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PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

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CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD)

Version 03 - in effect as of: 22 December 2006

CONTENTS

A. General description of the small scale project activity

B. Application of a baseline and monitoring methodology

C. Duration of the project activity / crediting period

D. Environmental impacts

E. Stakeholders comments

Annexes

Annex 1: Contact information on participants in the proposed small scale project activity

Annex 2: Information regarding public funding

Annex 3: Baseline information

Annex 4: Monitoring Information


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Revision history of this document

Version Number

Date Description and reason of revision

01 21 January 2003

Initial adoption

02 8 July 2005 The Board agreed to revise the CDM SSC PDD to reflect guidance and clarifications provided by the Board since version 01 of this document.

As a consequence, the guidelines for completing CDM SSC PDD have been revised accordingly to version 2. The latest version can be found at .

03 22 December 2006

The Board agreed to revise the CDM project design document for small-scale activities (CDM-SSC-PDD), taking into account CDM-PDD and CDM-NM.


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SECTION A. General description of small-scale project activity

A.1 Title of the small-scale project activity: Natural Gas based bundled Co-generation and Tri-generation rental project in industrial facilities.

Version 01 Date: 19/01/2009

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

Quippo Energy Rental provides a unique rental proposition - an alternative to "buying" in the area of gas based power generation to user who have access to piped natural gas and also other forms of gas (non-natural gas) by putting together containerized equipment to generate power, heat and cooling. As a common practice the electric power needed for the operations is being taken from the state electricity board grid or met by way of owned captive generation on fossil fuels (Coal/HSD/HFO/Stoic Engine) by using generators, thermal energy is generated by combustion of fossil fuel in a separate system (fired boilers) and chilled water was being generated using vapour compression chillers driven by electricity.

Purpose of the project activity: The objective of the project is to reduce Green House Gas (GHG) emission through adaptation of a cogeneration system with enhanced efficiency and substitution of carbon intensive fuel based power generation with comparatively cleaner natural gas based power generation and utilization of waste heat for thermal energy generation. The project activity thus leads to a cleaner environment through lower greenhouse gas emissions and other pollutants and greater energy security of the nation through lower fuel consumption, fossil fuel conservation for other activities. It also ensures contribution towards sustainable development through social, economic, environmental and technological innovation.

Salient Features of the Project: The project proponent QEPL is in the field of renting power packs with natural gas based power generation facility and has been able to replace 13.632 MW of electrical power (rated) at 6 different locations along with installation of 9 nos. of Exhaust Gas Boilers, 1Hot Water generator and 3 nos. of vapour absorption chillers using waste heat .

(Ref. Contract No) / Company Name

Capacity of Power Pack (Installed Rated- kWe)

Waste Heat Recovery Mechanism

(J002) International Electron Devices Ltd. Ghaziabad, UP

1 * 1021 KW = 1021 1 * Exhaust Gas Boiler

(J006) Mayur Dye-Chem Intermediates Ltd. Vadodara, Gujarat

1 * 1021 KW = 1021 1 * Exhaust Gas Chiller 1 * Jacket Water Chiller

(J007) Star OxoChem Pvt. Ltd., Jhagadia Dist. Bharuch, Gujarat

1 * 1021 KW = 1021 1 * Exhaust Gas Boiler

(J008) Raymond Limited, Paladi Dist. Valsad, Gujarat

1 * 1364 KW = 1364 1 * Exhaust Gas Boiler 1* Hot Water Generator

(J012) Micro Inks Limited, Vapi , Gujarat

5 * 1364 KW = 6820 1 * 1021 KW = 1021

5 * Exhaust Gas Boilers

(J013) Bilag Industries Limited, Vapi , Gujarat

1 * 1364 KW = 1364 1 * Exhaust Gas Boiler 1* Jacket Water Chiller


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Power packs will deliver output of 71.650 GWH at average 60% effective PLF and provides the base load electrical demand of the industry at the specified reference condition.

The introduction of an energy efficient natural gas based power generation along with waste heat recovery system would result in increase in overall energy efficiency and reduction in the total amount of fossil fuel used to provide heat and electricity to the industrial facility thereby resulting in a significant amount of green house gas emission reduction estimated at 36,168 tCO2-equivalent per annum or an 361,680 tCO2-equivalent over a period of ten years.

Project contribution towards sustainable development With its corporate strategy of innovation in every aspect of business and its commitment to socially responsible practices the strategic planning at Quippo is aimed at establishing a balance between social, economic and environmental demands of conducting business.

Quippo has hence selected eco-friendly and contemporary technology to establish new paradigms from an environmental perspective while also being committed towards development of the community. Thus the projects contribution towards sustainable development has been addressed based on the following pillars of sustainable development as follows:

Social well being

The project activity would result in generation of employment opportunities for professional, skilled and unskilled labor for management, operation and maintenance of the new activities. The development of project specific infrastructure has also resulted in employment and income generation sources.

In addition various kinds of electromechanical work would generate employment opportunities for local contractor on regular and permanent basis. The concept of packaged cogeneration is the first of this kind in the region moreover the project activity is a result of involvement of many international vendors which have studied and engineered the project, the project would contribute towards capacity building in terms of technical knowledge and managerial skills.

In the context of national energy, the Indian economy is highly dependent on oil imports, with more than seventy percent of oil being imported and with unstable crude prices in the world market, the project activity through partial elimination of fuel oil consumption will contribute towards the national energy security.

Economic well being Successful implementation of the project activity will attract other industries towards the Natural Gas Project and being a tri-generation project it will promote the efficient utilization of Natural Gas. It will further encourage the expansion of Natural Gas Based grid not only in Gujarat but also in other parts of the country this will in turn result in to economic development.

Environmental well being

The project activity through adaptation of natural gas based power generation facility would be reducing considerable amount of GHG emission which would have taken place in the pre project scenario. As sulphur content in the natural gas is very low and can be considered to be nil for any practical purpose therefore the project would result in eliminating the SOx emissions to a considerable extent. The project


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is also results in elimination of NOx, carbon monoxide and particulate matter emission level. Hence the project activity apart from reducing greenhouse gas emissions will be contributing towards better quality environment for the employees and the community.

The project activity will also lead towards better management of health and safety of the employee through incorporation of equipment with minimum noise generation by utilization of sound attenuation structure (containers).

Technological well being

Natural gas based packaged cogeneration system is a robust and clean technology and it serves as a demonstration project to encourage the development of more efficient cogeneration systems throughout the country-.

The project will contribute positively to the application of natural gas based cogeneration in the industry. The development of such technology is very limited facing many financial, institutional and technical barriers. More specifically barrier of lack of awareness of the potential of energy efficiency and its technical and economic benefit would be lowered by the incorporation of the project.

A.3. Project participants: The Party which is hosting the proposed CDM project activity i.e. the host country for the CDM project activity is India. India has already ratified the Kyoto Protocol on 26 August 2002 (Type A). Ratification details are available in the UNFCCC website.

Name of Party Involved (*) ((host) indicates a host party)

Private and/or Public entity (ies) Project Participants (*) as applicable

Kindly indicate if the party involved wishes to be considered as a project participant (Yes / No)

Government of India (Host Country)

A) Quippo Energy Private Limited. India

B) KfW, Germany

No

(*) In accordance with the CDM Modalities and procedures, at the time of making the CDM-PDD public at the stage of validation, a Party involved may or may not have provided its approval. At the time of requesting the registration, the approval by the party (ies) involved is required. Note: When the PDD is filled in support of a new methodology (forms CDM-NBM and CDM-NMM), at least the host party (ies) involved and any known project participant (e.g. those proposing a new methodology) shall be identified.


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The entity who is investing in the project activity i.e. Quippo Energy Private Limited is the Project Participant for the project activity.

CDM revenue generated from a particular industrial facility will be equally shared between QEPL and the corresponding industrial facility.

A.4. Technical description of the small-scale project activity:

The proposed CDM project activity has following two specific components: Switching from grid power & HSD/FO/Coal based/Stoic Engine captive power generation to

Natural Gas based captive power generation. Waste heat utilization from the exhaust gases of the engine of captive power plant through waste

heat boiler, exhaust gas chiller and jacket water chiller or hot water generator.

A brief description of the project activity is provided in following paragraphs:

Natural Gas based captive power generation

As an alternative to drawing power from the state electricity grid, industries establish captive facilities for power generation and as a common practice all locations have coal based or HSD/HFO based captive generation. Quippo is providing at aforesaid locations natural gas based packaged power generation units coupled with waste heat recovery system for heating/cooling requirement.

Power Pack (Gas Engine)

Exhaust Gas Boiler/VAC

Jacket Water Chiller

Steam/Chilling

Auxiliary Consumption

Net Power Output

Power Generated

Natural Gas

Chilling Exhaust Gas Heat

Coolant Heat


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Detailed Technical specification of captive power generation unit are given in the Table1

Table 1: Technical Specifications of Power Pack Power Pack PP1000 PP1300 Engine Power (KW) 1050 1400 Speed (rpm) 1500 1500 Exhaust Temperature (0C) 517 526 Compression Ratio 12:1 12:1 Generator Efficiency (%) 97.2 97.4 Energy Balance Electrical Power (KW) 1021 1364 Jacket water heat (KW) 475 624 Intercooler LT Heat (KW) 87 112 Exhaust Gas (KW) 682 928 Radiation Heat (KW) 89 108 Fuel Consumption (KW) 2545 3394 Electrical Efficiency (%) 40.1 40.2 Thermal Efficiency (%) 45.5 45.7 Overall Efficiency (%) 85.6 85.9

Source: Technical Data Sheet as provided by the manufacturer.

Captive natural gas based co generation power plant leads to reduction in CO2 emission as overall efficiency of the captive power generator is 85% as compared to 35% efficiency (Source: CEA Database Version 4)of the fossil fuel based power plants supplying electricity to grid or HSD/FO/Stoic Engine efficiency. At the same time natural gas is less carbon intensive than other fossil fuels like Coal, HSD, and HFO. Carbon emission intensity of fossil fuels as per IPCC guidelines 2006 is given below:

Fossil Fuel Coal Lignite Diesel Furnace Oil

Natural Gas

Naphtha Gasoline

CO2 emission factor (tCO2/TJ) 96.1 101 74.1 77.4 56.1 73.3 69.3

Waste Heat Utilization Apart from the two reasons mentioned above, the emission of carbon dioxide also reduces due to recovery of waste heat from the exhaust of the engine. This waste heat is used for running a vapour absorption chiller to produce cooling effect or Exhaust Gas Boiler (EGB) to produce steam. Vapour Absorption Chiller can be operated from two sources:

a. Exhaust Gas Chiller (EGC) which is operated on the heat recovery from exhaust gases from engine.

b. Jacket water Chiller which is operated on the heat recoverd from jacket water used for cooling of engine.


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Estimation of waste heat recovery through Vapour Absorption Chiller and Boiler is given in the Table 2

Table 2: Estimation of waste heat recovery Power Pack Model

Electricity Generation Capacity (KW)

Loading (%)

Jacket Water Chiller Capacity (TR)

Exhaust Gas Chiller Capacity (TR)

Boiler (10.54 Kg/cm2) Giga Cal/Hr

1021 100 0.52 75 0.43 PP1000 50

98 to 102 203 to 228 0.30

1364 100 0.70 75 0.58 PP1300 50

110 to 123 272 to 310 0.41

Source: Technical Data Sheet as provided by the manufacturer.

In the absence of project activity, steam would have been produced by Coal, HSD or HFO fired boiler system. Vapour compression using compressors run by electrical motors is the predominantly used technology in India for condensing the vapours of the refrigerant in a refrigeration / air conditioning cycle because of its low initial cost as compared to vapour absorption system.

Technical specification of Exhaust Gas Chiller and Jacket Water Chiller are given in Table 3 and Table 4 respectively.

Table 3: Exhaust Gas Chiller SOURCE OF HEAT - EXHAUST GAS 1000

Power Pack 1300

Power Pack 1 Exhaust Gas Flow Rate (8%) Kg/hr 5499 7332 2 Exhaust Gas Temperature inlet Deg C 517 526

3 Chiller Type Model EGC 1000 EGC 1300

4 Capacity TR 228 203 310 272

5 Exhaust Gas Temperature outlet Deg C 180 180 180 180

6 Chilled water inlet temperature Deg C 12 10 12 10

7 Chilled water outlet temperature Deg C 7 5 7 5

8 Chilled Water Flow Rate M3/hr 137.89 122.77 187.49 164.51

9 Cooling water inlet temperature Deg C 32 32 32 32

10 Cooling water outlet temperature Deg C 37.3 37.3 37.2 37.0

11 Cooling Water Flow Rate M3/hr 228 228 310 310

12 Vacuum Pump Rating KW 0.75 0.75

13 Auxiliary Power Consumption (ABS+REF+DAMPER+CP) KW 3.35 4.15 Source: Technical Data Sheet as provided by the manufacturer.


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Table 4: Jacket Water Chiller

Source: Technical Data Sheet as provided by the manufacturer

SOURCE OF HEAT - JACKET WATER 1000 Power Pack 1300

Power Pack

1 HT Jacket water heat rejection (8%) KW 473 622 2 Jacket Water Outlet Temp Deg C 92 92 3 Jacket Water Inlet Temp Deg C 82 82 4 Jacket Water flow Rate M3/hr 44 53 5 Chiller Type JWC 17 JWC 13 6 Capacity TR 102 98 123 110 7 Chilled water inlet temperature Deg C 12 10 12 10 8 Chilled water outlet temperature Deg C 7 5 7 5 9 Chilled Water Flow Rate M3/hr 61.69 59.27 74.39 66.53 10 Cooling water inlet temperature Deg C 32 32 32 32 11 Cooling water outlet temperature Deg C 37.3 37.1 38 37.4 12 Cooling Water Flow Rate M3/hr 141 141 149 149 13 Vacuum Pump rating KW 0.75

14 Auxiliary Consumption (ABS+REF+CP) KW 2.45


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

5. Micro Inks Ltd 6. Bilag Industries Ltd.

4. Raymond Ltd.

3. Star Oxo Chem Pvt. Ltd.

2.Mayur Dye Chem Intermediates Ltd.


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1. International Electron Devices Ltd.


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A.4.1.1. Host Party (ies): >> India

A.4.1.2. Region/State/Province etc.: >> Uttar Pradesh, Gujarat

A.4.1.3. City/Town/Community etc: >> Ghaziabad, Vadodara, Jhagadia, Paladi, Vapi

A.4.1.4. Details of physical location, including information allowing the unique identification of this small scale project activity:

Company Name

Address Latitude and Longitude

International Electron Devices Ltd. Ghaziabad

Plot No. 609, Village- Chhapraula, Dist Gautam Budh Nagar

201009, U.P.

Latitude: 2803713.21N Longitude : 7702831.66E

Mayur Dye-Chem Intermediates Ltd. Vadodra (Baroda)

Unit III, Survey No. 327 to 334-A, Village Karkhadi, Ta. Padra, Dist

Baroda. Gujarat

Latitude: 2201529.45N Longitude : 730009.01E

Star Oxo Chem Pvt. Ltd., Jhagadia Plot No. 756/10 A&B, Mega Ind. Estate, Jaghadia- 393110, Dist

Bharuch. Gujarat

Latitude: 2103849.78N Longitude: 730738.08E

Raymond Limited, Valsad NH 8, Khadki Udwada Tal. Pardi, Dist. Valsad 396185. Gujarat

Latitude: 2002859.97N Longitude:7205553.05E

Micro Inks Limited, Vapi Plot No. 808/E, 305/6/7, GIDC, Vapi 396 195. Gujarat

Latitude: 2002218.74 N Longitude:7205615.61E

Bilag Industries Limited Plot No. 306 / 3, II Phase, GIDC, Vapi 396 195, Gujarat

Latitude: 2002221.93N Longitude: 720563.38E


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A.4.2. Type and category(ies) and technology/measure of the small-scale project activity: Type II: Energy Efficiency Projects Sub Category: II H, Version 01, in effect from 14 April. 2008 Energy efficiency measures through centralization of utility provisions of an industrial facility Sectoral Scope Number 4: Manufacturing industries.

A.4.3 Estimated amount of emission reductions over the chosen crediting period: >>

YEAR ESTIMATION OF ANNUAL EMISSION REDUCTION IN TONNES OF CO2EQ.

2009 36,168 2010 36,168 2011 36,168 2012 36,168 2013 36,168 2014 36,168 2015 36,168 2016 36,168 2017 36,168 2018 36,168 Total Estimated Reductions (tCO2eq.) 361,680 No. of Crediting Years 10 Annual Average of Estimated Reductions over the Crediting Period

36,168

A.4.4. Public funding of the small-scale project activity: >> No Official Development Allocation (ODA) will be invested in the project activity.

A.4.5. Confirmation that the small-scale project activity is not a debundled component of a large scale project activity: >> In accordance with Appendix C to simplified modalities and procedure for small scale CDM project activities DETERMINIG THE OCCURENCE OF DEBUNDLING it can be confirmed that the proposed small scale project activity is not a debundled component of a large scale project activity. As apart from the proposed project activity there is no registered or applied small scale CDM project activity:

(a) With the same project participants;

(b) In the same project category and technology/measure; and

(c) Registered within the previous 2 years; and

(d) Whose project boundary is within 1 km of the project boundary of the proposed small scale activity at the closest point.


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SECTION B. Application of a baseline and monitoring methodology

B.1. Title and reference of the approved baseline and monitoring methodology applied to the small-scale project activity: Type II H: Energy efficiency measures through centralization of utility provisions of an industrial facility Version 1, in effect from 14 April 2008 Reference: Appendix B of the Simplified Modalities and Procedures for Small Scale CDM Project

B.2 Justification of the choice of the project category: The project activity meets all the applicability criteria as proposed in the approved baseline methodology AMS II H version 01 Energy efficiency measure through centralization of utility provisions of an industrial facility. The methodology is applicable to the Quippo natural gas based packaged cogeneration and tri-generation project under the following conditions.

The applicability of the methodology is justified as follows:

Applicability Criteria 1: This methodology comprises energy efficiency measures implemented through integration of a number of utility provisions (for power, steam/heat and cooling) of an industrial facility into one single utility. The single utility shall consist of either, a Combined Heat and Power (CHP - Cogeneration) or a Combined Cooling, Heat and Power (CCHP - tri-generation) installation, replacing one or more:

(a) Existing utility provisions, and/or

(b) Facilities that would have otherwise been built.

Justification: Project activity involves generation of power, steam/heat and chilled water from same natural gas based system replacing separate power generation; steam generation/heating and chilling system which is either existing or would have otherwise been built meet the power, steam/heating and cooling requirement of the industrial facility. Hence the project activity falls under CHP Cogeneration/CCHP Tri-generation category. Establishment of captive generation of power using natural gas as fuel is providing the opportunity for using waste heat in the exhaust of the power plant and effective utilization of this waste heat in vapour absorption chillers and exhaust gas boilers is leading to improvement in energy efficiency.

Applicability Criteria 2: Measures are limited to the activities that result in additional steam/heat and/or cooling generation capacity of no more than 5% of the pre project situation. Consequently the methodology is not applicable to activities seeking to retrofit existing facility to increase steam/heat output. Justification: Project activity is not a retrofit to the existing facility for capacity addition; it involves the installation of a completely new steam/heat generation unit, Waste Heat Recovery Exhaust Gas Boiler, in the facility.

Applicability Criteria 3: This methodology is applicable under the following conditions:

(a) Project activity results in total energy saving of no more than 60 GWh (or 180 GWhth) per year;


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(b) Project activity does not displace existing CHP or CCHP systems; and

(c) In case of CCHP systems, the project activity shall include the shift from vapour compression chillers using chemical refrigerants to chillers which use refrigerants that have no global warming potential (GWP) and no ozone depleting potential (ODP). This conversion must be voluntary and not mandated by laws or regulations.

Justification: (a) Maximum energy saving (sum of electrical energy saving and thermal energy saving) through

project activity will be 65 GWhth/year. (b) No CHP / CCHP system is being replaced at the six sites. (c) Pure water is used as a refrigerant in Vapour Absorption Chillers, pure water wdoes not have any

global warming potential or ozone depletion potential.

Applicability Criteria 4: In case the produced electricity, cooling or steam/heat are delivered to another facility within the project boundary, a contract between the supplier and consumer of the energy will have to be entered into specifying that only the facility generating the energy can claim emission reductions from the energy displaced.

Justification: All electrical and heat energy generated by CHP system is utilized in the same industrial facility.

B.3. Description of the project boundary: The Project Boundary is represented by dotted box in below diagram

B.4. Description of baseline and its development:

In accordance with the paragraph 8 of the approved methodology AMS II H

for power generation in natural gas based generators; the baseline considered is power supply from the grid/ on site captive power generation using fossil fuel;

for steam/heat generation baseline considered is fossil fuel; and

for cooling requirement baseline considered is vapour compression chiller consuming electricity from grid/captive power plant.

Plant Equipments/Process

Auxiliary Consumption

Captive Power Generation Heating /Cooling

Power Generated

Net Power Generated

Waste Heat Utilization


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In case of new facility baseline considered is the energy use of the facility that would have been otherwise built.

In accordance with paragraph 9 of the approved small scale methodology baseline GHGs emission for electricity displaced from grid will be calculated by multiplying grid emission factor with amount of electricity generated by natural gas based generator.

With the purpose of providing a ready reference for the grid emission factors to be used in CDM projects, Central Electricity Authority (CEA), Government of India, has published, CO2 Baseline Database for the Indian Power Sector User Guide, Version 4.0. This database is an official publication of the Government of India for the purpose of CDM baselines. It is based on the most recent data available to the Central Electricity Authority.

Baseline GHGs emission for electricity displaced from captive power plant will be calculated by multiplying emission factor of captive power plant (calculated based on specific fuel consumption) consuming coal/HSD/HFO/Natural Gas with amount of electricity generated by natural gas based generator.

In accordance with paragraph 10 of the approved small scale methodology AMS II H baseline GHGs emission for steam/heat will be calculated based on quantity of baseline fuel (HFO/Natural Gas) that would have been consumed in the absence of project activity, in accordance with Tool to calculate project or leakage CO2 emission from fossil fuel consumption.

In accordance with paragraph 11 of the approved small scale methodology for an absorption chiller baseline emission is the emission from electricity consumed to operate the baseline chiller whether it is captive power or power from grid.

GHGs emission in presence of CDM project activity will be calculated based on amount of natural gas consumption in CHP/CCHP system in accordance with Tool to calculate project or leakage CO2 emission from fossil fuel consumption.


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B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the registered small-scale CDM project activity: The project activity is considered to be additional if anthropogenic emissions of GHG gases by sources are reduced below those that would have occurred in the absence of the registered CDM project activity (as per the decision 17/cp.7 para 43 ).

There are a number of barriers towards implementation of the proposed CDM project. An outline of the barriers towards implementation of project has been provided in the following paragraphs:

Project Specific Risk due to Gas Availability and Rental Model

Domestic gas production in India has either been stagnating or increasing at a slow pace over the past five years. The increase in production from OIL and JV/private producers has been largely offset by the decline in production by ONGC as Table shows.

Actual supply to the market is lower because of internal consumption, recovery of higher hydrocarbons and flaring. For instance, supplies were only around 75 MMSCMD in 2005-06 from domestic production as against production of 89 MMSCMD.(Source: Indian Natural Gas Sector : Developments and Outlook By ICRA)

As against the gas availability of 93 MMSCMD, current demand is estimated, even at conservative levels, at 166 MMSCMD. ICRAs estimates of gas supplies, taking into account the proven gas fields and the developmental plans announced, are shown in table below:


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As against the supply estimates mentioned in table above a huge latent demand notwithstanding, gas to gas competition, based on the delivered price of Natural Gas, may well emerge.

It is clear from the above discussion that due to huge demand and supply gap of natural gas in India there is high uncertainty of availability of natural gas. Due to shortage in supplies of natural gas project operation may face barrier due to termination of rental contract with Quippo on account of non-availability of assured and affordable fuel supply.

The Indian gas market, historically used to price subsidisation even with the prices of alternative feedstock/fuels ruling high on an energy equivalent basis, has witnessed significant developments over


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the past two years in terms of price rationalisation. Definitive steps were taken by the GoI when it issued a gas pricing order, after nearly five years delay, with effect from July 1, 2005 and then second pricing order in June 2006. Changes in the prices after each order are shown in the table below:

In view of the developments discussed, nearly 50% of the market is buying gas at market rates. Going forward, this proportion can only increase in the coming years. The price of R-LNG supplied by Petronet LNG Limited, the main supplier in the Indian markets at present, is also expected to undergo a significant change beginning January 2009, when the currently existing cap is lifted and prices get gradually aligned with the Japanese Custom Cleared Crude Oil prices. The incremental LNG to be sourced in the Indian market is also expected to be available at higher prices than contracted hitherto, given the tight demand-supply levels for LNG current and envisaged in the global market.


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An user of QEPL Solution can withdraw from the rental contract due to following reasons:

1. Considering the on going shortage of supply of natural gas, prices are always expected to rise; the other cause of price hike can be internal policy changes by government. Any further rise in the natural gas price can make cost of natural gas based power generation non-viable option for the QEPL solution users. In that case users can switch back to their previous source - grid power or other cheaper liquid fuel based captive generation options.

2. Perceived risk of non availability or curtailment of the supply natural gas in future: Indias domestic production of natural gas is not sufficient to cater the ever rising demand of natural gas and international scenario is highly volatile in terms of oil and gas production.

3. There are chances that due to expansion plans of clients and an increased load in the client facility the QEPL solution user can go in for a owned captive power plant in future.

4. Any abrupt change in government policy on captive power generation and/or imposition of new taxes or upward revision in electricity duty payable on self generated units or demand charges for stand-by grid connection can make the entire solution non-viable instigating users to withdraw from the contract prematurely.

5. User owning cost reduction due to decreasing import duty structure on power generating equipment can be a potential threat for termination of the service contract.

.


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Financial barrier to project activity

Benchmark Analysis Approach has been used to demonstrate the financial barrier to project activity. Details of the project cost and other financial information are given in below table:

Description (in Rs. Lacs*) Project Cost Power Packs 2930.88 Boilers 225 Chillers 130 Margin Money for Working Capital 19.7 Total 3305.6 Project Financing (Rs. Lacs)

Debt (75%) 2479.2 Equity (25%) 826.4 Rate of interest 12% Working Capital (Rs. Lacs)

1 Month Receivable 78.9 Working Capital Debt (75%) 59.2 Rate of Interest 12% Working Capital Equity (25%) 19.7 Depreciation 10.34% Revenue Generation

Capacity 13.632 MW Effective PLF1 60% Electricity Generation 716.50 Lac units Electricity Sale Price 1.20 Rs./Unit Boiler Rent 89 Rs./Hour EGC 1000 139 Rs./Hour JWC 1000 138 Rs./Hour JWC 1300 172 Rs./Hour

Note : * Rs. 1 Lac = Rs. 100,000

Benchmark rate of return has been calculated as weighted average cost of total capital employed for the project activity. Bench mark return is 12.20% whereas return from project is only 7.86% which is less than required return. With the help of CDM revenues Project IRR crosses Benchmark IRR making project financially viable. Below table depicts the sensitivity analysis of IRR with respect to PLF.


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Sensitivity Analysis

Variation in PLF Effective PLF Project IRR WACC Project IRR with CDM Revenue

Projected PLF 60 % 7.86 % 12.20% 10.03 % +10% PLF 66 % 10.69 % 12.20% 13.00 % - 10% PLF 54 % 4.53 % 12.20% 6.44 %

__________________________________________________________________________________

1: Effective PLF = Power Plant PLF (0.75) x Plant Utilization Factor (0.8) = 0.60 Where: Plant utilization factor indicates the estimated number of operation hours plant will be available in a year and power plant PLF indicates the average loading on the plant during operative hours.

Technological barriers project activity

The application of natural gas based packaged cogeneration system by Quippo is first of this kind in the country. Although cogeneration systems have been applied to a limited extent in the country but the application of third party owned natural gas based co-generation system is rare. The low market share of cogeneration systems compared to the existing power generation capacity and the gap between harnessed and potential capacities strongly suggest the insufficient infrastructure to support installation and maintenance of the system acting as a technological barrier to the project proponent. A study has been carried out by Ministry of Non-conventional Energy Sources (MNES) depicting the total potential of cogeneration in the country which mentions that the industries have the potential to produce 15,000 MW through co-generation while industrial and urban wastes could generate about 2700 MW which would increase to 7000 MW by 2017. (http://www.mnes.nic.in/)As per the MNES annual report the total potential of the cogeneration being harnessed is just above three percent. Hence the above facts and figures suggest the institutional barriers faced by the industry in adaptation of such technological barriers.

Regulatory barrier to project activity

Although the electricity act and the national electricity policy de-license the incorporation of cogeneration system in the industrial facility but there is no such preferential tariff initiative, financing or fiscal benefit compared to other generators. Indian Renewable Energy Development Agency (IREDA), a premier financing institute in the country that promotes and finance for renewable project provides lower interest loan only for biomass based cogeneration system but since the cogeneration project at the industrial facility is a fossil fuel based system it is being deprived from receipt of financial benefit compared to other electricity generation system from renewable source. This undermines the financial viability of cogeneration investment. In this context it is worthwhile to mention the financial barrier and other bottle necks which the industrial facility faces for gas procurement. There is huge disparity in the demand supply scenario of natural gas in this part of the country; moreover the gas price is soaring resulting in the project activity being non-viable without additional revenue sources. Hence revenue generated from the CDM activities would substantiate the viability of the project activity.


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Also, the fact that all industrial facilities have connections from the grid and have to pay minimum monthly demand charges (even if no power purchase is made) acts like a barrier in the implementation of this project.

Additionally, certain state electricity boards (like Gujarat, Maharashtra state) are also charging an additional levy called as Electricity Duty of about 0.4 Rs / Unit of electricity generated by Quippo power plants, which also acts like an additional burden on the user. This extra payment to state electricity board acts as great barrier in the implementation of the project, as overall energy cost to customer goes up about 10 - 15 %. Electricity duty along with VAT makes more than l 10 % of landed cost of power to the end user. Hence the project activity faces regulatory barriers in getting operating clearance from state electricity board authority.

VAT draw back Natural Gas purchase for Power Generation

Unlike natural gas used for process heating applications, natural gas used for power generation does not allow user to get credits on taxes and levies. Natural gas consumed in boiler is eligible for VAT credit, however, if it is used for captive power generation, the VAT paid at the rate 15 % becomes cost to user and landed power cost to user increases making CPP operation further unviable.

Institutional barriers to ESCOs (Energy Service Company)

In package natural gas based power generation system institutional arrangement is totally different. Quippo has to invest and install the system at the user site and provide electricity and thermal energy to user. Quippo is also responsible for operation & maintenance of the system and continuous supply of energy to user where as in traditional approach industrial facilities used to generate captive power generation unit and after installation they were responsible for operation. The concept of ESCOs is not a widely spread concept in India like other developed nationes and is in nacent stage. These installations are a first attempt from Quippo as ESCO projects. So there is a lack of experience for Quippo and lack of acceptance from industrial user to this concept.


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Thus this new arrangement involves a significant institutional barrier.

Expected CDM revenue shall bring down users present energy cost per unit basis, additionally it will provide improved liquidity to Quippo to carry out its activities. These facts will immensely help to propagate ESCO concept in India on a larger scale making it as an acceptable solution. Energy rental offerings are additional in nature to normal buying this enhanced capacities shall lead to reduce CO2 emissions additionally mitigating global warming.

B.6. Emission reductions:

B.6.1. Explanation of methodological choices:

Baseline Emission Calculation

For the project activity displacing grid electricity the baseline emissions are determined based on the amount of grid electricity displaced by the project activity.

BEPY = EPY * EFGY

Where: BEPY is baseline emissions for the grid electricity displaced by the project in year y (t CO2e/year) EPY is the amount of grid electricity displaced by the project in year y (MWh) EFGY Emission factor of the grid (calculated in accordance with methodology AMS I.D (tCO2/MWh)

For the project activity displacing a captive steam/heat generation plant the baseline emissions are calculated based on the equivalent amount of fuel that would have been used in the absence of the project activity. The equivalent amount of fuel (in thermal unit) that would have been consumed by the captive steam generation plant in year is calculated as follow:

FCY = SPY / Y

FCY is equivalent amount of fuel that would have been consumed by the captive steam generation plant in year y (TJ) Y is efficiency of the displaced captive steam generation plant in year y which is chosen as 100% in accordance with guidance given in AMS II H. SPY Thermal energy delivery of the project activity (TJ) in year y

The amount of electricity consumed to operate the baseline chiller is calculated based on the displaced chillers Coefficient of Performance. The Coefficient of Performance is defined as chilling output per Electrical input.

EBC,Y = CP,Y / COP

Where: EBC,Y is the amount of electricity consumed to operate the baseline chiller in year y (MWh/year) COP The Coefficient of Performance of the displaced chiller (MWhth/MWh) which is chosen as 5.0. CP,Y is the cooling output of the baseline chiller in year y(MWhth/year)


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The baseline emissions associated with electricity consumed to operate the baseline chiller is calculated as follow:

BEBC,Y = EBC,Y * EFGY

The total cooling output of the project activity per year in MJ is calculated as follow:

CP,Y = m * Cp * T

m is the chilled water mass flow-rate in year y (tonnes/year) C is specific heat capacity of water (MJ/tonnes C) (liquid water 4.2 MJ/t C) T is differential temperature of incoming and outgoing water (C)

Project Emission Calculation

Project emission due to use of fossil fuels and electricity by the CCHP units, including those to run auxiliary equipments will be calculated in accordance with the Tool to calculate project or leakage CO2 emissions from fossil fuel combustion as given in para 12 of approved small scale methodology AMS II H.

Project Emission is calculated on the basis of quantity of fossil fuel consumed. CO2 emission from combustion of Natural Gas in project scenario is calculated as follow:

PECCHP = FCCCHP * COEFNG

Where: PECCHP is emission due to combustion of natural gas in project scenario (tCO2 / year) FCCCHP is quantity of Natural Gas combusted in CCHP system (NM3/year) COEF is carbon dioxide emission coefficient of natural gas (tCO2/NM3)

COEFNG = NCVNG * EFNG Where: NCV is net calorific value of Natural Gas (TJ/NM3) EF is CO2 emission factor of natural gas as per IPCC default values (tCO2/TJ)

Leakage Emission Calculation

Project activity includes the installation of Greenfield projects and refrigerant used is pure water which is not having any GWP.

Emission Reduction Calculation

The emission reduction achieved by the project activity shall be calculated as the difference between the baseline emissions and the sum of the project emissions and leakage.


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B.6.2. Data and parameters that are available at validation:

Data / Parameter: EFNG Data unit: tCO2/TJ Description: Emission Factor of the fuel being used in the pre and post project activity Source of data used: IPCC Data 2006 Guidelines Value applied: For Natural Gas 56.1 Description of measurement methods and procedures actually applied :

Default values decided by Intergovernmental Panel on Climate Change

Any comment: Country Specific Value not Available

Data / Parameter: EFGY Data unit: tCO2/MWh Description: Emission factor of power generation in baseline scenario Source of data used: Official database for grid emission factor published by Central Electricity

Authority(CEA) Combined Margin Emission Factor = (0.5)*Operating Margin + (0.5)*Build Margin

Value applied: 0.805 Justification of the choice of data :

Grid Emission factor is calculated by CEA in accordance with AMS I D

Any comment:

Data / Parameter: EFFO Data unit: tCO2/TJ Description: CO2 emission factor of furnace oil which would have been consumed in

baseline scenario. Source of data used: IPCC Data -2006 Value applied: 77.4 Description of measurement methods and procedures actually applied :

Default values decided by Intergovernmental Panel on Climate Change

QC/QA procedure: Any comment: Country Specific values are not available

Data / Parameter: NCVNG Data unit: For Natural Gas - KCal/SCM Description: Net Calorific Value of Natural Gas used as fuel in project scenario Source of data used: Value Specified by the supplier of the fuel

IEDL MIDL SOPL RL MIL BIL Value applied: 8500 9000 8250 8650 8350 8350

Justification of the choice of data :

Generally, the facilities for determining the calorific value of gas fuel are not available with the production units. Further the use of calorific value as provided by the gas supplier is expected to be more reliable.


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Any comment:

Data / Parameter: COP Data unit: Fraction Description: Co-efficient of performance for baseline chiller Source of data used: Technical Details of chillers from chiller manufacturer Value applied: 5.00 Justification of the choice of data :

COP for the baseline chiller is taken for the chiller having capacity nearly same as in case of project scenario

Any comment:

Data / Parameter: SPY (Thermal Energy Produced by boiler ) Data unit: TJ/year Description: Amount of heat energy produced by waste heat boiler in form of steam Source of data used: Technical Specifications provided by manufacturer

1000PP 1300PP Value applied: 15.76 21.26

Justification for the choice of data:

Thermal output of the boiler used for ex ante emission reduction calculation is the out of the boiler at 75% loading of power plant.

Any comment:

Data / Parameter: Y

Data unit: Fraction Description: Efficiency of displaced captive steam generation system Source of data used: As per provisions given in paragraph 10 of AMS II H Value applied: 1.00 Justification of the choice of data :

Maximum efficiency of 100% is assumed out of three options given and which is most conservative for the purpose of ex ante emission reduction calculation.

Any comment:

B.6.3 Ex-ante calculation of emission reductions:

Baseline Emission for Power Generation Parameter Symbol Unit Formula Used Amount of grid electricity displaced by the project in year EPY MWh

Installed Capacity in MW*0.60*8760

Emission factor of the grid EFGY tCO2/MWh Constant Baseline emissions for the grid electricity displaced BEPY tCO2 EPY* EFGY


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Baseline Emission for Exhaust Gas Boiler Thermal energy delivery of the project activity SPY TJ

(Boiler capacity in GigaCal/Hr*0.60*8760)/1000

Efficiency of the displaced captive steam generation Y fraction Fixed Constant

Amount of fuel that would have been consumed by the captive steam generation plant FCY TJ SPY/ Y CO2 emission factor of furnace oil / Natural gas as per IPCC default values as applicable EFFO tCO2/TJ Constant Baseline emissions for captive steam generation plant BEHY tCO2 FCY* EFFO Baseline Emission for Vapour Absorption Chiller

Cooling output of the baseline chiller CP,Y MWhth (TR capacity of chiller*3.413*8760)/1000

Coefficient of Performance of the displaced chiller COP Fraction Fixed Constant Amount of electricity consumed to operate the baseline chiller EBC,Y MWh CP,Y/ COP Baseline emissions for chiller BECY tCO2 EBC,Y* EFGY Total Baseline Emission Total baseline emission from combined cooling heating and power(CCHP) system BECCHP tCO2 BEPY+ BEHY+ BECY Project Emission Quantity of Natural Gas combusted in CCHP system FCCCHP SCM Monitored CO2 emission coefficient of natural gas COEFNG tCO2/SCM NCVNG* EFNG Net calorific value of Natural Gas NCVNG TJ/SCM Monitored CO2 emission factor of Natural Gas as per IPCC default values EFNG tCO2/TJ Constant Emission due to combustion of natural gas in project scenario PECCHP tCO2 COEFNG* FCCCHP Leakage Emisssion Leakage emission from CCHP system LECCHP tCO2 Emission Reduction CO2 emission reduction from CCHP system ER tCO2 BECCHP - PECCHP LECCHP


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Detailed CER calculation is given in table below:

Total Emission reductions = 36168 tCO2/year


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B.6.4 Summary of the ex-ante estimation of emission reductions:

YEAR ESTIMATION OF ANNUAL EMISSION REDUCTION IN TONNES OF CO2EQ.

2009 36168 2010 36168 2011 36168 2012 36168 2013 36168 2014 36168 2015 36168 2016 36168 2017 36168 2018 36168 Total Estimated Reductions (tCO2eq.) 10 No. of Crediting Years 361680 Annual Average of Estimated Reductions over the Crediting Period

36168

B.7 Application of a monitoring methodology and description of the monitoring plan:

The monitoring is the part of baseline methodology. As explained earlier, the baseline methodology is applicable to the project activity and hence the monitoring protocol given in the methodology is applicable to the project activity.

In accordance with paragraph 16 of the approved methodology AMS II H, the monitoring shall consist of:

(a) Documenting of the technical specification of the captive equipment displaced or equipment which would otherwise have been built.

(b) The metering of electricity, cooling and steam outputs (net of internal consumption) generated by the CHP or CCHP utility and delivered to its users.

(i) The measurement of steam output is based on continuous monitoring of steam flow-rate, temperature and pressure.

(ii) The measurement of cooling output is based on continuous monitoring of chilled water flow-rate and the temperature difference between incoming and outgoing circulating water.

(c) The metering of fossil fuel and electricity used in the project activity (including those to run auxiliary equipment) shall be as mandated by Tool to calculate project or leakage CO2 emissions from fossil fuel combustion and in case of electricity use it shall be done as per the procedures of AMS I.D. In case natural gas is used for energy generation, the amount of natural gas used shall be monitored continuously using gas flow meters.


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(d) The parameters required to calculate the emission factor of the grid shall be monitored in accordance with the procedures of AMS I.D.

(e) Necessary parameters are monitored to demonstrate that the measures implemented by the project activity are limited to activities that results in additional steam/heat and/or cooling generation capacity of no more than 5% of the pre-project situation.

B.7.1 Data and parameters monitored:

Data / Parameter: EPY Data unit: MWh/year Description: Electric energy generated by captive power after deducting the auxiliary

power consumption Source of data used: Energy meter installed at power output of captive power plant Value applied: 68873 Description of measurement methods and procedures actually applied :

Net power generated in the power plant will be determined using an electronic energy meter installed at the outlet of the power plant. The meter used will be of integrator type. The reading of the meter will be noted in the beginning of every shift and at the end of the shift. The difference of the two readings will be taken as the power generated during the shift.

Any comment:

Data / Parameter: FCCCHP Data unit: SCM/year Description: Natural Gas used in the captive Natural gas based power plant for generating

Power Source of data used: Gas flow meter installed at the fuel supply inlet of the power plant Value applied: 18277501 Description of measurement methods and procedures actually applied :

The gas flow meter used will be integrator type, wherein the gas used for every shift of operation will be determined. The reading of the meter at the beginning of the shift and at the end of the shift will be noted. The difference between the two readings will be determined using the difference between the two readings.

Any comment: The use of mass flow meter is not suggested as the density of the gas may vary from time to time and the data of the calorific value from the gas supplier is available in volume terms. The values available from volumetric flow meter will be available as volume under ambient temperature and pressure.

Data / Parameter: CPY Data unit: MWhth/year Description: Amount of refrigeration effect produced Source of data used: Instantaneous reading from the PLC unit installed on the chiller Value applied: 9016.75 Description of measurement methods and procedures actually applied :

PLC unit will show the instantaneous value of TR generation based on formula: m*cp*T

TR generated will be converted into MWhth based on the formula: CPY = (TR*3.513)/1000

Any comment:


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Data / Parameter: ECB,Y Data unit: MWh/year Description: Power consumed to operate baseline chiller Source of data used: Computed Value Value applied: 1803.35 Description of Measurement Method and procedures actually applied :

ECB,Y = CPY/COP

Any comment:

Data / Parameter: SPY Data unit: TJ/year Description: Amount of heat energy produced by boiler in form of steam Source of data used: Volume flow meter and temperature and pressure recorder installed on the

steam outlet of boiler and a similar instrument installed at the inlet of the feed water to boiler.

Value applied: 196.12 Description of measurement methods and procedures actually applied :

Using the steam flow rate, temperature and pressure at outlet and inlet heat gain can be calculated using standard steam table and thermal energy produced by boiler can be calculated.

Any comment: Measurement of steam flow rate, temperature and pressure is a common practice in industries.

Data / Parameter: Y

Data unit: Fraction Description: Efficiency of displaced captive steam generation system Source of data used: Fixed value as per provisions given in paragraph 10 of AMS II H Value applied: 1.00 Justification of the choice of data :

Maximum efficiency of 100% is assumed out of three options given and which is most conservative for the purpose of ex ante emission reduction calculation.

Any comment:

Data / Parameter: FCY Data unit: TJ/year Description: Amount of fuel that would have been consumed by the captive steam

generation plant in baseline scenario. Source of data used: Computed Value Value applied: 196.12 Description of measurement methods and procedures actually applied :

Will be computed as: FCY = SPY/ Y

Any comment:


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Data / Parameter: EFGY Data unit: tCO2/MWh Description: Emission factor of power generation in baseline scenario Source of data used: Computed based on specific fuel consumption of baseline fuel, the

corresponding power generation and the carbon emission coefficient of the fuel/ incase of grid electricity as specified by central electricity authority

Value applied: 0.8050 Description of measurement methods and procedures actually applied :

Grid Emission Factor is calculated by CEA in accordance with AMS I D

QC/QA procedure: Any comment:

Data / Parameter: EFFO Data unit: tCO2/TJ Description: CO2 emission factor of furnace oil which would have been consumed in

baseline scenario. Source of data used: IPCC default emission factor for furnace oil Value applied: 77.4 Description of measurement methods and procedures actually applied :

Value from latest IPCC guidelines has to be used

QC/QA procedure: Any comment: Country Specific values are not available

Data / Parameter: EFNG Data unit: tCO2/TJ Description: Emission Factor of the fuel being used in the pre and post project activity Source of data used: Default values decided by Intergovernmental Panel on Climate Change Value applied: 56.1 Description of measurement methods and procedures actually applied :

Value from latest IPCC Guidelines has to be used

QC/QA procedure: Any comment: Country Specific Value not Available


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B.7.2 Description of the monitoring plan: >> The proposed CDM project leads to mitigation of GHG due to following two specific measures:

1. Replacement of grid power with power generated in captive natural gas based power generator 2. Waste heat utilization from the exhaust gases through exhaust gas boiler, exhaust gas chiller and

jacket water chiller. The monitoring of the emission reduction will be carried out by measuring the actual power generation, actual refrigeration generation and actual thermal energy generation in form of steam and the corresponding natural gas / power consumption. The fuel consumption for power generation can vary either because of variation in the efficiency of the power plant or because of the variation in the calorific value of the natural gas. Variation in the calorific value of the natural gas does not lead to variation in the emission coefficient (in terms of GHG emission per unit of power generated). However variation in the thermal efficiency of the power plant leads to variation in the emission coefficient. To account for the variations in the GHG emissions due to variation in thermal efficiency of the power plant, combination of the natural gas consumption and the computed value of emission coefficient of natural gas will be used. The value of the emission coefficient (in terms of emissions per NM3) will be determined using emission coefficient for natural gas and the actual calorific value of natural gas. For determining the refrigeration generated, flow rate of the chilled water and the temperature loss across the chilling unit is measured. There will be fluctuations of water temperature loss across the chilling unit. In order to take care of the fluctuations detailed record of the periodic readings will be maintained For determining the thermal energy output of boiler steam flow rate, temperature and pressure at inlet and outlet will be monitored. In order to take care of the fluctuation detailed record of periodic readings will be maintained. The proposed CDM project activity will be implemented at six different production facilities by Quippo located in the state of Gujarat and Uttar Pradesh. Quippo has designated a team for carrying out the monitoring of the operation of the project activity. The CDM team will be headed by a General Manager supported by two Senior Manager, Electrical and Mechanical field. The Senior Assistant Engineer, Electrical and Senior Assistant Engineer, Mechanical would monitor the day to day activities of the project activity and manage the lower hierarchical level resources responsible for recording the relevant monitoring data required for the purpose of estimation of emission reduction. The data recorded will be there by reported to Senior Assistant Engineer. The respective Senior Manager will be responsible for validating the data and presenting these reports to the, General Manager, Head of the Power Plant and the management on a periodic basis. The engineers of the team will be responsible to maintain, calibrate (when required) the all monitoring equipment they are also to report the Senior Manager on the recorded and monitored data time to time. Functional layout of the team is given in block diagram below:


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Data validation

Data Compilation

Quippos Internal Structure

Quippos External Structure

.8 Date of completion of the application of the baseline and monitoring methodology and the name of the responsible person(s)/entity(ies) >> Date of completion of the application of the baseline and monitoring methodology: 20/09/2008

Contact information of the person / entity responsible for the application of the baseline and monitoring methodology: Gensol Consultants Pvt. Ltd. SCO 11 (IInd Floor) Sector - 11, Panchkula, Haryana 134109.

The entity is not a project participant

General Manager

Senior Manager Electrical

Senior Manager Mechanical

Senior Assistant Engineer Electrical

Senior Assistant Engineer Mechanical

Data collection by field operator


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SECTION C. Duration of the project activity / crediting period

C.1 Duration of the project activity: Duration of proposed small scale project activity is 10 years.

C.1.1. Starting date of the project activity: Date of contract agreement between Quippo Energy Private Limited and their client is taken as the starting date of the project at different locations is. Starting dates at different locations are given in the table below:

Site Name IEDL, Ghaziabad

MDIL, Vadodara

SOPL, Jhagadia

Raymond Ltd,

Valsad

MIL, Vapi

BIL, Vapi

Start Date 18-Nov 2006

11-Sep 2007

02-Nov 2007

10-Dec 2007

14-April 2008

16-April 2008

CDM Project start date will be the earliest start date i.e. 18th Nov 2006

C.1.2. Expected operational lifetime of the project activity: 48000 Hours up to complete overhaul. After complete overhaul an additional full life term of 48000 Hours is reinstated. All the plants installed in this project are brand new.

Total operational lifetime of equipment is 96000 Hours, 48000 Hours original life and 48000 Hours restored life.

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

C.2.1. Renewable crediting period Not Applicable

C.2.1.1. Starting date of the first crediting period: >>

C.2.1.2. Length of the first crediting period: >>

C.2.2. Fixed crediting period:

C.2.2.1. Starting date: >> 01/08/2009 or date of registration of project with Executive Board whichever is later

C.2.2.2. Length: >> 10 Years


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SECTION D. Environmental impacts >>

D.1. If required by the host Party, documentation on the analysis of the environmental impacts of the project activity: >> The installation of natural gas based cogeneration system at the industrial facility has been done keeping in consideration of all the environmental norms of the country. The cogeneration system utilising natural gas replaces fuel oil based electricity generation with higher carbon and sulphur content.

Air pollution mitigation 1. Natural gas containing negligible amount of sulphur will reduce the level of SOx pollution to a considerable extent which was emitted in the pre project scenario from burning of the Fuel oil for electricity generation. 2. The project activity will also result in mitigation of emission of suspended particulate matter

D.2. If environmental impacts are considered significant by the project participants or the host Party, please provide conclusions and all references to support documentation of an environmental impact assessment undertaken in accordance with the procedures as required by the host Party: >> The State Pollution Control Board does not recommend any environmental impact assessment for this activity. The industrial facilities apply to the State Pollution Control Board and have been given required clearance.


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SECTION E. Stakeholders comments

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

Local Stakeholders Meeting for all six site locations included in the project activity was conducted individually. Details of the local stakeholders meeting are given in table below:

Company Name

IEDL MDIL SOPL RL MIL BIL

Date of Meeting

26/12/2007 28/12/2007 20/07/2008 12/03/20008 05/072008 05/07/2008

Mode of invitation

Official Invitation through Notice




Publishing of Notice in News Paper

Publishing of Notice in

News Paper

Representatives from Quippo, Consultant and respective companies along with local stakeholders were present during each meeting.

E.2. Summary of the comments received:

Project activity received has received positive comments from the stakeholders. Some of the commmets received for the project activity are listed below:

Reduction in emission will facilitate clean and healthy working environment.

Project activity will promote other user to cut down their carbon emission.

New skilled operators are also recruited for power plants and boiler.

Natural gas based system is much more advantageous over other options like diesel generators as carbon emission is reduced, fuel spillage and environment degradation is avoided.

This kind of project should be given financial incentive.

Details of stakeholders meeting are available in documented form and can be validated.

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

Project activity has not received any negative comments.


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Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY

(A)

Organization: Quippo Energy Private Limited. Street/P.O.Box: Plot # 427 / P, Mahagujarat Industrial Estate, Building: Sarkhej Bavla Highway City: Ahemedabad State/Region: Gujarat Postfix/ZIP: 382 213 Country: India Telephone: +91 2717 322 901 / 922 FAX: +91 2717 251 775 E-Mail: [email protected] URL: www.quippoworld.com Represented by: CDM Project Managers Title: Salutation: Mr. / Mr. Last Name: Landge / Patwa Middle Name: J. / G. First Name: Sanjay / Montu Department: Energy Rental Mobile: +91 9328895079 / +91 9377395065 Direct FAX: +91 2717 251 775 Direct tel: +91 2717 322 901 / 922 (Ext : 112 / 114 ) Personal E-Mail: [email protected] / [email protected]

(B) Organization: KfW Street/P.O.Box: Palmengartenstr. 5-9 Building: City: 60325, Frankfurt State/Region: Postfix/ZIP: Country: Germany Telephone: +49 69 7431 3717 FAX: +49 69 7431 4775 E-Mail: [email protected] URL: www.kfw.de/carbonfund Represented by: Title: Vice President Salutation: Ms. Last Name: Sittler Middle Name: First Name: Karin


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Department: KfW Carbon Fund Mobile: Direct FAX: +49 69 7431 4775 Direct tel: +49 69 7431 2980 Personal E-Mail:


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Annex 2

INFORMATION REGARDING PUBLIC FUNDING

NO ODA IS BEING USED IN THE PROJECT ACTOVITY


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Annex 3

BASELINE INFORMATION

Company (End user) Name

Power Heating and Cooling

International Electron Devices Ltd. Ghaziabad Plot NO. 609, Village- Chhapraula, Disst Gautam Budh Nagar 201009, U.P.

DG set - Fuel : HSD, NCV : 11200 kCal/Kg Density : 0.88 Kg / Ltr with back up from Grid (North region)

Heating : Gas fired Boiler NCV : 8500 kCal / Sm3 Cooling : N.A

Mayur Dye-Chem Intermediates Ltd. Vadodara. Unit III, Survey No. 327 to 334, Village Karkhadi, Ta. Padra, Distt Vadodara, Gajarat

Stoic Engines (450 KWe) NCV : 9000 kCal / Sm3 + Grid Power (300 kWe) ( Western India grid Gujarat state)

Cooling : Electric reciprocating chillers. Heating : N.A

Star Oxochem Pvt. Ltd., Jhagadia Plot No. 756/10 A&B, Mega Ind. Estate, Jaghadia- 393110, Disst Bharuch, Gujarat

DG set Fuel : HSD NCV : 11200 kCal/Kg Density : 0.88 Kg / Ltr Note : No grid connection

Heating : Gas fired Boiler NCV : 8250 kCal / Sm3 Cooling : N.A

Raymond Limited, Valsad NH 8, Khadki Udwada Tal Pardi, Valsad 396185, Gujarat

Grid Power ( Western India grid Gujarat state) + DG set back-up

Heating : Steam : Gas Fired Boiler Hot Water : Steam from gas fired boiler NCV : 8650 kCal / Sm3 Cooling : N.A

Micro Inks Ltd., Vapi Plot No. 808/E, 305/6/7, GIDC, Vapi 396 195. Gujarat

CPP, Fuel : Heavy Fuel Oil NCV : 9650 kCal / Kg Density : 0.9 kg / Ltrs ( Furnace Oil ) With DG set back-up

Heating : HFO Fired Boiler NCV : 9650 kCal / Kg Density : 0.9 kg / Ltrs ( Furnace Oil ) Cooling : Not Applicable

Bilag Industries Ltd., Vapi Plot No. 306 / 3, II Phase, GIDC, Vapi 396 195.306 / 3, II Phase, GIDC, Vapi 396 195. Gujarat

CPP, Fuel : Heavy Fuel Oil NCV : 9650 kCal / Kg Density : 0.9 kg / Ltrs ( Furnace Oil ) With DG set back-up

Heating : HFO Fired Boiler NCV : 9650 kCal / Kg Density : 0.9 kg / Ltrs ( Furnace Oil ) Cooling : Electric reciprocating chillers. Specific Fuel Consumption : 0.7 TR / TR


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Annex 4

MONITORING INFORMATION

A Power Pack INPUT Natural Gas Critical measurement Measuring Instrument

Specifications Make : Emersion / Krohne Marshal Type : Electronic / Vortex type gas flow mete

Least Count : Digital LCD Indication up to 2 decimals Range : 0 to 500 SCM / Hr

Unit : SCM / Hr Calibration Schedule : Every Year Method of calibration At site / Laboratory calibration of transmitter by OEM. Contingency in case of

failure Gas supplier company meter reading shall be construed as back up reading.

OUTPUT Electricity Gross generation meter Critical measurement / Auxiliary consumption meter Non-critical measurement

Measuring Instrument Specifications

Make : Trinity (Gross generation meter) / Type : Electronic digital energy meter

Least Count : 1 kWh Range : 0 10000000 Units Accuracy : Class 0.5

Unit : kWh Calibration Schedule : Every Year Method of calibration Laboratory calibration of Energy meter by third party. Contingency in case of

failure In case, Power Pack gross power generation meter fails, the same shall be replaced or repaired at the earliest opportunity, however it is mandatory in Gujarat State that an additional gross power generation meter is always installed on each Power Pack by end user which is sealed by (Gujarat) State Electricity Board Authority to monitor the unit generation on which electricity duty to be paid. During such failures final report shall be generated based on user meter (sealed by SEB inspector).

B Heat Recovery Boiler INPUT Feed Water and Blow down / Drain Non Critical measurement Measuring Instrument

Specifications Make : Boiler feed water tank level indicator Type : Level Indicator

Least Count : 1 Ltr Range : Not applicable

Unit : Ltrs per Hours Calibration Schedule : Non critical measurement Method of calibration Measuring actual flow in a measuring bucket Contingency in case of

failure Non critical measurement to be maintained for cross check with final steam generation meter reading.

OUTPUT Steam Critical measurement Measuring Instrument

Specifications Make : Emerson / Krohne Marshal Type : DP + Transmitter / Vortex type flow meter


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Least Count : Digital LCD Indication up to 2 decimals Range : 0 to 2000 Kg / Hr

Unit : Kg / Hr Calibration Schedule : Every Year Method of calibration At site / Laboratory calibration of transmitter by OEM. Contingency in case of

Failure In case steam flow-meter fails the same shall be repaired at the earliest opportunity, however feed water consumption shall be monitored critically for said period. Historical data base and % Power pack loading shall be used to arrive at derived flow rate.

B Heat Recovery Absorption Chiller INPUT / OUTPUT Chiller Capacity Measuring Instrument

Specifications Make : Thermax Chiller Siemens PLC Type : Digital

Least Count : 1 M3 / Hr Range : As applicable

Unit : M3 / Hr Calibration Schedule : Every Year Method of calibration Not Applicable Contingency in case of

failure Chiller output capacity is indicated by PLC panel based on constant chilled water flow rate and variable inlet / outlet chilled water temperature across chillers. In case, PT 100 type temperature indicators fail to measure right temperature then mercury type temperature indicators shall be used to measure the temperature loss across chillers and capacity shall be calculated by capacity calculation formula.

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qiel pdd

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