25 MW Biomass Plant China - CDM

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
CDM Executive Board

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CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-PDD) Version 03 - in effect as of: 28 July 2006 CONTENTS A. B. C. D. E. General description of project activity Application of a baseline and monitoring methodology Duration of the project activity / crediting period Environmental impacts Stakeholders comments Annexes Annex 1: Contact information on participants in the project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring plan
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM Executive Board
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SECTION A. General description of project activity A.1. Title of the project activity: >> - Shandong Shanxian 1*25MW Biomass Power Plant Project - Revision number: Version 6.0, - Revision date: 28/10/2009 Revision history of the PDD:
Version Version 1.0 Version 2.0 Version 3.0 Version 4.0 Version 5.0 Version 5.1 Date Undated 04/08/2006 27/09/2006 18/12/2006 10/01/2007 19/02/2007 Comments Internal draft PDD Draft submitted for GSP PDD revised to address comments DOE on the basis of document review PDD revised to incorporate new emission factors published by NDRC (National Development&Reformation Commission) and to change the PDD to the new format. PDD revised based on the ACM 0006 Version04 PDD revised to address latest outstanding issues for validation, such as correction of the date of the start of the crediting period.
A.2.
Description of the project activity: >> The Shandong Shanxian Biomass Power Plant Project (hereafter, the Project) developed by National Bio Energy Co.,Ltd (hereafter referred to as the Project Developer) is a biomass collection and utilization project in Shanxian, Shandong Province, P.R.China.
The project will generate power using a 1*25MW generator unit. The central boiler system is mainly based on Danish company Burnmeister & Wain Energy A/S (hereafter referred to as BWE) which developed this technology. The combination of the Danish boiler technology and a boiler that is produced domestically should fit the requirements of this power plant very well. The main biomass fuel for this plant is expected to be cotton straw, paddy hull, peanut shell, bark, branch, firewood residue 1.
Firewood residue in this PDD is defined as residue from wood processing.
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Figure 1 Shanxian 1*25MW Biomass Direct Burning Power Plant Overview
The electricity produced by the project activity is supplied to the public Shandong provincial power grid which is part of the North China grid system. The electricity from the project will be a must-run electricity source of the Shandong Grid. The project will replace the power generated by coal-fired power plants. Therefore, the electricity supply from the proposed biomass power plant is an alternative to the construction of a power plant based on coal with the same capacity. The heat generated in this biomass power plant may in the future be utilized as well, after the local heating system has been established. Note that no emission reductions from the heating component, if any, of the project will be claimed in this PDD. The proposed project will reduce the greenhouse gas emissions from biomass caused by natural decay and uncontrolled burning, and also will reduce greenhouse gas emissions related to the burning of fossil fuel for power production. Currently about 700 million tonnes straw are produced in China as residues of agricultural production, but only a very small percentage of this is properly utilized. The common method of direct burning for heating and cooking by the local farmers results in heavy air pollution and very low level of heating efficiency. The remainder of the biomass resource is normally dumped in an uncontrolled manner and occasionally burned in the open air. Shanxian is one the richest biomass resource towns in China and most of the agricultural resources are just dumped and not utilized in a proper way. The Shanxian Biomass Power Plant is the first demonstration project involving power generation using biomass in the P.R. of China. The Chinese new Renewable Energy Law encourages the development of power plants using to compensate shortages in energy supply and in order to reduce the severe environmental pollution. Especially the constructions of biomass power plants in regions that are rich in biomass are encouraged. The local farmers can benefit by supplying straw as fuel for the biomass power plants. This will assist the domestic economic development, contribute to reducing poverty, and simultaneously decrease the air pollution, by reducing emissions of local pollutants resulting from the uncontrolled burning of cotton as well as the burning of coal in coal-fired based power plants.
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This project is a national pilot project for renewable resource utilization and new Danish technology for the core boiler system will be introduced to the PRC. The project developer will introduce the new Danish boiler technology and is able to benefit from the Danish engineering expertise that will be used in this biomass power plant project. Hence, this sustainable energy project will serve as an example and could possibly lead to other similar projects in the PRC and will contribute to China's sustainable development. The project contributes to China's goal of a 15% share of renewable energy in total power generation by 2020. More specifically, this project: Reduces the power generation burden based on coal fired plants which often result in heavy air pollution Promotes the national Chinese sustainable development policy Creates direct and indirect income-generating and employment opportunities in the area where this project is located Is constructed as the pilot project of renewable resource utilization and will be a demonstration project for any others project developers working on biomass utilization in a sustainable manner Ensures that clean and highly efficient technology will be transferred and applied in Chinese local plant Avoids an uncontrolled management of biomass resources and optimizes the usage of natural resources A.3. Project participants:
Please list project participants and Party(ies) involved and provide contact information in Annex 1. Information shall be in indicated using the following tabular format. Name of Party involved (*) Private and/or public Kindly indicate if ((host) indicates a host entity(ies) the Party involved Party) project participants (*) wishes to be (as applicable) considered as project participant (Yes/No) No China (host) National Bio Energy Co.,Ltd Danish Ministry of Foreign Denmark Yes Affairs
(*) 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 registration, the approval by the Party(ies) involved is required.
Note: When the PDD is filled in support of a proposed new methodology (form CDM-NM), at least the host Party(ies) and any known project participant (e.g. those proposing a new methodology) shall be identified.
>> Host Country: People's Republic of China, which has ratified the Kyoto Protocol to the United Nations Framework Convention on Climate Change in September 2002.
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Project Participants: National Bio Energy Co.,Ltd (NBE), was established in 2005 with a registered capital of 500 million RMB. It is a shareholding company. The main shareholders are Shenzhen State Power Science & Technology Development Co., Ltd (55% of registered capital) and Dragon Power Co., Ltd. (45%). The biggest investor in the majority shareholder is the State Grid Corporation of China. NBE is one of the most pilot biomass power companies in China and has started the planning and implementation of the first few biomass power plants in China since 2004. Danish Ministry of Foreign Affairs (DANIDA). DANIDA is one of the public entities in Denmark involved in the procurement of CERs through CDM projects and ERUs through JI projects to help Denmark, as an Annex 1 Country, to achieve its targets under the Kyoto Protocol. DANIDA has also made available a facility to assist the preparation of CDM documentation in China through the Danish CDM Project Development Facility in China (www.cdmasia.org/danida.html) CDM consultants COWI Consulting (Beijing) Co., Ltd is a daughter company of COWI A/S with the headquarters located in Denmark. COWI has been helping Chinese clients to develop CDM projects. COWI A/S has worked with carbon trading since 1995 and has contributed actively to emission reduction through industrial energy efficiency improvement and renewable energy utilization.
A.4.
Technical description of the project activity: A.4.1. Location of the project activity:
>> A.4.1.1. Host Party(ies): >> People's .Republic of.China A.4.1.2. Region/State/Province etc.: >> Shandong Province A.4.1.3. City/Town/Community etc: >> Shanxian A.4.1.4. Detail of physical location, including information allowing the unique identification of this project activity (maximum one page): >> The project is located in the economical developing region which is 3km to the east of the Shanxian downtown area, and the postal code of this plant is 274300 and the longitude is 11636 and the latitude is 344912. The total area for the power plant is approximately 100mu (Around 6667 m2). The project is
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located in a flat area nearby the main roads; therefore the transportation is very convenient. The main transportation of the straw from the field to the collection stations is by carriage. The straw originates from the local Shanxian farmers. Shanxian is a designated poverty county at the provincial level. The intermediate-trader agency has not been established yet. At this stage, farmers have to deliver the biomass residues directly to the collection points by themselves. The project location was chosen considering the main local wind direction in Shanxian, the future enlargement of workshops, and the need to comply with the EIA (Environmental Impact Assessment) requirements. There is no large enterprise or natural scenic site located in the near area. On the opposite side of the power plant, an area of 50 mu (33333 m2) has been allocated for the ashes from the plant. It is estimated that approximately 3 to 5 percentage of the biomass amount will turn into ashes depending on the different types of biomass. Consequently, the annual production of ashes from this power plant will be around 4000 tonnes to 6600 tonnes. The power plant staff will pack the ash from the incineration and deliver it back to the farmers who will use it as fertilizer. The project is located in Southwest of Shandong province, which is located in Northern China. The climate in Shanxian is mild and the area is situated in the warm temperate zone, with a semi-humid continental climate. The annual precipitation is around 650mm and the annual average temperature is 13.9oC. There is no possibility of natural disasters such as flooding, earthquake etc happening in the project site area according to the long term analysis. A.4.2. Category(ies) of project activity: >> Sectoral Scope: Energy Industries (renewable / non-renewable sources) Category: Renewable electricity in grid connected applications A.4.3. Technology to be employed by the project activity: >> This project was approved by National Development and Reformation Commission on 20/09/2004 and put into trial operation on 02/10/2006. At the moment of the writing of this version of the PDD, the project is in full operation. The project entails the establishment of a biomass fired power plant with a rated capacity of 25MWe and a maximum capacity of 30MWe. The estimated annual electricity generation is 150Gwh. Approximately 15% of the power generated will be utilized on the site itself (10% for boiler operation and 5% for others). Supply to the power grid therefore equals 127.5Gwh annually. The system consists of single extraction steam turbine, with a 1*130t/h vibrating chain type hightemperature, high-pressure boiler, and steam circulation by forced-air cooling. As soon as the heating network is established in the town, the heating supply will also be prepared, however the heating supply component is not considered part of this project activity. The biomass power plant will be connected to the public electric transmission grid, and electricity will be used as a must-run resource. The power price for the purchases by the local power company has not finally been agreed yet.
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The main fuel supply is cotton straw, paddy hull, and peanut shell (it is anticipated that paddy hull and peanut hull will only account for a small percentage of total fuel supply) which are bought from local farmers directly. In the project region cotton straw is considered to be abundant resources. The biomass resources are only utilized to a very limited degree at the present time. Most of the farmers utilize cotton straw as fuel for cooking. The percentage of biomass that is already utilized is approximately 10% from the total available biomass resources, according to the project developer's investigations. The majority of the biomass amount is left on the field to decay naturally. The plant is designed to handle wood chips as well as corn straw, paddy hull and peanut shell, mainly including bark, branch, and firewood residue. The biofuel will be cut into pieces of a maximum length of 3.937in and transported to the plant from the individual collection points. There are eight collection points constructed for supplying the biofuel to the plant according to the biomass resources in Shanxian. Inside of each individual collection point, there are three major components: the primary storage cabin, the cutting facility plant and secondary storage cabin from where the cut biomass will be transported to the power plant. The transportation of the biofuel would be sub-contracted with a local logistics firm by the project entity. All the trucks utilized for the biofuel transportation are dedicated vehicles belonging to the power plant. Different types of biofuel would be transported separately when delivering from collection points to the plant site. The total storage capacity of all the 8 collection points is 80,000 tonnes. Even though the plant has been put in operational in November, 2006, the cotton collection by the power plant staff and storage was already initiated in April, 2006. This is due to the fact that the cotton collection season starts late November. The total storage amount was approximately 50,000 tonnes before the first firing of the power plant. At the plant the fuel is unloaded in a receiver bunker and from there the handling is automatically controlled. First, the fuel is stored in a large storage building which can accommodate approximately a biomass amount for 5-7 days of burning, and from there it is automatically reclaimed and transported to two small buffer silos in the boiler building. The buffer silos will control the feeding of the boiler. The burning system will be a vibrating water-cooled grate. The boiler is a three-pass steam boiler designed to generate steam at 540oC and 92 Bar. The air pre-heating will be done with hot feed water which will be reheated in a flue gas cooler and returned to the feed water tank. By doing this an outlet temperature of 130oC and a boiler efficiency around 90% will be achievable under optimal operation condition. The flue gas cleaning will be by a fabric filter for particles. Due to low content of sulphur in the flue gas, no scrubber is needed in this project. The boiler is designed in Denmark according to EN rules. This design has then been adjusted to follow the Chinese GB rules meaning certain materials have been changed and the strength and thickness of some pipes have been changed. Also the set-up regarding safety valves has been changed. All these changes are only related to safety requirements from the authorities. All functional design is as designed and earlier installed in Europe. Using straw as fuel mainly causes massive problems with fouling (build up of slag in the boiler). Based on the Danish experience there is no way to avoid this and therefore the design of the boiler has taken this into consideration. As the specific measures are part of the patent and expertise the supplier do not wish to detail this explanation but as the Danish technology partner has build several straw fired power plants
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in Europe (Ely in UK, Sanguesa in Spain, Maribo, Masnedoe and Rudkoebing in Denmark) following the same principles they do not expect problems with fouling. Chlorine can also cause heavy corrosion in the outlet of the boiler (where the flue gas is cold). This problem has also been severe on some of the references in Europe. In the newest designs the problem has however been solved by the combination of the flue gas cooler and air preheater. The fuel handling system is based on handling systems for wood chips as have been installed on numerous Scandinavian power plants. The boiler system is based on design from the Danish company BWE and is similar to what has been installed on a number of straw fired and wood fired power plants in Europe. The turbine and generator will be supplied by Chinese suppliers and so will all the auxiliary equipment. A.4.4. Estimated amount of emission reductions over the chosen crediting period:
Please indicate the chosen crediting period and provide the total estimation of emission reductions as well as annual estimates for the chosen crediting period. Information on the emission reductions shall be indicated using the following tabular format. Years Annual estimation of emission reductions in tonnes of CO2e 15/05/2007 79,439 2008 127,102 2009 127,102 2010 127,102 2011 127,102 2012 127,102 2013 127,102 15/05/2014 47,663 Total estimated reductions 889,716 (tonnes of CO2e) 7 Total number of crediting years 127,102 Annual average over the crediting period of estimated reductions (tonnes of CO2e)
A.4.5. Public funding of the project activity: >> There is no public funding from Annex I countries for the construction of the Shanxian biomass power plant project. The only public funding from the Annex I countries is for the preparation of the PDD, which is financed by the Danish Ministry of Foreign Affairs. No existing official development assistance (ODA) from Annex I countries is involved in the proposed project.
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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 project activity: >> ACM0006" Consolidated Baseline Methodology for grid-connected electricity generation from biomass residues" (Version 04, EB27), in conjunction with "Consolidated monitoring methodology for gridconnected electricity generation from biomass residues". ACM0006 refers to the ACM 0002 "Consolidated baseline methodology for grid-connected electricity generation from renewable sources"(Version 06, 19/05/2006) and the latest version of the "Tool for the demonstration and assessment of additionality". More information about the methodology can be found on the website: http://cdm.unfccc.int/methodologies/approved. B.2. Justification of the choice of the methodology and why it is applicable to the project activity: >> There are generally four project activities included in this methodology application area which are followings: The installation of a new biomass power plant at a site where currently no power generation occurs (Greenfield power projects); The installation of a new biomass power generation unit, which is operated next to existing power generation capacity fired with either fossil fuels or the same type of biomass residue as in the project plant (Power capacity expansion projects); The improvement of energy efficiency of an existing power generation plant (Energy efficiency improvement projects); The replacement of fossil fuels by biomass in an existing power plant (Fuel switch projects). As previously described, the Project is mainly based on two complementary activities as following: The collection and acted as biomass resources for power generation The generation and supplying of electricity to the regional grid system, thus displacing a certain amount of fossil fuels used for electricity generation. Therefore, this Shanxian Biomass power plant project obviously belongs to the Greenfield Power Projects which listed in the first of the four activities. The methodology ACM0006 allows for development of projects falling under 4 conditions: Condition 1: No other biomass types than biomass residues (Defined as biomass that is a byproduct, residue or waste stream from agriculture, forestry and related industries), as defined above, are used in the project plant and these biomass residues are the predominant fuel used in the project plant; Condition 2: For projects that use biomass residues from a production process, the implementation of the project should not result in an increase of the processing capacity of raw input or in other substantial changes in process; Condition 3: The biomass used by project facility should not be stored for more than one year;
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Condition 4: No significant energy quantities, except from transportation of the biomass, are required to prepare the biomass residues for fuel combustion.
The situations of proposed Shanxian biomass direct burning power plant are as following: The biomass which will be utilized in the proposed power plant are mostly from the dumped or uncontrolled burning in the field, and the biomass straws are utilized as the predominant fuel supplying for the power plant. Therefore, this is fulfilling the condition 1; The biomass residues of bark, branch, and firewood residue are waste from wood processing, the implementation of the proposed project would not result an increase of the processing capacity of raw input or in other substantial changes in wood processing. Other biomass residues (cotton straw, paddy hull, peanut shell) are directly from the agriculture, not from production process. Therefore it fulfils the condition 2; Since there would be a professional logistics company responsible for the biomass transportation, and mainly based on the requirements of moisture and ash contents, the storage time of the biomass residues will not be over 1 year, therefore , it fulfils the condition 3; There is not significant energy quantities, except from transportation of the biomass are required to prepare the biomass residues for fuel combustion, which also fulfils the condition 4. Based on the above analysis, it can be conclude that the project therefore fulfils all the conditions as defined above, hence ACM0006 was thought to be the most appropriate methodology for this project. In this case a baseline methodology for electricity and or thermal energy displaced shall be an approved one used which is ACM 0006 as explained before, including the ACM 0002 "Consolidated Methodology for Grid-Connected Power Generation from Renewable Sources". The proposed project can meet the applicability criteria of the baseline methodology (ACM0002), therefore, the methodology is applicable to the proposed project. The proposed project is a grid-connected zero-emission renewable power generation activity from biomass source; The proposed project is not an activity that involves switching from fossil fuels to renewable energy at the proposed project site. The power grid (the North China Power Grid) which the proposed project is to be connected to is clearly identified and information on the characteristics of this grid is publicly available. The additionality of the proposed project can be verified using Tools for the demonstration and assessment of additionality requested by the baseline methodology (ACM0002). B.3. Description of how the sources and gases included in the project boundary:
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Overview on emissions sources included in or excluded from the project boundary Source Gas Justification / Explanation Grid electricity CO2 Included Main emission source generation CH4 Excluded Excluded for simplification as per the methodology applied. This is conservative. N2O Excluded Excluded for simplification as per the methodology applied. This is conservative. Uncontrolled CO2 Excluded It is assumed that CO2 emissions from surplus biomass burning or decay of residues do not lead to changes of carbon pools in the surplus biomass LULUCF sector. CH4 Included Project participants decide to include this emission source, since the case B1 has been identified as the most likely baseline scenario. N2O Excluded Excluded for simplification as per the methodology applied. This is conservative. Note also that emissions from natural decay of biomass are not included in GHG inventories as anthropogenic sources. On-site fossil fuel CO2 Included An important emission source. consumption due to the project activity CH4 Excluded Excluded for simplification as per the methodology applied. (stationary or This emission source is assumed to be very small. mobile) N2O Excluded Excluded for simplification as per the methodology applied. This emission source is assumed to be very small. Baseline Off-site transportation of biomass Project Activity CO2 CH4 N2O Combustion of biomass for electricity and / or heat generation CO2 CH4 N2O Biomass storage CO2 CH4 N2O Included Excluded Excluded Excluded Included Excluded Excluded Excluded Excluded An important emission source. Excluded for simplification as per the methodology applied. This emission source is assumed to be very small. Excluded for simplification as per the methodology applied. This emission source is assumed to be very small. It is assumed that CO2 emissions from surplus biomass do not lead to changes of carbon pools in the LULUCF sector. This emission source must be included because CH4 emissions from uncontrolled burning or decay of biomass in the baseline scenario are included. Excluded for simplification as per the methodology applied. This emission source is assumed to be very small. It is assumed that CO2 emissions from surplus biomass do not lead to changes of carbon pools in the LULUCF sector. Excluded for simplification. Since biomass is stored for not longer than one year, this emission source is assumed to be small. Excluded for simplification. This emission source is assumed to be very small.
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B.4. Description of how the baseline scenario is identified and description of the identified baseline scenario: >> The methodology will be applied using Green Field Power Project activity and all the four conditions listed under the ACM 0006 are fulfilled. Based on the ACM0006, realistic and credible alternatives should be separately determined regarding: How Power would be generated in the absence of the CDM project activity; What would happen to the Biomass in the absence of the project activity; In case of cogeneration projects: how the Heat would be generated in the absence of the project activity. Baseline Scenario P1 The proposed project activity not undertaken as a CDM project activity; P2 The proposed project activity (installation of a power plant), fired with the same type of biomass but with a lower efficiency of electrical generation (e.g. an efficiency that is common practice in the relevant industry sector); P3 The generation of power in an existing plant, on-site or nearby the project site, using only fossil fuels; P4 The generation of power in existing and/or new grid-connected power plants; P5 The continuation of power generation in an existing power plant, fired with the same type of biomass as (co-)fired in the project activity, and implementation of the project activity, not undertaken as a CDM project activity, at the end of the lifetime of the existing plant; P6 The continuation of power generation in an existing power plant, fired with the same type of biomass as (co-)fired in the project activity and, at the end of the lifetime of the existing plant, replacement of that plant by a similar new plant. It can be found that in proposed Shanxian biomass direct burning project: P2 The proposed project is the first biomass direct burning power plant in Shandong province, therefore there is no other power plant fired with the same type of biomass but with a lower efficiency of electrical generation, so P2 is not suitable alternative; P3 There is no existing plant onsite or nearby the project site only using fossil fuels generating power currently, so P3 is not suitable alternative; P5 There is no continuation of power generation in an existing power plant, fired with same type of biomass as in the project activity, and implementation of the project activity not undertaken as a CDM project activity at the end of the lifetime of the exiting plant, so P5 is not suitable alternative; P6 There is no replacement of the existing power plant at the end of the lifetime, by a similar new plant, the existing power plant would continue generate power, fired with the same type of biomass as fired in the project activity, so P6 is not suitable alternative. First, during the identification of the baseline scenario for power generation, the realistic and credible alternative was chosen as P1: The proposed project activity not undertaken as a CDM project activity; and P4: The generation of power in a new grid connected power plant. For the use of biomass, the realistic and credible alternative(s) may include, inter alia:
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B1 The biomass residues are dumped or left to decay under mainly aerobic conditions. This applies, for example, to dumping and decay of biomass residues on fields. B2 The biomass residues are dumped or left to decay under clearly anaerobic conditions. This applies, for example, to deep landfills with more than 5 meters. This does not apply to biomass residues that are stock-piled or left to decay on fields. B3 The biomass residues are burnt in an uncontrolled manner without utilizing it for energy purposes. B4 The biomass residues are used for heat and/or electricity generation at the project site; B5 The biomass residues are used for power generation, including cogeneration, in other existing or new gird-connected power plants; B6 The biomass residues are used for heat generation in other existing or new boilers at other sites B7 The biomass residues are used for other energy purposes, such as the generation of biofuels B8 The biomass residues are used for non-energy purposes, e.g. as fertilizer or as feedstock in processes. According to the Biomass Supply / Demand Investigation Report in Shanxian County carried out by Shandong Electric Power Engineering Consulting Institute in March 2007, the proposed project utilizes biomass residues from agriculture, mainly including cotton straw, paddy hull, and peanut hull; and also by-product from wood processing, including bark, branch, and firewood residue. Similar analysis would be done for the biomass alternatives as power generation for the proposed Shanxian project: B1 This is the scenario that happens around the site of the proposed project, a certain number of surplus biomass residues would be dumped or left to decay Thus B1 is the suitable alternative; B2 There is no landfill around the site of the proposed project, hence, the unused biomass residues are impossible dumped or left to decay under clearly anaerobic conditions. So B2 is not suitable alternative; B3 This is the scenario that happens around the site of the proposed project, a certain number of surplus biomass residues would be burned uncontrolled outside without utilization it for energy purpose, therefore B3 is the suitable alternative; B4 The proposed project is the first biomass generation project in China 2. Therefore biomass is not used for heat or power generation currently, so B4 is not suitable alternative; B5 The proposed project is the first biomass generation project in China. So B5 is not suitable alternative; B6 There is no biomass boiler using biomass residues as fuel close to proposed project. Considering the cost of biomass transpiration, other existing or new boilers at other places will not use these surplus biomass residues. So B6 is not suitable alternative; B7 There is no other energy generation project that has needs to the surplus biomass residues consumed by the proposed project., so B7 is not suitable alternative; B8 There is only a little amount of biomass residue that has been used as fertilizer around the project site, however, biomass residues used by the proposed project will not impropriate the biomass as fertilizer, since the biomass consumption of the proposed project is from the local surplus biomass residues of the area., so B8 is not suitable alternative. In conclusion, for the use of biomass, the realistic and credible was chosen as B1 and B3: The biomass residues are dumped or left to decay under mainly aerobic conditions and burnt in an uncontrolled manner without utilizing it for energy purposes. According to the biomass resource investigation study done by National Bio Energy Co.,Ltd. and local authority, the current biomass utilization structure will not change after the proposed project operation.
http://www.most.gov.cn/dfkjgznew/200510/t20051018_25472.htm
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If the proposed project activity is the cogeneration of power and heat, project participants shall define the most plausible baseline scenario for the generation of heat. For heat generation, realistic and credible alternative(s) may include, inter alia: H1 The proposed project activity not undertaken as a CDM project activity H2 The proposed project activity (installation of a cogeneration power plant), fired with the same type of biomass but with a different efficiency of heat generation (e.g. an efficiency that is common practice in the relevant industry sector) H3 The generation of heat in an existing cogeneration plant, on-site or nearby the project site, using only fossil fuels H4 The generation of heat in boilers using the same type of biomass residues H5 The continuation of heat generation in an existing cogeneration plant, fired with the same type of biomass as in the project activity, and implementation of the project activity, not undertaken as a CDM project activity, at the end of the lifetime of the existing plant H6 The generation of heat in boilers using fossil fuels H7 The use of heat from external sources, such as district heat H8 Other heat generation technologies (e.g. heat pumps or solar energy) The heating part in the proposed project is not considered in the emission reduction calculation based on the conservative principle. Therefore, we could find that Scenario 2 which is listed in ACM 0006 Table 1: Combinations of project types and baseline scenarios applicable to this methodology, is the right scenario for this project. It is described like following: The project activity involves the installation of a new power plant at a site where currently no power generation occurs; The power generated by the project plant is fed into grid and would in the absence of the project activity be purchased from the grid; The biomass would be in the absence of the project activity be dumped or left decay or burned in an uncontrolled manner without utilizing for energy purposes; Scenario 2 Project Type Power Greenfield Project Power Generation P4 Baseline Scenario Use of biomass B1, B3 Heat Generation No Heat now
Table 1 Identification of Scenario combined with Power, use of biomass and heat generation method for Shanxian 1*25MW biomass power plant
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 CDM project activity (assessment and demonstration of additionality): >> Approved Tool for the Demonstration and Assessment of Additionality applied in ACM0002 is used to demonstrate and assess the additionality of the proposed project in the following steps: Step 0 Preliminary screening based on the starting date of the project activity The crediting period of the proposed project will not start before the registration of the project activity because the starting date of project does not fall between 01/01/2000 and the date of registration as CDM project.
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Step 1 Identification of alternatives to the project activity consistent with current laws and regulations Four alternatives are selected as the power generation options in the following table, and the analysis of these alternatives whether consistent with current laws and regulations are shown as well. Sub Step 1a. Define alternatives to the project activity Alternatives to power generation: 1. Construction of a coal firing plant with the same power generation capacity equivalent to the proposed project activity Based on this scenario assumed, the dominating newly installed power generation is coming from the thermal firing plants which are the normal project behaviour at present time in North China Power Grid system. From the new addition power capacity from 2002 to 2004 which are the most present statistics, the new addition power generation is over 90% from thermal plants. Furthermore, it is not possible to build the power plant with the same scale under the current Chinese existing new power addition regulatory framework. Since it is not allowed to build the coal firing power plant smaller than 135MW under the current Chinese legislations. Therefore, the alternative fossil fuel power plant building with the same power generation capacity is not possible to happen under the current Chinese laws and legislations for power plants. There is power addition annually from 2002 to 2004 in North China Grid Network; therefore it is mostly from the thermal generation. The alternative is a feasible scenario to be selected as the baseline for the proposed project. The IRR of project is too low if there is no income from CERs. So this alternative is not applicable.
2. Supply of equivalent annual power output by the Grid where the proposed project is connected to 3. The proposed project activity not undertaken as a CDM project activity
Alternatives to biomass usage: The proposed project utilizes the current dumped biomass straws for power generation. According to the identified baseline scenario will the biomass utilized in the proposed power plant alternatively be used in an uncontrolled way such as dumped and left to decay or burned in open air. Sub Step 1b. Enforcement of applicable laws and regulations: For the scenario 1, it will not occur under the current applicable laws and regulations in force. Detailed reference is the China Power Yearbook 2003, 2004 and 2005 and relative rules for the new establishing power plants. Scenario 2 is clearly consistent with the prevailing laws and regulations, since there in the North China Grid is a demand for new power addition to ensure the growing industrial and commercial purposes in this area.
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Step 2 Investment analysis According to the identified Additionality Assessment Tool for the proposed project, this step has to determine whether it is financially less attractive than other alternatives without the revenues deriving from CERs payment. Sub Step 2a Determine appropriate analysis method The three analysis methods suggested by Tool for the demonstration and assessment of additionality are: Option I simple cost analysis Option II investment comparison analysis Since there are both revenues of power price and CERs payment, this option is not appropriate to calculate. This option is only applicable to the case where the alternative baseline scenario is similar to the proposed project, so that the comparative analysis can be conducted. However, the proposed baseline scenario is the North China Grid which is not similar to the suggested project. When both benchmark IRR and total investment IRR of proposed project are available, this method can be used.
Option III benchmark analysis
Sub Step 2b Apply benchmark analysis Chinese power industry very commonly use 8% as the financial benchmark rate of return (after tax) of the total investment and this is also used in the feasibility study report. This threshold value of project financial assessment is based on the Interim Rules on Economic Assessment of Electric Engineering Retrofit Projects. Sub Step 2c Calculation and comparison of financial indicators Power generation capacity Annual power net output Project lifetime Total project investment Tariff Biomass purchasing price Annual Operating hours Tax Emission reduction crediting period Expected CERs price 25MW 127.5GWh Total 22 years including 1 year construction time 294,184,100 RMB RMB 0.66 Yuan/KWh (excluding VAT) 300 RMB/tonne 6000 hours/year 33% income tax 21 Years 8 Euro/tCO2eq or above IRR (Total investment, benchmark = 8% ) 11.0 5.6
With CERs revenue Without CER revenues
NPV (Total investment, discount factor = 8%) million RMB 58.5 mill RMB -41.3 mill. RMB
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Data input for financial sensitivity analysis:

Capacity Operation hours Own consumption Total production Tariff Tariff Subsidy Income from power sale CERs from power Unused biomass basel. Total project emissions CER per year Price per CER Exchange rate Income from CERs Biomass demand Dry Biomass Residue Biomass price Expense from purchase Staff and maintenance Other O&M 25 6,000 15% 127,500 0.410 0.250 84,150,000 125,275 4,939 3,111 127,102 MW hours/year MWh/year RMB/kWh RMB/kWh RMB/year CERs CERs CERs CERs
8.00 Euro/tons 10.00 RMB/Euro 10,168,186 RMB/year 132,000 119,315 300 39,600,000 tons/year tons/year RMB/tons RMB/year
5% of investment 14,709,205
Total Investment Biomass Consumption Emission Factor
294,184,100 RMB/year 22 tonnes/hour 0.983 tons CO2/MWh
The above table shows the critical financial benchmark indicators and compares the situations with and without CER revenues. It is clear that the proposed project faces great financial barriers. Therefore, CDM revenues are necessary to make the proposed project financially viable for investors. Sub Step 2d Sensitivity analysis The sensitivity analysis is conducted in order to measure the influence on the IRR and NPV due to the changes of key financial parameters such as biomass purchasing price, power generation connected to
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grid amount etc. Based on the biomass utilization technology experience from Denmark mainly, these two parameters are most critical factors to ensure a financial sound operation of the proposed power plant In order to evaluate the influence from changes in these factors a sensitivity analysis has been conducted with parameter variation from -10% to +10% with steps of 1%.
14.0%
12.0%
10.0%
IRR [% p.a.]
8.0%
IRR (CER= 8 Euro)

6.0%
4.0%
2.0%
IRR (CER= 0 Euro)
0.0% 270 273 276 279 282 285 288 291 294 297 300 303 306 309 312 315 318 321 324 327 330
Biomass price [RMB/tonne]
Figure 2. Biomass price, Variation of +/- 10% (Price used is 300 RMB)
16.00%
14.00%
IRR (CER= 8 Euro)

12.00%
10.00%
IRR [% p.a.]
8.00%
IRR (CER=0 Euro)

6.00%
4.00%
2.00%
0.00% 114750 116025 117300 118575 119850 121125 122400 123675 124950 126225 127500 128775 130050 131325 132600 133875 135150 136425 137700 138975 140250
Power generation connected to grid [MWh/year]
Figure 3. Power sold to grid, Variation of +/- 10% (amount used is 127,500 MWh/year)
Based on the different but reasonable variations of the three critical financial parameters is can be concluded that the there has to be either a 10% increase in the production of power (140,000 MWh/year) or 5% increase in power tariff (0.69 RMB/kWh) or 10% decrease in biomass price (270 RMB/ton) in order to make the project financial attractive for the investor if the revenue from CERs is not included.
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On the other hand then the above figure shows clearly that CER revenues will make the proposed project attractive compare with the usual rate of return (8%). Step 3 Barrier analysis Sub Step 3a Identify barriers that would prevent the implementation of type of the proposed project activity Investment barriers: Cost disadvantages compared to coal-fired power plants China is an enormous country with an abundant amount of biomass resources. However, until recently there has been no development of biomass power plants in China. In comparison with coal-fired power plants in China, the costs of building a biomass plant with same power generation capacity are much higher. Uncertainties in the green electric price policy in China. The kWhe price is the most important and critical parameter if biomass technology in the scale of 5 to 30 MWe has to be made viable. Although currently, the Chinese central government is encouraging the renewable energy utilization, the price list and transparent supervising system/mechanisms for any renewable energy laws or regulations for this green power generated from biomass power plants are not clear at the moment. The price for power wheeled into local or regional grid network is largely determined by the local commodities office. Risk of a new technology Furthermore, the high risks associated with this brand new technology implementation in China would in large scale influence the investment return payment. Especially for the first demonstration project in a national scope, there are even higher financial risks for the project developers. With reference to the same unit investment cost for coal firing power plants the investment return over time for the build of a biomass power plant of the same scale has a much longer investment return time. Technology barriers: To decide whether a biomass power plant is successful or not mainly depends on the availability of biomass materials. For the main reason that biomass source availability is highly subject to seasonal fluctuations due to the vagaries of the natural environment. Although, the project developer National Bio Energy Co., Ltd estimated the amount of the available bio fuel to be sufficient, in the long term continuous supply of sufficient quantities of biomass fuels is not assured over the life time of the plant. It is obvious that the viability of the biomass power plant is much less certain than that of fossil fuel plants, which could enjoy an assured and regulated supply of fuels; Biomass resources are widely dispersed in small quantities at the project site. Therefore, the collection and transportation of large amounts of biomass materials to the project site or the closest collection point becomes a constraint. Apart from this, then it is also expected that the expenses for collection and transportation will increase due to increased labour and transportation costs; Another major problem is the storage of biomass. Unlike the normal thermal power plant, a biomass firing plant has to consume much larger quantities of fuel, which is rather difficult to ensure during the operation period of the plants lifetime. The characteristics of biomass fuels change quickly within a short period of time. The most critical parameter is the calorific value decrease due to the volatility and deterioration of biomass, which affects the performance of the power plant equipment.
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For this reason, biomass material can not be stored for long periods. Fuels that enter the plants premises must be consumed on a first-come first-burn basis. It is not possible to stock biomass materials seasonally. In addition, the low bulk density (weight per unit volume) makes it difficult to handle and store biomass materials; The biomass price in the local market will continuously fluctuate because of seasonable variations, which results in very unstable expenditures for operation and power generation The biomass purchasing price is crucial for a sustainable operation process since approximately 70% to 80% of the estimated total operation cost come from purchasing bio fuel; Biomass power generation is a relatively new technology compared to the common technology for fossil fuel power plants, and at this stage no biomass power plants have been in operation in China. Therefore, the effects from combusting biomass during the plant life cycle is not known; The biomass power conversion efficiency is low compared to the efficiency of fossil fuel energy conversion; Due to the relatively small capacity of the plant, any change in the electricity tariff structure will greatly affect the plant's financial performance.
Barrier of the first of its kind type When the project was initiated, no other biomass power plant of this size had been constructed in China. Therefore, the project experienced a first of its kind barrier. This barrier contains some overlap with the technological barrier and commercial and financial barrier mentioned above. Sub Step 3b Show that the identified barriers would not prevent the implementation of at least one of the alternatives except the proposed The coal fired power technology is well developed, fully commercialised, is a mature technology, and is in fact the dominant technology. China is one of the countries with very rich coal resources, hence the previous technology and investment barriers of the proposed project activity will not be applicable to the coal fired power plants. Therefore, the identified barriers do not apply to at least one of the alternatives to the project scenario. Step 4 Common practice analyses The main purpose of this analysis is to compare the proposed project activity with the current common practice and to analyze whether the proposed project is not common practice in China. Sub Step 4a Analyze other activities similar to the proposed project There is no other biomass power plant or biomass cogeneration power plant built in China. The Shanxian project will function as a full scale test project for biomass generation in China. The technology used in the proposed project has not been used in China before, thus the project would introduce new technology to China and thereby promote the utilisation of renewable resources. It can be concluded that the proposed project is not common practice in China but a "first of its kind" project. Sub Step 4b Discuss any similar options that are occurring As already described in the statement above, currently there are no similar projects or proposed projects in China. Step 5 Impact of CDM registration
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Biomass power generation and cogeneration technology is a new energy utilization method in China. The successful implementation of this new project activity will depend on overcoming financial and technological challenges. The new technology will be introduced in cooperation with the Danish company BWE and other experienced Scandinavian companies. As for the CDM registration, it will be submitted in cooperation with the Danish Consulting Company COWI who will also monitor the technical and financial performance of this proposed project. Danish experts of the biomass boiler from BWE and other experienced Scandinavian companies would help to transfer the advanced biomass technology into the Chinese market, and speed-up transfer of technology to the local market. This involves necessary training in project development, plant operation, maintenance and biomass resource supplying chain. The CDM revenues will contribute to overcome the barriers mentioned above through reducing the financial and commercial risks of, and increasing the financial and commercial return to the project. B.6. >>
Emission reductions:
B.6.1. Explanation of methodological choices: Emission Reduction As described in the accompanying baseline methodology, the emission from grid electricity generation is considered for the baseline. ER y =ERelectricity,y + BE biomass,y - PEy - Ly where: ERelectricity,y are the emission reductions due to displacement of electricity of heat during the year y in tons of CO2; BE biomass,y are the baseline emissions due to natural decay of biomass during the year y in tons of CO2 equivalents; PEy are the project emissions during the year y in tons of CO2 Ly are the leakage emissions during the year y in tons of CO2 Project emissions It includes: CO2 emissions from transportation of biomass to the project site (PETy), CO2 emissions from on-site consumption of fossil fuels due to the project activity (PEFFy) and, where this emission source is included in the project boundary and relevant, CH4 emissions from the combustion of biomass (PEBiomass,CH4,y)
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GHG resources formulae
PE y = PET y + PEFFco 2, y + PE EC , y + GWPCH 4 PE BiomassCH 4, y
PET y =
BF
i
i, y
TL y
AVD y EFkm, CO 2
Factors PEy are project emission. PETy are the CO2 emissions during the year y due to transport of the biomass to the project plant in tons of CO2, PEEC,y are the CO2 emissions during the year y due to electricity consumption at project site that is attributable to project activity, PEFFCO2,y are the CO2 emissions during the year y due to fossil fuels co-fired by the generation facility in tons of CO2, GWPCH4 is the Global Warming Potential for methane valid for the relevant commitment period, PEBiomass, CH4,y are the CH4 emissions from the combustion of biomass during the year y. PETy: Project emissions from biomass transportation from collection points to the power plant(tCO2/year) BFi,y: Biomass type I purchased for the power plant (tonnes/year) TLy: Average truck load of transportation biomass(tonnes) AVDy: Average transportation distance from collection point to power plant (km) EFkm,CO2: CO2 emission factor for the fuel combustion in the transportation(tCO2/km)
Explanations According to IPCC 2006 guidelines, the CO2 emissions from the biomass combustion process are thought to the neutral carbon as the CO2 absorbed in the planting when planting. However, methane emission can not be ignored although the quantity is not large amount. The transportation from the collection points to power plant is monitored both the distance and emission factor for fuel consumption for the transportation.
PEFFy = ( FF projectplant ,i , y + FF projectsite ,i , y ) NCVi COEFi

i
PEFFy: Project emissions from fossil fuel used for start up at the power plant(tCO2/year) FFproject plant, i,y: Quantity of fossil fuel i combusted in the biomass residue fired power plant during the year y (tonne/year) FFproject site, i,y: Quantity of fossil fuel i combusted at the project site for other purposes that are attributable to project activity during the year y (tonne/year) NCVi: Net Calorific Value of fossil fuel type i (GJ/tonne). COEFCO2,i: CO2 emissions from type I fossil fuels utilized in power plant (tCO2/GJ)
Very small amount of additional auxiliary fossil fuel is needed for the boiler starting up, and this will not happen very frequently after the first starting up phase.
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PE EC , y = EC PJ , y EFgird , y
PE Biomass ,CH 4 = EFCH 4 BFi , y NCV i

i
PEEC,y are the CO2 emissions during the year y due to electricity consumption at project site that is attributable to project activity ECPJ,y:Onsite electricity consumption attributable to project activity during the year y, EFgrid,y: CO2 emission factor for grid electricity during the year y. PEBiomass,CH4: Project emissions from the power plant(tCO2/year) EFCH4: Biomass methane emission factor (tCH4/TJ) BFi,y: Biomass type I utilized in power plant (tonnes/year) NCVi: Net Calorific Value of type I biomass (TJ/tonnes)
Emission reductions due to displacement of electricity
ERelectricity , y = EG y EFelectricity , y
Where: ERelectricity,y are the emission reductions due to displacement of electricity during the year y in tons of CO2, EGy is the net quantity of increased electricity generation as a result of the project activity (incremental to baseline generation) during the year y in MWh, EFelectricity,y is the CO2 emission factor for the electricity displaced due to the project activity during the year y in tonsCO2/MWh. Step 1: Determination of EFelectricity,y The project activity displaces electricity from other grid-connected sources (P4). Apart from co-firing fossil fuels in the project plant, where relevant, electricity is not generated with fossil fuels at the project site. The emission factor for the displacement of electricity should correspond to the grid emission factor (EFelectricity,y = EFgrid,y) and EFgrid,y shall be calculated as a combined margin (CM) consisting of operating margin (OM) and building margin (BM) factors, following the guidance in the section Baselines in the Consolidated baseline methodology for grid-connected electricity generation from renewable sources (ACM0002), because the power generation capacity of this proposed biomass power plant is of more than 15 MW. Sub step1a Calculation of Operating Margin Emission factor EFOM,y Calculation of OM emission factor should be based on one of the following four methods: (a) Simple OM, or (b) Simple adjusted OM, or (c) Dispatch Data Analysis OM, or (d) Average OM.
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The method (c) If the dispatch data is available, method (c) should be the first methodological choice. This method requires the dispatch order of each power plant and the dispatched electricity generation of all the power plants in the power grid during every operation hour period. And it truly depicts the substitution relation between proposed CDM project activity and the operation of baseline grid, and also the corresponding emission reduction. This method requires the detailed operation and dispatch data of power plants in the grid. Because of the institutional reform of separating the plant operation from the grid operation in China, there is no publicly available information for the grids and power plants at all levels. As the North China Grid is a very large regional grid covering several provinces, it would certainly be difficult and costly to obtain the hourly dispatch data. Therefore, the method (c) is not applicable. The method (b), simple adjusted OM, requires the annual load duration curve of the power grid and the load data of every hour data during the whole year on the basis of the time order. Based on the same reason stated in the above paragraph, the necessary data for the method (b) are difficult to obtain, so the method (b) is not applicable. The method (d), average OM, is used when low-cost/must run resources constitute more than 50% of total amount of power generation in the grid. According to the data from NDRC, the total installed capacity of the North China Grid in 2004 is 96983.3MW, in which coal-fired installed capacity is 93594.9MW, accounting for 96.5%. Therefore, the North China Grid generation system is dominated by coal-fired power, and this fact will not change for the next many years. So the method (d) is not applicable.
Installed capacity and electricity supply on North China Grid, 2000-2004

Year Thermal 2000 2001 2002 2003 2004 95 95 96 96 97 Installed capacity (%) Hydro 5 5 4 4 3 Nuclear 0 0 0 0 0 Others 0 0 0 0 0 Total 100 100 100 100 100 Thermal 99 99 99 99 99 Electricity supplied (%) Hydro 1 1 1 1 1 Nuclear 0 0 0 0 0 Others 0 0 0 0 0 Total 100 100 100 100 100
Source: Calculated on basis of data in China Electric Power Yearbook, several years.
The Simple OM method (a) is used when low-cost/must run resources constitute less than 50% of total amount of power generation in: (1) Average of the five most recent years, or (2) Based on long-term normal for hydroelectricity production. Low operating cost and must run resources typically include hydro, geothermal, wind, low-cost biomass, nuclear and solar generation. If coal is obviously used as must-run, it should also be included in this list, i.e. excluded from the set of plants. From the description of method (d), the share of the low cost/must run resources in the North China Grid from 2001, 2002 and 2004 are 4.55%, 4.24%, and 3.49% from the data of NDRC, which meets the requirements of method(a). Therefore, it is reasonable to select the method (a) to calculate the OM emission factor. Therefore, method (a) is applicable for the proposed project.
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Fi,j,y: is the amount of fuel I consumed by relevant power sources j in year y. The index j runs over all EFOM , simple , y = power sources including imports, but excludes low GEN j , y and must run power plants in the connected grid j system selected in the proposed project activity. Fi , j , y NCVi EFCO 2,i OXIDi COEF : is the CO2 emission coefficient of fuel I, i,j,y i, j taking into account the carbon content of fuels used = GEN j , y by relevant power sources j and the percentage j osidation of the fuel I in year y GENj,y: is the electricity delivered to the grid by source j in year y NCVi: Net Calorific Value of type I of fuel utilized (TJ per mass) OXIDi: IPCC 2006 default values of oxidation factor of type I fuel utilized EFCO2,i: CO2 emission factor per unit of energy of the fuel i(tCO2/TJ)
i, j, y
F
i, j
COEFi , j
For the reason that project monitoring is using ex ante method, power data from the past recent three years are necessary to obtain from the China electric yearbook 2003, 2004 and 2005 which are statistics for power situation from 2002 to 2004. From the fuel consumption from relevant sources in North China Grid and the electricity generation by these sources, the average emissions from 2002 to 2004 could be obtained. These are divided by the total amount of energy generated, to give the emission rate per MWh. Based on the China National Development and Reformation Commission Climate Change Office Notice of Chinese Regional Grid Emission Factor, the simple OM emission factor of North China Grid is calculated as 1.0585 tCO2/MWh, to see Annex 3 for details. Sub Step 1b Calculation of Building Margin Emission Factor EFBM,y According to ACM0002, the BM calculation is defined as generation weighted average emissions factor of a sample of power plants. However, the data of individual power plant generation and fuel consumption is not available in China at present time. ACM0002 provides two options for sample group m: (1) The five power plants that have been built most recently, or (2) The power plants capacity additions in the electricity system that comprise 20% of the system generation (in MWh) and that have been built most recently. The one with larger annual generation should be used. Due to the reason that the information of the North China Grid on the five power plants built most recently is not available. Therefore, the most recently built 20% of the system generation of the new power plants capacity addition will be chosen as the sample group m to calculate BM. Based on the DNV
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deviation request 3 on this issue for Chinese projects, the use of capacity additions for estimating the BM emissions factor for grid electricity and the use of weights estimated using installed capacity to replace annual power generation in China are acceptable.
EFBM , simple , y
F COEF = GEN
i ,m, y i ,m m, y m
i ,m
Fi,m,y: is the amount of fuel I consumed by relevant power sources m in year y. The index m runs over all power sources including imports, but excludes low and must run power plants in the connected grid system selected in the proposed project activity. And the index m is over specific group of power plants rather than all types of power plants, and that low cost or must run sources are excluded. COEFi,m,y: is the CO2 emission coefficient of fuel I, taking into account the carbon content of fuels used by relevant power sources j and the percentage oxidation of the fuel I in year y GENm,y: is the electricity delivered to the grid by source j in year y
Therefore, instead of using data on fuel consumption and generation for individual sample power plants which are not available in China currently, the BM emission factor is calculated by using aggregate data by technology type to get the capacity additions to the connect grid in the past recently three years. Combining the methodology ACM0002 and calculation announced by NDRC, this proposed project uses a conservative alternative method to calculate EFBM,Y , and the formula is:
EFBM , y =
EFThermal , y CAPfire, y n , y
CAP
j
j , y n, y
y-n year;
j
CAPfire,y-n,y is the incremental installed capacity of fuel-fired power (MW) in y year compared to that of
CAP
j , y n, y
is the total incremental installed capacity of various power sources in the grid during the
years from y to y-n year;
CAP
j
CAPfire , y n , y
j , y n, y
represents the share of incremental installed capacity of fuel-fired power in the whole
incremental installed capacity. Where, n is fixed by: Starting from y year, the differences of installed capacity between y year and y-1 year, y year and y-2 year,y year and y-n year, y year and y-n-1 year, are calculated respectively, and then divided by the installed capacity of y year. The year that can make the left side of the following formula more than 20% will be regarded as n. The formula is as follows:
http://cdm.unfccc.int/UserManagement/FileStorage/6POIAMGYOEDOTKW25TA20EHEKPR4DM
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CAP CAP
j j
j , y n j,y
20%
EFThermal , y is the emission factor of fuel-fired power with Best Practiced Commercialized Technology
(BPCT). It can be calculated as following equation:
EFThermal = COAL * EFCOAL, Adv + OIL * EFOIL, Adv + GAS * EFGAS , Adv
COAL =
iCOAL , j
i, j , y
COEFi , j
F
i, j
i, j, y
* COEFi , j
Oil =
iOIL , j
i, j, y
COEFi , j * COEFi , j COEFi , j * COEFi , j
F
i, j
i, j, y
GAS =
iGAS , j
i, j, y
F
i, j
i, j, y
Fi,j,y is the amount of fuel I consumed by relevant power sources j province in year ytce; COEFi,j,y is the CO2 emission coefficient of fuel I, taking into account the carbon content of fuels used by relevant power sources j province and the percentage oxidation of the fuel I in year y. EFCOAL,AdvEFOIL,Adv and EFGAS,Adv is the emission factor of COAL, OIL, GAS-fired power with Best Practiced Commercialized Technology. These variables can be calculated as following table:
Variables
Power Supplying Efficiency A 36.53% 45.87% 45.87%
Fuel combustion factortc/Tj B 25.8 15.3 21.1
Oxidation Rate C 0.98 0.995 0.99
Emission Factor D=3.6/A/100 0*B*C*44/1 2 0.9136 0.4381 0.6011
Coal-fire power plant Gas-fire power plant Oil-fire power plant
EFCOAL,Adv EFGAS,Adv EFOIL,Adv
In addition, there is an assumption in this substitute calculation method: the average annual operational hours of non fuel-fired power plants are same as those of fuel-fired power plants. But the fact in China is, except nuclear power, the former is much less than the latter. Therefore, this substitute calculation method is conservative.
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Based on the China National Development and Reformation Commission Climate Change Office Notice of Chinese Regional Grid Emission Factor, the average BM emission factor of North China Grid is calculated as 0.9066 tCO2/MWh, see Annex 3 for details. Sub Step 1c Calculation of Baseline Emission Factor EFy The baseline emission factor is calculated as a Combined Margin, using a weighted average of the Operating Margin and Building Margin.
EFy = OM EFOM , y + BM EFBM , y 0.5 EFOM , y 0.5 EFBM , y
(1.0585 + 0.9066) = 0. 983tCO

2
MWh
The detailed calculation is in Annex 3. It is noticed that the data used for calculation of combined margin is shown in Annex 3 and section D. The main source of data is from NDRC. The default values utilized for the calculations of calorific values of fuel types and fuel oxidation rate are from the IPCC GHG Gas Inventory Reference Manual 2006. The baseline scenario for the proposed project is that electricity would have been generated, and the electricity demand met, by the operation of grid connected thermal power plants and by the addition of new fossil fuel based power generating. In the proposed project scenario the same power demand is met with the project power generation. Because the project uses a renewable source to produce electricity, and there are no additional emissions from the proposed project activity. Step 2: Determination of EGy According to the scenario identified for this proposed project as showed before, EGy corresponds to the net quantity of electricity generation in the project plant (EGy = EGproject plant,y), which is the same amount as the power fed into the grid by the proposed project activity. The plant own consumption and electricity imported from grid are already taken into the calculation of this parameter. Baseline emissions This methodology assumes that the biomass would have been burned in an uncontrolled manner for both baseline scenarios, natural decay or uncontrolled burning. The baseline emissions are calculated by multiplying the quantity of biomass that would not be used in the absence of the project activity with the net calorific value and an appropriate emission factor as following: BFi , y NCVi EFburning ,CH 4 ,i BEBiomass,y = GWPCH 4
There is no evident indication that large portion of the biomass resource would be reduced in the foreseeable future, the selected methodology uses the baseline emission as unused biomass open air burning which equals to the amount of biomass consumed in the proposed power plant. The baseline emission calculation is considered to be conservative because the methane emission from the natural decay processing of those equivalent biomass residues would cause greater GHG effect than CO2 emissions GHG effect from open air burning process. The more detailed calculation of baseline emission of unused biomass residues is in Annex 3. Leakage Estimation
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Based on the ACM0006, the following two alternatives are shown to estimate the leakage of the proposed project: Alternative 1: L1:Showing the current natural Demonstrate decay or open air burning that the biomass will continue to be biomass uncontrolled dumping without consumption proposed project performance of power L2:Demonstrate the amount of Ly =0 plant will not biomass surplus is far more than result in the project biomass demand increased amount fossil fuel L3:Showing the biomass consumption suppliers can not sell all their elsewhere. biomass to the project plant Alternative 2: If it is not possible to demonstrate that the L y = EFCO 2, LE BFPJ , k , y NCVk (tCO2) biomass consumption in the proposed project will not i result in an increased usage of more carbon intensive The leakage emissions during the year y fuels then the leakage emissions must be measured and equals to the CO2 emission coefficient per deducted from the net project emission reductions. energy unit of the most carbon intensive fuel utilized in the county multiply by the amount of type k biomass used as fuel in the project plant during the year y and multiply by the Net Calorific Value of biomass type k( per volume or mass).
Based on the ACM0006, L2: Demonstrate the amount of biomass surplus is far more than the project biomass demand amount, is chosen in the proposed project for demonstration that the quantity of available biomass residue of type k in the region is at least 25% larger than the quantity of available residues of type k that are utilized. Surplus of biomass in the region Type of biomass residue Bark Cotton stalk Paddy hull Peanut shell Branch Firewood residue Biomass that can be supplied (tonne) A 241,000 780,000 82,000 135,000 143,000 156,000 Biomass used by the plant (tonne) B 76,434 19,964 16,170 11,905 2,890 52,988 Biomass used for fertilizing, forage and cooking etc. (tonne) C 10,000 188,000 20,000 32,000 56,000 20,700 Biomass surplus (tonne) D=A-B-C 154,566 572,036 45,830 91,095 84,110 82,312 Surplus percentage (%) E=D/(B+C)*100% 179% 275% 127% 207% 143% 112%
The quantity of biomass that can be supplied, and biomass that is used for fertilizing, forage and cooking etc. are from the Biomass Supply / Demand Investigation Report in Shanxian County. As is listed in the
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above table, the quantities of available biomass of type k (k = cotton straw, paddy hull, peanut shell, bark, branch, firewood residue) in the region were all over 100% larger than the quantity of available residues of type k that were utilized. The conclusion is that the proposed power plant will not influence the present biomass utilisation and therefore not create any leakage It is at the same time anticipated that the current utilisation of residues will drop over the power plants life time due to increase income level for the local farmers and inhabitants around the plant. Project emission reduction estimation Total baseline emissions (+) Unused biomass baseline emission Electricity generation baseline emission Total project emissions (-) GHG emission from biomass combustion in the power plant GHG emission from fossil fuel combustion in the boiler GHG emission from biomass transportation Project Emission Reduction( =) Total baseline emissions - Total project emissions
The detailed calculations of combined emission factor, project emissions, baseline emissions, leakages are showed in Annex 3. B.6.2. Data and parameters that are available at validation: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the GWPCH4 tCO2e/tCH4 Global Warming Potential for CH4 IPCC 2006 default value 21 for the first commitment period.
Shall be updated according to any future COP/MOP decisions. EFOM tCO2/MWh Operating Margin Emission factor China National Development and Reformation Commission Climate Change Office Notice of Chinese Regional Grid Emission Factor. 1.0585
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choice of data or description of measurement methods and procedures actually applied : Any comment: Shall be updated according to DNA's official data updating. Data / Parameter: Data unit: Description: Source of data used: EFBM tCO2/MWh Building Margin Emission Factor China National Development and Reformation Commission Climate Change Office Notice of Chinese Regional Grid Emission Factor. 0.9066
Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Shall be updated according to DNA's official data updating. Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment:
NCVcotton GJ/tonne Net Calorific Value of type i biomass utilized in power plant China Energy Statistical Yearbook 2005 p. 366 15.89 Value for cotton is used. Because cotton will constitute the majority of bio-fuel delivered to the plant based on feasibility study report.
Shall be updated according to China Energy Statistical Yearbook new version. NCVwheat GJ/tonne Net Calorific Value of type i biomass utilized in power plant China Energy Statistical Yearbook 2005 p. 366 14.635 The Value for wheat straw is utilized from the China Energy Statistical Yearbook 2005. Since wheat straw could be utilized in the plant operation.
Shall be updated according to China Energy Statistical Yearbook new version.
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Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or
NCVpaddy,rice GJ/tonne Net Calorific Value of type i biomass utilized in power plant China Energy Statistical Yearbook 2005 p. 366 12.545 The Value for paddy rice straw is utilized from the China Energy Statistical Yearbook 2005. Since paddy rice could be utilized in the plant operation according to feasibility study report.
Shall be updated according to China Energy Statistical Yearbook new version. NCVmaize, GJ/tonne Net Calorific Value of type i biomass utilized in power plant China Energy Statistical Yearbook 2005 p. 366 15.472 Maize straw might be utilized in the proposed project activity according to feasibility study report.
Shall be updated according to China Energy Statistical Yearbook new version. EFCH4,i KgCH4/TJ Methane emission from biomass combusted in power plant IPCC 2006 default value 30 for the first commitment period.
IPCC value from the latest version published will be utilized EFburning,CH4,k,y KgCH4/TJ CH4 emission factor for uncontrolled burning of the biomass residue type k during the year y IPCC 2006 default value 300 for the first commitment period.
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description of measurement methods and procedures actually applied : Any comment: IPCC value from the latest version published will be utilized
Data / Parameter: Data unit: Description: Source of data used:
Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: IPCC value from the latest version published will be utilized Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment:
EFkm,co2 kg CO2/km Average CO2 emission factor for transportation of biomass with trucks IPCC 2006 default value from the Moderate Control index for the US heavy Duty Diesel Vehicle 1.011 for the first commitment period.
EFco2,FF,i tCO2/tonne CO2 emission factor for the fossil fuel type i combusted in plant Latest version of China Energy Statistics
This parameter is not taken into consideration. Because for the onsite fuel consumption calculation the Net Calorific Value and carbon content are utilized instead, furthermore for biomass transportation emission calculation the Emission Factor per kilometre is utilized instead. Detailed calculation in Annex 3. EFco2,LE tCO2/tonne CO2 emission factor of the most carbon intensive fuel J in the calculation of CM with the ACM0002 Latest version of China Energy Statistics Local or national data should be preferred. Default values from the China Energy Statistics or IPCC 2006 will be used alternatively and should be chosen in a most conservative manner. Otherwise, this parameter is not taken into the
Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of
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leakage calculation. measurement methods and procedures actually applied : Any comment: Minimal of two years after last issuance of CERs whenever the leakage exist. Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Net Calorific Value (NCVi) of fossil fuel combusted in plant TJ/tonne Net Calorific Value (NCVi) of fossil fuel combusted in plant Feasibility Study page 16 0.04187 The value for Diesel is used. But other values will be applied if other fuels are used.
The project entity appointed a third party laboratory under the supervision of Shandong Power Design Institution for the power plant. Fossil fuel carbon content (diesel) tC/TJ Fossil fuel carbon content (diesel) IPCC 2006 default value 20.2 for the first commitment period.
Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment:
IPCC value from the latest version published will be utilized
Data / Parameter: Oxidation Rate Data unit: Description: Oxidation Rate Source of data used: IPCC 1996 default value Value applied: 0.99 for the first commitment period. Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Moisture Content
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Description: Biomass moisture content Source of data used: Project feasibility study report P15 Value applied: 0.0961 for the first commitment period. Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: The moisture content of the biomass residues are taken into consideration in all the calculations of Proposed Project emission reduction. Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Measurement procedures (if any): Monitoring frequency: QA/QC procedures: Any comment: Data / Parameter: Data unit: Description: Source of data used: Measurement procedures (if any): Monitoring frequency: QA/QC procedures: Any comment: CO2/C Factor CO2/C Factor IPCC 2006 default value 3.67 44/12=3.67 based on molecule and atom weight of carbon and carbon dioxide.
Quantity of cotton residues that are utilized in the defined geographical region Tonnes Quantity of cotton residues that are utilized (eg for energy generation or as feedstock and all kinds of losts, etc) in the defined geographical region (1,346,000 tonnes in section B.6) Surveys or statistics and project feasibility study report Annually This parameter is applicable since approach L2 is utilized to rule out leakage. Quantity of cotton biomass residues in the region Tonnes Quantity of cotton residues in the region (2,236,000 tonnes in section B.6) Surveys or statistics and project feasibility study report Annually This parameter is applicable since approach L2 is utilized to rule out leakage.
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B.6.3. Ex-ante calculation of emission reductions: >> As described in the baseline information in Annex 3, the following greenhouse gas emissions are considered for the project activity: 1) Methane emissions from biomass utilized in the power plant 2) Biomass transportation emissions from collection points to power plant site 3) Carbon dioxide emissions from electricity consumption at the power plant 4) Emission from start-up/auxiliary fuel combustion in the boiler of the power plant onsite The above project emissions are calculated using the algorithms provided in the baseline methodology. An illustration of calculation methods is given in the following context. PE y = PET y + PEFFco 2, y + PE EC , y + GWPCH 4 PE BiomassCH 4, y (tCO2/year) The total Project emissions PEy are sum of project emissions from biomass combustion, transportation emissions, power consumption onsite and auxiliary fuel utilization in boiler as listed in the above equation. The detailed calculation explanation is demonstrated individually in the following sector. Project emission from biomass combustion It is estimated that approximately 22tonnes biomass residues will be combusted in the boiler per hour, and annual combustion amount reaches around 132,000 tonnes with 9.61% moisture content. Therefore the annual dry biomass combustion amount is 119,315 tonnes with a Net Calorific Value of 15.89 GJ/tonne for the mix fuel. Therefore, the assumed biomass combustion in the proposed power plant will result in the methane emissions of 1636 tCO2 annually. Methane emission factor is chosen same of wood/wood waste as biomass residues combustion in industrial stoker boiler is 30 Kg/TJ as IPCC 2006 default value. Moreover, the proposed technology is much more efficient than stoker boiler, the correction of the methane emission factor was set at 1.37, which is the lowest from the ones proposed by the baseline methodology. Project emission from transportation process There is around 5-7 days storage capacity for biomass in the power plant, and 8 collection points surround the power plant. The collection sites are chosen based on a balance between distance and resource availability. The distance from the collection points to the power plant varies from 6 km to 35km. The transportation of biomass from collection point to power plant ended up in the direct emission from the combustion of fuel in trucks. In order to calculate the CO2-emissions from the transportation of bio-fuel the longest return trip is chosen as the simplest and most conservative estimation. Thus 2*35 km is used as the average transportation distance. The truck load will roughly be 5 to 8 tonnes. The smallest truck load is selected since it takes more time to transport which is thought to be most conservative value. The carbon emission factors for large heavy load transportation truck in IPCC 2006 guideline is 1.011kg/km, which is selected from the Moderate Control Index for the US Heavy Duty Diesel Vehicle. The estimated GHG emissions from biomass transportation are 1,168 tCO2 annually. Detailed calculation tables are in Annex 3. Carbon dioxide emissions from electricity consumption at the power plant
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It is assumed that there are no power consumption onsite exported from the local grid at this stage, therefore this value is thought to be 0 for PDD calculation in Annex 3. However, the power meter is installed onsite to measure the actual power purchased from the grid. Project emission from diesel combustion in the boiler in plant It is expected that no more than 100 tonnes additional diesel per year would be required on site for starting up the boiler or for other purposes. The estimated emission from auxiliary diesel utilization on site is 307 tCO2 annually. Detailed calculation tables are in Annex 3. The quantity of auxiliary diesel is limited in the power plant mainly due to high heating value of biomass and high cost of diesel in market. The emission from the diesel combustion is quite small compared with other project emissions, but it is still taken into the calculations to keep it most conservative. According to the methodology selected: Pr ojectActivityEmissions y = EM p , y + L p , y It is estimated that there is no leakage of the project: Lp,y =0 Total project emission Therefore, Pr ojectActivityEmissions y = EM p , y = 3111 tCO2 per year Baseline emission Although there is abundance of biomass residues all over China, the mature commercialized biomass technology has not been well developed until recently. Normally the local farmers just leave the biomass for natural decay or burn it in open air only a small percentage of them use it for cooking, fertilizing or forage purposes. Based on the fact that a large portion of the uncontrolled dumped biomass is naturally decayed or burned in the open air, the open air burning was selected as the most conservative alternative in the baseline calculation. The natural decaying process of biomass will emit more carbon intensive gas which will cause higher GHG effects compared to open air burning. Thus, to keep the baseline calculation of the proposed project conservative, it is assumed that all the uncontrolled dumped biomass is directly burned in the open air. By the time the PDD is prepared and submitted, the calculated methane amount emitted to the atmosphere due to open air burning of the biomass residues in the absence of the proposed project is 4939 tCO2/year (see Annex 3 for details.) The annual power supply by the project to the North China Grid is 127,500 MWh The combined baseline emission factor of the North China Grid network is calculated as 0.983tCO2/MWh, Therefore the baseline emission of equivalent power generation is: 125,275 tCO2.
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The annual total baseline emissions are 130,214 tCO2 Net proposed project emission reduction Net proposed project emission reduction=Total baseline emissions - Total project emissions The annual total baseline emissions are: 130,214 tCO2 The annual total project emissions are: 3,111 tCO2 The annual net emission reductions are: 127,102 tCO2 The total net emission reductions in the first crediting period are: 889,716 tCO2 B.6.4. Summary of the ex-ante estimation of emission reductions: >> Year Estimation of project activity emissions (tonnes of CO2e) 1,945 3,111 3,111 3,111 3,111 3,111 3,111 1,167 21,780 Estimation of baseline emissions (tonnes of CO2e) 81,384 130,214 130,214 130,214 130,214 130,214 130,214 48,830 911,496 Estimation of leakage (tonnes of CO2e) 0 0 0 0 0 0 0 0 0 Estimation of overall emission reductions (tonnes of CO2e) 79,439 127,102 127,102 127,102 127,102 127,102 127,102 47,663 889,716
2007 2008 2009 2010 2011 2012 2013 2014 Total (tonnes of CO2e)
B.7. Application of the monitoring methodology and description of the monitoring plan: >> The monitoring methodology applied for this project activity is ACM 0006 "Consolidated Monitoring methodology for grid-connected electricity generation from biomass residues". This monitoring methodology could be found: http://cdm.unfccc.int/methodologies/approved. Approved consolidated monitoring methodology ACM0006, "Consolidated monitoring methodology for grid-connected electricity generation from biomass residues" is selected as the monitoring methodology in UNFCCC EB website. Option D.2.1 will be selected as option in this project. All the data collected for monitoring purpose are consist of generated power billing records, baseline emission parameters, and project emissions etc will be archived electronically and be kept at least 2 years after the end of the last crediting period of time.
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B.7.1. Data and parameters monitored:

>>
Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied:
BFk,y Tonne Quantity of dry biomass type k (k = cotton straw, paddy hull, peanut shell, bark, branch, firewood residue, and others) combusted in the project plant during the year y Project Records from Project Procurement department of plant 132,000 tonnes/year with 9.61% moisture content. Therefore the annual dry biomass combustion amount is 119,315 tonnes/year.
Use weight meters. Adjust for the moisture content in order to determine the quantity of dry biomass. The quantity shall be crosschecked with the quantity of electricity generated and any fuel purchase receipts (if available). Trucks carrying biomass will be weighed twice, upon entry and exit. Meters at the weighing station will undergo maintenance subject to national standard JJG907-2003. Any direct measurement with mass or volume meters at the plant site should be cross checked with an annual energy balance which again is based on purchased quantities and stock changes. The quantity of biomass type k combusted in the project plant is recorded equal as the quantity of biomass purchased. The different types of biomass combusted will be collected separately in the collection points. The data will be kept for minimum two years after last issuance of CERs Moisture content of the biomass residues % water content Moisture content of each biomass residue type k (k = cotton straw, paddy hull, peanut shell, bark, branch, firewood residue, and others) On-site measurements This value is taken into the consideration in the calculation already because in the project feasibility report about biomass collection, packaging and transportation investigation section, it is mentioned that moisture content of biomass residues are manually measured before purchasing. Type FD-G2 and type FD-100 moisture analyzers are utilized to measure the moisture contents of different biomass residues. The accuracies of each type are 1% and 0.5% individually. And the analyzers will be calibrated annually. Continuously monitored by moisture analyzer. Moisture content of the biomass residues will be both measured in collection point and in power plant.
Any comment:
Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied:
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QA/QC procedures to be applied: Any comment:
The moisture content of the biomass residues are taken into consideration in all the calculations of Proposed Project emission reduction. FFproject,plant,i,y m3 Fossil fuels utilized for boiler Project Records from Project Procurement department of plant and stored volume. 100 m3/year
Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment:
The amount of fossil fuels utilized in the power plant will be based on purchase receipts from relevant plant office and the amount of stored fuel on site in the beginning and end of verification period. The receipts from the fuel suppliers for the on site fossil fuel consumption will be checked with the data from the accounting department. The volume indicator will be manually checked. Minimal of two years after last issuance of CERs FFproject,site,i,y tonne or m3 per year Quantity of fossil fuel type i combusted at the project site for other purposes that are attributable to the project activity during the year y Project Records from Project Procurement department of plant and stored volume. 0
Use volume meters. Any type of fossil fuel consumption in the project site will be continuously monitored and recorded. The data will be cross-checked by purchase receipts. Cross-check the measurements with an annual energy balance that is based on purchased quantities and stock changes. This should not include fossil fuels co-fired in the project plant but any other fuel consumption at the project site that is attributable to the project activity (e.g. for mechanical preparation of the biomass residues). Minimal of two years after last issuance of CERs AVDy
Data / Parameter:
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Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment:
Km Average transport distance for a return trip from collection point to power plant site. Transport operator records and records in power plants gate reception 35*2
Distance travelled will be continuously recorded during the reception of the biomass trucks. The collection point from where the individual trucks are coming will be noted The records submitted by the trucks will be compared to the distance between the plant and the biomass collection points and the record from the reception. Minimal of two years after last issuance of CERs Ny Number of trucks for the transportation of biomass Transport operator records -
Since the transportation distance of each truck is continuously recorded on the plant reception by the individual invoice from each coming collection point, therefore the total amount of truck numbers are recorded continuously correspondingly. The number of trucks will be checked with the record from the gate reception and the collection points. This parameter is taken into consideration for calculating the emission from transportation process. TLy Tonne Average truck load of the trucks used for transportation of biomass Transport operator records -
Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5
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Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment:
Transport operator records
This parameter is not taken into the consideration due to the reason that AVDy and Ny are enough to determine the project emissions from transportation process as showed in the above tables. NCVk (k = cotton straw, paddy hull, peanut shell, bark, branch, firewood residue, and others) GJ/tonne Net Calorific Value of type k biomass utilized in power plant China Energy Statistical Yearbook 2005 p. 366 for emission reductions calculation in B.5, and laboratory measurements during monitoring period. 15.890 for cotton straw. In the first monitoring period, the NCV for biomass residues is tested by Analysis and Test Centre of Shandong Province, which is an authorized by China National Accreditation board for Laboratories to test biomass residues. The NCV for cotton straw, paddy hull, peanut shell, bark, branch, firewood residue are 18.053, 14.237, 15.230, 17.493, 14.330 and 11.617 respectively. The net calorific value of straws (k= cotton straw and any other types of straws that may be utilized in the project plant) shall be carried out at reputed laboratories and according to relevant international standards. Measure the NCV based on dry biomass. Three samples (dry matter) should be analysed at the same time by the test institution and reported. And the average of NCV of these samples should be used in the emission reduction calculation. The analysis will be made every six months. Consistency of the measurements with the China Energy Statistical Yearbook will be checked, if the measurements results differ significantly from values on China Energy Statistical Yearbook, additional measurements will be conducted. Minimal of two years after last issuance of CERs NCVwheat GJ/tonne Net Calorific Value of type i biomass utilized in power plant China Energy Statistical Yearbook 2005 p. 366
Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied:
Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of
14.635 The Value for wheat straw is utilized from the China Energy Statistical Yearbook
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measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment:
2005. Since wheat straw could be utilized in the plant operation.
Shall be updated according to China Energy Statistical Yearbook new version. Minimal of two years after last issuance of CERs NCVpaddy,rice GJ/tonne Net Calorific Value of type i biomass utilized in power plant China Energy Statistical Yearbook 2005 p. 366
Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment:
12.545 The Value for paddy rice straw is utilized from the China Energy Statistical Yearbook 2005. Since paddy rice straw could be utilized in the plant operation.
Shall be updated according to China Energy Statistical Yearbook new version. Minimal of two years after last issuance of CERs NCVmaize GJ/tonne Net Calorific Value of type i biomass utilized in power plant China Energy Statistical Yearbook 2005 p. 366
15.472 The Value for maize straw is utilized from the China Energy Statistical Yearbook 2005. Since maize straw could be utilized in the plant operation.
Shall be updated according to China Energy Statistical Yearbook new version. Minimal of two years after last issuance of CERs EFCH4,i
Data / Parameter:
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Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment:
KgCH4/TJ Methane emission from biomass combusted in power plant IPCC 2006 default value 30 for the first commitment period.
Shall be updated according to IPCC latest version. Minimal of two years after last issuance of CERs EFburning,CH4,k,y KgCH4/TJ CH4 emission factor for uncontrolled burning of the biomass residue type k during the year y IPCC 2006 default value 300 for the first commitment period.
Shall be updated according to IPCC latest version. Minimal of two years after last issuance of CERs EFkm,co2 kg CO2/km Average CO2 emission factor for transportation of biomass with trucks IPCC 2006 default value from the Moderate Control index for the US heavy Duty Diesel Vehicle 1.011 for the first commitment period.
Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in
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section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment:
Shall be updated according to IPCC latest version. Minimal of two years after last issuance of CERs EFco2,FF,i tCO2/tonne CO2 emission factor for the fossil fuel type i combusted in plant Latest version of China Energy Statistics
This parameter is not taken into consideration. Because for the onsite fuel consumption calculation the Net Calorific Value and carbon content are utilized instead, furthermore for biomass transportation emission calculation the Emission Factor per kilometre is utilized instead. Detailed calculation in Annex 3. EFco2,LE tCO2/tonne CO2 emission factor of the most carbon intensive fuel in the calculation of CM with the ACM0002 Latest version of China Energy Statistics
Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to
Local or national data should be preferred. Default values from the China Energy Statistics or IPCC 2006 will be used alternatively and should be chosen in a most conservative manner. Otherwise, this parameter is not taken into the leakage calculation.
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be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used:
Minimal of two years after last issuance of CERs whenever the leakage exist. Net Calorific Value (NCVi) of fossil fuel combusted in plant TJ/tonne Net Calorific Value (NCVi) of fossil fuel combusted in plant Feasibility Study page 16 0.04187 The value for Diesel is used. But other values will be applied if other fuels are used.
Minimal of two years after last issuance of CERs.
Tons Quantity of biomass residues of type k (k = cotton straw, paddy hull, peanut shell, bark, branch, firewood residue, and others) that are utilized (eg for energy generation or as feedstock) in the defined geographical region Surveys or statistics from local agricultural bureau if national statistics is not available
Annually
This parameter is applicable since approach L2 is utilized to rule out leakage. Tons Quantity of biomass residues of type k (k = cotton straw, paddy hull, peanut shell, bark, branch, firewood residue, and others) in the region Surveys or statistics from local agricultural bureau if national statistics is not available
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Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment:
Annually
This parameter is applicable since approach L2 is utilized to rule out leakage. FTrans, I,y Tonne Fuel consumption of fuel type i used for transportation of biomass Transport operator records -
This parameter is not taken into consideration based on the formula we choose for calculating the emission from transportation process. FFproject plant,I,y GJ/tonne Onsite fossil fuel consumption of fuel type i for co-firing in the project plant Latest version of IPCC values -
Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to
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be applied: Any comment:
This parameter is not applicable since it is not planned to co-firing other types of fossil fuel in the proposed project. Quantity of steam diverted from other boilers to the project plant MWh Quantity of steam diverted from other boilers to the project plant -
Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied
Not applicable due to no heating utilization in the proposed project activity. Average net efficiency of steam generation in the plant(s) from Average net efficiency of steam generation in the plant(s) from where steam is diverted to the project plant. -
Not applicable due to no heating utilization in the proposed project activity. EGproject,plant,y MWh Net quantity of electricity generated in the project plant during the year y. Project Records of onsite measurements. 127,500MWh
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for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied:
QA/QC procedures to be applied:
Any comment:
There are 5 electricity meters installed at the plant, as it is indicated and numbered in the figure in Annex 4,2 meters maintained by the local power grid to record generation and supply power, another 3 maintained by the plant to record power generation, own power consumption and purchased power. The power fed into the grid should be equal to the power generation minus own consumption and electricity purchased from the grid. The accuracy of all the power meters installed in plant is 0.5s. Meters will undergo maintenance/calibration subject to national power industry standard DL/T 448-2000. The accuracy of the meter readings will be verified by receipts issued by the purchasing power company, a national or regional authority in most cases. And the local technical and supervision bureau will calibrate and issue the authorized reports annually. Quality control of this data is beyond the control of the project operators. This involves the use of official data released by the power generating company. EGproject,plant,y is the gross power supply as metered on the high voltage end of the transformer minus power taken from the grid. Minimal of two years after last issuance of CERs ECPJ,y MWh On-site electricity consumption attributable to the project activity during the year y Project Records of onsite measurements.
Not applicable since this parameter could be calculated by the power generation amount, power supplied to the grid and power purchased from the grid. Qproject plant, y MWh Net quantity of heat generated from firing biomass in the project plant Project Records
Data / Parameter: Data unit: Description: Source of data to be used:
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Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: B.7.2.
Not applicable since there is no heat planned to utilize in the proposed project
Description of the monitoring plan:
>> National Shanxian Bio Energy Co., Ltd is the daughter company of National Bio Energy co.,Ltd, located in Shanxian. And the staff from this company will conduct the monitoring procedures based on the monitoring methodology chosen for the proposed project activity. The chosen monitoring methodology is thought to be most accurate and conservative which guarantees that the recording of the emission reductions and leakages is valid and verifiable. There will be a CDM Quality Control Office under the administration of the Production Department in Shanxian. The meters for biomass purchasing and power production connected to the grid will be calibrated on regular intervals as required by local Quality and Supervision Bureau. Additionally, the selected monitoring staff of Shanxian Bio Energy will be trained to collect and record the monitoring data as well as formalizing monitoring report annually. Due to the situation of deviation in the monitoring data found during the data acquisition, the monitoring engineers will try to find the reason for the deviation and take the remedial measures as soon as possible. Once the default is identified, the Production Department will introduce a correction to the default. The monitoring engineers have to report such irregular event to the Division Head of the Production Department through daily report. The monitoring data such as all kinds of tables for different monitoring parameters and reports will be processed and stored in the plant CDM office, and will be sent periodically to the National Bio Energy Co. Ltd headquarter in Beijing for Quality Assurance and final processing as well as Backup. The following table shows the responsibilities for carrying out the monitoring plan after the operation of proposed power plant. Main technical Contact Person: Liu Chengjiang supervision Address: National Shanxian Bio Energy Co., Ltd, Shanxian economy and technology development zone of Heze City, Shandong Province, P.R.China Phone: 0086-13665308788 Email: lcj@nbe.cn Data acquisition (Continuously, monthly and annually) Contact Person: Lin Hai Address: National Shanxian Bio Energy Co., Ltd, Shanxian economy and technology development zone of Heze City, Shandong Province, P.R.China Phone: 0086-13675408696 Email: lh@nbe.cn
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Emission Reduction calculation (monthly and annually) Main monitoring supervision (Continuously)
Contact Person: Yu Tao Address: National Shanxian Bio Energy Co., Ltd, Shanxian economy and technology development zone of Heze City, Shandong Province, P.R.China Phone: 0086-13853088656 Email: yt@nbe.cn Contact Person: Zhao Chengyu Address: National Shanxian Bio Energy Co., Ltd, Shanxian economy and technology development zone of Heze City, Shandong Province, P.R.China Phone: 0086-13605306197 Email: zcy@nbe.cn
B.8. Date of completion of the application of the baseline study and monitoring methodology and the name of the responsible person(s)/entity(ies) >> Date of completion: 19/02/2007 Ms MA Jingjing COWI Consulting (Beijing) Co.,Ltd Maizidian Street 37, Sunflower Tower 2010, Chaoyang District, Beijing 100026, P.R.China Phone: 0086 10 8527 6973 Fax: 0086 10 8527 6974 Email: jjm@cowi.com Mr XIANG Zheng COWI Consulting (Beijing) Co.,Ltd Maizidian Street 37, Sunflower Tower 2010, Chaoyang District, Beijing 100026, P.R.China Phone: 0086 10 8527 6972 Fax: 0086 10 8527 6974 Email: xiaz@cowi.com These experts have been supported by experts implementing the Danish CDM Project Development Facility in China.
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SECTION C. Duration of the project activity / Crediting period C.1 Duration of the project activity: C.1.1. Starting date of the project activity: >> 12/10/2005
C.1.2. Expected operational lifetime of the project activity:

>> 22 years C.2 Choice of the crediting period and related information: >> C.2.1. Renewable crediting period >> C.2.1.1. >> 15/05/2007 C.2.1.2. >> 07 years 00 months. Length of the first crediting period: Starting date of the first crediting period:
C.2.2. Fixed crediting period: C.2.2.1. >> Not applicable. C.2.2.2. >> Not applicable. Length: Starting date:
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SECTION D. Environmental impacts D.1. Documentation on the analysis of the environmental impacts, including transboundary impacts: >> The Environmental Impact Assessment report was approved by the State Environmental Protection bureau in September 2004. The main social and environmental impacts of the project are obviously positive both in economical aspects and with concern to the human health factor. The current practice of direct burning of the straw pollute the local atmosphere heavily, however most of the unneeded amount of straw that are not utilized is just dumped next to the road or in the fields. This apparently affects the local environment in a negative manner. Air: The boiler was produced domestically under the technical supervision of Danish biomass engineers from BWE for this project. The implemented Danish advanced soot reduction technology can reduce 99,6% of the soot emissions generated in this project power plant. The output concentration of the soot emissions from the soot reduction equipment is only 1,15% that of the allowed State Standard Emission. Furthermore, it is not needed to treat the flue gas before emitted to the air due to its low sulfur content. The sulfur dioxide output concentration is only one forth of the allowed State Standard together with much lower emission amount. The Danish technology guaranteed that the output soot emissions can meet the national environmental standard well without any additional treatments. Water: The largest amount of waste water comes from cooling towers, boiler-washing, and onsite households. There are separate piping system for household wastewater, industrial wastewater and rain water. The household wastewater will be used for irrigation after the treatment in wastewater treatment plant. Noise: The low noise equipments are selected during the plant design, and the necessary noise-reducing measurements are implemented as well. The noise inside the power plant and the outside plant border meet the National Standards GB 3096-93 and GB12348-90 II level respectively. Solid Waste: The ash from the boiler is the main resource for solid waste generation in the power plant and all of it will be treated and will be returned to the field as fertilizers. All the environmental factors such as listed above will be monitored in the power plant, and specified staff will be in charge of monitoring the emissions individually. 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 environmental impacts of Shandong Shanxian 25MW Biomass power plant is not considered significant.
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SECTION E. Stakeholders comments >> According to the requirement by the Measures for Operation and Management of Clean Development Mechanism Projects in P.R.China, a project survey has been conducted for the local villagers and residents representatives. The local municipality and related stakeholders were invited to submit the comments on the proposed biomass power plant. E.1. Brief description how comments by local stakeholders have been invited and compiled: >> Comments on the construction of the proposed biomass power plant are required by local municipality and the construction company through a serious of means of informal discussions, hearing of witnesses, public consultations and visits to guarantee a successful implementation of the proposed project with the interests of stakeholders being taken into account. The socio-economic aspects and environmental aspects are both taken into the consideration in the survey. The questionnaire is designed as following table and easy to be filled as the main purpose: Yes No Other opinions Is the proposed project generally good in the socioeconomic and environmental aspects for their life? Do you think its harmful to the local ecological environment and social life? Are there any negative impacts on their livelihoods during the plant construction period? Do you have positive attitude for the local transportation after the proposed project implementation? Do you have positive attitude for the local ecosystem harmonization? Do you think the project site is a good location or not? Do you support the proposed project in general idea? Do you think it's beneficial to your income consequently? Do you think the proposed project is good for local environment improvement in general? Signature of questionnaire: Filling Date:
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E.2. Summary of the comments received: >> The local project developer which is National Shanxian Bio Energy Co.,Ltd had sent out 100 questionnaires to the surrounding relative stakeholders, and most of them are local residents living in the project area. All the questionnaires are received under the support of local municipality. It is found that more than 85% of the stakeholders answering the questionnaires show a positive attitude to the proposed biomass power plant. The majority of the local farmers living in Shanxian county are not exactly aware of biomass technology, however what they could understand is they do not need to burn the huge amount of biomass residues every period of time in the fields. In addition, they could get some revenues from the current dumping of biomass straws and might be able do some part time jobs in the power plant or collecting points. Moreover there will be less fire threats due to the open fires of straws everywhere around the village. Generally, the opinion is that the stakeholders believe that the project can improve the local and regional economic and environmental situation. In addition, the project contributes to the county's sustainable development. As a matter of fact, the proposed project mitigates the GHGs emissions significantly, and the emissions from the proposed plant could reach the National Environmental Standards as well. As the first biomass power plant implemented in China, National Development and Reformation Commission approved the project in January 2005, and State Environmental Protection Agency made the Environmental Impact Assessment report for the proposed project. Local key stakeholders such as Shandong provincial EPA, Heze EPA, Shandong Power Company, Shandong meteorological agency etc. have cooperated to approve this 1*25MW biomass direct burning power plant in Shanxian County. The general translations of these documents are as following: Shandong Shanxian 1*25MW biomass power plant is a renewable energy utilization demonstration project in China which turns biomass resources into power generation. The proposed biomass utilization project can: Lessen the energy crisis pressure on the economic growth utilize the current wasted resources as renewable energy purposes promote the local economic development provide the new job opportunities and increase the local income enforce the Chinas new renewable policy through development and implementation Therefore, it is fully approved that the construction of the proposed project activity and National Shanxian Bio Energy Co.,Ltd. will develop the project successfully to promote the energy, economic and environmental development of Shanxian County. E.3. Report on how due account was taken of any comments received: >> All the comments received have been integrated into the project feasibility study phase and design, which strongly show a positive attitude of support to the construction and implementation of the project. Moreover, the local municipality and all stakeholders agreed that the proposed project would improve local economic development. Consequently, there will be no reason to modify the proposed project plan due to the comments received.
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Annex 1 CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY The project entity Organization: Street/P.O.Box: Building: City: State/Region: Postfix/ZIP: Country: Telephone: FAX: E-Mail: URL: Represented by: Title: Salutation: Last Name: Middle Name: First Name: Department: Mobile: Direct FAX: Direct tel: Personal E-Mail: National Bio Energy Co.Ltd Jianguomengnei Avenue 18 Hedersen Centre Room 1611 Beijing Dongcheng District 100005 P.R.China 0086-10-65181692 0086-10-65181655 gx@nbe.com
CDM Project Manager Ms Guo Xin
As above As above As above
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The buyer Organization: Street/P.O.Box: Building: City: State/Region: Postfix/ZIP: Country: Telephone: FAX: E-Mail: URL: Represented by: Title: Salutation: Last Name: Middle Name: First Name: Department: Mobile: Direct FAX: Direct tel: Personal E-Mail: The Ministry of Foreign Affairs Asiatisk Plads 2 Copenhagen K DK-1448 Denmark +45 33 92 00 00 +45 32 54 05 33 um@um.dk Sren Lutken Counsellor Mr. Lutken Sren The Embassy of Denmark, San Li Tun, Dong Wu Jie 1, Beijing 100600, Peoples Republic of China
+ 86 (10) 85 32 99 00/+86 (10) 85 32 99 21 soelue@um.dk
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Annex 2 INFORMATION REGARDING PUBLIC FUNDING >> There is no public funding from Annex I countries for the construction of the Shanxian biomass power plant project. The only public funding from the Annex I countries is for the preparation of the PDD, which is financed by the Danish Ministry of Foreign Affairs.
No existing official development assistance (ODA) from Annex I countries is involved in the proposed project.
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Annex 3 BASELINE INFORMATION
page 60
Table A 1. 2002 North China Power Grid OM Fuel Unit Beijin g Tianji n Hebei Shanxi Inner Mongolia Shan dong Total of Fuel Emission Factor Oxidati on Rate Average low Caloric Value(MJ7t,m3,t ce) (MJ/t,km3) J 20908 26344 8363 28435 16726 5227 41816 43070 42652 41816 50179 46055 38931 38369 28435 0 Total CO2 emisson(tCO2e)
tc/TJ A raw coal cleaned coal other washed coal coke coke oven gas other coal gas crud oil gasoline diesel fuel oil LPG Refinery gas Natural gas other petroleum products Other coke products other energy Mtons Mtons Mtons Mtons 1010m3 1010m3 Mtons Mtons Mtons Mtons Mtons Mtons 1010m3 Mtons Mtons Mtonstce 1.1 15.92 0.55 0.27 0.02 0.26 13.94 2.35 0.04 4.12 1.22 1.6 0.42 0.17 15.82 1.71 7.34 0.75 0.16 10.35 14.98 0.65 10.02 20.33 0.04 3.43 65.2 135.56 691.8 4 B 1052.7 C 4988.1 D 4037.4 E 3218 F 5162. 9 80.71 106.3 2 G=A+B+C +D+E+F 19150.84 80.71 310.51 0 2.83 33.51 14.98 0.65 18.35 35.95 0 0.27 0.57 0 0 17.02 H 25.8 25.8 25.8 29.5 13 13 20 18.9 20.2 21.1 17.2 18.2 15.3 20 25.8 0
% I 98 98 98 98 99.5 99.5 99 99 99 99 99.5 99.5 99.5 99 98 0
K=G*H*I*J*44/12/10 000(Masse Unit) K=G*H*I*J*44/12/10 00 (Volume Unit) 371208174.5 1971179.968 2407436.829 0 224500.0238 830739.3673 454769.0717 19206.87269 573896.3513 1151411.233 0 8256.698951 123867.2104 0 0 0 378973438.1
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Table A 2. 2002 North China Grid Coal Firing Power Generation Electricity Electricity Plant own Province Generation Generation consumption 10^10 kWh) Beijing Tianjin Hebei Shanxi Inner Mongolia Shandong Total 178.86 272.63 1009.7 822.56 513.82 1241.62 MWh) 17886000 27263000 100970000 82256000 51382000 124162000 % 7.95 7.08 6.72 7.98 7.93 6.79
Power Supplying to Grid MWh) 16464063 25332779.6 94184816 75691971.2 47307407.4 115731400.2 374712437.4
Table A 3. 2002 North China Power Grid OM Power Supplying to North East China GridMWh North East China Grid total emissiontCO2e North East China Grid emission factor tCO2/MWh 2002 North East China Grid OM tCO2/MWh 138139813 Electricity from North East Grid to North GridMWh Power Supplying to North China GridMWh Total Power Supplying to North East China GridMWh 2905200 Total emission tCO2e 382216597
154209495 1.1163291
374712437 377617637
1.0121789
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Table A 4. 2003 North China Power Grid OM Fuel Unit Beiji ng Tianj in Hebei Shan xi Inner Mongoli a Shando ng Total of Fuel Emissio n Factor tc/TJ H 25.8 25.8 25.8 29.5 13 13 20 18.9 20.2 21.1 17.2 18.2 15.3 20 25.8 0 Oxidati on Rate Average low Caloric Value(MJ7t,m3, tce) (MJ/t,km3) J 20908 26344 8363 28435 16726 5227 41816 43070 42652 41816 50179 46055 38931 38369 28435 0 Total CO2 emisson(tCO2e)
% I 98 98 98 98 99.5 99.5 99 99 99 99 99.5 99.5 99.5 99 98 0
K=G*H*I*J*44/12/10000 (Masse Unit) K=G*H*I*J*44/12/1000 (Volume Unit) 436822883.4 229820.3878 5680747.688 84397.73393 244332.1814 977500.8431 901037.7869 295.490349 436286.327 826325.7251 0 33638.40313 343351.2148 0 0 0 446580617.2
A raw coal cleaned coal other washed coal coke coke oven gas other coal gas crud oil gasoline diesel fuel oil LPG Refinery gas Natural gas other petroleum products Other coke products other energy Mtons Mtons Mtons Mtons 1010m 3 1010m 3 Mtons Mtons Mtons Mtons Mtons Mtons 1010m 3 Mtons Mtons Mtonstce 9.83 714.7 3 6.31
B 1052. 7
C 5482. 6 67.28
D 4528. 5 208.2 1 0.9
E 3949.32
F 6808 9.41 450.9
G=A+B+C+D+ E+F 22535.94 9.41 732.7 2.8 3.08 39.43 29.68 0.01 13.95 25.8 0 1.1 1.58 0 0
0.24 16.92
1.71 10.63
2.8 0.21 10.32
0.02 1.56 29.68 0.01 5.4 10.07 0.83 1.08
0.29 13.95
1.35 0.02
4 1.11 0.27
2.91 0.65
0.5
39.21
49.04
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Table A 5. 2003 North China Grid Coal Firing Power Generation Province Electricity Generation kWh) 186.08 321.91 1082.61 939.62 651.06 1395.47 Electricity Generation MWh) 18608000.00 32191000.00 108261000.00 93962000.00 65106000.00 139547000.00 Plant own consumption % 7.52 6.79 6.50 7.69 7.66 6.79 Power Supplying to Grid MWh) 17208678.40 30005231.10 101224035.00 86736322.20 60118880.40 130071758.70 425364905.80
Beijing Tianjin Hebei Shanxi Inner Mongolia Shandong Total
Table A 6. 2003 North China Power Grid OM Power Supplying to North East China Grid MWh North East China Grid total emissiontCO2e North East China Grid emission factor tCO2/MWh 2003 North East China Grid OM tCO2/MWh 153809752.1 Electricity from North East Grid to North Grid MWh Power Supplying to North China Grid MWh Total Power Supplying to North East China Grid MWh 4244380 Total emission tCO2e 451291526.4
170716049.7
425364906
1.109916942
429609286
1.050469674
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Table A 7. 2004 North China Power Grid OM Inner Mongolia Total of Fuel Average low CO2 Emission Oxidation Caloric emisson(tCO Factor Rate Value(MJ7t,m3,tce) 2e) K=G*H*I*J* 44/12/10000( tc/TJ % (MJ/t,km3) Masse Unit) K=G*H*I*J* 44/12/1000 (Volume Unit) 527776527.1 976919.8208 5783167.065 6631.250523 1232766.915 1687509.064 0 184209.7825 474656.87 0 60243.32197 121694.1015 0 0 0 538304325.3
Fuel
Unit
Beijing
Tianjin
Hebei
Shanxi
Shandong
A raw coal cleaned coal other washed coal coke coke oven gas other coal gas crud oil diesel fuel oil LPG Refinery gas Natural gas other petroleum products Other coke products other energy Mtons Mtons Mtons Mtons 1010m3 1010m3 Mtons Mtons Mtons Mtons Mtons 1010m3 Mtons Mtons Mtons-tce 9.41 0.39 14.66 0.55 17.74 6.48 823.09
B 1410
C 6299.8
D 5213.2
E 4932.2
F 8550 40
G=A+B+ C+D+E+F 27228.29 40 745.91 0.22
H 25.8 25.8 25.8 29.5 13 13 20 20.2 21.1 17.2 18.2 15.3 20 25.8 0
I 98 98 98 98 99.5 99.5 99 99 99 99.5 99.5 99.5 99 98 0
J 20908 26344 8363 28435 16726 5227 41816 42652 41816 50179 46055 38931 38369 28435 0 Total
101.04
354.17 0.22
284.22
0.54 24.25
5.32 8.2
0.4 16.47
8.73 1.41
15.54 68.07 0
0.84
4.66 0.16
5.89 14.82 0
0.55 0.37
1.42 0.19
1.97 0.56 0 0
34.64
109.73
4.48
158.26
page 65
Table A 8. 2004 North China Grid Coal Firing Power Generation Province Electricity Generation 10^10 kWh) 185.79 339.52 1249.7 1049.26 804.27 1639.18 Electricity Generation MWh) 18579000 33952000 124970000 104926000 80427000 163918000 Plant own consumption % 7.94 6.35 6.5 7.7 7.17 7.32 Power Supplying to Grid MWh) 17103827.4 31796048 116846950 96846698 74660384.1 151919202.4 489173109.9
Beijing Tianjin Hebei Shanxi Inner Mongolia Shandong Total
Table A 9. 2004 North China Power Grid OM Power Supplying to North East China GridMWh North East China Grid total emission tCO2e North East China Grid emission factor tCO2/MWh 2004 North East China Grid OM tCO2/MWh 170132885.1 Electricity from North East Grid to North Grid MWh Power Supplying to North China GridMWh Total Power Supplying to North East China Grid MWh 4514550 Total emission tCO2e 543504173.1
195958648.6
489173110
1.1518
493687660
1.100906944
Table A 10. Average North China Grid OM year Power supplying to gridMWh 377617637.4 429609285.8 493687659.9 1.0584955 Total emission tCO2e 381966512.95 451232601.58 543813991.80 OM tCO2/MWh 1.0121789 1.050469674 1.100906944
2002 2003 2004 Average OM tCO2/MWh
page 66
Table A 11. Emission factor of Best Practiced Commercialized Technology Variable Power Supplying Efficiency A 36.53% 45.87% 45.87% 0.910467 Fuel Emission Factor B 25.8 15.3 21.1 Oxidatio n Rate C 0.98 0.995 0.99 Emission Factor D=3.6/A/1000*B*C*44/12 0.9136 0.4381 0.6011 99.30% 0.58% 0.12% 2004 CO2 Emission amount i
Coal Firing power plants Gas Firing Power Plants Oil Firing Power Plants Thermal Emission Factor (tCO2/MWh)
EFCOAL,Ad
v
EFGAS,Adv EFOII,AdV EFThermal
Table A 12. Installed Capacity 2004 in North China Grid Installed Capacity Coal Hydro Nucler Wind Force and Others Total Unit MW MW MW MW MW Beijing 3458.5 1055.9 0 0 4514.4 Tianjin 6008.5 5 0 0 6013.5 Hebei 19932.7 783.8 0 13.5 20730 Shanxi Inner Shandon Total Mongoli g a 17693.3 13641.5 32860.4 93594.9 787.3 0 0 18480.6 567.9 0 111.8 14321.2 50.8 0 12.4 32923.6 3250.7 0 137.7 96983.3
Table A 13. Installed Capacity 2002 in North China Grid Installed Capacity Unit Beijing Tianjin Hebei Shanxi Coal Hydro Nucler Wind Force and Others Total MW MW MW MW MW 3407.5 1038.5 0 0 4446 6245.5 5 0 0 6250.5 16745.7 775.9 0 13.5 17535.1 14327.8 795.3 0 0 15123.1
Inner Mongolia Shandong Total 9778.7 592.1 0 76.6 10447.4 25102.4 50.8 0 0 25153.2 75607.6 3257.6 0 90.1 78955.3
page 67
Table A 14.Installed Capacity 2001 in North China Grid Installed Capacity Unit Beijing Tianjin Hebei Coal Hydro Nucler Wind Force and Others Total MW MW MW MW MW 3412.5 1058.1 0 0 4470.6 5632 5 0 0 5637 16474.9 742.6 0 9.9 17227.4
Shanxi 13415.8 795.9 0 0 14211.7
Inner Mongolia Shandong Total 8898.3 566.2 0 46.7 9511.2 20957.7 56.2 0 0 21013.9 68791.2 3224 0 56.6 72071.8
Table A 15. North China Grid BM Installed Capacity in 2001 A Coal Hydro Nucler Wind Force and Others Total Installed capacity comparing to 2004 capacity Thermal Emission Factor (tCO2/MWh) 68791.3 3224 0 56.6 72071.9 74.31% Installed Capacity in 2002 B 75607.6 3257.6 0 90.1 78955.3 81.41% Installed Capacity in 2004 C 93594.9 3250.7 0 137.7 96983.3 100.00% 0.9066431 2001-2004 Incremental Capacity Installation D=C-A 24803.6 26.7 0 81.1 24911.4 99.58% 0.10% 0.00% 0.32% 100.00% New Installed Capacity Percentages in the total Capacity Incrementation
0.9104671 North China Grid BM (tCO2/MWh)
Table A 16. Calculation of combined emission factor OM factor (tCO2/MWh) BM factor (tCO2/MWh) Combined Emission Factor (tCO2/MWh) Table A17. Electricity gereration baseline emissions Parameter Unit A B C D Project installed capacity Annual power generation Baseline Emissions Factor Electricity generation baseline emissions MW MWh tCO2/MWh tCO2/year
1.0585 0.9066 0.983
Amount 25 127,500 0.983 125275
Source of Equation Feasibility Study Feasibility Study Table A8 D=B*C
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Table 18 Unused biomass baseline emission A B Parameter Biomass demond Moisture content of biomass 9.61% C Dry Biomass weight tonne/year C=A*(1-B) Unit tonne/year Amount 132,000 Source or Equation Feasibility Study Page 15 Feasibility Study Page 15
119,315 D Biomass Net calorific Factor (NCV)* Methane Emission Factor in agriculture or forestry Conservativeness factor 0.73 F G Global Warming Potential of CH4 Unused biomass baseline emissions tCO2/year 4939 21 tCH4//t ACM0006 Version04, page 40, 2006IPCC Vlume 4, Table 2.5. 0.0027 ACM0006 Version04, page 40. IPCC 2006 default value G= C*D*E*F
Table A 19. Total Baseline emissions Parameter Unit tCO2/year A Unused biomass baseline emissions B Electricity generation baseline emissions C Total Baseline emission tCO2/year tCO2/year
Amount 4939
Source or Equation Calculations Calculations
125275 130214
C=A+B
Table A 20. GHG emissions from biomass combustion in the power plant Parameter Unit Amount Source or Equation tonne/year A Biomass demond 132,000 Feasibility Study Page 15 Feasibility Study Page 15 B Moisture content of biomass 9.61% C Dry Biomass weight D Biomass Net calorific Factor (NCV) tonne/year 119,315 TJ/tonne 0.01589 China Energy Statitical Yearbook 2005 p. 366 C=A*(1-B)
page 69
E Methane Emission Factor (controlled Burning) F Conservativeness factor
KgCH4/TJ 30
IPCC 2006 default value Baseline Methodology page 20 1.37 IPCC 2006 default value 21
G Global Warming Potential of CH4 H GHG emissions from biomass combustion
tCO2/year 1636
H= C*D*E*F*G/1000
Table A 21. GHG emissions from fossil fuel Parameter Unit tonne/year A Fossil fuel (diesel) used in the boiler B Fossil fuel Net Calorific Value (NCV) C Fossil Fuel carbon content D Fraction of carbon oxidized E CO2/C conversion factor F GHG emissions from fossil fuel combustion TJ/tonne tC/TJ
Amount 100
0.04187 20.2 0.99 3.67 307
Source or Equation Storage capacity in feasibility Study page 45 is 100m3, here we use 100 tonnes for conservative purpose. Feasibility Study page 16 IPCC 2006 default value IPCC 1996 default value IPCC 2006 default value F=A*B*C*D*E
tCO2/year
Table A 22. GHG emissions from biomass transportation to the power plant Parameter Unit Amount Source or Equation tonne/year 132,000 Feasibility Study Page 15 A Biomass Demand B Average load per trip C Longest distance between storage site and the power plant D Emission Factor of truck transportation tonne Km kg/km 8 35 1.011 Biomass transportation contract 2006.1 - page 2 Biomass transportation contract 2006.1 - page 2 IPCC 2006 default value from the Moderate Control index for the US heavy Duty Diesel Vehicle E=(A/B)*C*2*D/1000
E GHG emissions from biomass transportation
tCO2/year
1168
page 70
Table A 23. Total Project Emissions Parameter Unit A GHG emissions from biomass tCO2/year combustion B GHG emissions from fossil fuel combustion C GHG emissions from biomass transportation D GHG emissions from imported electricity consumption onsite E Total Project emissions tCO2/year
Amount 1,636
Source or Equation Calculation Calculation
307 tCO2/year 1,168 tCO2/year 0 3111 Assumed to be equal to 0 for calculation. E=A+B+C+D Calculation
tCO2/year
Table A 24. Project emission reduction Parameter Unit tCO2/year A Total Baseline emission B Total Project emissions C Project Emission Reduction tCO2/year tCO2/year
Amount 130214 3111 127102
Source or Equation Calculations Calculations C=A-B
page 71
Annex 4 MONITORING INFORMATION The monitoring plan is designed for the 25MW Shanxian Biomass Power Plant in Shandong Province, P.R.China. This monitoring plan, which will be registered with the CDM EB as a part of a Project Design Document, describes the parameters and variables, monitoring practices, QA and QC procedures, data storage and archiving etc. Project participants should implement this monitoring plan right from the starting day of the proposed project.
Biomas Storage
Power Plant
Boilerhouse
Turbine Electricity meter 5 +/- 0.5s Electricity meter 4 +/- 0.5s Weights +/- 20 kg Transformers Electricity meter 2 +/- 0.5s
Own consumption Electricity meter 3 +/- 0.5s Transformers Electricity meter 1 +/- 0.5s Connected to North China power grid
Trucks with biomass
As it is indicated and numbered in the above figure, the electricity meters 2 and 4 are installed and maintained by the local grid company as measuring the power fed into the grid and power generation respectively. And the electricity meters 1, 3 and 5 are used for measuring purchased power amount, own consumption and power generation individually. Quantity of biomass purchased The quantity of biomass fuel purchased will be measured, recorded and monitored from starting point in the project i.e. at the entry of the project premises. The biomass fuel truck details shall also be noted as
page 72
mentioned in the format. The plant should have a computerized weighing system through which truck of the biomass fuel will pass through. Truck with biomass fuel must be weighted if without weighing the biomass fuel at the collection point. The weighing system will be calibrated and sealed regularly as per the prevailing practices. Total power generated The total power generated by the plant will be measured in the plant premises to the best accuracy and will be recorded and monitored on the continuous basis. And all instruments will be calibrated at regular intervals. Quality Assurance and Quality Control The quality assurance and quality control process for recording, maintaining and archiving data should be ensured through the CDM mechanisms in terms of the need for verification of the emissions on an annual basis according to Project Design Document and Monitoring Report. All the above parameters monitored under monitoring plan will be kept for 2 years after the end of the crediting period or the last issuances of CERs for this project activity, whichever occurs later. The monitored data will be presented to the verification agency or DOE to whom verification of emission reduction is assigned. Necessary formats / tables / log sheets etc will be developed by the project participants for monitoring and recording of the data and will be made part of the registered monitoring protocol.

25 MW Biomass Plant China - CDM

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.

CDM Executive Board

Firewood residue in this PDD is defined as residue from wood processing.

Figure 1 Shanxian 1*25MW Biomass Direct Burning Power Plant Overview

SECTION B. Application of a baseline and monitoring methodology:

Option III benchmark analysis

With CERs revenue Without CER revenues

Data input for financial sensitivity analysis:

Total Investment Biomass Consumption Emission Factor

294,184,100 RMB/year 22 tonnes/hour 0.983 tons CO2/MWh

IRR (CER= 8 Euro)

IRR (CER= 0 Euro)

Biomass price [RMB/tonne]

IRR (CER= 8 Euro)

IRR (CER=0 Euro)

Power generation connected to grid [MWh/year]

GHG resources formulae

PE y = PET y + PEFFco 2, y + PE EC , y + GWPCH 4 PE BiomassCH 4, y

PEFFy = ( FF projectplant ,i , y + FF projectsite ,i , y ) NCVi COEFi

PE Biomass ,CH 4 = EFCH 4 BFi , y NCV i

Emission reductions due to displacement of electricity

Installed capacity and electricity supply on North China Grid, 2000-2004

years from y to y-n year;

COEFi , j * COEFi , j COEFi , j * COEFi , j

Power Supplying Efficiency A 36.53% 45.87% 45.87%

Fuel combustion factortc/Tj B 25.8 15.3 21.1

Oxidation Rate C 0.98 0.995 0.99

Emission Factor D=3.6/A/100 0*B*C*44/1 2 0.9136 0.4381 0.6011

Coal-fire power plant Gas-fire power plant Oil-fire power plant

EFCOAL,Adv EFGAS,Adv EFOIL,Adv

EFy = OM EFOM , y + BM EFBM , y 0.5 EFOM , y 0.5 EFBM , y

(1.0585 + 0.9066) = 0. 983tCO

Shall be updated according to China Energy Statistical Yearbook new version.

Data / Parameter: Data unit: Description: Source of data used:

IPCC value from the latest version published will be utilized

B.7.1. Data and parameters monitored:

QA/QC procedures to be applied: Any comment:

Transport operator records

2005. Since wheat straw could be utilized in the plant operation.

Minimal of two years after last issuance of CERs.

be applied: Any comment:

QA/QC procedures to be applied:

Data / Parameter: Data unit: Description: Source of data to be used:

Description of the monitoring plan:

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

CDM Project Manager Ms Guo Xin

As above As above As above

+ 86 (10) 85 32 99 00/+86 (10) 85 32 99 21 soelue@um.dk

Annex 3 BASELINE INFORMATION

% I 98 98 98 98 99.5 99.5 99 99 99 99 99.5 99.5 99.5 99 98 0

% I 98 98 98 98 99.5 99.5 99 99 99 99 99.5 99.5 99.5 99 98 0

D 4528. 5 208.2 1 0.9

F 6808 9.41 450.9

2.8 0.21 10.32

0.02 1.56 29.68 0.01 5.4 10.07 0.83 1.08

Beijing Tianjin Hebei Shanxi Inner Mongolia Shandong Total

G=A+B+ C+D+E+F 27228.29 40 745.91 0.22

I 98 98 98 98 99.5 99.5 99 99 99 99.5 99.5 99.5 99 98 0

Beijing Tianjin Hebei Shanxi Inner Mongolia Shandong Total

2002 2003 2004 Average OM tCO2/MWh

EFGAS,Adv EFOII,AdV EFThermal

Shanxi 13415.8 795.9 0 0 14211.7

Emission Factor D=3.6/A/100 0BC*44/1 2 0.9136 0.4381 0.6011