CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) Version 03 - in effect as of: 22 December 2006 CONTENTS

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1 CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) Version 03 - in effect as of: 22 December 2006 CONTENTS A. General description of the small scale project activity B. Application of a baseline and monitoring methodology C. Duration of the project activity / crediting period D. Environmental impacts E. Stakeholders comments Annexes Annex 1: Contact information on participants in the proposed small scale project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring Information 1

2 Revision history of this document Version Date Description and reason of revision Number 01 21/01/ 2003 Initial adoption /07/2005 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 < /12/ 2006 The Board agreed to revise the CDM project design document for small-scale activities (CDM-SSC-PDD), taking into account CDM-PDD and CDM-NM. 2

3 SECTION A. General description of small-scale project activity A.1 Title of the small-scale project activity: Utilization of Biogas and Power Generation on Wastewater from Ethanol Factory in the Kingdom of Thailand Version 01.2 Date: 04/04/2007 A.2. Description of the small-scale project activity: - The purpose of the project activity At the moment, wastewater discharged from the Pornvilai ethanol factory located on the project site is treated in open lagoon ponds. The project is designed to treat the wastewater in an anaerobic processing system (Digester) so as to restrict the atmospheric emission of methane gas. At the same time, the methane gas is recovered without leak in the atmosphere by means of anaerobic wastewater treatment to utilize for high- efficiency power generation by gas engine. The electricity generated is used to power the factory or grid connection, thus greenhouse gas reduction by fossil fuel consumption reduction for grid power supply equivalency is possible. Additionally, this project makes it possible for greenhouse gases to be reduced through the combustion of surplus methane gas by means of a flare stack, this to be installed in cases of emergency and possible equipment is installed. - The view of the project participants on the contribution of the project activity to sustainable development The following contribution to the sustainable development through the execution of the project is expected: * The protection of the environmental pollution due to improvement of wastewater quality by the improvement of the anaerobic wastewater treatment facilities ability. * Combat global warming by the effective utilization of biogas as a renewable energy source. * The protection of the environmental pollution by restraint on peripheral diffusion of emitted odour by means of the closed structure. * Effective utilization of land by space saving with a great help from of anaerobic processing method. * Against skyrocketing energy cost such as heavy oil, fossil-fuel consumption required for the power supply to the grid can energy-saving effect be reduced to the extent that the power generation by the project is supplied to the factory. * The transfer of technology for the methane fermentation process and biogas power generating equipment. * The project can disseminate around Southeast Asian countries including Thailand. It becomes clean technology demonstration project, and there is effect of that disseminate. * The project may also serve as a project for establishing the CDM as an important capability so that the project can demonstrate that it provides funds as new financial machinery to the renewable energy and waste management sectors in the country and the provinces. * The project will reduce energy import from abroad, thereby providing positive effects to the external payment balance of the country. Diversification of energy by its self-sufficiency and the security of energy supply will be also accelerated. 3

4 * The project will add value (production cost reduction and CER income) to ethanol industries of cassava, a valuable export commodity of Thailand. * Effective utilization of organic material of waste effluents involving the risk of generation of flammable methane gas. 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) Thailand (host) Pornvilai International Group Trading No Co., Ltd. (PVL) Thailand (host) Bio Natural Energy Company Limited No (BNE) Japan Kanematsu Corporation (KG) No Project concerned parties (Host and investing countries) Investing countries: At the moment, investing countries can not be determined. The consultation among negotiable parties is in progress but an official agreement among them has not been achieved. It will be determined at a later stage. All of the project concerned parties are private bodies. (Host country) * Pornvilai International Group Trading Co., Ltd (PVL): They are the owner of the ethanol factory for producing transport fuel ethanol from molasses (treacle), and they are also the supplier of the project site. * Bio Natural Energy Company Limited (BNE) SPC (Special Purpose Company), CDM Project Execution Company and the responsible organization for implementation of CDM project. (Japan) * Kanematsu Corporation (KG): Preparation of PDD, CDM project management and contacting point of the project For detailed contact address, see Annex 1. 4

5 A.4. Technical description of the small-scale project activity: At the moment, the wastewater after the production process of transport fuel ethanol from molasses (treacle) is discharged into the existing anaerobic lagoon pond (without the constructed cover). The wastewater from the factory is first discharged into the equalization pond (E1) for smoothing the inlet flow into the treatment process; then it is conveyed by pumps into the anaerobic lagoons (E2 [AN1] ~ E6 [AN5]) for treatment; thereupon, it is treated in the facultative lagoons (E7, 8, 9 [FAC-1, 2]) and the aerobic lagoons (E10, 11 [AL-1, 2]); finally it is treated in the polishing pond (E12, 13 [PL- 1, 2]) and then it is released. The residence time is more than 100 days. For reference s sake, the effluent standard of this factory is BOD < 20 mg/l and COD < 120 mg/l. The general plot plan of the wastewater treatment installation is shown in the Figure 1. Project object area Figure 1 General Plot Plan 5

6 The project is designed to apply the anaerobic wastewater treatment unit (Digester) to the existing anaerobic lagoon pond in order that the methane gas emitted in the atmosphere may be recovered and utilized for the gas engine power generator. The project will introduce two important technologies of which transfer is required on different characteristics stages in the region and the world. 1. Alleviation of methane gas emission: The technology required for alleviation of methane gas emission is a new technology to be transferred. The project calls for the following technology transfer: * Knowledge bio-engineering expertise mainly on a basis of Canadian technology (ADI Systems Inc.); * Technology component part of Digester 1 through the technology transfer. Advanced technological monitoring and management system are required so that the technology transfer will be promoted. 2. Biogas power generation: It has been characterized and deployed on a global basis; hence the technology may be obtained. A.4.1. Location of the small-scale project activity: A Thailand (Host country) A Ayuttaya Province A Tuarua District Host Party(ies): Region/State/Province etc.: City/Town/Community etc: 1 ADI System Inc. has the technology of methane fermentation process under the name of ADI-BVF Digester. 6

7 A Details of physical location, including information allowing the unique identification of this small-scale project activity : The aforesaid ethanol factory is located in the Ayuttaya Province about 60 km on the north of Bangkok and produces transport fuel ethanol from molasses (treacle). The factory is largely surrounded by rice farms and small neighbourhood consisting of a hundred of houses in the south of the factory. Open space around the factory allows construction of site and its construction will not create such large daily-life disturbance. The whole project limits a negative environmental and daily-life effect by reducing methane gas and odor generated from wastewater in open lagoon. The address is as follows: PORNVILAI INTERNATIONAL GROUP TRADING Co., Ltd (PVL): 55/5 Moo 1 Tharua-Wongdaeng Rd., Tumbon Salaloy, Ampur Tharua, Ayuttaya 13130, Thailand Ayuttaya Province Tuarua District Pornvilai International Group Trading Co.,Ltd. Figure 2 Location of Project Site A.4.2. Type and category(ies) and technology/measure of the small-scale project activity: AMS- III.H. Methane Recovery in Wastewater Treatment This category covers the methane recovery component of the project by (vi) introduction of a sequential stage of wastewater treatment with methane recovery and combustion, with or without sludge treatment, to an existing wastewater treatment system without methane recovery. Measures are limited to those that result in emission reductions less than or equal to 60,000 tco 2 e annually. AMS- I.D. Grid Connected Renewable Electricity Generation This category comprises renewable energy generation units, such as photovoltaics, hydro, tidal/wave, wind, geothermal and renewable biomass, that supply electricity to and/or displace electricity from an electricity distribution system that is or would have been supplied by at least one fossil fuel fired generating unit. The added capacity shall be not exceed 15MW. 7

8 A.4.3 Estimated amount of emission reductions over the chosen crediting period: The crediting period of the project is 7 years and the total emission reduction amounts to 211,652 tco2 e for the crediting period. Table 1 Total Emission Reduction for Crediting Period Year Annual estimated of emission reductions (tco2 e) , , , , , , ,236 Total estimated reductions (tco2 e) 211,652 Total number of crediting years 7 Annual average over the crediting period of 30,236 estimated reductions (tco2 e) A.4.4. Public funding of the small-scale project activity: Public funds will not be invested in this project. A.4.5. Confirmation that the small-scale project activity is not a debundled component of a large scale project activity: From there not being other CDM project activity within 1km from boundary of this project activity, this project is not debundling. SECTION B. Application of a baseline and monitoring methodology B.1. Title and reference of the approved baseline and monitoring methodology applied to the small-scale project activity: AMS- III.H. Methane Recovery in Wastewater Treatment (Version 4, Scope 13, 15, dated 23/12/2006) AMS- I.D. Grid Connected Renewable Electricity Generation (Version 10, Scope 1, dated 23/12/2006) 8

9 B.2 Justification of the choice of the project category: AMS- III.H. Methane Recovery in Wastewater Treatment The applicability criteria for the methodology are as below. 1. This project category comprises measures that recover methane from biogenic organic matter in wastewaters by means of one of the following options: (i) Substitution of aerobic wastewater or sludge treatment systems with anaerobic systems with methane recovery and combustion. (ii) Introduction of anaerobic sludge treatment system with methane recovery and combustion to an existing wastewater treatment plant without sludge treatment. (iii) Introduction of methane recovery and combustion to an existing sludge treatment system. (iv) Introduction of methane recovery and combustion to an existing anaerobic wastewater treatment system such as anaerobic reactor, lagoon, septic tank or an on site industrial plant. (v) Introduction of anaerobic wastewater treatment with methane recovery and combustion, with or without anaerobic sludge treatment, to an untreated wastewater stream. (vi) Introduction of a sequential stage of wastewater treatment with methane recovery and combustion, with or without sludge treatment, to an existing wastewater treatment system without methane recovery (e.g. introduction of treatment in an anaerobic reactor with methane recovery as a sequential treatment step for the wastewater that is presently being treated in an anaerobic lagoon without methane recovery). 2. If the recovered methane is used for heat and or electricity generation that component of the project activity can use a corresponding category under type I. 3. Measures are limited to those that result in emission reductions of less than or equal to 60 kt CO2 equivalent annually. The proposed CDM project activity deals with the implementation of digester at an existing ethanol manufacturing plant to treat the organic wastewater generated in the production process. Methane produced during the process in the digester is captured using appropriate systems. The captured methane is used to power generation as replace purchased electricity presently used for internal demand in the plant. Thus, the project satisfies Criteria (iv) above. The recovered methane is combusted in gas engines for electricity generation for the factory, which displaces bought-in grid electricity. Thus component of the project activity can use a category under type I.D.. Section A.4.3. demonstrates that the estimated annual emission reduction of the project activity during the crediting period is 30,236 tco 2 e only, which is not exceeding the maximum proposed value of 60 kt CO 2 e in any year of the crediting period, as proposed by the Type III category of project activity guidelines. AMS- I.D. Grid Connected Renewable Electricity Generation For the renewable electricity generation component of the project activities, the added generation capacity is less than 15 MW. The power generation capacity added to this project is 600kW, and it is not exceed 15MW. 9

10 B.3. Description of the project boundary: The project boundary for type III.H. (AMS-III.H.) projects is the physical, geographical site of the methane recovery facility. The project boundary for type I.D. (AMS-I.D.) is the physical, geographical site of the renewable generation source. * Substitute power energy / emission level: The boundary is assumed to be a regional boundary in Thailand as far as the working scope of the grid system is concerned on grounds that the power transmission of hydraulic power generation in the grid system is considered as carbon neutral. * Imperfect combustion methane emission: Power generating equipment and a flare stack installation are included in the boundary. * Emission leaked from anaerobic reactor tank and pipelines: Biogas production in reactor tanks and emission during biogas supply of pipelines are included. The scope of the project boundary is defined as the plant connecting with the project site and the project related grid system. 10

11 Grid Fed Electricity & Emissions displaced by biogas :Project boundary BNE- Project Operating Company omanagement of Digester o Provider of energy services Ethanol Factory Facility o Production of ethanol product o Production of wastewaters o Use of electricity from ethanol product Equalization Pond(E1)(EQ) osmoothing of inflow to the treatment process Fugitive Methane from pipeline, or incomplete combustion Flare Stack o Excess Biogas o Emergency flaring Gene. Sets o Biogas electricity production Biogas Pipeline Digester oreceived wastewater flows odelivers biogas Pond oreceives waste-water from Digester Figure 3 Project Boundary 11

12 B.4. Description of baseline and its development: The baseline study was concluded using relevant methodology AMS-I.D. and AMS-III.H. * The appropriate baseline for project category Type I.D. (AMS-I.D.) is found in paragraphs 7 to 11. * The appropriate baseline for project category Type III.H. (AMS-III.H.) is found in paragraphs 7 and 9. Details of calculations are as the followings: For AMS-III.H.: In this case, the baseline scenario is continuation of the present open lagoon based treatment of organic wastewater and release of methane into the atmosphere. The above stated condition fits well with paragraphs 6 baseline scenario (iv) of the AMS-III.H. methodology, The existing anaerobic wastewater treatment system without methane recovery and combustion as suggested in indicative simplified baseline and monitoring methodologies for selected small-scale CDM project activity categories, III.H., Version 4, Scope 13, 15 dated 23/12/2006. MEPy,ww,treatment = Qy,ww * CODy,ww,untreated * Bo,ww * MCFww,treatment Where, Description Variables Value Unit Source Volume of wastewater per day m 3 /day Estimated plant data Operating days days/yr Estimated plant data Volume of wastewater Qy,ww 96,000 m 3 - COD of the wastewater to be treated in the digester Methane producing capacity of the wastewater Methane correction factor for the wastewater treatment system CODy,ww,untreated kg/m 3 Measured plant data (Refer to Annex 3 BASELINE INFORMATION) Bo,ww 0.21 kg CH 4 /kg COD IPCC default value MCFww,treatment IPCC default value MCF lower value Anaerobic deep lagoon (depth more than 2 metres) MEPy,s,treatment = Sy,untreated * DOCy,s,untreated * DOCF * F * 16/12 * MCFs,treatment Where, Description Variables Value Unit Source Amount of untreated sludge Sy,untreated 0 tonnes Estimated plant data generated Degradable organic content of the untreated sludge generated DOCy,s,untreated IPCC default value (industrial sludge) Fraction of DOC dissimilated DOCF IPCC default value to biogas Fraction of CH 4 in landfill gas F IPCC default value 12

13 Methane correction factor for the sludge treatment system that will be equipped with methane recovery and combustion MCFs,treatment IPCC default value MCF lower value Anaerobic deep lagoon (depth more than 2 metres) BEy = MEPy,ww,treatment * GWP_CH4 + MEPy,s,treatment * GWP_CH4 = 2,168 (tonnes/yr) * (tonnes/yr) * 21 = 45,520 (tco 2 e/yr) For AMS-I.D.: BEgrid baseline electricity generation emissions (tco 2 e/year) BEgrid = EP BIO * CEFgrid = 2,106 (tco 2 e/yr) Where, Description Variables Value Unit Source Electricity produced by the biogas generator unit for grid electricity replacement Grid emission factor EP BIO 4,138 MWh/yr Calculated based on the captured methane volume CEFgrid kg CO 2 e/kwh Published by Thai DNA Total baseline emission: The total baseline emission is the sum of the two discussed above. BE = BEy + BEgrid = 45,520 (tco 2 e/yr) + 2,106 (tco 2 e/yr) = 47,676 (tco 2 e/yr) 13

14 B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the registered small-scale CDM project activity: The project activity would not have occurred due to at least any one of the following. Alternative baseline scenarios tested. Scenario 1: Scenario of continuity of the current practice (Business-as-usual) Scenario 2: Aerobic treatment of wastewaters (activated sludge or filter bed type treatment) Scenario 3: Proposed project (The proposed project is designed to recover methane gas through anaerobic processing digester for power generation. The electric power generated is used for own purpose or grid connection, while surplus gas will be burned for diffusion.) Investment barrier By the Business-as-usual scenario, this technology is already installed and funding is not required any more. A simple alternative to the proposed project activity is a simple aerated lagoon (Perform oxygen supply in a lagoon) operated by mechanical aerators which infuse the oxygen required for the decomposition of the organic matter in to the wastewater. This technology is relatively simpler and low-cost compared to the proposed activity. However aerated lagoons also consume electricity for the aerators. Aerobic treatment (activated sludge or filter bed type treatment) is superior in a processing function. But aerobic treatment uses much electricity for an aeration device, and excess sludge occurring abundantly becomes a problem. In addition, this is higher cost compared to conventional systems. And there is not an income source by introduction. The ADI-Digester has appropriate systems that can control, accelerate and capture the methane emissions arising in the process, but of course at a higher cost compared to conventional systems. Internal rate of return (IRR) of this project is calculated on the condition of the Table 2 and the Table 3 Table 2 Recondition of Internal Rate of Return (IRR) calculation Items Value Unit Remarks Initial investment 3.32 Million USD - Maintenance cost and utility costs in Million USD 0.14 year /yr - Labor cost 0 Million USD /yr Purchased power price 3.24 Baht/kWh Average 2006 year Generated electric power 600 kw ADI Systems Inc. Total power generation 4,138 MWh/yr - GHG emission reduction 30,236 t CO 2 e Refer to Section B.6.4 CERs price US$/t CO 2 e - Project operational lifetime and crediting period Existing factory worker, will double as the plant worker. 14 Years Refer to Section C 14

15 Table 3 Recondition of tax, depreciation etc. Items Value Unit Remarks Corporation tax 30 % Tax rate of Thailand Interest, Borrowing period - - Because it will be implemented in the fund on hand completely, it isn't considered for the IRR calculation. Payment start time 2009 year - Depreciation taxable 3.0 Million USD Equipment cost and design expense Depreciation period 10 years Least 5 years Depreciation method and rate fixed installment method, 10% Salvage value 10 % - Price inflation rate 0 % Exchange rate (Baht USD) Baht/US$ - Fixed installment method is general in Thailand. It isn't considered for the IRR calculation. The calculation results of the Internal Rate of Return (IRR) of this project in case of without CERs and with CERs are shown in the Table 4. Table 4 Project IRR (After-tax) without CERs with CERs Project IRR % 11.2 % IRR estimates indicate that the rate of return, % is lower value if CERs revenue is not taken into account. These estimates do not take into account the risk associated with the operation of the plant to capture methane. Thus, it is clear that the project s IRR is not attractive for investment. This adequately demonstrates that the project cannot proceed on a business-as-usual basis. Technology barrier The proposed project activity is the forced extraction of methane and its combustion in the gas engine. Under the business-as-usual scenario, the plant uses anaerobic lagoons to treat the wastewater. This is method of low technology. This type system is widely used in Thailand and other regions. It is considered low-risk technology. The present wastewater treatment facility, open-lagoon system, is able to treat the wastewater and meet the current environmental standards, with 120 mg or less COD per liter of wastewater released into the water bodies. Alternative treatment technologies available for comparison are the BAU condition and the installation of forced aeration systems that can supply the oxygen required for degrading the organic content in the wastewater. Anaerobic lagoons, as prevailing in this case, and aeration systems are the viable technologies available in Thailand for treating high-organic wastewaters. Though several other methods, such as the one to be implemented in this case are available, all these technologies have not diffused into the country. 15

16 Aerobic treatment (activated sludge or filter bed type treatment) is new type installation in Thailand. But it is not almost used on a commercial scale. And it involves potentially lower risks than the ADI- Digester treatment, but it is not regarded as the optimum technology in Thailand. The proposed project activity can be divided into three components. Pretreatment of the wastewater, Methane extraction using a digester, Utilizing the biogas for gas engine All operating parameters for the pretreatment component need to be maintained at the right level for the reactor to receive quality feedstock. In any case, inappropriate maintenance of operating conditions in pretreatment poses significant risks to the successful generation of methane. The ADI-Digester is critical equipment, which forces methane generation. The operating conditions need to be carefully maintained for efficient operation of the reactor. Owing to such inherent risks and non-availability of appropriate technologies adequately addressing all operation and maintenance issues, ADI-Digester have not been the most preferred choice for wastewater treatment in the country. Commonly available, simple, cost-effective technologies using either anaerobic or aerated lagoons have been the adopted ones in several places. Therefore it could be concluded that the ADI-Digester technology reasonably poses significant risks in operation and maintenance in relation to its simple counterparts. Barrier due to prevailing practice Legal The current practise is a standard case where industrial wastewater involving high-organic load is treated on a basis of ponds in the area as well as Thailand. Direct discharge into water body (inclusive of rivers and lakes) is illegal. Aerobic and anaerobic liquid waste treatment observe it on a current law together and do not take an application of an additional rule. Most of the plants use open lagoon system in Thailand. The possibility of making the existing wastewater discharge standards more stringent is very small and even if such an action is taken, the existing system can be extended by creating more retention ponds to meet stricter norms, for which additional land is readily available. Social The open lagoon systems are presently used and social barrier is almost not found. They are accepted as part of regional circumstances and standard operational practice by commercial entities. Anaerobic and aerobic installations could cause a small number of social barriers to be created through risks (explosion or smells). Although social barriers may be least, there is some possibility for barriers to implementation of new technology. 16

17 Other barriers It is considered that the current pond-based treatment is a standard operational baseline in Thailand and neighbouring areas. They have no positive experience of utilizing aerobic or anaerobic technology in Thailand. It is not assumed that the ordering priority of management for the technology is high. The high-priority issue for most of business people in this sector is the management of wastewater release for keeping easily with local regulations. More ample scale of management resources is required for the capital intensive energy production. Therefore, it is assumed that digesting process is not given their prior attention. Baseline Alternative Table 5 Summarized Results of Barrier Analysis Scenario 1: Scenario 2: Scenario 3: Continuity of the Aerobic Proposed current practice treatment project Barrier Tested Investment barrier Y Y Y Technology barrier N Y/N Y Barrier due to prevailing practice N Y/N Y/N Other barriers N Y Y The choice Y means that there are barriers; the choice N means that there is no barrier; the choice NA means that the relevant subject is not applicable. Addtionality Determination Conclusion Since the project activity that will use the ADI-Digester technology confronts investment, technical, barrier due to prevailing practice and other barriers while the current lagoon system does not, the baseline is confirmed as the continuation of current lagoon system practice and the Project is additional. And this adequately demonstrates that the project activity cannot proceed on a business-as-usual basis. B.6. Emission reductions: B.6.1. Explanation of methodological choices: The project follows the AMS-III.H. small scale methodology for Methane Recovery in Wastewater Treatment, Version 4, Scope 13, 15 dated 23/12/2006. In addition, the project follows the AMS-I.D. small scale methodology for Grid Connected Renewable Electricity Generation, Version 10, Scope 1 dated 23/12/2006. Estimating the Baseline emissions: The baseline emission is calculated as follows: 1) Total Baseline Emission = BEy + BEgrid 2) 3) Where, BEy = Baseline methane emission from an existing wastewater treatment (AMS-III.H)(Baseline Emission) (tco 2 e/yr) BEgrid = Baseline electricity generation emissions (tco 2 e/yr) 17

18 2) Baseline methane emission from an existing wastewater treatment (BEy) The baseline emissions from the lagoons are estimated based on the Chemical Oxygen Demand (COD) of the effluent that would enter the lagoon in the absence of the project activity, the maximum methane producing capacity (Bo) and a methane conversion factor (MCF) that expresses what proportion of the effluent would be anaerobically digested in the open lagoons. BEy = MEPy,ww,treatment * GWP_CH4 + MEPy,s,treatment * GWP_CH4 2)-1 2)-2 Where, MEPy,ww,treatment :Methane emission potential of wastewater treatment plant (tonnes/yr) MEPy,s,treatment :Methane emission potential of the sludge treatment system (tonnes/yr) GWP_CH4 :Global Warming Potential for methane (value of 21 is used) 2)-1 MEPy,ww,treatment = Qy,ww * CODy,ww,untreated * Bo,ww * MCFww,treatment Where, Qy,ww :Volume of wastewater treated (m 3 /yr) CODy,ww,untreated :Chemical oxygen demand of the wastewater entering the anaerobic treatment reactor/system with methane capture (tonnes/m 3 ) Bo,ww :Methane producing capacity of the wastewater (IPCC default value for domestic wastewater of 0.21 kg CH 4 /kg.cod) MCFww,treatment :Methane correction factor for the wastewater treatment system that will be equipped with methane recovery and combustion (MCF lower value in Table III.H.1.) 2)-2 MEPy,s,treatment :Methane emission potential of the sludge treatment system is considered zero as there is no emission from sludge. 3) Baseline electricity generation emissions (BEgrid) BEgrid = EP BIO * CEFgrid Where, EP BIO CEFgrid :Electricity produced by the biogas generator unit for grid electricity replacement (MWh/yr) :Grid emission factor (kg CO 2 e/kwh) Estimating the Project emissions: The project activity emission is calculated using the following: Due to the project activity, the emission will be from the electricity used for the project, emission through treated wastewater, emission through the final sludge produced, emission through capture and flare system and emission through dissolved methane in treated wastewater. 18

19 PEy = PEy, power + PEy,ww,treated + PEy,s,final + PEy,fugitive + PEy,dissolved 4) 5) 6) 7) 8) Where, PEy PEy,power PEy,ww,treated PEy,s,final PEy,fugitive PEy,dissolved :Project activity emissions (tco 2 e/yr) :Emissions from electricity or diesel consumption (tco 2 e/yr) :Emissions from degradable organic carbon in treated wastewater (tco 2 e/yr) :Emissions from anaerobic decay of the final sludge produced (tco 2 e/yr) :Emissions from methane release in capture and flare systems (tco 2 e/yr) :Emissions from dissolved methane in treated wastewater (tco 2 e/yr) 4) Emissions from electricity or diesel consumption (PEy,power) PEy,power = Electricity consumed by the auxiliary equipment (MWh/yr) * Grid emission factor (tco 2 /MWh) 5) Emissions from degradable organic carbon in treated wastewater (PEy,ww,treated) PEy,ww,treated = Qy,ww * CODy,ww,treated * Bo,ww * MCFww,final * GWP_CH4 Where, Qy,ww :Volume of wastewater treated (m 3 /yr) CODy,ww,treated :Chemical oxygen demand of the treated wastewater (tonnes/m 3 ) 2 Bo,ww MCFww,final :Methane producing capacity of the wastewater (IPCC default value for domestic wastewater of 0.21 kg CH 4 /kg.cod) :Methane correction factor based on type of treatment and discharge pathway of the wastewater (fraction) (MCF Higher Value in table III.H.1 for sea, river and lake discharge i.e. 0.2). 6) Emissions from anaerobic decay of the final sludge produced (PEy,s,final) PEy,s,final = Sy,final * DOCy,s,final * MCFs,final * DOCF * F * 16/12 * GWP_CH4 Where, Sy,final :Amount of final sludge generated by the wastewater treatment (tonnes/yr) DOCy,s,final :Degradable organic content of the final sludge generated by the wastewater treatment (fraction). DOCF :Fraction of DOC dissimilated to biogas (IPCC default value of 0.5) F :Fraction of CH 4 in landfill gas (IPCC default value of 0.5). MCFs,final :Methane correction factor of the landfill that receives the final sludge, estimated as described in category AMS III.G. 2 The IPCC default value of 0.25 kg CH4/kg COD was corrected to take into account the uncertainties. For domestic waste water, a COD based value of Bo,ww can be converted to BOD5 based value by dividing it by 2.4 i.e. a default value of kg CH4/kg BOD can be used. 19

20 7) Emissions from methane release in capture and flare systems (PEy,fugitive) PEy,fugitive = PEy,fugitive,ww + PEy,fugitive,s 7)-1 7)-2 Where, PEy,fugitive,ww :Fugitive emissions through capture and flare inefficiencies in the anaerobic wastewater treatment (tco 2 e/yr) PEy,fugitive,s :Fugitive emissions through capture and flare inefficiencies in the anaerobic sludge treatment (tco 2 e/yr) 7)-1 PEy,fugitive,ww = (1 - CFEww) * MEPy,ww,treatment * GWP_CH4 7)-1-1 Where, CFEww :Capture and flare efficiency of the methane recovery and combustion equipment in the wastewater treatment (a default value of 0.9 shall be used, given no other appropriate value) MEPy,ww,treatment :Methane emission potential of wastewater treatment plant (tonnes/yr) 7)-1-1 MEPy,ww,treatment = Qy,ww * CODy,ww,untreated * Bo,ww * MCFww,treatment Where, Qy,ww :Volume of wastewater treated (m 3 /yr) CODy,ww,untreated :Chemical oxygen demand of the wastewater entering the anaerobic treatment reactor/system with methane capture (tonnes/m 3 ) Bo,ww :Methane producing capacity of the wastewater (IPCC default value for domestic wastewater of 0.21 kg CH 4 /kg.cod) MCFww, treatment :Methane correction factor for the wastewater treatment system that will be equipped with methane recovery and combustion (MCF higher values in table III.H.1) 7)-2 PEy,fugitive,s = (1 - CFEs) * MEPy,s,treatment * GWP_CH4 7)-2-1 Where, CFEs :Capture and flare efficiency of the methane recovery and combustion equipment in the sludge treatment (a default value of 0.9 shall be used, given no other appropriate value) MEPy,s,treatment :Methane emission potential of the sludge treatment system (tonnes/yr) 20

21 7)-2-1 MEPy,s,treatment = Sy,untreated * DOCy,s,untreated * DOCF * F * 16/12 * MCFs,treatment Where, Sy,untreated :amount of untreated sludge generated (tonnes) DOCy,s,untreated :Degradable organic content of the untreated sludge generated (fraction). It shall be measured by sampling and analysis of the sludge produced, and estimated exante using the IPCC default values of 0.05 for domestic sludge (wet basis, considering a default dry matter content of 10 percent) or 0.09 for industrial sludge (wet basis, assuming dry matter content of 35 percent) DOCF :Fraction of DOC dissimilated to biogas (IPCC default value of 0.5) F :Fraction of CH 4 in landfill gas (IPCC default value of 0.5) MCFs,treatment :methane correction factor for the sludge treatment system that will be equipped with methane recovery and combustion (MCF Higher value of 1.0 as per table III.H.1). 8) Emissions from dissolved methane in treated wastewater (PEy,dissolved) PEy,dissolved = Qy,ww * [CH4]y,ww,treated * GWP_CH4 Where, Qy,ww :Volume of wastewater treated (m 3 /yr) [CH4]y,ww,treated :Dissolved methane content in the treated wastewater (tonnes/m 3 ). In aerobic wastewater treatment default value is zero, in anaerobic treatment it can be measured, or a default value of 10e-4 tonnes/m 3 can be used. Leakage: As per AMS-I.D., paragraph 12 and AMS-III.H., paragraph 8: No leakage calculation is required since the equipment is not being transferred to or from another activity. Emission Reduction: ERy = Total Baseline emission - (Total PEy + Total Leakagey) ERy = Emission Reduction (tco 2 e/yr) 21

22 B.6.2. Data and parameters that are available at validation: (Copy this table for each data and parameter) Data / Parameter: Operating days per year Data unit: Days/yr Description: This represents the number of days the ethanol plant is operating in a year. Source of data used: Plant owner Value applied: 320 Justification of the The data is based on the historical recorded data in the plant. choice of data or description of measurement methods and procedures actually applied : Any comment: N/A Data / Parameter: CEFgrid Data unit: t CO 2 e/mwh Description: Grid emission factor Source of data used: Thai DNA published on Value applied: Justification of the Data are values mentioned in HP of DNA. choice of data or The emission factor during this project period uses this value (ex-ante). description of measurement methods and procedures actually applied : Any comment: N/A Data / Parameter: S y,untreated Data unit: tonnes Description: Amount of untreated sludge generated annually Source of data used: Project design Value applied: 0 Justification of the N/A choice of data or description of measurement methods and procedures actually applied : Any comment: N/A 22

23 Data / Parameter: Depth of open lagoon Data unit: m (meter) Description: Depth of ponding water (from the water surface to the bottom of the pond) Source of data used: Plant condition Value applied: > 2.7 Justification of the Based on plant condition choice of data or description of measurement methods and procedures actually applied : Any comment: Essential to determine if the lagoons capable of anaerobic digestion in baseline. Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: MCFww,treatment No unit Methane correction factor for the wastewater treatment system that will be equipped with methane recovery and combustion IPCC default value for anaerobic decay of the untreated wastewater 0.8 for Baseline emission calculation 1.0 for Project emission calculation If the depth of the open lagoons is more then 2 m, then the MCF lower value/higher value in table III.H.1 is used. The data is essential to determine the methane emission potential of the wastewater entering the treatment system during baseline and project emission estimations. Data / Parameter: CFEww Data unit: Percentage Description: Capture and Flare efficiency of the methane recovery and combustion equipment in the wastewater treatment Source of data used: Default value from UNFCCC methodological tool to determine project emissions from flaring gases containing methane Value applied: 90 Justification of the Essential to calculate fugitive emissions through capture & flare inefficiencies choice of data or in the anaerobic wastewater treatment. description of measurement methods and procedures actually applied : Any comment: Flame is detected on minute basis and flow rate of biogas is monitored continuously to use this default value. Enclosed flare is used. 23

24 Data / Parameter: Bo,ww Data unit: kg CH 4 /kg.cod Description: Methane producing capacity of the wastewater Source of data used: IPCC default value for domestic wastewater Value applied: 0.21 Justification of the The earlier default value of IPCC was Taking in to account the uncertainty choice of data or of this estimate and considering the fact that the above furnished value (0.21) description of has been established as the result of comprehensive discussions among the measurement methods methodology panel as well as the CDM Executive Board, it is a conservative and procedures actually and transparent approach for the project participant to adopt this value for the applied : methane producing capacity of the wastewater. Any comment: N/A Data / Parameter: COD influent into the digester Data unit: kg/m 3 Description: COD of the wastewater from the ethanol plant before treatment Source of data used: Field measurement Value applied: Justification of the Based on the field measurement choice of data or description of measurement methods and procedures actually applied : Any comment: N/A 24

25 B.6.3 Ex-ante calculation of emission reductions: Estimating the Baseline emissions: The baseline emission is calculated as follows: 1) Total Baseline Emission = BEy + BEgrid 2) 3) = 45,520 (tco 2 e/yr) + 2,106 (tco 2 e/yr) = 47,626 (tco 2 e/yr) 2) Baseline methane emission from an existing wastewater treatment (BEy) The baseline emissions from the lagoons are estimated based on the Chemical Oxygen Demand (COD) of the effluent that would enter the lagoon in the absence of the project activity, the maximum methane producing capacity (Bo) and a methane conversion factor (MCF) that expresses what proportion of the effluent would be anaerobically digested in the open lagoons. BEy = MEPy,ww,treatment * GWP_CH4 + MEPy,s,treatment * GWP_CH4 2)-1 2)-2 = 2,168 (tonnes/yr) * (tonnes/yr) * 21 = 45,520 (tco 2 e/yr) 2)-1 MEPy,ww,treatment = Qy,ww * CODy,ww,untreated * Bo,ww * MCFww,treatment = 96,000 (m 3 /yr) * (tonnes/m 3 ) * 0.21 (kg CH 4 /kg.cod) * 0.8 = 2,168 (tonnes/yr) 2)-2 MEPy,s,treatment = 0 (tonnes/yr)(methane emission potential of the sludge treatment system is considered zero as there is no emission from sludge.) 3) Baseline electricity generation emissions (BEgrid) BEgrid = EP BIO * CEFgrid = 4,138 (MWh/yr) * (kg CO 2 e/kwh) = 2,106 (tco 2 e/yr) Estimating the Project emissions: The project activity emission will be calculated using the following: Due to the project activity, the emission will be from the electricity used for the project, emission through treated wastewater, emission through the final sludge produced, emission through capture and flare system and emission through dissolved methane in treated wastewater. 25

26 PEy = PEy, power + PEy,ww,treated + PEy,s,final + PEy,fugitive + PEy,dissolved 4) 5) 6) 7) 8) = 117 (tco 2 e/yr) + 11,380 (tco 2 e/yr) + 0 (tco 2 e/yr) + 5,691 (tco 2 e/yr) (tco 2 e/yr) = 17,390 (tco 2 e/yr) 4) Emissions from electricity or diesel consumption (PEy,power) PEy,power = Electricity consumed by the auxiliary equipment (MWh/yr) * Grid emission factor (t CO 2 /MWh) = (MWh) * (kg CO 2 e/kwh) = 117 (tco 2 e/yr) 5) Emissions from degradable organic carbon in treated wastewater (PEy,ww,treated) PEy,ww,treated = Qy,ww * CODy,ww,treated * Bo,ww * MCFww,final * GWP_CH4 = 96,000 (m 3 /yr) * (tonnes/m 3 ) * 0.21 (kg CH 4 /kg.cod) * 1.0 * 21 = 11,380 (tco 2 e/yr) 6) Emissions from anaerobic decay of the final sludge produced (PEy,s,final) PEy,s,final = Sy,final * DOCy,s,final * MCFs,final * DOCF * F * 16/12 * GWP_CH4 = 0 (tco 2 e/yr) 7) Emissions from methane release in capture and flare systems (PEy,fugitive) PEy,fugitive = PEy,fugitive,ww + PEy,fugitive,s 7)-1 7)-2 = 5,690 (tco 2 e/yr) + 0 (tco 2 e/yr) = 5,690 (tco 2 e/yr) 7)-1 PEy,fugitive,ww = (1 - CFEww) * MEPy,ww,treatment * GWP_CH4 7)-1-1 = (1-0.9) * 2,710 (tonnes /yr) * 21 = 5,691 (tco 2 e/yr) 7)-1-1 7)-2 MEPy,ww,treatment = Qy,ww * CODy,ww,untreated * Bo,ww * MCFww,treatment = 96,000 (m 3 /yr) * (tonnes/m 3 ) * 0.21 (kg CH 4 / kg COD) * 1.0 = 2,710 (tonnes/yr) PEy,fugitive,s = (1 - CFEs) * MEPy,s,treatment * GWP_CH4 7)-2-1 = (1-0.9) * 0 (tonnes /yr) * 21 = 0 (tco 2 e/yr) 7)-2-1 MEPy,s,treatment = Sy,untreated * DOCy,s,untreated * DOCF * F * 16/12 * MCFs,treatment = 0 (tonnes/yr) 8) Emissions from dissolved methane in treated wastewater (PEy,dissolved) 26

27 PEy,dissolved = Qy,ww * [CH4]y,ww,treated * GWP_CH4 = 96,000(m 3 /yr) * 10-4 (tonnes/m 3 ) * 21 = 202 (tco 2 e/yr) Leakage: As per AMS-I.D., paragraph 12 and AMS-III.H., paragraph 8: No leakage calculation is required since the equipment is not being transferred to or from another activity. Emission Reduction: ERy = Total Baseline emission - (Total PEy + Total Leakagey) = 47,626 (tco 2 e/yr) - (17,390 (tco 2 e/yr) + 0 (tco 2 e/yr)) = 30,236 (tco 2 e/yr) B.6.4 Year Summary of the ex-ante estimation of emission reductions: Estimated emission in the baseline (tco 2 e) Estimated emission of project activity (tco 2 e) Estimated leakage (tco 2 e) Estimated emission reduction (tco 2 e) ,626 17, , ,626 17, , ,626 17, , ,626 17, , ,626 17, , ,626 17, , ,626 17, ,236 Total (t-co 2 e) 333, , ,652 27

28 B.7 Application of a monitoring methodology and description of the monitoring plan: B.7.1 Data and parameters monitored: Data / Parameter: Qy,ww Data unit: m 3 /yr Description: Volume of wastewater treated Source of data to be Electronic measurement used: Value of data 96,000 Description of measurement methods The data is measured continuously and the measurements are taken using flow meters electronically. and procedures to be applied: QA/QC procedures to be applied: The flow meter undergo maintenance / calibration subject to appropriate industry standards. Any comment: Used for the project emission and baseline emissions calculation. Data / Parameter: CODy,ww,untreated Data unit: tonnes/m 3 Description: Chemical oxygen demand of the wastewater entering the anaerobic treatment reactor/system with methane capture Source of data to be On-site sampling/off-site analysis used: Value of data Description of Sampling shall be done on-site and analysis is carried out the off -site lab measurement methods adhering to internationally accepted standards and archived electronically. and procedures to be Monthly average values are used for the estimation of emissions. applied: QA/QC procedures to The data are cross-checked with samples analyzed by a external accredited be applied: laboratories once in 3 months. Any comment: N/A Data / Parameter: CODy,ww,treated Data unit: tonnes/m 3 Description: Chemical oxygen demand of the treated wastewater leaving the new anaerobic digester system Source of data to be On-site sampling/off-site analysis used: Value of data Description of Sampling shall be done on-site and analysis is carried out the off -site lab measurement methods adhering to internationally accepted standards and archived electronically. and procedures to be Monthly average values are used for the estimation of emissions. applied: QA/QC procedures to be applied: The data are cross-checked with samples analyzed by a external accredited laboratories once in 3 months. 28

29 Any comment: N/A Data / Parameter: Auxiliary electricity consumed by the biogas plant Data unit: MWh/yr Description: Electricity consumed by the auxiliary equipment Source of data to be Electricity meter is used. used: Value of data Description of Electricity is be continuously metered through the use of an electricity meter. measurement methods and procedures to be applied: QA/QC procedures to be applied: Electricity meters undergo maintenance/calibration according to appropriate industry standards. Any comment: The data is used to determine the emissions arising from electricity consumption. Data / Parameter: Electricity Data unit: kwh Description: Amount of electricity generated by the Project Source of data to be Electricity meter is used. used: Value of data 600 Description of Electricity is be continuously metered through the use of an electricity meter. measurement methods and procedures to be applied: QA/QC procedures to The data is used to determine the emissions arising from electricity consumption. be applied: Any comment: N/A Data / Parameter: Biogas generation from the reactor Data unit: Nm 3 /yr Description: Biogas flow rate at digester outlet Source of data to be Electronic measurement used: Value of data 4,668,684 Description of measurement methods Electronically measured using flow meter continuously. The flow meter undergo maintenance / calibration subject to appropriate industry standards. and procedures to be applied: QA/QC procedures to be applied: Continuously monitored. The flow meter undergo maintenance / calibration subject to appropriate industry standards. Any comment: N/A 29

30 Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Biogas flow at power generating unit inlet Nm 3 /yr Biogas flow rate at power generating unit inlet Electronic measurement About 43.6 % of Biogas generated from the reactor On-site metering using electronic flow meters. Flow meters undergo maintenance/calibration according to appropriate industry standards. Used for project emissions and emissions reduction calculation. Biogas flow into flare Nm 3 /yr Volumetric flow rate Electronic measurement About 56.4 % of Biogas generated from the reactor On-site metering using electronic flow meters. Flow meters undergo maintenance/calibration according to appropriate industry standards. Used for project emissions and emissions reduction calculation. Data / Parameter: Biogas methane concentration Data unit: % Description: Biogas CH 4 content Source of data to be Actual measurement used: Value of data 65 Description of measurement methods Electronic on-site sample analysis. At least quarterly Interval to satisfy statistical 95% confidence level. and procedures to be applied: QA/QC procedures to be applied: Sampling is carried out, adhering to internationally recognized procedures. This is being carried out at least quarterly. Any comment: Used for project emissions and emissions reduction calculation. 30