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 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board page 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 This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

2 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 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 < December The Board agreed to revise the CDM project design 2006 document for small-scale activities (CDM-SSC-PDD), taking into account CDM-PDD and CDM-NM. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

3 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board page 3 SECTION A. General description of small-scale project activity A.1 Title of the small-scale project activity: Hot air generation using renewable biomass fuel for spray drying application at H.& R. Johnson (India) Ltd, Kunigal. Version 01 25/02/2007 A.2. Description of the small-scale project activity: H & R Johnson (India) Limited (HRJ) is a largest tile and ceramic manufacturer in India and is the promoter of renewable project activity. The purpose of the project activity is to utilize renewable biomass, displace fossil fuel and generate thermal energy (hot air) with renewable energy technology. The renewable technology implemented is a Fluidized Bed Combustion (FBC) system, which utilizes biomass of two types viz; ground nutshell and rice husk. H & R Johnson (India) Limited, Kunigal (HRJK) has identified and tied up with local biomass suppliers to meet the annual requirement of biomass for hot air generation. The objective of the project activity is to contribute in reducing Green House Gas (GHG) emissions and promote sustainable development in the rural area. The project is an effort to reduce fossil fuel in India. Section A.4.2 provides description of project technology. The GHG abatement project developed is a voluntary initiative by HRJK under Kyoto Protocol (Clean Development Mechanism CDM). Under Kyoto protocol a CDM project activity taken has to demonstrate sustainable development through Social, Economic, Environment and Technology indicators. The project activity contribution towards each indicator above mentioned is explained briefly below in sustainable development indicator section Sustainable Development Indicators 1. Social well being: The project activity displaces fossil fuel with renewable biomass. This biomass is sourced from nearby villages which is around 6,525 metric tonnes (MT) per annum of biomass from local biomass suppliers and farmers. This has initiated additional revenue generation for farmers and suppliers who live in the vicinity of the project activity. Therefore the project activity is found to be socially beneficial and sustainable. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

4 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board page 4 2. Economical well being: The renewable biomass utilized is an agro-waste from ground nuts and rice plantation. This waste is generally not utilized and thrown away as waste. Utilizing this biomass waste in the project activity, HRJ has promoted additional value generation for farmers, thus improving their economic well being. 3. Environmental well being: The activity implemented displaces fossil fuel with renewable biomass fuel for hot air generation. As per UNFCCC, biomass is a carbon neutral fuel and combustion of biomass for hot air generation completely avoids GHG emissions. Therefore activity is an environmentally friendly initiative by HRJK. Some of the environmental benefits perceived are: a) Carbon neutral fuel, therefore zero emissions. b) And conserve fossil fuel. 4. Technological well being: The project technology uses FBC system for generation hot air. Important features of technology implemented are: Indigenous technology. Complete combustion of the biomass fuel with FBC system. Environmentally friendly technology. Therefore project activity is an environment friendly and GHG emission reduction measure which will help Host Country India to fulfill its goals of promoting sustainable development. A.3. Project participants: Name of Party involved ((host) indicates a host Party) India (Host) Private and/or public entity(ies) project participants (as applicable) H&R Johnson (India) Ltd, Kunigal (Private entity) Kindly indicate if the Party involved wishes to be considered as project participant (Yes/No) No A.4. Technical description of the small-scale project activity: This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

5 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board page 5 India A.4.1. Location of the small-scale project activity: India Karnataka A A Host Party(ies): Region/State/Province etc.: A Kunigal (District: Tumkur) City/Town/Community etc: A Details of physical location, including information allowing the unique identification of this small-scale project activity : The plant is located about 30 km from Bangalore state capital of Karnataka. Nearest domestic and international airport is at Bangalore which is 68 km from the project activity. The distance from Tumkur (district town) is 40 km. The location is well connected with road (NH48) and railway. Location map of the project activity is enclosed below. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

6 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board page 6 A.4.2. Type and category(ies) and technology/measure of the small-scale project activity: As per Indicative simplified baseline and monitoring methodologies for selected small-scale CDM project activity categories, the project activity is considered under Main Category: Type I - Renewable Energy Projects Sub Category: C Thermal energy for the user The project activity meets all the applicability criteria of small-scale CDM project activity category under Type-I: Renewable Energy Projects (C. Thermal energy for the user) / version 09, 23 December 2006 of the indicative simplified baseline and monitoring methodologies for selected small-scale CDM project activity categories (Category I.C. comprises renewable energy technologies that supply individual households or users with thermal energy that displaces fossil fuels. Examples include solar thermal water heaters and dryers, solar cookers, energy derived from renewable biomass for water heating, space heating, or drying, and other This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

7 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board page 7 technologies that provide thermal energy that displaces fossil fuel. Biomass-based co-generating systems that produce heat and electricity for use on-site are included in this category. ). The project technology implemented is provided by M/s Radhe Renewable Energy Associates. The FBC system implemented for hot air generation is 2.9 MW thermal in thermal energy generation capacity. The technology can use different type of renewable biomass other than ground nut shell and rice husk. The system comprises of biomass preparation (fuel crusher/thresher, bucket elevator), a combustion unit (fuel hopper, Combustion fans, fuel feeder, combustion chamber) and Air pollution devices (settling chamber, cyclone, rotary valves, gas duct line, control panel etc). Biomass is shred and then fed to the combustion zone with additional air to maintain fluidization of biomass and complete combustion. Hot air generated is passed and cleaned through air pollution control devices to spray dryer. This avoids interference of particulate matter in spray dryer section. Ash generated in the FBC system is completely utilized as a raw material in tile manufacturing. This reduces potential problems associated with ash management. Therefore the technology implemented is sound and proves to be environmentally safe. Process flow diagram of the technology implemented is presented in Fig.A.4.2. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

8 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board page 8 Fig.A.4.2: Process Flow Diagram of Hot Air Generation (FBC) system Press Shop Raw Material Spray Dryer Wet Scrubber Slip House Hot air ID Fan C Cyclones C To ambient Settler FBC (HAG) FD Fan Hopper Hopper Fuel Yard This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

9 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board page 9 A.4.3 Estimated amount of emission reductions over the chosen crediting period: The estimated emissions reduction due to avoidance of fossil fuel with renewable biomass for a 10 year credit period are 96,698 tco 2 e. Years Annual estimation of emission reductions in (tonnes of CO 2 e) , , , , , , , , , ,670 Total Estimated Reductions 96,700 (tco 2 e) Total no of crediting period 10 years Annual average over the crediting period of 9,670 estimated reduction (tco 2 e) A.4.4. Public funding of the small-scale project activity: No public funding is available in this project activity from Annex 1, countries of UNFCCC. A.4.5. Confirmation that the small-scale project activity is not a debundled component of a large scale project activity: According to appendix C of simplified modalities and procedures for small-scale CDM project activities, de-bundling is defined as the fragmentation of a large project activity into smaller parts. A small-scale project activity that is part of a large project activity is not eligible to use the simplified modalities and procedures for small-scale CDM project activities. According to paragraph 2 of appendix C 1 1 Appendix C to the simplified M&P for the small-scale CDM project activities, This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

10 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board page 10 A proposed small-scale project activity shall be deemed to be a de-bundled component of a large project activity if there is a registered small-scale CDM project activity or an application to register another small-scale CDM project activity: With the same project participants; In the same project category and technology/measure; Registered within the previous 2 years; and Whose project boundary is within 1 km of the project boundary of the proposed small- scale activity at the closest point According to above-mentioned points of de-bundling, HRJK has not carried out any CDM project activity before the implementation of FBC small scale project activity. Besides this there are no CDM projects by HRJ that have been registered in last two years. Also there are no similar projects in the vicinity or within 1 km radius of the project boundary. In this way the project activity is not a part of any of the above points mentioned in Appendix C, therefore can be considered as a small scale CDM project activity. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

11 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board page 11 SECTION B. Application of a baseline and monitoring methodology B.1. Title and reference of the approved baseline and monitoring methodology applied to the small-scale project activity: Baseline Methodology: I.C Thermal energy for the user in Appendix B of the Simplified Modalities and Procedures for Small-Scale CDM project activities. Reference: Appendix B of the Simplified Modalities and Procedures for Small-Scale CDM project activities (AMS.I.C / Version 09, 23 December 2006). B.2 Justification of the choice of the project category: Category I.C. comprises renewable energy technologies that supply individual households or users with thermal energy that displaces fossil fuels qualifies for project activity, a renewable energy technology which provides thermal energy (Hot air) and displaces fossil fuel usage. Apart from the key applicability criteria stated above, the project activity is required to meet the following conditions in order to apply the baseline methodology. Justification to demonstrate that the project activity qualifies as a small-scale project activity and will remain under the limits of small-scale project activity during every year of the crediting period are given below: Criteria 1: Where generation capacity is specified by the manufacturer, it shall be less than 15MW. Justification 1: The project activity of HRJK is thermal energy (hot air) generation using renewable biomass, this qualifies the applicability criteria. Criteria 2: For co-generation systems and/or co-fired systems to qualify under this category, the energy output shall not exceed 45 MW thermal. E.g., for a biomass based co-generating system the capacity for all the boilers affected by the project activity combined shall not exceed 45 MW thermal. In the case of the cofired system the installed capacity (specified for fossil fuel use) for each boiler affected by the project activity combined shall not exceed 45 MW thermal. Justification 2: The energy output from the project activity does not exceed 45MW thermal. As stated above, the project activity under consideration meets applicability conditions of the Category I.C. This justifies the appropriateness of the choice of the methodology in view of the project activity and its certainty in leading to a transparent and conservative estimate of the emission reductions directly attributed to the project activity. Therefore the baseline and emission reductions calculations from the project would be based on paragraph 6 of I.C. of Appendix B. The monitoring methodology would be based on the guidance provided in the paragraph 11 (a) of I.C. of Appendix B. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

12 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board page 12 B.3. Description of the project boundary: As per methodology AMS I.C, a boundary is defined as a physical, geographical site of the renewable energy generation delineates the project boundary. The boundary encompasses the hot air generation system (FBC) and the biomass storage only. Biomass stored within the project boundary is a well managed activity and no emissions are envisaged because of the storage. Thus, boundary covers fuel storage and FBC. The project participant does not need to account potential CH 4 emissions from the storage of biomass because they are considered to be zero as emission are considered only when biomass is stored longer than one year. However we have transport leakages which are outside boundary to be conservative. The project boundary is illustrated in figure B.3. Figure B.3: Boundary diagram of the project activity This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

13 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board page 13 Groundnut shells Rice Husk Agro-residue Biomass Depot Spray Dryer Biomass Storage C Cyclones C Settler FBC (HAG) Biomass Ash Collection and utilization in process FD Fan HRJ project boundary Hopper Hopper Fuel Yard This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

14 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board page 14 B.4. Description of baseline and its development: As per small scale methodology AMS.I.C applied as per paragraph 6 baseline for renewable energy technologies that displace technologies using fossil fuels, the simplified baseline is the fuel consumption of the technologies that would have been used in the absence of the project activity times an emission coefficient for the fossil fuel displaced. IPCC default values for emission coefficients may be used HRJK has identified plausible project options for baseline scenario, which include all possible courses of actions that could be adopted in order to generate hot air. Further an assessment was conducted for each alternative to project activity with respect to the risks/barriers associated to implementation and their hot air generation costs, in order to arrive at the baseline scenario i.e. the most likely future scenario in absence of the project activity. The performance of the project activity and its associated emission reductions were evaluated with respect to the baseline scenario. HRJK has identified the following plausible alternatives to meet hot air requirement. These alternatives are illustrated below: Alternative 1- Furnace Oil based hot air generation In absence of CDM project activity, HRJK could have generated hot air with Furnace Oil as fuel to meet its requirement. This alternative is in compliance with all applicable legal and regulatory requirements and may be a part of the baseline. Therefore the Alternative 1 is considered further for arriving at the baseline scenario. Alternative 2- Coal based hot air generation In absence of CDM project activity, HRJK could have generated hot air with coal as fuel to meet its requirement. This alternative is in compliance with all applicable legal and regulatory requirements and may be a part of the baseline. Therefore the Alternative 2 is considered further for arriving at the baseline scenario. Alternative 3- Natural gas based hot air generation In absence of CDM project activity, HRJK could have generated hot air with Natural gas as fuel, to meet its requirement. This alternative is in compliance with all applicable legal and regulatory requirements. However this alternative would not be a credible and realistic alternative available with HRJK in absence of project activity due to non-availability of natural gas as fuel for hot air generation to the plant. Therefore the Alternative 3 may be excluded from further consideration. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

15 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board page 15 Alternative 4- Biomass residue based hot air generation In absence of CDM project activity, hot air could have generated process with biomass residues as fuel, to meet its requirement. This alternative is in compliance with all applicable legal and regulatory requirements. Therefore the Alternative 4 is considered further for arriving at the baseline scenario. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

16 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM Executive Board page 16 Table B-1: Assessment of all the real and credible alternatives with HRJK in absence of the project activity Parameters Alternative 1. Furnace Oil Alternative 2. Coal Alternative 3. Biomass Residue Levelized Hot air INR 432/MT INR 377/MT INR 390/MT Generation Cost Other Considerations Non Non Unorganized Sector and availability: Renewable energy (biomass) in India is an un-organized sector with no proper mechanisms to make sure its sustained availability and price. Since the availability is governed by external factors like climatic conditions and rainfall there are uncertainties related to annual availability of biomass residues. Further the price mechanism is not structured and fluctuates between wide ranges. The pricing of biomass depends mainly on annual rainfall, farm produce and the demand scenario in that area. The price trend assessment reveals that there is an upward trend in the pricing. Under This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

17 PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM Executive Board page 17 Analysis on the basis of economic and regulatory parameters Conclusion these circumstances HRJK has taken a challenge to invest in the project activity and use biomass residues to meet its hot air requirement. Hot air generation cost is very High Hot air generation cost is low 1. Hot air generation cost is medium 2. There are risks associated to availability of biomass and fluctuation in the pricing of biomass residues. Hence without the CDM revenue, this alternative was not be a feasible option for HRJK to adopt. This alternative option is Not a Baseline scenario the not the Baseline Scenario. This This alternative option is the Baseline alternative is additional since the Scenario anthropogenic emissions of greenhouse gases by sources are reduced below those that would have occurred in the absence of the registered CDM project activity. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

18 Estimation of emission reductions resulting from the project activity As per the methodology, the emission reductions resulting from the project activity is calculated as a difference between the baseline emissions and the project emissions. The methodology does not require the project proponent to consider any emission due to leakage. The baseline emissions and the project emissions are quantified as per the guidelines given in the methodology: Baseline Emissions The baseline emissions are calculated based on the most appropriate Baseline scenario which would have been coal, therefore in absence of project activity the hot air would be generated by coal. Total coal that would have been combusted in the baseline scenario would amount to 6,199 MT per annum. The baseline emissions have been calculated based on amount of fossil fuel (coal) that would have been used in absence of the project activity. IPCC default values for emission co-efficient have been used to calculate Baseline emissions. All baseline calculations are as per AMS I.C/version 09. Please refer to Section B.6.1 for baseline estimation calculation. Project Emissions With the implementation of project activity same amount of hot air would be generated using biomass residues. As per the methodology, project emissions are zero as the project utilizes biomass residues renewable in nature. Table B.4.b - Tabular representation of key information and data used to establish the baseline scenario and project activity: No Key information and data used Source of information/ data Baseline 1 Quantity of fossil fuel Plant 2 NCV of fossil fuel Plant 3 Emission factor of fossil fuel IPCC guidelines 4 Oxidation factor of biomass IPCC guidelines Project Activity 1 Quantity of biomass Plant 2 NCV of biomass Plant 18

19 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: In accordance with paragraph 7 of the simplified modalities and procedures for small-scale CDM project activities, a simplified baseline and monitoring methodology listed in Appendix B may be used for a small-scale CDM project activity if project participants are able to demonstrate to a designated operational entity that the project activity would otherwise not be implemented due to the existence of one or more barrier(s) listed in Attachment A of Appendix. B. These barriers are: Investment barrier Technological barrier Barrier due to prevailing practice Other barriers The main driving force to this Climate change initiative is:- The reduction in the fossil fuel quantities on account of generation of power from renewable resource. However, the project proponent was aware of the various barriers associated to project implementation. But it was realized that the availability of carbon financing against a sale consideration of carbon credits generated due to project activity would help to overcome these barriers. Some of the key barriers are discussed below: Technical barrier: a) Uncertainties in biomass: Though the biomass used for hot air generation, the calorific value is less than that of fossil fuel. Because of this quantum of biomass required equivalent to the fossil quantity is high. It becomes very difficult to arrange biomass in such great quantum throughout the year on continuous basis because of price escalation, short supply, and space requirement. b) Clinker Formation: Biomass has low density. As a result of this the ash generated during biomass burnings has low density due to which it has a tendency to adhere in the combustion chamber, thereby creating clinker. This has led to several shut down which has caused production losses. This also invite for increase in operation and maintenance. c) Air pollution equipment blockage: The biomass ash being low density gets clogged in the air pollution control devises which result additional downtime, production losses and reduces efficiency in operation. d) Blocking of Primary Air Lines: During rainy season the biomass gets wet, it blocks the Primary Air lines at the time of feeding and thereby the plant efficiency and profitability is badly affected 19

20 Financial Barriers: Levelized cost comparison analysis We have considered levelized power generation cost basis to prove the financial barrier with hot air generation using FO, Coal and renewable biomass. A levelized cost analysis includes variable cost component and fixed cost components. Source Unit Cost (INR/MT) Hot Air generation using fossil fuel (FO) 432 Baseline Scenario Hot Air generation using Coal dust 377 Project Scenario Hot Air generation using Renewable biomass 390 The levelized cost analysis of the above alternatives, indicate that the hot air generation cost biomass is higher than baseline scenario. Even in this case both project activities have opted biomass based hot air generation at higher operating unit cost. Other Barriers: In addition to all the barriers mentioned above, project proponent would also be facing the following barriers once the project activity is implemented Biomass which is used is groundnut shells and rice husk. Both types have low specific gravity which requires proper handling and storage procedures at the project site. The specific gravity of biomass being low, it requires a larger storage area. This has increased the site development cost by a significant amount. Ash formed by combustion of biomass was to tune of 10% of biomass fuel used. This amounts to about 3 MT/day which was a point of concern. This barrier faced was overcome by complete utilization of ash generated in the ceramic body formulation. The formulation had to be thus adjusted to accommodate the ash without altering the product properties, which was a challenge in itself. Regulatory Barrier: The project activity is not mandated by the law either from the Centre or the State. Although the MNRE and the state government are promoting such renewable energy endeavours, there is no legal binding on either the state or the promoter to come up with such biomass based thermal energy generation plant. 20

21 It can be established from the above barrier analysis that the project activity faced many barriers in its implementation and successful operation. Some of these barriers have the potential to even disrupt the operation of the biomass hot air generation activity thereby damaging the commercial viability of the project activity. 21

22 CDM Executive Board B.6. Emission reductions: B.6.1. Explanation of methodological choices: The procedure followed for estimating the emissions reductions from this project activity during the crediting period are as per the following steps which corresponds with AMS I.C / version 09, 23 December Steps Description Equation Used Methodological Choices 1. Procedure followed for calculation baseline emissions The baseline emissions are calculated as per simplified baseline approach which was fossil fuel that would have been consumed in absence of the project activity. The equation is represented as The baseline emissions will be calculated on the basis para 6. of AMS I.C which states the fuel consumption of the (BE,y) NVC biomass 44 technology that would have been used in Baseline Emissions ( BE) = Qbiomass x x EFff x xofff absence of the project activity times an NCV ff 12 emission factor of fossil fuel displaced. Baseline Emissions = 9,773 tco 2 e IPCC emission factor is used in 2. Procedure followed for estimating emissions from project activity (PE,y) 3. Procedure followed for estimating leakage (L,y) 4. Procedure followed for calculating Emission Reductions (ER,y) As the project activity involves usage of renewable biomass for generation of hot air. As per UNFCCC if a project activity uses renewable biomass is considered carbon neutral and emits no GHG emissions. Project Emissions = 0 tco 2 e The formula used to calculate leakage emissions is given below: Q D N D C C E L, = bio p y n v f f y Ct M Leakages = 104 tco 2 e The equation used to calculate emission reductions is ER, = BE, PE, L, y y Emission Reductions = 9,670 tco 2 e y y calculation. Project Emission are Zero The emission factor for transport fuel is taken from IPPC published data. The distance and efficiency figures of the vehicle are taken from transport agency. - 22

23 B.6.2. Data and parameters that are available at validation: NCV fossilfuel Data / Parameter: Data unit: Kcal/kg Description: Net calorific Value of fossil fuel Source of data used: Plant Value applied: 4000 Justification of the choice of data or NCV for biomass fuel is estimated (E) as per description of measurement methods and measurement method. procedures actually applied : Procedure: Laboratory analysis of NCV for fossil fuel will be carried out once in three months Any comment: Data will be kept for crediting period + 2 years. NCV biomass Data / Parameter: Data unit: Kcal/kg Description: Net calorific Value of biomass fuel Source of data used: Plant Value applied: 3,800 Justification of the choice of data or NCV for biomass fuel is estimated (E) as per description of measurement methods and measurement method. procedures actually applied : Procedure: Laboratory analysis of NCV for biomass fuel will be carried out once in three months Any comment: Data will be kept for crediting period + 2 years. Data / Parameter: EF,coal Data unit: tc/tj Description: IPCC Emission Factor of Coal Source of data used: IPCC Value applied: 26.2 Justification of the choice of data or description of measurement methods and procedures actually applied : The value applied is taken from Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories: Workbook. Any comment: Data will be kept for crediting period + 2 years. Data / Parameter: OX,coal Data unit: - Description: IPCC Oxidation factor of Coal Source of data used: Revised 1996 IPCC for National Greenhouse Gas Inventories: Workbook. Value applied: 0.98 Justification of the choice of data or The value applied is taken from Revised 1996 IPCC 23

24 description of measurement methods and procedures actually applied : Any comment: Guidelines for National Greenhouse Gas Inventories: Workbook. Data will be kept for crediting period + 2 years. B.6.3 Ex-ante calculation of emission reductions: BASELINE CALCULATION FOR HR JOHNSON, KUNIGAL - BIOMASS BASED HOT AIR GENERATION PROJECT S.No Description Units 1 Quantity of biomass utilized per year MT Net calorific value of biomass kcal/kg Net calorific value of coal kcal/kg Quantity of coal that would have been used in absence of the project activity MT Total energy from coal TJ Emission factor of coal tc/tj 26.2 tco 2 /TJ Oxidation Factor COEF of coal tco 2 /t of coal Emissions from coal avoided tco 2 9,773 Leakage S.No Leakage Calculation Units 1 Average daily biomass input T 19 2 Average truck load T 12 3 No of daily truck loads required Nos 2 4 No of daily truck loads required (both way) Nos 4 5 Maximum Distance Covered kms Distance covered kms Mileage kms / L Total diesel consumption Lts No of days of operation days 305 \10 Diesel consumption / year L Density of diesel kg/l Actual Diesel consumption / year L Calorific value of diesel kcal / kg

25 14 Total energy consumption from burning of diesel (Kcal/year) kcal/yr 3.35.E Total energy consumption from burning of diesel (Joules/year) J/yr 1.40E Total energy consumption from burning of diesel tj/year CO 2 emissions from diesel t CO 2 / TJ Annual CO 2 emission from transport (ton) t CO 2 e 104 B.6.4 Year Summary of the ex-ante estimation of emission reductions: Estimated Project Activity Emissions (tonnes of CO 2 e) Estimated Baseline Emissions (tonnes of CO 2 e) Estimated leakage(tonnes of CO 2 e) Estimated Emission Reduction (tonnes of CO 2 e) , , , , , , , , , , , , , , , , , , , ,670 Total 0 97, ,700 B.7 Application of a monitoring methodology and description of the monitoring plan: The following two sections (B.7.1 & B.7.2) provides a detailed description of the application of the monitoring methodology and description of the monitoring plan, including identification of the data to be monitored and the procedures that will be applied during monitoring. Please note that data monitored and required for verification and issuance are to be kept for two years after the end of crediting period or the last issuance of CERs for this project activity, which ever occurs later. 25

26 B.7.1 Data and parameters monitored: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Q biomass MT Annual Quantity of Biomass consumed MIS system at HRJK 6,525 Monitoring: Weigh bridge at the plant and MIS will account the data. Data type: Measured Archiving procedure: Paper and Electronic Recording Frequency: Daily Responsibility: Manager (Operation) would be responsible for monitoring and checks for regular calibration of the weigh bridge. Calibration Frequency: Once in month. Yes, Quality Management System will be used and the same procedures would be available at the project site Data archived: Crediting period + 2 yrs NCV biomass Kcal/kg Net calorific Value of biomass fuel Plant 3,800 Monitoring: Laboratory analysis as per IS standard. Data type: Estimated Archiving procedure: Paper and Electronic Recording Frequency: Once in three months Responsibility: Manager (Operation) would be responsible for facilitating laboratory analysis through a government approved laboratory. Maintaining record regularly. Calibration Frequency: Not applicable. Yes, Quality Management System will be used and the same procedures would be available at the project site Data archived: Crediting period + 2 yrs 26

27 Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: NCV ff Kcal/kg Net calorific Value of fossil fuel (Coal) Plant 4000 Monitoring: Laboratory analysis as per IS standard. Data type: Estimated Archiving procedure: Paper and Electronic Recording Frequency: Once in three months Responsibility: Manager (Operations) would be responsible for facilitating laboratory analysis through a government approved laboratory. Maintaining record regularly. Calibration Frequency: Not applicable. Yes, Quality Management System will be used and the same procedures would be available at the project site Data archived: Crediting period + 2 yrs Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: EF ff tc/tj IPCC Emission Factor of fossil fuel (Coal) IPCC 26.2 Monitoring: IPCC emission guidelines Data type: IPCC emission guidelines Archiving procedure: Paper and Electronic Recording Frequency: Once in six months Responsibility: Manager (Operation) would be responsible for checking any change in IPCC emission guidelines and Maintaining record. Calibration Frequency: Not applicable. Yes, Quality Management System will be used and the same procedures would be available at the project site Data archived: Crediting period + 2 yrs 27

28 Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: C t MT Capacity of truck/ vehicle carrying biomass Plant 12 Monitoring: Weighing bridge at the plant and DCS will measure the data. Data type: Estimated Archiving procedure: Paper and Electronic Recording Frequency: Annually Responsibility: Manager (Operation) would be responsible to measure actual tonnage of the truck. Calibration Frequency: Once in every six months. Yes, Quality Management System will be used and the same procedures would be available at the project site Data archived: Crediting period + 2 yrs D p Kms Distance of procurement including return journey of vehicle Transport Agency or Supplier of biomass 300 Monitoring: estimated value and will be reported. Data type: measured Archiving procedure: Paper and Electronic Recording Frequency: Annually Responsibility: Manager (Operation) would be responsible for regular recording of this value. Yes, Quality Management System will be used and the same procedures would be available at the project site Data archived: Crediting period + 2 yrs Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 M Km/litre Mileage of vehicle Transport Agency

29 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data type: estimated Archiving procedure: Paper and Electronic Recording Frequency: Annually Responsibility: Manager (Operation) would be responsible for regular recording of this value. Yes, Quality Management System will be used and the same procedures would be available at the project site Data archived: Crediting period + 2 yrs D n Kg/Litre Density of fuel Plant 0.89 Data type: Estimated Archiving procedure: Paper and Electronic Recording Frequency: Annually Responsibility: Manager (FBC) would be responsible for regular recording of this value. Yes, Quality Management System will be used and the same procedures would be available at the project site Data archived: Crediting period + 2 yrs C f Kcal/ kg Calorific value of transport fuel Plant or Transporters 9600 Data type: estimated Archiving procedure: Paper and Electronic Recording Frequency: Annually Responsibility: Manager (Operation) would be responsible for recording of this value. Yes, Quality Management System will be used and the same procedures would be available at the project site Data archived: Crediting period + 2 yrs B.7.2 Description of the monitoring plan: Vice president (Operation) 29 Deputy General. Manager (Operation)

30 Vice President (Operation) 1. Ensuring implementation of monitoring procedures lay down. 2. Performs reviews of internal audits 3. Performance conformance reviews. Deputy General.Manager (Operation) 1. Organizing and conducting training program on CDM and related activities for staff. 2. Implementing all monitoring procedures 3. Maintenance and calibration of equipment relating to biomass quantity and heat requirement. 4. Reviewing records and monitored data. 5. Internal audits 6. Overall responsibility for closing NOC and implementing corrective actions before verification. Manager (HAG): 1. Supervision of HAG and provide training to HAG operator 2. Record maintenance and monitoring measurements and reporting. 3. Assisting Dy.G.M. (Operation) in checking and review of records and during internal audits. HAG Operator He will be responsible for monitoring and measurement of all activities. B.8 Date of completion of the application of the baseline and monitoring methodology and the name of the responsible person(s)/entity(ies) 30

31 Date of completing the final draft of this baseline and monitoring methodology: 25/02/2007 Name of person/entity determining the baseline: Mr.D.R.Kulkarni H & R Johnson (India) Ltd. Plot No. 1 12, KIADB Industrial Area, Near Anchepalya Village Kunigal, Dist. Tumkur, Karnataka Tel: /

32 SECTION C. Duration of the project activity / crediting period C.1 Duration of the project activity: 10 years and 0 months C.1.1. Starting date of the project activity: 14/04/2005 C.1.2. Expected operational lifetime of the project activity: 30 years C.2 Choice of the crediting period and related information: C.2.1. Renewable crediting period Not applicable Not applicable Not applicable C C Starting date of the first crediting period: Length of the first crediting period: C.2.2. Fixed crediting period: 10 years and 0 months 30/12/2007 C Starting date: C years and 0 months Length: 32

33 SECTION D. Environmental impacts D.1. If required by the host Party, documentation on the analysis of the environmental impacts of the project activity: The Ministry of Environment and Forests (MoEF), Government of India, under the Environment Impact Assessment Notification vide S.O. 60(E) dated 27/01/94 has listed a set of industrial activities in Schedule I of the notification which for setting up new projects or modernization/ expansion will require environmental clearance and will have to conduct an Environment Impact Assessment (EIA) study. The project activity implemented at H&R Johnson (India) Limited, Kunigal - Generation of hot air in spray dryer using renewable biomass fuel at H&R Johnson (India) Limited, Kunigal, was commissioned and does not require any EIA to be conducted as the activity is not included in Schedule I. The project activity consists of using renewable biomass residue fuel and thus avoids usage of fossil fuel (FO) to generate hot air HAG for spray drying process in tile manufacturing at HRJ, Kunigal.. HRJ has obtained necessary clearance from: No Objection certificate Karnataka state pollution control board. Consent to operate Karnataka state pollution control board Certificate from of Factory Safety Inspectorate. Article 12 of the Kyoto Protocol requires that a CDM project activity contributes sustainable development of the host country. Assessing the project activity, positive impacts on the local environment and on society are evident. The project activity: 1. Reduces CO 2 emissions that would have been released into atmosphere by combustion of fossil fuel (Coal) 2. Reduces the use of finite fossil fuels and contributes to sustainable development Possible environmental impacts from combustion of biomass residues in HAG will result in suspended particulate matter (SPM) are controlled by air pollution control devices like settlers (for particulate mater 33

34 > 50 µm) and cyclone (for particulate mater < 10 µm) in order to meet air quality requirement in the rural area setting. D.2. If environmental impacts are considered significant by the project participants or the host Party, please provide conclusions and all references to support documentation of an environmental impact assessment undertaken in accordance with the procedures as required by the host Party: There are no significant impacts from the project activity. 34

35 SECTION E. Stakeholders comments E.1. Brief description how comments by local stakeholders have been invited and compiled: H&R Johnson (India) Limited, at Kunigal has implemented renewable energy source biomass based hot air generation plant. The project will use biomass available of nearby region of Tumkur district as the fuel. The GHG emissions of the combustion process, mainly CO 2 are sequestered by the plantation, representing a cyclic process. So the project leads to zero net GHG on-site emissions. The stakeholders identified for the project are as under. HRJ Employees Local governance representative Local community - Farmer Contractor Manpower provider Non-Governmental Organizations (NGOs) Summary of comments from different stakeholders is given in section E.2. 2 E.2. Summary of the comments received: Above identified stakeholders were communicated for feedback and comments on project. A meeting was held which was attended by different stakeholders who had direct or indirect relation with this project. A brief discussion was held between HRJ and stakeholders to make understand concepts and benefits of Clean Development Mechanism. A extract/summary of the interviews is available with the validating agency. Summary of the comments are given in tabulated form below. S.No Respresentative/Stakeholder Comments 1. Mr.Prakash Madiwalar HRJ Employee Operator Slip House and Spray dryer department Mr.Madiwalar said he understands the objective of this mechanism to reduce GHG emissions and thus help in reducing damages to the environment. As the project implemented utilizes biomass for thermal energy generation, this reduces GHG emissions. Also 2 Enclosed in audio-video presentation on summary of the identified stakeholders at H&R Johnson, kunigal. 35

36 the project activity facilitates a healthy environment in the company. Previously we used to have frequent health concerns, however due to complete avoidance such health problems are not found. The ash we generate would have been otherwise disposed which would require solid waste management compliance, however our production process utilizes the ash and thus we do not required to dispose it outside and thus 2. Mr.G.N Chandrashekhar HRJ Employee EMS Core group member 3. Mr Chandrappa, Member of the Panchayat (Local Government), Anchepalya Village. it is proving beneficial to the environment. Mr.Chandrashekar is happy to know about the renewable energy project and he takes special role in integrating parameters related to CDM in EMS system. Further to this he added that CDM will help HRJ to reduce the GHG emissions. The project will help in creating a good environment for the local as well as global stakeholders. It gives a green image to the company. The company gets better publicity for environment friendly projects. Disposal of fly ash was a big concern for us earlier which has been solved using R&D. Overall the project is a good initiative and will help HRJ is sustainable development. A member of 15,000 communities who are inhabitants in and around Ancheplaya village. Mr.Chandrappa, who is a farmer too says, earlier all raw material used to be purchased from outside. Several trucks used to be lined up for discharging. Now, all such practices have stopped. Most of the material now comes from surrounding areas of village. It helps benefit the local people, their standard of living and it benefits the company also. Earlier, when the company used oil as a fuel, we used 36

37 4. Mr.Abdul Majid Farmer to witness a lot of carbon soot in the atmosphere and used to deposit in the nearby buildings and fields. This was not good for environment and health of people. However the project has proved to be beneficial reducing pollution to zero. Lastly when the company started using agricultural residues, all the farmers, who supply biomass, have been getting an additional income. Overall the locals are happy and indebted to the company. They feel there will be more growth and employment. After H.&R Johnson (India) Limited, came here, a lot of people have been benefited. Several people are working here and are happy. They also work in the farm. Even when the rains are not good, they still get a steady income from this employment. So they are able to maintain their families. We are not entirely dependant on rains now. People have been employed here. That is the biggest benefit. Many factories followed your company here. So employment in all these factories has benefited us the biggest Now it is very good. Business has grown very well. There is more work, now with Employment situation is better. Because of the project activity there has been good development. The company should continue like this. We are happy. 37