A.2. General description of project and applied technologies and/or measures

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1 PDD Form Note: This JCM Project Design Document (PDD) is drafted as the result of the GEC s JCM Feasibility Study Programme in JFY2013. Therefore, this draft PDD is not officially approved by any governments involved in JCM, and is subject to change in the future. A. Project description A.1. Title of the JCM project 5.7 MW biomass power generation project Sri Lanka Carbon Fund, Moneragala, Sri Lanka A.2. General description of project and applied technologies and/or measures The project is to generate 40,075MWh of electricity per year by combusting Gliricidia Sepium species, one of the most popular renewable wood biomass resources in Sri Lanka. Electricity to be generated through project implementation will be sold to the Ceylon Electricity Board who is the owner and the management body of the Sri Lankan National Grid, in accordance with the Standard Power Purchase Agreement signed with them. The expected amount of electricity to be sold to the Ceylon Electricity Board is 5,000kwh per hour, while the remaining 700kWh per hour will be consumed to run the power plant. Technologies to be employed for the project are a set of 23t/h travelling grate biomass boiler with steam supply at 485c / 67kg/cm2, a set of bleed cum condensing system & multi stage steam turbine, gears, alternator with power generation capacity of 5.7 MW and other related facilities & equipment. Thermax Instrument Limited, an Indian engineering company will enter into an agreement as an Engineering, Procurement and Construction (EPC) with the project owner and take full responsibility on full turnkey basis. System Diagram to be employed for the Project II-1

2 Gliricidia Sepium species is considered as the sole source of energy for power generation in the project. A survey conducted by one of the prominent research companies that is also registered as a biomass consultant at the Sri Lankan sustainable energy authority concluded that approximately 15.8 million Gliricidia Sepium trees are available in the area. As there is no demand for biomass from Gliricidia Sepium trees in the area, the number of Gliricidia Sepium trees is sufficient for the project owner to operate power plant with capacity up to 8.58MW in the area. A.3. Location of project, including coordinates Country Sri Lanka Region/State/Province etc.: Uva Province City/Town/Community etc.: Buttala, Moneragala District Latitude, longitude Latitude : / Longitude: A.4. Name of project participants Sri Lanka Sri Lanka Carbon Fund (PVT) Limited Japan Obayashi Corporation (under consideration) A.5. Duration Starting date of project operation July 2015 Expected operational lifetime of project 20 years A.6. Contribution from developed countries The project will contribute to the host country in terms of ; 1. Reducing GHG emission, electricity to be generated through project implementation will replace the GHG emission that would have been generated at existing power plants, including fossil fuel thermal power plants, connected to the national grid 2. Reducing deficits on trade as well as improving energy security of the host country, as energy to be utilized through project operation will be able to replace fossil fuels. Currently Sri Lanka imports the total amount of fossil fuel consumed domestically from overseas. 3. Job creation and poverty reduction in the rural areas and adjustment of socio-economical imbalance between urban area and rural area, as the project owner will 1) hire employees at project site and biomass pre-treatment site and 2) enter into agreements with a large number of residents in the area to supply biomass and will purchase biomass fuels from them. B. Application of an approved methodology(ies) B.1. Selection of methodology(ies) Selected approved methodology No. - Selected Approved Methodology Title Replacing Grid Electricity with Sustainable Biomass Based Power II-2

3 Version number 03.0 Generation B.2. Explanation of how the project meets eligibility criteria of the approved methodology Eligibility Descriptions specified in the methodology Project information criteria Criterion 1 The project installs a new power generation facility(ies) with installed capacity up to 10MW. The project is designed to utilize biomass resources to generate up to 5,700 kwh of electricity per hour (installed capacity is Criterion 2 The project sells electricity to the national grid and replaces the grid electricity generation. Criterion 3 The net amount of electricity sold to the national grid, amount of biomass resources used for power generation and fuel consumption in the project shall be measurable based on the monitoring plan after the project starts. Criterion 4 The biomass resources used in the project shall comply with one of the following conditions: a) the biomass resources are mentioned in the national guideline set by the Government of Sri Lanka Guideline for Biomass Assessment in Sri Lanka as energy source materials and the amount of biomass resources to be used by the project does not exceed the potential biomass supply estimated in the guideline in the biomass collection area of the project, b) the biomass resources used in the project are produced from plantation which is not included in the potential biomass supply estimation in the guideline, c) the biomass resources used in the project 5.7MW) and export 5.0 MW of electricity to the National Grid. Thus the project completely satisfies the eligibility criterion 1 and 2. The amount of electricity to be exported to the national grid is planned to be measured by the electricity meter. The amount of biomass resources to be utilized for power generation is planned to be weighed by weighing scale and the amount of fossil fuel to be consumed at project site is planned to be measured by the flow meter. Thus the project completely satisfies the eligibility criterion 3. The project is ordered by the Central Environment Authority to utilize only Grilicidia as fuel wood for plant operation (Environmental Recommendation issued by the Central Environmental Authority with Reference No. UPO/MG/07/02/14/2010) and Grilicidia is identified as one of the recommended fuel sources in Sri Lanka in the Guideline for Biomass Assessment of Sri Lanka. Thus the project completely satisfies the eligibility criterion 4. II-3

4 are approved by the Sri Lankan Government as harmful plants which should be removed from the area. Criterion 5 Processed biomass resources such as pellets, briquettes and bio-cokes shall not be applicable to this methodology (Wood chips are not regarded as processed biomass resources). Criterion 6 Power generation efficiency in the specification of the facility is beyond 25%. The power generation efficiency can be defined as amount of electricity generated by the facility divided by the input energy to the turbine. Criterion 7 In the case where biomass is procured by the plantation, all the following conditions shall be satisfied. a) any chemical fertilizer or chemical pesticides/ herbicides should not be used. b) the land for the plantation should not be categorized as forest, wetland or peat land (organic soil). c) In the case where the plantation is planned to be developed in the land which is categorized as forest area in the Sri Lankan land use regulation, the plantation plan needs to be approved by the Sri Lankan Government as the project with the purpose of rehabilitation of the land which is degraded due to the invasion of the harmful plants. The project is designed to utilize biomass chip with size 25x25x15mm in average by EPC. Thus the project completely satisfies the eligibility criterion 5. The project owner plans to install the power generation unit with efficiency at the rate of more than 25%. Thus the project completely satisfies the eligibility criterion 6. (when the owner finally installs such facility in this project) The project is designed to develop its own and dedicated biomass plantation as a part of its fuel supply source. However the project is designed: a) Not to utilize fertilizer, chemical pesticide / herbicides, b) Not to cultivate the lands where the lands are categorized as forest, wetland or peat land (organic soil), and c) Not to cultivate any lands categorized as forest area by the laws & regulation in Sri Lanka, except for those with invasive foreign species recommended and approved by the Sri Lankan Government to be removed from the area for restoration of former ecosystem in the area. Thus the project completely satisfies the eligibility criterion 7. C. Calculation of emission reductions C.1. All emission sources and their associated greenhouse gases relevant to the JCM project Reference emissions Emission sources GHG types Thermal power plants generating and supplying electricity to the National CO2 II-4

5 Grid. Project emissions Emission sources Biomass cultivation site and biomass production process. Pretreatment process of biomass resources. Transportation process of biomass resources. Fossil fuel used as auxiliary purpose on the project site. GHG types CO2, N2O CO2 CO2 CO2 C.2. Figure of all emission sources and monitoring points relevant to the JCM project Reference Emission GHG emission from the power plants connected to the National Grid is the reference emission. Sri Lanka Sustainable Energy Authority, under the Ministry of Environment and Renewable Energy of Sri Lanka, published tco2/mwh as the grid emission factor in their official website. Project Emissions There are several sources of the project emissions in the project. These are (1) emission from biomass cultivation and production, (2) emission from biomass transportation, (3) emission from biomass pre-treatment and (4) emission from the onsite fossil fuel consumption (auxiliaries). The emissions mentioned above will be monitored at monitoring point (1) (4) shown in the chart below. Project Boundary and Monitoring Points Biomass Supply Chain (1) Derivation 1) Authigene 2) Plantation (For other purpose) 3) Plantation (Dedicate Plantation) Biomass (Grilicidia Sepium) (2) Pruning & Collecting (3) Transport 1) By Human Power 1) < 50km 2) By Pruning 2) > 50km Machine(s) Monitoring Point 4 Project Site (Power Plant) Electricity from National Grid (1) Biomass Stockyard (2) Pre-Treatment (3) Power Generation Unit Monitoring Point 1 Monitoring Point 2 Monitoring Point 3 Although there are many project emission sources in the project, the only monitoring items that project owner needs to undertake are the amount of biomass resources to be procured by the power plant and the amount of fossil fuel combusted on site because the applied JCM methodology sets up the default values for the project emission associated with biomass cultivation and production, biomass transportation, biomass pre-treatment process regardless of the actual conditions such as the distance of transportation or the source II-5

6 of energy to be consumed at pre-treatment facility(ies). Fossil fuels to be consumed at the power plant will be monitored at the monitoring point 3. Amount of electricity to be consumed by the project will not be monitored as all the electricity to be supplied to the plant will be from its own power plant (the net amount of electricity to be sold to the national grid is monitored). The expected electricity / fossil fuel consumption are as follows ; Monitoring Point Parameter 1 or 2 or 3 1) Amount of biomass resources procured By purchase record 2) Emission factors of each project emission sources per unit of biomass resources Default values are given in the JCM Methodology 2 Biomass Pre Treatment Process 1) Amount of Biomass processed By procurement record 2)Emission Factors Default Values set up by the Methodology 3 Amount & type of fossil fuel consumed By fuel gauge 4 Amount of electricity consumed at project site By electricity meter 2,981 tco2/y Expected Emissions Default values applied in the calculation: 1)Project emission from biomass cultivation and production: [tco2/t] 2)Project emission from biomass transportation: [tCO2/y] 911 tco2/y Default value applied in the calculation 1) Project emission from biomass pre-treatment; [tco2/t] Not applicable to the project as no facility to use fossil fuel will be installed on the project site. 0tCO2/y (reference emission is calculated based on the net amount of electricity to be sold to the national grid and the internal electricity consumption is already deducted from the amount of the electricity to be generated by the project) C.3. Estimated emissions reductions in each year Year Estimated Reference emissions (tco 2e ) Estimated Project emissions (tco 2e ) Estimated Emission Reductions (tco 2e ) ,673 2,335 15, ,455 3,892 25, ,455 3,892 25,563 II-6

7 ,455 3,892 25, ,455 3,892 25, ,455 3,892 25,563 Total (tco 2e ) 164,948 21, ,153 D. Environmental impact assessment Legal requirement of The project owner has already submitted an inquiry for environmental environmental impact standard for the project on December 17, In reply to the inquiry assessment for the proposed project submitted by the owner, Central Environmental Authority (CEA) of Sri Lanka has replied back to the owner in writing with their reference no. UPO/MG/07/02/14/2010 on April 1, 2013 and indicated recommended environmental standard for the project implementation. The project owner will arrange and take necessary actions in order to satisfy the recommendation on environmental standard given by the CEA. The environmental standard indicated by the CEA is the general standard for any project in Sri Lanka and no difficulty in compliance is foreseen. E. Local stakeholder consultation E.1. Solicitation of comments from local stakeholders The project owner invited the following stakeholders for a meeting with the purpose of listening to opinions with regards to 5MW biomass power generation project in Buttala, Moneragala District in Sri Lanka on January 2009 and July 2013 Participants of the meeting ; For the meetings held on January 2009, Representatives from: 1) District Secretary and District Co-ordinating Committee of the Monaragala district; 2) Divisional Secretary of Monaragala; 3) Urban Council of Monaragala; 4) Pradeshiya Sabaha (PS) of Monaragala; 5) Central Environmental Authority; 6) Irrigation Department; 7) Wild Life Department; 8) Department of Archaeology; 9) National Water Supply and Drainage Board; 10) Water Resources Board; 11) Ministry of Power & Energy 12) Ministry of Land II-7

8 13) Ministry of Defense 14) Ministry of Labor 15) Urban Development Authority. 16) Villagers For the meetings held on January 2009, Representatives from: 1. Land Owner 2. Division Secretariat, Wallawaya 3. Kubukkana GN 4. Forest Dept from Wellawaya Division Secretariat 5. Residents from the Area 6. Project Owner E.2. Summary of comments received and their consideration Stakeholders Comments received Consideration of comments received Availability of stable market and acceptable prices for fuel wood The project owner will consume 58,000t of biomass resources per year during project implementation period Standards and the quality of fuel woods and possible grading which result in reduced price 25 mm (1 inch) at the narrower end and shall be less than 125 mm (5 inch) at the broader end. The Gliricidia poles shall be trimmed to a length of 1 meter. Training on the processing and handling Field staff will provide training of fuel wood collection and transport is preferable Legality of forward purchase agreements signed by people with the power The project owner will arrange the signing of the contract with suppliers developer to supply fuel. Provision of utilities to the villages The project owner will consider it particularly roads is preferable Provision of employment to local people needs to be ensured The project owner will put priority to employ people in the area II-8

9 F. References Grid Emission Factor : (An official website of Sri Lankan Sustainable Energy Authority. Grid Emission Factor is listed second from the top) Reference lists to support descriptions in the PDD, if any. Annex Annex 1. List of equipment for biomass pre-treatment and power generation to be installed at project site Annex 2. Environmental Recommendation from Central Environmental Authority of Sri Lanka Revision history of PDD Version Date Contents revised /11/25 First Edition /01/15 Second Edition Revised due to changing methodology /02/25 Third Edition Revised due to changing methodology II-9