VERIFICATION REPORT SWISS CARBON VALUE LTD. National Bachu Biomass Power Generation Project GS Report No

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1 VERIFICATION REPORT SWISS CARBON VALUE LTD. National Bachu Biomass Power Generation Project GS st Monitoring period: 28/01/2011 to 27/08/2013 Report No China Environmental United Certification Center Co., Ltd (CEC) No.1 Yuhuinanlu, Chaoyang District, Beijing, China,

2 Date of Registration Report No. 23/02/ Approved by Organizational Unit SONG Tiedong China Environmental United Certification Center Co., Ltd. Client Swiss Carbon Value Ltd. China Environmental United Certification Center Co., Ltd. (CEC) has made the first verification of the National Bachu Biomass Power Generation Project of Swiss Carbon Value Ltd. on the basis of all applicable CDM and GS requirements. The GS requirements include all necessary criteria and requirements of the Gold Standard Version 2.1 listed on the GS website. The GS reference Number of the project is 1228.The project reduces GHG emissions due to the generation of electricity by using of biomass residuals. This verification covers the period from 28/04/2011 to 27/08/2013. The verification scope includes three phases: 1) desk review of the project design and the baseline and monitoring plan; 2) on-site visit and follow-up interviews with project stakeholders; 3) resolution of outstanding issues and the issuance of the final verification report and opinion. The overall verification, from contract review to verification report and opinion, was conducted using CEC internal procedures. The first output of the verification process is a list of CARs/CLs/FARs. All issued CARs and CLs were successfully closed. The conclusions are presented in Appendix A. CEC confirms that the project is implemented in accordance with the registered PDD. No post-registration changes have been identified. The registered monitoring plan complies with the monitoring methodology AMS-I.D (version 17), The actual monitoring complies with the monitoring plan. Installed equipment being essential for generating emission reduction runs reliably and is calibrated appropriately. The monitoring system is in place and the emission reductions are calculated without material misstatements. The monitoring report and other supporting documents provided are complete in accordance with latest applicable version of the completeness checklist for requests for issuance of GS VERs and verifiable and in accordance with applicable CDM and GS requirements. Our opinion relates to the project s GHG emissions and resulting GHG emissions reductions reported and related to the valid and registered project baseline and monitoring, and its associated documents. Based on the information we have seen and evaluated, we confirm the following statement: Baseline emissions: 121,385 tco2e Project emissions: 1,222 tco2e Leakage: 0 tco2e Emission reductions: 120,163 tco2e Report No.: Date of this Revision: Rev. No. Number of Pages No distribution without /04/ permission from the Report Title: Client or responsible National Bachu Biomass Power Generation Project organizational unit Work Carried out by: Limited distribution DU Wei, ZHANG Huan, SHEN Qiunong Work Reviewed by: Unrestricted YIN Yun, LIU Yaotian distribution China Environmental United Certification Center Co., Ltd. 1

3 Abbreviations CAR CDM CEC CER CL CO 2 CO 2e DOE ESI ETN FAR GHG GS MP MR NWPG PDD PP PPA QA/QC SD VER VVS UNFCCC Corrective Action Request Clean Development Mechanism China Environmental United Certification Co., Ltd. Certified Emission Reductions Clarification Request Carbon Dioxide Carbon Dioxide equivalent Designated Operational Entity Electricity Sale Invoice Electricity Transaction Note Forward Action Request Green House Gas (es) Gold Standard Monitoring Plan Monitoring Report Northwest Power Grid Project Design Document Project Participant Power Purchase Agreement Quality Assurance/Quality Control Sustainable Development Voluntary Emissions Reduction Validation and Verification Standard United Nations Framework Convention on Climate Change China Environmental United Certification Center Co., Ltd. 2

4 Table of Contents 1 INTRODUCTION Objective Scope GHG Project Description VERIFICATION METHODOLOGY Verification Personnel Review of Documents On-site Assessment and Follow-up Interviews Reporting of Findings Internal Quality Control VERFICATION FINDINGS FARs from Validation / Previous Verification Compliance of Project Implementation with the Registered PDD Compliance of monitoring plan with monitoring methodology including applicable tool(s) Compliance of monitoring activities with the registered monitoring plan Compliance with the calibration frequency requirements for measuring instruments Assessment of data and calculation of GHG emission reductions Assessment of GS Sustainability Overview of results VERIFICATION AND CERTIFICATION STATEMENT REFERENCES Appendix A: Verification Protocol Appendix B: Certificate of Competence China Environmental United Certification Center Co., Ltd. 3

5 1 INTRODUCTION Swiss Carbon Value Ltd. has commissioned CEC to verify the emission reductions of the registered GS VER Project National Bachu Biomass Power Generation Project in the Bachu County, Xinjiang Uygur Autonomous Region, and P. R. China. This report summarizes the findings of the verification of the project, performed on the basis of UNFCCC and GS criteria, as well as criteria given to provide for consistent project operations, monitoring and reporting. The GHG data for the monitoring period covering 28/01/2011 to 27/08/2013 was verified in detailed manner applying the set of requirements, audit practices and principles as required under the Validation and Verification Standard (VVS) of the UNFCCC and GS. 1.1 Objective The objective of the verification is the review and ex post determination by an independent entity of the GHG emission reductions. In carrying out the verification work, the DOE shall ensure that the project activity complies with the requirements of paragraph 62 of the CDM M&P, which includes: Determine whether the project activity has been implemented and operated as per the registered PDD or any approved revised PDD and that all physical features (technology, project equipment, and monitoring and metering equipment) of the project are in place; Determine whether the monitoring report and other supporting documents provided are complete in accordance with the latest applicable version of the completeness checklist for issuance, verifiable, and in accordance with applicable of CDM requirements; Determine whether actual monitoring systems and procedures comply with the monitoring systems and procedures described in the monitoring plan or any revised approved monitoring plan, and the approved methodology including applicable tool(s); Evaluate the data recorded and stored as per the monitoring methodology including applicable tool(s). In addition, the DOE shall ensure that the project activity complies with the requirements of GS, which includes: Consider conducting a few follow-up interviews with local residents and/or NGOs to ensure that they still have positive feedback about the project (focus on the operation of the project) China Environmental United Certification Center Co., Ltd. 4

6 Any changes that have occurred since the Validation and that have had an impact on the sustainable development aspects will need to be considered. Check whether any changes have occurred that may have an impact on The Gold Standard qualification of the project, particularly with reference to any potential changes in the key parameters that could lead to an overall negative impact on sustainable development of the project. Assess if the mitigation plan is being implemented and whether any negative impacts and risks are being effectively mitigated. Check that other negative impacts have not resulted due to the implementation and operation of the project. 1.2 Scope The verification is based on the submitted monitoring documentation, the registered PDD and the monitoring plan, GS project passport, the validation report, previous verification reports (if any), the applied monitoring methodology, the monitoring report to verify that it is as per the standard format, any other information and references relevant to the project activity s emission reductions (e.g. IPCC reports, data on electricity generation in the national grid or laboratory analysis and national regulations) and GS sustainability. In addition to reviewing the monitoring documentation, the verification also determines whether the FARs identified during validation or previous verification(s) are addressed. These documents are reviewed against the requirements of the Kyoto Protocol, the CDM Project Standard and GS related rules and guidance. CEC has performed the verification based on the requirements in the CDM VVS (version.05.0) and GS Verification Guidelines. The principles of independence, ethical conduct, and fair presentation and due professional care were combined with a conservative approach to establish a traceable and transparent verification opinion. The verification considers both quantitative and qualitative information on emission reductions. The verification is not meant to provide any consultancy towards the client. However, stated requests for forward actions and/or corrective actions may provide input for improvement of the project monitoring towards reductions in the GHG emissions. 1.3 GHG Project Description Title of Project Activity National Bachu Biomass Power Generation Project GS Registration Number 1228 Registration date of the project 18/01/2013 activity China Environmental United Certification Center Co., Ltd. 5

7 Monitoring Period Covered in this Report Project Participants Location of the Project Activity 28/01/2011 to 27/08/2013 Swiss Carbon Value Ltd. (Switzerland) National Bio Energy Co., Ltd. (China) Bachu County, Kashi Region, Xinjiang Uygur Autonomous Region, P. R. China. The project is utilize local surplus biomass residues (cotton stalks and wood residues) for generating electricity. The project is located near in Selibuya town, Bachu County, Kashi Region, Xinjiang Uygur Autonomous Region, and P. R. China. And the exact location of the power house is at the east longitude of 77 49'23.33'' and north latitude of 39 17'15.01''. The power generated by the proposed project is transmitted through an 110kV transformer at the site to Bachu 110kV substation, and then connected to Xinjiang Uygur Autonomous Regional Power Grid that is an integral part of NWPG. The project involves the installation of a 48t/h biomass combustion boiler and a 12MW power generator driven by steam turbine. The installed capacity of the proposed project is 12 MW and the annual net power supply is expected to be 79,200 MWh per year. The annual operational hours are expected to be 7,500 h. The project will lead to estimated annual emission reductions of approximately 62,774 tons CO 2 equivalent annually. The generator of the project started operation on 04/12/2008. The implementation of the project is found to be in accordance with the registered PDD. During this monitoring period from 28/01/2011 to 27/08/2013, the total net electricity supplied by the project amounted to 153, MWh, and the total emission reduction during this monitoring period is 120,163 tco2e. 2 VERIFICATION METHODOLOGY The overall verification process, from contract review to verification report and opinion, was conducted using CEC internal procedures. In order to ensure transparency, a verification protocol was customized for the project, according to the version 05.0 of the CDM VVS, issued by the Executive Board at 75 th meeting on 04/10/2013. The protocol shows, in a transparent manner, criteria, requirements, means of verification and the results from verifying the identified criteria. The completed verification protocol is enclosed in Appendix A to this report. The part of GS sustainability is verified according to GS verification requirement. Standard auditing techniques have been adopted to assess the quality of information where no specific means of verification is specified. The verification team performs first a desk review, China Environmental United Certification Center Co., Ltd. 6

8 followed by an on-site assessment, which results in a protocol including all the findings. The next step is to close out the findings through direct communication with the PPs and finally prepare the verification report. This verification report and other supporting documents then undergo an internal quality control by the relevant technical review department of CEC before submission to the GS. 2.1 Verification Personnel According to the designation requirements on the verification team in the CDM accreditation standards of Executive Board and GS, and following requirements from the technical scopes and professional characters in the sectoral scopes, CEC designated a project assessment team. It is required that the assessment team collectively has the required competencies in the technical, methodological and sectoral aspects of specific GS VER project activities. The assessment team consists of the following members, the detailed personal information see Appendix B. Table 1: List of Assessment Team Verification Team Role Qualification Specific scope Participated in the on-site visit DU Wei Team Leader Auditor ZHANG Huan Team Member Auditor trainee SHEN Qiunong Team Member Technical expert Table 2: List of Technical Reviewer Technical Review Role Specific Scope Participated in the on-site visit YIN Yun Technical reviewer LIU Yaotian Technical reviewer Du Wei is a lead Greenhouse Gas (GHG) assessor. He has attended extensive internal and external training courses on EMS, CDM and CDM related knowledge since He has participated in and finished over 20 validation/verification CDM projects in the areas of hydropower and wind power. Most of the projects are in sectoral scope 1 (energy industries), which gives him abundant experience in renewable energy sector. ZHANG Huan is an auditor trainee. She has attended various GS, CDM, ISO14064 Standard, GHG protocol, Energy Performance Contracting (EPC) audit training courses and environmental labeling training courses. Ms. ZHANG has participated in and finished 4 ISO14064 and EPC auditing in the area of green lighting, energy system optimization as well as renewable energy projects. She has attended GS 2.2 workshop in Beijing on 19/10/2012, GS DOE Webinar China Environmental United Certification Center Co., Ltd. 7

9 'Basic Session'" on 24/04/2013, and GS DOE Webinar 'Specialized Session'" on 25/04/2013. Shen Qiunong is a technical expert in technical areas 1.1 and 1.2. He is an experienced professor-level senior engineer, who has worked in a power equipment research institute for 30 years. Mr. Shen is an expert in coal / gas - steam combined cycle technology; gas turbine, steam turbine aerodynamics and supercritical, ultra-supercritical units technology, and he is the author for China electrical engineering canon Supercritical, ultra-supercritical units. He has involved in CDM training courses since Yin Yun is a lead Greenhouse Gas (GHG) assessor. She worked in Metallurgical Industry for 17 years as technician and electric engineer, and later in technical management position for over 10 years. Since 2007, Ms. Yin has been involved in various CEC CDM training courses, and she is also a qualified senior EMS auditor, and has participated in over 30 validation/verification CDM projects in the areas of hydropower, wind power, waste heat recovery and biomass power generation, she has extensive experience in renewable energy sector in sectoral scope 1 (energy industries). Liu Yaotian is a lead Greenhouse Gas (GHG) assessor. She has attended extensive internal and external training courses on EMS, CDM and CDM related knowledge since She has participated in and finished over 20 validation/verification CDM/VCS projects in the areas of hydropower and wind power. Most of the projects are in sectoral scope 1 (energy industries), which gives her abundant experience in renewable energy sector 2.2 Review of Documents The Monitoring Report (MR) version 01 dated 15/09/2013 was submitted by the PP before the verification activities started. The MR was assessed based on all the relevant documents as listed earlier. The aim of the assessment in the desk review was to verify the completeness of the data and the information presented in the MR. The compliance check of the MR with respect to the monitoring plan described in the registered PDD, the applied methodology, including applicable tools, and GS project passport was carried out. Particular attention was paid to the frequency of measurements, the quality of the metering equipment including calibration requirements, and the quality assurance, quality control procedures and the proper measurement for each GS SD indicator. The evaluation of data management and the quality assurance and quality control system in the context of their influence on the generation and reporting of emission reductions was also carried out. A complete list of all documents reviewed is available in Section 5 of this report. 2.3 On-site Assessment and Follow-up Interviews During the period from 09/10/2013 to 12/10/2013, CEC performed a physical site inspection and on-site interviews with project stakeholders to: Confirm the implementation and operation of the registered project activity as per the registered PDD or any approved revised PDD; Review the information flows for generating, aggregating and reporting the monitoring parameters; China Environmental United Certification Center Co., Ltd. 8

10 Determine whether the operational and data collection procedures are implemented in accordance with the monitoring plan in the PDD; Cross-check between the information provided in the MR documentation and data from other sources such as plant logbooks, inventories, purchase records or similar data sources; Check the monitoring equipments including calibration performance and observations of monitoring practices against the requirements of the PDD and the selected methodology and corresponding tool(s); Review the calculations and assumptions made in determining the GHG data and emission reductions; Identify if the quality control and quality assurance procedures are in place to prevent or identify and correct any errors or omissions in the reported monitoring parameters. GS Section: Consider conducting a few follow-up interviews with local residents to ensure that they still have positive feedback about the project (focus on the operation of the project) Any changes that have occurred since the Validation and that have had an impact on the sustainable development aspects will need to be considered. In addition, the SD Auditor shall check whether any changes have occurred that may have an impact on The Gold Standard qualification of the project, particularly with reference to any potential changes in the key parameters that could lead to an overall negative impact on sustainable development of the project. Assess if the mitigation plan is being implemented and whether any negative impacts and risks are being effectively mitigated. Check that other negative impacts have not resulted due to the implementation and operation of the project. Representatives of the PP and stakeholders were interviewed. The main topics of the interviews are summarized in Table 3. Table 3 Interview topics and organization Interview topics Interview Organization and Interviewee China Environmental United Certification Center Co., Ltd. 9

11 Project design and implementation Monitoring Plan Monitoring data and Monitoring Report National Bio Energy Co., Ltd. ZHAO Hui and LI Zheng Swiss Carbon Value Ltd. QU Jingxu and LIN Yi National Bachu Bio Energy Co., Ltd. WU Zhao and WEI Xinhong Baseline determination Project design and implementation Technical equipment, including calibration and operation Monitoring Plan and management procedures Monitoring data Swiss Carbon Value Ltd. QU Jingxu and LIN Yi National Bio Energy Co., Ltd. ZHAO Hui and LI Zheng National Bachu Bio Energy Co., Ltd. WU Zhao and WEI Xinhong Project background in details Stakeholder comments Social and environmental impact of the project - Air quality; - Water quality; - Quality of Employment; - Livelihood of the poor, about purchasing the biomass; - Quantitative employment and income generation; - Access to affordable and clean energy services Stakeholders: National Bachu Bio Energy Co., Ltd. WU Zhao and WEI Xinhong Employee WANG Jiangli, Chibukezi and Jiamili Villager Yiming, Nuermaimaiti and Ayixiamu Environmental Protection Bureau of Bachu County HU Feng China Environmental United Certification Center Co., Ltd. 10

12 2.4 Reporting of Findings According to the requirements of VVS, as an outcome of the verification process, the verification team can raise different types of findings. Findings established during the initial verification could either be seen as a non-fulfillment of criteria ensuring the proper implementation of a project or where a risk to deliver high quality emission reductions is identified. Corrective Action Requests (CARs) are raised where: Non-conformities with the monitoring plan or methodology are found in monitoring and reporting, or if the evidence provided to prove conformity is insufficient; Mistakes have been made in applying assumptions, data or calculations of emission reductions which will impair the estimate of emission reductions; Issues identified in a FAR during validation to be verified during verification have not been resolved by the project participants. Clarification Requests (CLs) are raised, where: Information is insufficient or not clear enough to determine whether the applicable CDM and GS requirements have been met. Forward Action Requests (FARs) are raised, where: The monitoring and reporting require attention and/or adjustment for the next verification period. To guarantee the transparency of the verification process, the issues raised are documented in more detail in the verification protocol in Appendix A. 2.5 Internal Quality Control This final verification report including the initial findings underwent a technical review before being submitted to PP and requesting issuance of GS VERs of the project activity according to CEC internal procedure. The technical reviewers were not part of the verification team, and the technical review was independently of the verification team. The complete QA/QC procedure applied to this verification report was as follows: The initial draft verification report (DVR) after on-site visit was issued by CEC on 22/10/2013. After all CARs and CLs were closed, a draft final verification report (draft FVR) was issued on 25/11/2013. Then draft FVR was sent to technical review performed by two(2) technical reviewers according to CEC internal procedure. After reviewing and confirming by TRers, the draft FVR was then finalized and then sent for completeness check carried out by Quality Assurance Management Division (QAD). After correction and confirmed by QAD, the report China Environmental United Certification Center Co., Ltd. 11

13 was verified by the Director, and finally the report is approved by Chair of Board. After confirmation of the PP, the verification report and certification report and relevant documents are submitted to GS web-platform. China Environmental United Certification Center Co., Ltd. 12

14 3 VERFICATION FINDINGS In the following sections, the findings of the verification are stated. The verification findings for each verification subject are presented as follows: The findings from the desk review of the original project activity documents and the findings from interviews during the follow up visit are summarized. The verification of the proposed project resulted in 6 Corrective Action Requests, 3 Clarification Requests and 2 Forward Action Requests. PP responses to them and all are closed. A more detailed record of these findings can be found in the Verification Protocol in Appendix A The conclusions for verification subject are presented. 3.1 FARs from Validation / Previous Verification The validation report, prepared by CEC, report No , dated 01/04/2013, notes neither open issues nor FARs. 3.2 Compliance of Project Implementation with the Registered PDD Post Registration Changes No post-registration changes have been identified throughout the verification Project Implementation 1) Implementation status Through on-site visit and document review, the verification team is able to confirm that all physical features of the proposed GS VER project activity proposed in the registered PDD are in place and that the project participants has operated the proposed GS VER project activity as per the registered PDD. There are no major changes of key equipments. The boiler, steam turbine and generator in the power plant were installed as described in the registered PDD with the total installed capacity of 12MW. The generator started operation on 04/12/2008 before GS VER registration date of 18/01/ ) Actual operation of the project activity The electricity generated from the project was transmitted through an 110kV transformer at the site to Bachu 110kV substation, and then connected to Xinjiang Uygur Autonomous Regional Power Grid that is an integral part of NWPG. All facilities and equipments are in place and the project participant has operated the project as per registered PDD. China Environmental United Certification Center Co., Ltd. 13

15 The verification team has verified the specifications from the nameplates of the turbine, generator and boiler are consistent with the registered PDD and confirmed that they have been installed in place. The electricity generated has been delivered properly to the grid as per the PPA signed with the grid company. Due to the maintenance, the generator was not able to operate, therefore downtime occurred during the periods, which listed in the table 4 Table 4 Downtime during operation Downtime Period Days 29/04/2011~30/04/ /06/2011~21/06/ /07/2011~15/07/ /08/2011~09/08/ /08/2011~28/08/ /09/2011~24/09/ /10/2011~28/10/ /11/ /01/ /02/ /03/2012~08/03/ /04/2012~14/04/ /05/2012~14/05/ /06/2012~09/06/ /06/2012~30/06/ /07/2012~03/08/ /08/2012~02/09/ /09/2012~29/09/ /01/2013~07/01/ /04/2013~24/04/ /06/2013~19/06/ /07/ /07/ /08/2013~09/08/ /08/2013~18/08/ It was cross-checked by the verification team with the operation log during the on-site visiting. No events or situations that may impact the applicability of the methodology during the monitoring period were identified. CAR01 was raised requesting that the end date of monitoring period is revised to 27/08/2013. PP has updated all of data, which is related to this revision in the revised MR and ER spreadsheet. The verification team confirmed that all of data has been updated due to the China Environmental United Certification Center Co., Ltd. 14

16 revision of monitoring period. Hence, the CAR01 was closed out. CL01 was raised requesting that the operation status of the project during the monitoring period under consideration shall be contained in the monitoring report. Please add the information regarding the actual operation of the project activity during this monitoring period in the monitoring report, especially information on special events, for example overhaul times, downtimes of equipment, exchange of equipment, emergency process etc. and events or situations that occurred during the monitoring period, which may impact the applicability of the methodology and how the issues resulting from these events or situations are being addressed. The verification team reviewed the section 3 of the revised MR, confirmed that downtime information in this monitoring period have been listed, which was cross-checked with the operation logbook during on-site visiting. Hence, the CL01 was closed out. CL02 was raised requesting to clarify the difference between the MR and ER calculation sheet. PP has provided the following clarification in the revised MR. The first monitoring period could be from 18/01/ /08/2013. However, the invoice of electricity generation is monthly presented. In addition, the actual monthly record time is at 24:00 on 27th. Therefore, PP has to give up the ER from 18/01/ /01/2011. The actual monitoring period is from 28/01/ /08/2013. The verification team reviewed and confirmed the description of monthly recording time is correct during the onsite check. Hence, the CL02 was closed out. <Power System> The power generated by the proposed project is transmitted through an 110kV transformer at the site to Bachu 110kV substation, and then connected to Xinjiang Uygur Autonomous Regional Power Grid that is an integral part of NWPG. When the project fails to generate power or under maintenance, it will import electricity from the grid via this 110kv line. <Metering System> Electricity Generation: For the purpose of metering, two sealed meters are installed to measure the electricity fed to the grid by the proposed project and the electricity purchased from the grid to the project site. Main meter M1 and back-up meter M2 are installed at the high voltage side of the 110kV transformer substation at the project site. All above meters have been properly installed, maintained, calibrated and recorded according to national standard- Technical Administrative Code of Electric Energy Metering DL/T China Environmental United Certification Center Co., Ltd. 15

17 Biomass Weighting System: For the quantity of biomass fuel combusted in the project plant, one weight meter is installed before the boiler. For the quantity of biomass purchased in the project plant, one weight meter is installed at the purchase centre. Moisture Analyzing System: For the moisture content of the biomass residues, one electronic analytical balance and one drying box are installed in the laboratory of the project plant. Fossil Fuel weighting System: For the quantity of fuel combusted in the boiler and the use of non-renewable fuel in the project plant, one volume meter is used to measure. This meter is installed in a fuelling vehicle. CAR 02 was raised requesting to complete the information of monitoring meters in MR section 4.5 The verification team reviewed the section 4.5 of the revised MR. The meter information for NCV k is still missing. PP has explained the reason as follows According to the description of B.7.1 in PDD, PP should measure it quarterly, taking at least three samples for each measurement and determine once in the first year of the crediting period. The average value can be used for the rest of the crediting period. Measure the NCV based on dry biomass. The registered date is on 18/01/2013. Most of credits in this monitoring period are retroactive ones. Until the end of this monitoring period, only 5 month past, PP does not have enough samples to determine the value. The Net Calorific Value of biomass type k will be determined for the next monitoring period, but no available for this monitoring period. Therefore, the verification team raises FAR 01 that the monitoring data and measurement information of NCV k need to be presented in the next monitoring period. The verification team confirmed that other missing information of monitoring meters, have been listed, which was cross-checked with record during on-site visiting. Hence, the CAR02 was closed out. CAR 03 was raised requesting to revise the section 4.5 in MR. All the monitored parameters in the registered PDD should been listed and monitored in MR. The verification team confirmed that PP has listed the missing parameters of BF available, BF household and other usage and NCV k in the registered PDD in the section 4.5 in revised MR. For NCV k, FAR 01 has been raised by verification team. Hence, the CAR03 was closed out. <Calibration> China Environmental United Certification Center Co., Ltd. 16

18 The calibration information of all meters is summarized in Table 5 Table 5 Calibration information of meters Electricity Generation: Monitoring Parameter Monitoring equipment Serial number Date of calibration Valid till Precision Calibration Frequency Calibration Entity M1: -Type: DTSD341 -Serial No.: /02/ /02/ /02/ /01/ /02/ /02/ /02/ /01/ S Once a year Xinjiang Electric Power Academy of Sciences Center of Electric Energy Measurement EG PJ to NWPG, y M2: (Back up) -Type: DTSD341 -Serial No.: /02/ /02/ /02/ /01/ /02/ /02/ /02/ /01/ S Once a year Xinjiang Electric Power Academy of Sciences Center of Electric Energy Measurement M1: -Type: DTSD341 -Serial No.: /02/ /02/ /02/ /01/ /02/ /02/ /02/ /01/ S Once a year Xinjiang Electric Power Academy of Sciences Center of Electric Energy Measurement EG NWPG to PJ, y M2: () -Type: DTSD341 -Serial No.: /02/ /02/ /02/ /01/ /02/ /02/ /02/ /01/ S Once a year Xinjiang Electric Power Academy of Sciences Center of Electric Energy Measurement The above meters were calibrated by Xinjiang Electric Power Academy of Sciences Center of Electric Energy Measurement on periodic basis. The certificates of Xinjiang Electric Power Academy of Sciences Center of Electric Energy Measurement were reviewed by CEC. The code number is Xin Faji [2008] Qiye 002, issued on 10/04/2008, valid to 09/04/2013. The valid period of the calibration reports of the meters can cover this monitoring period. The calibration reports of the meters have been provided to CEC. Biomass Weighting System: Monitoring Parameter Monitoring equipment Date of calibration Valid till Precision Calibration Frequency Calibration Entity China Environmental United Certification Center Co., Ltd. 17

19 Serial number BF y -Type: N Serial No.: P /01/ /01/ /01/ /01/ /01/ /01/ Once a year Bachu Measurement Management Centre BF purchase,y -Type: SCS-60 -Serial No.: 13/01/ /01/ /01/ /01/ /01/ /01/2014 III Once a year Bachu Measurement Management Centre Moisture Analyzing System: Monitoring Parameter Monitoring equipment Serial number Date calibration of Valid till Precision Calibration Frequency Calibration Entity Moisture content of the Electronic analytical balance -Type: FA2004 -Serial No.: /01/ /01/ /01/ /01/ /01/ /01/2014 I Once a year Bachu Measurement Management Centre biomass residues Drying box -Type: 101-1ES -Serial No.: /01/ /01/ /01/ /01/ /01/ /01/2014 ±1 Once a year Bachu Measurement Management Centre Fossil Fuel weighting System: Monitoring Parameter Monitoring equipment Serial number Date calibration of Valid till Precision Calibration Frequency Calibration Entity FC i,y Volume Meter -Type:LC11-A -Serial:026 13/01/ /01/ /01/ /01/ /01/ /01/ Once a year Bachu Measurement Management Centre China Environmental United Certification Center Co., Ltd. 18

20 Quantity of fossil fuel assumption FC j,y Volume Meter -Type: LC11-A -Serial:026 13/01/ /01/ /01/ /01/ /01/ /01/ Once a year Bachu Measurement Management Centre The above meters were all calibrated by Bachu Measurement Management Centre on periodic basis. The certificates of Bachu Measurement Management Centre were reviewed by CEC. The code number is Xin Faji [2009] Xianji 056, issued on 10/09/2009, valid to 09/09/2014. The valid period of the calibration reports of the meters can cover this monitoring period. The calibration reports of the meters have been provided to CEC. CAR 04 was raised requesting to complete the calibration information for the all monitored parameters. Besides the information of NCV k,, the verification team reviewed and confirmed all calibration information for other monitored parameters, which need to be monitored by meters, have been provided in Section 4.7 in the revised MR. It is cross-checked with provided calibration reports and certificates. For NCV k, FAR 01 has been raised by verification team. Hence, the CAR04 was closed out. 3) Information (data and variables) provided in the monitoring report that is different from that is stated in the registered PDD The verification team can confirm that PP implemented and operated the project activity in accordance with the registered PDD (or the approved revised monitoring plan). The actual project activity does not contain changes which may impact the additionality or scale of the project activity or applicability of baseline methodology. In addition, PP adds one more monitored parameter of BF purchase,y, which is the quantity of biomass fuel type k purchased in the project plant during the year y. It is anyways monitored by PP and will improve the whole monitoring structure of this project. The actual emission reductions during the monitoring period from 28/01/2011 to 27/08/2013 is 120,163 tco 2 e, which is lower than the estimated value of 166,104 tco 2 e in the registered PDD. The estimated value of 166,104 tco 2 e is calculated by dividing the estimated annual emission reductions of 62,774 tco 2 e in the registered PDD by 365 days, and then multiplied by 942 days. China Environmental United Certification Center Co., Ltd. 19

21 3.3 Compliance of monitoring plan with monitoring methodology including applicable tool(s) The monitoring plan of the project activity is in accordance with the approved methodology be AMS-I.D. (version 17.0) including applicable Tool to calculate project or leakage CO2 emissions from fossil fuel combustion (version 02) applied by the registered PDD. 3.4 Compliance of monitoring activities with the registered monitoring plan Monitoring of parameters related to the GHG emission reductions in the project activity has been carried out in accordance with the monitoring plan in the registered PDD. The parameters required by the registered monitoring plan and the way the verification team has verified the information flow (from data generation, aggregation, to recording, calculation and reporting) for these parameters including the values in the monitoring reports are described below: Table 6: The Parameters Required in the Monitoring Plan Verified by the DOE Electricity Generation: Data/Parameter Data Unit: Description: Verified information flow : Means Verification/Comments Cross-check of EG PJ to NWPG, y MWh Electricity exported to the grid in the year y Two sealed meters are installed to measure the electricity fed to the grid by the proposed project. Main meter M1 and back-up meter M2 are installed at the high voltage side of the 110kV transformer substation at the project site. The meter used has been calibrated according to the requirement of the registered monitoring plan. The accreditation to the calibration institute has also been confirmed. The electricity exported to the grid in Monthly Reading Records (MRRs) was compared with the value in the ETNs/ESIs. It is confirmed that the minimum values of the electricity supplied to the grid between MRRs and ETNs/ESIs are used for calculation. The following documents were used to compare, cross-check and verify the electricity supplied to the grid by the project during the given monitoring period: Electricity Transaction Notes(ETNs) Electricity Sale Invoice(ESIs) The daily and monthly reading records of the meters observed on site China Environmental United Certification Center Co., Ltd. 20

22 Data/Parameter Data Unit: Description: Verified information flow : Means Verification/Comments Cross-check of EG NWPG to PJ, y MWh Electricity imported to the grid in the year y Two sealed meters are installed to measure the electricity purchased from the grid to the project site. Main meter M1 and back-up meter M2 are installed at the high voltage side of the 110kV transformer substation at the project site. The meter used has been calibrated according to the requirement of the registered monitoring plan. The accreditation to the calibration institute has also been confirmed. The electricity exported to the grid in Monthly Reading Records (MRRs) was compared with the value in the ETNs/ESIs. It is confirmed that the minimum values of the electricity supplied to the grid between MRRs and ETNs/ESIs are used for calculation. The following documents were used to compare, cross-check and verify the electricity supplied to the grid by the project during the given monitoring period: Electricity Transaction Notes(ETNs) Electricity Sale Invoice(ESIs) The daily and monthly reading records of the meters observed on site Electricity supplied to the grid by the project (net) : EG PJ,y So the net power supplied to the grid in the years y, calculated as the following equation: EG PJ,y = EG PJ to NWPG, y - EG NWPG to PJ, y In which: EG PJ to NWPG, y Electricity exported to the grid in the year y EG NWPG to PJ, y Electricity imported to the grid in the year y The data of EG PJ to NWPG, y and EG NWPG to PJ, y are directly monitored by the main meters M1. The data is measured continuously and reported on a monthly basis. The data of EG PJ to NWPG, y and EG NWPG to PJ, y is double checked with the ETNs and ESIs. If there is any trouble with M1, the data of another meter M2, will be used for measuring power generation supplied and power imported to the project by the grid. The data record and related documents are cross-checked by the verification team and found they are consisting. China Environmental United Certification Center Co., Ltd. 21

23 Biomass Weighting System: Data/Parameter Data Unit: Description: Verified information flow : Means of Verification/Comments Cross-check BF y tonns of dry matter Quantity of biomass fuel type k combusted in the project plant during the year y For the quantity of biomass fuel combusted in the project plant, one weight meter is installed before the boiler. The meter used has been calibrated according to the requirement of the registered monitoring plan. The accreditation to the calibration institute has also been confirmed. The data is adjusted by the moisture content to determine the quantity of dry biomass. The quantity of biomass fuel combusted in the project plant is from the Monthly Reading Records (MRRs). Once FAR 01 is closed out during next monitoring period. It will be cross-checked with an annual energy balance that is based on electricity generated and any fuel purchase receipts. Data/Parameter Data Unit: Description: Verified information flow : BF purchased,y tonns Quantity of biomass fuel type k purchased in the project plant during the year y For the quantity of biomass purchased in the project plant, one weight meter is installed at the purchase centre. Means Verification/Comments Cross-check of The meter used has been calibrated according to the requirement of the registered monitoring plan. The accreditation to the calibration institute has also been confirmed. The quantity of biomass fuel purchsed in the project plant is from the Monthly Reading Records (MRRs). N/A Quantity of available biomass residues for each type in the region: BF available The data is from the reports of 2011 and 2012 Research of the Biomass Supply and Demand Situation with in 50 km radius region, which is published by Bureau of Argricultural of Bachu County. The verification team has checked the reports. Quantity of biomass residues for each type that are utilized for household fuel and other usage: BF household and other usage The data is from the reports of 2011 and 2012 Research of the Biomass Supply and Demand China Environmental United Certification Center Co., Ltd. 22

24 Situation with in 50 km radius region, which is published by Bureau of Argricultural of Bachu County. The verification team has checked the reports. Moisture Analyzing System: Data/Parameter Data Unit: Description: Verified information flow : Means of Verification/Comments Cross-check Moisture content of the biomass residues % water content Moisture content of each biomass residue type k One electronic analytical balance and one drying box are installed in the laboratory of the project plant. The meter used has been calibrated according to the requirement of the registered monitoring plan. The accreditation to the calibration institute has also been confirmed. The quantity of biomass fuel combusted in the project plant is from the Monthly Reading Records (MRRs). Once FAR 01 is closed out during next monitoring period. It will be cross-checked with an annual energy balance that is based on electricity generated and any fuel purchase receipts. Weighted average net calorific value of fuel type i in the year y: NCV i,y The verification team has checked that there is no revision of the IPCC Guidelines. Weighted average CO2 emission factor of fuel type i in the year y: EF CO2,i,y The verification team has checked that there is no revision of the IPCC Guidelines. Fossil Fuel weighting System: Quantity of fuel type i combusted in the boiler during the year y : FC i,y The verification team has checked that FC i,y is measured by a volume meter. This meter is installed in a fuelling vehicle. Once PP needs fuel combusted in the boiler, PP will record the usage volume. During the on-site check, the verification team confirms there is no fuel combusted in the boiler. The situation has been crossed checked through the interviews with WU Zhao and WEI Xinhong from National Bachu Bio Energy Co., Ltd.. The quantity of fuel combusted in the boiler is from the Monthly Reading Records (MRRs). The volume meter used has been calibrated according to the requirement of the registered monitoring plan. The accreditation to the calibration institute has also been confirmed. Quantity of fossil fuel assumption: FC j,y The verification team has checked that the use of non-renewable fuel in the project is oil only. China Environmental United Certification Center Co., Ltd. 23

25 Therefore the way of measurement by a volume meter is reasonable. FAR 02 is raised by the verification team. PP needs to decide either to change the volume meter to mass meter or apply for monitoring plan revision in the next monitoring period. During the on-site check, the verification team confirms the only fuel type used in the project is oil. It is used for auxiliary equipments.the situation has been crossed checked through the interviews with WU Zhao and WEI Xinhong from National Bachu Bio Energy Co., Ltd. The quantity of fuel combusted for auxiliary equipments is from the Monthly Reading Records (MRRs) and cross-checked by fuel purchase receipts. The volume meter used has been calibrated according to the requirement of the registered monitoring plan. The accreditation to the calibration institute has also been confirmed. 3.5 Compliance with the calibration frequency requirements for measuring instruments The verification team confirms that the calibration is conducted at the frequency as specified by the methodology, monitoring plan of the registered PDD 3.6 Assessment of data and calculation of GHG emission reductions According to the registered PDD and monitoring report, the following internal are monitored: Electricity supplied to the grid by the project (net) (EG PJ,y ); Quantity of fuel type i combusted in the boiler during the year y (FC i,y ) and Quantity of fossil fuel assumption (FC j,y ) for the calculation of project emission, and BF available, BF household and other usage and BF purchase,y for the calculation of leakage. The emission reductions for the project are calculated as the baseline emissions minus the project emissions and leakage. The GHG emission reductions are calculated as follows: ER y =BE y PE y L y Where: ER y is emission reductions in year y; BE y is baseline emissions in year y; PE y is project emissions in year y; L y is leakage in year y. Project Emissions China Environmental United Certification Center Co., Ltd. 24

26 According to the registered PDD, refer to the methodology of AMS- I.D. (version 17.0), for the proposed project, CO2 emission from on-site consumption of fossil fuels due to the project activity can be calculated using the Tool to calculate project or leakage CO2 emissions from fossil fuel combustion (version 02). The potential CO2 emissions from fossil fuel combustion include that from the combustion of the fossil fuel in the boiler and auxiliary equipments on the site. CO2 emissions from fossil fuel combustion in process j are calculated based on the quantity of fuels combusted and the CO2 emission coefficient of those fuels, as follows: Project emission from fossil fuel combustion in the boiler: Project emission from fossil fuel combustion of auxiliary equipments on the site: (t) (t) 28/01/ /02/ /02/ /03/ /03/ /04/ /04/ /05/ /05/ /06/ /06/ /07/ /07/ /08/ /08/ /09/ /09/ /10/ /10/ /11/ /11/ /12/ (28/01/ /12/2011) /12/ /01/ /01/ /02/ /02/ /03/ /03/ /04/ /04/ /05/ /05/ /06/ /06/ /07/ /07/ /08/ /08/ /09/ /09/ /10/ China Environmental United Certification Center Co., Ltd. 25

27 28/10/ /11/ /11/ /12/ (28/12/ /12/2012) /12/ /01/ /01/ /02/ /02/ /03/ /03/ /04/ /04/ /05/ /05/ /06/ /06/ /07/ /07/ /08/ (28/12/ /08/2013) Total (t) (t) (t) 2011 (28/01/ /12/2011) (28/12/ /12/2012) (28/12/ /08/2013) Total 0 1,222 1,222 Leakage As per AMS-I.D. version 17.0, if energy generating equipment is transferred from another activity, leakage is to be considered. Energy generating equipments of the project are newly purchased and not transferred from another activity. Therefore, this part of leakage emissions could be ignored. In addition, according to attachment C to appendix B of Indicative simplified baseline and monitoring methodologies for selected small-scale CDM project activity categories General guidance on leakage in biomass project activities Version 3, for small-scale energy CDM project activities involving renewable biomass, there are three types of emission sources that are potentially significant (>10% of emission reductions) and attributable to the project activities: A. Shifts of pre-project activities. Decreases of carbon stocks, for example as a result of deforestation, outside the land area where the biomass is grown, due to shifts of pre-project activities. China Environmental United Certification Center Co., Ltd. 26

28 B. Emissions related to the production of the biomass. C. Competing uses for the biomass. The biomass may in the absence of the project activity be used elsewhere, for the same or a different purpose. The Project utilizes biomass residues, in some cases, the biomass used in the Project could be used for other purposes in the absence of the Project. Therefore, Competing uses of biomass is one potential emission source of leakage. By checking the report of 2011 Research of the biomass supply and demand situation with in 50 km radius region in Bachu county, which is issued by Bureau of Agriculture of Bachu County. The information from this report is summarized as follows. Monitoring Parameter BF available BF household and other usage Quantity of available biomass residues for each type in the region Quantity of biomass residues for each type that are utilized for household fuel and other usage Biomass residue categories Cotton stalks (t) Wood residues (t) 250, ,000 50, ,000 During the period from 28/01/2011 to 27/12/2011. the biomass purchased (BF purchase,y ) by the project is 94, tons. It is all from the cotton stalk residuals. Therefore In 2011, the quantity of available biomass in the region (e.g., 50 km radius), is 94.97% 1 larger than the quantity of biomass that is utilized including the project activity. By checking the report of 2012 Research of the biomass supply and demand situation with in 50 km radius region in Bachu county, which is issued by Bureau of Agriculture of Bachu County. The information from this report is summarized as follows. Monitoring Parameter BF available BF household and other usage Quantity of available biomass residues for each type in the region Quantity of biomass residues for each type that are utilized for household fuel and other usage Biomass residue categories Cotton stalks (t) Wood residues (t) 350, , ,000 70,000 1 ((250,000-50,000)/12*11-94,031.90)/ 94,031.90= China Environmental United Certification Center Co., Ltd. 27

29 During the period from 28/12/2011 to 27/12/2012. the biomass purchased (BF purchase,y ) by the project is 144, tons. It is all from the cotton stalk residuals. Therefore In 2012, the quantity of available biomass in the region (e.g., 50 km radius), is % 2 larger than the quantity of biomass that is utilized including the project activity. Thus, the quantity of available biomass in the region is more than 25% larger than the quantity of usage. Therefore, the leakage Ly is zero. CL03 was raised to requesting PP to explain why leakage is considered as zero in this monitoring period. PP has provided the explanation of the leakage in accordance with General guidance on leakage in biomass project activities Version 3, in the revised MR. The verification team reviewed and confirmed the explanation of the leakage. Hence, the CL03 was closed out. Baseline Emission: BE y = EG pj,y EF y Where: EG pj,y is net electricity supplied to the grid; EF y is GHG emission factor of the Northwest China Power Grid, calculated ex-ante during the first crediting period, the value is CO 2 e/mwh. The 1 st monitoring period covers from 28/01/ /08/2013. The readings of main meters are recorded on hourly basis and reported on monthly basis by the grid company and project owner. The grid company issues Electricity Transaction Notes (ETN) to confirm the total electricity exported to and imported from the grid by the project. Electricity Sales Invoices(ESI) were achieved normally. The verified electricity data are listed in Table 7: Table 7: Electricity exported to and imported from the grid by the project (Unit: kwh) Period Exported electricity Imported electricity Verified value Sales Exported Sales Imported Exported Imported Electricity receipts electricity receipts electricity supplied to (ETN/ESI) recorded by (ETN/ESI) recorded by the grid by main meters) main meters the project (EG pj,y) 2 ((350, ,000)-144,674.05)/ 144,674.05= China Environmental United Certification Center Co., Ltd. 28

30 A B C D E=Min (A,B) F=Max (C,D) G=E-F 28/01/ /02/2011 4,893,240 4,893,240 79,860 79,860 4,893,240 79,860 4,813,380 28/02/ /03/2011 5,107,080 5,107,080 63,360 63,360 5,107,080 63,360 5,043,720 28/03/ /04/2011 6,194,100 6,194,100 35,400 35,640 6,194,100 35,640 6,158,460 28/04/ /05/2011 5,592,180 5,592,180 20,103 19,800 5,592,180 20,103 5,572,077 28/05/ /06/2011 4,794,900 4,794,900 58,098 58,080 4,794,900 58,098 4,736,802 28/06/ /07/2011 4,245,780 4,245,780 40,299 40,260 4,245,780 40,299 4,205,481 28/07/ /08/2011 4,881,360 4,881,360 43,053 42,900 4,881,360 43,053 4,838,307 28/08/ /09/2011 4,256,340 4,256,340 50,187 50,160 4,256,340 50,187 4,206,153 28/09/ /10/2011 1,754,940 1,754,940 38,226 38,280 1,754,940 38,280 1,716,660 28/10/ /11/2011 3,880,800 3,880,800 52,134 52,140 3,880,800 52,140 3,828,660 28/11/ /12/2011 5,211,360 5,211,360 43,689 43,560 5,211,360 43,689 5,167, (28/01/ /12/2011) 50,812,080 50,812,080 50,812, , , ,709 50,287,371 28/12/ /01/ ,623,860 7,260 5,616,600 28/01/ /02/ ,014,780 49,500 3,965,280 28/02/ /03/ ,268,120 58,260 5,209,860 28/03/ /04/ ,500 16,500 3,509,220 16,500 3,492,720 28/04/ /05/2012 5,168,460 5,168,460 23,223 23,100 5,168,460 23,223 5,145,237 28/05/ /06/2012 5,386,920 5,386,920 34,077 34,320 5,386,920 34,320 5,352,600 28/06/ /07/2012 5,730,120 5,730,120 36,408 36,300 5,730,120 36,408 5,693,712 28/07/ /08/2012 4,578,420 4,578,420 18,114 17,955 4,578,420 18,114 4,560,306 28/08/ /09/2012 4,830,540 4,830,540 33,391 33,000 4,830,540 33,391 4,797,149 28/09/ /10/2012 5,457,540 5,457,540 45,351 45,540 5,457,540 45,540 5,412,000 28/10/ /11/2012 4,859,580 4,859,580 35,790 35,640 4,859,580 35,790 4,823,790 28/11/ /12/2012 6,059,460 6,059,460 51,264 51,480 6,059,460 51,480 6,007, (28/12/ /12/2012) 60,487,020 60,487, , ,675 60,487, ,786 60,077,234 28/12/ /01/2013 4,950,660 4,950,660 42,078 42,240 4,950,660 42,240 4,908,420 28/01/ /02/2013 5,660,820 5,660,820 54,192 54,120 5,660,820 54,192 5,606,628 28/02/ /03/2013 5,822,520 5,822,520 21,690 21,780 5,822,520 21,780 5,800,740 28/03/ /04/2013 4,494,600 4,494,600 27,615 27,720 4,494,600 27,720 4,466,880 28/04/ /05/2013 6,097,080 6,097,080 38,295 38,280 6,097,080 38,295 6,058,785 28/05/ /06/2013 5,004,120 5,004,120 69,987 69,960 5,004,120 69,987 4,934,133 28/06/ /07/2013 5,505,720 5,505,720 50,883 50,820 5,505,720 50,883 5,454,837 28/07/ /08/2013 5,631,120 5,631,120 76,866 76,560 5,631,120 76,866 5,554, (28/12/ /08/2013) 43,166,640 43,166, , ,480 43,166, ,963 42,784,677 Total 154,465,740 1,316, ,149,282 China Environmental United Certification Center Co., Ltd. 29

31 The verification team has verified that the manual records of the above mentioned meters and crosschecked the data with the ETNs/ESIs supplied by grid covering (28/01/ /08/2013), and the conservative values are used to calculate the emission reduction. The emission reductions in this verified period: ER y = EG pj,y *EF y =153,149,282/1000* tco 2 e/mwh=121,385 tco2e The verification team has confirmed that the calculation of the emission reductions is correct. CAR 06 was raised requesting PP to confirm the value of electricity imported and exported needs to be confirmed by the comparison of sales receipts and records of monitoring meters. The conservative value need be to chosen. The revised MR has been provided to the DOE, the verification team reviewed the revised MR, confirmed all the monthly data of electricity exported/imported from the project to Grid is consistent with the ETNs/ESIs. PP has confirmed the value of electricity imported and exported by the comparison of sales receipts and records of monitoring meters. The conservative value has been to chosen. All related data has been updated in revised MR and ER spreadsheet. Hence, the CAR06 was closed out. Quantity of biomass fuel type k combusted in the project plant during the year y (BF y ) According the onsite check and interviews, cotton stalk is the only biomass type, which combusted in the project plant during this monitoring period. The readings of main meter is recorded on daily basis and reported on monthly basis by the project owner. Quantity of biomass fuel type k purchased in the project plant during the year y (BF purchased,y ) According the onsite check and interviews, cotton stalk is the only biomass type, which purchased in the project plant during this monitoring period. The readings of main meter is recorded on every purchase basis and reported on monthly basis by the project owner. Moisture content of the biomass residues The readings of main meter is recorded on daily basis and reported on monthly basis by the project owner. The verified BF y, BF purchased,y and Moisture content of the biomass residues data are listed in China Environmental United Certification Center Co., Ltd. 30

32 Table 8: Table 8: BF y, BF purchased,y and Moisture content of the biomass residues Moisture content of the biomass residues (%) Quantity of biomass fuel type k combusted in the project plant during the year y (BF y, t ) (dry, adjusted with moisture content) Quantity of biomass fuel type k purchased in the project plant during the year y (BF purchased,y, t ) 28/01/ /02/ , , /02/ /03/ , , /03/ /04/ , , /04/ /05/ , , /05/ /06/ , , /06/ /07/ , , /07/ /08/ , , /08/ /09/ , , /09/ /10/ , , /10/ /11/ , , /11/ /12/ , , (28/01/ /12/2011) , , /12/ /01/ , , /01/ /02/ , , /02/ /03/ , , /03/ /04/ , , /04/ /05/ , , /05/ /06/ , , /06/ /07/ , , /07/ /08/ , , /08/ /09/ , , /09/ /10/ , , /10/ /11/ , , /11/ /12/ , , (28/12/ /12/2012) , , /12/ /01/ , , /01/ /02/ , , /02/ /03/ , , /03/ /04/ , , China Environmental United Certification Center Co., Ltd. 31

33 28/04/ /05/ , , /05/ /06/ , , /06/ /07/ , , /07/ /08/ , , (28/12/ /08/2013) , , Total 230, The verification team has verified Monthly Reading Records (MRRs) for above monitoring parameters supplied by project owner for the period from 28/01/2011 to 27/08/2013. QA/QC The QA/QC procedures have been documented in the Monitoring Manual and applied in accordance with the registered PDD. The monitoring team has been set up and in operation. All of relevant staffs have been trained. The QA/QC procedures have been set up and in operation. Besides the monitoring parameter of NCV k, which is raised in FAR01, all other parameters indicated in the registered PDD have been measured and recorded in accordance with the registered PDD. All meters have been calibrated as per description in the registered PDD. The verification team has confirmed that the QA/QC procedures has been conducted with the registered PDD. Corresponding to the paragraph 246 of VVS version 05.0, CEC has ensured that: The data used for the determination of the emission reductions and biomass assessment are available and monitored in accordance with the registered monitoring plan with conservative assumption; The relevant commercial invoices (ETN, ESI) and Monthly Reading Records (MRRs) have been cross checked and found consistent; The appropriate methods and formulae for calculating baseline emissions, project emissions and leakage have been properly followed the methodology and the registered monitoring plan; The emission factor of Northwest China Power Grid determined ex-ante in the registered PDD is applied in the monitoring report and the calculations have been justified. 3.7 Assessment of GS Sustainability Air quality (AQ y ): China Environmental United Certification Center Co., Ltd. 32

34 As per the GS passport, AQ y is negative air quality effects (emissions other than GHG) that are prevented by processing units. Air quality has been monitored by Xinjiang Bachu Environment Protection Agency, which is a governmental bureau. The test report (No. Jiance ) indicates that air quality is in compliance with relevant national standard GB , Class II. Therefore, no further monitoring regarding air quality is required according to the registered GS-VER-PDD and the approved monitoring plan. The test report have been obtained and verified by the assessment team. Water Quality (WQ y ): As per the GS passport, WQ y is negative water quality effects (emissions other than GHG) that are prevented by processing units. During the onsite visit, it has been found that the wastewater from the plant is quite a little. Water quality has been monitored by Xinjiang Bachu Environment Protection Agency, which is a governmental bureau. The test report (No. Jiance ) indicates that water quality is in compliance with relevant national standard GB Class II. Therefore, no further monitoring regarding water quality is required according to the registered GS-VER-PDD and the approved monitoring plan. The test report have been obtained and verified by the assessment team. CAR 05 was raised requesting to provide the The evidence of AQy and WQy. PP has provided the test report (No. Jiance ), which is issued by Xinjiang Bachu Environment Protection Agency to DOE. The verification team has received and reviewed the test report. Hence, the CAR05 was closed out. Livelihood of the poor: During the onsite visit, it has been found that the amount of the payment for purchasing the biomass is collected and monitored, not only because GS requires it, but also it is the major external cost of the project. The payment records of biomass purchased have been obtained and verified by the assessment team. As per the onsite interviews with local villagers, the income of selling biomass to the project becomes significantly important for their families. Quality of Employment: As per GS passport, quality of employment includes labour conditions, such as job-related health and safety, amount of safety and health training courses. During the onsite visit, it has been found that a number of training courses were hold during this monitoring period. The verification team reviewed the records of training courses, which include the topics, such as China Environmental United Certification Center Co., Ltd. 33

35 case study and assessment on plant accidents, how to develop a learning team, intercultural communication and onsite safety. As per the onsite interviews with employees and administers of the project, the welfares fulfil the labour standards. All interviewees consider the training programs are useful to improve their works. Quantity of Employment (Emp y ) As per GS passport, the amount of employee payment and job positions need to be monitored. During the onsite visit, the monthly payment summary, which includes payment information and name list. The verification team confirmed that the project provided 112 job positions currently in Access to affordable and clean energy services As per GS passport, the quantity of the export power is monitored. The verification team has reviewed and confirmed the monitored value of the exported electricity for ER calculation. 3.8 Overview of results All necessary and requested documentation was provided by the project participants so that a complete verification of all relevant issues could be carried out. On site assessment was granted to the only and all installations of the plant, which are relevant for the project performance and the monitoring activities. There are no open issues regarding the implementation of the project activity and the steps to claim emission reductions, which might not be in compliance with the UNFCCC criteria, relevant guidance provided by the COP/MOP and the CDM EB (clarifications and/or guidance) and requirements of GS. China Environmental United Certification Center Co., Ltd. 34

36 4 VERIFICATION AND CERTIFICATION STATEMENT Swiss Carbon Value Ltd. commissioned China Environmental United Certification Center Co., Ltd. to carry out the first periodic verification of the project National Bachu Biomass Power Generation Project, with regard to the relevant requirements for CDM and GS project activities. The project reduces GHG emissions due to the generation of electricity by using of biomass residuals. This verification covers the period from 28/01/2011 to 27/08/2013. The verification is based on the validated and registered project design document, GS passport and monitoring report for this project. Verification is performed in accordance with section I of Decision 3/CMP.1, the latest applicable version of the completeness checklist and applicable CDM and GS requirements. The scope of this engagement covers the verification and certification of GHG emission reductions generated by this project during the first monitoring period. National Bachu Biomass Power Generation Project is responsible for the preparation of the GHG emissions data and the reported GHG emission reductions of the project on the basis set out within the monitoring plan indicated in the registered PDD dated 10/02/2013 and GS passport dated 01/04/2013. The development and maintenance of records and reporting procedures in accordance with the monitoring plan, including the calculation and determination of GHG emission reductions from the project is the responsibility of the management of the project. CEC verified the Monitoring Report version 01 dated 15/09/2013 and Monitoring Report version 04 dated 17/01/2014 and confirms that: The project is implemented and operated in accordance with the registered PDD. The monitoring plan complies with the monitoring methodology AMS-I.D. (version 17.0) and the actual monitoring complies with the monitoring plan, including compliance with any guidance provide by the Board; The data and calculation of GHG emission reductions have been assessed to correctly support the emission reductions being claimed. No post-registration changes occurred. Local villagers still have positive feedback about the project (focus on the operation of the project) There is no change that has occurred since the Validation and that have had an impact on the sustainable development aspects will need to be considered. There is no change has occurred that may have an impact on The Gold Standard qualification of the project, particularly with reference to any potential changes in the key parameters that could lead to an overall negative impact on sustainable development of the project. The mitigation plan is being implemented. The negative impacts on AQy and WQy is well controlled and meets relevant China Environmental United Certification Center Co., Ltd. 35

37 requirements. As the result of the first periodic verification, CEC confirms that GHG emission reductions are calculated without material misstatements. Based on the information seen and evaluated, we confirm that the project has achieved emission reductions as follows: Baseline emissions: 121,385 tco 2 e Project emissions: 1,222 tco 2 e Leakage: 0 tco 2 e Emission reductions: 120,163 tco 2 e Beijing, 01/04/2014 Beijing, 01/04/2014 DU Wei Verification Team Leader SONG Tiedong Chairman of Board China Environmental United Certification Center Co., Ltd. 36