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

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

2 Revision history of this document Version Date Description and reason of revision Number 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 2006 The Board agreed to revise the CDM project design document for small-scale activities (CDM-SSC-PDD), taking into account CDM-PDD and CDM-NM. 2

3 SECTION A. General description of small-scale project activity A.1 Title of the small-scale project activity: Green Glory Wastewater Treatment and Electricity Generation in Suratthani, Thailand (the Project) Version: /22/2008 A.2. Description of the small-scale project activity: Green Glory Co., Ltd. (GG) manufactures palm oil obtained from fruits of oil palm trees at its factory located in Suratthani province, Thailand. GG produces 31,300 tonnes of palm oil annually, resulting in 86,000m 3 /year of wastewater with high organic content which emits methane to the atmosphere when treated in anaerobic open lagoons. The project activity involves the installation of an anaerobic continuous stir lagoon reactor (CSLR) and biogas extraction system at the existing open lagoons of GG s plant. The collected biogas will be utilized for electricity generation through a 0.98 MW electricity generator. An enclosed flare system is installed in order to combust any excess biogas. GG currently consumes 0.65 MW of electricity for the palm oil production. Out of 0.65 MW, 0.50 MW is sourced from fibers, a by-product of the palm oil milling process, and the balance (0.15 MW) is purchased from the Thai national grid. In the project activity, the electricity generated from biogas displaces the in-house energy consumption currently purchased from the grid. Excess electricity will be sold to the Provincial Electricity Authority (PEA). By extracting and utilizing biogas, the Project will reduce methane emissions which would have otherwise been emitted to the atmosphere. The electricity generated with biogas by the Project will displace carbon intensive electricity of the Thai national grid,leading to additional green house gas (GHG) mitigation. The Project will contribute to the sustainable development of Thailand as follows: 1. Economic dimension By promoting indigenous and renewable energy resource, the Project will reduce the country s dependence on expensive fossil fuel imports and reliance on foreign exchange. It will also bring more economic and reliable energy production by eliminating the risks associated with oil price fluctuation. Moreover, GG plans to boost the employment from the local community in the area of civil works and installation and operation of a biogas facility, which results in sustainable increase in household income. 2. Social dimension The Project will improve the access of the local population to reliable renewable energy. 3

4 3. Environmental dimension The Project will improve the environmental performance of GG s palm oil factory by reducing not only uncontrolled GHG emissions but also the revolting stench. A.3. Project participants: Table 1: Table of project participants Name of Party involved Private and/or public entity(ies) project participants Kindly indicate if the Party involved wishes to be considered as project participant (Yes/No) Thailand (host) Green Glory Co., Ltd. No Japan Marubeni Corporation No Green Glory Co., Ltd. (GG) Green Glory Co.,Ltd. (GG), initially set up with a joint venture between the Southern Group and a group of Malaysian investors, was established in 2000 with a registered capital of 160 million Baht.. The main business activity is the production of crude palm oil and palm kernel oil with a capacity of 45 tons of Fresh Fruit Bunch (FFB) per hour Marubeni Corporation Marubeni is one of the leading trading firms in Japan. It has launched the Emission Credit Business Team in 2005 to exclusively handle emission credit trading as well as undertake the development of CDM and JI projects. Marubeni is the contact for the project activity. A.4. Technical description of the small-scale project activity: A.4.1. Location of the small-scale project activity: A Host Party(ies): Thailand A Region/State/Province etc.: Suratthani Province A City/Town/Community etc: The Project is located at the following address: Street: 23 Moo 6 4

5 Town: Swead County: Tha-chang Province: Suratthani Latitude: o N Longitude: o E A Details of physical location, including information allowing the unique identification of this small-scale project activity : Figure 1: Map of Thailand (Courtesy of University of Texas Library Map Collection) 5

6 Figure 2: Map of Surattthani Province Figure 2: Map of Suratthani Province A.4.2. Type and category(ies) and technology/measure of the small-scale project activity: (1) Types and categories of the small-scale project activity In accordance with Appendix B of the simplified modalities and procedures for small-scale CDM project activities ( SSC M&P ), the proposed project falls under the following types and categories: AMS-I.D. Type I : Renewable energy projects Category D : Electricity generation for a system Reference : Version 13, Scope 1, in effect as of Dec. 14, 2007 AMS-III.H Type III : Other project activities Category H : Methane recovery from wastewater treatment Reference : Version 9, Scope 13, in effect of Mar. 28, 2008 (2) Technology of the small-scale project activity 6

7 The majority of the wastewater is generated from centrifuged fresh fruit bunches (FFB), as seen in the flow diagram below (Figure 3) which illustrates both the wastewater treatment and electricity generation process. Continuous Stir Lagoon Reactor (CSLR), which acquired a copyright in 2004, will be installed to replace the conventional open lagoon treatment system. Under the project activity, wastewater will be treated at the following stations: 1. Collecting tank The tank stores wastewater after it is cooled and separated into sediments. 2. Distribution tank The distribution tank continuously pumps screened effluent to the CSLR. 3. Sludge dewatering Sludge will be removed from the CSLR and dewatered periodically. Dewatered sludge will be piped to storage pond and will be kept to stabilize the digestion with re-circulated system. Sludge in excess amount will be applied to land. 4. Post treatment Effluent from the CSLR will be further treated in the open lagoons and carried to the crop cultivation area. 5. Electricity generation The collected biogas will be aggregated, run into an energy conversion unit for electricity generation and sold to Provincial Electricity Authority (PEA). The figure 3 below shows the flowchart of the Project and its boundaries. Project boundary Palm oil Production Waste water Buffer pond KEYS = wastewater = Biogas Heat Screen and sand trap = Electricity = Treated water Energy conversion unit Distribution tank Generator Internal electricity consumption Anaerobic digester CSLR Sludge dewatering Supply of electricity to PEA Electricity grid Post treatment system 7

8 Figure 3: Project s flow chart and boundaries A.4.3 Estimated amount of emission reductions over the chosen crediting period: Table 2: Ex-ante estimation of emission reductions Year Estimation of overall emission reductions (tco 2 ) , , , , , , , , , ,337 Total estimated reductions (tonnes of CO 2 ) 259,841 Total number of crediting years Annual average of the estimated reductions over the crediting period 10 years 25,984 A.4.4. Public funding of the small-scale project activity: The Project will not receive any public funding from Annex I countries. A.4.5. Confirmation that the small-scale project activity is not a debundled component of a large scale project activity: As defined in paragraph 2 of Appendix C of the SSC M&P, a proposed small-scale project activity shall be deemed to be a debundled component of a large project activity if there is a register small-scale CDM project activity or a request for registration by another small-scale project activity: By 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. 8

9 The proposed project activity is not a debundled component of any larger project activity as there is no other small-scale project activity that fulfils the abovementioned criteria. 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: The approved baseline and monitoring methodologies which are applicable to the project activity are as follows: AMS-I.D Type I : Renewable energy projects Category D : Electricity generation for a system Reference : Version 13, Scope 1, in effect as of Dec. 14, 2007 AMS-III.H Type III : Other project activities Category H : Methane recovery from wastewater treatment Reference : Version 9, Scope 13, in effect as of Mar. 28, 2008 B.2 Justification of the choice of the project category: The Project meets all the applicability conditions set forth by the methodologies as presented below: Table 3: Applicability conditions for AMS-I.D. Applicability condition 1 This category comprises renewable energy generation units, such as photovoltaics, hydro, tidal/wave, wind, geothermal and renewable biomass, that supply electricity to and/or displace electricity from and electricity distribution system that is or would have been supplied by at least one fossil fuel fired generating unit. 2 If the unit added has both renewable and nonrenewable components (e.g. a wind/diesel unit), the eligibility limit of 15MW for a smallscale CDM project activity applied only to the renewable component. If the unit added cofires fossil fuel, the capacity of the entire unit shall not exceed the limit of 15MW. 3 Combined heat and power (co-generation) systems are not eligible under this category. 4 In the case of project activities that involve the addition of renewable energy generation units Project case The Project uses biogas recovered from the wastewater treatment system to displace electricity from the grid. The installed capacity of the unit added is 0.98MW and is under the 15MW threshold. Not applicable. The Project does not involve co-generation. Not applicable. The Project does not add to an existing renewable power generation units. 9

10 at an existing renewable power generation facility, the added capacity of the unit added by the project should be lower than 15MW and should be physically distinct from the existing units. 5 Project activities that seek to retrofit or modify an existing facility for renewable energy generation are included in this category. To qualify as a small-scale project, the total output of the modified or retrofitted unit shall not exceed the limit of 15MW. Table 4: Applicability conditions for AMS-III.H. Applicability conditions 1 This project category comprises measures that recover methane from biogenic organic matter in wastewaters by the following option: ---- (vi) Introduction of a sequential stage of wastewater treatment with methane recovery and combustion, with or without sludge treatment, to an existing wastewater treatment system without methane recovery (e.g. introduction of treatment in an anaerobic reactor with methane recovery as a sequential treatment step for the wastewater that is presently being treated in an anaerobic lagoon without methane recovery). 2 The recovered methane from the measures described in the applicability condition 1 above will be utilized for the following application: (a) Thermal or electricity generation directly 3 If the recovered methane is used for project activities covered under the applicability condition 2 (a), that component of the project activity can use a corresponding category under type I. 4 Measures are limited to those that result in emission reductions of less than or equal to 60kt CO 2 equivalent annually. Not applicable. The project activity does not involve retrofitting or modifying an existing facility for renewable energy generation. Project case The Project involves the installation of a sequential wastewater treatment system with methane recovery system at an existing open lagoon system with no methane recovery. The recovered methane from the Projec s sequential wastewater treatment system will be utilized for electricity generation. The approved baseline and monitoring methodology AMS-I.D. is used for the electricity generation component of the project activity. Ex-ante emission reductions due to the wastewater treatment are calculated as 25,159 tco 2 e annually. The result is lower than the 60kt CO 2 threshold. B.3. Description of the project boundary: In accordance with the methodologies AMS-I.D. and AMS-III.H., the project boundary encompasses the following: 10

11 The physical, geographical site of the renewable generation source: and The physical, geographical site where the wastewater and sludge treatment takes place. Planned project s flow chart and boundaries can also be seen in Figure 3 above. B.4. Description of baseline and its development: The electricity baseline is determined in line with paragraph 9 (a) of AMS-I.D., i.e. a combined margin (CM), consisting of the combination of operating margin (OM) and build margin (BM), according to the procedures prescribed in the Tool to calculate the emission factor for an electricity system. For the wastewater treatment system, the baseline is described in paragraph 1 (vi) of AMS-III.H. as being the existing anaerobic wastewater treatment system without methane recovery. In the Project s case, the existing system is a series of anaerobic lagoons. 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 line with the Attachment A to Appendix B of the simplified modalities and procedures for small-scale CDM project activities, the Project is deemed to be additional if it faces at least one of the following barriers: (a) Investment barriers (b) Technological barriers (c) Barrier due to prevailing practice (d) Other barriers Technological barrier The implementation of the Project requires an upgrading of skills for the optimal operation and maintenance of the digester as well as the boiler and gas engine. Success of the Project depends on the quantity and quality of biogas captured, which is affected by numerous variables such as the COD load of incoming wastewater and the temperature conditions. GG has no experience in operating and monitoring of the anaerobic digestion process with methane recovery system. As the quality of biogas is crucial to the operation of the boiler and gas engine, upgrading the skills of GG s employees is a significant challenge to the company. Barrier due to prevailing practice According to Energy for Environment Foundation Thailand, 37 palm oil mills are currently operated in the southern part of Thailand 1. Of these, there are approximately 6 plants that have installed the similar

12 type of biogas recovery system with the expectation of the project being registered as a CDM project activity. As discussed in the foregoing sections, the predominant technology for wastewater treatment in Thailand is open lagoons. This is especially the case for small scale facilities.. This corresponds to the fact that apart from CDM assistance there are almost no incentives for palm oil mill producers to invest in more expensive and more technologically complicated systems. Moreover, the current practice of open lagoon based wastewater treatment system complies with the applicable laws and regulations of Thailand. Starting date of the project activity and validation It is required that where the starting date of the project activity falls before the date of validation, evidence is to be provided to show that the incentive from the CDM was seriously considered in the decision to proceed with the project activity. As given in Section C. 1.1., the starting date of the project activity was June 2007, which is prior to commencement of the validation. There is ample evidence to show that the GG seriously considered the CDM from the early stages of the project development. B.6. Emission reductions: B.6.1. Explanation of methodological choices: Emission reductions associate with wastewater treatment The baseline scenario for wastewater treatment is the existing anaerobic lagoon system without methane recovery corresponding to (vi) of paragraph 1 of AMS-III.H. The emission reductions due to the wastewater treatment (ER y,ww ) is calculated as the difference between the baseline emissions from wastewater (BE y,ww ) and sum of the project emissions (PE y,ww ) and leakage (LE y,ww ) ER BE PE LE y, ww y, ww y, ww y, ww Equation 1 PE PE PE PE PE PE y, ww y, power y, ww, treated y, s, final y, fugitive y, dissolved Equation 2 where: PE y,power PE y,ww,treated PE y,s,final PE y,fugitive PE y,dissolved = emissions from electricity or diesel consumption in year y = emissions through degradable organic carbon in treated wastewater in year y = methane emissions from the anaerobic decay of the final sludge generated in the wastewater system in year y = emissions from methane release in capture and flare systems in year y = emissions from dissolved methane in treated wastewater in year y 12

13 As the project activity does not involve technology transfers from or to another activity, there is no leakage from the transfer of technology. Table 5: Input values and data sources for emission reductions associated with wastewater treatment Parameter Description Value Source BE Q COD B MCF GWP _ CH Equation 3 y, ww y, ww y, removed, i O, ww ww, treatment, i 4 i BE y,ww Baseline emissions from wastewater Calculated (tco 2 /year) Q y,ww Volume of wastewater in year y (m 3 /year) Year 1: 14,662 COD y,removed,i B O,ww MCF ww,treatment,i COD removed by the anaerobic wastewater treatment systems i in the baseline situation in the year y to which the sequential anaerobic treatment step is being introduced (tonnes/m 3 ) Methane producing capacity of the wastewater (kg CH 4 /kg COD) Methane correction factor for the existing anaerobic wastewater treatment systems I to which the sequential anaerobic treatment step is being introduced GG Year 2-10: 86, GG 0.21 AMS-III.H. 0.8 Lower value for anaerobic deep lagoon in AMS- III.H. table III.H.1 GWP_CH 4 Global warming potential of methane 21 AMS-III.H. PE EG EF y, power y, combusted y Equation 4 PE y,power Project emissions from electricity or diesel Calculated consumption in year y (tco 2 /year) EG y,consumed Amount of electricity consumed by the 0 GG project activity facilities (MWh/year) EF y Emission factor of electricity consumed (tco 2 /MWh) - PE Q COD B MCF GWP _CH y, ww, treated y, ww y, ww, treated O, ww ww, final 4 Equation 5 PE y,ww,treated Project emissions through degradable organic carbon in treated wastewater in year y (tco 2 /year) Calculated Q y,ww Volume of wastewater treated in year y (m3/year) Year 1: 14,662 GG COD y,ww,treated COD of the final treated wastewater discharged into sea, river or lake in the year y (toones/m 3 ) Year 2-10: 86, GG 13

14 B O,ww Methane producing capacity (kg CH4/kg COD) 0.21 IPCC, as per AMS-III.H. MCF ww,final Methane correction factor based on type of treatment and discharge pathway of the wastewater (fraction) 1 Lower value for anaerobic deep lagoon in AMS- III.H., table III.H.1 GWP_CH 4 Global warming potential of methane 21 AMS-III.H. PE S DOC MCF DOC F 16/12GWP CH Equation 6 _ y, s, final y, final y, s, final s, final F PE y,s,final S y,final DOC y,s,final MCF s,final Project methane emissions from the anaerobic decay of the final sludge generated in the wastewater system in year y (tco 2 /year) Amount of final sludge generated by the wastewater treatment in year y (tonnes) Degradable organic content of the final sludge generated by the wastewater treatment in year y (fraction) Methane correction factor of the landfill that receives the final sludge (fraction) 4 Calculated Neglected GG since the final sludge will be land applied Value for industrial sludge specified in AMS- III.H., as per IPCC - AMS-III.G. and methane tool as per AMS-III.H. 0.5 IPCC as per AMS-III.H. DOC F Fraction of DOC dissimilated to biogas (fraction) F Faction of CH 4 in landfill gas (fraction) 0.5 IPCC as per AMS-III.H. GWP_CH 4 Global warming potential for methane 21 AMS-III.H. (tco 2 /tch 4 ) PE PE 1 CFE Q B COD Equation 7 y, fugitive PE y,fugitive PE y,fugitive,ww CFE ww Q y,ww y, fugitive, ww MCF ww ww, j y, ww 0, ww GWP _ CH 4 j y, removed, j Project emissions from methane release in capture and flare system (tco 2 /year) Fugitive emissions through capture and utilization/combustion/flare inefficiencies in the anaerobic wastewater treatment in the year y (tco 2 /year) Capture and flare efficiency of the methane recovery and combustion equipment in the wastewater treatment (fraction) Volume of wastewater treated in year y (m 3 /year) Calculated Calculated 0.9 As per AMS- III.H. Year 1: 14,662 GG 14

15 B 0,ww COD y,removed,j MCF ww,j Methane producing capacity of the wastewater (kg CH 4 /kg COD) COD removed by the treatment system j of the project activity equipped with methane recovery in the year y (tonnes/m 3 ) Methane correction factor for the wastewater treatment system j (fraction) Year 2-10: 86, IPCC, as per AMS-III.H GG 1 Higher value for anaerobic deep lagoon in AMS- III.H. table III.H AMS-III.H. GWP_CH4 Global warming potential for methane (tco 2 /tch 4 ) PE Q CH GWP _CH y, dissolved y, ww 4 y, ww, treated 4 Equation 8 PE y,dissolved Project emissions from dissolved methane Calculated in treated wastewater in year y (tco2/year) Q y,ww Volume of wastewater treated in year y Year 1: GG (m3/year) 14,662 [CH4] GWP_CH4 Dissolved methane content in the treated wastewater (tonnes/m3) Global warming potential for methane (tco 2 /tch 4 ) Year 2-10: 86, AMS-III.H. default value for anaerobic discharge 21 AMS-III.H. Emission reductions associated with electricity displacement The baseline for power generation is the electricity (kwh) produced by the renewable generating unit multiplied by an emission coefficient (measured in kgco 2 e/kwh) calculated in a transparent and conservative manner as a combined margin (CM), consisting of the combination of operating margin (OM) and build margin (BM) according to the procedures prescribed in the Tool to calculate the emission factor for an electricity system (version 01). Table 6: Input values and data sources for emission reductions associated with electricity displacement Parameter Description Value Source ER EG EF y, power y, displaced y, grid Equation 9 ER y,power Emission reductions due to electricity Calculated displacement in year y (tco 2 /year) EG y,displaced Quantity of electricity that would be displaced by the project activity (MWh/year) Year 1: 1,185 GG 15

16 EF y,grid The grid CO 2 emission factor in year y (tco 2 /MWh) Year 2-10: 6, Equation 10 Step 1. Identify the relevant electric power system As per the Tool, the project electricity system is defined by the spatial extent of the power plants that are physically connected through transmission and distribution lines to the project activity and that can be dispatched without significant transmission constraints. Since there is no layer dispatch system and DNA guidance of grid boundaries available in Thailand, for the project activity, the grid boundary system is defined at the national level. Step 2. Select an operating margin (OM) method The Tool offers four options for the calculation of OM: (a) Simple OM, (b), Simple adjusted OM, (c) Dispatch Data Analysis, or (d) Average OM. Since EGAT s low-cost/must run resources constitute less than 50% of the total grid generation and no dispatch data is available to conduct Dispatch Data Analysis, option (a) Simple OM method was chosen. For the data vintage, ex-ante option was selected for the Project. Step 3. Calculate the operating margin emission factor according to the selected method (OM) The simple OM method as selected in Step 2 above is calculated as the generation-weighted average CO 2 emissions per unit net electricity generation of all generating power plants serving the system, not including low-cost/must-run power plants/units. The Tool provides the following three approaches to calculate the simple OM. Option A: Option B: Option C: Based on data on fuel consumption and net electricity generation of each power plan/unit, or Based on data on net electricity generation, the average efficiency of each power unit and the fuel type(s) used in each power unit, or Based on data on the total net electricity generation of all power plants serving the system and the fuel types and total fuel consumption of the project electricity system. Calculating using Option A, while being the preferred methodological choice, is not feasible as no data on net electricity generation of each power plant is not officially made available by EGAT. Necessary data required for calculating emission factor using Option B is also not available. Nuclear and renewable power generation are considered as low-cost/must-run power sources in Thai grid and the quantity of electricity supplied to the grid by these sources is available from EGAT. Thus, Option C is applied as the Simple OM calculation method. Table 7: Input values and data sources for the calculation of EF y,grid,om Parameter Description Unit Source 16

17 EF y, grid, OM FC i i, y NCV EG i, y y EF CO2, i, y EF y,grid,om Simple operating margin CO 2 emission factor in year y FC i,y Amount of fossil fuel type i consumed in the project electricity system in year y NCV i,y Net calorific value (energy content) of fossil fuel type i in year y EF CO2,i,y CO 2 emission factor of fossil fuel type i in year y EG y Net electricity generated and delivered to the grid by all power sources serving the system, not including lowcost/must-run power plants/units, in year y tco 2 /MWh Mass or volume GJ/mass or GJ/volume tco 2 /GJ MWh Equation 10 EGAT,DEDE IPCC IPCC EGAT, DEDE Step 4: Identify the cohort of power units to be included in the build margin (BM) The build margin is calculated as the generation-weighted average emission factor of a sample of power plants. As per the Tool, the sample group to calculate BM consists of either: (a) The set of five power units that have been built most recently, or (b) The set of power capacity additions in the electricity system that comprise 20% of the system generation (in MWh) and that have been build most recently. According to the data obtained from the Department of Alternative Energy Development and Efficiency (DEDE) 2, 20% of the total grid generation of the Thai grid represents larger amount of generation than that of five most recently build power plants. The table below shows the data for recent power plant capacity additions that comprise 20% of the system generation. Therefore, the power plant capacity build prior to the most recent five is added in reverse chronological order until a value equivalent to 20% of total generation is reached. Detailed data for the BM is provided in Annex 3. For the data vintage, option 1, the ex-ante calculation, was chosen. Step 5. Calculate the build margin emission factor The build margin emission factor is the generation-weighted average emission factor (tco 2 /MWh) of all power units during the most recent year for which generation data is available, calculated as follows: 2 EGAT does not make publicly available generation data on individual power plants. 17

18 Table 8: Input values and data sources for the calculation of EF y,grid,bm Parameter Description Unit Source EG EF Equation 11 m, y EL, m, y m EF y, grid, BM EG EF y,grid,bm m m, y Build margin CO 2 emission factor in year y EG m,y Net quantity of electricity generated and delivered to the grid by power unit m in year y CO 2 emission factor of power unit m in year y EF EL,m,y Step 6. Calculate the combined margin emission factor (CM) The combined margin emission factor is calculated as follows: tco 2 /MWh MWh tco 2 /MWh DEDE, EPPO IPCC Table 9: Input values and data sources for the calculation of EF y,grid,cm Parameter Description Unit Source EF EF w EF w y, grid, CM y, grid, OM OM y, grid, BM BM Equation 12 EF y,grid,cm Combined margin CO2 tco 2 /MWh Calculated emission factor in year y. This equals to EF y,grid. EF y,grid,om Simple operating margin CO 2 tco 2 /MWh Equation 10 emission factor in year y. EF y,grid,bm Build margin CO 2 emission tco 2 /MWh Equation 11 factor in year y w OM Weighting of operating margin % Tool emission factor w BM Weighting of build margin emission factor % Tool B.6.2. Data and parameters that are available at validation: (Copy this table for each data and parameter) Data / Parameter: EG y Data unit: MWh Net electricity generated and delivered to the grid by all power sources serving system, not including low-cost/must run power plants/units, in year y Source of data used: EGAT, DEDE Value applied: See Annex 3 for details Justification of the The official data obtained from EGAT and DEDE. choice of data or description of measurement methods and procedures actually applied : 18

19 Any comment: Data / Parameter: Data unit: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Source of data used: FC i,y A mass or volume of the fuel type i Amount of fossil fuel type i consumed in the project electricity system in year y EGAT, DEDE See Annex 3 for details The official data obtained from EGAT and DEDE. NCV i,y TJ/unit Net calorific value of fossil fuel type i in year y DEDE See Annex 3 for details As provided in Electric Power in Thailand 2005 published by DEDE. EF CO2,i,y tco 2 /GJ CO 2 emission factor of fossil fuel type i in year y 2006 IPCC Guidelines for Energy See Annex 3 for details As provided in the IPCC guidelines. EG m,y MWh Net quantity of electricity generated and delivered to the grid by power unit m in year y EGAT, DEDE 19

20 Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: See Annex 3 for details The official data obtained from EGAT and DEDE. EF EL,m,y tco 2 /GJ CO 2 emission factor of power unit m in year y 2006 IPCC Guidelines for Energy See Annex 3 for details As provided in the IPCC guidelines. Data / Parameter: EF y,grid,cm Data unit: The grid CO 2 emission factor in year y tco 2 e/mwh Source of data used: EGAT, DEDE, IPCC Value applied: Justification of the As per Tool to calculate the emission factor for an electricity system (version choice of data or 01). description of measurement methods and procedures actually applied : Any comment: As per the guidance on completing SSC PDDs, data that is calculated with equations provided in the approved category and default value in the category is not provided above. Such data includes MCF ww,treatment,i, MCF ww,j, B O,ww, MCF ww,final, GWP_CH 4, DOC F, F, [CH 4 ] y,ww,treated, and CFE ww. B.6.3 Ex-ante calculation of emission reductions: Emission reduction associated with wastewater treatment Baseline emissions (BE y,ww ) As per equation 3 and input values listed in Table 5, baseline emissions associated with wastewater treatment are calculated as follows; 20

21 Year 1 BE ww y 14, , 4,912tCO / year Year 2-10 BE ww 2 y 86, , 28,948tCO / year Project emissions 2 (a) Project emissions from electricity or diesel consumption (PE y,power ) No electricity or diesel consumption is expected in the Project, and is not estimated ex-ante. However, any consumption will be monitored as it arises and calculated ex-post as per Equation 4 presented in Table 5. (b) Project emissions from degradable organic carbon in treated wastewater (PE y,ww,treated ) Project emissions from this source are estimated as per Equation 5 and input values in Table 5 as follows; Year 1 PE y ww treated 14, ,, 170tCO / year Year PE y ww treated 86, ,, 1,004tCO / year 2 (c) Project emissions from anaerobic decay of final sludge (PE y,s,final ) The sludge will be re-circulated to stabilize the digestion in early stage and only the sludge in excess amount will be given away for land application. As the sludge will decompose in aerobic conditions, there will be no methane emissions from the final sludge, however, as per the methodology, the end-use of the final sludge will be monitored during the crediting period. (d) Project emissions from methane release in capture and flare system (PE y,fugitive ) Project emissions from this source are estimated as per Equation 7 and input values provided in Table 5 as follows; 21

22 CDM Executive Board Year 1 PE y, fugitive Year 2-10 PE y, fugitive PE y, fugitive, ww 442tCO / year PE y, fugitive, ww 2,603tCO / year (1 0.9) 14, (1 0.9) 86, (e) Project emissions from dissolved methane in treated wastewater (PE y,dissolved ) Project emissions from this source are calculated in accordance with Equation 8 and input values provided in Table 5 as follows: Year 1 PE dissoleved y 14, , 31tCO / year Year 2-10 PE dissoleved 2 y 86, , 181tCO / year Leakage (LE y,ww ) 2 As stated in Section B.6.1., there is no leakage. Emission reduction (ER y,ww ) The emission reduction is calculated as per Equation 1: Year 1 ER y, ww BE Year 2-10 y, ww PE 4, y, ww LE 4,269tCO / year 2 y, ww 22

23 ER y, ww BE y, ww PE y, ww 28,948 3,789 LE 25,159tCO / year 2 y, ww Emission reduction associated with electricity displacement (ER y,power ) In accordance with Equation 9 and input values provided in Table 6, emission reductions for electricity displacement are estimated as follows; Year 1 ER power y 1, , 539tCO / year Year 2-10 ER power y 6, , 3,178 tco / year 2 2 B.6.4 Summary of the ex-ante estimation of emission reductions: Table 10: Ex-ante estimation of emission reduction Estimation of project activity Year emissions (tco 2 ) Estimation of baseline emissions (tco 2 ) Estimation of leakage (tco 2 ) Estimation of overall emission reductions (tco 2 ) , , ,789 32, , ,789 32, , ,789 32, , ,789 32, , ,789 32, , ,789 32, , ,789 32, , ,789 32, , ,789 32, ,337 Total 34, , ,841 B.7 Application of a monitoring methodology and description of the monitoring plan: B.7.1 Data and parameters monitored: 23

24 (Copy this table for each data and parameter) Data / Parameter: Q y,ww Data unit: m 3 /year Volume of wastewater in year y Source of data to be GG used: Value of data Year 1: 14,662 Year 2-10: 86,403 Description of Monitored continuously with a flow meter. measurement methods and procedures to be applied: QA/QC procedures to The flow meter will undergo maintenance / calibration in accordance with be applied: appropriate industry standards. Any comment: N/A Data / Parameter: COD y,untreated Data unit: tonnes/m 3 COD of the untreated water Source of data to be GG used: Value of data Description of Weekly sampling of the untreated effluent into the digester will be conducted. measurement methods and procedures to be applied: QA/QC procedures to be applied: Sampling and analysis will be carried out adhering to internationally recognized procedures. Any comment: N/A Data / Parameter: EG y,displaced Data unit: MWh/year Amount of electricity displaced by the project activity Source of data to be GG used: Value of data Year 1: 1,185 Year 2-10: 6,985 Description of Monitored continuously using electricity meters. measurement methods and procedures to be applied: QA/QC procedures to Electricity meters will undergo maintenance/calibration in accordance with be applied: appropriate industry standards. The consistency of the data will be verified through the actual sales records to PEA. Any comment: N/A 24

25 Data / Parameter: EG y,consumed Data unit: MWh/year Amount of electricity consumed by the project activity facilities in year y Source of data to be GG used: Value of data 0 Description of It is expected that the project activity does not involve any electricity measurement methods consumption, nevertheless this will be monitored continuously through and procedures to be electricity meters. Data will be kept electronically in a systematic and transparent applied: manner. QA/QC procedures to be applied: Any comment: The electricity meter will undergo maintenance / calibration in accordance with appropriate industry standards. The consistency of the data will be verified through the actual purchase records between GG and PEA. N/A Data / Parameter: COD y,ww,treated Data unit: tonnes/m 3 COD of the final treated wastewater discharged into sea, river or lake in year y Source of data to be GG used: Value of data Description of measurement methods Weekly sampling of the treated effluent exiting from the last pond will be conducted. and procedures to be applied: QA/QC procedures to be applied: Sampling and analysis will be carried out adhering to internationally recognized procedures. Any comment: N/A Data / Parameter: Data unit: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: S y,final tonnes/year Amount of final sludge generated by the wastewater treatment in year y GG N/A Weighed when the sludge is collected. In accordance with AMS-III.H., this term is neglected since the sludge will be given away for land application as discussed above. However, the final disposal of the sludge will be monitored during the crediting period and in the case of offsite disposal, the weighed tonnage can be compared against the records of waste contractor / end user. N/A DOC y,s,fimal 25

26 Data unit: tc/t sludge Degradable organic content of final sludge generated by the wastewater treatment in the year y Source of data to be AMS-III.H. used: Value of data 0.09 Description of This parameter will be monitored when sludge is not given away for land measurement methods application but is disposed on-site, or if the end use cannot be monitored. and procedures to be applied: QA/QC procedures to N/A be applied: Any comment: N/A Data / Parameter: Data unit: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: MCF s,final Fraction Methane correction factor of the landfill that received the final sludge in the year y AMS-III.G / Methane tool N/A If the end-use of the final sludge is found to be disposal in a landfill during the monitoring period, the value for MCF will be derived from the Tool to determine methane emissions avoided from dumping waste at a solid waste disposal site, depending on the type of disposal site. N/A N/A Data / Parameter: COD y,removed, j Data unit: tonnes/m 3 COD removed by the wastewater treatment system equipped with methane recovery in the year y Source of data to be Obtained as difference between COD y,untreated and COD y,treated used: Value of data Description of - measurement methods and procedures to be applied: QA/QC procedures to - be applied: Any comment: N/A Data / Parameter: Biogas sent to flares (V res ) Data unit: Nm 3 biogas Surplus biogas sent to flare system 26

27 Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Directly measured by GG N/A this parameter is not relevant for the purpose of the ex-ante calculation Measured continuously by flow meters Flow meters will undergo maintenance / calibration subject to appropriate industry standards N/A Data / Parameter: Methane concentration in biogas Data unit: % Methane concentration in biogas Source of data to be Directly measured by GG used: Value of data 70 Description of Measured continuously by continuous gas analyzer measurement methods and procedures to be applied: QA/QC procedures to be applied: The gas analyzer will undergo maintenance / calibration in accordance with appropriate industry standards. Any comment: N/A Data / Parameter: fv i,h Data unit: - Volumetric fraction of component i in the residual gas in the hour h where i = CH 4, CO, CO 2, O 2, H 2, N 2 Source of data to be Directly measured by GG used: Value of data CH 4 : 70% CO: % CO 2 : % O 2 : % H 2 : % N 2 : 30% Description of For this parameter, monitored value for methane concentration in biogas will be measurement methods applied since the monitored value at the digester outlet and inlet of flaring and procedures to be system remains unchanged. As a simplified approach, project participants only applied: measures the methane content of the residual gas and considers the remaining part as N 2. QA/QC procedures to The gas analyzer will undergo maintenance / calibration in accordance with be applied: appropriate industry standards.. Any comment: N/A Data / Parameter: FV RG,h 27

28 Data unit: m 3 /h Volumetric flow rate of the residual gas in dry basis at normal conditions in the hour h Source of data to be Directly measured by GG used: Value of data N/A this parameter is not relevant for the purpose of the ex-ante calculation Description of This parameter will be monitored continuously and values will be averaged measurement methods hourly. The same basis (dry or wet) will be considered for this measurement and and procedures to be the measurement of volumetric fraction of all components in the residual gas applied: (fv i,h ) when the residual gas temperature exceeds 60. QA/QC procedures to Flow meters are to be periodically calibrated according to the manufacturer s be applied: recommendation. Used for the calculation of TM RG,h. Any comment: N/A Data / Parameter: T flare Data unit: Temperature in the exhaust gas of the flare Source of data to be Directly measured by GG used: Value of data N/A this parameter is not relevant for the purpose of the ex-ante calculation Description of measurement methods and procedures to be applied: This parameter will be monitored continuously. Temperature of the exhaust gas stream in the flare will be measured by a Type N thermocouple. A temperature above 500 indicates that a significant portion of the gas is being combusted and that the flare is operating. QA/QC procedures to Thermocouples will be replaced or calibrated every year. be applied: Any comment: N/A B.7.2 Description of the monitoring plan: All monitoring equipment will be installed by experts and regularly calibrated to the highest standards by GG. GG will form a team to maintain and operate the project activity and monitor parameters required by the methodology. Staff will be trained in the operation of all monitoring equipment and all readings will be taken in a systematic and transparent manner under the supervision of management. Quality control and assurance procedures are to be undertaken for data monitored as outlined in the monitoring plan, which will be developed. A database will be maintained to record all relevant data as in the monitoring plan. The monitoring team will consist of a plant manager, a production/biogas plan supervisor, a gen. set plant supervisor and operational staff. The team will review the data archived and submit a complete set of documentation, which indicates the calculation procedure as well as an ex-post emission reduction estimate, to the general manager regularly. In addition to internal verification by the general manager, this properly recorded documentation will also be verified externally by an independent Designated Operational Entity (DOE) on an annual basis. B.8 Date of completion of the application of the baseline and monitoring methodology and the name of the responsible person(s)/entity(ies) 28

29 The baseline and monitoring study was completed in December 2007 by MUS. Clean Energy Finance Committee Mitsubishi UFJ Securities Co., Ltd. (MUS) Phone: SECTION C. Duration of the project activity / crediting period C.1 Duration of the project activity: June years C.1.1. Starting date of the project activity: C.1.2. Expected operational lifetime of the project activity: C.2 Choice of the crediting period and related information: C.2.1. Renewable crediting period C Starting date of the first crediting period: N/A >> C Length of the first crediting period: C.2.2. Fixed crediting period: C Starting date: 01/10/2008 or the date of registration whichever is later. C Length: 10 years 3 Start of civil engineering at the project site 29

30 SECTION D. Environmental impacts D.1. If required by the host Party, documentation on the analysis of the environmental impacts of the project activity: Thailand s Designated National Authority (DNA) requires an Initial Environmental Evaluation (IEE) in order to grant its approval to CDM projects. To this end an IEE of the project activity is currently underway and will be submitted to the DNA along with this PDD. Thai law does not require an Environmental Impact Assessment (EIA) for operations in the palm oil industry. However, the expected environmental impact of the project activity was considered thoroughly prior to the project implementation. It is found that the project activity in fact has rather positive impact to the neighboring environment as well as to the overall health of the neighboring residents. As the result of the project activity, an advanced wastewater treatment technology is introduced. Water quality flowing into the existing lagoons is improved significantly and the risk of pathogenic organisms proliferating in the water body is significantly reduced. Moreover, strong odor resulting from decomposition of organic materials in the wastewater will be minimized. 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: As described above, no significant adverse environmental impacts are expected to result from the project activity. SECTION E. Stakeholders comments >> E.1. Brief description how comments by local stakeholders have been invited and compiled: GG organized a stakeholder consultation meeting for the Project on March 14, Prior to the meeting a questionnaire was distributed to the local community members along with the information on the project s renewable energy based technologies. Questionnaire survey results show that a majority of the respondents believe that the Project would help reduce odor nuisance, create a new power source and increase the land value. At the stakeholder consultation, results of the questionnaire survey were presented and discussed with 19 participants from the government, local organizations and community. Issues discussed at the meetings were as follows: 1. Brief explanation about the Project including economic, technical and environmental benefits; 2. Explanation of how the Project will mitigate climate change concerns; and 3. Stakeholders concerns revealed from the questionnaire survey 30

31 E.2. Summary of the comments received: During the meeting, local stakeholders raised various questions pertaining to the Project and requested further explanation on both the negative and positive concerns. Their concerns have been specified in the following areas: 1. Strong odor from the open lagoons 2. Safety 3. Noise and nuisance pollution 4. Wastes generated from the Project E.3. Report on how due account was taken of any comments received: Due account was taken of all comments and GG provided detailed explanation of all issues raised during the meeting. 1. Strong odor from the open lagoons A closed system with gas-upgrading system and gas utilization unit will help reduce odor and nuisance. Almost no leakage is expected from the biogas digester to be installed. 2. Safety GG will follow the standard set by Environment Authorities in Thailand. GG will install foolproof safety systems and full-scale fire prevention measures with water reservoir as well as emergency plan and training. GG will form a Safety Department and Environmental Management Body to inspect the safety and environmental aspects of the Project. 3. Noise and nuisance pollution GG will install dust control apparatus for exhaust gas. GG will provide adequate silencers as per the limit set by Occupational Safety and Health Administration Control. 4. Wastes generated from the Project Treated wastewater and sludge will be stored in the conservation ponds and will later be used as fertilizer and land application. No discharge into the local channel. At the end of the session, all of the participants expressed their support for the Project s implementation. 31