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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03

CDM – Executive Board page 1

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

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




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 <http://cdm.unfccc.int/Reference/Documents>.

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.




SECTION A. General description of small-scale project activity A.1 Title of the small-scale project activity: >> Hot air generation using renewable biomass fuel for spray drying and vertical drying application at H.&R.

Johnson (India) Limited, Dewas, Madhya Pradesh.

Version 01

25/02/2007

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

The project activity is implemented at H.&R. Johnson (India) Limited, Dewas (hereinafter called HRJD)

who manufacture ceramic & vitrified tiles extensively used in residential and industrial applications. The

facility is accredited with ISO 9000, ISO 14000 and OHSAS 18000 certifications.

The purpose of project activity primarily aims to substitute fossil fuel by renewable biomass to generate

thermal energy (Hot air). Hot air generated will be utilized in ceramic dust production in spray dryer and

drying of tiles in vertical dryers. HRJD has tied up with local biomass suppliers (which include farmers

and traders) to meet the annual requirement. The bundled project activities are an effort to replace

consumption of fossil fuel and contribute to GHG emission reduction. The measure implemented is step

towards sustainable development.

The GHG abatement project developed is a voluntary effort taken by HRJD under Kyoto Protocol (Clean

Development Mechanism – CDM). Under Kyoto protocol a CDM project activity taken has to

demonstrate sustainable development through Social, Economic, Environment and Technology

indicators. The project activity contribution towards each indicator above mentioned is explained briefly

below in sustainable development indicator section

Sustainable Development Indicators

1. Social well being:

The project activity involves measures which provide additional revenue generation which is envisaged to

improve the social condition in the rural area. Therefore the project activity is a step towards social

development.

2. Economical well being:




The project has opened up business opportunities for direct and indirect businesses, thus promoting

economical well being in the region.

3. Environmental well being:

The project activity avoids fossil fuel with renewable biomass residues which are clean, green and a zero

carbon fuel. By replacing fossil fuels with biomass, the SO2 emissions will be significantly avoided as

biomass does not contain high percentage of sulphur. Thus the project is an environmentally friendly

initiative.

4. Technological well being:

The project technology and the measure used for generation hot air. Some of benefits of this technology

implemented in the project activity are:

• Complete combustion.

• Local technological know-how.

• Environmentally friendly technology.

Therefore project activity is an environment friendly and GHG emission reduction measure which will

help “Host Country” India to fulfill its goals of promoting sustainable development.

A.3. Project participants: >> 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 project participant (Yes/No)

India (Host) H.& R. Johnson (India) Limited, Dewas

(Private entity)

No

A.4. Technical description of the small-scale project activity: A.4.1. Location of the small-scale project activity: >> India A.4.1.1. Host Party(ies): >> India




A.4.1.2. Region/State/Province etc.: >> Madhya Pradesh A.4.1.3. City/Town/Community etc: >> Dewas A.4.1.4. Details of physical location, including information allowing the unique identification of this small-scale project activity : >> The project activity is based at the Dewas plant of HRJ. The plant is situated a few kilometres from the

city of Dewas on the Agra-Bombay highway. The exact co-ordinates of the site are - 22° 56' 12"

North and 76° 1' 57" East. The plant is well connected by rail, road and air. The nearest airport to the

plant is around 30 kms away in the city of Indore while the nearest railway station is at Dewas which is

around 5 kms from the plant.

H.&R.Johnson (India) Limited, Dewas

Project Co-ordinates: Latitude - 22°56'12" North Longitude - 76°1'57" East




A.4.2. Type and category(ies) and technology/measure of the small-scale project activity: >> As per ‘Indicative simplified baseline and monitoring methodologies for selected small-scale CDM

project activity categories’, the project activity falls under

Main Category: Type I – Renewable Energy Projects

Sub Category: “C” Thermal energy for the user

The project activity meets all the applicability criteria of small-scale CDM project activity category under

Type-I: Renewable Energy Projects (C. Thermal energy for the user) / version 09, 23 December 2006 of

the indicative simplified baseline and monitoring methodologies for selected small-scale CDM project

activity categories

(Category I.C. “comprises renewable energy technologies that supply individual households or users with

thermal energy that displaces fossil fuels. Examples include solar thermal water heaters and dryers, solar

cookers, energy derived from renewable biomass for water heating, space heating, or drying, and other

technologies that provide thermal energy that displaces fossil fuel. Biomass-based co-generating systems

that produce heat and electricity for use on-site are included in this category.”).

The project technology is provided by M/s Radhe Renewable Energy Associates. The capacity of FBC

system implemented for hot air generation through combustion of biomass fuel is of 2.9 MWthermal. The

technology can utilize different type of renewable biomass other than soya husk. The system comprises of

biomass preparation (fuel crusher/thresher, bucket elevator), a combustion unit (fuel hopper, Combustion

fans, fuel feeder, combustion chamber) and air pollution abatement devices (settling chamber, cyclone,

rotary valves, gas duct line, control panel etc). Biomass is shred and then fed to the combustion zone with

additional air to maintain fluidization of bed & biomass to ensure complete combustion. Hot air generated

is passed and cleaned through air pollution control devices. This avoids interference of particulate matter

in spray dryer during product formation. Ash formed during combustion is used for land filling in the

near by area and sometimes it is given to local brick manufacturer as per their requirement.

The technology implemented is environmentally safe. Process flow diagram of the technology

implemented is presented in Fig.A.4.2.




Fig.A.4.2(a): Process Flow Diagram of Hot Air Generation for Spray Dryer system

Raw Material

Slip House

FBC (Hot Air

Generator)

C C

ID Fan

FD F

an

Wet Scrubber

To ambient

Settler

Cyclones

Hot

air

Spray Dryer

Press Shop

Fuel Hopper

Renewable Biomass




Fig.A.4.2(b): Process Flow Diagram of Hot Air Generation for Vertical Dryer system

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

Annual estimation of emission reductions in (tonnes of CO2 e)

Years Activity-1

(Direct Hot air in

Spray Dryer)

Activity-2

(Indirect Hot air in Vertical

Dryer)

2007-08 6,756 3,967

2008-09 6,756 3,967 2009-10 6,756 3,967 2010-11 6,756 3,967 2011-12 6,756 3,967

FBC (Hot Air

Generator)

FD F

an

Settler

Fuel Hopper

Renewable Biomass

Heat Exchanger

Hot Flue Gas

Clean Air

Ver

tical

Dry

er

Dried Tiles

Wet Tiles




2012-13 6,756 3,967 2013-14 6,756 3,967 2014-15 6,756 3,967 2015-16 6,756 3,967 2016-17 6,756 3,967

Total Estimated Reductions (tCO2 e)

67,560 39,670

Total no of crediting period 10 years Annual average over the

crediting period of estimated reduction (tCO2 e)

6,756 3,967

A.4.4. Public funding of the small-scale project activity: >> No public funding is available in this project activity from Annex 1, countries of UNFCCC. A.4.5. Confirmation that the small-scale project activity is not a debundled component of a large scale project activity: >> According to appendix C of simplified modalities and procedures for small-scale CDM project activities,

‘de-bundling’ is defined as the fragmentation of a large project activity into smaller parts. A small-scale

project activity that is part of a large project activity is not eligible to use the simplified modalities and

procedures for small-scale CDM project activities.

According to paragraph 2 of appendix C1

A proposed small-scale project activity shall be deemed to be a de-bundled component of a large project

activity if there is a registered small-scale CDM project activity or an application to register another

small-scale CDM project activity:

With the same project participants;

In the same project category and technology/measure;

Registered within the previous 2 years; and

Whose project boundary is within 1 km of the project boundary of the proposed small- scale

activity at the closest point

1 Appendix C to the simplified M&P for the small-scale CDM project activities, http://cdm.unfccc.int/Projects/pac/ssclistmeth.pdf




According to above-mentioned points of de-bundling, H.& R. Johnson (India) Limited, Dewas has not

carried out any CDM project activity before the implementation of small scale project activity. Besides

this there are no CDM projects by HRJD that have been registered in last two years. Also there are no

similar projects in the vicinity or within 1 km radius of the project boundary. Moreover the

technology/measure in the project activities is different. In this way the project activity is not a part of any

of the above points mentioned in Appendix C, therefore can be considered as a small scale CDM project

activity.




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: >> Baseline Methodology: I.C –“Thermal energy for the user” in Appendix B of the Simplified Modalities

and Procedures for Small-Scale CDM project activities.

Reference: Appendix B of the Simplified Modalities and Procedures for Small-Scale CDM project

activities (AMS.I.C / Version 09, 23 December 2006).

B.2 Justification of the choice of the project category: >> Category I.C. “comprises renewable energy technologies that supply individual households or users with

thermal energy that displaces fossil fuels” qualifies for project activity, a renewable energy technology

which provides thermal energy (Hot air) and displaces fossil fuel usage. Apart from the key applicability

criteria stated above, the project activity is required to meet the following conditions in order to apply the

baseline methodology. Justification to demonstrate that the project activity qualifies as a small-scale

project activity and will remain under the limits of small-scale project activity during every year of the

crediting period are given below:

Criteria 1: Where generation capacity is specified by the manufacturer, it shall be less than 15MW.

Justification 1: The project activity of HRJK is thermal energy (hot air) generation using renewable

biomass, this qualifies the applicability criteria.

Criteria 2: For co-generation systems and/or co-fired systems to qualify under this category, the energy

output shall not exceed 45 MWthermal. E.g., for a biomass based co-generating system the capacity for all

the boilers affected by the project activity combined shall not exceed 45 MWthermal. In the case of the co-

fired system the installed capacity (specified for fuel use) for each boiler affected by the project activity

combined shall not exceed 45 MWthermal.

Justification 2: The energy output from the project activity does not exceed 45MWthermal.

As stated above, the project activity under consideration meets applicability conditions of the Category

I.C. This justifies the appropriateness of the choice of the methodology in view of the project activity and

its certainty in leading to a transparent and conservative estimate of the emission reductions directly

attributed to the project activity. Therefore the baseline and emission reductions calculations from the

project would be based on paragraph 6 of I.C. of Appendix B. The monitoring methodology would be

based on the guidance provided in the paragraph 11 (a) of I.C. of Appendix B.




B.3. Description of the project boundary: >> As per methodology AMS I.C, a boundary is defined as a physical, geographical site where the fuel

combustion affected by the avoidance of fossil fuel measure occurs. The boundary encompasses the hot

air generation systems using clean fuel substituting fossil fuel. The end product produced is Ceramic

powder and finished tiles. Biomass storage and conveying facility is considered as integral part of the

boundary. Storage of biomass is a well managed activity and no emissions are envisaged because of the

short duration storage. NG supply facility is outside the project boundary.

Figure B.3: Project boundary of the project activities

HA

G

(FB

C sy

stem

)

Renewable Biomass storage

Powder (Dust) to tile

manufacturing

Activity -1-Spray Dryer

Spray Dryer

Hot

A

ir

Ver

tical

Dry

er

Wet Tiles IN

Dry Tiles OUT

Activity-2- Vertical Dryer

Project Boundary

HA

G

(FB

C sy

stem

)

Renewable Biomass storage

Hot Air

Biomass Supplier




B.4. Description of baseline and its development: >> As per small scale methodology AMS.I.C applied as per paragraph 6 “baseline for renewable energy

technologies that displace technologies using fossil fuels, the simplified baseline is the fuel consumption

of the technologies that would have been used in the absence of the project activity times an emission

coefficient for the fossil fuel displaced. IPCC default values for emission coefficients may be used”

HRJD has identified plausible project options for baseline scenario, which include all possible courses of

actions that could be adopted in order to generate hot air. Further an assessment was conducted for each

alternative to project activity with respect to the risks/barriers associated to implementation and their hot

air generation costs, in order to arrive at the baseline scenario i.e. the most likely future scenario in

absence of the project activity. The performance of the project activity and its associated emission

reductions were evaluated with respect to the baseline scenario.

HRJD has identified the following plausible alternatives to meet hot air requirement. These alternatives

are illustrated below:

Alternative 1- Hot air generation using Furnace Oil

In absence of CDM project activity, HRJD could have generated hot air with Furnace Oil as fuel meet its

requirement. This alternative is in compliance with all applicable legal and regulatory requirements and

may be a part of the baseline. However this alternative would not be a credible and realistic alternative

available with HRJD in absence of project activity due to high unit cost of hot air generation.

Therefore the Alternative 1 may be excluded from further consideration

Alternative 2- Hot air generation using LPG

In absence of CDM project activity, HRJD could have generated hot air with LPG. This alternative is in

compliance with all applicable legal and regulatory requirements and may be a part of the baseline.

Therefore the Alternative 2. is considered further for arriving at the baseline scenario.

Alternative 3- Hot air generation using Coal Dust

In absence of CDM project activity, HRJD could have generated hot air with coal as fuel to meet its


may be a part of the baseline.

Therefore the Alternative 3 is considered further for arriving at the baseline scenario.




Alternative 4- Hot air generation using Natural gas

In absence of CDM project activity, HRJD could have generated hot air with Natural gas as fuel, to meet

its requirement. This alternative is in compliance with all applicable legal and regulatory requirements.

However this alternative would not be a credible and realistic alternative because of location disadvantage

Therefore the Alternative 4 may be excluded from further consideration.

Alternative 5- Hot air generation using Renewable Biomass

In absence of CDM project activity, HRJD could have generated hot air with biomass as fuel to meet its


may be a part of the baseline.

Therefore the Alternative 5 is considered further for arriving at the baseline scenario.




Table B.4.a: Assessment of all the real and credible alternatives with bundled HRJD in absence of the project activity

Parameters Alternative 1.

LPG Alternative 3.

Coal Alternative 5.

Renewable Biomass Hot air Generation Cost Activity 1 - INR.565/MT

Activity 2 – INR 642/MT

Activity 1 - INR.469/MT

Activity 2 – INR 538/MT

Activity 1 - INR.483/MT

Activity 2 - INR.546/MT Other Considerations Non Non Renewable energy (biomass) in India

is an un-organized sector with no

proper mechanisms to make sure its

sustained availability and price.

Factors that govern the biomass its

availability are:

1. Climate: Uncertainty exists due to

annual rainfall in that particular

area.

2. Pricing: No fixed pricing

mechanism and therefore

fluctuates in wide range.

The price trend assessment reveals that there is an upward trend in the pricing. Under these circumstances HRJD has taken a challenge to invest in the project activity and use biomass residues to meet its hot air




requirement. Conclusion Not a Baseline scenario This alternative option is the Baseline

Scenario Hence without the CDM revenue, this

alternative was not a feasible option

for HRJD to adopt. This alternative is

additional since the anthropogenic

emissions of greenhouse gases by

sources are reduced below those that

would have occurred in the absence of

the registered CDM project activity.

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

17

Estimation of emission reductions resulting from the project activity

As per the methodology, the emission reductions resulting from the project activity is calculated as a

difference between the baseline emissions and the project emissions. The methodology does not require

the project proponent to consider any emission due to leakage. The baseline emissions and the project

emissions are quantified as per the guidelines given in the methodology:

Baseline Emissions

The baseline emissions are calculated based on the most appropriate Baseline scenario would have been

coal in absence of project activity. IPCC default values for emission co-efficient have been used to

calculate Baseline emissions. All baseline calculations are as per AMS I.C/version 09. Please refer to

Section B.6.3 for baseline estimation calculation.

Project Emissions

With the implementation of project activity same amount of hot air would be generated using biomass

residues. As per the methodology, project emissions are zero as the project utilizes biomass residues

renewable in nature. Therefore there is no project emission resulting from the project activity.

Table B.4.b - Tabular representation of key information and data used to establish the baseline

scenario and project activity:

No Key information and data used Source of information/ data

Baseline 1 Quantity of fossil fuel Plant 2 NCV of fossil fuel Plant 3 Emission factor of fossil fuel IPCC guidelines 4 Oxidation factor of fossil fuel IPCC guidelines

Project Activity – 1 & 2 1 Quantity of biomass Plant 2 NCV of biomass Plant


18

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: >> As per small scale methodology AMS.I.C applied as per paragraph 6 “baseline for renewable energy

technologies that displace technologies using fossil fuels, the simplified baseline is the fuel consumption

of the technologies that would have been used in the absence of the project activity times an emission

coefficient for the fossil fuel displaced. IPCC default values for emission coefficients may be used”

In accordance with paragraph 6 of the simplified modalities and procedures for small-scale CDM project

activities, a simplified baseline and monitoring methodology listed in Appendix B may be used for a

small-scale CDM project activity if project participants are able to demonstrate to a designated

operational entity that the project activity would otherwise not be implemented due to the existence of

one or more barrier(s) listed in Attachment A of Appendix. B. These barriers are:

Technological barrier

Financial barrier

Barrier due to prevailing practice

Other barriers

The main driving force to this ‘Climate change initiative’ is: - substitution fossil fuel quantities on

account of generation of thermal energy with renewable biomass. However, the project proponent was

aware of the various barriers associated to project implementation. But it is realized that the availability of

carbon financing against a sale consideration of carbon credits generated due to project activity would

help to overcome these barriers. Some of the key barriers are discussed below:

Hot air generation using Biomass

Technological barrier:

HRJD even before the implementation of the project activity had anticipated hurdles that would delay or

possibly restrict the biomass HAG implementation. Some of the barriers technical in nature are

mentioned, which were faced during the implementation process.

a) Clinker Formation: Biomass has low density. As a result of this the ash generated during biomass

burnings has low density due to which it has a tendency to adhere in the combustion chamber,

thereby creating clinker. This has led to several shut down which has caused production losses.

This also invite for increase in operation and maintenance.


19

b) Air pollution equipment blockage: The biomass ash being low density gets clogged in the air

pollution control devises which result additional downtime, production losses and reduces

efficiency in operation.

c) Blocking of Primary Air Lines: During rainy season the biomass gets wet, it blocks the Primary

Air lines at the time of feeding and thereby the plant efficiency and profitability is badly affected.

d) Synchronising of HAG: The FBC technology works on the suction of the main fan of the spray

dryer. This puts the spray dryer and vertical dryer under high vacuum and disturbs the slip

spraying pattern. This resulted in wastages and poor quality product. This was a important

challenge faced by HRJD.

e) Production Quality: With best possible control Un-burnt fuel ingresses with the ceramic powder

and is burned-out in the subsequent firing process. This would create severe and irreparable

defects in the finished ceramic tile. This was biggest concern envisaged during the

implementation of the project activity.

Uncertainties in biomass:

Calorific value of biomass used for hot air generation is lower than that of fossil fuel. Because of this

Annual quantum of biomass that is required to procure becomes very high. It becomes very difficult to

arrange biomass in such great quantum throughout the year on continuous basis because of price

escalation and space requirement.

Investment Barriers:

Levelized cost comparison analysis

We have considered levelized power generation cost basis to prove the financial barrier with hot air

generation using FO or LPG, Coal and renewable biomass. A levelized cost analysis includes variable

cost component and fixed cost components.

Source Unit Cost (INR/MT)

Alternative 1 Hot Air generation using fossil fuel (FO or LDO)

Activity 1 - Direct HAG 565 Activity 2 - Indirect HAG 642 Alternative 2 Hot Air generation using Coal dust

Activity 1 - Direct HAG 469 Activity 2 - Indirect HAG 538 Alternative 3


20

Hot Air generation using Renewable biomass Activity 1 - Direct HAG 483 Activity 2 - Indirect HAG 546

The levelized cost analysis of the above alternatives, indicate that the energy generation cost in

Alternative 3 is higher than Alternative 2. Even in this scenario both projects have opted biomass based

hot air generation at higher operating unit cost.

Other Barriers:

In addition to all the barriers mentioned above, project proponent would also be facing the following

barriers once the project activity is implemented

• Biomass has low specific gravity which requires proper handling and storage procedures of Soya

husk at project site. The specific gravity of biomass being low, it requires a larger stocking area.

This has increased site development cost by a significant amount.

• Collection and Transportation of biomass: The project proponent had to develop an infrastructure

in terms of manpower and financial resources, in order to ensure continuous fuel supply. This is a

daunting task for the project proponent since one single supplier cannot supply the quantity of

fuel required for the hot air generation requirement. This demand for setting up a team of farmers

who supply biomass on regular basis to HRJD for its yearly requirement. Carbon benefits will

help project proponent develop a robust Fuel Collection System.

It has been clearly established from the above discussion that the project activity faces several barriers in

its implementation and successful operation. Some of these barriers have the potential to even disrupt the

operation of the biomass based hot air generation thereby severely affecting the economics of the project

activity. The management of project proponent considered all risk aspects associated with the

implementation of the project activity during the project inception.


21

B.6. Emission reductions: >>

B.6.1. Explanation of methodological choices: >> The procedure followed for estimating the emissions reductions from this project activity during the crediting period are as per the following steps which

corresponds with AMS I.C / version 09, 23 December 2006.

Steps Description Equation Used Methodological Choices 1. Procedure followed

for calculation baseline emissions (BE,y)

The baseline emissions are calculated as per biomass substituted. The equation is represented as :

=)(BEEmissionsBaseline

⎥⎦⎤

⎢⎣⎡

fffftiledust OFxxEFxnconsumptiocoalSpecificxQorQ1244

Baseline Emissions Activity 1 – 6,808 tCO2 e & Activity 2 – 4,018 tCO2 e

The baseline emissions will be calculated on the basis para 6. of AMS I.C which states the fuel consumption of the technology that would have been used in absence of the project activity times an emission factor of fossil fuel displaced. IPCC emission factor is used in calculation.

2. Procedure followed for estimating emissions from project activity (PE,y)

As the project activity involves usage of renewable biomass for generation of hot air. As per UNFCCC if a project activity uses renewable biomass is considered carbon neutral and emits no GHG emissions ∴Project Emissions = 0 tCO2 e

Project Emission are Zero

3. Procedure followed for estimating leakage (L,y)

The formula used to calculate leakage emissions is given below:

MCECCDNDQ

Lt

ffvnypbioy =,

∴Leakages = 52 tCO2 e

The emission factor for transport fuel is taken from IPPC published data. The distance and efficiency figures of the vehicle are taken from transport agency.

4. Procedure followed for calculating Emission Reductions (ER,y)

The equation used to calculate emission reductions is yyyy LPEBEER ,,,, −−=

-


22

Emission Reduction Activity 1 – 6,756 tCO2 e & Activity 2 – 3,967 tCO2 e


23

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

Data / Parameter: NCVff Data unit: Kcal/kg Description: Net calorific Value of fossil fuel Source of data used: Plant Value applied: 4000 Justification of the choice of data or description of measurement methods and procedures actually applied :

NCV for biomass fuel is estimated (E) parameter Measurement method: Govt approved method Procedure: Laboratory analysis of NCV for biomass fuel will be carried out once in three months

Any comment: Data will be kept for crediting period + 2 years.

Data / Parameter: EF,ff Data unit: tCO2/TJ Description: IPCC Emission Factor of fossil fuel Source of data used: IPCC Value applied: 96.1 Justification of the choice of data or description of measurement methods and procedures actually applied :

The value applied is taken from Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories: Workbook.

Any comment: Data will be kept for crediting period + 2 years.

Data / Parameter: OX,ff Data unit: - Description: IPCC Oxidation factor of fossil fuel Source of data used: IPCC Value applied: 0.98 Justification of the choice of data or description of measurement methods and procedures actually applied :

The value applied is taken from Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories: Workbook.

Any comment: Data will be kept for crediting period + 2 years. B.6.3 Ex-ante calculation of emission reductions: >>

Baseline Calculations

BASELINE CALCULATION FOR HR JOHNSON, DEWAS - BIOMASS BASED DIRECT HOT AIR GENERATION PROJECT TO SPRAY DRYER

S.No Description Units

1 Quantity of dust produced MT 35981


24

2 Specific coal consumption per unit dust production MT coal/MT

of dust 0.12

3 Quantity of coal that would have been utlized in absence of project activity per year MT 4318

4 Net calorific value of coal kcal/kg 4000 5 Total energy from coal TJ 72.310 6 Emission factor tC/TJ 26.2 tCO2/TJ 96.07 7 Oxidation Factor 0.980

8 COEF of coal tCO2/t of

coal 1.577 Emissions from coal avoided tCO2 6,808

BASELINE CALCULATION FOR HR JOHNSON, DEWAS - BIOMASS BASED INDIRECT HOT AIR GENERATION PROJECT FOR VERTICAL DRYER

S.No Description Units

1 Annual Tile manufactured Sq.M 1370281 2 Density of Tile manufactured MT/Sq.M 0.022 3 Annual Tile Dried MT 30146

4 Specific coal dust consumption per unit tile dried MT coal/MT

of tile 0.085

5 Quantity of coal that would have been utlized in absence of project activity per year MT 2549

6 Net calorific value of coal dust kcal/kg 4000 7 Total energy from coal dust TJ 42.684 8 Emission factor tC/TJ 26.2 tCO2/TJ 96.07 9 Oxidation Factor 0.980 10 COEF of coal dust tCO2/t of coal 1.577 Annual Emissions from coal avoided tCO2 4,018

Leakage Calculations

S.No Leakage Calculation Units 1 Average daily biomass input MT 15 2 Average truck load MT 12 3 No of daily truck loads required Nos 1 4 No of daily truck loads required (both way) Nos 2


25

5 Maximum Distance Covered kms 100 6 Distance covered kms 200 7 Mileage kms / L 3.5 8 Total diesel consumption Lts 57 9 No of days of operation days 305 10 Diesel consumption / year L 17429 11 Density of diesel kg/L 0.89 12 Actual Diesel consumption / year L 15511 13 Calorific value of diesel kCal / kg 9600

14 Total energy consumption from burning of diesel (Kcal/year) kCal/yr 1.67.E+08

15 Total energy consumption from burning of diesel (Joules/year) J/yr 6.99E+11

16 Total energy consumption from burning of diesel tJ/year 0.699

17 CO2 emissions from diesel t CO2/ TJ 74.1 18 Annual CO2 emission from transport t CO2e 52

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

Activity 1 – Direct Hot air generation to Spray Dryer

Year Estimated Project Activity Emissions (tonnes of CO2e)

Estimated Baseline Emissions (tonnes of

CO2e)

Estimated leakage(tonnes

of CO2e)

Estimated Emission Reduction (tonnes of

CO2e) 2007-08 0 6,808 52 6,756 2008-09 0 6,808 52 6,756 2009-10 0 6,808 52 6,756 2010-11 0 6,808 52 6,756 2011-12 0 6,808 52 6,756 2012-13 0 6,808 52 6,756 2013-14 0 6,808 52 6,756 2014-15 0 6,808 52 6,756 2015-16 0 6,808 52 6,756 2016-17 0 6,808 52 6,756

Total 0 68,080 520 67,560

Activity 2 – Indirect Hot air generation in Vertical Dryer


26

Year Estimated Project Activity Emissions (tonnes of CO2e)

Estimated Baseline Emissions (tonnes of

CO2e)

Estimated leakage(tonnes

of CO2e)

Estimated Emission Reduction (tonnes of

CO2e) 2007-08 0 4,018 52 3,967 2008-09 0 4,018 52 3,967 2009-10 0 4,018 52 3,967 2010-11 0 4,018 52 3,967 2011-12 0 4,018 52 3,967 2012-13 0 4,018 52 3,967 2013-14 0 4,018 52 3,967 2014-15 0 4,018 52 3,967 2015-16 0 4,018 52 3,967 2016-17 0 4,018 52 3,967

Total 0 40,180 520 39,670 B.7 Application of a monitoring methodology and description of the monitoring plan: The following two sections (B.7.1 & B.7.2) provides a detailed description of the application of the

monitoring methodology and description of the monitoring plan, including identification of the data to be

monitored and the procedures that will be applied during monitoring.

Please note that data monitored and required for verification and issuance are to be kept for two years

after the end of crediting period or the last issuance of CERs for this project activity, which ever occurs

later.

B.7.1 Data and parameters monitored:

Activity 1 – Direct Hot air generation for Spray Dryer Data / Parameter: Qdust Data unit: MT Description: Annual Quantity of dust produced Source of data to be used: MIS system at HRJD Value of data applied for the purpose of calculating expected emission reductions in section B.5

35,981

Description of measurement methods and procedures to be applied:

Monitoring: Measurement to be carried with Weigh bridge at the plant Data type: Measured Archiving procedure: Paper and Electronic


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Recording Frequency: Daily Responsibility: Manager (Operation) would be responsible for monitoring and checks for regular calibration of measuring instruments. Calibration Frequency: Once in six months.

QA/QC procedures to be applied: Yes, Quality Management System will be used and the same procedures would be available at the project site

Any comment: Data archived: Crediting period + 2 yrs

Data / Parameter: Q,biomass Data unit: Tonnes Description: Quantity of biomass transported from source to

project site Source of data to be used: Plant and Stores. Value of data applied for the purpose of calculating expected emission reductions in section B.5

5,670


Monitoring: Measured and monitored by Weigh bridge at the plant gate data can be retrieved from MIS system Data type: measured Archiving procedure: Paper and Electronic Recording Frequency: Daily Responsibility: Manager (Operation) would be responsible for regular calibration of the machine. Calibration Frequency: Weigh bridge will be calibrated once in every six months.




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Activity 2 – Indirect Hot air generation in Vertical Dryer

Data / Parameter: Qtile Data unit: MT Description: Annual Quantity of Tile dried Source of data to be used: MIS system at HRJD Value of data applied for the purpose of calculating expected emission reductions in section B.5

30,146


Monitoring: Tile counter – for measurement and then multiplying the same with specific weight of tiles for getting tonnage of production. Measurement carried in house weigh device Data type: Measured Archiving procedure: Paper and Electronic Recording Frequency: Daily Responsibility: Manager (Operation) would be responsible for monitoring and checks for regular calibration of measuring instruments. Calibration Frequency: Once in six months.



Data / Parameter: Q,biomass Data unit: Tonnes Description: Quantity of biomass transported from source to

project site Source of data to be used: Plant and Stores. Value of data applied for the purpose of calculating expected emission reductions in section B.5

2,976


Monitoring: Measured and monitored by Weigh bridge at the plant gate data can be retrieved from MIS system Data type: measured Archiving procedure: Paper and Electronic Recording Frequency: Daily Responsibility: Manager (Operation) would be responsible for regular calibration of the machine. Calibration Frequency: Weigh bridge will be calibrated once in every six months.




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Leakage Monitoring

Data / Parameter: Ct Data unit: Tonnes Description: Capacity of truck/ vehicle carrying biomass Source of data to be used: Plant Value of data applied for the purpose of calculating expected emission reductions in section B.5

12 MT


Monitoring: Weighing bridge at the plant entry point Data type: measured Archiving procedure: Paper and Electronic Recording Frequency: Annually Responsibility: Manager (Operation) would be responsible for regular calibration of the machine. Calibration Frequency: Once in every six months.



Data / Parameter: Dp Data unit: Kms Description: Distance of procurement including return journey

of vehicle Source of data to be used: Transport Agency or Supplier of biomass Value of data applied for the purpose of calculating expected emission reductions in section B.5

300


Monitoring: Estimated value and will be reported. Data type: measured Archiving procedure: Paper and Electronic Recording Frequency: Annually Responsibility: Manager (Operation) would be responsible for regular recording of this value.



Data / Parameter: M Data unit: Km/litre Description: Mileage of vehicle Source of data to be used: Transport Agency


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Value of data applied for the purpose of calculating expected emission reductions in section B.5

3.5


Data type: estimated Archiving procedure: Paper and Electronic Recording Frequency: Annually Responsibility: Manager (Operations) would be responsible for regular recording of this value.



Data / Parameter: Dn Data unit: Kg/Litre Description: Density of Transport fuel Source of data to be used: Plant Value of data applied for the purpose of calculating expected emission reductions in section B.5

0.89


Data type: Estimated Archiving procedure: Paper and Electronic Recording Frequency: Annually Responsibility: Manager (Operations) would be responsible for regular recording of this value.



Data / Parameter: Cf Data unit: Kcal/ kg Description: Calorific value of Transport fuel Source of data to be used: Plant or Transporters Value of data applied for the purpose of calculating expected emission reductions in section B.5

9600


Data type: Estimated Archiving procedure: Paper and Electronic Recording Frequency: Annually Responsibility: Manager (Operations) would be responsible for recording of this value.




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B.7.2 Description of the monitoring plan:

>> Roles and Responsibilities : Vice President (Operation)

1. Ensuring implementation of monitoring procedures lay down.

2. Performs reviews of internal audits

3. Performs conformance reviews.

Deputy General Manager.. (Operation)

1. Organizing and conducting training program on CDM and related activities for staff.

2. Implementing all monitoring procedures

3. Maintenance and calibration of equipment relating to biomass quantity and heat requirement.

4. Reviewing records and monitored data.

5. Internal audits

6. Overall responsibility for closing NOC and implementing corrective actions before verification.

Manager (Operation & Maintenance): 1. Supervision of HAG and provide training to HAG operator

2. Record maintenance and monitoring measurements and reporting.

3. Assisting Manager (operation) in checking and review of records and during internal audits.

HAG Operator

Vice president (Operation)

Deputy General Manager. (Operation)

HAG Operator

Manager (Operation& Maintenance)


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He will be responsible for monitoring and measurement of all activities. B.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 completing the final draft of this baseline and monitoring methodology: 25/02/2007 Name of person/entity determining the baseline: Name: D.R. Kulkarni Vice President (Project) H. & R. Johnson (India) Ltd. Industrial Area No. 2, A. B. Road, Dewas – 455 001 Madhya Pradesh


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SECTION C. Duration of the project activity / crediting period C.1 Duration of the project activity: >> Project Activity 1 - 10 years and 0 months Project Activity 2 - 10 years and 0 months C.1.1. Starting date of the project activity: >> Project Activity 1 – 06/01/2006 Project Activity 2 - 01/02/2003 C.1.2. Expected operational lifetime of the project activity: >> Project Activity 1 – 30 years Project Activity 2 – 30 years C.2 Choice of the crediting period and related information: C.2.1. Renewable crediting period >> Not applicable C.2.1.1. Starting date of the first crediting period: >> Not applicable C.2.1.2. Length of the first crediting period: >> Not applicable C.2.2. Fixed crediting period: >> 10 years and 0 months C.2.2.1. Starting date: >> Project Activity 1&2: 30/06/2007 or to a date not earlier than date of registration. C.2.2.2. Length: >> 10 years and 0 months


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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 Ministry of Environment and Forests (MoEF), Government of India, under the Environment Impact

Assessment Notification vide S.O. 60(E) dated 27/01/94 has listed a set of industrial activities in Schedule

I of the notification which for setting up new projects or modernization/ expansion will require

environmental clearance and will have to conduct an Environment Impact Assessment (EIA) study.

The project activity implemented at Dewas is complete avaoidance of fossil fuel with renewable biomass

for hot air generation. The activity commissioned does not require any EIA because of scale of

investment.

HRJD has obtained necessary clearance from:

− No Objection certificate Madhya Padesh state pollution control board.

− Consent to operate Madhya Padesh state pollution control board

− Certificate from Inspectorate of Factory Safety Act

Article 12 of the Kyoto Protocol requires that a CDM project activity contributes sustainable development

of the host country. Assessing the project activity, positive impacts on the local environment and on

society are evident.

The project activity:

1. Reduces CO2 emissions that would have been released into atmosphere by combustion of fossil

fuel.

2. Reduces the use of finite Fossil fuels and contributes to sustainable development

Possible environmental impacts from combustion of biomass residues in HAG will result in suspended

particulate matter (SPM) are controlled by air pollution control devices like settlers (for particulate mater

> 50 µm) and cyclone (for particulate mater < 10 µm) in order to meet air quality requirement in the rural

area setting.

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: >> There are no significant impacts from the project activity.


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SECTION E. Stakeholders’ comments >> E.1. Brief description how comments by local stakeholders have been invited and compiled: >> H&R Johnson, Dewas has implemented a measure which avoids fossil fuel with renewable biomass for

hot air generation. The project utilizes renewable biomass ie; soya husk available in the Dewas district.

The GHG emissions of the combustion process, mainly CO2 are sequestered by the plantation,

representing a cyclic process. So the project leads to zero net GHG on-site emissions.

The stakeholders identified for the project are as under.

Employees

Local community

Biomass supplier

Contractor – Manpower provider

Non-Governmental Organizations (NGOs)

Summary of comments from different stakeholders is given in section E.2.

E.2. Summary of the comments received: >>

Above identified stakeholders were communicated for feedback and comments on project. A meeting was

held which was attended by different stakeholders mentioned in section E.1, who have direct or indirect

relation with this project. A video presentation taken during the interview with each stakeholder is available with

HRJD and validating agency.

Summary of the comments are given in tabulated form below.

Employee: (Mr.Rajesh Deshpande - Production Manager) The production team had to face a lot of problems during pre and post implementation of the project

activity. This was because firing of soya husk in a FBC system was done for the first time at Dewas and

required series of modifications for smooth operation of system. However I am happy to understand this

project activity will substitute fossil fuel and thus help reduce GHG emission which would have

otherwise emitted because of fossil fuel burning. This will surely help HRJ in sustainable development of

its stakeholder and nearby area.


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(Mr.Vijay Kumar Hazari)

Mr.Hazari said he understands the objective of this mechanism to reduce GHG emissions and thus help in

reducing damages to the environment. As the project implemented utilizes biomass for thermal energy

generation, this reduces GHG emissions. Also the project activity facilitates a healthy environment in the

company. Previously we used to have frequent health concerns, however due to complete avoidance such

health problems are not found. The ash we generate would have been otherwise disposed which would

require solid waste management compliance, however our production process utilizes the ash and thus we

do not required to dispose it outside and thus it is proving beneficial to the environment.

Local Community

(Mr.Sunil Soni – Nearby Resident)

I am glad that HRJD has opted opinion with different stakeholders, further to this I do understand

importance of implementing a project activity which will benefit in developing good environment for

local people. Apart from that the project has created income for local people. It is also an extra income for

local farmers. This extra money earned by them acts as a financial protection for them in case of adverse

climatic condition like water scarcity or unusual floods in this region. Overall the project is beneficial and

sustainable in nature.

Biomass Supplier

(Mr.Ali)

In earlier days we used to collect biomass from near vicinity of Dewas, later on we have increased the

biomass collection cycle to cater to the requirement of the plant. This collection mechanism has formed a

chain starting from farmers, transporter, labour and other associated people. Every person in the cycle has

found out a new source of income on permanent basis. Though direct employment in FBC system is

around 30-35 people on daily basis, the entire value chain involves around 100 people on daily basis.

Farmers are mostly benefited out of this project. The biomass which was getting wasted in earlier days

has become an extra source of income for them on sustainable basis.


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Contractor:

(Mr.Khatri)

I am Salim Khatri, Civil & Refractory contractor of HRJ, Dewas. I was involved in this project since the

construction stage. This project is contributing towards a better environment by reducing the CO2 level in

the atmosphere. This happens due to burning of biomass in-place fossil fuel which would have been

otherwise combusted. I was appointed as a civil contractor for this project. In the erection stage this

project gave employment to the local people. I am also looking after the refractory health of FBC

therefore during any shutdown of the plant for refractory health maintenance or replacement of refractory

in the furnace gives income to local people for carrying out maintenance job on temporary basis.

NGO:

(Miss Rupali)

Hello I am Rupali, I am perusing my MBA from Prestige Institute, Dewas. My specialization is finance

and marketing. I am a residence of Indore, MP. I also work as an NGO part-time. HRJ is a very good tile

manufacturing company. It is here since last 26 years and it is doing a great job. Yes I am aware of that.

The good part of the project is that it is environment friendly. It has reduced net CO2 release to the

atmosphere; therefore it is good for the local population. Secondly it has created employment for the local

population.

It implies from the stakeholder comments that the project will not cause any adverse social impacts on the

local population but helps in improving the quality of life for them. Thus the project activity proves to be

environment friendly and sustainable.

E.3. Report on how due account was taken of any comments received: >> Positive feed backs and comments have been received from different stakeholders listed above for HRJ

project. However as per UNFCCC requirements, the project design document (PDD) will be kept on the

website for global stakeholder comments.


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Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY Organization: H&R Johnson (India) Limited. Street/P.O.Box: Corporate & Registered Office, Windsor, 7 th Floor,C. S. T. Road , Kalina

Santacruz (East), Building: -- City: Mumbai State/Region: Maharashtra Postfix/ZIP: 400 098 Country: India Telephone: 91-22-26547300 FAX: 91-22-30647400 E-Mail: [email protected] URL: http://www.hrjohnsonindia.com Represented by: Title: Vice President Salutation: Mr. Last Name: Kulkarni Middle Name: -- First Name: Devavarata Department: (Project) Mobile: -- Direct FAX: -- Direct tel: -- Personal E-Mail: --


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Annex 2

INFORMATION REGARDING PUBLIC FUNDING

No public funding received for the project activity.

Annex 3

BASELINE INFORMATION

Please refer to section B.4 for baseline and its development for the project activity.

Annex 4

MONITORING INFORMATION

Please refer to section B.7, B.7.1 and B.7.2 explains the monitoring methodology and description of monitoring plan.

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