CLEAN DEVELOPMENT MECHANISM SIMPLIFIED PROJECT DESIGN DOCUMENT FOR SMALL-SCALE PROJECT ACTIVITIES (SSC-CDM-PDD) Version 02 CONTENTS

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1 CDM Executive Board page 1 CLEAN DEVELOPMENT MECHANISM SIMPLIFIED PROJECT DESIGN DOCUMENT FOR SMALL-SCALE PROJECT ACTIVITIES (SSC-CDM-PDD) Version 02 CONTENTS A. General description of the small-scale project activity B. Baseline methodology C. Duration of the project activity / Crediting period D. Monitoring methodology and plan E. Calculation of GHG emission reductions by sources F. Environmental impacts G. Stakeholders comments Annexes Annex 1: Information on participants in the project activity Annex 2: Information regarding public funding

2 CDM Executive Board page 2 Revision history of this document Version Date Description and reason of revision Number January 2003 Initial adoption 02 8 July 2005 The Board agreed to revise the CDM SSC PDD to reflect guidance and clarifications provided by the Board since version 01 of this document. As a consequence, the guidelines for completing CDM SSC PDD have been revised accordingly to version 2. The latest version can be found at <

3 CDM Executive Board page 3 SECTION A. General description of the small-scale project activity A.1. Title of the small-scale project activity: Chemical Recovery project at Satia Paper Mills Limited (SPML), village Rupana, Punjab. A.2. Description of the small-scale project activity: Purpose SPML is a leading integrated paper manufacturing unit in Punjab, with daily production of paper in the range Tons per day (TPD). The purpose of the project activity is to recover the caustic soda from waste liquor generated in paper manufacturing process. Caustic soda recovery process from waste will reduce quantity of soda required to be purchased from market. Pre Project Scenario In pre project scenario, the total quantity of caustic soda required for paper manufacturing process has been procured from market. There are following three conventional caustic soda manufacturing processes 1 practised in India and their respective power consumption figures. S.No. Process Average Power Consumption (kwh/mt) 1. Diaphragm Process Mercury Cell Membrane Cell 2900 Government of India has made use of membrane cell technology mandatory in new alkali manufacturing plants since In India presently more than 66 percent of total alkali is manufactured by membrane cell technology. Post Project Scenario Project activity involves commissioning of a chemical recovery plant wherein caustic soda will be recovered from waste liquor generated in paper manufacturing. The total installed capacity of this plant is 1 chemical/chemical.htm

4 CDM Executive Board page 4 35 tons per day of recovered soda. Energy requirement for per ton of soda recovered is much lesser than what is required for manufacturing in a conventional plant. Contribution to Sustainable Development The indicators of sustainable development as stipulated by the Government of India in the interim approval guidelines for CDM projects are: Environmental well being Technological well being Economic well being Social well being The project activity proposed by SPML contributes to the above in following manner: Environmental well being: Lesser amount of electricity will be consumed in recycling the caustic soda than in manufacturing the fresh stock. Therefore, there will be reduced GHG emissions after the implementation of the project activity. Technological well being: The implementation of technology for soda recovery and recycling will provide a highly replicable model for other industries in this sector. Economical well being: Soda recovered from chemical recovery plant (CRP) will reduce the quantity required to be procured from market. Reduced soda requirement will lead to reduction in total cost of raw material which eventually brings in economical benefits for the company. Social well being: Installation of additional equipments in the plant will generate direct and indirect employment opportunities for skilled as well as unskilled labours. This will improve the local standard of living. Project activity will also facilitate capacity building amongst employees of the plant. A.3. Project participants: Name of Party involved (*) ((host) indicates a host Party) Private and/or public entity(ies) project participants (*) (as applicable) Kindly indicate if the Party involved wishes to be considered as project participant (Yes/No)

5 CDM Executive Board page 5 India Satia Paper Mills Limited No A.4. Technical description of the small-scale project activity: The project activity involves evaporation of the black liquor in a recovery boiler and causticizing, including lime regeneration. Black liquor obtained from pulp washing normally has dissolved solid contents of 8 % which has to be increased considerably before the liquor can be burnt. The liquor is concentrated in a multieffect evaporation plant so as to increase dry solid content upto %. Condensate from black liquor evaporators will vary in their degree of contamination according to origin. They are treated in a stripper column that is normally integrated with black liquor evaporation by using steam. Stripping condensate makes it possible to reuse the condensate in washing unbleached pulp and in the causticizing plant. The concentrated black liquor is burnt in the recovery boiler, to recover sodium and sulphur content in a suitable chemical form, to regenerate the pulping chemicals. The smelt from the boiler is dissolved in water to produce green liquor which consists mainly of sodium sulphide and sodium carbonate. The green liquor is clarified and causticized in a causticizing plant with lime where sodium carbonate is converted to sodium hydroxide for pulping. Weak Black Liquor Evaporation Plant Concentrated Black Liquor Recovery Boiler Smelt (Na 2 CO 3 + Na 2 S White Liquor NaOH +Na 2 S Causticizing Plant Green Liquor Smelt Dissolver Lime Mud CaCO 3

6 CDM Executive Board page 6 A.4.1. Location of the small-scale project activity: A Host Party(ies): India A Region/State/Province etc.: Punjab A City/Town/Community etc: Rupana, Distt. Muktsar A Detail of physical location, including information allowing the unique identification of this small-scale project activity(ies): The project activity is located within premises of paper manufacturing unit of SPML at Rupana village in Muktsar district in Punjab. The nearest railway station is located at Muktsar which is around 8 km from the plant site. Muktsar District is located in South Western Zone of Punjab. It lies between and latitude and and longitude. It is bounded by States of Rajasthan and Haryana in the South, district Faridkot in North, Firozpur in West and Bathinda in the East.

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8 CDM Executive Board page 8 A.4.2. Type and category(ies) and technology of the small-scale project activity: Main Category: Type III Other project activities Sub-category: (New category has been proposed.) As per the simplified modalities and procedures for small scale CDM project activities, the project activities qualifying in this category shall both reduce anthropogenic emissions by sources and directly emit less than 15 kilo tonnes of carbon dioxide equivalent annually. The proposed project activity of Satia Paper Mills Ltd. both reduces and directly emits less than 15,000 ton CO 2 equivalent emissions each year over the entire crediting period and emission reductions due to the project activity would be less than 25,000 tons of CO 2 equivalent per annum. Hence, project activity is eligible as small-scale project activity under Type III. Technology of project activity The technology used in the proposed project activity includes recovery of caustic soda from waste generated in the pulping process, which is weak black liquor. The major units involved in the recovery process are evaporator, recovery boiler and causticizing plant. A.4.3. Brief explanation of how the anthropogenic emissions of anthropogenic greenhouse gas (GHGs) by sources are to be reduced by the proposed small-scale project activity, including why the emission reductions would not occur in the absence of the proposed small-scale project activity, taking into account national and/or sectoral policies and circumstances: SPML has an annual consumption of approximately 11,000 tonnes of caustic soda for pulping and bleaching operations, which they were procuring from alkali manufacturers. After implementation of the caustic soda recovery project, approximately 9,900 tonnes of caustic soda has been recovered from waste liquor generated in pulp and paper manufacturing annually. In pre-project scenario SPML was procuring caustic soda from Punjab Alkalies & Chemicals Ltd. The energy consumption by the manufacturer for manufacturing caustic soda for recent three years 2 is as follows: Financial Year Electricity Consumed in kwh per tonne of Caustic Soda Data obtained from Punjab Alkali and Chemical Limited

9 CDM Executive Board page 9 However, energy consumption for recovering caustic soda in the recovery plant is about 625 kwh/tonne. It is evident from the figures that there is an overall reduction in electricity consumption, when caustic soda is recovered rather than being manufactured. Hence, there is reduction in GHG emissions associated with per unit energy generation. A Estimated amount of emission reductions over the chosen crediting period: Years Annual Estimation of emission reduction in tonnes of CO 2 e , , , , , , , , , ,241 Total estimated reductions (tonnes of CO 2 e) 192,410 Total number of crediting years 10 Annual Average over the crediting period of estimated reduction (tonnes of CO 2 e) 19,241 A.4.4. Public funding of the small-scale project activity: No public funding as part of project financing from parties included in Annex I of the convention is involved in the project activity. A.4.5. Confirmation that the small-scale project activity is not a debundled component of a larger project activity: According to, appendix C of the indicative simplified modalities and procedure for small scale CDM project activity. A project activity is considered to be a debundled component of large project activity if

10 CDM Executive Board page 10 there is a registered small scale CDM project or request for registration by another small scale project activity By the same project participants; In the same project category and technology/measure; and Registered within the previous 2 years; and Whose project boundary is within 1 km of the project boundary of the proposed small-scale activity at the closest point. SPML has implemented small scale projects for power and steam generation which do not fall under the same project category as this project. Hence, it can be said that above points are not valid in case of SPML project activity and it is not a debundled component of a large project activity.

11 CDM Executive Board page 11 SECTION B. Application of a baseline methodology: B.1. Title and reference of the approved baseline methodology applied to the small-scale project activity: Main Category: Type III Other project activities Sub-category: (New category has been proposed.) B.2. Project category applicable to the small-scale project activity: As per simplified modalities and procedures for small scale clean development mechanism project activities, the project activity falls under the Category Type III since, project activity reduces anthropogenic emissions by sources and emits less than 15,000 ton CO 2 equivalent per annum. Appropriate sub-category under this category has been proposed. B.3. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the registered small-scale CDM project activity: In accordance with paragraph 28 of the simplified modalities and procedures for small-scale CDM project activities, a simplified baseline and monitoring methodology may be used for a small-scale CDM project activity if project participants are able to demonstrate to a designated operational entity that the project activity would otherwise not be implemented due to the existence of one or more barrier(s) listed in Attachment A to Appendix B. Chemical recovery plants (CRP) are not mandatory by any statutory act or legal guidelines in India. Prior to the project activity SPML was treating black liquor in a biomethanation plant, and effluent discharge was meeting the prescribed standards. SPML s initiative of putting up a CRP plant is a voluntary effort to save energy by recovering caustic soda from waste liquor. Financial savings due to reduced caustic soda demand, and monetary benefits due to registration of the project under clean development mechanism, would hedge barriers elaborated in the following paragraphs: Technical Barriers: SPML is an agro based integrated paper manufacturing unit wherein wheat straw is being used as main raw material for pulping and paper manufacturing.

12 CDM Executive Board page High content of silica in raw material and thus in black liquor, results in frequent scaling of evaporator, and boiler. It will also lead to higher moisture content in sludge generating in causticizing plant which will create sludge handling problems due to its bulky volume. 2. High content of chloride in raw material and thus in black liquor results in scaling problems in evaporator and boiler. It will also cause problems in smelt flow in recovery boiler and poor causticizing in causticizing plant. 3. Black liquor of agro based pulp mill is highly viscous in nature which causes poor fluidity at high concentrations. Due to this high concentration from evaporator can not be achieved, high concentration of black liquor causes frequent choking of flow pipes. Investment Barrier SPML was incurring losses in operations in recent years. High debt burden on company forced company to undergo restructuring of its debt under corporate debt restructuring scheme (CDR) and company s operations were reviewed regularly by monitoring committee (MC) which comprised of company bankers and financers. MC restructured existing debts due by the SPML, although it approved SPML proposals of installing a chemical recovery plant, it did not approve any fresh loans or financial grants to the project plant. Due to non availability of loan, funding of the capital expenditure of project plant was done mainly by promoter s equity and by means of non secured loans, which was arranged with great difficulty. B.4. Description of how the definition of the project boundary related to the baseline methodology selected is applied to the small-scale project activity: Project boundary for this project activity includes all physical and geographical units involved in chemical recovery process. The project boundary also includes sources of caustic soda supply. The spatial extent includes all electricity generating plants. B.5. Details of the baseline and its development: Baseline for the project activity is purchase of quantity of caustic soda recovered in caustic soda recovery unit.

13 CDM Executive Board page 13 SECTION C. Duration of the project activity / Crediting period: C.1. Duration of the small-scale project activity: C.1.1. Starting date of the small-scale project activity: November, 2003 C.1.2. Expected operational lifetime of the small-scale project activity: 25 years C.2. Choice of crediting period and related information: C.2.1. Renewable crediting period: Not applicable. C Starting date of the first crediting period: Not Applicable. C Length of the first crediting period: Not Applicable. C.2.2. Fixed crediting period: 10 years C Starting date: 01/ C Length: 10 years

14 CDM Executive Board page 14 SECTION D. Application of a monitoring methodology and plan: D.1. Name and reference of approved monitoring methodology applied to the small-scale project activity: Main Category: Type III Other project activities Sub-category: (New category has been proposed.) D.2. Justification of the choice of the methodology and why it is applicable to the small-scale project activity: As per the provisions of paragraph 12 of Simplified Modalities and Procedures for Small Scale CDM Project Activities [FCCC/CP/2002/7/Add.3, English, Page 21] the Project participants may use the simplified baseline and monitoring methodologies if they meet the applicability criteria of Small scale CDM project activity. It is established in section A.4.2. above, that project activity meets mentioned criteria. D.3 Data to be monitored: Parameters affecting the emission reduction and are to be monitored both for baseline and project calculations are reported in table below

15 CDM Executive Board Page 15 ID number Data type Data variable Data unit Measu red (m), calcul ated (c) or estima ted (e) Recording Frequency Proportion of data to be monitored How will the data be archived? (electronic/ paper) For how long is archived data to be kept? D.3.1 Production Quantity of tonne m Daily Total Electronic 2 years after end (Q rec, y ) Liquor of crediting period recovered D.3.2 Energy Electricity Kwh m Daily Total Electronic 2 years after end (E PT ) consumed in of crediting period recovery plant D.3.3 Emission Emission Tonn c yearly Paper 2 years after end Factor factor of the e of crediting period (EF P ) electricity CO2/ generation Kwh for project Comment This is used to calculate baseline as well as project emissions This is used to calculate project emissions This is used to calculate project emissions

16 CDM Executive Board Page 16 ID number Data type Data variable Data unit D.3.4 Electricity Quantity of Kwh/ (E BT ) electricity tonne consumed by of the soda manufacturer D.3.5 Emission Factor (EF B ) Emission factor of the electricity being consumed by the manufacturer Tonn e CO2/ Kwh Measu Recording Proportion How will For how long is red (m), calcul ated (c) or estima ted (e) Frequency of data to be monitored the data be archived? (electronic/ paper) archived data to be kept? m yearly Total Electronic 2 years after end of crediting period c yearly Paper 2 years after end of crediting period Comment This is used to calculate baseline emissions. This is used to calculate baseline emissions.

17 CDM Executive Board Page 17 D.4. Qualitative explanation of how quality control (QC) and quality assurance (QA) procedures are undertaken: Quality control (QC) and quality assurance (QA) procedures are being undertaken for data monitored. (Data items in tables contained in section D.3 (a to b) above, as applicable) Data Uncertainty level of data (High/Medium/Low) Are QA/QC procedures planned for these data? D.3.1 Low Production has been monitored on daily basis and reported in a production log book. D.3.2 Low Electricity consumed in chemical recovery plant shall be monitored by energy meters. Calibration of these meters will be done as per standard procedures. D.3.3 Low Emission factor has been calculated using authentic national/local data (wherever available), otherwise IPCC values are used. D.3. 4 Low Quantity of electricity required to manufacture caustic soda shall be taken from reports submitted to company law board or any other report, verified or audited by an authorized third party. D.3.5 Low Emission factor has been calculated using authentic national/local data (wherever available), otherwise IPCC values are used. D.5. Please describe briefly the operational and management structure that the project participant(s) will implement in order to monitor emission reductions and any leakage effects generated by the project activity: SPML would ensure accuracy of the measurement of different parameters through its CDM monitoring team which has been constituted as follows.

18 CDM Executive Board Page 18 Director Director (Tech.) Vice President (works) Manager-Utilities Monitoring Supervisor-electrical Monitoring Supervisor-mechanical D.6. Name of person/entity determining the monitoring methodology: Satia Paper Mills Limited.

19 CDM Executive Board Page 19 SECTION E.: Estimation of GHG emissions by sources: E.1. Formulae used: E.1.1 Selected formulae as provided in appendix B: ERy = BEy PEy where: ERy BEy PEy Emission reduction in the year y (tonnes of CO 2 eq.) Baseline Emission in the year y (tonnes of CO 2 eq.) Project Emission in the year y (tonnes of CO 2 eq.) E.1.2 Description of formulae when not provided in appendix B: E Describe the formulae used to estimate anthropogenic emissions by sources of GHGs due to the project activity within the project boundary: where: PEy Qrec,y EPT EFP Qrec,y = 9900 tons per annum EPT = 2656 kwh/ton EFP = tco2/mu PEy = 5921 tco2 e PEy = Qrec,y X EPT X EFP Project activity direct emissions in the year y (tonnes of CO2 equivalent) Quantity of soda recovered in year y (tonnes) Electricity consumed for recovering 1 tonne of soda (kwh/tonne) Emission factor of the electricity used for recovering soda (tco2/kwh) E Describe the formulae used to estimate leakage due to the project activity, where required, for the applicable project category in appendix B of the simplified modalities and procedures for small-scale CDM project activities

20 CDM Executive Board Page 20 No leakages are considered under the project activity E The sum of E and E represents the small-scale project activity emissions: Project emissions = 5921 t CO2 e E Describe the formulae used to estimate the anthropogenic emissions by sources of GHGs in the baseline using the baseline methodology for the applicable project category in appendix B of the simplified modalities and procedures for small-scale CDM project activities: BEy = Qrec,y X EBT X EFB where: BEy Qrec,y EBT EFB Qrec,y = 9900 tonnes EBT = 625 kwh/ton Baseline emissions (CO2 eq emissions in absence of the project activity, ton) Quantity of soda recovered in the process (tones per annum) EFB = tco 2 /Million kwh BEy = tco 2 e Electricity consumed for producing 1 tonne of soda (kwh/tonne) Emission factor of the electricity used for soda production (tco2/kwh) E Difference between E and E represents the emission reductions due to the project activity during a given period: ERy = BEy PEy BEy = tco 2 e PEy = 5921 t CO 2 e ERy = tco 2 e

21 CDM Executive Board Page 21 E.2 Table providing values obtained when applying formulae above: Emission Reductions Baseline Emission factor (kg CO 2 /kwh) Project Emission factor (kg CO 2 /kwh) Baseline emissions tco 2 e Project emissions tco 2 e Emission Reductions tco 2 e Year TOTAL

22 CDM Executive Board Page 22 SECTION F.: Environmental impacts: F.1. If required by the host Party, documentation on the analysis of the environmental impacts of the project activity: The project activity obtained consent from state pollution control board in form of No Objection certificate for establishing the project activity. Following impacts have been identified by SPML on various environmental attributes due to the project plant. Land Since the project has been implemented within the premises of SPML no additional land was procured. Therefore issues like rehabilitation, change in land use pattern, ecological imbalance were not considered while evaluating impacts of the project on land environment. Air During construction phase of the project activity there has been an increase in the concentration of suspended particles in the atmosphere, which is a temporary impact. Overall impact of the project activity on air environment is positive because caustic soda recovery will eventually result in GHG emission reductions.

23 CDM Executive Board Page 23 SECTION G. Stakeholders comments: G.1. Brief description of how comments by local stakeholders have been invited and compiled: Considering the scope of the project activity, a meeting of all the stakeholders was organised by SPML. Local people, employees of the plant and representatives of Gram Panchayats were invited for the meeting. The project activity was explained to the attendees in the local language to make it more comprehensible. Also, before discussing the actual project, the stakeholders were introduced to basic knowledge of Green House Effect, GHGs, Clean Development Mechanism, CO 2 emissions, etc. After an elaborate discussion on the project, comments and suggestions were invited the stakeholders. Everybody was happy to know about the project and efforts of the organisation towards sustainable development. State Pollution Control Board was also informed about the project activity and its consent was received in the form of No Objection Certificate. The copy of the minutes of the meeting and NOC is available with SPML for the purpose of verification. G.2. Summary of the comments received: No comments were received during the stakeholder meeting, stakeholders appreciated SPML effort of putting up a regeneration technology for recovering soda from waste black liquor. The State Pollution Control Board has given the No Objection Certificate (NOC) for the project activity. G.3. Report on how due account was taken of any comments received: Minutes of meeting were compiled and send to different departments of SPML and stakeholders.

24 CDM Executive Board Page 24 Annex 1 CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY Organization Satia Paper Mills Limited Street / P.O. Box Building City State / Region Vill. Rupana District Muktsar Punjab Postfix / Zip Country Telephone FAX India satiaho@sancharnet.in URL Represented by Title Salutation Last Name Middle Name Director Mr. Bhandari First Name Department - R.K Mobile Direct FAX Direct Tel Personal satiaho@sancharnet.in

25 CDM Executive Board Page 25 Annex 2 INFORMATION REGARDING PUBLIC FUNDING No public funding as part of project financing from parties included in Annex I of the convention is involved in the project activity.