Draft revision to the approved baseline and monitoring methodology AM0038

Transcription

1 Draft revisio to the approved baselie ad moitorig methodology AM0038 Methodology for improved electrical eergy efficiecy of a existig submerged electric arc furace used for the productio of silico ad ferro alloys SiM I. SOURCE AND APPLICABILITY Source This baselie ad moitorig methodology is based o the followig proposed ew methodology: NM0146 Baselie methodology for improved electrical eergy efficiecy of a existig submerged electric arc furace used for the productio of Alloy SiM. submitted by Trasalloys Divisio of the Highveld Steel ad Vaadium Corporatio Ltd. This methodology also refers to the latest approved versios of the followig tools: Tool to calculate the emissio factor for a electricity system, to calculate the grid emissio factor; Tool to determie the remaiig lifetime of equipmet. For more iformatio regardig the proposed ew methodologies ad the tools as well as their cosideratio by the Executive Board please refer to < Baselie Approach Selected from Paragraph 48 of the CDM Modalities ad Procedures Existig actual or historical emissios, as applicable. Applicability This methodology is applicable if the followig coditios are met: Submerged electrical arc furaces is are used for productio of silicomagaese (SiM)the same type of product Alloy both i the project case ad baselie; The alloy(s) produced i the electric arc furace is ferrosilico, ferromagaese, silicomagaese, silico metal or ferrochrome; The electricity cosumed both i the project case ad the baselie, by the submerged electric arc furace is sourced from the grid ad ot by o-site geeratio. The geographic ad system boudaries for the relevat electricity grid ca be clearly idetified ad iformatio o the characteristics of the grid is available; The quality 1 of the raw material ad SiM products Alloy produced is ot affected by the project activity ad remais uchaged; The local regulatios/programs do ot cap the level of grid electricity that ca be procured by the SiM productio facility where the project activity is implemeted; Data for at leastthe most recet three years precedig the implemetig the implemetatio of the project activity is available to estimate the baselie emissios. 1 Quality is defied as remaiig the same if the compositio (elemetary aalysis) remais i the same rage. 1/24

2 Emissio reductio credits shall be claimed oly util the ed of the lifetime of the equipmet, as determied usig the Tool to determie the remaiig lifetime of equipmet ; The project activity does ot result i a icrease of i the productio capacity of the SiM productio facility, where the project is implemeted, durig the creditig period. The followig approaches should be take ito accout to estimate the remaiig lifetime of the existig equipmet or its parts: (a) The typical average techical lifetime of the equipmet, takig ito accout commo practices i the sector, e.g., based o idustry surveys, statistics, techical literature, etc. (b) The practices regardig replacemet schedules, e.g. based o historical replacemet records for similar equipmet. The lifetime of the equipmet will be documeted ad validated by the DOE. The remaiig lifetime of the existig equipmet should be chose i coservative maer, i.e., the smallest value of remaiig lifetime should be chose i cases where the life time estimated as a time rage rather tha sigle value. If the project activity is implemeted i a umber of electric arc furaces, which produce SiM the alloy, as part of a program, the methodology is applicable to the program as a whole. However all of the requiremets (baselie determiatio, additioality, etc.) shall be applied to ad should be fulfilled by each idividual electric arc furace covered uder the program. II. BASELINE METHODOLOGY Project Boudary The project boudary comprises of the followig two compoets: The electricity grid from which the electricity used i the project activity is purchased, as defied i the latest versio of Tool to calculate emissio factor for a electricity system ; The physical structure of the submerged electric arc furace, as described i figure below (Figure 1). 2/24

3 Or e Fl ux es Re du ct a ts Electrode paste Grid electricity Exhaust to Filter plat Project boudary Waste slag to dump SiM castig SiM trasport to customers Figure 1: Spatial extet of the project boudary (excludig the grid geeratio capacity accordig to the latest versio of Tool to calculate emissio factor for a electricity system ) Figure 1: Spatial extet of the project boudary (excludig the grid geeratio capacity accordig to the latest versio of Tool to calculate emissio factor for a electricity system ). Emissios sources The emissios sources icluded i the project boudary are defied i the table 1 below. Figure 1: Spatial extet of the project boudary (excludig the grid geeratio capacity accordig to the latest versio of Tool to calculate emissio factor for a electricity system ) 3/24

4 Emissios sources The emissios sources icluded i the project boudary are defied i table 1 below. Table 1: Emissios sources icluded i or excluded from the project boudary Baselie Project Activity Source Gas Icluded? Justificatio / Explaatio CO 2 Icluded! Oly CO 2 emissios associated with the Grid electricity geeratio Emissios from the cosumptio of reductats electricity cosumptio of the submerged arc electric furace; based o most recet 3 year historic data CH 4 Excluded N 2 O Excluded CO 2 Icluded! Although some part of the carbo will ed up i the ed product it is assumed that 100% will be emitted to the air via the exhaust gases. Carbo cotet is measuredbased o the most recet 3 year historic average reductat cosumptio CH 4 Excluded! No CH 4 emissios N 2 O Excluded! N 2 O emissios are excluded for simplificatio a CO 2 Icluded! Based o the most recet 3 year historic average electrode paste cosumptio CH 4 Excluded! No CH 4 emissios Emissios from the cosumptio of electrode paste N 2 O Excluded! N 2 O emissios are excluded for simplificatio a Grid electricity geeratio Emissios from the cosumptio of reductats CO 2 Icluded! Oly CO 2 emissios associated with the utilisatio of the submerged arc electric furace will be couted;! The combied margi method as described i the latest versio of Tool to calculate emissio factor for a electricity system should be used CH 4 Excluded N 2 O Excluded CO 2 Icluded! Although some part of the carbo will ed up i the ed product it is assumed that 100% will be emitted to the air via the exhaust gases. Reductio cosumptio is moitored durig project CH 4 Excluded! No CH 4 emissios N 2 O Excluded! N 2 O emissios are excluded for simplificatio a CO 2 Icluded! Electrode paste cosumptio is moitored Emissios from durig the project the CH 4 Excluded! No CH 4 emissios cosumptio of electrode paste N 2 O Excluded! N 2 O emissios are excluded for simplificatio a Note a : N 2 O emissios are excluded for simplificatio. 4/24

5 Idetificatio of baselie sceario The baselie sceario shall be determied usig the followig steps: Step 1: Idetify techically feasible optios to icrease eergy efficiecy withi the project boudary The project propoet shall cosider at least the followig baselie alteratives: (a) Complete replacemet of furace; (b) Cotiued use of istalled furace techology; (c) The project activity, istallatio of ew-build desig, ot implemeted as a CDM project; (d) All other plausible ad credible alteratives to the project activity that provide eergy efficiecy improvemet to the furace which are techically feasible to implemet with comparable quality, properties ad applicatio areas. Step 2: Idetify baselie alteratives that do ot comply with legal or regulatory requiremets The project propoet shall cosider the followig: Idetify all the legal or regulatory requiremets that may ifluece the choice of baselie optios ad evidece should be provided that all such requiremets have bee documeted; The baselie alterative should also be evaluated i the cotext of sector treds, ad icorporate the effects of ay legislatio ad govermet policies that may affect this tred. For example, if eergy efficiecy stadards are beig itroduced by the atioal govermet, they should be icorporated i the available baselie alterative. If a baselie alterative does ot comply with all applicable legislatio ad regulatios, the show that, based o a examiatio of curret practice i the coutry or regio i which the law or regulatio applies, those applicable legal or regulatory requiremets are systematically ot eforced ad that o-compliace with those requiremets is widespread i the coutry. If this caot be show, the elimiate the baselie alterative from further cosideratio. Step 3: Elimiate baselie alteratives that face prohibitive barriers Scearios that face prohibitive barriers should be elimiated by applyig step 3 of the latest versio of the Tool for demostratio ad assessmet of additioality agreed by the CDM Executive Board. Establish a complete list of barriers that would prevet baselie alteratives to occur i the absece of the CDM. Sice the proposed project activity ot beig registered as a CDM project activity shall be oe of the cosidered baselie alteratives, ay barrier that may prevet the project activity to occur shall be icluded i that list. Show which baselie alteratives are preveted by at least oe of the barriers previously idetified ad elimiate those alteratives from further cosideratio. All alteratives shall be evaluated for a commo set of barriers. If there is oly oe baselie alterative that is ot preveted by ay barrier the this alterative is idetified as the baselie sceario. Where more tha oe baselie alteratives remais, project participats shall, as a coservative assumptio, use the alterative baselie sceario that results i the lowest baselie emissios as the most likely baselie sceario, or coduct a ivestmet aalysis (Step 4). 5/24

6 Step 4: Compare ecoomic attractiveess of the remaiig alteratives The et preset value (NPV) aalysis shall be used to compare the ecoomic attractiveess, without reveues from CERs, for all baselie alteratives that are remaiig after step 3. Explicitly state the followig parameters: Ivestmet requiremets (icl. break-up ito major equipmet cost, required costructio work, istallatio); A discout rate appropriate to the coutry ad sector (Use govermet bod rates, icreased by a suitable risk premium to reflect private ivestmet i the specific project type, as substatiated by a idepedet (fiacial) expert); Curret price ad expected future price (variable costs) of eergy, raw materials ad other products (Note: As a default assumptio the curret prices may be assumed as future prices. Where project participats ited to use future prices that are differet from curret prices, the future prices have to be substatiated by a public ad official publicatio from a govermetal body or a itergovermetal istitutio); Other operatig costs for each alterative; Lifetime of the project, equal to the remaiig lifetime of the existig facility; ad Other operatio ad maiteace costs. The NPV calculatio should take ito accout the residual value of the ew equipmet at the ed of the lifetime of the project activity. 2 The iformatio o all the above factors as well as assumptios shall be explicitly stated i the CDM-PDD. Compare the NPV of the differet baselie alteratives ad select the most cost-effective alterative (i.e. with the highest NPV) as the baselie sceario. Iclude a sesitivity aalysis applyig Sub-step 2d of the latest versio of the Tool for demostratio assessmet ad of additioality agreed by the CDM Executive Board. The most cost-effective sceario is the baselie sceario if the sesitivity aalysis cosistetly supports (for a realistic rage of assumptios) this coclusio. I case the sesitivity aalysis is ot fully coclusive, select the baselie sceario alterative with least emissios amog the alteratives that are the most ecoomically attractive accordig to the ivestmet aalysis ad the sesitivity aalysis. This methodology is oly applicable if the cotiuatio of use of istalled furace techology throughout the creditig period is the most plausible baselie sceario. Additioality The assessmet of additioality comprises of three steps: Step 1: Ivestmet & sesitivity aalysis Demostrate that the project activity udertake without the CDM is ecoomically less attractive tha the most plausible baselie sceario, by followig the istructios give i step 4 of the chapter Idetificatio of the baselie sceario above. Iclude a sesitivity aalysis applyig Sub-step 2d of the latest versio of the Tool for demostratio assessmet ad of additioality as agreed by the 2 Note that NPV values may be egative. 6/24

7 CDM Executive Board. The ivestmet aalysis provides a valid argumet i favour of additioality oly if it cosistetly supports (for a realistic rage of assumptios) the coclusio that the project activity is ulikely to be the most fiacially attractive. Step 2: Commo practice aalysis Demostrate that the project activity is ot a commo practice i the coutry ad sector by applyig Step 4 of the latest versio of the Tool for demostratio assessmet ad of additioality as agreed by the CDM Executive Board. Step 3: Impact of CDM registratio Describe the impact of the registratio of the project activity by applyig Step 5 of the latest versio of the Tool for demostratio assessmet ad of additioality as agreed by the CDM Executive Board. If all 3 steps are satisfied, the the project is cosidered additioal. Baselie Emissios Emissios associated with SiMalloy productio i the baselie sceario are determied as follows: 3 Note: Subscript y idicates years durig the creditig period ad subscript i is used for years precedig the start of the project activity. BE = BE + BE (1) y y,offsite y, osite Where: BE y = Baselie emissios (tco 2 e i year y) BE y,off-site = Off-site baselie (grid) electricity emissios associated with the electricity cosumptio of the submerged arc furace (tco 2 e i year y) BE y, o-site = O-site baselie emissios associated with the cosumptio of Reductat (Coal ad Coke) ad electrode paste durig the productio of SiMthe alloy (tco 2 e i year y) Off-site baselie emissios are calculated accordig to: BE y, offsite = QP sec EF (2) y, max b y, offsite Where: BE y, off-site = Off-site baselie (grid) electricity emissios associated with the electricity cosumptio of the submerged arc furace (tco 2 e i year y) QP y, max = Value of SiMalloy productio i year y (tsimt alloy/y) as estimated usig equatio 3. This value is used i both the baselie ad the project emissio calculatios sec b = Historic (at least a three year vitage period) average grid specific electricity cosumptio per toe of SiMalloy produced i the baselie situatio (MWh/tSiMt alloy) EF y, off-site = Grid electricity emissios factor, estimated usig the latest versio of the Tool to calculate emissio factor for a electricity system (tco 2 e/mwh) 7/24

8 The SiMalloy productio is limited to a historic average level as follows: m QPy, max = mi of (QPy, moitored, QPhistoric) (3) Where: QP y, max = Value of SiMalloy productio used for estimatig baselie ad project emissios for year y (tsimt alloy/y) QP y, moitored = Moitored productio of SiMalloy i year y durig the project activity (tsimt alloy /y) QP historic = Historic (at least a three year vitage period) average aual productio of SiMalloy (tsimt alloy /y) The historic average productio of SiMalloy is calculated accordig to: QP historic i= = 1 QP i (4) Where: QP historic = Historic (at least a three year vitage period) average aual quatity of SiMalloy productio (tsimt alloy /y) QP i = Aual SiMalloy productio for the i th years precedig the project activity (tsimt alloy) = Number, at least three years, of historic year data used for estimatig historic aual average productio The average electricity cosumptio per toe of SiMalloy produced i the baselie situatio is calculated as follows: s ec historic i= 1 = i= 1 EC QP i i (5) Where: Sec historic = Historic (at least a three year vitage period) average grid specific electricity cosumptio per toe of SiMalloy produced i the baselie situatio (MWh/ tsimt alloy) QP i = Aual SiMalloy productio for the at least three years precedig the project activity (tsimt alloy produced i year i) EC i = Aual grid electricity cosumptio by the submerged electric arc furace for the at least three years precedig the project activity (MWh cosumed i year i) The o-site emissios are calculated usig the followig equatios: BE y, osite QPy, max EFb, osite = (6) 8/24

9 Where: BE y, o-site = O-site baselie emissios associated with the cosumptio of reductat (Coal ad Coke) ad electrode paste i the productio of SiMalloy (tco 2 e i year y) QP y, max = Value of SiMalloy productio used for estimatig baselie ad project emissios for year y (tsimt alloy /y) EF b, o-site = Baselie emissio factor associated with the (o-site) cosumptio of reductat (Coal ad Coke) ad electrode paste i the productio of per toe of SiMalloy (tco 2 e/ tsimt alloy). The average o-site emissios are based o historic (at least a three year vitage period) average aual cosumptio as calculated i equatio 7 The o-site emissio factor is determied as follows: EF EF b, osite b, osite Where: EF b, o-site Q bcoal, i EF bcoal Q bcoke, i EF bcoke Q bcoal,i bcoal bcoke,i i = 1 i = 1 = Q + + Q i = 1 QP i bcoke + i = 1 bcoal,i bcoal bcoke,i bcoke i = 1 i = 1 i = 1 = Q + i = 1 Q Q QP bpaste,i bpaste,i i bpaste bpaste + i = 1 Q breductother,i breductother = Baselie emissio factor associated with the (o-site) cosumptio of reductat (Coal ad Coke) ad electrode paste i the productio of per toe of SiMalloy (tco 2 e/ tsimt alloy). The average o-site emissios are based o historic (at least a three year vitage period) = Average historic (most recet three yearsat least a three year vitage period (i)) aual cosumptio of coal used as reductat i the submerged electric arc furace i toes of coal per year (tcoal cosumed i year i). This value shall be take ito accout whe assessig the overall ucertaity for o-site emissios usig project specific values = Emissios factor applied for the coal cosumed as reductat. This factor ca be calculated o a project specific basis or a default IPCC value ca be applied. If project specific values are used this factor shall be take ito accout whe assessig the overall ucertaity for o-site emissios. If IPCC values are used the coservative ed of the ucertaity rage shall be applied = Average historic (most recet three yearsat least a three year vitage period) aual cosumptio of coke used as reductat i the submerged electric arc furace i toes of coke per year (tcoke cosumed i year i). This value shall be take ito accout whe assessig the overall ucertaity for o-site emissios usig project specific values = Emissios factor applied for the coke cosumed as reductat. This factor ca be calculated o a project specific basis or a default IPCC value ca be applied. If project specific values are used this factor shall be take ito accout whe assessig the overall ucertaity for o-site emissios. If IPCC values are used, the coservative ed of the ucertaity rage shall be applied (7) 9/24

10 Q bpaste, i EF bpaste Q breductother, i EF breductother = Average historic (most recet three yearsat least a three year vitage period) aual cosumptio of electrode paste used as Electrode i the submerged electric arc furace i toes of electrode paste per year (t paste cosumed i year i). This value shall be take ito accout whe assessig the overall ucertaity for o-site emissios usig project specific values = Emissios factor applied for the electrode paste cosumed as electrode, usig the relevat emissios factor (tco 2 ) for the carbo paste as specified by the maufacturer applicable for the vitage period. If maufacturer s specificatios are used, the lower value of the ucertaity rage provided by the maufacturer will have to be adopted. Alteratively, a coservative but ot real default factor of 0 tco 2 /t of Carbo paste ca be used (based o the assumptio that the paste is 0% carbo) = Average historic (most recet three years) aual cosumptio of other materials used as reductat i the submerged electric arc furace i toes of reductat per year (t Other Reductat cosumed i year i). This value shall be take ito accout whe assessig the overall ucertaity for o-site emissios usig project specific values = Emissios factor applied for the other materials cosumed as reductats. This factor ca be calculated o a project specific basis or a default IPCC value ca be applied. If project specific values are used, this factor shall be take ito accout whe assessig the overall ucertaity for o-site emissios. If IPCC values are used the coservative ed of the ucertaity rage shall be applied Whe IPCC values are used to determie the emissio factors for calculatig o-site emissios, a ucertaity coefficiet shall be defied based o the most recet versio of the IPCC guidelies o Natioal Greehouse Gas Ivetories ad the most recet coutry specific iformatio reported o the basis thereof. 4 Where project specific values are used, the overall ucertaity of the o-site emissios will be assessed based o the measuremets of activity data ad emissio factors. The ucertaity will be assessed i lie with the Europea Commissio guidelies o moitorig ad reportig of GHG emissios i iro ad steel productio ad take ito accout whe calculatig the o-site emissios. 5 If charcoal is used as a reductat istead of coal, oly the o-site emissios of the charcoal will be take ito accout. Ay offset of emissios due to replacig coal by reewable reductats will ot be take ito accout uder this methodology as it cocers a chage of fossil to reewable cosumables which does ot fit ito the scope of improved electrical efficiecy. Project Emissios Estimates of the emissios associated with SiMalloy productio i the project sceario are determied as follows: PE = PE (offsite) PE (osite) (8) y y + y 4 Latest versio of IPCC Guidelies for Natioal Greehouse Gas Ivetories: Reportig Istructios. 5 Commissio Decisio of 29 Jauary 2004 establishig guidelies for the moitorig ad reportig of greehouse gas emissios pursuat to Directive 2003/87/EC of the Europea Parliamet ad of the Coucil. 10/24

11 Where: PE y PE y (off-site) PE y (o-site) = Project emissios i year y = Off-site project (grid) electricity emissios associated with the electricity cosumptio of the submerged arc furace (tco 2 e i year y) = O-site project emissios associated with the cosumptio of reductat (Coal ad Coke) ad electrode paste durig the productio of SiMalloy (tco 2 e i year y) Off-site emissios i the project sceario are determied accordig to: PE y (off-site) = QP y, max * sec p, y y (off-site) (9) Where: QP y, max = Value of SiMalloy productio used for estimatig baselie ad project emissios for year y (tsimt alloy /y), estimated usig equatio 3 i the baselie emissio sectio PE y (off-site) = Off-site project (grid) electricity emissios associated with the electricity cosumptio of the submerged arc furace (tco 2 e i year y) sec p, y = Grid specific electricity cosumptio per toe of SiMalloy produced i the project situatio (MWh/ tsimt alloy) i year y EF y (off-site) = Grid electricity emissios factor (tco 2 e/mwh) estimated by usig the latest versio of Tool to calculate emissio factor for a electricity system The average electricity cosumptio per toe of SiMalloy produced i the project situatio is calculated as follows: sec p, y = EC y / QP y, moitored (10) Where: sec p, y EC y = Grid specific electricity cosumptio per toe of SiMalloy produced i the project situatio (MWh/ tsimt alloy) i year y = Aual grid electricity cosumptio by the submerged electric arc furace i year y (MWh/y) The o-site emissios for the project sceario are calculated usig the followig equatios: PE y (o-site) = QP y, max x EF p, y (o-site) (11) Where: PE y (o-site) QP y, max = O-site project emissios associated with the cosumptio of reductat (Coal ad Coke) ad electrode paste durig the productio of SiMalloy (tco 2 e i year y) = Value of SiMalloy productio used for estimatig baselie ad project emissios for year y (tsimt alloy /y) EF p, y (o-site) = Project emissio factor associated with the (o-site) average cosumptio of reductat (Coal ad Coke) ad electrode paste durig the productio per to SiMalloy i year y (tco 2 e/ tsimt alloy) as calculated i equatio 12 The o-site emissio factor i the project sceario are calculated as follows: EF p, osite Q = pcoal,i pcoal + Q pcoke,i QP y pcoke + Q ppaste,i ppaste 11/24

12 EF p, y, osite Where: EF p, y(o-site) Q pcoal, y EF pcoal,y Q pcoke, y EF pcoke,y Q ppaste, y EF ppaste,y QP y moitored Q breductother,y EF breductother,y Q = pcoal,y pcoal, y + Q pcoke,y pcoke, y + Q ppaste,y QP y ppaste, y + i = 1 Q breductother,i,y = Project emissio factor associated with the (o-site) average cosumptio of reductat (Coal ad Coke) ad electrode paste i the productio per to SiMalloy i year y (tco 2 e/ tsimt alloy) as calculated i equatio 12 = Cosumptio of coal used as reductat i the submerged electric arc furace i toes of coal per year (tcoal/y). This value shall be take ito accout whe assessig the overall ucertaity for o-site emissios usig project specific values = Emissios factor applied for the coal cosumed as reductat. This factor ca be calculated o a project specific basis or a default IPCC value ca be applied. If project specific values are used this factor shall be take ito accout whe assessig the overall ucertaity for o-site emissios. If IPCC values are used the coservative ed of the ucertaity rage shall be applied = Cosumptio of coke used as reductat i the submerged electric arc furace i toes of coke per year (tcoke/y). This value shall be take ito accout whe assessig the overall ucertaity for o-site emissios usig project specific values = Emissios factor applied for the coke cosumed as reductat. This factor ca be calculated o a project specific basis or a default IPCC value ca be applied. If project specific values are used this factor shall be take ito accout whe assessig the overall ucertaity for o-site emissios. If IPCC values are used the coservative ed of the ucertaity rage shall be applied = Cosumptio of electrode paste used as electrode i the submerged electric arc furace i toes of electrode paste per year (tpaste/y). This value shall be take ito accout whe assessig the overall ucertaity for o-site emissios usig project specific values = Emissios factor applied for the electrode paste cosumed as electrode, usig the relevat emissios factor (tco 2 ) for the carbo paste as specified by the maufacturer i year y. If maufacturer s specificatios are used, the lower value of the ucertaity rage provided by the maufacturer will have to be adopted. Alteratively, a default factor of 3.67 tco 2 /t of carbo paste ca be take (based o the assumptio that the paste is 100% carbo which is the same as 44/12 tco 2 eq) = Quatity of SiMalloy productio i year y durig the project activity (tsimt alloy /y) = Cosumptio of other materials used as a reductat i the submerged electric arc furace i toes of reductat per year. This value shall be take ito accout whe assessig the overall ucertaity for o-site emissios usig project specific values = Emissio factor applied for the other materials cosumed as reductats. This factor ca be calculated o a project specific basis or a default IPCC value ca be applied. If project specific values are used this factor shall be take ito accout whe assessig the overall ucertaity for o-site emissios. If IPCC values are used the coservative ed of the ucertaity rage shall be applied breductother, i, y (12) 12/24

13 Whe IPCC values are used to determie the emissio factors for calculatig o-site emissios a ucertaity coefficiet shall be defied based o the most recet versio of the IPCC guidelies o Natioal Greehouse Gas Ivetories ad the most recet coutry specific iformatio reported o the basis thereof. 6 Where project specific values are used the overall ucertaity of the o-site emissios will be assessed based o the measuremets of activity data ad emissio factors. The ucertaity will be assessed i lie with the EC guidelies o moitorig ad reportig of GHG emissios i iro ad steel productio ad take ito accout whe calculatig the o-site emissios. 7 Leakage The methodology does ot aticipate ay other measurable forms of leakage attributable to the project activity. This assumptio should be verified whe a project is developed. to validate this assumptio The leakages metioed i the Tool to calculate the emissio factor for a electricity system too shall be assessed. A project activity is likely to result i a decrease i emissios outside the project boudary ad these, which will ot be take ito accout i the calculatio. This The decrease may occur due to followig reasos: The project activity will improve the SiM recovery efficiecy of alloy productio from the Magaese orerelevat raw materials ad cosequetly reduce the rate of depletio of thisthese oreewable magaese ore resourceresources. Cosequetly this reduces the athropogeic GHG emissios associated with the activities upstream of the SiMalloy productio process. The emissios associated with a reductio i the miig of oreextractio of raw materials ad the reduced trasport of orematerials to the SiMalloy plat occur outside the project boudary thusad therefore, it caot be cosidered as a compoet of emissios reductio. I additio the above-metioed icrease i SiM recoverythe efficiecy of alloy productio, the project will result i the productio of less slag i relatio to the same amout of SiMalloy produced. 8 The dowstream athropogeic GHG emissios associated with the hadlig of this slag (e.g. crushig ad trasportatio to the dump) will be reduced as a result. These emissios occur outside the boudary ad hece, caot be cosidered as a compoet of emissios reductio. Emissio reductios The emissio reductios (ER y ) of the project activity durig a give year y is the differece betwee the baselie, project emissios ad emissios due to leakage, as expressed i the formula equatio below: ER y = BE y PE y L y (13) Where : ER y BE y PE y L y = Emissios Reductios (t CO 2 e) i year y = Emissios i the baselie sceario (t CO 2 e) i year y = Emissios i the project sceario (t CO 2 e) i year y = Leakage (t CO 2 e) i year y 6 Latest versio of IPCC Guidelies for Natioal Greehouse Gas Ivetories: Reportig Istructios 7 Commissio Decisio of 29 Jauary 2004 establishig guidelies for the moitorig ad reportig of greehouse gas emissios pursuat to Directive 2003/87/EC of the Europea Parliamet ad of the Coucil 8 These reductios may ot occur i processes that do ot produce slag as a by-product. 13/24

14 Data ad Parameters ot moitored QP i Toes of SiMalloy /year Aual SiMalloy productio for years precedig the project activity, at least three years The aual SiMalloy productio for years precedig the project activity will be recorded at the start of the project activity ad is used to calculate QP historic Historic calibratio ad maiteace reports may serve to demostrate QA/QC procedures ad access ucertaities EC i MWh/year Aual grid electricity cosumptio by the submerged electric arc furace for years precedig the project implemetatio, at least three years data should be used. The aual electricity cosumptio for at least three years precedig the project activity will be recorded at the start of the project activity This data will be double checked with bills from grid operator to esure cosistecy. Electricity meter historic calibratio ad maiteace reports may serve to demostrate QA/QC procedures ad access ucertaities Q bcoal, I Toes of coal/year Historic aual cosumptio of coal used as reductat i the submerged electric arc furace The aual coal cosumptio for at least three years precedig the project activity will be recorded at the start of the project activity Load cells historic calibratio ad maiteace reports may serve to demostrate QA/QC procedures ad access ucertaities Q bcoke, I Toes of coke/year Historic aual cosumptio of coke used as reductat i the submerged electric arc furace The aual coke cosumptio for at least three years precedig the project activity will be recorded at the start of the project activity 14/24

15 Load cells historic calibratio ad maiteace reports may serve to demostrate QA/QC procedures ad access ucertaities Q bpaste, I Toes of paste/year Historic aual cosumptio of electrode paste used as electrode i the submerged electric arc furace The aual paste cosumptio for at least three years precedig the project activity will be recorded at the start of the project activity Load cells historic calibratio ad maiteace reports may serve to demostrate QA/QC procedures ad access ucertaities Q breductother, I Toes of reductat/year Historic aual cosumptio of other materials used as reductat i the submerged electric arc furace The aual other reductat cosumptio for most recet three years precedig the project activity will be recorded at the start of the project activity Load cells historic calibratio ad maiteace reports may serve to demostrate QA/QC procedures ad access ucertaities EF bcoal tco 2 / t coal Emissio factor applied for the coal cosumed as reductat based o carbo cotet Carbo cotet furished by the supplier or idepedet laboratory or IPCC values Historic laboratory reports A estimated project-specific value for three years precedig the project activity is preferred to IPCC value. 15/24

16 EF bcoke tco 2 / t coke Emissio factor applied for the coke cosumed as reductat based o carbo cotet Carbo cotet furished by the supplier or idepedet laboratory or IPCC values A estimated project-specific value for three years precedig the project activity is preferred to IPCC value EF bpaste tco 2 / t of carbo paste Emissio factor applied for the electrode paste cosumed as electrode based o carbo cotet Carbo cotet furished by the supplier or idepedet laboratory or IPCC values Based o the maufacturer s specificatios for the paste used i the three years precedig the project activity, a value will be determied. Alteratively, a factor of 0 tco 2 / t of carbo paste ca be applied oly for the baselie EF breductother tco 2 / t Other Material Emissio factor applied for the other material cosumed as reductat based o carbo cotet Carbo cotet furished by the supplier or idepedet laboratory or IPCC values A estimated project-specific value for three years precedig the project activity is preferred to IPCC value Quality of Coal b Mass fractio of each compoet (%m/m) Quality of Coal based o elemetary aalysis ad other relevat properties Supplier To esure cosistecy ad, if applicable, calculate EF coal The quality shall be moitored. Quality will be established o the basis of historic data for stadard grades ad carbo cotet. 16/24

17 Quality of Coke b Mass fractio of each compoet (%m/m) Quality of Coke based o elemetary aalysis ad other relevat properties or a third party laboratory (ca be the supplier) To esure cosistecy ad, if applicable, calculate EF coke the quality shall be moitored. Quality will be established o the basis of historic data for stadard grades ad carbo cotet Historic data obtaied from aalysis reports to be compared with IPCC rage of values Quality of electrode paste b based o elemetary aalysis ad other relevat properties Mass fractio of each compoet (%m/m) Quality of electrode paste or a third party laboratory (ca be the supplier) or IPCC values To esure cosistecy ad, if applicable, calculate EF paste the quality shall be moitored. Quality will be established o the basis of maufacturer s iformatio for the paste used i the past three years Historic data obtaied from aalysis reports to be compared with IPCC rage of values Quality of Other Reductat b Mass fractio of each compoet (%m/m) Quality of other material used as a reductat, based o relevat properties or a third party laboratory (ca be the supplier) To esure cosistecy ad, if applicable, calculate EF reductother the quality shall be moitored. Quality will be established o the basis of historic data for stadard grades ad carbo cotet Historic data obtaied from aalysis reports to be compared with IPCC rage of values 17/24

18 Quality of SiM b alloy b based o elemetary aalysis ad other relevat properties Text Quality of alloysim or a third party laboratory or IPCC values. The quality of the alloysim (defied by certai specificatios for M, C, Si, P, S as appropriate) 9 for the three years precedig the project activity will be recorded at the start of the project activity based o historic samplig aalysis data Historic data obtaied from aalysis reports to be compared with referece data Quality of OreRaw Materials 10 based o elemetary aalysis ad other relevat properties Text Quality of OreRaw Materials or a third party laboratory or IPCC values. The quality of the OreRaw Materials (defied by certai specificatios for Fe, M, C, Si, P, S etc as appropriate) for the three years precedig the project activity will be recorded at the start of the project activity based o historic samplig aalysis data Historic data obtaied from aalysis reports to be compared with referece data Quality of fluxes 11 based o elemetary aalysis ad other relevat properties Text Quality of fluxes The quality of the fluxes (defied by elemetary aalysis ad otherrelevat properties) for the three years precedig the project activity will be recorded at the start of the project activity based o historic samplig aalysis data. Fluxes are oly moitored whe the specified alloy productio processes requires their use 9 As i Table 4.5 of the 2006 IPCC Guidelies for Natioal Greehouse Gas Ivetories, Chapter 4, pg Raw materials are defied as those materials which cotribute the major compoets to the fial alloy, for istace i SiM productio raw materials are Magaese Ore ad Quartz, i FeSi productio raw materials are mill scale (or other source of iro) ad Quartz. 11 For the avoidace of doubt, fluxes are defied to be a mieral added to the furace charge for the purpose of removig impurities (Coal & Steel Report, World Coal Istitute, 2009). 18/24

19 III. MONITORING METHODOLOGY Overview of Parameters to be Moitored The methodology is devised to moitor emissios as a result of both baselie ad project activities arisig from project implemetatio. The methodology moitors the o-site ad off-site emissios i the baselie ad the project sceario. Some of the baselie parameters are defied as costat values sice they ca o loger be separately measured after implemetatio of the project. These costat values are based o actual historic measuremets ad iterpreted i a coservative maer. Data for estimatig grid electricity emissio factor should be moitored as defied i the latest versio of Tool to calculate emissio factor for a electricity system. IPCC emissio factors are used for coal, ad coke ad other reductats i case local data is ot available. Maufacturer s emissio factor is used for electrode paste. The methodology requires moitorig of the cosumptio of electricity, coal, coke, other reductats ad electrode paste, SiMalloy productio ad project-specific quality ad emissio factors for coal, coke, other reductats ad electrode paste. Moitorig of baselie ad project parameters QP y moitored Toes of SiMalloy /year Quatity of SiMalloy productio i year y durig the project activity The SiMalloy productio is weighed o a platform scaleweighig istrumet as it is trasferred to the castig machie or castig bed Per productio ru equipmet used at the plat site should be subject to a regular maiteace ad testig regime (icl. calibratio) to esure accuracy EC y MWh/year Aual grid electricity cosumptio by the submerged electric arc furace The quatity of electricity cosumed from a grid will be metered, ad double-checked with the bills from the electricity supplier Measured cotiuously, recorded mothly This data will be double checked with bills from grid operator to esure cosistecy. Electricity meter will be calibrated i lie with maufacturer s recommedatios 19/24

20 Q pcoal, y Toes of Coal/year Cosumptio of coal used as reductat i the submerged electric arc furace The coal is weighedloaded ito hoppersdispesers equipped with load cells uder themmass measurig devices to determie the mass fed ito the furace Daily equipmet used at the plat site should be subject to a regular maiteace ad testig regime (icludig calibratio) to esure accuracy Q pcoke, y Toes of Coke/year Cosumptio of coke used as reductat i the submerged electric arc furace i toes of coke per year The coke is weighedloaded ito hoppersdispesers equipped with load cells uder themmass measurig devices to determie the mass fed ito the furace Daily equipmet used at the plat site should be subject to a regular maiteace ad testig regime (icludig calibratio) to esure accuracy Q ppaste, y Toe of paste/year Cosumptio of electrode paste used as electrode i the submerged electric arc furace i toes of electrode paste per year Based o the ivetory of paste cyliders at the facilities ad the mass per cylider as measured upo arrival at the plat Mothly equipmet (load cells) used at the plat site should be subject to a regular maiteace ad testig regime (icludig calibratio) to esure accuracy 20/24

21 Q preductother, y Toes of Reductat/year Cosumptio of other material used as reductat i the submerged electric arc furace i toes of reductat per year The material is loaded ito dispesers equipped with mass measurig devices to determie the mass fed ito the furace Daily equipmet used at the plat site should be subject to a regular maiteace ad testig regime (icludig calibratio) to esure accuracy EF pcoal, y tco 2 / t coal Emissio factor applied for the coal cosumed as reductat Carbo cotet furished by the supplier or idepedet laboratory. Laboratory aalysis Mothly Compare ay measuremet results with the rage of default emissio factors Calculated project-specific value is preferred to IPCC value EF pcoke, y tco 2 / t coke Emissio factor applied for the coke cosumed as reductat Carbo cotet furished by the supplier or idepedet laboratory Laboratory aalysis Mothly Compare ay measuremet results with the rage of default emissio factors. Calculated project-specific value is preferred to IPCC value EF ppaste, y tco 2 / t of carbo paste Emissio factor applied for the electrode paste cosumed as electrodereductat Carbo cotet furished by the supplier or idepedet laboratory Laboratory aalysis Mothly Compare maufacturer s iformatio with alterative coservative factor. Specified by the maufacturer. Alteratively, a coservative factor of 3.67 tco 2 / t of carbo paste ca be applied for the project activity sceario 21/24

22 EF preductother, y tco 2 / t Reductat Emissio factor applied for the other materials cosumed as reductat Carbo cotet furished by the supplier or laboratory Laboratory aalysis Mothly Compare ay measuremet results with the rage of default emissio factors Calculated project-specific value is preferred to IPCC value Quality of Coal p Mass fractio of each compoet (%m/m) Elemetary aalysisquality of Coal based o relevat properties or a third party laboratory (ca be the supplier) Laboratory aalysis Mothly Lab aalyses will be udertake to atioal or iteratioal stadard to esure accuracy ad cosistecy. To esure cosistecy ad, if applicable, calculate EF coal The quality shall be moitored. Quality will be established o the basis of stadard grades ad carbo cotet. Quality of Coke p Mass fractio of each compoet (%m/m) Quality of Coke based o elemetary aalysis ad other relevat properties or a third party laboratory (ca be the supplier) To esure cosistecy ad, if applicable, calculate EF coke The quality shall be moitored. Quality will be established o the basis of historic data for stadard grades ad carbo cotetlaboratory aalysis Mothly Lab aalyses will be udertake to atioal or iteratioal stadard to esure accuracy ad cosistecy To esure cosistecy ad, if applicable, calculate EF coke, the quality shall be moitored. Quality will be established o the basis of stadard grades ad carbo cotet Quality of electrode paste p Mass fractio of each compoet (%m/m) Quality of Paste based o relevat properties or a third party laboratory (ca be the supplier) Laboratory aalysis At the time of purchase 22/24

23 Compare ay measuremet results with a rage of factors supplied by other suppliers or IPCC To esure cosistecy ad, if applicable, calculate EF paste the quality shall be moitored. Quality will be established o the basis of maufacturer s iformatio Quality of Other Reductat p Mass fractio of each compoet (%m/m) Quality of Other Reductat based o relevat properties or a third party laboratory (ca be the supplier) Laboratory aalysis Mothly Lab aalyses will be udertake to atioal or iteratioal stadard to esure accuracy ad cosistecy To esure cosistecy ad, if applicable, calculate EF reductother The quality shall be moitored. Quality will be established o the basis of stadard grades ad carbo cotet EF y (off-site) tco 2 /MWh Grid emissios factor Established accordig to the latest versio of Tool to calculate emissio factor for a electricity system. Accordig to the latest versio of Tool to calculate emissio factor for a electricity system QA/QC procedures specified i the latest versio of Tool to calculate emissio factor for a electricity system will be followed As resultig from the latest versio of Tool to calculate emissio factor for a electricity system Quality of SiM p Alloy p Text Quality of SiMAlloy or a third party laboratory A sample will be lab aalysed periodically to esure that the quality remais betwee pre-determied specificatios for M, C, Si, P, S. Daily Lab aalyses will be udertake to atioal or iteratioal stadard to esure accuracy ad cosistecy 23/24

24 Quality of OreRaw Materials based o elemetary aalysis ad other relevat properties Text Quality of OreRaw Materials or a third party laboratory (ca be the supplier) The quality of the OreRaw Materials (defied by certai specificatios for Fe, M, C, Si, P, S etc as appropriate) will be lab aalysed periodically Mothly Historic data obtaied from aalysis reports to be compared with referece data Quality of fluxes based o elemetary aalysis ad other relevat properties Quality of fluxes based o relevat properties Text Quality of fluxes The quality of the fluxes (defied by elemetary aalysis ad other relevat properties) for the three years precedig the project activity will be recorded at the start of the project activity based o historic samplig aalysis data Mothly Lab aalyses will be udertake to atioal or iteratioal stadard to esure accuracy ad cosistecy Fluxes are oly moitored whe the specified alloy productio processes requires their use History of the documet Versio Date Nature of revisio(s) , Aex # Revisio to: 3 Jue 2011 Expad the applicability to projects which improve the efficiecy of the productio of various alloys; Take ito accout the cotets of various reductats that may be used i alloy productio, i the calculatio of the project ad baselie emissios; Add referece to the Tool to determie the remaiig lifetime of equipmet. 02 EB 35, Para 24, 19 October 2007 Revisio to icorporate the use of the Tool to calculate emissio factor for a electricity system. 01 EB 26, Aex 5, 29 September 2006 Iitial adoptio. Decisio Class: Regulatory Documet Type: Stadard Busiess Fuctio: Methodology 24/24