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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 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 CDM – Executive Board
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SECTION A. General description of project activity A.1. Title of the project activity: >> Feed Switch from FO/LSHS to Natural Gas for Ammonia & Urea Manufacture at Panipat 1 Version -1 Date: 1st September 2011

A.2.

Description of the project activity:

>> National Fertilizers Limited (NFL) is one of the leading producers of Nitrogenous Fertilizers in India. NFL is presently operating a ammonia and urea plant at Panipat in India the feed stock / fuel used at the plant is Heavy Fuel Oil/Low Sulphur Heavy Stock. Coal is used for captive power and steam generation. The support / auxiliary fuel used in the coal fired boiler is the heavy oil. The project activity involves switching of feed stock and support fuel from Heavy fuel oil to Natural Gas. Project activity will involve modifications/changes in ammonia reforming section and the associated utilities. The objective of the project activity is to shift to the lesser carbon intensive feed stock and support fuel for production of ammonia which leads to reduction in GHG emissions Pre Project Scenario In the pre project scenario, Heavy fuel oil is used as the feed stock and support fuel for production of ammonia. Heavy oil is gasified with oxygen (produced separately in an air separation unit) and steam to produce the gaseous streams consisting H2, CO2, CO, Ar and other inert gases. Heat contained in this hot gas stream is recovered in the waste heat boiler. Subsequently CO2 is separated from the gaseous stream and argon and other inert gases are removed from the stream. Nitrogen from the air separation unit is added back to the gaseous stream to get the synthesis gas having hydrogen to nitrogen ratio of 1:3 (molar ratio). The synthesis gas is then made to react in the ammonia reactor to produce ammonia. Heavy oil is also used as a support fuel in the combined heat and power plant. Post Project Scenario After the implementation of project activity, Natural gas will be used as the feed stock and support fuel. The technology for production of ammonia using natural gas as the feedstock is different from the existing technology and this will require process changes in existing equipment as well as incorporation of new processes like Methanation section, etc. In the process of changeover from Heavy oil to Natural Gas, key physical changes which will be incorporated in the ammonia plant for the implementation of project activity are as follows: • A new Desulphurizer section will be installed • A new primary reformer and secondary reformer will be installed • A new S-300 convertor will be installed in the existing synthesis loop • A new CO2 removal/ recovery unit(MDEA wash) will be installed • A new Methanation section will be installed • A new Synthesis booster compressor will be installed • A new Medium pressure(40K) loop boiler in synthesis loop will be installed

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

Natural gas Pipeline network will be established in the plant along with the necessary instrumentation The existing CO2 compressor will be modified and material of construction of the compressor will be modified to handle moisture Instrumentation will also be upgraded accordingly

Switching over from High Carbon intensive feed stock to lower carbon intensive feed stock will reduce the generation of excess CO2 and hence will reduce the GHG emissions to the atmosphere for the same quantity of production of ammonia. In case of support fuel also, switching over from higher carbon intensive fuel to lower carbon intensive fuel will reduce GHG emissions of CO2 for the same level of output in the boilers. In the absence of the project activity, NFL would have continued to use heavy oil as feed stock and continued with the current practice of operation. The pre project scenario is continuation of operation with heavy oil as feed stock is the baseline scenario. Contribution to Sustainable Development The National CDM Authority (NCDMA) which is the Designated National Authority (DNA) in the Ministry of Environment and Forests (MoEF) has stipulated four indicators for sustainable development in the interim approval guidelines for Clean Development Mechanism (CDM) projects from India. The contribution of this project activity towards sustainable development in terms of these four indicators is provided below: Social well being: The project activity results in the generation of direct and indirect employment. This employment generation will be during the implementation stage of the project activity as well as during operation and maintenance of the project activity. The employment will be generated for lying down of gas pipeline. In the absence of the project activity, no such employment would have been generated. Economic well being: The project implementation will provide a fillip to economic activity in the region. Direct & indirect employment will be generated in the plant for the project implementation & management. Environmental well being: The natural gas being a cleaner hydrocarbon feed stock generates lesser pollution to the atmosphere. Natural Gas is also having a lower sulphur content compared to Heavy oil and hence generates lesser SOx to the atmosphere. Technological well being:

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board
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The technology for production of ammonia which will be used for project is the world class and will lead to reduction in the consumption of hydrocarbons for the production of same volume of ammonia. Thus the technology will also lead to the consequent reduction in the emissions of heavy metals, particulates and other pollutants associated with the use of hydrocarbons. A.3. Project participants: >> Name of Party involved (*) ((host) indicates a host party)

Private and/or public entity (ies) Project participants (*) (as applicable) National Fertilizers Limited

Government of India (host party) A.4.

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

Technical description of the project activity:

A.4.1. Location of the project activity: >> Panipat, India A.4.1.1. >> Government of India Host Party(ies):

A.4.1.2. Region/State/Province etc.: >> State: Haryana A.4.1.3. City/Town/Community etc.: >> Panipat A.4.1.4. Details of physical location, including information allowing the unique identification of this project activity (maximum one page): >> The proposed CDM project activity is located in National Fertilizers Limited, District Panipat, Haryana State, India. The nearest airport is Indira Gandhi International airport New Delhi and nearest railway station is Panipat railway station. The location map is given below.

Category(ies) of project activity: >> The project activity switches high carbon intensive feed stock and support fuel to lower carbon intensive feed stock and support fuel and hence reduces the GHG emissions to the atmosphere for the same production of ammonia.PROJECT DESIGN DOCUMENT FORM (CDM PDD) . Panipat. Gohana Road. NFL Plant Geo .Coordinates: 29°21'30"N 76°57'40"E A.Version 03 CDM – Executive Board page 5 Plant Address: National Fertilizers Limited. According to the CDM modalities. Haryana-132106. the project activity falls under .4.2.

The CO2 is then separated from the main gaseous stream in the CO2 recovery section. Technology to be employed by the project activity: >> National Fertilizers Limited has hired M/sHalder Topse. Argon and other inert gases and these traces are removed before production of ammonia in the synthesis reactor. Hydrogen and Nitrogen. National Fertilizer Limited has incorporated all necessary safety features which are required for the safe operation of the plant. The gaseous stream also contains some traces of CO. boilers.PROJECT DESIGN DOCUMENT FORM (CDM PDD) .Version 03 CDM – Executive Board page 6 Approved Large scale methodology AM0050. who is the world renowned technology provider in fertilizer plant and have provided technology to many of the fertilizer units in India and abroad. • Conversion of synthesis gas to Ammonia in a reactor • Separation of ammonia and recycling of the unreached synthesis gas back to the ammonia reactor Apart from these main operations mentioned above the auxiliary operations in typical ammonia plant may include the following: • Use of waste heat for generation of steam • Onsite generation of power and balance steam in combined heat and power plant leading to emissions of GHG • Operation of boilers for generation of process steam leading to emissions of GHG In the reforming section. Pre Project Scenario In the scenario prior to the implementation of Project activity. Chemical Industry of the UNFCCC sectoral scope list for project activities. A.3. In the production process of ammonia using hydrocarbons as feed stock involves following sequential steps: • Reforming of hydrocarbon with steam and oxygen / air followed by separation of carbon dioxide and other impurities from the output gaseous stream of the reformer to produce synthesis gas. The generation of ammonia using Heavy oil as feed involves following steps: • Gasification of heavy oil • CO Shift • CO2 recovery section • Ammonia Synthesis The process diagram shown below gives the details about the process equipment and various GHG emissions sources in the existing practice of heavy oil as feed stock . The Purpose of Project activity is to adopt a cleaner and efficient technology and reduce the GHG emissions by switching over of feed and support fuel from heavy oil to natural gas. The project activity corresponds to sectoral scope 5. hydrocarbon feed is reformed to make CO2.4. The change over from heavy oil to natural gas will reduce GHG emissions due to reduced generation of CO2 in the reformer section. Heavy oil is used as feedstock for the reforming.

A detailed residual life cycle assessment was carried out by National Fertilizers Limited and all the existing units had adequate lifetime. The generation of ammonia using Natural Gas as feed involves following steps: • Feed gas compression.Utility CO2 Emission . The decision taken by NFL Panipat is based on the urge to adopt the cleaner and efficient technology which will reduce consumption of hydrocarbons and hence the GHG emissions for the same volume of production. pre heating and desulphurization section • Primary and Secondary Reforming • Process air compression • CO Shift conversion • CO2 recovery section • Methanation section • Dryer and Purifier section • Ammonia Synthesis . GHG emissions due to import of power from Grid. Post Project Scenario In the scenario after the implementation of Project activity. Natural Gas will be used as a source of feed and support fuel for the production of ammonia. GHG emissions from the utilities like steam generators.Heat CO2 Hot Gas Stream Combined Heat and Power(CH P) Plant / Process Boilers / Waste Heat Recovery Boilers Waste Heat Recovery Separation of CO2 Synthesis Gas Ammonia Reactor Ammonia Urea Production Pre Project Scenario Urea Emission .PROJECT DESIGN DOCUMENT FORM (CDM PDD) .Grid CO2 Power From / To Grid Emission – Feedstock CO2 In Excess of that used for Urea Production The main GHG emission sources are emissions due to venting of Excess CO2 over and above used for urea production .Version 03 CDM – Executive Board page 7 Fossil Fuel for Boilers (coal) Heavy Fuel Oil Supply Header / Hydrocarbon Storage Bunker Auxiliary / Support Fuel Feed / Fuel Gasifier Air Emission .

Grid CO2 Power From / To Grid Emission – Feedstock CO2 In Excess of that used for Urea Production The main GHG emission sources at after the project activity remains the same however the emission intensity reduces. keeping the existing off site and utilities for production of ammonia. List of new section that will be added for the implementation of CDM project activity are as follows: • Desulphurization section • Modification in the reformer section • CO2 removal/recovery unit (MDEA wash) • Methanation section • Synthesis gas booster compressor .Utility CO2 Emission .Version 03 CDM – Executive Board page 8 • Loop purge ammonia recovery • Ammonia refrigeration • Process condensate stripper The process diagram shown below gives details about the process equipment and various GHG emissions sources after implementation of project activity with Natural Gas as feed stock and support fuel. The project activity is being implemented in an existing ammonia production unit and involves replacement of the existing front end section of ammonia plant with integration to existing back end section of ammonia plant with a new S -300 convertor and MP boiler.Heat CO2 Hot Gas Stream Combined Heat and Power(CH P) Plant / Process Boilers / Waste Heat Recovery Boilers Waste Heat Recovery Separation of CO2 Synthesis Gas Ammonia Reactor Ammonia Urea Production Post Project Scenario Urea Emission .PROJECT DESIGN DOCUMENT FORM (CDM PDD) . Fossil Fuel for Boilers (coal) Natural Gas Supply Header / Hydrocarbon Storage Bunker Auxiliary / Support Fuel Feed / Fuel Gasifier Air Emission .

PROJECT DESIGN DOCUMENT FORM (CDM PDD) .4. Emission reduction due to the project activity would happen due to lower carbon intensity of Natural gas. A.Version 03 CDM – Executive Board page 9 • • • • • S-300 convertor Medium Pressure loop boiler in synthesis loop Ammonia recovery unit MP process condensate stripper Natural gas pipeline network The list of equipment that will become redundant/replaced after the implementation of project activity are as follows: • Oxygen generation plant and its associated utilities • Front section of Ammonia plant • Rectisol unit of CO2 removal • Heavy oil storage section and piping network In the absence of the project activity.4. Estimated amount of emission reductions over the chosen crediting period: >> The estimated amount of emission reduction due to the proposed project activity for the ten (10) years under fixed crediting period option would be 4517960 tCO2e as per details on annual emission reductions provided below: Years 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020 -21 2021-22 Total estimated reductions (tonnes of CO2e) Total number of crediting years Annual average over the crediting period of estimated reductions (tonnes of CO2e) Annual estimation of emission reductions in tonnes of CO2 e 451796 451796 451796 451796 451796 451796 451796 451796 451796 451796 4517960 10 years (Fixed) 451796 . NFL Panipat would have continued to use current practice of heavy oil as feed stock and support fuel hence pre project scenario is also the baseline scenario.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) . .Version 03 CDM – Executive Board page 10 A. However. the design capacity of ammonia plant may increase marginally (say maximum up to 10 % of the design capacity) and remain same throughout the crediting period due to the need for line balancing.. Application of a baseline and monitoring methodology B. Version XX. ammonium nitrate etc. AM0050 – VersionXX) as follows Applicability Condition as per the approved methodology The project activity is carried out in an ammonia plant. where.5.unfccc. SECTION B. name plate capacity of ammonia plant will remain within the prescribed limits as defined in the methodology hence this condition is applicable. ammonia is sold as a merchant product or converted to derivatives e. Ammonia manufacturing plants that are not prevented by local regulations from using feedstock and /or fuel other than natural gas Project activities that do not result in the increase of the production capacity of ammonia plant. In the Project scenario.html). Title and reference of the approved baseline and monitoring methodology applied to the project activity: >> The title of the baseline and monitoring methodology applicable to the proposed project activity is “Technology up-gradation and / or Fuel / Feed switch in integrated Ammonia manufacturing industry”--Version XX”.int/methodologies/PAmethodologies/approved. Reference: AM0050.4. urea. AM0050 (Version XX) draws upon the following tools. Public funding of the project activity: >> There is no public funding involved in the proposed CDM project activity.2.e. which have been used in the PDD: • Combined tool to identify the baseline scenario and demonstrate additionality • Tool to calculate the emission factor for electricity system B. It has been referred from the list of approved methodologies for CDM project activities in the UNFCCC CDM website (http://cdm.g. Sectoral Scope: 05. Justification of the choice of the methodology and why it is applicable to the project activity: >> The proposed CDM project activity is a feed and a support fuel switch over from heavy oil to natural gas and meets the applicability and non-applicability conditions of the chosen methodology (i. This is required to be validated by the validating DOE by Scenario in the Project activity The project activity is carried out in an existing ammonia plant hence this condition is applicable to project activity The project activity does not prevented by any local regulation to switch to Natural gas and hence this condition is applicable to project activity.1.

. . there could be price-inelastic supply constraints (e. NFL has signed a long term MOU with Gas Authority of India Limited(GAIL) for the reliable and continuous supply of Natural Gas and hence there will be ample gas available for the project activity. The capacity for different product types and mix before and after the implementation of project activity remains same hence this condition is applicable Although Project activities may result in changes in the production process but there is no change in the capacity and product mix to produce different product types e.Version 03 CDM – Executive Board page 11 validating the design capacity of the ammonia reactor before and after the project. NFL is operating this plant since 1974. variation of up to 5%) B. Prior to the implementation of the project activity.g.g. future natural gas based capacity additions.PROJECT DESIGN DOCUMENT FORM (CDM PDD) . . it is important for the project proponent to document that supply limitations will not result in significant leakage as indicated. thus leading to possible leakage. 1 Description of the sources and gases included in the project boundary: In some situations. Hence. percentage of ammonia used for production production of Urea will not decrease hence this of urea historically should not decrease (except minor condition is applicable.g. Natural gas is sufficiently available in the region or country. e. are not constrained by the use of natural gas in the project activity1.3. the proportion of a particular type of product produced in the total product mix should remain same before and after the implementation of project activity. The last three year production details will be made available to DOE during validation hence this condition is applicable. limited resources without possibility of expansion during the crediting period) that could mean that a project activity displaces natural gas that would otherwise be used elsewhere in an economy. comparable in size to the project activity. no natural gas has been used in the ammonia manufacturing plant No Natural Gas has been used prior to the start of project activity hence this condition is applicable In case of historic use of ammonia for the production The percentage of ammonia consumed for the of urea. The ammonia manufacturing plant is an existing plant with a historical operation of at least three years prior to the implementation of the project activity.

the spatial extent of the project boundary includes the ammonia plant and power generation plant. Excluded for simplification. they are excluded for simplification.Heat CO2 Hot Gas Stream Combined Heat and Power(CH P) Plant / Process Boilers / Waste Heat Recovery Boilers Waste Heat Recovery Separation of CO2 Synthesis Gas Ammonia Reactor Ammonia Ammonia Storage /Derivative Production Project Boundary Ammonia / Ammonia Derivative Emission .Grid CO2 Power From / To Grid Emission – Feedstock CO2 In Excess of that used for Derivatives Source Gas CO2 CH4 Processing of feedstock Baseline N2O CO2 Fuel used in furnaces (thermal energy) CH4 N2O Included? Justification / Explanation Yes Main emission source.PROJECT DESIGN DOCUMENT FORM (CDM PDD) .Version 03 CDM – Executive Board page 12 >> According to the approved methodology AM0050 (Version xx. Therefore. this is conservative. These emissions (if any) would be essentially the same as in the project activity. this is conservative. Excluded for simplification.Utility CO2 Emission . Fossil Fuel for Boilers Hydrocarbon Feedstock /Fuel Supply Header / Hydrocarbon Storage Bunker Auxiliary / Support Fuel Feed / Fuel Gasifier / Reformer Air Emission . Yes Depending upon the process technology used in the baseline it may be a main emission source (flue gases) due to the combustion of fossil fuel to provide thermal energy for feed treatment (sulphur removal in hydrotreater and primary desulphurization unit and the synthesis-gas production). No Not applicable. No No . CO2 is produced in the reforming of the feed No Negligible fugitive CH4 emissions may occur during the processing of the feed.

These emissions are expected to be the same or lower as compared to the baseline scenario. These emissions are expected to be the same or lower as compared to the baseline scenario. CO2 is produced in the reforming of the feed and may be partially recovered for the production of ammonia . These emissions are expected to be the same or higher as compared to the project scenario. No These emissions are expected to be the same or higher as compared to the project scenario. These emissions are expected to be the same or lower as compared to the baseline scenario. Main emission source. Any CO2 recovered from flue gases resulting from combustion of fossil fuel is deducted from this emission source.Version 03 CDM – Executive Board page 13 Source Gas CO2 Included? Justification / Explanation Yes Main emission source. Excluded for simplification and because this is conservative. These emissions are expected to be the same or lower as compared to the baseline scenario. Excluded for simplification and because this is conservative. Excluded for simplification and because this is conservative. Main emission source. Excluded for simplification and because this is conservative. Not applicable Main emission source due to the combustion of fossil fuels. Main emission source These emissions are expected to be the same or higher as compared to the project scenario. they are excluded for simplification. Main emission source.PROJECT DESIGN DOCUMENT FORM (CDM PDD) . The project activity may result in lower thermal energy required. Therefore. These emissions are expected to be the same or lower as compared to the baseline scenario. Fuel used in CH4 boilers (Steam and / or power N2O generation) CO2 CH4 Grid Electricity requirement N O 2 No Yes No No CO2 Yes Processing of feed CH4 No N2O CO2 Project Activity Fuel used in furnaces (thermal CH4 energy) N2O Fuel used in CO2 CH4 boilers (Steam and Power N2O generation) CO2 Grid CH4 Electricity requirement N2O No Yes No No Yes No No Yes No No . These emissions (if any) would be essentially the same as in the baseline scenario. CO2 in excess of that required for ammonia. is released into atmosphere. Negligible fugitive CH4 emissions may occur during the processing of the feed. These emissions are expected to be the same or higher as compared to the project scenario. These emissions are expected to be the same or lower as compared to the baseline scenario. if any.

Version 03 CDM – Executive Board page 14 B. Among Alternative 1. The approved methodology specifies the use of combined tool for identification of baseline scenario and demonstrate additionality. identified are as under: Alternative 1: The continuation of current practice.e continuation of current practice of using heavy oil as feed stock and support fuel is the baseline scenario to the project activity. B.4. Alternative 2: Partial substitution of hydrocarbon feedstock / fuel with higher emission intensity with NG for similar output of ammonia Alternative 3: Complete switchover from hydrocarbon feedstock / fuel with higher emission intensity to NG Alternative 4: Usage of hydrocarbon feedstock / fuel with higher emission intensity as feed and production of CO2 surpluses. Hence it has been excluded from further analysis. Accordingly the baseline scenario has been identified as per the provisions in the approved methodology and the combined tool for identification of baseline scenario and demonstrates additionality. Alternative 2 cannot be the alternative scenario because the technology involved in heavy oil as feed stock and Natural gas as feed stock is entirely different and the hybrid two hydrocarbon stocks cannot be used as feed stock due to technological limitations.PROJECT DESIGN DOCUMENT FORM (CDM PDD) . Description of how the baseline scenario is identified and description of the identified baseline scenario: >> Selection of Baseline scenario The methodology applicable in case of the proposed CDM project is AM 0050 Version XX. but with capture of the CO2 surpluses. All the four alternatives given above are in compliance with the applicable laws and regulations.e. i. usage of hydrocarbon feedstock / fuel with higher emission intensity and / or continuation of the present process technology for the production of ammonia / ammonia derivatives . Among the various alternatives given above. The various alternatives to the CDM project activity. 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): >> Additonality . Alternative 4 cannot be a probable baseline scenario as this is not a general industrial practice as well as there is no facility at NFL Panipat plant to capture the CO2 surpluses for its use in other applications further there is no opportunity to use captured CO2.5. 3 there is no investment required for alternative 1 and it also does not faces any financial barriers as explained in the subsequent sections hence alternative 1 i.

As there is no substantial gain to fertilizers plants in return of huge capital investment being borne by the fertilizers plant. difference in the norms of consumption of feed and fuel. As is clear Urea manufacturing is not commercially viable under current market conditions and the Indian Government has to subsidize this activity.) the extent of subsidy (in terms of per ton of Urea produced) to different units for producing urea is different. It is not a regulatory directive by the government. etc.PROJECT DESIGN DOCUMENT FORM (CDM PDD) . difference in the feed stock used. In the proposed CDM project the ground for project additionality originates from the fact that the project activity requires complete replacement of some sections of the existing plant and equipment with the new ones. • Promotion of feed switch from naphtha / oil to gas for urea production is a policy for the government. A circular by government of India in this regard has specified the policy of Government of India to provide incentives to the producers of Urea who switch from Oil/Naphtha to Natural Gas Feedstock . From the above the following is evident: • The very reason that the government of India had to provide fiscal incentives for implementation of the feed switch project clearly demonstrates that such projects are not commercially viable at their own for the producers of urea. Under this scheme. The components of special fixed cost would be as follows: 1. The annual subsidy bill on account of this being footed by the government is quite huge. scale of operation. different manufacturers of Urea are provided a subsidy by the government of India to cover the difference of the cost of production (plus a predetermined profit margin) and the administered sales price. Reimbursement of interest on borrowed capital in five years from the date of commissioning All these revenue streams has been taken for the computation of financials and the results of these computations are shown in subsequent Paragraphs. In 1977 Government of India introduced Retention Pricing Scheme (RPS) to provide urea to the farmers at affordable price and also make the fertilizer business sustainable. Further the current version of the methodology mandates the use of benchmark investment analysis to demonstrate additionality. The methodology follows for the demonstration of additionality as per the latest version of combined tool to identify baseline and demonstrate additionality is as follows: . Reimbursement of capital cost to fertilizer plant in five years from the date of commissioning 2. the following benefits would be available to NFL. As the cost of production in different units producing urea is different (due to difference in technology.Version 03 CDM – Executive Board page 15 The current version of the approved methodology AM 0050 Version XX asks for the use of combined tool to determine the baseline and demonstrate additionality. Apart from this revenue government will also give subsidy to NFL in the way of special fixed cost. This is in spite of the remaining lifetime of the equipment being replaced. Due to the high capital cost for implementing the proposed project activity the return on the capital deployed is not adequate To summarize this. Government of India has will also be providing the capital subsidy to fertilizer plants in terms of special fixed cost.

Benchmark analysis has been chosen as the appropriate method to prove the addtionality of the project. properties and application areas as the proposed CDM project activity includes: Alternative 1: The continuation of current practice.e. Benchmark Analysis Internal Rate of return on the investment has been taken as the suitable financial indicator. As NFL has a choice to continue with the current practice and there are revenue streams other than CDM revenue associated with the project activity. The Reserve Bank of India PLR which was 12% at the time of decision making of the project has been taken as the benchmark against which the investment decision will be compared . i. the benchmark approach can be applied to those cases where the project proponent has choice to invest or not to invest in the project. (b) cannot be implemented in parallel to the proposed project activity. and (c) provide outputs or services with comparable quality. There is no legal binding on NFL Panipat to select any of the alternative hence all the alternatives qualifies to step 2 or Step 3. usage of hydrocarbon feedstock / fuel with higher emission intensity and / or continuation of the present process technology for the production of ammonia / ammonia derivatives . Step 3a: Selection of Appropriate analysis method As per para 16 of Annex 58 (“Guidance on the Assessment of Investment Analysis-Version 03”) of EB51 Report. Sub-step 1b: Consistency with mandatory applicable laws and regulations Eliminate alternatives that are not in compliance with all applicable legal and regulatory requirements All the alternatives stated above are complying with applicable law and regulation. Step3: Investment Analysis As per this analysis it is to be proved that the project activity is economically or financially less attractive than the other feasible alternatives without the assistance of CDM revenue and would not be a financial attractive option for NFL to opt in the absence of CDM. The Investment analysis has been choson to demonstrate the project additionality of project activity. but with capture of the CO2 surpluses.Version 03 CDM – Executive Board page 16 Step 1: Identification of alternative scenarios This step serves to identify all alternative scenarios to the proposed CDM project activity(s) which can be the baseline scenario via the following Sub-steps: Step 1a: Define alternative scenarios to the proposed CDM project activity Identify all alternative scenarios that (a) are available to the project participants.PROJECT DESIGN DOCUMENT FORM (CDM PDD) . Alternative 2: Partial substitution of hydrocarbon feedstock / fuel with higher emission intensity with NG/LNG for similar output of ammonia / ammonia derivatives Alternative 3: Complete switchover from hydrocarbon feedstock / fuel with higher emission intensity to NG/LNG Alternative 4: Usage of hydrocarbon feedstock / fuel with higher emission intensity as feed and production of CO2 surpluses.

42% It can be clearly analysed that the project has the IRR of 5. This changeover will involve a complete technological shift as the technologies involved with heavy oil and natural gas are entirely different and involves major modifications/changes in the front end section of ammonia plant. Sensitivity on 10% decrease in capital cost The results of the calculations are as shown below: IRR of the CDM Project activity IRR % without CDM revenue 8. This analysis clearly indicates that all the similar activities happening across the regions are opting for CDM and hence it is not a common practice. It includes three plants from NFL Panipat.6.Version 03 CDM – Executive Board page 17 Step 3b: Calculation of the suitable financial Indicator Detailed calculations considering all the revenue and cost streams have been done and internal rate of return has been computed based on the entire investment and anticipated revenues. The similar exercise is also been done by Gujarat Naramda Valley Fertilizer Plant and they have also gone for the CDM route. The results of the calculations are as shown below: IRR of the CDM Project activity IRR % without CDM revenue 5. Step3c: Sensitivity Analysis A detailed sensitivity analysis was also carried out for the dominant contributors and following results were obtained.58% It is clear that in-spite of 10% decrease in capital cost the IRR does not crosses the hurdle rate and hence project activity clears the sensitivity test. there are four plants which are being operated on furnace oil as feed stock. Step 4: Common practice analysis In India.60% IRR of the CDM Project activity IRR % with CDM revenue 12. Bathinda and Nangal and Gujarat Naramda Valley Fertilizer Plant. The project activity satisfies all four steps as defined in “combined tool for identification of Baseline and demonstrate addtionality” are fulfilled and hence project is additional B.PROJECT DESIGN DOCUMENT FORM (CDM PDD) . Emission reductions: .45% IRR of the CDM Project activity IRR % with CDM revenue 9.45% which is below the Benchmark PLR of RBI and the project crosses the hurdle of the benchmark only after taking into account the CDM revenue.

0375 Computed based on historical emissions from different sources and historical production of ammonia Computed once at the start of the crediting period and kept fixed throughout the crediting period P Hist. CO 2 tCO2 per ton of ammonia Baseline CO2 emission coefficient per tonne of production of ammonia Calculated Value 6. ( in tons Per Year) Production of ammonia during most recent three years prior to the project activity Obtained from data logs.6.2. measurements and plant records at the project site 295751 Computed based on historical production of ammonia / ammonia derivative.3 B.PROJECT DESIGN DOCUMENT FORM (CDM PDD) .6. ER y = BE y − PE y − LE y Where: ERy BEy PEy LEy = Emission reductions achieved by the project activity during the crediting year y = GHG emissions in the baseline (tCO2/year) = Project Emissions in the Project Activity (tCO2/year) = Leakage emissions (tCO2/Year) The detailed calculations of all these parameters are shown below in section 6.1. Explanation of methodological choices: >> The methodology AM0050 version XX uses following calculation procedure for the calculation of GHG emission reduction.Version 03 CDM – Executive Board page 18 B. Data and parameters that are available at validation: Parameter: Data unit: Description: Source of data: Value Applied Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: ECOEFB . for three years prior to the start of the project activity Parameter: Data unit: Description: Source of data: Value Applied Justification of the choice of data or description of measurement methods and .

three years prior to the start of the project activity Parameter: Data unit: Description: Source of data: Value Applied Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Computed once at the start of the crediting period and kept fixed throughout the crediting period BEFFeed. measurements and plant records at the project site 244205 Computed based on historical production of ammonia / ammonia derivative. 2 (Energy) of the 2006 IPCC Guidelines on National GHG Inventories 77. EFFeed.4 For (a) and (b): Measurements should be undertaken in line with national or international fuel standards Parameter: Data unit: Description: Source of data: Value applied Measurement procedures (if any): Any comment: Parameter: Data unit: Description: Source of data: Value Applied Justification of the choice of data or description of measurement methods and . Hist.Version 03 CDM – Executive Board page 19 procedures actually applied : Any comment: Computed once at the start of the crediting period and kept fixed throughout the crediting period QFeed. (in tons Per Year) Historical quantity of feed stock used for production of ammonia / ammonia derivative Obtained from data logs. (in tCO2) Emission factor for the feedstock used in the baseline (Quantity of CO2 that would be produced from the feedstock per ton of feedstock) Obtained from data logs.Hist.16 Computed from the net calorific value of the feedstock and the emission factor of the feedstock Although in this case the hydrocarbon is used as a feedstock and not as a fuel. measurements and plant records at the project site 3.PROJECT DESIGN DOCUMENT FORM (CDM PDD) .4 of chapter 1 of Vol. (in tonCO2/TJ) CO2 emission factor of the feedstock used prior to the implementation of the project activity in the year X IPCC default values at the lower limit of the uncertainty at a 95% confidence interval as provided in table 1. it is considered that the emission of CO2 is related to the NCV in the same manner as in the case of use as a fuel.

Value Applied Justification of the choice of data or description of measurement methods and procedures actually applied Any comment: Parameter: Data unit: Description: Source of data: Value Applied: Justification of the choice of data or description of 0. measurements and plant records at project site 0 Computed based on historical consumption of fossil fuels used in the furnaces three years prior to the start of the project activity . (in tons) Historical quantity of fossil fuel used in the furnaces for production of ammonia / ammonia derivative Obtained from the data logs.041 QHeat. 2 (Energy) of the 2006 IPCC Guidelines on National GHG Inventories Conditions for using the data source If values are reliable and documented in regional or national energy statistics / energy balances If above two data source is not available.Version 03 CDM – Executive Board page 20 procedures actually applied Any comment: Parameter: Data unit: Description: Source of data: NCV Feed.2 of Chapter 1 of Vol.PROJECT DESIGN DOCUMENT FORM (CDM PDD) . (TJ / Ton of feedstock) Net caloric value of the feedstock used prior to the implementation of the project activity in the year X The following data sources may be used if the relevant conditions apply: Data source Values provided by the feedstock in invoices Regional or national average default values IPCC default values at the lower limit of the uncertainty at a 95% confidence interval as provided in Table 1. Hist.

(c) or (d) should be used Parameter: Data unit: Description: Source of data: NCV Heat.Version 03 CDM – Executive Board page 21 measurement methods and procedures actually applied Any comment: Parameter: Data unit: Description: Source of data: EFheat.i (in tCO2) Emission factor for the fossil fuel used in the baseline (Quantity of CO2 that would be produced per ton of fuel) The following data sources may be used if the relevant conditions apply: Data source (a) Values provided by the fuel supplier in invoices (b) measurements by the project participants (c) Regional or national default values Conditions for using the data source This is the preferred source Applicable if (a) is not available These sources can only be used for liquid fuels and should be based on well-documented. this CO2 factor should be used. Value Applied Measurement procedures (if any): Any comment: 0 For (a) and (b): Measurements should be undertaken in line with national or international fuel standards For (a): If the fuel supplier does provide the NCV value and the CO2 emission factor on the invoice and these two values are based on measurements for this specific fuel.PROJECT DESIGN DOCUMENT FORM (CDM PDD) . reliable sources (such as national energy balances) If (a) is not available (d) IPCC default values at the lower limit of the uncertainty at a 95% confidence interval as provided in table 1. 2 (Energy) of the 2006 IPCC Guidelines on National GHG Inventories. Options (b).i (TJ / Ton of fuel) Net caloric value of the fossil fuel used in the furnaces prior to the implementation of the project activity in the year X The following data sources may be used if the relevant conditions apply: . If another source for the CO2 emission factor is used or no CO2 emission factor is provided.4 of chapter 1 of Vol.

2 (Energy) of the 2006 IPCC Guidelines on National GHG Inventories Value Applied Measurement procedures (if any): Any comment: Parameter: Data unit: Description: Source of data: Value Applied: Justification of the choice of data or description of measurement methods and procedures actually applied Any comment: 0 Conditions for using the data source If values are reliable and documented in regional or national energy statistics / energy balances If above two data source is not available. measurements and plant records at project site 33098 Computed based on historical consumption of fossil fuels used in the boilers three years prior to the start of the project activity . QUtility coal.PROJECT DESIGN DOCUMENT FORM (CDM PDD) .Version 03 CDM – Executive Board page 22 Data source Values provided by the feedstock in invoices Regional or national average default values IPCC default values at the lower limit of the uncertainty at a 95% confidence interval as provided in Table 1. Hist (in tons per Year) Historical quantity of fossil fuel used in the boilers for production steam and power Data logs. measurements and plant records at project site 538338 Computed based on historical consumption of fossil fuels used in the boilers three years prior to the start of the project activity Parameter: Data unit: Description: Source of data: Value Applied: Justification of the choice of data or description of measurement methods and procedures actually applied Any comment: QUtility FO.2 of Chapter 1 of Vol. Hist (in tons per Year) Historical quantity of fossil fuel used in the boilers for production steam and power Data logs.

(in tCO2/TJ) Emission factor for the fossil fuel used in the boilers in the baseline (Quantity of CO2 that would be produced per ton of fuel) IPCC default values at the lower limit of the uncertainty at a 95% confidence interval as provided in table 1. (c) or (d) should be used NCV Utility coal.4 of chapter 1 of Vol.4 For (a) and (b): Measurements should be undertaken in line with national or international fuel standards For (a): If the fuel supplier does provide the NCV value and the CO2 emission factor on the invoice and these two values are based on measurements for this specific fuel. (TJ / Ton of fuel) Net caloric value of the fossil fuel used in the boilers prior to the implementation of the project activity in the year X The following data sources may be used if the relevant conditions apply: Data source Values provided by the feedstock in Conditions for using the data source Parameter: Data unit: Description: Source of data: . Options (b).PROJECT DESIGN DOCUMENT FORM (CDM PDD) . If another source for the CO2 emission factor is used or no CO2 emission factor is provided.4 of chapter 1 of Vol. 2 (Energy) of the 2006 IPCC Guidelines on National GHG Inventories 77. 2 (Energy) of the 2006 IPCC Guidelines on National GHG Inventories 96. this CO2 factor should be used. (in tCO2/TJ) Emission factor for the coal used in the boilers in the baseline (Quantity of CO2 that would be produced per ton of fuel) IPCC default values at the lower limit of the uncertainty at a 95% confidence interval as provided in table 1.Version 03 CDM – Executive Board page 23 Parameter: Data unit: Description: Source of data: Value Applied: Justification of the choice of data or description of measurement methods and procedures actually applied Any comment: Parameter: Data unit: Description: Source of data: EFUtility coal.1 For (a) and (b): Measurements should be undertaken in line with national or international fuel standards Value Applied: Justification of the choice of data or description of measurement methods and procedures actually applied Any comment: EFUtility FO.

NCV Utility FO (TJ / Ton of fuel) Net caloric value of the fossil fuel used in the boilers prior to the implementation of the project activity in the year X The following data sources may be used if the relevant conditions apply: Data source Values provided by the feedstock in invoices Regional or national average default values IPCC default values at the lower limit of the uncertainty at a 95% confidence interval as provided in Table 1. 2 (Energy) of the 2006 IPCC Guidelines on National GHG Inventories Conditions for using the data source If values are reliable and documented in regional or national energy statistics / energy balances If above two data source is not available.Version 03 CDM – Executive Board page 24 invoices Regional or national average default values IPCC default values at the lower limit of the uncertainty at a 95% confidence interval as provided in Table 1.PROJECT DESIGN DOCUMENT FORM (CDM PDD) .041 .017 If values are reliable and documented in regional or national energy statistics / energy balances If above two data source is not available. Value Applied: Justification of the choice of data or description of 0.2 of Chapter 1 of Vol.2 of Chapter 1 of Vol. 2 (Energy) of the 2006 IPCC Guidelines on National GHG Inventories Value Applied: Justification of the choice of data or description of measurement methods and procedures actually applied Any comment: Parameter: Data unit: Description: Source of data: 0.

80 Computed from the values of the grid emission factor during three years prior to the implementation of the project activity B. The emission reductions calculations are as follows: .Hist (in tCO2 /MWH) Baseline emission factor for the power imported from the grid Use the latest approved version of “Tool to calculate emission factor for an electricity system” to calculate the grid emission factor. 0.PROJECT DESIGN DOCUMENT FORM (CDM PDD) .6.Version 03 CDM – Executive Board page 25 measurement methods and procedures actually applied Any comment: Parameter: Data unit: Description: Source of data: Value Applied: Justification of the choice of data or description of measurement methods and procedures actually applied Any comment: QGrid.3. Ex-ante calculation of emission reductions: >> Emission reductions of the proposed project can be calculated based on the methodology AM0050 (VersionXX). Hist (in MWH) Historical annual quantity power withdrawn from the grid Computed from the quantum of power imported from the grid. during three years prior to the implementation of the project activity 13615 Parameter: Data unit: Description: Source of data: Value Applied: Justification of the choice of data or description of measurement methods and procedures actually applied Any comment: BEFGrid.

Version 03 CDM – Executive Board page 26 BASELINE EMISSIONS Baseline emissions are calculated as follows: BEY = PPR .0375 tCO2/tonne of ammonia Where: PHist BEFeed. CO 2 BEY PPR. CO 2 = (771436 + 0+1003278 + 10892)/295751 = 6.Hist BEGrid. 3 Hist .Hist Production of ammonia during most recent three years prior to the project activity ( in tons) Baseline emissions due to the use of feed for the production of ammonia during most recent three years prior to the project activity. (in tCO2) Baseline emissions due to use of fossil fuel for thermal energy used in the furnaces (feed treatment and reforming / gasification) during most recent three years prior to the project activity. Y * ECOEFB . − x BEUtility.y ECOEFB. (in tCO2) Baseline emissions due to onsite generation of steam and power for the production of ammonia in the process plant during most recent three years prior to the project activity (in tCO2) Baseline emissions due to use of grid electricity during most recent three years prior to the project activity (tCO2).0375 tCO2/ tonne of ammonia = 1793149 tCO2/year ECOEFB .CO2 of ammonia) BEY = Baseline emissions in the year Y (in tCO2) = Quantity of ammonia produced in the project in the year Y( in tons) = CO2 emission coefficient for production of ammonia in the baseline (in tCO2 per ton = 900 tonnes of ammonia/day * 330 days/Year *6.Hist BEHeat.PROJECT DESIGN DOCUMENT FORM (CDM PDD) .Hist ∑P PHist = Where: PHist PHist-x PHist x =1 3 Historical amount of Ammonia Historical amount of ammonia produced prior to the implementation of the project activity in year x (in tons) = (292836+296207+298209)/3 .

834 tonnes per hour * 24 hrs/day * 330 days/year = 244205 MT per Year BEFFeed .x = Average CO2 emission factor for the feedstock used prior to the implementation of the project activity in the year x (in tons per ton of feedstock) 3 ∑Q Q Feed . Hist = (244205 tonnes of feed stock per Year * 3. Hist * BEFFeed . − X * EFFeed . BEFFeed .Hist Historical quantity of feed stock used for production of ammonia / ammonia derivative (in tons) Emission factor for the feedstock used in the baseline (Quantity of CO2 that would be produced from the feedstock per ton of feedstock) (in tCO2) BE Feed . Hist .Version 03 CDM – Executive Board page 27 = 295751 MT per Year Baseline Emissions due to the use of feed (BEFeed. x − 1. Hist = Min. Hist = 30. x.-x x =1 Feed . x − 1) Where: BEFFeed. Hist Where: QFeed. Hist. − x 3 = Historical quantity of feedstock used (in tons) = Quantity of feedstock used prior to the implementation of the project activity in year x (in tons) Emission Factor for the feedstock (BEFFeed) is calculated as QFeed . BEFFeed .16 tCO2/tonne of feed stock) = 771436 tCO2/Year BEFFeed . − X Where: .Hist QFeed. Hist = QFeed . − X = NCV Feed . Hist BEFFeed. Hist = Where: QFeed.PROJECT DESIGN DOCUMENT FORM (CDM PDD) .Hist) The emissions due to the use of hydrocarbon feedstock for the production of ammonia / ammonia derivative are calculated as follows: BE Feed .( BEFFeed .

i . Hist Baseline Emissions due to use of fossil fuel in the Boilers (BEUtility. − x 3 . − x 3 = Quantity of feedstock type I used prior to the implementation of the project activity in year x (in tons) = 0 tonnes = 0 tCO2/Year BE Heat . − X Baseline Emissions due to the thermal energy used in the furnaces (BEHeat. Hist = Where: QHeat.i heat ∑Q QHeat .4tCO2/TJ x 0. Hist.i .heat EF .y) Baseline CO2 emissions from thermal energy are calculated as follows: BE Heat .-X CO2 emission factor of the feedstock used prior to the implementation of the project activity in the year X (in tonCO2/TJ) Net calorific value of the feedstock used prior to the implementation of the project activity in the year X (TJ / Ton of feedstock) = 77.i . Hist n Annual average Historical quantity of fossil fuel i used in the furnaces for production of ammonia (in tons) Net Calorific value of fossil fuel i used for thermal energy in the furnaces(in TJ/tonne) CO2 Emission factor for the fossil fuel i(in tCO2) 3 NCVi.-x QHeat. − x ∑ ∑Q BEUtility .) Baseline CO2 emissions due to the use of fossil fuel in the boilers for the process steam and power are calculated as follows: 3 x =1 n utility . Hist = ∑i QHeat . − x * EFutility . Hist .i * EFheat .16 tCO2/tonne of feed stock BEFFeed .041 TJ/tonne of feed stock = 3.i Where: QHeat i. Hist = i * NCVutility .i .PROJECT DESIGN DOCUMENT FORM (CDM PDD) .i . -X NCV Feed.i .iHist x =1 Heat .i. Hist * NCV Heat ..Version 03 CDM – Executive Board page 28 EFFeed.

i . − x Historical quantity of fossil fuel i used in the boilers for production of steam and power (in tonne per year) in the year –x before the year of project activity .i . Hist = (67.i .67tCO2/tonne of coal)+(4. Hist .16 tCO2/tonne of FO) = 1003278 tCO2/Year Baseline Emissions due to use of grid electricity (BEGrid.PROJECT DESIGN DOCUMENT FORM (CDM PDD) . − x 3 = Historical quantity of fossil fuel i used in the boilers for production of steam and power (in tonne per year) in the year –x before the year of project activity .972 tonnes per hour x 330 days in Year x 24 hrs/day x 1.-x x =1 Utility . − x BEUtility .) Baseline CO2 emissions due to the use of fossil fuel in the boilers for the process steam and power are calculated as follows: BE Grid .Hist Historical quantity of power imported from the grid (in MWh) Baseline emission factor for the power imported from the grid (in tCO2 /MWh) .972 tonnes per hr * 24 hrs per day * 330 days per year * 1.179 tonnes per hour x 330 days in Year x 24 hrs/day x 3. Hist. Hist = Where: QUtility. − x EFutility .x BEUtility . Hist Where: QGrid. Hist = QGrid .1667tCO2/tonne of heavy oil) = 1003278 tCO2/year 3 ∑Q QUtility . Hist BEFGrid.i .67 tCO2/tonne of coal) + (4. Hist * BEFGrid .Version 03 CDM – Executive Board page 29 Where: Qutility .x Net calorific value of fossil fuel i used (TJ/Tonne) CO2 Emission factor for the fossil fuel i (in tCO2/TJ) NCVutility .179 kNM3/hr * 24 hrs per day *330 days per year * 3. Hist = (67.

− x 3 = Historical quantum of power imported from the grid (MWH) = Quantum of power imported prior to the implementation of the project activity in year x (in MWh) = 13615 MWh = 13615 MWh x 0. BEGrid .(in tCO2) Emissions due to the production of thermal energy used in the furnaces (feed treatment and reforming) after deducting the CO2 recovered by the CDR plant (if any) in each year y of the crediting period. y Where: PEFeed.8 tCO2/MWh = 10892 tCO2/year QGridy .PROJECT DESIGN DOCUMENT FORM (CDM PDD) .-x x =1 Grid . x − 2) Where: BEFGrid. Emissions due to import/ export of power from the grid in the year y of the crediting period (in tCO2) PEUtility. Emissions due to use of fossil fuels in the boilers for onsite production of steam and power in each year y of the crediting period. in tCO2. Hist BEGrid . Hist .y PEHeat.Hist QGrid. x − 1.x EF Grid. Hist = Min. y + PE Grid . in tCO2. Hist = Where: QGrid. y + PEUtility .y Emissions due to the use of feedstock for the production of ammonia / ammonia derivative in each year Y of the crediting period.Version 03 CDM – Executive Board page 30 BEFGrid .y . Hist ` For the determination of emission factors of the fuels and the feedstock. This is computed using the latest version of the ‘Tool for determination of emissions from an electrical system’ 3 ∑Q QGridy . x. guidance from the 2006 IPCC Guidelines for National Greenhouse Gas Inventories has been followed where appropriate Project Emissions Project activity emissions are calculated as follows: PE y = PE Feed . Hist.X = Historical CO2 emission factor for power imported from the grid (in tCO2 / MWh)) = Emission factor of the grid from which the power is imported (in tCO2 / MWh).y PE Grid.( EFGrid . y + PE Heat . EFGrid .

i .heat .y) Emissions due to the production of thermal energy used in the furnaces (feed treatment and reforming) is calculated as follows: PE Heat . Feed The quantity of CO2 produced from feedstock is calculated as follows: PE Feed .i . corrected for temperature and pressure.y) The emissions due to the use of feedstock for the production of ammonia / ammonia derivative are calculated as follows: PE Feed . EFCO 2.Y i Where: FC Heat . If the available data are measured in volume units use the appropriate density of NG.PROJECT DESIGN DOCUMENT FORM (CDM PDD) . PJ .Y NCVHeat.036TJ/kNM3x 56.619 kNM3/hr x 24 hrs/day x 330 days/year x 0.Y ⋅ NCVheat . Feed EFPY .i . y = (24.Y . y ⋅ NCVPY .i . in tCO2/TJ. CO2 emission factor of the fuel type with the lowest emission factor among all the i fossil fuels used in the furnaces (feed treatment and reforming) in each year y of the crediting period. Net calorific value of fuel type i in each year y of the crediting period. in TJ/mass or volume units.Y = ⋅ (FFeed . in tonnes. Feed ) Where: FFeed.Y = (∑ FC Heat .Y ) ⋅ EFCO 2. Feed * EFPY . PJ .i.heat . PJ . Net Calorific Value of Feed stock Hydrocarbon (In TJ/tonne) Emission factor of feed (in tCO2/TJ) NCVPY . to calculate the equivalent mass.i .PJ.1tCO2/TJ) tCO2/year =392641 tCO2/Year Emissions from thermal energy (PEHeat.Y Quantity of fuel type i consumed in the furnaces (feed treatment and reforming) in year y of the crediting period. in mass or volume units.Version 03 CDM – Executive Board page 31 PE y = 392641 + 98160 + 677289+ 10892 = 1178982 tCO2/year Emissions due to the use of feedstock (PEFeed.Y Consumption of NG/LNG as feed during the year y of the crediting period.

guidance from the 2006 IPCC Guidelines for National Greenhouse Gas Inventories has been followed where appropriate.01tCO2/tonne of NG) = 677289 tCO2/Year Where: FC Utility. in tCO2/MWh.i.Y Where: QGrid.Version 03 CDM – Executive Board page 32 For determination of emission factors.314T/hr *24 hrs/day *330days/year*1.utility . .Y Quantity of fuel type i consumed in the boilers of the power plant for producing power and steam in year y of the crediting period. (in tCO2/TJ).Y Quantum of electricity imported from the grid in the year y of the crediting period. Net calorific value of fuel type i in each year y of the crediting period.154kNM3/hr * 24hrs/day *330 days/year*0. EFGrid.Y ⋅ NCVutility . in (TJ/mass or volume units.PR.Y ⋅ EFCO 2. in mass or volume units. is the emission factor of the grid that must be calculated as the generation-weighted average emissions per electricity unit of all generating sources serving the system.036TJ/NM3*56. PE Heat .y) Emissions due to the production of thermal energy used in the furnaces (feed treatment and reforming) are calculated as follows: PEUtility .PJ.utility .Y NCVi..i.y) The emissions / emission reductions due to import / export of power from the grid can be computed as follows: PEGrid .Y. y = (47. PR .i .Y EFCO2.PROJECT DESIGN DOCUMENT FORM (CDM PDD) .i .Y i PEUtility . CO2 emission factor for the power from the grid in the year y of the crediting period.i . Emissions due to import / export of power from the grid (PEGrid. PJ . in MWh.Y = ∑ FCUtility . EFgrid.67tCO2/tonne of fuel) + (3.242*24 hrs/day *330days/year*2. guidance from the 2006 IPCC Guidelines for National Greenhouse Gas Inventories has been followed where appropriate.Y.1tCO2/TJ = 98160 tCO2/Year Emissions due to use of fossil fuels in the boilers (PEUtility.) CO2 emission factor of the fuel type i used in the boilers of the power plant in the year y of the crediting period.Y = QGrid . Y ⋅ EFGrid . For determination of emission factors. y = 6.

corrected for temperature and pressure. in tCH4/NM3 is the global warming potential of methane = 21. use the appropriate density of NG/LNG.PROJECT DESIGN DOCUMENT FORM (CDM PDD) .CH 4 GWPCH4 LECH 4.6.1178982 – 162371) tCO2/Year = 451796 tCO2/Year B. transportation and distribution of natural gas feed supplied to final consumers. in m3. LE LNG . y LE y = 0 tCO2/Year = 162371 tCO2/Year Emissions Reduction ER y = BE y − PE y − LE y ERy = (1793149 . CH4 emission factor for upstream fugitive methane emissions from production. y CO2 emissions from LNG LECH 4.CO2 .8 tCO2/MWh = 10892 tCO2/Year Leakage Emissions LECH 4.Y ⋅ EF. = 162371 tCO2/year EF.CH 4 ⋅ GWPCH 4 Where: FNG. y ⋅ EF.4 Summary of the ex-ante estimation of emission reductions: >> The summary of ex – ante estimation of emission reductions is as follows: .CH 4 ⋅ GWPCH 4 Where: EFCH 4 CH4 emission factor for upstream fugitive methane emissions from production. in tCH4/NM3 In the project activity the natural gas will be coming in gaseous form without any re liquefaction hence there will not be any emissions associated with re liquefaction of natural gas. transportation and distribution of natural gas feed supplied to final consumers. PJ .y Consumption of NG/LNG as feed during the year y of the crediting period. to calculate the equivalent volume.Y = FNG . y = FNG . y = 13615 MWh*0. PJ .PJ.Version 03 CDM – Executive Board page 33 PEGrid . If the available data are measured in mass units.

i.7. to calculate the equivalent mass. 48746 On-site measurements Flow-rate meters Continuously Meters should be calibrated regularly according to manufacturer’s guidelines. Cross-check with fuel purchase receipts. Continuously Meters should be calibrated regularly according to manufacturer’s guidelines. . Application of the monitoring methodology and description of the monitoring plan: Data and parameters monitored Data / Parameter: Data unit: Description: F Feed .y kNM3/year Consumption of NG/LNG as feed during the year y of the crediting period.PJ. corrected for temperature and pressure.y kNM3/year Quantity of fuel type i consumed in the furnaces (feed treatment and reforming) in each year y of the crediting period. 194984 On-site measurements Flow meters.PROJECT DESIGN DOCUMENT FORM (CDM PDD) . If the available data are measured in volume units use the appropriate density of NG/LNG.Version 03 CDM – Executive Board page 34 Year 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Estimation of project activity emissions (tCO2 e) 1178982 1178982 1178982 1178982 1178982 1178982 1178982 1178982 1178982 1178982 Estimations of baseline emissions (tCO2 e) 1793149 1793149 1793149 1793149 1793149 1793149 1793149 1793149 1793149 1793149 Estimation of leakage (tCO2 e) 162371 162371 162371 162371 162371 162371 162371 162371 162371 162371 Estimation of overall emission reductions (tCO2 e) 451796 451796 451796 451796 451796 451796 451796 451796 451796 451796 B. Volumetric units should be at normal pressure and temperature (NTP) Value Applied: Source of data: Measurement procedures (if any): Monitoring frequency: QA/QC procedures: Any comment: Data / Parameter: Data unit: Description: Value Applied: Source of data: Measurement procedures (if any): Monitoring frequency: QA/QC procedures: FC Heat.

Volumetric units should be at normal pressure and temperature NCVcoal. Measured at the project site.y Tonnes Per Year Quantity of fuel type i consumed in the boilers of the power plant generation of steam and power in each year y of the crediting period. Measured in the project activity by digital control systems and/or data logs.. 25676 On-site measurements Flow-rate meters Continuously Meters should be calibrated regularly according to manufacturer’s guidelines. Electrical Energy Meter Continuously Electrical Energy Meter used for measurement should be calibrated regularly as per ISO procedures or according to manufacturer’s guidelines In case of net export of power to the grid.PR.y kNM3 Per Year Quantity of fuel type i consumed in the boilers of the power plant generation of steam and power in each year y of the crediting period.017 IPCC Guidelines for National Greenhouse Gas Inventories.PROJECT DESIGN DOCUMENT FORM (CDM PDD) .y TJ/tonnes of coal Average net calorific value of coal in year y of the crediting period.. Volumetric units should be at normal pressure and temperature FC Utility Natural Gas.y MWh 13615 Quantity of electricity obtained from / supplied to the grid by the project activity during each year y of the crediting period. - .Version 03 CDM – Executive Board page 35 Any comment: Data / Parameter: Data unit: Value Applied: Description: Source of data: Measurement procedures (if any): Monitoring frequency: QA/QC procedures: Any comment: Data / Parameter: Data unit: Description: Value Applied: Source of data: Measurement procedures (if any): Monitoring frequency: QA/QC procedures: Any comment: Data / Parameter: Data unit: Description: Value Applied: Source of data: Measurement procedures (if any): Monitoring frequency: QA/QC procedures: Any comment: Parameter: Data unit: Description: Value Applied: Source of data: Measurement procedures (if any): Volumetric units should be at normal pressure and temperature QGrid. Negative sign will be used FC Utility coal. 0. 374726 On-site measurements Flow-rate meters Continuously Meters should be calibrated regularly according to manufacturer’s guidelines.

Version 03 CDM – Executive Board page 36 Monitoring frequency QA/QC procedures Any comment: Parameter: Data unit: Description: Value Applied: Source of data: Measurement procedures (if any): Monitoring frequency QA/QC procedures Any comment: Data / Parameter: Data unit: Description: Value Applied: Source of data: Measurement procedures (if any): Monitoring frequency: QA/QC procedures: Any comment: Data / Parameter: Data unit: Description: Value Applied: Source of data: Measurement procedures (if any): Monitoring frequency: QA/QC procedures: Data / Parameter: Data unit: Value Applied: Description: Source of data: NCVNG. in year y of the crediting period.1 IPCC default values Yearly QGrid.i.y MWh 13615 Quantity of electricity obtained from the grid by the project activity during each year y of the crediting period.y TJ/NM3 of NG Average net calorific value of fuel type i and NG/LNG respectively. Measured in the project activity by digital control systems and/or data logs.PR.coal. 56. - EFCO2. 0.PROJECT DESIGN DOCUMENT FORM (CDM PDD) .Natural Gas.i.y tCO2/TJ CO2 emission factor of fuel type i used for steam generation in the boilers in the year y.036 IPCC Guidelines for National Greenhouse Gas Inventories. PJ.y tCO2/TJ CO2 emission factor of fuel type i used for steam generation in the boilers in the year y. .1 IPCC Default Values Yearly EFCO2. 96. PJ. Measured at the project site.

Use the latest approved version of “Tool to calculate emission factor for an electricity system” to calculate the grid emission factor. transportation. 2 . M.y tCO2/MWh 0.80 CO2 emission factor for grid electricity during the year y. as required by “Tool to calculate emission factor for an electricity system”. “Barclay. project participants may assume a default value of 6 tCO2/TJ as a rough approximation2. Either once at the start of the project activity or updated annually. re-gasification and compression of LNG into a natural gas transmission or distribution system is available.com/publications/tech_papers/files/LNJ091105p34-36. shall be included in the monitoring plan. Yearly Value Applied: Source of data: Measurement procedures (if any): Monitoring frequency: This value has been derived on data published for North American LNG systems. Apply procedures as in “Tool to calculate emission factor for an electricity system” All data and parameters to determine the grid electricity emission factor. Denton.upstream.fwc. consistent with guidance in “Tool to calculate emission factor for an electricity system”.LNG. transportation. Any comment: Data / Parameter: Data unit: Description: EFCO2. project participants should use this data to determine an average emission factor. 2005. Where such data is not available. regasification and compression of LNG into a natural gas transmission or distribution system in year y. 6 Default Value given in the methodology Where reliable and accurate data on upstream CO2 emissions due to fossil fuel combustion / electricity consumption associated with the liquefaction.y tCO2/TJ Emission factor for upstream CO2 emissions due to fossil fuel combustion / electricity consumption associated with the liquefaction. http://www.PROJECT DESIGN DOCUMENT FORM (CDM PDD) .pdf (10th April 2006)”. and N. Selecting offshore LNG process.Version 03 CDM – Executive Board page 37 Measurement procedures (if any): Monitoring frequency: QA/QC procedures: Any comment: Data / Parameter: Data unit: Value Applied: Description: Source of data: Measurement procedures (if any): Monitoring frequency: QA/QC procedures: Any comment: Electrical Energy Meter Continuously Electrical Energy Meter used for measurement should be calibrated regularly as per ISO procedures or according to manufacturer’s guidelines EFgrid.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) . transportation and distribution of natural gas feed supplied to final consumers 0. collection. Measurement results should be cross-checked with the periodic urea stock verification carried out by external agencies. Description of the monitoring plan: >> The project proponent has procedures for monitoring and recording of data on operation & maintenance of the plant equipment. data archiving. and calibration of metering equipment. 297000 Ammonia Production records Daily ammonia production calculated based on online ammonia flow meter Quarterly Flow meter should be calibrated regularly according to manufacturer’s guidelines.y Tonnes Production of ammonia in each year y of the crediting period.0287 GHG inventory data reported to the UNFCCC as part of national communications Yearly P.Version 03 CDM – Executive Board page 38 QA/QC procedures: Any comment: Data / Parameter: Data unit: Description: Value Applied: Source of data: Measurement procedures (if any): Monitoring frequency: QA/QC procedures: Any comment: Data / Parameter: Data unit: Description: Value Applied: Source of data: Measurement procedures (if any): Monitoring frequency: QA/QC procedures: EFCH4 gGCH4/MCM CH4 emission factor for upstream fugitive methane emissions from production.2. It comprises of the following members: Organizational Structure for Monitoring Unit Head Plant In-charge Shift In-charge . The proponents have proposed following structure for data monitoring. - Any comment: B.7.PR.

Starting date of the project activity: >> 29th January 2010 C. Goel National Fertilizers Limited A-11 Sector 24 NOIDA. Duration of the project activity / crediting period C. Contact details of the person responsible for development of baseline and monitoring methodology is given below Mr. After verification of the data and due diligence on the correctness if required.1.1. The monitoring reports are checked periodically by the Plant In-charge and discussed thoroughly with the data monitoring personnel.co. Duration of the project activity: C.2. All meters will be calibrated and sealed as per industry practices at regular intervals. K. Expected operational lifetime of the project activity: >> 20 Years .in SECTION C. B. Hence. Date of completion of the application of the baseline study and monitoring methodology and the name of the responsible person(s)/entity(ies): >> The date of completion of baseline and monitoring methodology is 31/07/2011. The Shift operator maintains all the data records and ensures the completeness and reliability of the data. high quality is ensured with the above parameters.Version 03 CDM – Executive Board page 39 The unit head is responsible for the overall functioning and maintenance of the project activity.K. to operate in standby mode or when the main meters are not working. QA & QC Procedures to be followed Necessary check meters as required would be installed. Records of calibration certificates will be maintained for verification.1. Uttar Pradesh 201301 E-mail: kkgoel@nfl. an annual report on monitoring and estimations shall be maintained by the CDM team and record to this effect shall be maintained for verification. Corrective action is taken immediately if any improper functioning or operation problem with the equipment is observed.1. The archived data shall be kept for two years after the crediting period or issuance of CERs.8. The Shift In-charge maintains a day to day power generation log.PROJECT DESIGN DOCUMENT FORM (CDM PDD) .

1.2. 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: >> SECTION E.1. Renewable crediting period: C.PROJECT DESIGN DOCUMENT FORM (CDM PDD) . >> E. Environmental impacts >> D. Starting date of the first crediting period: >> C.2.2.2. Choice of the crediting period and related information: C.1.3.2. If environmental impacts are considered significant by the project participants or the host Party.1. >> E.Version 03 CDM – Executive Board page 40 C.2. >> January 2013 C. >> 10 Years SECTION D.1. >> C. Documentation on the analysis of the environmental impacts.2. >> Brief description how comments by local stakeholders have been invited and compiled: Starting date: Length of the first crediting period: Length: Summary of the comments received: Report on how due account was taken of any comments received: . Stakeholders’ comments >> E. Fixed crediting period: C.2. including transboundary impacts: >> D.2.2.2.1.2.2.1.2.

nationalfertilizers.in www.K Technical Department +919910575722 +911202412397 +911202412294 jupiterfever@ymail.com Chief Manager – Mechanical Mr.O.PROJECT DESIGN DOCUMENT FORM (CDM PDD) .com .Version 03 CDM – Executive Board page 41 Annex 1 CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY Organization: Street/P. Goel K.co.Box: Building: City: State/Region: Postcode/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 Fertilizers Limited Sector 24 A-11 NOIDA Uttar Pradesh 201301 India 0120-2412383 0120-2412384 kkgoel@nfl.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) .Version 03 CDM – Executive Board page 42 Annex 2 INFORMATION REGARDING PUBLIC FUNDING .

Version 03 CDM – Executive Board page 43 Annex 3 BASELINE INFORMATION Annex 4 MONITORING INFORMATION ----- .PROJECT DESIGN DOCUMENT FORM (CDM PDD) .