price for               6.0 EUR/per ton of CO2e.
ERUs/CERs
Please include an illustration of the
price calculation and of the
underlying assumptions.


A 7.2 Legal aspects
Status of the official approval          Letter of Endorsement is available.
process in the host country
                                         According to Resolution of the Cabinet of Ministers of Ukraine of 6 May 2005, issuing
                                         letters of approval is temporary suspended in Ukraine until the JI procedure will be
                                         developed. Nevertheless, documents for obtaining the Letter of Approval are in the
                                         progress of development. It is expected that in August-Octover 2005 another meeting
                                         of the Cabinet of Ministers of Ukraine dedicated to Kyoto Protocol issue will take
                                         place. Hopefully, after that a JI procedure will be adopted.
Ecological, Socio-Economic and Development Aspects
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B      Ecological, Socio-Economic and Development Aspects
According to article EB PDD F.1. documentation on the analysis of the environmental impacts, including
transboundary impacts, shall be provided. This documentation has to be attached to the CDM EB PDD. If the
impacts are considered significant by the project participants or the host Party, according to EB PDD F.2.,
conclusions and all references to support documentation of an environmental impact assessment that has been
undertaken in accordance with the procedures as required by the host Party shall be provided.
The Austrian PDD asks for the following specifications.
Ecological, Socio-Economic and Development Aspects
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B 1 ECOLOGICAL EFFECTS OF THE PROJECT DURING CONSTRUCTION
The following section deals with the environmental effects of the project activity during the construction phase.
Significant effects on the media water and air and with regard to waste and noise shall be described in detail as
well as mitigation measures undertaken. Relevant regulation (national laws, directives etc.) has to be complied
with. If nonexistent or not applicable the current national technological practice/standards are to be observed.
Please also describe in detail if your project activity goes beyond these minimum requirements.


B 1.1 Environmental effects
during construction
Environmental effects during       Environmental effect: No environmental impact beyond existing norms and standards
construction                       in Ukraine is expected.

                                   Mitigation measures: All construction-related activity will be conducted strictly in
                                   accordance with existing norms and standards in Ukraine

                                   o         Compliance with relevant regulations/national technological standards

                                              o Relevant regulation:
                                    1. Sanitary Norms for Designing Industrial Enterprises SN 245-71, Moscow, 1972
                                    2. State sanitary rules for planning and construction work in residential areas.
                                    Ministry of Health Protection of Ukraine, 1996
                                    3. Norms for technological designing of heat power plants VNTP 81, Moscow, 1981.
                                    4. Building norms and rules. Engineering survey for construction. SNiP 1.02.07-87.
                                    Moscow, 1988.

                                    All mentioned documents are available as hard copies in Central Scientific Library
                                    named after V.I. Vernadsky (3, 40-years October avenue, Kiev)

                                        (Please indicate where and how it is available.)

                                             o    National technological practice/standard:

                                        Assembling and installation of the equipment of power plant is carried out
                                        according to State building norms of Ukraine “Designing. Scope, development,
                                        co-ordination and approval of design documentation for construction” DBN
                                        A.2.2-3-97, Kyiv, 1997. According to this document, the project must envisage
                                        assembling and installation activity which complies with existing norms in
                                        Ukraine.
                                        (Please state references.)

                                   Does the project go beyond these minimum requirements?

                                             o    No 

                                             o    Yes: ______________________________________________


Please extend the table if necessary.
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B 2 ECOLOGICAL EFFECTS DURING THE PROJECT LIFETIME
The following section deals with the environmental effects of the project activity during the project lifetime.
Significant effects on the media water and air and with regard to land use, biodiversity and waste shall be
described in detail as well as mitigation measures undertaken. Relevant regulation (national laws, directives etc.)
has to be complied with. If nonexistent or not applicable the current national technological practice/standards are
to be observed. Please also describe in detail if your project activity goes beyond these minimum requirements or
displays other positive effects.

Water

 B 2.1 Effects on the medium
 water
 Effects on the medium water            Not present

 (e.g. abstraction of ground or      ⃝   Present
 surface water, pollution of surface
 water, composition of effluents         Environmental effect: ________________________________________
 etc.)                                   Mitigation measures: _________________________________________

                                         o             Compliance with relevant regulations/national technological
                                                       standards

                                                       o        Relevant regulation:
                                                       _______________________________________________
                                                       (Please indicate where and how it is available.)

                                                       o       National technological practice/standard:
                                                       _______________________________________________
                                                       (Please state references.)

                                         Does the project go beyond these minimum requirements?

                                                       o       No
                                                       o       Yes: ____________________________________

                                   ⃝     Positive effects: _____________________________________________
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Air

 B 2.2 Effects on the medium
 air
 Effects on the medium air        ⃝      Not present
 (e.g. quantity of emissions            Present
 rejected, composition of
 emissions, etc.)                         Environmental effect: exhaust gases from gas engines operation are released
                                   into the atmosphere.

                                        Mitigation measures: power plant will include high quality gas engines of world
                                   famous company Caterpillar. Emission of pollutants from the engines corresponds to
                                   European ecological standard TA-Luft: NOx < 500 mg/Nm3, CO < 650 mg/Nm3.
                                   Exhaust gases from gas engines are released into the atmosphere through six 25 m
                                   chimneys. Results of performed assessment confirm that emissions of pollutants
                                   (NO2, CO and mercury) are within Ukrainian norms and standards.

                                         o              Compliance with relevant regulations/national technological
                                                        standards

                                                        o        Relevant regulation:
                                    1. State Building Norms DBN A.2.2-1-2003 “On scope and content of materials on
                                    environmental impact assessment when designing and constructing enterprises,
                                    buildings and constructions”, Kyiv, 1996.
                                    2. State sanitary rules for air protection of settlements, DSP-201-97.
                                    3. State sanitary rules for planning and building up of settlements - DSPN 173-96.
                                    All mentioned documents are available as hard copies in Central Scientific Library
                                    named after V.I. Vernadsky (3, 40-years October avenue, Kiev)

                                                   (Please indicate where and how it is available.)

                                                        o        National technological practice/standard:

                                    Concentration of pollutants in the air caused by operation of gas engines was
                                    calculated according to methodology “Emission of pollutants into atmosphere from
                                    energy installations” of Norms GDK 34.02.305-2002 (PC program EOL-2000
                                    recommended by the Ministry of environmental protection of Ukraine). Calculation
                                    was performed by OJSC “Institute of mining-chemical industry” (Lviv). Results of
                                    performed assessment confirm that emissions of pollutants (NO2, CO and mercury)
                                    are within Ukrainian norms and standards.
                                    (Please state references.)

                                         Does the project go beyond these minimum requirements?

                                                        o        No 

                                                        o        Yes: ____________________________________

                                  ⃝      Positive effects: _____________________________________________
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Land

Details on land use are normally only to be stated for Avoidance projects.


B 2.3 Land use
Land use                             44500 m2

Effects on land use                       Not present

(e.g. erosion, landslip etc.)      Power plant will be constructed on the land plot of 0.445 hectares. Part of the plot
                                   (0.165 hectares of free area) is located on the territory of gas processing enterprise of
Please provide at least 2-3
                                   OGPD "Boryslavnaftogas"; the rest (0.28 hectares) belongs to the local council of the
different pictures of the planned
                                   village of Modrychi and is located outside the village at a distance of 1.5 km. Part of
location of the project under
                                   land plot (0.28 hectares) belonging to Modrychi is a plain area without any
different view angles and show the
                                   constructions and green plantations.
dimension of the buildings of the
project on these pictures.         Special commission consisting of authorized persons was created to investigate the
                                   construction site. On the basis of obtained results the commission made up Act (N
                                   54/06 of 18.10.04) in which in particular the following was concluded:
                                   - The land plot meets State norms and rules of sanitary and fire supervision,
                                   ecological safety.
                                   - The Commission approves the choice of construction site for gas power plant and
                                   offers SPC “Eastern European Energetic Union” to rent the land plot.

                                     ⃝     Present

                                           Environmental effect: ________________________________________

                                           Mitigation measures: _________________________________________

                                           o             Compliance with relevant regulations/national technological
                                                         standards

                                                         o        Relevant regulation:
                                                         _______________________________________________
                                                         (Please indicate where and how it is available.)

                                                         o       National technological practice/standard:
                                                         _______________________________________________
                                                         (Please state references.)

                                           Does the project go beyond these minimum requirements?
                                                         o        No

                                                         o        Yes: ____________________________________

                                    ⃝      Positive effects: _____________________________________________
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Biodiversity

Details on biodiversity are normally only to be stated for Avoidance projects.


    B 2.4 Effects on biodiversity
    Effects on biodiversity                 Not present

    (Is the project situated in a        ⃝   Present
    protected zone, e.g. listed in a
    fauna or flora inventory?; Are there     Environmental effect: ________________________________________
    any fauna/flora species mentioned        Mitigation measures: _________________________________________
    on Red Lists present on the area
                                             o             Compliance with relevant regulations/national technological
    of the project location?1; Are there
                                                           standards
    any endangered or indigenous
    plants or animals present on the                       o        Relevant regulation:
    area of the project location?; etc.)                   _______________________________________________
                                                           (Please indicate where and how it is available.)

                                                           o       National technological practice/standard:
                                                           _______________________________________________
                                                           (Please state references.)

                                             Does the project go beyond these minimum requirements?

                                                           o       No

                                                           o       Yes: ____________________________________
                                       ⃝         Positive effects: _____________________________________________




1For information on such species see e.g. IUCN: International Union for the Conservation of Nature
(www.iucn.org/themes/ssc/).
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Waste

B 2.5 Waste
Waste generation, treatment and        Not present
disposal
                                  ⃝     Present
(e.g. total amount of waste
generated, total amount of              Environmental effect: ________________________________________
hazardous waste generated,              Mitigation measures: _________________________________________
composition of waste, treatment
                                        o             Compliance with relevant regulations/national technological
of hazardous/non-hazardous
                                                      standards
waste etc.)
                                                      o        Relevant regulation:
                                                      _______________________________________________
                                                      (Please indicate where and how it is available.)

                                                      o       National technological practice/standard:
                                                      _______________________________________________
                                                      (Please state references.)

                                        Does the project go beyond these minimum requirements?

                                                      o       No

                                                      o       Yes: ____________________________________

                                  ⃝     Positive effects: _____________________________________________
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B 3 SOCIO-ECONOMIC AND DEVELOPMENT ASPECTS
The Austrian JI/CDM Programme touches on developing country interests, therefore the Austrian Development Cooperation
Act, BGBl. 2002/49 idgF is also applicable to this Programme. The goals of the Austrian development cooperation policy are:
poverty eradication, peace and human security, as well as environmental protection and sustainable use of natural
resources. These goals lead to the following questions within the Austrian JI/CDM Programme.

The sections which apply to CDM projects only resp. to JI and CDM projects are marked accordingly.



    B 3.1 Poverty eradication
    CDM project
    How and how much does the
    project contribute to economic
    growth in the host country?

    Please provide estimated figures
    of the added value of the project
    and the current GDP of the host
    country.

    CDM project

    Does any possible competition
    between the project and the
    productive sector in the host
    country exist? Do subsidies for the
    project hamper the
    competitiveness of the host
    country?

    JI and CDM project                       Number of highly qualified jobs: 22

    Creation of new jobs by the project      Number of low qualified jobs: 3

    CDM project

    Is the host country an Austrian
    targeted country resp. an Austrian
    cooperation country?2 Does the
    host country belong to the LDCs?




2   Cp. e.g. http://www.bmaa.gv.at/view.php3?f_id=1463&LNG=en&version.
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B 3.2 Peace, security,
democracy
CDM project

What is the ranking of the host
country in the human rights reports
and in international corruption
rankings?

Please refer to www.amnesty.org
and www.transparency.org.

CDM project

Is the host country involved in an
internal or cross-border armed
conflict?



B 3.3 Social Situation,
Cultural Awareness
CDM project
Does the project limit physical or
de facto access by indigenous or
local users to natural resources
(e.g. water)?

CDM project
How will possible negative socio-
economic or cultural effects
(resettlement, access to resources,
conflict user-groups etc.) be
healed?

JI and CDM project                    Social security of workforce in the project is ensured in compliance with Law of
                                      Ukraine “On Labour Protection” (N 2694-12 of 14.10.92). The equipment of power
Social security of workforce          plant will be installed and put into operation according to State building norms of
                                      Ukraine “Designing. Scope, development, co-ordination and approval of design
Description of services in
                                      documentation for construction” DBN A.2.2-3-97, Kyiv, 1997. That guarantees safe
comparison to local standards         operation and maintenance of gas engines and generators. Conditions of all work
(health insurance, accident           places meet the following norms and rules:
insurance, other social services)
                                      SN 4088-86. Sanitary norms for microclimate of production areas.
                                      DSN 3.3.6.042-99 Sanitary norms for microclimate of production areas.
                                      GOST (Standard) 12.1.005-88 SSBT. General hygiene and sanitary requirements for
                                      the air of work area.
                                      DSN 3.3. 6.042-99 Sanitary norms for production noise, ultrasound and infrasound.
                                      DSN 3.3. 6.039-99 State sanitary norms for production general and local vibration.
                                      GOST (Standard) 12.1.004-91 SSBT. Fire protection. General requirements. –
                                      Moscow, Standards publishing house, 1992, 78 p.
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B 3.4 Gender Equality

JI and CDM project                Middle Management
                                  Number of women: 2
Equal Opportunities

Are the principles of equal       Number of men: 2
opportunities reflected in the
employment structure of middle
and upper management?             Upper Management

                                  Number of women: 0

                                  Number of men: 3
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B4       ADDITIONALITY AND SUSTAINABILITY


B 4.1 Additionality
Brief explanation of how the           Even though the project was approved at a high level, there is still an investment
anthropogenic emissions of             barrier, particularly, a deficit of finances for equipment purchase and installation.
                                       Scientific-productive Company “Eastern European Energetic Union” Ltd. made a
anthropogenic greenhouse gas
                                       forward Contract with PSG-International (Czech) on leasing of Caterpillar gas engines
(GHGs) by sources are to be            signed on 26.11.04. PSG-International will purchase gas engines from American
reduced by the proposed project        company Caterpillar and will lease them to SPC “Eastern European Energetic Union”.
activity, including why the emission   According to this forward Contract with PSG-International, the SPC “EEEU” has to put
reductions would not occur in the      on Contractors bank account an advanced payment of 15% of the total investment
absence of the proposed project        sum. SPC “Eastern European Energetic Union” simply does not have money for an
                                       advanced payment, and that is the reason why leasing contract cannot be realized
activity, taking into account
                                       without a prepayment from Applicant‟s side.
national and/or sectoral policies
and circumstances                    Needed additional finances can be obtained through JI mechanism from a
                                     prepayment after ERPA signing with Austrian JI/CDM Program. Having received
In addition please provide the total advance payment for future ERUs the SPC “Eastern European Energetic Union” will
estimate of anticipated reductions be able to make an advance payment to PSG-International and receive gas engines
in tonnes of CO2 equivalent.         Caterpillar into leasing. Breaking the investment barrier makes project additional.

(EB PDD A.4.4.)



B 4.2 Sustainability
Description of the project's           Implementation of the project promotes solving important problems of the region and
contribution to the sustainable        contributes to sustainable development of Lviv oblast of Ukraine.
development of the host country        First, the project contributes to improvement of ecological situation in the region.
                                       There are more than 2000 operated and abandoned oil wells (boreholes) in Boryslav
Please describe the view of the        and near it. For a long time Boryslav and its inhabitants were in a very dangerous
project participants of the            environmental situation caused by contamination by casing-head gas – a by-product
contribution of the project activity   of former and present oil extraction – emerging from the wells. Presently the gas is
to sustainable development.            extracted, collected and transferred to gas processing enterprise of Oil-and-gas
                                       Production Department “Boryslavnaftogas” (department of OJSC “Ukrnafta”). Casing-
(EB PDD A.2.)                          head gas is stripped and stripped casing-head gas is flared because there is no real
                                       consumer. Flaring SCH gas is wasting of non-traditional energy source. Construction
This section should also include a
                                       of power plant allows utilizing SCH gas through generation and selling the electricity.
description on how                     The JI project activities will result in reduction of CO2 emissions through generation of
environmentally safe and sound         new electricity, which replaces certain electric capacity in the grid.
technology and know-how to be
                                       Second, the project improves energy supply and energy security in the region. The
used is transferred to the host        project allows having a new power generating capacity in industrial Lviv oblast and in
Party, if any. What kind of project    Drogobych region in particular. That will increase general reliability of local energy
specific training is planned? Which    system. Electricity consumption in the region tends to grow. Total capacity of high-
maintenance measures are               voltage power grid of Drogobych region is 195 MW.
planned?                               Main electricity consumers of the region are:
                                       - "Petroleum-refining complex – Galychyna" – 6,738,300 kWh/yr;
(EB PDD A.4.3.)
                                       - State enterprise "Sirka" – 42,198,800 kWh/yr;
                                       - "Pulp and paper mill "Zhydachiv" – 41,125,100 kWh/yr;
                                       - "Polymineral", Stebnyk city – 9,714,400 kWh/yr.
                                       Three power plants operate in the region:
                                       - CHP plant of Drogobych public corporation "Petroleum-refining complex –
                                        Galychyna" with installed capacity 17 MW;
                                       - CHP plant of State Enterprise "Sirka" (Rozdol) with installed capacity 18 MW;
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                                  - CHP plant of public corporation "Zhydachiv Pulp And Paper Mill" with installed
                                   capacity 12 MW.
                                  These CHP plants do not meet energy demands of the region. Drogobych local power
                                  grid imports electricity from other regions of Ukraine. Despite of industrial intensity of
                                  the region, reliability of its energy supply system is low because of the deficit of energy
                                  generating capacities and sources. The sound solution in this situation is increasing
                                  region‟s energy capacities. Experts of Scientific-productive company “Eastern
                                  European Energetic Union” Ltd. predict a stable demand for power produced by the
                                  power plant planned to be constructed in the framework of a JI project.
                                  Third, the project will contribute to unemployment combating for qualified specialists in
                                  the region, which will be gradually hired after training by Zeppelin Ukraine. Taking into
                                  account the situation with unemployment in Boryslav after Soviet Union collapse and
                                  closure of most industries in the city of Boryslav, as well as in other cities of western
                                  Ukraine, employment of qualified individuals will contribute to the improvement of
                                  social situation in the region. This social aspect is very important for the region.
                                  According to Ukrainian legislation, operators of a new power plant will have a special
                                  training provided by Zeppelin Ukraine specialists, who will operate the power plant
                                  already certified (see Annex 3). They will be trained at Drogobych state educational
                                  centre. After passing examination, they will obtain certificate for work with this
                                  equipment. Depending on specific type of the equipment, operators will be tested and
                                  repeat examination once a year or once in three years. Engineers and technicians
                                  who organise exploitation of the equipment also pass corresponding state
                                  examinations. Besides, operators of power plant regularly go through medical
                                  examination in order to check their state of health for that kind of job. Responsibilities:
                                        -   Director General of power plant is responsible for planning finances
                                            necessary for training/education of the employees.
                                        -   Chief engineer of power plant is responsible to define who and when must
                                            be trained/educated; timing of knowledge check.
                                        -   Commercial director of power plant is responsible for timely arrangements
                                            with Drogobych state educational centre.
                                        -   Engineer of labour protection of power plant is responsible to admit to work
                                            only trained/education staff of the plant.
                                  A project management Manual will be developed by the moment of start of power
                                  plant operation. The Manual will contain detailed description of project management,
                                  monitoring responsibilities, and training courses. Written working instructions for
                                  power plant operation are available in Russian language (over 200 pages).
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C Stakeholder Comments
Stakeholders include all Parties or persons affected by the project. If several stakeholder comments are made,
the table is to be copied and filled in separately for each stakeholder.
In the case of CDM projects stakeholder involvement is mandatory (also on an international level).


C 1 Identity of stakeholders
Name                                Stakeholder 1: The Drogobych regional council of Lviv oblast

Type of organization                        Authorities: Local administration

                                    ⃝        Private Enterprise

                                    ⃝        NGO

                                    ⃝        Individual Person

                                    ⃝        Other: ____________________________________________________

Description of the effects of the   Power plant will be constructed on the land plot of 0.445 hectares. Part of the plot
project on the stakeholder          (0.165 hectares of free area) is located on the territory of gas processing enterprise of
                                    OGPD "Boryslavnaftogas"; the rest (0.28 hectares) belongs to the local council of the
                                    village of Modrychi and is located outside the village at a distance of 1.5 km. Modrychi
                                    belongs to Drogobych region.

Address                             Ukraine, 82100, Drogobych, 22 Sichnia street, 37.

Phone/fax                           tel. (+ 38 03244) 3-86-70; fax: (+ 38 03244) 3-76-27

E-mail                              -

Contact person                      Head of regional council – Mr. Goliak, Igor Mykolayovych



C 1 Identity of stakeholders
Name                                Stakeholder 2: OJSC “Ukrnafta”

Type of organization                ⃝        Authorities: ________________

                                    ⃝        Private Enterprise

                                    ⃝        NGO

                                    ⃝        Individual Person

                                            Other: Open Joint-stock company

Description of the effects of the   Casing-head gas from the wells in Boryslav and neighbouring area is transmitted to
project on the stakeholder          OGPD “Boryslavnaftogas” (department of “Ukrnafta”). Gas processing enterprise of
                                    “Boryslavnaftogas” strips gas and is the owner of SCH gas.

                                    Power plant will be constructed on the land plot of 0.445 hectares. Part of the plot
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                                    (0.165 hectares of free area) is located on the territory of gas processing enterprise of
                                    OGPD "Boryslavnaftogas", the rest (0.28 hectares) belongs to the local council of the
                                    village of Modrychi.

Address                             OJSC „Ukrnafta“: 04655, Kyiv, 3/5 Nesterivsky Provulok, Ukraine
                                    “Boryslavnaftogas”: 82300, Boryslav, Lviv oblast, 26 Karpatska Brama, Ukraine

Phone/fax                           „Ukrnafta“ , Kyiv, Tel.: (+38 044) 212 20 70, 272 20 70; Fax (+38 044) 272 59 22
                                    “Boryslavnaftogas”, Boryslav: Tel.: (+38 03248) 50-109, 52-805

E-mail                              press@ukrnafta.com

Contact person                      “Boryslavnaftogas”, Boryslav: Mr. Burliy, O.M. – Chief Energy Engineer
                                    Tel.: (+38 03248) 50-109, 52-805


C 1 Identity of stakeholders
Name                                Stakeholder 3: The Lviv oblast council

Type of organization                        Authorities: Oblast administration

                                    ⃝        Private Enterprise

                                    ⃝        NGO

                                    ⃝        Individual Person

                                    ⃝        Other: ____________________________________________________

Description of the effects of the   Boryslav belongs to Lviv oblast. Oblast administration cared for unfavourable ecologic
project on the stakeholder          situation in Boryslav and neighbouring territory caused by contamination by casing-
                                    head gas.

Address                             Ukraine, 79008, Lviv, Vinnychenka street, 18.

Phone/fax                           tel. (+ 38 0322) 72-86-44; fax: (+ 38 0322) 76-47-93

E-mail                              info@oblrada.lviv.ua

Contact person                      Head of oblast council – Mr. Sendak, Mykhailo Dmytrovych



C 1 Identity of stakeholders
Name                                Stakeholder 4: Utility enterprise “Boryslavvodokanal”

Type of organization                ⃝        Authorities

                                    ⃝        Private Enterprise

                                    ⃝        NGO

                                    ⃝        Individual Person

                                            Other: Utility enterprise
Stakeholder Comments
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Description of the effects of the   “Boryslavvodokanal” is a large consumer of electricity. New power plant can supply
project on the stakeholder          electricity to utility enterprise at agreed price.

Address                             Ukraine, 50575, Boryslav, Volodymyra Velykogo street, 229 A

Phone/fax                           tel. (+38 03248) 52-512; fax: (+38 03248) 50-575

E-mail

Contact person                      Director – Mr. V. Shmigelsky



C 1 Identity of stakeholders
Name                                Stakeholder 5: OJSC “Lvivoblenergo”

Type of organization                ⃝        Authorities

                                    ⃝        Private Enterprise

                                    ⃝        NGO

                                    ⃝        Individual Person

                                            Other: Open Joint-stock company

Description of the effects of the   OJSC “Lvivoblenergo” is a energy utility company in Lviv oblast. New power plant will
project on the stakeholder          be connected to power grid of “Lvivoblenergo”.

Address                             Ukraine, 79026, Lviv, Kozelnytska street, 3

Phone/fax                           tel. (+38 0322) 789-163, 789-046; fax: (+38 0322) 789-085

E-mail                              kanc@oblr.lv.energy.ua

Contact person                      Technical Director – Mr. Yu. Kryzhanivsky
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C 2 Stakeholder comments
Brief description of the process on
how comments by (local) Stakeholder 1
stakeholders have been invited Special commission consisting of authorized persons was created to investigate the
and compiled                        construction site for power plant. On the basis of obtained results the commission
                                    made up Act (N 54/06 of 18.10.04) in which in particular the following was concluded:
(EB PDD G.1.)                       - The land plot meets State norms and rules of sanitary and fire supervision,
                                    ecological safety.
                                    - The Commission approves the choice of construction site for gas power plant and
                                    offers SPC “Eastern European Energetic Union” to rent the land plot.

                                    The act was submitted to the Drogobych regional council.

                                    Stakeholder 2
                                    Scientific-productive company “Eastern European Energetic Union” Ltd. informed
                                    OJSC “Ukrnafta” in detail about the project idea and purposes.

                                    Stakeholder 3
                                    Scientific-productive company “Eastern European Energetic Union” Ltd. informed the
                                    Lviv oblast council in detail about the project idea and purposes.

                                    Stakeholder 4
                                    Scientific-productive company “Eastern European Energetic Union” Ltd. informed the
                                    Utility enterprise “Boryslavvodokanal” in detail about the project idea and purposes.

                                    Stakeholder 5
                                    Scientific-productive company “Eastern European Energetic Union” Ltd. applied to
                                    OJSC “Lvivoblenergo” to get permission for connection of new power plant to power
                                    grid of “Lvivoblenergo” and supply electricity there.



Summary of the stakeholder          Stakeholder 1
comments received                   Having considered mentioned above act of the commission the Drogobych regional
                                    council issued resolution to approve the chosen land plot for the construction of new
(EB PDD G.2.)
                                    power plant (Resolution N 331 of 21.10.2004).

                                    Stakeholder 2
                                    OGPD "Boryslavnaftogas" considers the project to be an energy saving technology
                                    and supports the use of local non-traditional energy sources in the region. Besides,
                                    "Boryslavnaftogas" is interested in purchase of electricity produced by the new power
                                    plant (Letter N 11-81 of 21.06.01).

                                    OJSC „Ukrnafta“ supports the project and is interested to supply SCH gas to the new
                                    power plant (Protocol of sitting of the Board N 21 of 05.10.04). Besides, „Ukrnafta“
                                    agreed to alienation of a part of the territory (0.165 hectares) of gas processing
                                    enterprise of "Boryslavnaftogas" in order that “Eastern European Energetic Union”
                                    would construct a new power plant there (Protocol of sittings of the Board N 3 of
                                    30.03.04).

                                    Stakeholder 3
                                    In 2002 the Lviv oblast council approved the program of measures aimed to improve
Stakeholder Comments
Preparation of the Project Design Document                                                                         31 / 67


                                    ecologic situation in Boryslav and neighbouring area (Resolution N 57 of 15.10.2002).
                                    According to the Resolution, Scientific-productive company “Eastern European
                                    Energetic Union” (V. Protsyshyn) is the executor of the program.

                                    Stakeholder 4
                                    Utility enterprise “Boryslavvodokanal” considers the project to be an energy saving
                                    technology and supports the use of local non-traditional energy sources in the region.
                                    Besides, “Boryslavvodokanal” is interested in purchase of electricity produced by the
                                    new power plant (Letter N 277 of 04.07.01).
                                    Stakeholder 5
                                    OJSC “Lvivoblenergo” issued Technical Specifications (N 131-843/2 of 26.03.03) for
                                    the connection of the new power plant on SCH gas to local power grid.

Report on how due account was
taken of any comments received Stakeholder 1
                               As the approval of the Drogobych regional council has been received, the plant will be
(EB PDD G.3.)
                               constructed on the planned land plot.

                                    Stakeholder 2
                                    It is planned to sell part of produced electricity to OGPD "Boryslavnaftogas". The
                                    contract on SCH gas supply in 2005-2015 was concluded between OGPD
                                    "Boryslavnaftogas" and SPC “Eastern European Energetic Union” Ltd. (Contract N
                                    1/4/184/129-G, 2004.)

                                    Stakeholder 3
                                    The purpose of the project – construction of power plant on SCH gas - is in line with
                                    the Resolution of the Lviv oblast council and is one of measures of approved program
                                    aimed to improve ecologic situation in Boryslav and neighbouring area.

                                    Stakeholder 4
                                    Scientific-productive company “Eastern European Energetic Union” Ltd. plans to
                                    include utility enterprise “Boryslavvodokanal” in consumers of electricity produced by
                                    the power plant on SCH gas.

                                    Stakeholder 4
                                    The project envisages fulfilment of all items of Technical Specifications issued by
                                    OJSC “Lvivoblenergo”
Baseline
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D Baseline
A JI or CDM project should result in additional emission reductions, this means such emission reductions which
would have not taken place without these projects. To be able to prove such emission reductions it is essential to
calculate the emissions
        in the project scenario and
        in the baseline scenario.
The actually achieved emission reductions result from the difference between the two scenarios.

                        Emission Reductions = (Baseline Emissions) ─ (Project Emissions)
Baseline
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D1       BASELINE DEVELOPMENT


D 1.1 Details of baseline
development
Name and address of                  Scientific Engineering Center “Biomass” – project developer
person/entity determining the        Contact person: Mr. Alexander Filonenko – Consultant
                                     2A, Zhelyabov str., 03057, Kyiv, Ukraine
baseline
                                     tel. +(38 044) 456 94 62; fax: +(38 044) 456 94 62
Please provide contact information filonenko@biomass.kiev.ua
and indicate if the person/entity is
also a project participant.

(EB PDD B.6.2.)

Date of completing the final draft   7 July 2005
of this baseline section
(DD/MM/YYYY)

(EB PDD B.6.1.)
Baseline
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The project can be split into various project components. This serves the definition of the project boundary and
the choice of the baseline methodology. For details see e.g. the baseline study available at http://www.ji-cdm-
austria.at or http://www.klimaschutzprojekte.at.


D 1.2 Project components

Project components                     ⃝     E (0)

                                       ⃝     E (+ -)

                                       ⃝     H (0)

                                       ⃝     H (+ -)

                                       ⃝     M (-)



The project boundary defines which emissions in which framework must be considered in the emission
calculation. The project boundary must include all significant emissions which are subject to the project operator's
direct control and can be allocated to the project. For details see e.g. the baseline study available at http://www.ji-
cdm-austria.at or http://www.klimaschutzprojekte.at.


D 1.3 Project boundary

Description of how the definition of   Scientific-productive company “Eastern European Energetic Union” Ltd. plans to
the project boundary related to the    construct CHP plant on SCH gas via 2 stages. The first stage includes installation of
baseline methodology is applied to     gas engines, generation and sale of electricity. The second stage includes useful
the project activity                   utilisation of produced heat via its application in greenhouses.

(EB PDD B.5.)                          JI project boundary includes only the first stage of CHP plant implementation that is
                                       why the plant is called “power plant” everywhere in relevant documents. Thus, inside
Please enclose a graphical
                                       JI project boundary is operation of new power plant (six Caterpillar gas engines and
representation of the project
                                       generators) – from fuel supply to the engines to electricity supply to local grid. The
boundary.
                                       only fuel for power plant is stripped casing-head gas. Such processes as extraction,
                                       collection and transmission of casing-head gas as well as its processing at OGPD
                                       “Boryslavnaftogas” are beyond the project boundaries. The project considers only
                                       consumption of power for own needs of CHP plant. Graphically the project boundary
                                       represented on the figure below.
Baseline
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                                    Graphical representation of the JI project boundary

                                    Detailed description of equipment to be installed within the project boundaries is
                                    presented in Appendix 2 “Technical description of the project”.
                                    Such elements as the system for extraction, collection and transmission of casing-
                                    head gas, technology for gas processing at OGPD “Boryslavnaftogas”, and local
                                    power grid are closely connected with the project but are not included directly in its
                                    boundary. These elements allow to connect the project scenario with baseline
                                    scenario and to compare them. In the conservative baseline scenario all amount of
                                    stripped casing-head gas is flared. Graphically the project boundary for baseline
                                    scenario is presented on below.
Baseline
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                                                 Graphical representation of the baseline scenario boundary

                                    Baseline scenario emissions of CO2 occur due to stripped casing-head gas flaring.
                                    Total baseline scenario emission for the period 2008-2012 is estimated at 230,186
                                    tons of CO2e. (Appendix 1.1). The same amount of CO2 will be emitted during the
                                    project due to SCH gas combustion in the engines.
                                    In the JI project scenario all amount of SCH gas is utilized for power production
                                    instead of flaring. Generation of new electricity replaces in the grid 98,043 MWhe/yr,
                                    which adds to the baseline scenario 317,600 tons of CO2e that can be achieved in the
                                    project scenario (Appendix 1.1). Thus, the difference between baseline scenario and
                                    project scenario is electricity generation by new power plant (317,600 tons of CO2e)
                                    with electricity replacement in the grid.
                                    SPC “Eastern European Energetic Union” Ltd. will be a justified owner of ERUs.
                                    Contact person for registration process at the future JI supervisory board is Mr.
                                    Protsyshyn, Vasyl Bogdanovych – Director general of the Union (contact information
                                    is presented in A 3.1).



Substantiation of the selected      The core of the JI project is construction of a power plant operated on SCH gas. The
project boundary                    principal difference comparing to baseline scenario is that all amount of SCH gas is
                                    utilized through power production. In both baseline and project scenarios casing-head
                                    gas is vacuumed from oil extraction system, and transferred to OGPD
                                    “Boryslavnaftogas”, where it is stripped. Equivalent processes for baseline and project
                                    scenarios. There is no reason to include these elements into project boundaries. This
                                    fact justifies JI project boundary, which includes fuel supply to gas engines, fuel
                                    combustion in the gas engines for electricity generation, and delivery of electricity to
                                    the corresponding grids.
Baseline
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Baseline
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Influencing factors can affect both the project scenario and the baseline scenario. Factors relevant for the project
and their possible effects are to be stated. Examples are the energy policy of the host country, raw material prices
etc. For details see e.g. the baseline study available at http://www.ji-cdm-austria.at or
http://www.klimaschutzprojekte.at.


D 1.4 Influencing factors

Legal influencing factors            Type of influencing factor

                                     Factor A: State policy with regard to independent electricity producers.

                                     Factor B: _______________________________________________________

                                     Relevance for the project

                                     Factor A: New power plant on SCH gas is an independent producer of electricity. It
                                     has to be connected to local power grid in order to sell electricity there.

                                     Factor B: _______________________________________________________

                                     Expected development
                                     Factor A: The state encourages independent producers of electricity: in April 2005
                                     Verkhovna Rada (Ukrainian Parliament) passed the Law “On combined heat and
                                     power production (cogeneration) and the use of waste energy potential”. According to
                                     the law, qualified CHP plants have right to produce electricity and sell it to consumers
                                     by direct contracts. An independent power producer has unimpeded access to local
                                     power grid on condition that the producer fulfilled all technical specifications issued by
                                     local energy utility company.

                                     Factor B: _______________________________________________________

Economic and political influencing   Type of influencing factor
factors
                                     Factor A: Price of fossil fuels and tariffs on electricity

                                     Factor B: _______________________________________________________

                                     Relevance for the project

                                     Factor A: If price of fossil fuels rises, the price of stripped casing-head gas can rise
                                     too. Income of the power plant on SCH gas depends upon tariffs on electricity.

                                     Factor B: _______________________________________________________

                                     Expected development
                                     Factor A: Rise of price of natural gas is expected in the future. Even if price of SCH
                                     gas also rises, it will not have decisive influence on the project feasibility because
                                     financial showings of the project are good enough to resist increase of price of SCH
                                     gas. Tariffs on electricity in Ukraine can only rise, reduction is impossible. Rise of
                                     tariffs is favourable for the project viability.

                                     Factor B: _______________________________________________________

Please extend the table if multiple factors play a role.
Baseline
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D2        PROJECT SCENARIO


D 2.1 Project emissions
within the project boundary
Emissions within the project                Emission 1
boundary
                                       Source: combustion of stripped casing-head gas in Caterpillar gas engines

                                       Type of emission: CO2

                                       ⃝     Emission 2

                                       Source: _________________________________________________________

                                       Type of emission: _________________________________________________

                                       ⃝     No emissions within the project boundary



Leakage is (project-related) emissions occurring outside the project boundary. They are not under the direct
influence of the project operator.


D 2.2 Leakage

Leakage                                ⃝     Leakage 1

                                       Source: ________________________________________________________

                                       Type of leakage: _________________________________________________

                                       ⃝     Leakage 2

                                       Source: ________________________________________________________

                                       Type of leakage: _________________________________________________

                                            No leakage

To calculate the project emissions the following data must be collected for each emission source:
1         fuel input in tonnes,
2         specific emission factors.
The emissions are calculated by multiplying the fuel input by the corresponding emission factors. For details see
e.g. the baseline study available at http://www.ji-cdm-austria.at or http://www.klimaschutzprojekte.at.



D 2.3 Calculation of project
emissions within the project
boundary
(EB PDD E.1., EB PDD E.6.)
Baseline
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Emission 1                          Emission of CO2 due to combustion of stripped casing-head gas in Caterpillar gas
                                    engines.

                                    Calculation:
                                    Emission (t CO2eq/yr) = input of SCH gas (mill m3/yr)* × 0.7605** × methane density
                                    (kg/ Nm3)*** × molecular mass ratio (t CO2/t CH4)****

                                    * According to contract on SCH gas supply in 2005-2015 between OGPD
                                    "Boryslavnaftogas" and SPC “Eastern European Energetic Union” Ltd. (Contract N
                                    1/4/184/129-G, 2004.)
                                    ** Concentration of methane in stripped casing-head gas. It is taken from results of
                                    laboratory analysis performed by Zeppelin Ukraine GmbH for SPC “Eastern European
                                    Energetic Union” Ltd. (Letter of 08.02.05).
                                    *** Methane's density is a conversion factor for calculation methane in tons, Density of
                                    CH4 = 0.7168 kg/m3, standard value for methane.
                                    ***Combustion of methane transforms it into CO2. Molecular mass ratio t CO2/t CH4 =
                                    44/16 = 2.75.
                                    See Appendix 1.1 with calculation of GHG emission in JI project scenario.



Please include a description of the formulae used to estimate anthropogenic emissions by sources of greenhouse
gases of the project activity within the project boundary (for each gas, source, formulae/algorithm, emissions in
units of CO2 equivalent).
Baseline
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D 2.4 Calculation of leakage
emissions
(EB PDD E.2., EB PDD E.6.)
Leakage 1                           No leakage in the JI project scenario



Please include a description of the formulae used to estimate leakage, defined as: the net change of
anthropogenic emissions by sources of greenhouse gases which occurs outside the project boundary, and that is
measurable and attributable to the project activity (for each gas, source, formulae/algorithm, emissions in units of
CO2 equivalent).


D 2.5 Calculation of total
project activity emissions
(EB PDD E.3., EB PDD E.6.)
                                       Year 1         Year 2        Year 3     Year 4       Year 5         
Emissions (in t CO2/year)             46,037         46,037         46,037    46,037        46,037      230,186

Leakage (in t CO2/year)                  0              0              0         0             0            0

Total emissions (in t CO2/year)       46,037         46,037         46,037    46,037        46,037      230,186
Baseline
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D3           BASELINE SCENARIO
Baseline methodology refers to the methods used to determine the baseline emissions. The division of the project
into various subcomponents could serve the selection of a baseline methodology. For details see e.g. the
baseline study available at http://www.ji-cdm-austria.at or http://www.klimaschutzprojekte.at.


    D 3.1 Baseline methodology

    Description of the selected           Baseline scenario has two sources of emissions: emission of CO2 due to flaring
    methodology and justification of      stripped casing-head gas and emissions of CO2e in the grid that can be replaced by
    the choice of the methodology and     project activity.
    why it is applicable to the project
                                          Calculation:
    activity
                                          Emission (t CO2eq/yr) = input of SCH gas (mill m3/yr)* × 0.7605** × methane density
    (EB PDD B.2.)                         (kg/ Nm3)*** × molecular mass ratio (t CO2/t CH4)****
    If an approved methodology is
                                          * According to contract on SCH gas supply in 2005-2015 between OGPD
    chosen, please indicate the title     "Boryslavnaftogas" and SPC “Eastern European Energetic Union” Ltd. (Contract N
    and reference of the methodology      1/4/184/129-G, 2004.)
    applied to the project activity.3     ** Concentration of methane in stripped casing-head gas. It is taken from results of
                                          laboratory analysis performed by Zeppelin Ukraine GmbH for SPC “Eastern European
    (EB PDD B.1.)                         Energetic Union” Ltd. (Letter of 08.02.05).
                                          *** Methane's density is a conversion factor for calculation methane in tons, Density of
                                          CH4 = 0.7168 kg/m3, standard value for methane.
                                          ****Flaring of methane transforms it into CO2. Molecular mass ratio t CO2/t CH4 =
                                          44/16 = 2.75.

                                          See Appendix 1.1 with calculation of GHG emission in baseline scenario.



    Description of how the                In the baseline scenario all amount of stripped casing-head gas is flared at ORP
    methodology is applied in the         “Galychyna” after its stripping at gas processing enterprise of OGPD
    context of the project activity       “Boryslavnaftogas”. Emission of GHG (CO2) is calculated according to methodology
                                          described above.
    (EB PDD B.3.)
                                          In the JI project scenario the same amount of stripped casing-head gas is utilized by
                                          Caterpillar gas engines for power production. So, there exists the same emission of
                                          CO2 in JI project scenario as in baseline scenario. When calculating expected
                                          emission reduction, these emissions are extracted one from another and will give zero
                                          in a product.

                                          In the baseline scenario, certain amount of electricity corresponding to generated
                                          electricity through project activity, supplied to local power grid by other suppliers.
                                          Replacement of this amount of electricity in the grid through generation of new
                                          electricity on SCH gas will curbs the emissions connected with the grid.




3If a new baseline methodology shall be applied to a CDM project activity, a special procedure has to be observed. For
details please refer to http://cdm.unfccc.int/.
Baseline
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Different scenarios can be used for each methodology.


D 3.2 Identification of
different baseline scenarios
Baseline Scenario 1                 In baseline scenario all amount of stripped casing-head gas is flared on the territory of
                                    Oil Refinery Complex “Galychyna”.

Baseline Scenario 2                 In the alternative baseline scenario all SCH gas is not flared but simply emitted
                                    instead of faring

Every suggested scenario has to be justified.


D 3.3 Selected baseline
scenario
Description of the selected         First baseline scenario is more conservative. Thus, all amount of stripped casing-
baseline scenario and               head gas is flared at ORP “Galychyna”, where it is transferred after stripping from
substantiation of the selection     heavy hydrocarbons at OGPD “Boryslavnaftogas”.

                                    This is the most realistic baseline scenario because there is no actual consumer of
                                    SCH gas in Lviv oblast. ORP “Galychyna” doesn‟t need SCH gas, though historically it
                                    is used to accept it and flare. Quality of SCH gas (content of oxygen is approximately
                                    5%) doesn't meet the requirements of state standard (GOST 5542-78). "Safety Rules
                                    for Gas Supply System of Ukraine" allow the content of oxygen in natural gas to be
                                    only up to 1%. So, stripped vacuum gas can't be allowed for transfer through the
                                    network of “Obltransgas” (oblast gas supply company).

                                    Baseline choice is the most conservative since at times the stripped casing head gas
                                    is not flared, but simply emitted to the atmosphere when for instance, ORC
                                    “Galychyna” or gas processing plant of OGPD “Boryslavnaftogas” are not operating.
                                    However it is impossible to establish a baseline that would include the hours of active
                                    flaring of SCH or direct emissions of SCH into the atmosphere. Having a methane
                                    content around 76% in the SCH the direct emissions of this gas to the atmosphere
                                    increase the baseline emissions because Global Warming Potential of methane is 21
                                    times higher than GWP of CO2. So, in order to be conservative, we chose a baseline,
                                    which implicates total flaring of SCH gas.



D 3.4 Baseline description

Was a new baseline developed for            Yes
the project?
                                 ⃝           No

Was an existing baseline used or    ⃝        Yes: _____________________________________________________
adapted for the project?                     (State sources and matters used.)
                                            No

Is it planned to update the baseline ⃝       Yes
during the project lifetime?
Baseline
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                                            No
Baseline
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D 3.5 Baseline emissions
within the project boundary
Emissions within the project                Emission 1
boundary
                                   Source: Flaring stripped casing-head gas on the territory of Oil Refinery Complex
                                         “Galychyna”

                                   Type of emission: CO2
                                            Emission 2
                                   Source: Amount of electricity in the grid to be replaced by electricity generation by new
                                        power plant

                                   Type of emission: CO2.

                                   ⃝         Emission 3

                                   Source: _________________________________________________________

                                   Type of emission: _________________________________________________

                                   ⃝         Emission 4

                                   Source: _________________________________________________________

                                   Type of emission: _________________________________________________

                                   ⃝         No emissions within the project boundary



D 3.6 Leakage

Leakage                                ⃝     Leakage 1

                                       Source: ________________________________________________________
                                       Type of leakage: ________________________________________________

                                       ⃝     Leakage 2

                                       Source: ________________________________________________________

                                       Type of leakage: ________________________________________________

                                            No leakage



To calculate the baseline emissions the following data must be collected for each emission source:
1         fuel input in tonnes,
2         specific emission factors.
The emissions are calculated by multiplying the fuel input by the corresponding emission factors. For details see
e.g. the baseline study available at http://www.ji-cdm-austria.at or http://www.klimaschutzprojekte.at.
Baseline
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D 3.7 Calculation of baseline
emissions
(EB PDD E.4., EB PDD E.6.)
Emission 1                          Emission of CO2 due to flaring stripped casing-head gas on the territory of ORP
                                    “Galychyna”.
                                    Calculation:
                                    Emission (t CO2eq/yr) = input of SCH gas (mill m3/yr)* × 0.7605** × methane density
                                    (kg/ Nm3)*** × molecular mass ratio (t CO2/t CH4)****

                                    * According to contract on SCH gas supply in 2005-2015 between OGPD
                                    "Boryslavnaftogas" and SPC “Eastern European Energetic Union” Ltd. (Contract N
                                    1/4/184/129-G, 2004.)
                                    ** Concentration of methane in stripped casing-head gas. It is taken from results of
                                    laboratory analysis performed by Zeppelin Ukraine GmbH for SPC “Eastern European
                                    Energetic Union” Ltd. (Letter of 08.02.05).
                                    *** Methane's density is a conversion factor for calculation methane in tons, Density of
                                    CH4 = 0.7168 kg/m3, standard value for methane.
                                    ****Flaring of methane transforms it into CO2. Molecular mass ratio t CO2/t CH4 =
                                    44/16 = 2.75.

                                    See Appendix 1.1, Sheet “CO2” with calculation of GHG emission in baseline
                                    scenario.
Baseline
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Emission 2                          Amount of electricity in the grid in the baseline scenario, which can be replaced by
                                    project scenario electricity generation, is viewed as baseline electricity consumption
                                    emissions. New power plant utilizes all amount of SCH gas for power production.
                                    Generated electricity supplied to local power grid. It means that the power plant on
                                    SCH gas replaces certain amount of electricity produced at another power plant that
                                    results in saving of fossil fuels and consequently reduction of GHG emission.
                                    Calculation:
                                    1. Input of methane (mill m3/yr) = input of SCH gas (mill m3/yr)* × 0.7605**

                                    2. Energy of methane spent for electricity production (MWhe) = input of methane (mill
                                    m3/yr) × heating value (TJ/mill Nm3)*** × 0.280**** × 0.41***** × 1000

                                    3. Emission (t CO2eq/yr) = energy of methane (MWhe) × carbon emission factor (t
                                    CO2/MWhe)******

                                    * According to contract on SCH gas supply in 2005-2015 between OGPD
                                    "Boryslavnaftogas" and SPC “Eastern European Energetic Union” Ltd. (Contract N
                                    1/4/184/129-G, 2004.)
                                    ** Concentration of methane in stripped casing-head gas. It is taken from results of
                                    laboratory analysis performed by Zeppelin Ukraine GmbH for SPC “Eastern European
                                    Energetic Union” Ltd. (Letter of 08.02.05).
                                    *** Heating value of methane is taken according to “Thermal calculation of boiler
                                    installations. Normative methodology”, Moscow, 1973.
                                    **** factor for conversion TJ into GWh
                                    ***** Efficiency of electricity production (to convert GWh into GWhe). Is taken
                                    according to technical parameters of Caterpillar gas engines indicated in the Contract
                                    between Scientific-productive Company “Eastern European Energetic Union” Ltd. and
                                    PSG-International (Czech) on leasing the equipment for power generation (signed
                                    26.11.04).
                                    ****** Factors for 2008-2012 are taken from Table B1 "Baseline carbon emission
                                    factors for JI projects generating electricity" of operational Guidelines for PDD's of JI
                                    projects (ERUPT 4, Senter, the Netherlands)

                                    See Appendix 1.1 with calculation of GHG emission in JI project scenario.



Please describe the formulae used to estimate the anthropogenic emissions by sources of greenhouse gases of
the baseline (for each gas, source, formulae/algorithm, emissions in units of CO2 equivalent).


D 3.8 Calculation of leakage
emissions
Leakage 1                           No leakage in baseline scenario



Please present the calculation including the basis and method of calculation.
Baseline
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D 3.9 Calculation of total
baseline emissions
(EB PDD E.6.)
                                       Year 1    Year 2    Year 3    Year 4    Year 5     
Emissions (in t CO2/year)            112,363    110,931   109,595   108,164   106,732   547,786

Leakage (in t CO2/year)                  0         0         0         0         0        0

Total emissions (in t CO2/year)      112,363    110,931   109,595   108,164   106,732   547,786
Baseline
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D 4 EMISSION REDUCTIONS


D 4.1 Expected emission
reductions
(EB PDD E.5., EB PDD E.6.)
                                         Year 1          Year 2           Year 3          Year 4        Year 5           
Expected total project emissions        46,037          46,037           46,037          46,037        46,037        230,186
(in t CO2/year)

Expected total baseline emissions      112,363          110,931         109,595         108,164       106,732        547,786
(in t CO2/year)

Expected total emission                 66,326          64,894           63,558          62,127        60,695        317,600
reductions (in t CO2/year)



D 4.2 Sensitivity analysis

Sensitivity analysis                  Legal influencing factors

A sensitivity analysis illustrating   Factor A: State policy with regard to independent electricity producers.
the effects of the variation of the   New power plant on SCH gas is an independent producer of electricity. It has to be
influencing factors described in      connected to local power grid in order to have possibility to sell produced electricity.
D 1.4. is to be enclosed.             State policy in this field is favourable for the project realisation. On the whole the state
                                      encourages independent producers of electricity: in April 2005 Verkhovna Rada
                                      (Ukrainian Parliament) passed the Law “On combined heat and power production
                                      (cogeneration) and the use of waste energy potential”. According to the law, qualified
                                      CHP plants have right to produce electricity and sell it to consumers by direct
                                      contracts. An independent power producer has unimpeded access to local power grid
                                      on condition that the producer fulfilled all technical specifications issued by local
                                      energy utility company. The state considers that local power generating installations
                                      enhance reliability and safety of energy supply system of Ukrainian regions. Till 2015
                                      tariffs on heat and power produced by qualified CHP plants do not include target
                                      additions set by the Law of Ukraine “On power energy” (article 17), by the Law of
                                      Ukraine “On tax system” (article 14, item 26) and other normative and legal
                                      documents.
                                      Economic and political influencing factors
                                      Factor A: Price of fossil fuels and tariffs on electricity.
                                      If price of fossil fuels rises, the price of stripped casing-head gas can rise too. Rise of
                                      price of natural gas is expected in the future. Even if price of SCH gas also rises, it will
                                      not have decisive influence on the project feasibility because financial showings of the
                                      project are good enough to resist increase of price of SCH gas. Income of the power
                                      plant on SCH gas directly depends upon tariffs on electricity. Tariffs on electricity in
                                      Ukraine can only rise, reduction is impossible. Rise of tariffs is favourable for the
                                      project viability.
Baseline
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    D 4.3 Additionality

    Description of how the                 Due to the absence of a real consumer for SCH gas, about 3 mill m3 of SCH gas is
    anthropogenic emissions of GHG         flared every month. This has a negative impact on the atmosphere because of
                                           greenhouse gas emission. The biggest potential for GHG emission reduction lies in
    by sources are reduced below
                                           energy production from stripped casing-head gas.
    those that would have occurred in
    the absence of the project activity    The only feasible way to change current situation is construction of power plant near
                                           Borislav based on gas engines operated on SCH gas. The plant will:
    Please explain, how and why this       - ensure sustainable use of ill-conditioned gas;
    project is additional and therefore    - contribute to satisfaction of power demand in Lviv oblast;
    not the baseline scenario.             - contribute to reduction of GHG emission due to useful utilisation of SCH gas.
                                           The project will allow to have a new power generating capacity in industrial Lviv oblast
    For analysing the additionality of a
                                           on the whole and in Drogobych region in particular. That will increase general
    project please take into account       reliability of local energy system. Electricity consumption in the region tends to grow.
    the relevant decisions of the          Total capacity of high-voltage power grid of Drogobych region is 195 MW.
    Executive Board4 (e.g. EB 10
                                           Additionality
    Report, Annex 15).
                                           Even though the project was approved at a high level, there is still an investment
    (EB PDD B.4.)                          barrier, particularly, a deficit of finances for equipment purchase and installation.
                                           Scientific-productive Company “Eastern European Energetic Union” Ltd. made a
                                           forward Contract with PSG-International (Czech) on leasing of Caterpillar gas engines
                                           signed on 26.11.04. PSG-International will purchase gas engines from American
                                           company Caterpillar and will lease them to SPC “Eastern European Energetic Union”.
                                           According to this forward Contract with PSG-International, the SPC “EEEU” has to put
                                           on Contractors bank account an advanced payment of 15% of the total investment
                                           sum. SPC “Eastern European Energetic Union” simply does not have money for an
                                           advanced payment, and that is the reason why leasing contract cannot be realized
                                           without a prepayment from Applicant‟s side.
                                           Required additional finances can be obtained through JI mechanism from a
                                           prepayment after ERPA signing with Austrian JI/CDM Program. Having received
                                           advance payment for future ERUs the SPC “Eastern European Energetic Union” will
                                           be able to make an advance payment to PSG-International and receive gas engines
                                           Caterpillar into leasing. Breaking the investment barrier makes project additional




4   Cp. http://cdm.unfccc.int/EB/.
5   Cp. http://cdm.unfccc.int/EB/Meetings/010/eb10repan1.pdf.
Monitoring Methodology and Plan
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E Monitoring Methodology and Plan
Emission reductions can only be acknowledged when these are proved by traceable monitoring of the project
activities and emissions.
Since the monitoring plan should document the actually achieved emission reductions as well as significant
additional ecological, socio-economic and development effects it can only be filled in after the project has already
been implemented. No differentiation is made between a JI and CDM project regarding the structure of the
monitoring plan. Specific regulations are however applicable to CDM small-scale projects. The EB prepared a
monitoring template for small-scale projects (SSC) which is available at http://unfccc.int/cdm/.
The monitoring reports must be delivered by the contractual party to an independent verification entity (IE or OE)
at regular intervals. This entity examines the reports. Monitoring data must be kept for at least 2 years after the
end of the crediting period or the last transfer of ERUs or CERs.
Details of theoretical fundamentals of the monitoring are described in part 1 of the guide.
The monitoring plan encompasses the following five areas:
1.   development of the monitoring plan and methodology,

2.   organisation and procedures of monitoring regarding the calculation of ERUs/CERs,

3.   review of significant additional ecological, socio-economic and development effects of the project,

4.   quality assurance,

5. responsibilities.
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E 1 DEVELOPMENT AND METHODOLOGY


E 1.1 Details of monitoring
plan development
Name and address of                  Scientific Engineering Center “Biomass” – developer of monitoring methodology and
person/entity determining the        also project developer
                                     Contact person: Mr. Alexander Filonenko – Consultant
monitoring methodology
                                     2A, Zhelyabov str., 03057, Kyiv, Ukraine
Please provide contact information tel. +(38 044) 456 94 62; fax: +(38 044) 456 94 62
and indicate if the person/entity is filonenko@biomass.kiev.ua
also a project participant.

(EB PDD D.7.)

Date of completing the final draft     7 July 2005
of the monitoring plan
(DD/MM/YYYY)



The following description and substantiation of the monitoring methods used is mandatory for CDM projects.
Authorised methods are available at http://unfccc.int/cdm/. New methods are to be substantiated and submitted to
the EB for appraisal (in the case of CDM projects).


E 1.2 Approved methodology
Name and reference of approved
methodology applied to the project
activity

If a national or international
monitoring standard has to be
applied to monitor certain aspects
of the project activity, please
identify this standard and provide a
reference to the source where a
detailed description of the standard
can be found.

(EB PDD D.1.)

Justification of the choice of the
methodology and why it is
applicable to the project activity

(EB PDD D.2.)
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E 2 CALCULATION OF ERUS OR CERS
In order to determine the actual emission reductions generated by the project the monitoring plan is based on the
baseline study.

                        Emission Reductions = (Baseline Emissions) ─ (Project Emissions)


Project emissions

E 2.1 Data relevant for
monitoring project emissions
(EB PDD D.3.)
ID number                           ID 1 - Emission 1 (see table D 2.1.)

Please use numbers to ease
cross-referencing.

Data type                           Quantity of SCH gas consumed by power plant

Data variable                       Quantity of SCH gas consumed by power plant

Data unit                           m3

Data quality                        Measurement
                                            Yes: Quantity of SCH gas consumed by the power plant will be measured by
                                             gas flow meter (storage counter). Gas flow meter will be installed at the plant.
                                    Quality of measurement is ensured by Ukrainian standards applied for commercial
                                          metering of NG consumption and payment for it (consumption of SCH gas is
                                          analogous to NG consumption):
                                          - accuracy of gas flow meter is 1%;
                                          - once a year gas flow meter is certified by state authorized laboratory.

                                    (State how the measurement is performed and the data quality ensured.)

                                    ⃝        No

                                    Calculation
                                            Yes: Calculation of corresponding emission is made on the basis of measured
                                             quantity of SCH gas consumed
                                    Emission (t CO2eq/yr) = input of SCH gas (mill m3/yr)* × 0.7605** × methane density
                                    (kg/ Nm3)*** × molecular mass ratio (t CO2/t CH4)****

                                    * According to contract on SCH gas supply in 2005-2015 between OGPD
                                    "Boryslavnaftogas" and SPC “Eastern European Energetic Union” Ltd. (Contract N
                                    1/4/184/129-G, 2004.)
                                    ** Concentration of methane in stripped casing-head gas. It is taken from results of
                                    laboratory analysis performed by Zeppelin Ukraine GmbH for SPC “Eastern European
                                    Energetic Union” Ltd. (Letter of 08.02.05).
                                    *** Methane's density is a conversion factor for calculation methane in tons, Density of
                                    CH4 = 0.7168 kg/m3, standard value for methane.
                                    ****Combustion of methane transforms it into CO2. Molecular mass ratio t CO2/t CH4
                                    = 44/16 = 2.75.

                                     (State how the calculation is performed.)
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                                     ⃝       No

                                     Estimate

                                     ⃝       Yes: ______________________________________________________
                                             (State which assumptions the estimate is based on and how it is
                                             performed.)

                                            No

Recording frequency                  Once a month (at the end)

Proportion of data to be monitored   100%

How will the data be archived?              Electronic

                                            In paper form

For how long is archived data to be 10 years
kept?
                                    The operator of power plant will have special instruction as for collection of data on
Comment                             consumed SCH gas and their recording:
                                    1. The operator takes reading of gas flow meter and records it (paper form of keeping
                                    the data).
                                    2. The operator informs chief power engineer about the data at gas flow meter.
                                    3. Chief power engineer puts down the data in PC file (electronic form of keeping the
                                    data)




E 2.2 Data relevant for
monitoring project emissions
(EB PDD D.3.)
ID number                            ID 1 - Emission 1 (see table D 2.1.)

Please use numbers to ease
cross-referencing.

Data type                            Quality of SCH gas consumed by power plant

Data variable                        Quality of SCH gas consumed by power plant

Data unit                            m3

Data quality                         Measurement
                                            Yes: Quality of SCH gas supplied to the power plant will be measured by gas
                                             analyzer installed before plant.
                                     Quality of measurement is ensured by Ukrainian standards applied for commercial
                                           gas analyzers:
                                           - accuracy gas analyzer 1%;
                                           - once a year gas analyzer will be calibrated and certified by state authorized
                                           laboratory.

                                     (State how the measurement is performed and the data quality ensured.)

                                     ⃝       No
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                                     Calculation
                                     ⃝         Yes:

                                      (State how the calculation is performed.)
                                            No

                                     Estimate

                                     ⃝       Yes: ______________________________________________________
                                             (State which assumptions the estimate is based on and how it is
                                             performed.)

                                            No

Recording frequency                  Once per hour

Proportion of data to be monitored   100%

How will the data be archived?              Electronic

                                            In paper form

For how long is archived data to be 10 years
kept?
                                    The operator of power plant will have special instruction as for collection of data on
Comment                             quality of consumed SCH gas and their recording:
                                    1. The operator takes reading of gas flow meter and records it (paper form of keeping
                                    the data).
                                    2. The operator informs chief power engineer about the data at gas analyzer.
                                    3. Chief power engineer keeps record of the data in PC file (electronic form of keeping
                                    the data)




The table is to be filled in separately for each data type and should therefore be copied as often as required.
E 2.3Data relevant for
monitoring leakage
(EB PDD D.4.)
ID number                            No leakage in the project scenario

Please use numbers to ease
cross-referencing.

Data type

Data variable

Data unit

Data quality                         Measurement

                                     ⃝       Yes: _____________________________________________________
                                             (State how the measurement is performed and the data quality ensured.)

                                     ⃝       No
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                                        Calculation

                                        ⃝     Yes: _____________________________________________________
                                              (State how the calculation is performed.)

                                        ⃝     No

                                        Estimate

                                        ⃝     Yes: ______________________________________________________
                                              (State which assumptions the estimate is based on and how it is
                                              performed.)

                                        ⃝     No

Recording frequency

Proportion of data to be monitored

How will the data be archived?          ⃝     Electronic

                                        ⃝     In paper form

For how long is archived data to be
kept?

Comment

The table is to be filled in separately for each data type and should therefore be copied as often as required.

Baseline emissions


Depending on the methodology used to determine the baseline the following tables may need to be filled in.

E 2.4 Data relevant for
monitoring baseline
emissions
(EB PDD D.5.)
ID number                               ID 1b - Emission 1 (item D 3.5)

Please use numbers to ease
cross-referencing.

Data type                               Quantity of SCH gas consumed by power plant is equivalent to the amount of flared
                                        SCH gas in baseline

Data variable                           Quantity of SCH gas consumed by power plant

Data unit                               m3

Data quality                            Measurement
(If no data will be collected on this        Yes: Quantity of SCH gas consumed by the power plant will be measured by
item, please explain the reason.)             gas flow meter (storage counter). Gas flow meter will be installed in the building
                                              of the plant.
                                        Quality of measurement is ensured by Ukrainian standards applied for commercial
Monitoring Methodology and Plan
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                                             metering of NG consumption and payment for it (consumption of SCH gas is
                                             analogous to NG consumption):
                                             - accuracy of gas flow meter is 1%;
                                             - once a year gas flow meter is certified by state authorised laboratory.

                                     (State how the measurement is performed and the data quality ensured.)

                                     ⃝       No

                                     Calculation
                                            Yes: Calculation of corresponding emission is made on the basis of measured
                                             quantity of SCH gas consumed
                                     Emission (t CO2eq/yr) = input of SCH gas (mill m3/yr)* × 0.7605** × methane density
                                     (kg/ Nm3)*** × molecular mass ratio (t CO2/t CH4)****

                                     * According to contract on SCH gas supply in 2005-2015 between OGPD
                                     "Boryslavnaftogas" and SPC “Eastern European Energetic Union” Ltd. (Contract N
                                     1/4/184/129-G, 2004.)
                                     ** Concentration of methane in stripped casing-head gas. It is taken from results of
                                     laboratory analysis performed by Zeppelin Ukraine GmbH for SPC “Eastern European
                                     Energetic Union” Ltd. (Letter of 08.02.05).
                                     *** Methane's density is a conversion factor for calculation methane in tons, Density of
                                     CH4 = 0.7168 kg/m3, standard value for methane.
                                     ****Combustion of methane transforms it into CO2. Molecular mass ratio t CO2/t CH4 =
                                     44/16 = 2.75.

                                      (State how the calculation is performed.)

                                     ⃝       No

                                     Estimate

                                     ⃝       Yes: ______________________________________________________
                                             (State which assumptions the estimate is based on and how it is
                                             performed.)

                                            No

Recording frequency                  Once a month (at the end)

Proportion of data to be monitored   100%

How is data archived?                       Electronic

                                            In paper form

For how long is data archived to be 10 years
kept?
                                    The operator of power plant will have special instruction as for collection of data on
Comment                             consumed SCH gas and their recording:
                                    1. The operator takes reading of gas flow meter and records it (paper form of keeping
                                    the data).
                                    2. The operator informs chief power engineer about reading of gas flow meter.
                                    3. Chief power engineer puts down the data in PC file (electronic form of keeping the
                                    data)
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E 2.5 Data relevant for
monitoring baseline
emissions
(EB PDD D.5.)
ID number                            ID 2 - Emission 2 (see table D 3.5.)

Please use numbers to ease
cross-referencing.

Data type                            Quantity of power supplied to local power grid

Data variable                        Quantity of power supplied to local power grid

Data unit                            kWh

Data quality                         Measurement
                                            Yes: Quantity of power supplied to local power grid will be measured by the
                                             power meters (storage counters). Quality of measurement is ensured by
                                             Ukrainian standards applied for commercial metering of power production and
                                             sale:
                                             - accuracy of power meters is 1%;
                                             - once a year power meters are certified by state authorised laboratory.

                                     ⃝       No

                                     Calculation
                                            Yes: Calculation of corresponding emission is made on the basis of
                                     measured quantity of electricity produced.
                                     Emission reduction (t CO2eq/yr) = generated power (MWh/yr) × carbon emission factor
                                     (t CO2/MWh)*
                                     *Factors for 2008-2012 are taken from Table B1 "Baseline carbon emission factors for
                                     JI projects generating electricity" of operational Guidelines for PDD's of JI projects
                                     (ERUPT 4, Senter, the Netherlands)

                                     (State how the calculation is performed.)

                                     ⃝       No

                                     Estimate

                                            Yes: It is assumed that operation of a new power plant on SCH gas results in
                                             saving fossil fuel on another power plant. That is why reduction of GHG
                                             emission is calculated on the basis of carbon emission factors for JI projects
                                             generating electricity
                                             (State which assumptions the estimate is based on and how it is
                                             performed.)

                                     ⃝       No

Recording frequency                  Once a month (at the end)

Proportion of data to be monitored   100%

How will the data be archived?              Electronic

                                            In paper form
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For how long is archived data to be 10 years
kept?

Comment                                 The operator of power plant will have special instruction as for collection of data on
                                        produced electricity and their recording:
                                        1. The operator takes reading of power meters and records it (paper form of keeping
                                        the data).
                                        2. The operator informs chief power engineer about the reading of power meters.
                                        3. Chief power engineer puts down the data in PC file (electronic form of keeping the
                                        data)




The table is to be filled in separately for each data type and should therefore be copied as often as required.


E 2.6 Data relevant for
monitoring leakage
ID number                               No leakage in the baseline scenario

Please use numbers to ease
cross-referencing.

Data type

Data variable

Data unit

Data quality                            Measurement

(If no data will be collected on this   ⃝     Yes: _____________________________________________________
item, please explain the reason.)             (State how the measurement is performed and the data quality ensured.)

                                        ⃝     No



                                        Calculation

                                        ⃝     Yes: _____________________________________________________
                                              (State how the calculation is performed.)

                                        ⃝     No



                                        Estimate

                                        ⃝     Yes: ______________________________________________________
                                              (State which assumptions the estimate is based on and how it is
                                              performed.)

                                        ⃝     No

Recording frequency
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Proportion of data to be monitored



How will the data be archived?        ⃝      Electronic

                                      ⃝      In paper form

For how long is archived data to be
kept?

Comment




The table is to be filled in separately for each data type and should therefore be copied as often as required.
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Emission reductions

E 2.7 Emission reductions
Calculation of emission reductions   Emission Reductions (for each year in the period 2006-2012) = Baseline
                                     Emissions (for each year in the period 2006-2012) ─ Project Emissions (for each
                                     year in the period 2006-2012)
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E3       ECOLOGICAL, SOCIO-ECONOMIC AND DEVELOPMENT EFFECTS
A monitoring plan is to be created for major ecological, socio-economic and development effects of the project. If
applicable, the following table shall be used.

E 3.1 Data relevant for
monitoring ecological, socio-
economic and development
effects of the project
ID number                            ID 1p – Effects on the medium air (item B 2.2)
Please use numbers to ease
cross-referencing.
Data type                            concentration of dust, NOx, and CO in flue gas
Data variable                        concentration of dust, NOx, and CO in flue gas
Data unit                            g/Nm3
Data quality
                                     Measurement
                                            Yes: Concentration of pollutants in exhaust gases of gas engines is measured
                                             by measuring instrument included in state register. Quality of measurement is
                                             ensured by Ukrainian standards applied for metering pollutants from industrial
                                             enterprises:
                                             - accuracy of measuring instrument is 1%;
                                             - once a year measuring instrument is certified by state authorised laboratory.
                                             Measurements are carried out by representatives of Ecology Inspection from
                                             State Department of Ecology and Natural Resources in Lviv oblast
                                     ⃝ No
                                     Calculation
                                     ⃝       Yes: _____________________________________________________
                                             (State how the calculation is performed.)
                                            No
                                     Estimate
                                     ⃝ Yes: ______________________________________________________
                                          (State which assumptions the estimate is based on and how it is
                                          performed.)
                                      No
Recording frequency                  at least twice a year
Proportion of data to be monitored   100%
How will the data be archived?        Electronic
                                     In paper form
For how long is data archived to be 10 years
kept?
Comment                             Representatives of Ecology Inspection from State Department of Ecology and Natural
                                    Resources in Lviv oblast attend the new power plant and measure concentration of
                                    pollutants in exhaust gases of gas engines according to methodology established in
                                    Ukraine
The table is to be filled in separately for each data type and should therefore be copied as often as required.
Examples of data relating to particular environmental media and socio-economic and development aspects are
included in the appendix.
Monitoring Methodology and Plan
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E4       PROCESS, QUALITY AND SELF-CHECKING
The entire process of data acquisition and processing must be documented. In addition a system for information
procurement and processing and quality control must be established. Furthermore, the monitoring should be
capable of self-checking using plausibility checks.


E 4.1 Procedures
Data                                ID 1, Table E 2.1.

Please indicate table and ID
number.

(EB PDD D.6.)
                                    Quantity of SCH gas consumed by gas engines of the power plant will be measured
Data acquisition (including         by gas flow meter (storage counter). Gas flow meter will be installed inside of power
measuring methods)                  plant.

                                    The operator of the power plant will have special instruction as for collection of data
                                    on consumed SCH gas and their recording:
                                    The operator takes data from gas flow meter and records it (paper form of keeping the
                                    data).
                                    The operator informs chief power engineer about reading of gas flow meter. Chief
How is the data transmitted?        power engineer puts down the data in PC file (electronic form of keeping the data)

Uncertainty level of data           Low
(high/medium/low)
(EB PDD D.6.)

Are quality assurance/quality               Yes: Quality assurance is guaranteed by quality and accuracy of gas flow meter
control procedures planned for
                                    ⃝        No:
these data?

Please add an explanation.

(EB PDD D.6.)
Measures for quality assurance
                                    Every year gas flow meter is brought to State Standard body for calibration and
                                    certification.

Checking of data for consistency,   Measures:
completeness and correctness        - comparison with reading of gas flow meter for previous similar period;
                                    - ensuring uninterrupted work of gas flow meter during required period of
                                    measurement.

How are errors during data          In case of error in data acquisition amount of consumed SCH gas can be defined on
acquisition dealt with?             the basis of meterage of gas flow meter installed on OGPD “Boryslavnaftogas”
                                    (supplier of SCH gas to the power plant).




E 4.2 Procedures
Data                                ID 1, Table E 2.2.

Please indicate table and ID
number.
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(EB PDD D.6.)
                                    Quality of SCH gas consumed by gas engines of the power plant will be measured by
Data acquisition (including         gas flow meter (storage counter). Gas flow meter will be installed inside of power
measuring methods)                  plant.

                                    The operator of the power plant will have special instruction as for collection of data
                                    on quality of consumed SCH gas (methane content) and their recording:
                                    The operator takes data from gas analyzer and records it (paper form of keeping the
                                    data).
                                    The operator informs chief power engineer about data at gas analyzer. Chief power
How is the data transmitted?        engineer puts down the data in PC file (electronic form of keeping the data)

Uncertainty level of data           Low
(high/medium/low)

(EB PDD D.6.)

Are quality assurance/quality               Yes: Quality assurance is guaranteed by quality and accuracy of gas analyzer
control procedures planned for
                                    ⃝        No:
these data?

Please add an explanation.

(EB PDD D.6.)
Measures for quality assurance
                                    Every year gas analyzer will be calibrated and certified by specialized State Standard
                                    body.

Checking of data for consistency,   Measures:
completeness and correctness        - comparison of data for previous similar period;
                                    - ensuring uninterrupted work of gas analyzer during required period of operation.

How are errors during data          n/a
acquisition dealt with?



E 4.3 Procedures
Data                                ID 2, Table E 2.5.

Please indicate table and ID
number.

(EB PDD D.6.)
                                    Quantity of power produced by the power plant on SCH gas (in kWh) will be measured
Data acquisition (including         by the power meters.
measuring methods)
                                    The operator of the power plant will have special instruction as for collection of data
                                    on produced electricity and their recording:
                                    The operator takes reading of power meters and records it (paper form of keeping the
                                    data).

                                    The operator informs chief power engineer about reading of power meters. Chief
How is the data transmitted?        power engineer puts down the data in PC file (electronic form of keeping the data)

Uncertainty level of data           Low
(high/medium/low)

(EB PDD D.6.)
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Are quality assurance/quality               Yes: Quality assurance is guaranteed by quality and accuracy of power meters
control procedures planned for
                                    ⃝        No:
these data?

Please add an explanation.

(EB PDD D.6.)

Measures for quality assurance      Every year power meters are brought to State Standard body for checking and
                                    certification.

Checking of data for consistency,   Measures:
completeness and correctness        - comparison with reading of power meters for previous similar period;
                                    - ensuring uninterrupted work of power meters during required period of
                                    measurement.

How are errors during data          In case of error in data acquisition amount of produced power can be calculated
acquisition dealt with?             starting from measured amount of consumed SCH gas and known technical
                                    parameters of power generating equipment.


E 4.4 Procedures
Data                                ID 1b, Table E 2.4.

Please indicate table and ID
number.

(EB PDD D.6.)
                                    Quantity of SCH gas consumed by gas engines of the power plant will be measured
Data acquisition (including         by gas flow meter (storage counter). Gas flow meter will be installed in the building of
measuring methods)                  power plant.

                                    The operator of the power plant will have special instruction as for collection of data
                                    on consumed SCH gas and their recording:
                                    The operator takes reading of gas flow meter and records it (paper form of keeping
                                    the data).
                                    The operator informs chief power engineer about reading of gas flow meter. Chief
How is the data transmitted?        power engineer puts down the data in PC file (electronic form of keeping the data)

Uncertainty level of data           Low
(high/medium/low)
(EB PDD D.6.)

Are quality assurance/quality               Yes: Quality assurance is guaranteed by quality and accuracy of gas flow meter
control procedures planned for
                                    ⃝        No:
these data?
Please add an explanation.

(EB PDD D.6.)
Measures for quality assurance
                                    Every year gas flow meter is brought to State Standard body for checking and
                                    certification.

Checking of data for consistency,   Measures:
completeness and correctness        - comparison with reading of gas flow meter for previous similar period;
                                    - ensuring uninterrupted work of gas flow meter during required period of
Monitoring Methodology and Plan
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                                    measurement.

How are errors during data          In case of error in data acquisition amount of consumed SCH gas can be defined on
acquisition dealt with?             the basis of meterage of gas flow meter installed on OGPD “Boryslavnaftogas”
                                    (supplier of SCH gas to the power plant).
Monitoring Methodology and Plan
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E5       RESPONSIBILITIES


E 5.1 Responsibilities
Technical responsibility              Contact person: Mr. Jurgen Leman, Director of Service Department, Zeppelin Ukraine
                                      Address: 34 Vasylkivska str., 3-rd floor, Kyiv, Ukraine, 03022

                                      Tel. +38 044 494 23 30; fax: +38 044 494 23 31

                                      E-mail: robert@zeppelin.com.ua
Commercial responsibility             Contact person: Mr. Logatskiy Victor, Director of Economics

                                      Address: 23/4 Sagaidachnogo Str., Kyiv, Ukraine, 01032

                                      tel. +38 044 463 71 06; fax: +38 044 463 71 06
                                      E-mail: eeeu@mail.ru

Responsibility for data acquisition   Contact person: Mr. Kirichenko Dmitriy, Service Engineer, Zeppelin Ukraine

                                      Address: 34 Vasylkivska str, 3-rd floor

                                      Tel. +38 044 494 23 30; fax: +38 044 494 23 31

                                      E-mail:

Responsibility for calculation of     Contact person: Mr. Khimoroda Yevgen, Application Engineer, Zeppelin Ukraine
emission reductions
                                      Address: Address: 34 Vasylkivska str., 3-rd floor, Kyiv, Ukraine, 03022
                                      Tel. +38 044 494 23 30; fax: +38 044 494 23 31

                                      E-mail: khimoroda@zeppelin.com.ua

Responsibility for monitoring         Contact person: Mr. Alexander Filonenko, Consultant, SEC “Biomass”
supervision
                                      Address: 2A, Zhelyabova str., , Kyiv, Ukraine, 03057

                                      tel. +(38 044) 456 94 62; fax: +(38 044) 456 94 62

                                      E-mail: filonenko@biomass.kiev.ua