Draft baseline and monitoring methodology AM00XX. Air separation using cryogenic energy recovered from the vaporization of LNG

Transcription

1 Fort-fourth meeting Draft baseline and monitoring methodolog AM00XX Air separation using crogenic energ recovered from the vaporization of LNG I. SOURCE, DEFINITIONS AND APPLICABILITY Sources This baseline and monitoring methodolog is based on the following proposed new methodolog: NM0313 Air separation using crogenic energ of LNG, prepared b Global Climate Change Institute of the Tsinghua Universit, China Datang Corporation, China National Offshore Oil Corp. Energ Technolog & Services Limited and ECO-TEC ASIA (BEIJING) CO., LTD This methodolog also refers to the latest approved versions of the following tools: Tool to calculate project or leakage CO 2 emissions from fossil fuel combustion; Tool to calculate baseline, project and/or leakage emissions from electricit consumption; Combined tool to identif the baseline scenario and demonstrate additionalit. For more information regarding the proposed new methodologies and the tools as well as their consideration b the CDM Executive Board (the Board) please refer to < Selected approach from paragraph 48 of the CDM modalities and procedures Existing actual or historical emissions, as applicable and/or Emissions from a technolog that represents an economicall attractive course of action, taking into account barriers to investment. Definitions For the purpose of this methodolog, the following definitions appl: Liquefied natural gas (LNG). Liquefied natural gas is natural gas (predominantl methane, CH 4 ) that has been converted temporaril to liquid form for ease of storage or transport. Crogenic energ. Crogenic energ is an exerg contained in low temperature materials such as liquefied gases. Air separation. Air separation is the process whereb air is separated into its individual gases (such as O 2, N 2, Ar). New air separation plant. A new air separation plant is a newl constructed air separation plant that has no operational histor. New LNG vaporization plant. For the purpose of this methodolog, a new LNG vaporization plant is (i) a newl constructed LNG vaporization plant with no operational histor or (ii) a recentl constructed LNG 1/38

2 Fort-fourth meeting vaporization plant that does not et have an operational histor of at least three ears at the start of the project activit. Existing LNG vaporization plant. For the purpose of this methodolog, an existing LNG vaporization plant is a LNG vaporization plant that has an operational histor of at least three ears at the start of the project activit. Applicabilit This methodolog is applicable to project activities that consist of the construction and operation of a new air separation plant that utilizes the crogenic energ recovered from a LNG vaporization plant. The LNG vaporization plant can be new or existing. This methodolog is applicable under the following conditions: (a) The new air separation plant meets its cooling energ demand totall or partiall from recovered crogenic energ from a LNG vaporization plant; (b) The purit of the oxgen and nitrogen produced b the new air separation plant is equal to or higher than 99.5%; 1 (c) The new air separation plant is located at the same site as the LNG vaporization plant from which the crogenic energ is recovered. Therefore, the crogenic energ carrier is not stored or freighted to a different site; (d) It is possible to operate the new air separation plant both with or without the use of crogenic energ from the LNG vaporization plant. Hence, the operational tests during the commissioning of the plant, as required for the determination of baseline parameters, can be conducted; (e) The technolog emploed at the new air separation plant during time periods when crogenic energ from the LNG vaporization plant is not available should be the same technolog as the one identified in the selection of the baseline scenario as per the Procedure for the selection of the baseline scenario and demonstration of additionalit section hereunder. 2 Moreover, during these time periods, the air separation plant is capable to provide the same amount and qualit of air separation products as when operated with crogenic energ from the LNG vaporization plant; (f) In case that the LNG vaporization plant is new, it is possible to operate the plant both with or without the recover of crogenic energ. Hence, the operational tests during the commissioning of the plant, as required for the determination of baseline parameters, can be conducted; (g) The technolog emploed at the LNG vaporization plant during time periods when crogenic energ from the LNG vaporization plant is not utilized b the air separation plant, should be the same technolog as one identified in the selection of the baseline scenario as per the Procedure for the selection of the baseline scenario and demonstration of additionalit section hereunder This threshold on the purit of the air separation plant products ensures that crogenic energ is required in the process, as this level of purit can onl be reached through the use of crogenic energ. This provision is required as the baseline emissions are calculated for the same tpe of technolog as the one deploed in the project activit during time periods where crogenic energ is not available, and not for a hpothetical baseline technolog. 2/38

3 Fort-fourth meeting In the case of an existing LNG vaporization plant, the following conditions also appl: (a) The existing practice for the vaporization of LNG is to utilize either: (i) Heating vaporizers where heat is generated b the combustion of fossil fuels, such as submerged combustion vaporizers, or the consumption of electricit, such as electric heaters; (ii) Ambient vaporizers where the heat comes from the ambient water or air, such as open rack vaporizers or ambient-air vaporizers; or (iii) A mix of (i) and (ii). (b) The crogenic energ from the existing LNG vaporization plant was not utilized for useful purposes and was being wasted prior to the implementation of the project activit. This shall be demonstrated b both of the following evidences: Design specifications and laout diagrams. The project participants should present the design specifications and laout diagrams of the LNG vaporization plant as provided b the manufacturer, and, where applicable, the design specifications and laout diagrams resulting from an subsequent modifications to the plant undertaken prior to the implementation of the project activit, showing that the crogenic energ was wasted; and On-site check. The DOE shall conduct an on-site check prior to the implementation of the project activit that confirms that no equipment for the recover and utilization of crogenic energ was installed prior to the implementation of the project activit. (c) The project activit does not result in significant changes in the qualit or quantit of outputs of the existing LNG vaporization plant. The compliance with this condition is to be supported b: (i) Historical and present sales records, and (ii) Historical and present production records that include the chemical composition and energ content of the marketable products. In addition, the applicabilit conditions included in the tools referred to above appl. Finall, this methodolog is onl applicable if the most plausible baseline scenario, as identified per the Procedure for the selection of the baseline scenario and demonstration of additionalit section hereunder, is: (d) For new LNG vaporization: Scenario V3; or Scenario V2 onl if the installed capacit of the LNG vaporization plant is equal to or higher than 1.0 billion cubic feet per da (bcfd). 3 (e) For existing LNG vaporization: scenario V2 or V3; and (f) For air separation: scenario S2, S3 or S4. 3 This provision ensures that the selection of the LNG vaporization technolog, for a new plant that uses fossil fuels or electricit instead of ambient heat, is driven b market and ambient conditions, due to the plant s production scale, and is not driven b the CDM revenue. 3/38

4 Fort-fourth meeting II. BASELINE METHODOLOGY PROCEDURE Project boundar The spatial extent of the project boundar encompasses: (a) The LNG vaporization plant; (b) The air separation plant; (c) The power plants connected to the grid which supplied electricit to the project activit. Simplified diagrams of the baseline and project scenarios are presented in Figures 1 and 2. Figure 1: Diagram of the baseline scenario 4/38

5 Fort-fourth meeting Figure 2: Diagram of the project activit The greenhouse gases included in or excluded from the project boundar are shown in Table 1. Table 1: Overview on emission sources included in or excluded from the project boundar Source Gas Included? Justification / Explanation Baseline Scenario Emissions from fossil fuel combustion for LNG vaporization Emissions from electricit consumption for LNG vaporization Emissions from fossil fuel combustion for air separation Emissions from electricit consumption for air separation CO 2 Yes Main emission source CH 4 No Excluded for simplification. This is conservative N 2 O No Excluded for simplification. This is conservative CO 2 Yes Main emission source CH 4 No Excluded for simplification. This is conservative N 2 O No Excluded for simplification. This is conservative CO 2 Yes Main emission source CH 4 No Excluded for simplification. This is conservative N 2 O No Excluded for simplification. This is conservative CO 2 Yes Main emission source CH 4 No Excluded for simplification. This is conservative N 2 O No Excluded for simplification. This is conservative 5/38

6 Fort-fourth meeting Project Activit CO 2 Yes Main emission source Emission from fossil fuel combustion for LNG vaporization CH 4 No Excluded for simplification and air separation N 2 O No Excluded for simplification Emission from electricit consumption for LNG vaporization and air separation CO 2 Yes Main emission source CH 4 No Excluded for simplification N 2 O No Excluded for simplification Procedure for the selection of the baseline scenario and demonstration of additionalit The selection of the baseline scenario and the demonstration of additionalit should be conducted using the latest approved version of the Combined tool to identif the baseline scenario and demonstrate additionalit. The following additional guidance should be used when appling the tool: When appling sub-step 1(a) of the tool, alternative scenarios should be separatel determined for: (a) LNG vaporization; and (b) Air separation. Identif all alternative scenarios that provide outputs or services, i.e. vaporization of LNG (including the possible use of the associated crogenic energ) and products of air separation process, with comparable qualit as the proposed CDM project activit. For the purpose of identifing relevant alternative scenarios, provide an overview of other technologies or practices used for LNG vaporization and air separation that have been implemented prior to the start of the project activit or are currentl underwa in the countr. Alternative scenarios for LNG vaporization The alternative scenarios for LNG vaporization should include, inter alia: V1: The proposed project activit not undertaken as a CDM project activit; V2: The use of heating vaporizers where heat is generated b the combustion of fossil fuels, such as submerged combustion vaporizers, or the consumption of electricit, such as electric heaters, and no utilization of the crogenic energ from the LNG; V3: The use of ambient vaporizers where the heat comes from the ambient water or air, such as open rack vaporizers or ambient-air vaporizers, and no utilization of the crogenic energ from the LNG; V4: ` The use of process vaporizers where heat comes from thermal or chemical processes other than the air separation process which utilizes the crogenic energ of LNG, such as power plants, cogeneration plants, or chemical processes. Alternative scenarios for air separation The alternative scenarios for air separation should include, inter alia: S1: The proposed project activit not undertaken as a CDM project activit; 6/38

7 Fort-fourth meeting S2: Air separation through crogenic liquefaction process using vapour compression refrigerators (driven b electric motors); S3: Air separation through crogenic liquefaction process using vapour compression refrigerators (driven b turbines/engines that combust fossil fuels); S4: Air separation through crogenic liquefaction process using absorption refrigerators/chillers that combust fossil fuels. Emission Reductions Emission reductions are calculated as follows: ER = BE PE LE (1) Where: ER = Emissions reductions in ear (tco 2 ) BE = Baseline emissions in ear (tco 2 ) PE = Project emissions in ear (tco 2 ) LE = Leakage emissions in ear (tco 2 ) Baseline Emissions Baseline emissions are calculated as: BE = BE + BE (2) VP, AS, Where: BE = Baseline emissions in ear (tco 2 ) BE VP, = Baseline emissions from LNG vaporization in ear (tco 2 ) BE AS, = Baseline emissions from air separation in ear (tco 2 ) Step 1: Determination of BE VP, Case 1.A: The baseline scenario is the use of ambient vaporizers If the baseline scenario for LNG vaporization is identified as V3, then the baseline emissions from LNG vaporization (BE VP, ) are conservativel regarded as 0. 4 Case 1.B: The baseline scenario is the use of heating vaporizers based on fossil fuels or electricit If the baseline scenario for LNG vaporization is identified as V2, the baseline emissions from LNG vaporization should be calculated as: BE = BE + BE VP, VP,EL, VP,FF, (3) 4 If the project participants wish to determine baseline emissions from this scenario, the can propose a request for revision to the methodolog, providing equations to calculate baseline emissions from the various tpes of vaporizers where heat comes from the ambient water or air. 7/38

8 Fort-fourth meeting Where: BE VP, = Baseline emissions from LNG vaporization in ear (tco 2 ) BE VP,EL, = Baseline emissions from electricit consumption for LNG vaporization in ear (tco 2 ) BE VP,FF, = Baseline emissions from combustion of fossil fuels for LNG vaporization in ear (tco 2 ) Sub-step 1.B.1: Determination of BE VP,EL, Baseline emissions from electricit consumption for LNG vaporization in ear (BE VP,EL, ) should be calculated as follows: BE = BE VP,EL, EC, (4) Where: BE VP,EL, = Baseline emissions from electricit consumption for LNG vaporization in ear (tco 2 ) BE EC, = Baseline emissions from electricit consumption in ear (tco 2 ). The baseline emissions from electricit consumption in ear (BE EC, ) shall be calculated as per the Tool to calculate baseline, project and/or leakage emissions from electricit consumption. When appling the tool, the parameter EC BL,k, in the tool shall be replaced b the electricit consumption for LNG vaporization, calculated as follows: EC BL, k, EC BL, VP, = kvp, EL mlng, = (5) Where: EC BL,VP, k VP,EL m LNG, = Baseline electricit consumption for LNG vaporization in ear (MWh) = Electricit consumption rate for LNG vaporization in the baseline scenario (MWh/tonne of LNG) = Amount of LNG vaporized in the project activit in ear (tonne) Determination of k VP,EL at a new LNG vaporization plant If the project activit is implemented at a new LNG vaporization plant, the electricit consumption rate k VP,EL shall be determined as the minimum value between: (i) an ex-ante measurement during the commissioning of the new LNG vaporization plant b undertaking an operational test of the plant, and (ii) The electricit consumption in the baseline calculated based on the crogenic energ provided to the air separation plant and the electricit consumption of the LNG vaporization plant in the project activit in the ear of the crediting period. Hence, k VP,EL shall be calculated as follows: EC VP,com ECVP,CR, k VP,EL = MIN ; (6) m LNG,com m LNG, with 8760 [ ( HSLNG, out, h, HSLNG, in, h, ) LNGh, ] 3.6 h= 1 EC VP, CR, = + ECVP, PJ, ηvp, BL (7) 8/38

9 Fort-fourth meeting Where: k VP,EL = Electricit consumption rate for LNG vaporization in the baseline scenario (MWh/tonne of LNG) EC VP,com = Electricit consumption for vaporization of LNG during the operational test at the commissioning of the new LNG vaporization plant (MWh) EC VP,CR, = Electricit consumption for vaporization of LNG calculated based on the crogenic energ provided to the air separation plant and the electricit consumption of the LNG vaporization plant in the project activit during ear (MWh) EC VP,PJ, = Electricit consumption for LNG vaporization in the project activit in ear (MWh) HS LNG,out,h, = Average specific enthalp of the LNG stream at the outlet of the crogenic recover heat exchanger in the hour h of the ear (GJ/tonne of LNG) HS LNG,in,h, = Average specific enthalp of the LNG stream at the inlet of the crogenic recover heat exchanger in the hour h of the ear (GJ/tonne of LNG) LNG h, = Total amount of LNG that flows through the crogenic recover heat exchanger in the hour h of the ear (tonne) η VP,BL = Default efficienc of the energ conversion unit in the baseline vaporization plant m LNG,com = Amount of LNG vaporized during the operational test at the commissioning of the new LNG vaporization plant (tonne) m LNG, = Amount of LNG vaporized in the project activit in ear (tonne) h = Hour 5 in ear of the crediting period 3.6 = conversion factor from GJ to MWh The parameters EC VP,com and m LNG,com should be audited b an independent engineering firm, present during the operational test. The operational test should be conducted following all operational specifications from the manufacturer, with no recover of crogenic energ, and at optimum operational conditions of the plant. Determination of k VP,EL at an existing LNG vaporization plant If the project activit is implemented at an existing LNG vaporization plant, the electricit consumption rate k VR,EL shall be determined as the minimum value between: (i) The historical data from the most recent three ears prior to the implementation of the project activit, and (ii) The electricit consumption in the baseline calculated based on the crogenic energ provided to the air separation plant and the electricit consumption of the LNG vaporization plant in the project activit in the ear of the crediting period. Hence, k VR,EL shall be calculated as follows: 3 ECVP,x EC x= 1 VP,CR, k VP,EL = MIN ; 3 (8) m LNG, m LNG,x x= 1 5 For each hour when the LNG stream is not sent to the crogenic recover heat exchanger, the value of LNG h,, HS LNG,out,h, and HS LNG,in,h, should be zero. 9/38

10 with = 8760 [ ( HSLNG, out, h, HSLNG, in, h, ) LNGh, ] h= 1 EC VP, CR, ECVP, PJ, ηvp, BL Fort-fourth meeting (9) Where: k VP,EL = Electricit consumption rate for LNG vaporization in the baseline scenario (MWh/tonne of LNG) EC VP,x = Historical electricit consumption for LNG vaporization in ear x prior to the implementation of the CDM project activit (MWh) EC VP,CR, = Electricit consumption for vaporization of LNG calculated based on the crogenic energ provided to the air separation plant and the electricit consumption of the LNG vaporization plant in the project activit during ear (MWh) EC VP,PJ, = Electricit consumption for LNG vaporization in ear (MWh) HS LNG,out,h, = Average specific enthalp of the LNG stream at the outlet of the crogenic recover heat exchanger in the hour h of the ear (GJ/tonne of LNG) HS LNG,in,h, = Average specific enthalp of the LNG stream at the inlet of the crogenic recover heat exchanger in the hour h of the ear (GJ/tonne of LNG) LNG h, = Total amount of LNG that flows through the crogenic recover heat exchanger in the hour h of the ear (tonne) η VP,BL = Default efficienc of the energ conversion unit in the baseline vaporization plant m LNG,x = Amount of LNG vaporized at the project site in ear x prior to the implementation of the project activit (tonne) m LNG, = Amount of LNG vaporized in the project activit in ear (tonne) x = The most recent three ears prior to the implementation of the project activit h = Hour 6 in ear of the crediting period 3.6 = conversion factor from GJ to MWh Sub-step 1.B.2: Determination of BE VP,FF, Baseline emissions from the combustion of fossil fuels for LNG vaporization should be calculated as follows: BE VP,FF, Where: BE VP,FF, k VP,FF m LNG, = k VP,FF m LNG, = Baseline emissions from combustion of fossil fuels for LNG vaporization in ear (tco 2 ) = Emission intensit of LNG vaporization from the use of fossil fuels in the baseline scenario (tco 2 /tonne of LNG) = Amount of LNG vaporized in the project activit in ear (tonne) (10) 6 For each hour when the LNG stream is not sent to the crogenic recover heat exchanger, the value of LNG h,, HS LNG,out,h, and HS LNG,in,h, should be zero. 10/38

11 Fort-fourth meeting Determination of k VP,FF at a new LNG vaporization plant If the project activit is implemented at a new LNG vaporization plant, the emission intensit of LNG vaporization from the use of fossil fuels in the baseline scenario shall be determined as the minimum value between: (i) An ex-ante measurement during the commissioning of the new LNG vaporization plant b undertaking an operational test of the plant, and (ii) The fossil fuels consumption in the baseline calculated based on the crogenic energ provided to the air separation plant and the fossil fuels consumption of the LNG vaporization plant in the project activit in the ear of the crediting period. Hence, k VP,FF shall be calculated as follows: k VP FF VP, com NCVVP, com EFVP, com FFVP, BL, NCVVP, EFVP,, FF = MIN ; (11) mlng, com mlng, with 8760 [ ( HSLNG, out, h, HSLNG, in, h, ) LNGh, ] h = = 1 FF VP, BL, + FFVP, i, NCV η i VP, VP, BL (12) Where: k VP,FF = Emission intensit of LNG vaporization process from the use of fossil fuels in the baseline scenario (tco 2 /tonne of LNG) FF VP,com = Amount of fossil fuels for vaporization of LNG during the operational test at the commissioning of the new LNG vaporization plant (volume or mass unit) FF VP,BL, = Amount of fossil fuels that would be used for LNG vaporization in the baseline during ear (volume or mass unit) FF VP,i, = Amount of fossil fuel tpe i used for LNG vaporization in the project activit in ear (volume or mass unit) NCV VP,com = Average net calorific value of the least carbon intensive fossil fuel combusted during the operational test at the commissioning of the new LNG vaporization plant (GJ per volume or mass unit) NCV VP, = Average net calorific value of the least carbon intensive fossil fuel used for LNG vaporization in ear (GJ per volume or mass unit) EF VP,com = CO 2 emission factor of the least carbon intensive fossil fuel among the fuel identified in the baseline selection, the fuel specified b the manufacturer, the project fuel and the fuel used during the operational test run at the commissioning of the new LNG vaporization plant (tco 2 /GJ) EF VP, = CO 2 emission factor of the least carbon intensive fossil fuel used for LNG vaporization in ear (tco 2 /GJ) HS LNG,out,h, = Average specific enthalp of the LNG stream at the outlet of the crogenic recover heat exchanger in the hour h of the ear (GJ/tonne of LNG) HS LNG,in,h, = Average specific enthalp of the LNG stream at the inlet of the crogenic recover heat exchanger in the hour h of the ear (GJ/tonne of LNG) LNG h, = Total amount of LNG that flows through the crogenic recover heat exchanger in the hour h of the ear (tonne) = Default efficienc of the energ conversion unit in the baseline vaporization plant η VP,BL 11/38

12 Fort-fourth meeting m LNG,com m LNG, h i = Amount of LNG vaporized during the operational test at the commissioning of the new LNG vaporization plant (tonne) = Amount of LNG vaporized in the project activit in ear (tonne) = Hour 7 in ear of the crediting period = All fossil fuel tpes used for air separation in ear The parameters FF VP,com and m LNG,com should be audited b an independent engineering firm, present during the operational test. The operational test shall be conducted following all operational specifications from the manufacturer, with no recover of crogenic energ, and at optimum operational conditions of the plant. Determination of k VP,FF at an existing LNG vaporization plant If the project activit is implemented at an existing LNG vaporization plant, the emission intensit of LNG vaporization from the use of fossil fuels in the baseline scenario shall be determined as the minimum value between: (i) The historical data from the most recent three ears prior to the implementation of the project activit, and (ii) The fossil fuels consumption in the baseline calculated based on the crogenic energ provided to the air separation plant and the fossil fuels consumption of the LNG vaporization plant in the project activit in the ear of the crediting period. Hence, k VP,FF shall be calculated as follows: k VP 3 FFVP, i, x NCVi, x EFi, x FF = VP BL NCVVP EF x 1 i,,, VP,, FF = MIN ; (13) 3 mlng, mlng, x x= 1 with, 8760 [ ( HSLNG, out, h, HSLNG, in, h, ) LNGh, ] h = = 1 FF VP, BL, + FFVP, i, NCV η i VP, VP, BL (14) Where: k VP,FF FF VP,i,x FF VP,BL, FF VP,i, = Emission intensit of LNG vaporization process from the use of fossil fuels in the baseline scenario (tco 2 /tonne of LNG) = Amount of fossil fuel i used for LNG vaporization in ear x prior to the implementation of the CDM project activit (volume or mass unit) = Amount of fossil fuels that would be used for LNG vaporization in the baseline during ear (volume or mass unit) = Amount of fossil fuel tpe i used for LNG vaporization in the project activit in ear (volume or mass unit) 7 For each hour when the LNG stream is not sent to the crogenic recover heat exchanger, the value of LNG h,, HS LNG,out,h, and HS LNG,in,h, should be zero. 12/38

13 Fort-fourth meeting NCV i,x = Average net calorific value of fossil fuel i used for LNG vaporization in ear x prior to the implementation of the CDM project activit (GJ per volume or mass unit) NCV VP, = Average net calorific value of the least carbon intensive fossil fuel used for LNG vaporization in ear (GJ per volume or mass unit) EF i,x = CO 2 emission factor of fossil fuel i used for LNG vaporization in ear x prior to the implementation of the CDM project activit (tco 2 /GJ) EF VP, = CO 2 emission factor of the least carbon intensive fossil fuel used for LNG vaporization in ear (tco 2 /GJ) HS LNG,out,h, = Average specific enthalp of the LNG stream at the outlet of the crogenic recover heat exchanger in the hour h of the ear (GJ/tonne of LNG) HS LNG,in,h, = Average specific enthalp of the LNG stream at the inlet of the crogenic recover heat exchanger in the hour h of the ear (GJ/tonne of LNG) LNG h, = Total amount of LNG that flows through the crogenic recover heat exchanger in the hour h of the ear (tonne) η VP,BL = Default efficienc of the energ conversion unit in the baseline vaporization plant m LNG,x = Amount of LNG vaporized at the project site in ear x prior to the implementation of the project activit (tonne) m LNG, = Amount of LNG vaporized in the project activit in ear (tonne) x = The most recent three ears prior the implementation of the project activit h = Hour 8 in ear of the crediting period i = All fossil fuel tpes used for air separation in ear Step 2: Determination of BE AS, Case 2.A: The baseline scenario is the use of electricall-driven equipment for air separation If the baseline scenario is identified as S2, the baseline emissions from air separation should be calculated using the latest version of the Tool to calculate baseline, project and/or leakage emissions from electricit consumption, as follows: BE = BE AS, EC, (15) Where: BE AS, = Baseline emissions from air separation in ear (tco 2 ) BE EC, = Baseline emissions from electricit consumption in ear (tco2). The baseline emissions from electricit consumption in ear (BE EC, ) shall be calculated as per the Tool to calculate baseline, project and/or leakage emissions from electricit consumption. When appling the tool, the parameter EC BL,k, in the tool should be replaced b the electricit consumption for air separation calculated as follows: EC BL,k, = EC = k m (16) AS, AS,EL AS, 8 For each hour when the LNG stream is not sent to the crogenic recover heat exchanger, the value of LNG h,, HS LNG,out,h, and HS LNG,in,h, should be zero. 13/38

14 Fort-fourth meeting Where: EC AS, k AS,EL m AS, = Electricit consumption for the air separation process in the baseline during ear (MWh) = Electricit consumption rate of air separation (MWh/Nm 3 or MWh/tonne) = Amount of air separation products produced in the project activit in ear (Nm 3 or tonne) Determination of k AS,EL The electricit consumption rate of air separation shall be determined as the minimum value between: (i) An ex ante measurement during the commissioning of the new air separation plant b undertaking an operational test of the plant, and (ii) The electricit consumption in the baseline calculated based on the crogenic energ provided to the air separation plant and the electricit consumption of the air separation plant in the project activit in the ear of the crediting period. Hence, k AS,EL shall be calculated as follows: EC AS, com ECAS,BL, k AS, EL, = MIN ; (17) mas, com mas, with = 8760 [ ( HSLNG, out, h, HSLNG, in, h, ) LNGh, ] h= 1 EC AS, BL, ECAS, PJ, η AS, BL (18) Where: k AS,EL, = Electricit consumption rate of air separation in ear (MWh/Nm 3 or MWh/tonne) EC AS,com = Electricit consumption for air separation during the operational test at the commissioning of the new air separation plant (MWh) EC AS,BL, = Energ that would be consumed for air separation in the baseline during ear (MWh) EC AS,PJ, = Electricit consumption for air separation in ear (MWh) HS LNG,out,h, = Average specific enthalp of the LNG stream at the outlet of the crogenic recover heat exchanger in the hour h of the ear (GJ/tonne of LNG) HS LNG,in,h, = Average specific enthalp of the LNG stream at the inlet of the crogenic recover heat exchanger in the hour h of the ear (GJ/tonne of LNG) LNG h, = Total amount of LNG that flows through the crogenic recover heat exchanger in the hour h of the ear (tonne) η AS,BL = Default efficienc of the energ conversion unit in the baseline air separation plant m AS,com = Amount of air separation products that has been produced during the operational test at the commissioning of the new air separation plant (Nm 3 or tonne) m AS, = Amount of air separation products produced in the project activit in ear (Nm 3 or tonne) h = Hour 9 in ear of the crediting period 9 For each hour when the LNG stream is not sent to the crogenic recover heat exchanger, the value of LNG h,, HS LNG,out,h, and HS LNG,in,h, should be zero. 14/38

15 Fort-fourth meeting 3.6 = conversion factor from GJ to MWh The parameters EC AS,com and m AS,com should be audited b an independent engineering firm, present during the operational test. The operational test should be conducted following all operational specifications from the manufacturer, with no recover of crogenic energ, and at optimum operational conditions of the plant. Case 2.B: The baseline scenario is the use of fossil-fuel-driven equipment for air separation If the baseline scenario is identified as being S3 or S4, the baseline emissions from air separation should be calculated as: BE AS, = k AS,FF m AS, (19) Where: BE AS, = Baseline emissions from air separation in ear (tco 2 ) k AS,FF = Emissions intensit for air separation due the use of fossil fuels in the baseline (tco 2 /Nm 3 or tco 2 /tonne) m AS, = Amount of air separation products produced in the project activit in ear (Nm 3 or tonne) Determination of k AS,FF The parameter k AS,FF shall be determined as the minimum value between: (i) An ex ante measurement during the commissioning of the new air separation plant b undertaking an operational test of the plant, and (ii) The fossil fuels consumption in the baseline calculated based on the crogenic energ provided to the air separation plant and the fossil fuels consumption of the air separation plant in the project activit in the ear of the crediting period. Hence, k AS,EL shall be calculated as follows: k AS with, FF AS, com NCVAS, com EFAS, com FFAS, BL, NCVAS, EFAS,, FF = MIN ; (20) mas, com mas, 8760 [ ( HSLNG, out, h, HSLNG, in, h, ) LNGh, ] h = = 1 FF AS, BL, + FFAS, i, NCV η i AS, AS, BL (21) Where: k AS,FF FF AS,com FF AS,BL, FF AS,i, = Emissions intensit for air separation due the use of fossil fuels in the baseline (tco 2 /Nm 3 or tco 2 /tonne) = Amount of fossil fuels used for air separation during the operational test at the commissioning of the new air separation plant (volume or mass unit) = Amount of energ produced b combustion of fossil fuels that would be used for air separation in the baseline during ear (volume or mass unit) = Amount of fossil fuel tpe i used for air separation in the project activit in ear (volume or mass unit) 15/38

16 Fort-fourth meeting NCV AS,com = Average net calorific value of the least carbon intensive fossil fuel combusted during the operational test at the commissioning of the new air separation plant (GJ per volume or mass unit) NCV AS, = Average net calorific value of the least carbon intensive fossil fuel used for air separation in ear (GJ per volume or mass unit) EF AS,com = CO 2 emission factor of the least carbon intensive fossil fuel among the fuel identified in the baseline selection, the fuel specified b the manufacturer, the project fuel and the fuel used during the operational test run at the commissioning of the new air separation plant (tco 2 /GJ) EF AS, = CO 2 emission factor of the least carbon intensive fossil fuel used for air separation in ear (tco 2 /GJ) HS LNG,out,h, = Average specific enthalp of the LNG stream at the outlet of the crogenic recover heat exchanger in the hour h of the ear (GJ/tonne of LNG) HS LNG,in,h, = Average specific enthalp of the LNG stream at the inlet of the crogenic recover heat exchanger in the hour h of the ear (GJ/tonne of LNG) LNG h, = Total amount of LNG that flows through the crogenic recover heat exchanger in the hour h of the ear (tonne) η AS,BL = Default efficienc of the energ conversion unit in the baseline air separation plant m AS,com = Amount of air separation products that has been produced during the operational test at the commissioning of the new air separation plant (Nm 3 or tonne) m AS, = Amount of air separation products produced in the project activit in ear (Nm 3 or tonne) h = Hour 10 in ear of the crediting period i = All fossil fuel tpes used for air separation in ear The parameters FF AS,com and m AS,com should be audited b an independent engineering firm, present during the operational test. The operational test shall be conducted following all operational specifications from the manufacturer, with no recover of crogenic energ, and at optimum operational conditions of the plant. Project emissions For the purpose of determining project emissions, project participants shall include the following emissions sources: CO 2 emissions from electricit consumption in the project activit in ear ; CO 2 emissions from fossil fuel consumption in the project activit in ear. 10 For each hour when the LNG stream is not sent to the crogenic recover heat exchanger, the value of LNG h,, HS LNG,out,h, and HS LNG,in,h, should be zero. 16/38

17 Fort-fourth meeting For all scenarios, project emissions are calculated as follows: PE = PE + PE + PE + PE (22) EC,VP, EC,AS, FF,VP, FF,AS, Where: PE = Project emissions in ear (tco 2 ) PE EC,VP, = Project emissions from electricit consumption for LNG vaporization in ear (tco 2 ) PE EC,AS, = Project emissions from electricit consumption for air separation in ear (tco 2 ) PE FF,VP, = Project emissions from combustion of fossil fuels for LNG vaporization in ear (tco 2 ) PE FF,AS, = Project emissions from combustion of fossil fuels air separation in ear (tco 2 ) Determination of PE EC,VP, Project emissions from electricit consumption for LNG vaporization in ear (PE EC,VP, ) should be calculated using the latest version of the Tool to calculate baseline, project and/or leakage emissions from electricit consumption. The parameter EC PJ,j, of the above tool should be replaced b the monitored parameter electricit consumption for LNG vaporization (EC VP, ). Determination of PE EC,AS, Project emissions from electricit consumption for air separation in ear (PE EC,AS, ) should be calculated using the latest version of the Tool to calculate baseline, project and/or leakage emissions from electricit consumption. The parameter EC PJ,j, of the above tool should be replaced b the monitored parameter electricit consumption for air separation (EC AS, ). Determination of PE FF,VP, Project emissions from combustion of fossil fuels for LNG vaporization in ear (PE FF,VP, ) should be calculated using the latest version of the Tool to calculate project or leakage CO 2 emissions from fossil fuel combustion, where the source j in the tool corresponds to all fossil fuel combustion processes on-site in the LNG vaporization plant. Determination of PE FF,AS, Project emissions from combustion of fossil fuels for air separation in ear (PE FF,AS, ) should be calculated using the latest version of the Tool to calculate project or leakage CO 2 emissions from fossil fuel combustion, where the source j in the tool corresponds to all fossil fuel combustion processes on-site in the air separation plant. Leakage In case the end users of the air separation products are not in the same place as the project location, leakage due to transportation of the air separation products should be considered. The emissions due to the fossil fuel combustion for transportation of air separation crogenic products (such as O 2, N 2 transported b truck) and associated loss of products during transport should be considered as leakage emissions. 17/38

18 LE = LEFF, TR, + LELOSS, TR, Fort-fourth meeting (23) Where: LE = Leakage emissions in ear (tco 2 ) LE FF,TR, = Leakage emissions from fossil fuel combustion for transportation of air separation products in ear (tco 2 ) LE LOSS,TR, = Leakage emissions from loss of air separation products in the transportation in ear (tco 2 ) Leakage emissions from fossil fuel combustion for transportation of air separation products are calculated as: LE FF,TR, Where: LE FF,TR, FF TR,i, NCV TR,i, EF TR,i, = FF NCV EF (24) i TR,i, TR,i, TR,i, = Leakage emissions from fossil fuel combustion for transportation of air separation products in ear (tco 2 ) = Quantit of fossil fuel tpe i consumed for transportation of air separation products in ear (mass or volume unit) = Net calorific value of the fuel tpe i for transportation of air separation products in ear (GJ/mass or volume unit) = CO 2 emission factor of fuel tpe i used for transportation of air separation products in ear (tco2/gj) Leakage emissions from loss of air separation products in the transportation are calculated as: LE LOSS,TR, mas,shipped, mas,delivered, = BEAS, (25) m AS, Where: LE LOSS,TR, = Leakage emissions from loss of air separation products in the transportation in ear (tco 2 ) m AS,shipped, = Amount of air separation products shipped to end-users in ear (Nm 3 or tonne) m AS,delivered, = Amount of air separation products delivered to end-users in ear (Nm 3 or tonne) m AS, = Amount of air separation products that has been separated within the project boundar in ear (Nm 3 or tonne) BE AS, = Baseline emissions from air separation in ear (tco 2 ) Changes required for methodolog implementation in 2 nd and 3 rd crediting periods At the start of the second and third crediting period, project participants have to: (a) Assess the continued validit of the baseline; (b) Update the baseline information. 18/38

19 Fort-fourth meeting Data and parameters not monitored In addition to the parameters listed in the tables below, the provisions on data and parameters not monitored in the tools referred to in this methodolog appl. procedures (if an): An comment: procedures (if an): An comment: EC AS,com MWh Electricit consumption for air separation during the operational test at the commissioning of the new air separation plant Operational test data at the commissioning of the new air separation plant Use calibrated electricit meters s shall be audited b an independent engineering firm, present during the operational test EC VP,com MWh Electricit consumption for vaporization of LNG during the operational test at the commissioning of the new LNG vaporization plant Operational test data at the commissioning of the new air separation plant Use calibrated electricit meters s shall be audited b an independent engineering firm, present during the operational test EC VP,x MWh Historical electricit consumption for LNG vaporization in ear x prior to the implementation of the CDM project activit Historical data from the LNG vaporization plant - procedures (if an): An comment: - 19/38

20 Fort-fourth meeting procedures (if an): An comment: EF AS,com tco 2 /GJ CO 2 emission factor of the least carbon intensive fossil fuel among the fuel identified in the baseline selection, the fuel specified b the manufacturer, the project fuel and the fuel used during the operational test run at the commissioning of the new air separation plant The following data sources ma be used if the relevant conditions appl: Data source Conditions for using the data source (a) Values provided b the fuel This is the preferred source supplier in invoices (b) s b the project If (a) is not available participants (c) Regional or national default If (a) is not available. values These sources can onl be used for liquid fuels and should be based on well-documented, reliable sources (d) IPCC default values at the lower limit of the confidence interval with 95% confidence level, as provided in Table 1.2 of Chapter 1 of Vol. 2 (Energ) of the 2006 IPCC Guidelines on National GHG Inventories (such as national energ balances) If (a) is not available For (a) and (b): measurements should be undertaken in line with national or international fuel standards For (a): if the fuel supplier does provide the NCV value and the CO 2 emission factor on the invoice and these two values are based on measurements for this specific fuel, this CO 2 factor should be used. If another source for the CO 2 emission factor is used or no CO 2 emission factor is provided, options (b), (c) or (d) should be used 20/38

21 Fort-fourth meeting procedures (if an): An comment: EF i,x tco 2 /GJ CO 2 emission factor of fossil fuel i used for LNG vaporization in ear x prior to the implementation of the CDM project activit The following data sources ma be used if the relevant conditions appl: Data source Conditions for using the data source (a) Values provided b the fuel This is the preferred source supplier in invoices (b) s b the project If (a) is not available participants (c) Regional or national default If (a) is not available. values These sources can onl be used for liquid fuels and should be based on well-documented, reliable sources (d) IPCC default values at the lower limit of the confidence interval with 95% confidence level, as provided in Table 1.2 of Chapter 1 of Vol. 2 (Energ) of the 2006 IPCC Guidelines on National GHG Inventories (such as national energ balances) If (a) is not available For (a) and (b): measurements should be undertaken in line with national or international fuel standards For (a): if the fuel supplier does provide the NCV value and the CO 2 emission factor on the invoice and these two values are based on measurements for this specific fuel, this CO 2 factor should be used. If another source for the CO 2 emission factor is used or no CO 2 emission factor is provided, options (b), (c) or (d) should be used 21/38

22 procedures (if an): An comment: procedures (if an): An comment: EF VP,com Fort-fourth meeting tco 2 /GJ CO 2 emission factor of the least carbon intensive fossil fuel among the fuel identified in the baseline selection, the fuel specified b the manufacturer, the project fuel and the fuel used during the operational test run at the commissioning of the new LNG vaporization plant The following data sources ma be used if the relevant conditions appl: Data source Conditions for using the data source (a) Values provided b the fuel This is the preferred source supplier in invoices (b) s b the project If (a) is not available participants (c) Regional or national default If (a) is not available. values These sources can onl be used for liquid fuels and should be based on well-documented, reliable sources (d) IPCC default values at the lower limit of the confidence interval with 95% confidence level, as provided in Table 1.2 of Chapter 1 of Vol. 2 (Energ) of the 2006 IPCC Guidelines on National GHG Inventories (such as national energ balances) If (a) is not available For (a) and (b): measurements should be undertaken in line with national or international fuel standards For (a): if the fuel supplier does provide the NCV value and the CO 2 emission factor on the invoice and these two values are based on measurements for this specific fuel, this CO 2 factor should be used. If another source for the CO 2 emission factor is used or no CO 2 emission factor is provided, options (b), (c) or (d) should be used FF AS,com volume or mass unit Amount of fossil fuels used for air separation during the operational test at the commissioning of the new air separation plant Operational test data at the commissioning of the new air separation plant - s shall be audited b an independent engineering firm, present during the operational test 22/38

23 procedures (if an): An comment: FF VP,com volume or mass unit Amount of fossil fuel i used for LNG vaporization in ear x prior to the implementation of the CDM project activit Operational test data at the commissioning of the new air separation plant - Fort-fourth meeting s shall be audited b an independent engineering firm, present during the operational test FF VP,i,x volume or mass unit Amount of fossil fuel i used for LNG vaporization in ear x prior to the implementation of the CDM project activit Historical data of LNG vaporization plant - procedures (if an): An comment: - LNG historical qualit and quantit - Qualit and quantit of the final products from the LNG vaporization plant during the most recent three ears prior the implementation of the project activit Sales and production records of the LNG vaporization plant According to operational and production standards established in the LNG procedures (if an): vaporization plant, for the final products of the plant the following parameters are to be determined: Chemical composition of final products; Energ content of final products; Annual quantit produced of final product An comment: This not monitored parameter is required for existing LNG vaporization plants, in order to compl with the following applicabilit condition of the present baseline methodolog: The project activit does not result in significant changes in the qualit and quantit of outputs of the existing LNG vaporization plants. The compliance with this condition is to be supported b (i) historical and present sales records, and (ii) historical and present production records that include the chemical composition and energ content of the marketable products. 23/38

24 procedures (if an): An comment: procedures (if an): An comment: m AS,com Fort-fourth meeting Nm 3 or tonne Amount of air separation products that has been produced during the operational test at the commissioning of the new air separation plant s during the operational test This parameter represents the sum of all air separation products such as O 2, N 2, Ar, etc. s shall be audited b an independent engineering firm, present during the operational test m LNG,com tonne Amount of LNG vaporized during the operational test at the commissioning of the new LNG vaporization plant s during the operational test - s shall be audited b an independent engineering firm, present during the operational test m LNG,x tonne Amount of LNG vaporized at the project site in ear x prior to the implementation of the project activit Historical data from the LNG vaporization plant - procedures (if an): An comment: - 24/38

25 procedures (if an): An comment: NCV AS,com Fort-fourth meeting GJ per volume or mass unit (e.g. GJ/m³, GJ/ton) Average net calorific value of the least carbon intensive fossil fuel combusted during the operational test at the commissioning of the new air separation plant (GJ per volume or mass unit) The following data sources ma be used if the relevant conditions appl: Data source Conditions for using the data source (a) Values provided b the fuel This is the preferred source supplier in invoices (b) s b the project If (a) is not available participants (c) Regional or national default If (a) is not available. values These sources can onl be used for liquid fuels and should be based on well-documented, reliable sources (d) IPCC default values at the lower limit of the confidence interval with 95% confidence level, as provided in Table 1.2 of Chapter 1 of Vol. 2 (Energ) of the 2006 IPCC Guidelines on National GHG Inventories (such as national energ balances) If (a) is not available For (a) and (b): measurements should be undertaken in line with national or international fuel standards QA/QC procedures: verif that the values under (a), (b) and (c) are within the uncertaint range of the IPCC default values as provided in Table 1.2, Vol. 2 of the 2006 IPCC Guidelines. If the values out of this range, collect additional information from the testing laborator to justif the outcome or conduct additional measurements. The laboratories in (a), (b) or (c) should have ISO17025 accreditation or justif that the can compl with similar qualit standards 25/38

26 procedures (if an): An comment: NCV VP,com Fort-fourth meeting GJ per volume or mass unit Average net calorific value of the least carbon intensive fossil fuel combusted during the operational test at the commissioning of the new LNG vaporization plant The following data sources ma be used if the relevant conditions appl: Data source Conditions for using the data source (a) Values provided b the fuel This is the preferred source supplier in invoices (b) s b the project If (a) is not available participants (c) Regional or national default If (a) is not available. values These sources can onl be used for liquid fuels and should be based on well-documented, reliable sources (d) IPCC default values at the lower limit of the confidence interval with 95% confidence level, as provided in Table 1.2 of Chapter 1 of Vol. 2 (Energ) of the 2006 IPCC Guidelines on National GHG Inventories (such as national energ balances) If (a) is not available For (a) and (b): measurements should be undertaken in line with national or international fuel standards QA/QC procedures: verif that the values under (a), (b) and (c) are within the uncertaint range of the IPCC default values as provided in Table 1.2, Vol. 2 of the 2006 IPCC Guidelines. If the values out of this range, collect additional information from the testing laborator to justif the outcome or conduct additional measurements. The laboratories in (a), (b) or (c) should have ISO17025 accreditation or justif that the can compl with similar qualit standards 26/38