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 Initial adoption 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: Title of the Project Activity Shri Dnyaneshwar Sahakari Sakhar Karkhana Methane Extraction Project Version of PDD:- Version 5 Date when document was completed:- 13/12/2008 A.2. Description of the small-scale project activity: Purpose:- The main purpose of the project activity is the installation of a closed anaerobic digestion system to extract and capture methane enriched biogas from the treatment of the organic wastewater (spent wash) generated in the distillery and to flare the captured bio gas in the boiler for deriving heat energy for generation of steam. The organic wastewater from distillery also known as spent wash is diverted from existing open anaerobic lagoon treatment system into closed anaerobic reactors to recover methane rich biogas and utilize the methane as fuel to generate steam and electricity. Another purpose of the project activity is to replace the existing anaerobic composting pits by surface aerobic composting so as to reduce the methane emissions into the atmosphere that would have otherwise been emitted from the existing anaerobic composting pits. Description of project activity:- The Distillery Unit of Shri Dnyaneshwar Sahakari Sakhar Karkhana Ltd. (Shri Dnyaneshwar co-operative sugar factory Ltd.) is located in village Bhende of Ahmadnagar district of Maharashtra State in India. The sugar factory has crushing capacity of 5000 Tonnes per day (TCD). The Distillery is attached to Shri Dnyaneshwar Sahakari Sakhar Karkhana Ltd. and both the Sakhar Karkhana (Sugar factory) as well as Distillery unit are located in the same premises. The installed capacity of the distillery is 45 Kilolitres per day (KLPD) of alcohol. The facility uses 180 MT of Molasses, a bye-product of the sugar factory, per day for alcohol production which is sourced from the parent Sugar factory (SDSSK). The process also generates about 480 m 3 /day of distillery effluent, namely spent wash. The spent wash from distillation process has high organic content and the organic content is measured in terms of chemical oxygen demand 3

4 (COD) and biochemical oxygen demand (BOD). The spent wash has to be treated to bring down the levels of COD and BOD to prescribed standards of environmental authorities. SDSSK treated the spent wash in the open anaerobic lagoons. After this treatment, out of the total spent wash of m 3 per annum, m 3 was mixed with press mud and treated by anaerobic composting to produce organic manure and sold to farmers at nominal price. The balance m 3 was used for controlled land application as liquid manure under supervision of Mahatma Phule Krushi Vidyapith (Mahatma Phule Agricultural University). This mode of treatment and disposal although acceptable to environmental authorities and easy to operate was releasing lot of green house gases (GHG) into atmosphere apart from loosing large quantities of energy that could be recovered. The wastewater due to its high organic content when subjected to anaerobic degradation, produces biogas. Biogas mainly consists of methane and carbon dioxide and is a valuable fuel. SDSSK realizing the effects of greenhouse gases being released into atmosphere from open anaerobic lagoons and appreciating the importance of recovering valuable energy from the wastewater, had decided to establish a biogas recovery plant through an anaerobic digestion system and utilize biogas as fuel to generate steam in the boiler. The heat energy from the steam is utilized in the manufacturing process of distillery and sugar factory. The average flow rate and COD of wastewater is 480 m 3 /day and mg/lit respectively. The wastewater treatment can be broadly divided into following sections. i) Primary Treatment Bio-methanation in a closed anaerobic reactor ii) Secondary Treatment Surface Aerobic Composting i) Primary Treatment: Bio-methanation in a closed anaerobic reactor (Biodigester) The project activity consists of Biomethanation in a closed anaerobic reactor based on Upflow Anaerobic Sludge Blanket (UASB) technology for treating the spent wash generated. First spent wash having ph 4.5 is pumped from sump to Homogenization tank where ph is maintained between 6 to 6.5 by adding lime slurry. The concentrated spent wash of reboiler is diluted with raw water in the ratio 1:0.2 for maintaining required COD load to the digester. Microbial activity is at optimum when the ph of the substrate is in the range of Nutrients like urea, di ammonium phosphate and micronutrients like ferric chloride are added in the buffer tank, if required, to supplement the nutrient requirement. The wastewater is then subjected to anaerobic treatment in closed anaerobic reactor. Upflow Anaerobic Sludge Blanket (UASB) type of anaerobic reactor is employed in the project activity. The wastewater 4

5 from homogenization tank is pumped to UASB reactor or biodigester. One biodigester of 27.4 meters diameter and 11.7 m height (SWD) with 6480 m 3 is provided for anaerobic digestion. The height of the reaction zone is 10.3 m while the retention time is 8.92 days. The wastewater enters the reactors from the bottom of the reactor through a distribution pipeline grid. Holes are provided in the distribution pipeline and when wastewater is pumped in the pipeline, the effluent enters the reactors through these holes uniformly. The wastewater flows in an upward direction in the digester through an anaerobic sludge bed where it mixes with microorganisms in the sludge bed. The treatment of wastewater through anaerobic treatment involves following three step process: i) Hydrolysis ii) Acidogenesis iii) Methanogenesis. The process of hydrolysis takes place in homoginization tank, which is the preparatory step for acidogenesis and methanogenesis reactions. Acidogenesis and methanogenesis take place in digesters. Acidogenesis reactions break the complex organics in the wastewater into acids and these acids are further destroyed into basic compounds of methane (CH4) and carbon dioxide (CO2,) the mixture of which is known as biogas. Temperature is one of the main parameters for effective degradation of the organics. The anaerobic reactions occur when the digester temperatures are above 25 centigrade (C) and are at optimum at still higher temperatures in the range of C. The temperature of the UASB contents is always between C and thus anaerobic reactions are at optimum levels. The high ambient temperatures present in western part of India throughout the year ensure maintenance of desired range of temperatures in UASB reactors without the need for any external heating. The resulting anaerobic degradation produces biogas. Biogas is a mixture of CH4 and CO2. Biogas produced rises upward through the sludge along with the wastewater. At the top of the reactor, the water phase is separated from solids and gas in a three phase separator (also known as gas liquid -solid separators - GLSS). The three phases are gas is biogas, liquid is treated wastewater and solid is the sludge in the wastewater. Gas is collected separately, and buffered in a gasholder before being used as fuel. The liquid, that is, the treated wastewater, overflows to a storage tank and solids in the liquid slide down into the UASB reactor. The biogas is drawn and transferred by booster blowers to the existing boilers for flaring. The Upflow Anaerobic Sludge Blanket (UASB) technology is supplied by M/s Sucrotech Equipments, Pune. This company is based in Maharashtra State in India. Being anaerobic treatment, the energy consumption during operation is minimal and restricted to pumping of spent wash for maintaining uniform upflow velocity. 5

6 ii) Secondary Treatment Surface Aerobic Composting The spent wash is subsequently sent to storage tank and further treatment is given in the form of surface aerobic composting and controlled land application. The existing anaerobic composting pits will be replaced by surface aerobic composting. The compost yard (12.5 acres) will be made impervious by 1:3:6 PCC. Leachate gutter, leachate sumpwell, barbed wire fencing, plantation, instrumentation (Magnetic flow meter, Pressure gauges etc.) will be also provided at the compost yard. Surface aerobic composting will be carried out by tilling process. While tilling the windrow, the wastewater is added to the press mud (sludge generated in the clarification of sugarcane juice in the manufacturing of sugar) and the tilling equipment mixes well press mud and treated wastewater. The press mud mixed with treated wastewater is a better enriched organic compost and sold to farmers at a nominal price. Out of the total spent wash of m 3 per annum, major portion (90%) of m 3 will be mixed with press mud and treated by surface aerobic composting while the balance m 3 will be used for controlled land application as liquid manure under supervision of Mahatma Phule Krushi Vidyapith (Mahatma Phule Agricultural University) as discussed earlier. The percentage of spent wash to be treated by surface aerobic composting is decided by the amount of press mud available. Thus no wastewater is discharged on land or into any water bodies and all wastewaters is consumed ensuring a zero discharge. Utilization of biogas:- The Biomethanation plant will generate biogas which will be flared in the boiler for generating steam which is used in the distillery unit as well as sugar factory. In case biogas is not available, bagasse, a biomass is used to fire the boiler. Explanation how the project activity reduces green house gas emissions:- The project activity reduces green house gas emission in two ways:- i) The project activity diverts the organic wastewater from existing open anaerobic lagoon treatment system to closed anaerobic treatment system thereby preventing the release of methane, a GHG, into the atmosphere. The extracted and captured methane enriched biogas in the anaerobic digester is flared in the boiler. 6

7 ii) At present, anaerobic composting pits are used for composting of treated effluent from primary treatment. This results in emission of methane which causes global warming. These anaerobic composting pits will be replaced by surface aerobic composting which will reduce global warming by avoiding the emission of methane. Contribution of the project activity to sustainable development:- Ministry of Environment and Forests, Govt. of India has stipulated social well being, economic well being, environmental well being and technological well being as the four indicators of sustainable development in the interim approval guidelines for the CDM projects. Social well being:- The project has been implemented in the rural area of Newasa Taluka of Maharashtra State where farming is the major source of income for the community. The sugar factory is not a publicly listed company. It is run on the unique concept of co-operation first pioneered in rural Maharashtra by noted economist late Mr. Dhananjayrao Gadgil, in which large number local farmers have contributed to the capital and they are the share holders of this sugar factory. Share holders are divided into A, B and C categories. Class A members are and they are the sugar producing farmers. Out of these, 1635 are from Scheduled Castes and 476 are from Scheduled Tribes. Both these social groups are under privileged. Apart from these there are 93 B Class members which are non-producing institutes and C Class members which are nonproducing individuals. The sugar factory has played a key role in the up lift of these sections of the society. The total share capital is INR Millions. There are 214 villages in the command area of Karkhana (factory). These co-operative sugar factories have played an important role in the development of rural area of Maharashtra and they have started other allied activities such as setting up of educational institutes, dairies, cultural facilities etc. SDSSK provides regular employment to 1248 workers. In addition 9000 workers are on daily wages during the season. The project activity provided direct and indirect employment generation opportunities for more than 100 different persons for different types of works for different periods of duration during the construction period of the project activity ( ). In addition, the project activity has created direct confirmed employment for 9 persons and contractual and temporary employment opportunity for 2 persons. In the composting section, 11 and 14 laborers are employed on permanent and contract basis respectively. Apart from this the project has created indirect employment also. In tankers and tractors for controlled land application, 38 employees (19 x 2) are working. 19 contractors have got the job of transportation of spent 7

8 wash. In all 93 persons are getting different types of employment as a result of this project activity. Thus, the project activity has given the community of this taluka an alternative source of income, which has reduced their dependency on farming as the sole means of subsistence. Additionally, SDSSK is instrumental in starting a school and college for the children in the rural area. This has made possible the education of boys and girls in the remote villages, many of which would have otherwise remained illiterate. Apart from this SDSSK has contributed in providing better infrastructure for this rural area in the form of roads, lift irrigation schemes for the farmers, tree plantation roads and other such efforts. Many other small scale industries and entrepreneurs in this area are benefited due to the presence of project activity which has resulted into more employment and capacity building. The project activity will also cause further improvement in the infrastructure resulting into rural development. This also prevents the migration of the poor rural youths to urban areas in search of jobs. This greatly helps in reducing the problems caused due to rampant urbanization and thus makes a great contribution in sustainable development. The manure developed as a result of surface aerobic composting will be made available to local farmers at lower costs. This will also reduce the necessity of transport of manure and the resultant adverse environmental impacts. Economic well being:- SDSSK is located in the rural and backward area of Newasa taluka of Maharashtra state. It provides regular employment to 1248 workers. In addition 9000 workers are employed on daily wages basis for cutting of cane during the harvesting season of eight months (October to June). The total investment of SDSSK is INR Million as on today. The total investment of INR million has happened due to project activity which otherwise would not have happened. Apart from this INR 2.16 Million will be invested annually as operating cost. The project also generates biogas, a renewable source of energy, which can be used as fuel in the boilers. This also generates some income though it is not sufficient to make the project economically viable without CDM support. The project activity has created direct confirmed employment for 35 persons and contractual and temporary employment opportunity for 111 persons. In last three to four years the sugar factories in the rural parts of Maharashtra and India are facing economic losses due to lower prices to sugar and at the same time they have to give a fixed price to the cane (raw material) as stipulated by the Government and 8

9 thus the project activity would not have been economically viable unless it receives financial support from Clean Development Mechanism. The manure developed as a result of surface aerobic composting will be made available to local farmers at lower costs. Improved environmental conditions will result into better health of the people residing near the project site, which will reduce their health related expenditure. Yield of fishermen will increase due to better quality of water. Environmental well being:- The project activity captures the methane (CH 4 ) and converts it to CO 2, thus reducing its global warming potential. In addition, it is generating a source of renewable energy in the form of biogas. As the biodigesters are more efficient in the removal of COD, the chances of adverse environmental impacts are considerably reduced. Water quality will improve. The successful implementation of this project activity will also encourage other distilleries in the region to install the bio-digesters and will contribute greatly in reducing the global warming and local adverse environmental impacts. The project also envisages the construction of surface aerobic composting. This will also reduce the chances of fugitive methane emissions generated from anaerobic composting pits at present. The impervious surface to be constructed will reduce the chances of ground water pollution. Technological well being:- The project activity uses technologically advanced Upflow Anaerobic Sludge Blanket (UASB) system digester for the treatment of spent wash generated during production of alcohol from sugar molasses. In this treatment, which is carried out in a closed reactor, methane enriched biogas is recovered in an efficient manner. At present there is no large scale use of UASB technology as there is a perception that it is difficult to operate. The successful operation of this technology will encourage other distilleries to install bio-digesters in general and UASB technology in particular. The UASB technology is also suitable for the treatment of municipal wastewater (sewage) and other industrial wastes as this requires lesser energy and land than other treatment methods being used. However, due to the reasons mentioned above, it is not popular. The capacity building in operation and maintenance with respect to UASB technology as a result of this project activity will encourage these entities to install UASB technology, which will in turn contribute to sustainable development as a result of less consumption of energy. A.3. Project participants: 9

10 Name of Party Involved (*) ((host) indicates a host party) Government of India Private and/or public entity(ies) project participants (*) (as applicable) Shri Dnyaneshwar Sahakari Sakhar Karkhana Ltd. (SDSSK) (Private entity) Kindly indicate if the party involved wishes to be considered as project participant No A.4. Technical description of the small-scale project activity: A.4.1. Location of the small-scale project activity: India Maharashtra A A A Host Party(ies): Region/State/Province etc.: City/Town/Community etc: At- Dnyaneshwarnagar, Post- Bhende S.K., Taluka-Newasa, Dist.- Ahmednagar A Details of physical location, including information allowing the unique identification of this small-scale project activity : The project activity is geographically located at N Latitude and E Longitude. The premises have a gentle terrain and no prime agricultural land has been sacrificed. Sub soil is moderately coarse and partly yellowish brown with some top cover of soil. The nearest Railway stations are Belapur(50 Km) and Ahmednagar(60 Km). Neighbouring villages of Bhende Budruk, Bhende Khurd, Kukana and Saundala are located within 3 to 5 km of the project site. 10

11 Maharashtra State INDIA 11

12 Project Site A.4.2. Type and category(ies) and technology/measure of the small-scale project activity: Project has applied approved methodologies available for small scale CDM project at UNFCCC website under Appendix B of the simplified modalities and procedures for small scale project activities as follows:- Type: - Type III OTHER PROJECT ACTIVITIES Category:- Type III H - Methane recovery in wastewater treatment Scope Number:- 13 Sectoral Scope:- Waste Handling and Disposal Technology/Measure:- The approved small scale methodology AMS III H Version 10, Sectoral Scope 13 EB 42, comprises methane recovery from wastewater treatment facilities. This reduces anthropogenic emissions by sources and directly emits less than 15 Kilotonnes of carbon dioxide equivalent annually. The project falls within 12

13 small scale rating as the project activity results in emission reductions of less than or equal to 60 kt CO 2 equivalent annually as outlined in Type III H in the indicative simplified baseline and monitoring methodologies for selected small-scale CDM project categories. Technology of project activity: The project activity uses technologically advanced Upflow Anaerobic Sludge Blanket (UASB) system digester for the treatment of spent wash generated during production of alcohol from sugar molasses. In this treatment, which is carried out in a closed reactor, methane enriched biogas is recovered in an efficient manner. The spent wash is uniformly distributed through a grid of pipelines at the bottom. The biogas collected at the top of the reactor can be used as fuel in the boiler and thus this technology is a source of renewable energy. Moreover, being anaerobic treatment, the energy consumption during operation is minimal and restricted to pumping of spent wash for maintaining uniform upflow velocity. The Upflow Anaerobic Sludge Blanket (UASB) technology was supplied by M/s Sucrotech Equipments. This company is based in Pune, Maharashtra and one of the pioneers in the field. After the majority of the COD is treated and reduced by anaerobic digestion or bio-methanation, the effluent is subsequently sent to the storage tank. This will be followed with direct surface aerobic biocomposting. Based on the available press mud at the factory site, 90% of the spent wash generated after bio-methanation can be treated by surface aerobic composting. Balance 10% is treated by controlled land application. COD load at the pond is monitored. COD at the inlet of the storage tank is between mg/lit to mg/lit. A significant majority (around 70%) of the COD load has been reduced by anaerobic digestion and the rest of the process is operating under largely aerobic conditions. A.4.3 Estimated amount of emission reductions over the chosen crediting period: The total estimated emission reduction over the ten year crediting period is estimated around 304,300 t CO 2 e. Years Estimation of annual emission reductions in tones of CO 2 e

14 Total estimated reductions (tones of CO 2 e) Total number of crediting years 10 Annual average of the estimated reductions over the crediting period A.4.4. Public funding of the small-scale project activity: This is a unilateral CDM Project Activity undertaken by the project proponent. Hence public funding from Annex I and diversion of official development assistance (ODA) is not involved in this project. A.4.5. Confirmation that the small-scale project activity is not a debundled component of a large scale project activity: As mentioned under Appendix C of the Simplified Modalities and Procedures for small- scale CDM project Activities, the following results into debundling of large CDM project: A proposed small-scale project activity shall be deemed to be a debundled component of a large project activity if there is a registered small-scale CDM project activity or an application to register another small scale CDM project activity: With the same project participants; In the same project category and technology/measure; and 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. The current project activity can not be deemed to be a debundled component of a larger project activity because the project proponent has not registered any small scale CDM activity or applied for registration another small scale CDM project activity- within 1 km of the respective project boundaries of the proposed 14

15 CDM project; nor registered within the previous 2 years; in the same project category and technology/measure. 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: Project Category Scope No. : 13 Sectoral Scope: Waste handling and disposal Type :III OTHER PROJECT ACTIVITIES Title of the approved baseline methodology:- Methane recovery in wastewater treatment Reference of the approved baseline methodology: AMS III H / Version 10, EB 42 dated 26 September, 2008 Applicable to This project category comprises measures that recover methane from biogenic organic matter in wastewaters by means of one of the following options: (i) Substitution of existing aerobic wastewater or sludge treatment systems with anaerobic systems with methane recovery and combustion. (ii) Introduction of anaerobic sludge treatment system with methane recovery and combustion to an existing wastewater treatment plant without sludge treatment. (iii) Introduction of biogas recovery and combustion to an existing sludge treatment system (iv) Introduction of biogas recovery and combustion to an existing anaerobic wastewater treatment system such as anaerobic reactor, lagoon, septic tank or 15

16 an on site industrial plant. (v) Introduction of anaerobic wastewater treatment with biogas recovery and combustion, with or without anaerobic sludge treatment, to an untreated wastewater stream. (vi) Introduction of a sequential stage of wastewater treatment with biogas recovery and combustion, with or without sludge treatment, to an existing wastewater treatment system without biogas recovery (e.g. introduction of treatment in an anaerobic reactor with biogas recovery as a sequential treatment step for the wastewater that is presently being treated in an anaerobic lagoon without biogas recovery). B.2 Justification of the choice of the project category: Appendix B of the simplified M&P for small-scale CDM project activities provides indicative simplified baseline and monitoring methodologies for selected small-scale CDM project activity categories. As per the M&P, the project activity falls under the following approved small scale methodology AMS III. H - Methane recovery in waste water treatment / Version

17 The project activity avoids anthropogenic methane emission to the atmosphere by recovering methane from spent wash treatment. 1. This project category comprises measures that recover methane from biogenic organic matter in wastewaters by means of one of the following options: (i) Substitution of aerobic wastewater or sludge treatment systems with anaerobic systems with biogas recovery and combustion. (ii) Introduction of anaerobic sludge treatment system with biogas recovery and combustion to an existing wastewater treatment plant without sludge treatment. (iii) Introduction of biogas recovery and combustion to an existing sludge treatment system (iv) Introduction of biogas recovery and combustion to an existing anaerobic wastewater treatment system such as anaerobic reactor, lagoon, septic tank or an on site industrial plant. (v) Introduction of anaerobic wastewater treatment with biogas recovery and combustion, with or without anaerobic sludge treatment, to an untreated wastewater stream. (vi) Introduction of a sequential stage of wastewater treatment with biogas recovery and combustion, with or without sludge treatment, to an existing wastewater treatment system without biogas recovery (e.g. introduction of treatment in an anaerobic reactor with biogas recovery as a sequential treatment step for the wastewater that is presently being treated in an anaerobic lagoon without biogas recovery). The small scale project activity is the Introduction of a sequential stage of wastewater treatment with biogas recovery and combustion, with or without sludge treatment, to an existing wastewater treatment system without biogas recovery as per option (vi). The applicability of the above methodology can be explained through the below given arguments:- The project activity involves methane recovery and combustion to the existing wastewater treatment plant. The measure reduces anthropogenic methane (GHG) emission from the source as in the absence of the project activity, the project owner would have used the existing open lagoon system for the treatment of spent wash where methane (GHG) would not have recovered but released into the atmosphere. The measured emission from the project activity emits less than 15 kilotonnes of carbon dioxide equivalent annually. The emission reductions from the project activity are less than 60 kilotonnes of carbon dioxide equivalent annually as explained in paragraph A

18 The project is based on the activities described herein. Firstly, anaerobic treatment of distillery effluent (spent wash) and collection of methane enriched biogas is carried out in a closed digester system. This reduces the CH 4 that would have otherwise been emitted from the existing open lagoon. The applicable emission baseline is the amount of methane that would have been emitted to the atmosphere during the crediting period in the absence of the project activity from the existing open lagoon system. Secondly, combustion of methane enriched biogas extracted and captured in boiler for heat energy, thus converting its methane content and reducing its greenhouse gas effect. At present, anaerobic composting pits are used for composting of treated effluent from anaerobic lagoons. This results in emission of methane, which causes global warming. These anaerobic composting pits will be replaced by aerobic surface composting which will reduce global warming by avoiding the emission of methane. The open anaerobic lagoon followed by controlled land application and anaerobic composting pits is allowed as per Indian law and is business as usual scenario. B.3. Description of the project boundary: Boundary According to the selected approved project category the project boundary has been described as the physical, geographical location of each measure (each piece of equipment) installed. 18

19 B.4. Description of baseline and its development: The baseline of the project activity is as per option (vi) of para 1 of AMS III H/Version 10 which is, Introduction of a sequential stage of wastewater treatment with biogas recovery and combustion, with or without sludge treatment, to an existing anaerobic wastewater treatment system without biogas recovery (e.g. introduction of treatment in an anaerobic reactor with biogas recovery as a sequential treatment step for the wastewater that is presently being treated in an anaerobic lagoon without methane recovery). The project activity is introduction of methane recovery system for existing anaerobic wastewater treatment system to recover methane rich biogas which otherwise would have been emitted from open anaerobic lagoons. Thus methane is captured thereby preventing its release to atmosphere. Hence, the applicable emission baseline is the amount of methane that would be emitted to the atmosphere during the crediting period in the absence of the project activity. So baseline emissions of the project activity are CH4 emissions in the absence of the project activity from 19

20 anaerobic lagoons and anaerobic composting pits. The baseline emissions for the applicable baseline is as per paragraph 16 of the AMS III H/Version 10 which is given below : Baseline emissions for the systems affected by the project activity may consist of: (i) Emissions on account of electricity or fossil fuel used (BEpower,y) (ii) Methane emissions from baseline wastewater treatment systems (BEww,treatment,y) (iii) Methane emissions from baseline sludge treatment systems (BEs,treatment,y) (iv) Methane emissions on account of inefficiencies in the baseline wastewater treatment systems and presence of degradable organic carbon in the treated wastewater discharged into river/lake/sea (BEww,discharge,y) (v) Methane emissions from the decay of the final sludge generated by the baseline treatment systems (BEs,final,y) BE y = { BE power, y + BE ww, treatnent, y + BE s, treatment, y + BE ww, discharge, y + BE s, final, y } Where: BE y BE power,y BE ww, treatnent, y BE s, treatment, y Baseline emissions in year y (tco2e) Baseline emissions from electricity or fuel consumption in year y (tco2e). This term is ignored as power consumption excluding the project activity will be the same in project scenario as well as baseline scenario and will balance each other. Baseline emissions of the wastewater treatment systems affected by the project activity in year y (tco2e) Baseline emissions of the sludge treatment systems affected by the project activity in year y (tco2e). This term is ignored as the sludge treatment emissions will be the same in project scenario as well as baseline scenario and will balance each other. BE ww,discharge,y Baseline methane emissions from degradable organic carbon in treated wastewater discharged into sea/river/lake in year y (tco2e). This term is ignored as the emissions will be the same in project scenario as well as baseline scenario and will balance each other. BE s, final, y Baseline methane emissions from anaerobic decay of the final sludge produced in year y (tco2e). As the sludge is used for soil application in the baseline scenario, this term shall be neglected. Hence BE y = BE ww, treatnent, y 20

21 = i Where Q ww,i,y * COD,removed, i,,y * MCF ww,treatment,bl, i * B o,ww * UF BL * GWP_CH 4 BEy Baseline emissions in the year y (tco2 e) Q ww,i,,y Volume of wastewater treated in baseline wastewater treatment system i in year y (m 3 ) COD,removed, i,y Chemical oxygen demand removed by baseline treatment system i in year y (tonnes/m3), measured as the difference between inflow COD and the outflow COD in system i MCF ww,treatment,bl, i Methane correction factor for baseline wastewater treatment systems i (MCF values as per table III.H.1.) i Index for baseline wastewater treatment system B o, ww Methane producing capacity of the wastewater (IPCC lower default value 0.21 tonnes CH4 / tonnes COD) UF BL Model correction factor to account for model uncertainties GWP_CH4 Global Warming Potential for methane (value of 21 is used) 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 the absence of the project activity SDSSK could have otherwise used the existing open anaerobic lagoon system and anaerobic composting pits. This would have resulted in emission of methane from the into the atmosphere from these treatment systems. Open lagoon option is also the cheapest discharge option for SDSSK. So in the absence of the project activity captured methane emission into the atmosphere would have occurred, thus the project activity reduces methane emissions. The implementation of the methane recovery and utilization to generate heat energy is a voluntary step undertaken by SDSSK with no direct or indirect mandate by law. The main driving forces to this Climate change initiative have been: GHG reduction by capturing methane rich biogas being emitted from lagoons and subsequent 21

22 carbon financing against sale consideration of certified emission reductions. GHG reduction by avoiding the methane emissions from the existing anaerobic composting pits as they will be replaced by surface aerobic composting. To create a supply of renewable energy in the form of methane enriched biogas. However since bagasse, a biomass generated from crushing of the cane was used as fuel in the boiler emission reduction from replacing fossil fuel use is not applicable. Capacity building in operation and maintenance of UASB process and biogas recovery and utilization plants. However, the project proponent was aware of the various barriers associated to project implementation. But it was felt that the availability of carbon financing against a sale consideration of emission reductions generated due to project activity would help to overcome these barriers. Although it is well known fact that, methane recovery and its utilization to generate heat energy has various advantages, it is still not widely applied, particularly in the developing countries like India. For industries to venture into such an unexplored area, it is a steep diversification from their core industrial economics. The level of difficulties further increase as this is a co-operative sugar factory managed by farmers in the rural area of India and skilled professional manpower as in the corporate sector is not available. There is no statutory requirement to implement methane recovery system for SDSSK and there were no emission standards for methane from anaerobic lagoons. Treating its organic wastewater through anaerobic lagoons followed by mixing with press mud and composting the mixture anaerobically, sufficiently met environmental norms. This way, there was no discharge of any liquid wastewater from the premises and this ensured close to most desirable Zero discharge. Anaerobic lagoons were operating smoothly and SDSSK was comfortably meeting the requirements of environmental authorities. However, aware of effects methane released by the open lagoons into the atmosphere, SDSSK had invested in the project activity to recover methane rich biogas and utilize the biogas as fuel in boiler to produce steam which is used in the manufacturing process in the distillery as well as sugar factory. Demonstration of Additionality The following paragraphs have been detailed on project additionality. In accordance with paragraph 28 of the simplified modalities and procedures for small-scale CDM project activities, a simplified baseline and monitoring methodology listed in Appendix B may be used if project participants can demonstrate that the project activity would otherwise not be implemented due to the 22

23 existence of one or more barrier(s) listed in attachment A of Appendix B. Similarly, for the identified CDM project, following barriers have been overcome during project planning and execution. Although discussion of one of the barriers is adequate for a small scale project activity, all barriers are discussed to show that the project activity had several barriers. Investment Barrier: The financial analysis conducted at the time of the project development and implementation showed that the project activity is unattractive for the SDSSK in the business as usual scenario. The underlying assumptions to the financial projection have been mentioned below. The project proponent had assumed the price of biogas as INR 1.60 per cubic meter based on the equivalent quantity of bagasse that would have been used and its cost. It is important to understand the figures on biogas generation and emission reductions were estimated considering projections carried out by SDSSK at the time the project was being considered. Analysis carried out to assess the attractiveness and the feasibility also includes lifetime of the anaerobic digester and other project components. The analysis shows it was not an attractive investment without CDM revenue from the project activity. The revenue generated from the project is due to the biogas generated and which is used as fuel in the boilers and it is not substantial and also enough bagasse, a biomass is available in the area which would have been conveniently used in the absence of the project activity. Credits from GHG emission reductions were envisaged to increase the attractiveness of the project activity. On the basis of these credits, the IRR for the project activity was 14%. Equipment Cost/expenditure Bio-digester INR 4.8 Million Aerobic surface composting INR Million Discount Rate 10% 11% 12% 13% 14% 15% NPV without CER INR Millions NPV with CER INR Millions IRR Percentage Industry average NPV (without CER) Negative 16-20% NPV (with CER) 14% 16-20% Assumptions: Certified Emission Reduction (CER) price of 6.5 USD per t CO 2 23

24 Considering the investment and receipts from biogas sales and at a discount rate varies between 10%-15% a year, project IRR is negative (As the project generates loss). The analysis shows that internal rate of return (IRR) for the project activity over the life time of the project stands negative which was not attractive enough to proceed on a business as usual basis. However, the CDM revenue consideration in the financial analysis had increased the IRR to 14%. The sensitivity of the Project s investment features to various possible events is identified in Table. The sensitivity analysis is conducted in a qualitative manner, since the detailed financial models needed to conduct analysis of the impact of several variables and the alternative projects are not available. Sr. No. Treatment Options available Investment criteria Technology feature 1. Lagooning followed with direct biocomposting and ferti irrigation 2. Biomethanisation followed with two stages extended aeration, dilution & finally disposed for ferti-irrigation/fertigation Low investment on No advanced treatment technology involved Investment required for Biomethanisation anaerobic digester, followed with extended aeration plus conventional investment on operation of extended/secondary digester and extended treatment aeration process Technological Barrier: Setting up the anaerobic digestion system required upgrading the skill sets of the man power that would be needed to run the system at its full potential and with minimal down time. Methane is one of the byproducts of anaerobic digestion. There are many variables that affect the rate of production of biogas. The temperature and the makeup of the waste stream are the most critical. Both affect the rate of bacteria growth. More important, methane extraction systems do not always perform as predicted. The objective is to collect the biogas from the waste water treatment and deliver it to the end use point without the presence of atmospheric air. The introduction of air disrupts the performance of burners. An air leakage anywhere in the system can be time consuming to locate. Thus for implementing the project activity, SDSSK, had taken up the additional efforts and risks associated with the project activity. In India, the enforcement of effluent standards is not followed rigorously. Therefore, traditionally there is no incentive to operate the wastewater treatment plants efficiently. However, as a result of this CDM project, the revenue generated will be 24

25 proportional to the CERs verified which are in turn proportional to the actual COD removed. This is a great incentive to operate the wastewater treatment plant as well as combustion process efficiently and will result into capacity building related to the technological aspects of the UASB process. This will result into real emission reductions and the corresponding environmental benefits. Barrier due to prevailing practice: There are around 51 distilleries operating in the state of Maharashtra. Out of them, 44 are cooperatives attached to sugar industries while remaining 7 are standalone. SDSSK distillery is attached to the sugar factory. From last number of years, the cooperative sugar industry in India in general and Maharashtra in particular is going through a difficult phase due to financial losses. This is because as per the government regulation, farmers supplying cane sugar have to be given a fixed price irrespective of the profit earned by the sugar factory. On the other hand, the market price of sugar is lowering due to over production. Due to this, the sugar factories in the cooperative sector are incurring huge losses. Due to this, most of the distilleries attached to sugar factories are using the low cost treatment of anaerobic lagoons followed by land application or bio-composting. The consent to operate is renewed by the Maharashtra State Pollution Control Board for this treatment. Therefore, most of the distilleries in the cooperative sector do not want to invest an amount ranging from INR 25 to 50 Million in the bio-digester project. The biogas obtained from the bio-digesters can be used as fuel in the boilers. However, bagasse from the crushing of sugarcane or other biomass available in the area would have been much cheaper as fuel compared to the biogas considering the investment made on the bio-digesters. The above argument demonstrates uniqueness of the project activity. Hence, the project activity is claimed to have crossed the barrier due to prevailing practice. Policy Barrier: As per the policy of Government of India, anaerobic lagoon followed by storage and land application and or bio-composting is permissible for the treatment of spentwash in distilleries. Therefore, installation of bio-digester becomes additional from this perspective also apart from the barriers discussed already. Other barriers: Organisation Capacity: SDSSK had limited knowledge and exposure with issues related to Upflow Anaerobic Sludge Blanket (UASB) technology used in the bio-digester as well as surface aerobic composting. SDSSK personnel lacked the necessary operational and technical background to develop and 25

26 operate the UASB process. Training program was conducted for the operator by the technology supplier to build up the capacity for the plant personnel. It developed internal capacity of the operator and helped in smooth function of the power plant. In terms of the CDM aspect, the technical capacity to identify and implement CDM has been a barrier to develop this kind of project activity. Additionally, the uncertainty surrounding the Kyoto Protocol had restricted action, with most units unwilling to take action without seeing a viable carbon market. B.6. Emission reductions: B.6.1. Explanation of methodological choices: The emission reduction of the project activity is the difference between the baseline emissions and the sum of the project emissions and leakage. Emission reductions shall be estimated ex ante as follows: ER y,ex ante = BEy,ex ante - (PEy,ex ante + LE y,ex ante ) Where: ER y,ex ante Ex ante emission reduction in year y (tco2 e) LE y,ex ante Ex ante leakage emissions in year y (tco2 e) PEy,ex ante Ex ante project emissions in year y (tco2 e) BEy,ex ante Ex ante baseline emissions in the year y (tco2e) Baseline emissions BEy The baseline emissions for the applicable baseline is as per paragraph 16 of the AMS III H/Version 10. The complete formula is explained in section B.4.above. The applicable baseline emissions are calculated as given below : BE,y = i Where Q ww,i,y * COD,removed, i,,y * MCF ww,treatment,bl, i * B o,ww * UF BL * GWP_CH 4 BEy Baseline emissions in the year y (tco2 e) Q ww,i,,y Volume of wastewater treated in baseline wastewater treatment system i in year y (m 3 ) COD,removed, i,y Chemical oxygen demand removed by baseline treatment system i in year y (tonnes/m3), measured as the difference between inflow COD and the outflow COD in system i 26

27 MCF ww,treatment,bl, i Methane correction factor for baseline wastewater treatment systems i (MCF values as per table III.H.1.) The first existing wastewater treatment system is anaerobic deep lagoon (depth more than 2 metres) where MCF is 0.8 and the second wastewater treatment system is anaerobic composting pit or anaerobic shallow lagoon (depth less than 2 metres) where MCF is 0.2. i Index for baseline wastewater treatment system (2) B o, ww Methane producing capacity of the wastewater (IPCC lower default value 0.21 tonnes CH4 / tonnes COD) UF BL Model correction factor to account for model uncertainties GWP_CH4 Global Warming Potential for methane (value of 21 ton CO2e / ton CH4 is used) Project Activity Emissions The project activity emissions (PEy) (t CO2e /year) are calculated as per paragraph 26 of AMS III.H/ Version 10. They consist of: (i.) CO2 emissions on account of power and fuel used by the project activity facilities in the year y (PEpower,y). Emission factor for grid electricity or diesel fuel use as the case may be shall be calculated as described in category AMS I.D (ii.) Methane emissions from wastewater treatment systems affected by the project activity and not equipped with biogas recovery in the project situation (PE,ww,treatment,y ). (iii.) Methane emissions from the sludge treatment systems affected by the project activity, and not equipped with biogas recovery in the project situation (PE,s,treatment,y). (iv) Methane emissions on account of inefficiency of the project activity wastewater treatment systems and presence of degradable organic carbon in treated wastewater (PE ww, discharge, y ); (v) Methane emissions from the decay of the final sludge generated by the project activity treatment systems (PE s, final, y ) (vi) Methane fugitive emissions on account of inefficiencies in capture systems (PE fugitive,y ) (vii) Methane emissions due to incomplete flaring (PE flaring y ); 27

28 (viii) Methane emissions from biomass stored under anaerobic conditions which does not take place in the baseline situation (PEbiomass,y). PE y = PE,power,y + PE ww,treatment,y + PE,s,treatment, y + PE ww,discharge,y + PE s, final + PE,fugitive,y + PE flaring, y + PE biomass,y (i) CO2 emissions related to the power and fuel used by the equipment in the project activity (PE,power, y). These are the emissions due to electricity consumed by the installations in the project activity and calculated as per paragraph 19 of AMS III H/ version 10. These emissions are obtained by multiplying the electricity consumed in the year (E consumed MWh/ year) and the electricity baseline emission factor of the grid. (EFy t CO2/ MWh) PE y,power = Ey, consumed * EFy (t CO2e /year) (MWh/year) (tco2/mwh) SDSSK is having one anaerobic bio-digester. The digester is having its gas holder and gas blower to send the bio gas to the boiler conditions. The biogas is sent to the boiler through gas flow meter. Auxiliary Electrical Equipment:- i) Effluent Pump Nos. 2 to pump spent wash from equalization tank (sump) to homogenization tank through heat exchanger 5 HP motor each ii) Effluent Pump Nos. 3 for transfer of S.W. from homogenization tank to anaerobic digester., 12.5 HP motor each iii) Gas blower Motor, 2 Nos., 5 HP each iv) Lime transfer pump 1 No., 1.5 KW (2 HP) v) Agitator 1 No., 0.5 KW (0.67 HP) vi) Air Compressor 1 No. 3 HP vii) Biogas Compressor 3 Nos HP, 1 10 HP Total = HP or KW On an average, 1570 kwh /day (1.57 MWh/day) is consumed to operate the installations in the wastewater treatment plant. This average value is now considered for estimation of ex-ante emission calculations. Actual value would be used during monitoring for calculation of emission reductions. 28

29 The project activity emissions from this electricity consumption can be found out by multiplying the power use in MWh by the emission factor for the concerned grid which in this case is assumed as 0.82 tones/mwh Ey consumed = 1.57 * 365 (MWh/year) (MWh/day) (No of days/year) = MWh/year EFy- Electricity baseline emission factor of the grid AMS IIIH/ version 10 specifies to determine the electricity baseline emission factor of the grid as per AMS I.D. The project activity is in Maharashtra state in India which is part of western regional grid, which is in now included in the NEWNE (Northern, Eastern, Western, North Eastern) grid. Hence, NEWNE grid has been considered for electricity baseline emission factor. Central Electricity Authority, (CEA) is the statutory organization and its main objective is to advise the Government of India (Host Party) on the matters relating to the national electricity policy, formulate short-term and perspective plans for development of the electricity system and coordinate the activities of the planning agencies for the optimal utilization of resources to sub serve the interests of the national economy and to provide reliable and affordable electricity to all consumers. CEA has made an elaborate study and has determined electricity baseline emission factor for all grids in India for both the options of weighted average emissions and on combined margin approach, which is as per AMS I.D. The latest emission factor of the western regional grid would be considered for electricity baseline emission factor. The latest data is available for the year which is adopted. Since the emission factor is considered for estimation of project activity emissions, the highest value would be adopted for estimation of project activity emissions due to electricity consumed by the facilities. The following table B.6-1 gives various latest baseline emission factors for various approaches : Table B.6.1- Baseline emission factor of NEWNE grid for various approaches Year Approach Value Weighted average emissions 0.82 t CO2/ MWh Combined Margin method 0.80 t CO2/ MWh Since the electricity baseline emission factor of the grid is applied to calculate the project activity 29

30 emissions only, the higher value of table B.6.1 (0.82 t CO2/ MWh ) would be adopted. (ii) Methane emissions from wastewater treatment systems affected by the project activity and not equipped with biogas recovery in the project situation (PE,ww,treatment,y ). These emissions (PEy, ww, treatment ) are due to the emissions of methane from the wastewater after leaving the anaerobic digesters as the wastewater will still have some chemical oxygen demand. But, in the closed anaerobic UASB reactors, all the anaerobically degradable carbon would have degraded and the wastewater leaving the anaerobic reactors would not practically degrade further. After leaving the digester, the wastewater is stored in a storage tank in the project activity scenario as well as the baseline scenario and therefore they cancel out each other. Therefore, this component of project activity emissions is ignored. (iii) Methane emissions from the sludge treatment systems affected by the project activity, and not equipped with biogas recovery in the project situation (PE,s,treatment,y). The sludge generated in the anaerobic lagoons was used for soil applications in the baseline as well as in the project scenario. Therefore this component does not result into any methane emissions. (iv) Methane emissions on account of inefficiency of the project activity wastewater treatment systems and presence of degradable organic carbon in treated wastewater (PE ww, discharge, y ); These are the methane emissions from degradable organic carbon in treated wastewater discharged in e.g. a river, sea or lake. However the principle of zero discharge is followed in the project activity. The treated wastewater is aerobically composted along with the press mud and used for controlled land application. Therefore there would be no emissions due to discharge of treated wastewater. (v) Methane emissions from the decay of the final sludge generated by the project activity treatment systems (PE s, final ) These are the emissions that arise from the anaerobic degradation of the final sludge produced by the treatment systems. In the project activity, the sludge produced by the treatment systems is very less. This sludge is basically the excess sludge in the UASB reactors which are removed from the UASB reactors periodically. In the project activity, this sludge would be mixed with press mud and treated wastewater and subjected to aerobic composting. Since the sludge is processed through aerobic methods, the sludge would not degrade anaerobically and hence there would be no emissions. 30

31 (vi) Methane fugitive emissions on account of inefficiencies in capture systems (PE fugitive,y ) These are the emissions that would occur when biogas is combusted in flare and heating equipment. PE fugitive, y = PE fugitive ww,y + PE fugitive, s, y Where: PE fugitive, ww, y Fugitive emissions through capture inefficiencies in the anaerobic wastewater treatment in the year y (tco2e) PE fugitive, s, y Fugitive emissions through capture inefficiencies in the anaerobic sludge treatment in the year y (tco2e) Since the sludge is not treated anaerobically, PE fugitive, s, y is not calculated Hence, PE,fugitive, y = PE,fugitive,ww, y PE fugitive, ww, y = (1 CFE ww ) * MEP ww, treatment, y * GWP_CH 4 Where: CFEww Capture efficiency of the biogas recovery equipment in the wastewater treatment systems (a default value of 0.9 shall be used). MEP ww, treatment, y Methane emission potential of the wastewater treatment systems equipped with biogas recovery system in year y (tonnes) GWP_CH4 Global Warming Potential for CH4 (21 ton CO2/ton CH4) MEP ww, treatment, y = Q y,ww * B o,ww * UF PJ * K where: CODremoved, PJ, k, y * MCF ww, treatment, PJ, k COD removed, PJ, k, y Chemical oxygen demand removed by the treatment system k of the project activity equipped with biogas recovery in the year y (tonnes/m3) MCF ww, treatment, PJ, k Methane correction factor for the project wastewater treatment system k equipped with biogas recovery equipment (MCF values as per table III.H.1) UF PJ Model correction factor to account for model uncertainties (1.06) (vii) Methane emissions due to incomplete flaring (PE flaring y ); Methane emissions due to incomplete flaring in year y as per the Tool to determine project emissions from flaring gases containing methane (tco2e) 31

32 (viii) Methane emissions from biomass stored under anaerobic conditions which does not take place in the baseline situation (PEbiomass,y). This term is ignored as it is not applicable. Leakage As per approved methodology AMS III.H/ version 10, the leakage is to be considered if the used technology is equipment transferred from another project activity or if the existing equipment is transferred to another activity. Since this is not case in the project activity, no leakage is considered for the project activity (LE y ). Therefore, Emissions reductions (ERy) = Baseline emissions (BEy) - Project emissions (PEy) B.6.2. Data and parameters that are available at validation: (Copy this table for each data and parameter) Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Q y, ww M 3 / year Amount of wastewater entering the wastewater treatment plant (anaerobic lagoons in the baseline scenario and into the digesters in the project scenario) Operating records m 3 /year This data is required to calculate the organic load to the wastewater treatment plant. This is based on the average value of wastewater treated per day multiplied by The number of operating days. During monitoring this value shall be measured on a continuous basis and would be used for estimation of project activity emissions. Data / Parameter: COD y, ww, removed Data unit: Ton / m 3 Description: COD y,,removed, i Chemical oxygen demand 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 ). Source of data used: Maintenance records Value applied: Justification of the This is a key data for estimation of ex-ante baseline emissions and post choice of data or monitoring project activity emissions. description of Data is measured by internationally accepted standards. measurement methods 32

33 and procedures actually applied : Any comment: Average value of raw COD ( mg/lit/ ton/m 3 ) entering the anaerobic wastewater treatment systems is assumed for estimation of ex-ante emission estimates. Actual values would be used during monitoring for estimation of project activity/baseline emissions. COD removed is estimated by assuming the COD removal efficiency of 70%. Data / Parameter: B o, ww Data unit: Ton CH 4 / ton COD Description: Methane producing capacity of the wastewater Source of data used: IPCC default value and AMS III H/version 10 Value applied: 0.21 Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data is required to estimate ex-ante baseline emissions and project activity emissions during monitoring. IPCC default value is AMS III.H/Version 10 specifies to use lower value of 0.21 to account for uncertainties. Data / Parameter: MCF ww, treatment Data unit: Fraction Description: Methane correction factor Source of data used: Default values from Chapter 6 of Volume 5, Waste, IPCC 2006 guidelines and AMS III H/version 10 Value applied: 0.8 Justification of the Required to estimate ex-ante baseline emissions. choice of data or description of measurement methods and procedures actually applied : Any comment: As per Table III.H.1. in AMS III.H./version 10 for anaerobic deep lagoon (depth more than 2 metres) Data / Parameter: GWP_CH 4 Data unit: Ton CO2 e / ton CH4 Description: Global Warming Potential of methane Source of data used: IPCC default value Value applied: 21 Justification of the Data is required to estimate all emission calculations choice of data or description of 33

34 measurement methods and procedures actually applied : Any comment: If there is any revision in IPCC default value of GWP_CH4, same would be adopted. Data / Parameter: E y, consumed Data unit: MWh/year Description: Electricity consumed per year Source of data used: Based on calculations of the power installed in the wastewater treatment plant Value applied: Justification of the Data is required to estimate project activity emissions due to electricity choice of data or consumed by the by the facilities in the wastewater treatment plant. description of It is calculated based on the installed capacity of the facilities and average measurement methods electricity consumed. and procedures actually applied : Any comment: Actual electricity consumed by the facilities will be measured and would be adopted for calculation of project activity emissions. Data / Parameter: EF y Data unit: Ton CO 2 / MWh Description: Electricity baseline emission factor of the grid Source of data used: Website of Central Electricity Authority. Value applied: 0.82 Justification of the Data is required to estimate project activity emissions due to electricity choice of data or consumed by the by the facilities in the wastewater treatment. description of The official baseline emission factor of the western regional grid. measurement methods and procedures actually applied : Any comment: - Data / Parameter: COD ww, treated, y Data unit: Ton/m 3 Description: Chemical Oxygen Demand of the treated wastewater leaving the digesters Source of data used: Maintenance Records Value applied: Justification of the This is a key data for estimation of ex-ante and post monitoring project activity choice of data or emissions. description of Data is measured by internationally accepted standards. measurement methods and procedures actually applied : Any comment: Average value of COD is assumed for estimation of ex-ante estimates. Actual values would be used during monitoring for estimation of project activity 34

35 emissions. Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: MCF ww, final / MCF ww, treatment Fraction Methane correction factor Default values from Chapter 6 of Volume 5, Waste, IPCC 2006 guidelines and AMS III H/version for deep anaerobic lagoon (depth more than 2 metres), 0.2 for shallow anaerobic lagoons (depth less than 2 metres) Required to estimate ex-ante project activity emissions. Data / Parameter: Depth Data unit: M Description: Depth of existing lagoons Source of data used: Actual measurement at site Value applied: More than 2 metres Justification of the Data is applied to estimate ex-ante baseline and project emissions choice of data or description of measurement methods and procedures actually applied : Any comment: - B.6.3 Ex-ante calculation of emission reductions: Emission Reductions The emission reduction of the project activity is the difference between the baseline emissions and the sum of the project emissions. ERy = BEy - PEy Where ERy is the emission reductions of the project activity for the year y (tco2 e) BEy is the baseline emissions in the year y (tco2e) PEy is the project activity emissions in the year, y (tco2 e) 35

36 6.3.2 Baseline emissions BEy The baseline emissions for the applicable baseline is as per paragraph 16 of the AMS III H/Version 10 which is given below : BE,y = i Where Q ww,i,y * COD,removed, i,,y * MCF ww,treatment,bl, i * B o,ww * UF BL * GWP_CH 4 BEy Baseline emissions in the year y (tco2 e) Q ww,i,,y Volume of wastewater treated in baseline wastewater treatment system i in year y (m 3 ) which is calculated by multiplying volume of wastewater generated per day and number of operating days in a year. COD,removed, i,y Chemical oxygen demand removed by baseline treatment system i in year y (tonnes/m 3 ), measured as the difference between inflow COD and the outflow COD in system i. There are two anaerobic wastewater treatment systems. First the wastewater enters in the anaerobic deep lagoon. The treated spent wash from the anaerobic lagoons is then further treated in the second system i.e. anaerobic composting pits where all the treated effluent is composted by the press mud and there is no outflow. COD of the wastewater is being analysed regularly by the project proponents in tonnes/m 3. Average value shall be used for estimation of ex-ante calculations and actual value would be used during monitoring and estimation of emission reductions of the project activity. For the first system, COD removed is found out by assuming the COD removal efficiency of 70% from the literature (Government of India manual for sewerage and sewage treatment) for estimation in ex-ante calculations. For the second system, as there is no outflow, it is assumed that 100% COD is removed. MCF ww,treatment,bl, i Methane correction factor for baseline wastewater treatment systems i (MCF values as per table III.H.1.) The first existing wastewater treatment system is anaerobic deep lagoon (depth more than 2 metres) where MCF is 0.8 and the second wastewater treatment system is anaerobic composting pit or anaerobic shallow lagoon (depth less than 2 metres) where MCF is 0.2. i Index for baseline wastewater treatment system (2). The anaerobic deep lagoon and anaerobic composting pit are the first and second systems respectively. B o, ww Methane producing capacity of the wastewater (IPCC lower default value 0.21 tonnes CH4 / tonnes COD) UF BL Model correction factor to account for model uncertainties (0.94) 36

37 GWP_CH4 Global Warming Potential for methane (value of 21 ton CO2e / ton CH4 is used) Qy, ww = Volume /day * Number of days of operation (m 3 /year) (m 3 /day) * (days/year) The average volume of wastewater that is entering the first system or biodigester(q ww, 1, y) in the distillery is 480 m 3 /day and would be adopted for estimation of ex-ante emission calculations. Number of days of operation is 300 days per year approximately. Adopting the values, Q ww, 1, y = 480 * 300 = m 3 /year The average value of wastewater entering the second system i.e. anaerobic composting pits in the baseline scenario and into surface aerobic composting in the project scenario (Q ww, 2, y) is m 3 /year. Balance is used for one time controlled land application. Q ww, 2, y = m 3 /year COD removed, 1, y : The average value of COD of the wastewater removed by the first system i.e. anaerobic lagoons in the baseline scenario and into the anaerobic digester in the project scenario is tons/ m 3 COD removed, 2, y : The average value of COD of the wastewater removed by the second system i.e. anaerobic composting in the baseline scenario and by the surface aerobic composting in the project scenario is the COD of the wastewater treated by the first system (COD ww, treated, y ) i.e tons/ m 3 Whereas adopting other values as above, BE y = ( * * 0.8 * 0.21 * 0.94 * 21 ) 1 (m 3 /year) (tons/m 3 ) (ton CH4/ ton COD) (ton CO2/ ton CH4) + ( * * 0.2 * 0.21 * 0.94 * 21) 2 = = ton CO2 e/year = ton CO2 e/year Project Activity Emissions 37

38 PE y = PE,power,y + PE ww,treatment,y + PE,s,treatment, y + PE ww,discharge,y + PE s, final, y + PE,fugitive,y + PE flaring, y + PE biomass,y Where, PEy The project activity emissions (PEy) (t CO2e /year) PEpower,y CO2 emissions on account of power and fuel used by the project activity facilities in the year y. PE,ww,treatment,y Methane emissions from wastewater treatment systems affected by the project activity and not equipped with biogas recovery in the project situation. PE,s,treatment,y Methane emissions from the sludge treatment systems affected by the project activity, and not equipped with biogas recovery in the project situation. PE ww, discharge, y Methane emissions on account of inefficiency of the project activity wastewater treatment systems and presence of degradable organic carbon in treated wastewater; PE s, final Methane emissions from the decay of the final sludge generated by the project activity treatment systems; PE fugitive,y Methane fugitive emissions on account of inefficiencies in capture systems. PE flaring y Methane emissions due to incomplete flaring ; PEbiomass,y Methane emissions from biomass stored under anaerobic conditions which does not take place in the baseline situation PE y, power - CO2 emissions due to electricity used by the project activity facilities in the year y PE y, power = E y, consumed * EF 11 (t CO2/year) (MWh/year) (tco2/mwh) Adopting the values mentioned in B.6.1, PE y, power = * 0.82 (t CO2/year) (MWh/year) (tco2/mwh) = t CO 2 / year = 470 t CO 2 / year PE ww, treatment, y - Methane emissions from wastewater treatment systems affected by the project activity and not equipped with biogas recovery in the project situation in year y This component of project activity emissions is ignored as per the discussions earlier. 38

39 PEs,treatment, y Methane emissions from the sludge treatment systems affected by the project activity, and not equipped with biogas recovery in the project situation in the year y The sludge generated in the anaerobic lagoons was used for soil applications in the baseline as well as in the project scenario. Therefore this component does not result into any methane emissions PE ww, discharge, y Methane emissions on account of inefficiency of the project activity wastewater treatment systems and presence of degradable organic carbon in treated wastewater There would be no emissions due to discharge of treated wastewater as discussed earlier PE s, final, y Methane emissions from the decay of the final sludge generated by the project activity treatment systems There would be no emissions due to this activity as discussed earlier PE fugitive, y: Methane fugitive emissions through inefficiencies in capture systems in the year y These are the emissions that would occur when biogas is combusted in flare and heating equipment. PE fugitive, y = PE fugitive, ww, y + PE fugitive, s, y where: PE fugitive, ww,y Fugitive emissions through capture and utilization/combustion/flare inefficiencies in the anaerobic wastewater treatment in the year y (tco2e) PE fugitive, s,y Fugitive emissions through capture and utilization/combustion/flare inefficiencies in the anaerobic sludge treatment in the year y (tco2e) Since the sludge is not treated anaerobically, PE y, fugitive, s is not calculated Hence, PE,fugitive, y = PE fugitive,ww PE fugitive, ww,y = (1 CFE ww ) * MEP ww, treatment, y * GWP_CH 4 where: Where, CFEww is capture and flare efficiency of methane recovery and combustion equipment. The methodology specifies a default value of 0.9. This default value would be used only when biogas is combusted in a flare. When biogas is combusted in the heating equipment where all the biogas would be burnt completely a default value of 0.99 (as per approved methodology AM0013 would be adopted) MEP y, ww, treatment Methane emission potential of the wastewater treatment plant in the year y (tones) 39

40 GWP_CH4 is Global Warming Potential for CH4 (21 ton CO2/ton CH4) MEP ww, treatment, y = Q y,ww * B o,ww * UF PJ * k where: CODremoved, PJ, k, y * MCF ww, treatment, PJ, k Q ww, y is the volume of wastewater treated in the year y (144,000 m 3 /year) B0, ww is the methane generation capacity of the treated wastewater (as per AMSIII.H/version 9, IPCC value of 0.21ton CH4/ ton COD is adopted) COD removed, PJ, k, yj Chemical oxygen demand removed by the treatment system k of the project activity equipped with biogas recovery in the year y (tonnes/m 3 ) ( tons/ m 3 ) MCF ww, treatment, PJ, k Methane correction factor for the wastewater treatment system k equipped with biogas recovery equipment (MCF values as per table III.H.1) The MCF value for anaerobic deep lagoon (depth more than 2 meters ) is 0.8 UF PJ = Model correction factor to account for model uncertainties (1.06) Adopting the values in the formula, PE y, fugitive = 0.1 * 144,000 * * 1.06 * 0.21 * 0.8 * 21 (ton CO 2 e / year) (m 3 /year) (ton COD/m 3 ) (ton CH 4 /ton COD) (t CO 2 / t CH 4 ) = = 3958 ton CO 2 e / year Methane emissions due to incomplete flaring PE flaring y; Methane emissions due to incomplete flaring in year y is calculated as per the Tool to determine project emissions from flaring gases containing methane. In the present project, there is enclosed flare and 90% default value is used for flare efficiency. Continuous monitoring of compliance with manufacturer s specification of flare (temperature, flow rate of residual gas at the inlet of the flare) will be performed. If in a specific hour any of the parameters are out of the limit of manufacturer s specifications, a 50% default value for the flare efficiency will be used for the calculations for this specific hour. 40

41 Project emissions from flaring are calculated as the sum of emissions from each hour h, based on the methane flow rate in the residual gas (TMRG,h) and the flare efficiency during each hour h ( hflare,h), as follows: 7200 PE flare, y = TM RG, h (1 h 1 flare, h GWPCH ) Where: PEflare,y = Project emissions from flaring of the residual gas stream in year y, tco 2 e TM RG, h = Mass flow rate of methane in the residual gas in the hour h, Kg/h = 232 kg/h (Calculated on the basis of estimated emission of methane of 1671 tonnes per annum and 300 working days per annum) η flare, h = Flare efficiency in hour h = 90% GWP CH4 = Global Warming Potential of methane valid for the commitment period = 21 tco 2 e/tch 4 Adopting these values in the formula, PE flare, y = 7200 ( 232 x 0.1 x 21/ 1000) = = 3508 t CO 2 e Methane emissions from biomass stored under anaerobic conditions which does not take place in the baseline situation PEbiomass,y There would be no emissions due to this component in the project activity. Hence, total project activity emissions, PEy PEy = PE power, y + PE ww,,treatment, y + PE s, treatment, y + PE ww, discharge, y + PE s, final, y + PE,fugitive, y + PE flare, y + PE biomass, y = = 7936 t CO 2 / year 41

42 B.6.4 Summary of the ex-ante estimation of emission reductions: The estimated baseline emissions, project emissions and the emission reductions of the project activity are tabulated in the table B. 6.2 below: Table B.6.2 Ex ante estimation of emission reductions Year Estimation of Estimation of Estimation of Estimation of project activity baseline leakage overall emission emissions emissions (t CO 2 e) reductions (t CO 2 e) (t CO 2 e) (t CO 2 e) Total 793,60 383, (tonnes of CO 2 e) 42

43 B.7 Application of a monitoring methodology and description of the monitoring plan: The data monitored and required for verification and issuance will be kept for minimum of two years after the end of crediting period or the last issuance of CERs for this project activity whichever occurs later. B.7.1 Data and parameters monitored: (Copy this table for each data and parameter) Data / Parameter: Q y, ww Data unit: M 3 Description: Volume of wastewater entering the wastewater treatment plant Source of data to be Actual measurements used: Value of data: Value of data would be used to calculate project emissions Description of measurement methods and procedures to be Flow meter would be used to measure the volume of wastewater entering the treatment plant and readings would be recoded and archived electronically for the entire crediting period and two years thereafter. applied: QA/QC procedures to Flow meters would be calibrated as per manufacturer s prescribed standards. be applied: Any comment: - Data / Parameter: COD y, ww, untreated Data unit: ton / m 3 Description: Chemical Oxygen Demand of the untreated wastewater Source of data to be Actual measurements in the in-house lab. used: Value of data: Value of data would be used to calculate project emissions Description of measurement methods and procedures to be applied: emissions. QA/QC procedures to be applied: Any comment: - COD would be analyzed in the in-house lab by internationally accepted standards and archived electronically for the entire crediting period and two years thereafter. Average monthly values would be adopted for estimation of COD of the untreated wastewater would be analyzed in external accredited laboratories once in 3 months. Data / Parameter: COD y, ww, treated Data unit: ton / m 3 Description: Chemical Oxygen Demand of the wastewater leaving the digesters/ entering lagoons 43

44 Source of data to be Actual measurements in the in-house lab. used: Value of data: Value of data would be used to calculate project emissions Description of measurement methods and procedures to be applied: emissions. QA/QC procedures to be applied: Any comment: - COD would be analyzed in the in-house lab by internationally accepted standards and archived electronically for the entire crediting period and two years thereafter. Average monthly values would be adopted for estimation of COD of the untreated wastewater would be analyzed in external accredited laboratories once in 3 months. Data / Parameter: GWP_CH4 Data unit: ton CO2 e / ton CH4 Description: Global Warming Potential of methane Source of data to be IPCC default value used: Value of data: 21 Description of Data is required to estimate all emission calculations measurement methods and procedures to be applied: QA/QC procedures to - be applied: Any comment: If there is any revision in IPCC default value of GWP_CH4, same would be adopted. Data / Parameter: Data unit: Description: Source of data to be used: Value of data: Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: - E y, consumed MWh/day Electricity consumed per day Actual measurements Data is required to estimate project activity emissions for estimating emissions due to electricity consumed by the facilities in the wastewater treatment plant. Monthly electricity consumption data of the installations in the wastewater treatment plant shall be recorded. Electricity meters would be calibrated as per standards. 44

45 Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment - EF y ton CO2/ MWh Electricity baseline emission factor of the grid Website of Central Electricity Authority. Data is required to estimate project activity emissions due to electricity consumed by the by the facilities in the wastewater treatment. Not applicable Not applicable Data / Parameter: Q y, biogas Data unit: M 3 /h Description: Volumetric flow rate of the residual gas in dry basis at normal conditions in the hour h. Volumetric flow rate of the residual gas in dry basis at normal conditions in the hour h Source of data to be used: Measurements by project participants using a flow meter Value of data - Description of The data would be measured by continuous flow meters and recorded. The measurement methods data would be electronically archived for the entire crediting period and two and procedures to be years thereafter. The same basis (dry or wet) is considered for this applied: measurement and the measurement of volumetric fraction of methane in the residual gas when the residual gas temperature exceeds 60 ºC QA/QC procedures to Flow meters would be calibrated as per manufacturer s recommendations. be applied: Any comment - Data / Parameter: C CH4 Data unit: % Description: Methane content in the biogas Source of data to be used: Actual measurements Value of data Data would be used to estimate methane content in the biogas generated and the baseline emissions Description of The methane content of the biogas would be measured once in a month by measurement methods internationally accepted methods. Average value would be used for estimation and procedures to be of methane content and baseline emissions. The data would be electronically applied: archived for the entire crediting period and two years. QA/QC procedures to - be applied: 45

46 Any comment The data would be also used to calculate project emissions due to incomplete flaring Data / Parameter: P CH4 Data unit: kg /cm 2 Description: Pressure of the biogas Source of data to be used: Actual measurements Value of data Data would be used to estimate density of the biogas to calculate the baseline emissions Description of measurement methods and procedures to be applied: The pressure of the biogas would be measured and recorded. Average value would be used for estimation of density of methane and baseline emissions. The data would be electronically archived for the entire crediting period and two years thereafter. QA/QC procedures to be applied: The instrument would be maintained as per as per manufacturer s recommendations. Any comment - Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment - T CH4 0 C Temperature of the biogas Actual measurement Data would be used to estimate density of the biogas to calculate the baseline emissions The temperature of the biogas would be measured and recorded. Average value would be used for estimation of density of methane and baseline emissions. The data would be electronically archived for the entire crediting period and two years thereafter. - Data / Parameter: D CH4 Data unit: Tons/ m 3 Description: Density of methane Source of data to be used: Actual measurement Value of data Data would be used to estimate density of the biogas to calculate the baseline emissions Description of measurement methods The data would be electronically archived for the entire crediting period and two years thereafter. and procedures to be applied: QA/QC procedures to - be applied: Any comment - 46

47 Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment - H flare Hours Number of hours of operation of flare Measured and Recorded Data would be used to estimate project emissions due to emissions of flare inefficiency. The number of hours of operation of flare would be recorded and electronically archived for the entire crediting period and two years thereafter. - Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment T flare 0 C Temperature in the exhaust gas of the flare Measured and Recorded Data would be used to estimate project emissions due to emissions of flare inefficiency. The temperature of the exhaust gas stream in the flare would be measured by a Type N thermocouple. A temperature above 500 ºC indicates that a significant amount of gases are still being burnt and that the flare is operating. Thermocouples should be replaced or calibrated every year. An excessively high temperature at the sampling point (above 700 ºC) may be an indication that the flare is not being adequately operated or that its capacity is not adequate to the actual flow. An excessively high temperature at the sampling point (above 700 ºC) may be an indication that the flare is not being adequately operated or that its capacity is not adequate to the actual flow. Data / Parameter: Data unit: Description: Source of data to be used: Value of data Other flare operation parameterse - This should include all data and parameters that are required to monitor whether the flare operates within the range of operating conditions according to the manufacturer s specifications including a flame detector in case of open flares. Measured and Recorded Data would be used to estimate project emissions due to emissions of flare inefficiency. 47

48 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment - - Applicable as default value of flare efficiency is used. Data / Parameter: S y, generated Data unit: Tonnes Description: Quantity of final sludge from UASB reactors Source of data to be used: Actual measurement Value of data Monitored to neglect the emissions due to decay of this sludge Description of Weight of final sludge would be determined. measurement methods and procedures to be applied: QA/QC procedures to - be applied: Any comment - Data / Parameter: S y, composted Data unit: Tonnes Description: Quantity of final sludge from UASB reactors sent to compost yard Source of data to be used: Actual measurement Value of data Monitored to neglect the emissions due to decay of this sludge Description of Weight of final sludge would be determined before dumped to compost yard. measurement methods and procedures to be applied: QA/QC procedures to - be applied: Any comment - B.7.2 Description of the monitoring plan: The project is operated and managed by SDSSK who is the project proponent. The project activity is located in the premises of sugar mill and distillery complex. Managing Director is the overall head of operations of the complex. Distillery Manager is in charge of operations of the distillery and its wastewater treatment plant including methane recovery system and other facilities in the wastewater treatment plant. 48

49 The operation and maintenance of the wastewater treatment plant is assigned to a team of 11 members. Out of this there will be 3 chemists (1 in each shift), 2 technicians (1 for mechanical and 1 for electrical), and 6 plant operators (2 in each shift). Training of personnel M/s Sucrotech Equipments the technology provider for the methane recovery system, has trained the personnel of SDSSK in operation, trouble shooting and maintenance of the methane recovery system. During training period SDSSK personnel were trained in operation, maintenance, trouble shooting, analysis of operating parameters, measuring COD, analysis of biogas and other safety measures of the anaerobic digestion plant. The plant operators run the plant on a day today basis and are assisted by two technicians for maintenance of mechanical and electrical installations in the plant. A chemist with graduate/postgraduate qualification in chemistry would be available in each shift for analysis of all operating parameters like COD, biogas etc. The technicians will be responsible for maintenance of equipment and installations in the anaerobic digestion plant. Any break down shall be recorded with details like type of break down, trouble shooting done, etc., and verified by the Distillery Manager. Data monitoring Records shall be maintained for quantity of waste water entering the digesters/day, its COD, gas flowing to heating equipment, gas to flare etc., All these records shall be verified by Distillery Manager and after verification and approval shall be maintained in electronic form as per monitoring methodology. The records shall be maintained in office cum laboratory of the anaerobic digestion plant. A back up shall be created in electronic form for all the records and maintained for two years after last issuance of CERs. The monitoring parameters like COD of wastewater entering digesters, COD of wastewater leaving the digesters, flow of wastewater entering digesters, methane content of biogas etc., shall be measured and recorded by the chemists. These parameters shall be checked by Distillery Manager. After approval by the Distillery Manager, these values shall be maintained in electronic form till two years after the last issuance of CERs. QA/QC procedures All instruments like wastewater flow meter, gas flowmeter, temperature and pressure measuring instruments, Gas analyser shall be calibrated as per manufacturers recommendations. The flowmeters shall be calibrated as per international/ manufacturers recommendations. Internal Audits 49

50 All reported results and measurements shall be periodically reviewed by Managing Director and any discrepancy shall be corrected with authorization from Managing Director. Emergency The project activity does not have any operation that would result emergency emissions. Hence, there is no data monitored for emergency preparedness. M/s Sucrotech Equipments shall train the SDSSK staff in all emergency requirements. The staff shall be trained in operation and maintenance of fire fighting equipments like fire extinguishers. The emergencies can be leakage of biogas from gas holders, other gas handling equipment like gas cleaning system, gas blowers. Although all the equipment, piping and instrumentation are explosion proof and gas tight, emergencies can happen. The staff shall be trained to feel such leakages and immediately rectify the leakage areas. B.8 Date of completion of the application of the baseline and monitoring methodology and the name of the responsible person(s)/entity(ies) Date of completion of application of the baseline and monitoring methodology :25/11/2008 Name of person/entity determining the baseline: M/s Prachi Services has assisted the project proponent in determining the application of baseline methodology for the identified CDM project. Organization: Street/P.O. Box: Building: City: State/Region: Prachi Services Natwar Nagar Rd. No. 1, Jogeshwari(East) B-36, Dhake park Mumbai Maharshtra Postcode/ZIP Country India Telephone Fax URL Represented by: Title: Salutation: Dr. Consultant 50

51 Last Name: Kulkarni Middle Name: Madhav First Name: Milind Department: Mobile: Direct Fax: Direct tel: Personal SECTION C. Duration of the project activity / crediting period C.1 Duration of the project activity: C.1.1. Starting date of the project activity: 08/05/2007 The starting date of CDM project activity is the date on which the implementation or construction or real action of a project activity begins. The work order for the biodigester was placed with M/s Sucrotech Equipments, Pune on this date. This indicates the beginning of a real action for the implementation of the project activity and therefore it is taken as the start date of the project activity. C.1.2. Expected operational lifetime of the project activity: 12y-0m C.2 Choice of the crediting period and related information: The project will use Fixed Crediting period. C.2.1. Renewable crediting period Not applicable C Starting date of the first crediting period: Not applicable 51

52 C Length of the first crediting period: Not applicable Yes. C.2.2. Fixed crediting period: C Starting date: 01/05/2009 or the date of registration whichever is earlier.. C Length: 10y-0m SECTION D. Environmental impacts The Environmental Impact Assessment is not required by the Environmental Impact Assessment notification under Environment Act (Protection) of Government of India and hence not conducted as per the requirement of guidelines there under. This assessment is conducted for M/s Shri Dnyaneshwar Sahakari Sakhar Karkhana Ltd. as a voluntary initiative to understand the impacts that may arise due to the project activity and mitigate them. All necessary safety and environmental requirements of relevant Indian legislation would be met for the facilities implemented or planned. As mentioned, SDSSK management has proactively considered alleviating climate change impacts considering CDM benefits and have taken risks to propose technology measures over and above traditional processes. Thus the following benefits would accrue from this project:- Reduction of a high global warming gas (methane) emissions Reduction in GHG emissions from combustion of fossil fuel Conservation of fossil fuel Reduction of environmental deterioration due to extraction Mitigation of odour and ground water contamination Avoidance of land use change for wastewater treatment As the project activity deals with the methane recovery from wastewater treatment, it does not have major environmental concerns. 52

53 D.1. If required by the host Party, documentation on the analysis of the environmental impacts of the project activity: The Environmental Impact Assessment is not required by the Environmental Impact Assessment notification under Environment Act (Protection) of Government of India and hence not conducted as per the requirement of guidelines there under. 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: Not Applicable SECTION E. Stakeholders comments E.1. Brief description how comments by local stakeholders have been invited and compiled: The stakeholders for the project activity were identified at the outset by a team of SDSSK staff and the stakeholders were duly informed of the consultation meeting. In addition public notices were also issued for the local stakeholder consultation meeting. Local stakeholder consultation meeting to discuss stakeholder concerns on the proposed Clean Development Mechanism (CDM) initiatives at SDSSK, was held at 2.00 pm hours on 09/05/2008 at Factory Village- Bhende, Taluka- Newasa, Dist- Ahmednagar, Maharashtra, India 53

54 E.2. Summary of the comments received: Stakeholders concerns/questions/comments What is Green House Effect? How this project will reduce the GHGs emissions? How are you contributing to the development of neighbouring areas? What would be the employment generation from this project? Answer/Clarifications The temperature of the earth is increasing due to ever increasing emission of gases like Carbon dioxide, methane, Perflurocarbon(PFC), Chloroflurocarbon (CFC) etc. This effect is called as Green House Effect. Due to this, ice caps will melt and this will cause large scale flooding and other adverse climate change effects, Collection of biogas in bio-digester and its flaring reduces the amount of methane that would have released into air through open anaerobic lagoon. SDSSK is instrumental in starting a school and college for the children in the rural area. Apart from this SDSSK has contributed in providing better infrastructure for this rural area in the form of roads, lift irrigation schemes for the farmers, tree plantation and other such efforts. The project activity has created different types of regular employment for 93 persons. In addition, the project activity provided direct and indirect employment generation opportunities for more than 100 different persons for different types of works for different periods of duration during the construction period of the project activity ( ). 54