Approved baseline and monitoring methodology AM0063

Transcription

1 Approved baseline and monitoring methodolog AM0063 Recover of CO 2 from tail gas in industrial facilities to substitute the use of fossil fuels for production of CO 2 I. SOURCE, DEFINITIONS AND APPLICABILITY Sources This methodolog is based on NM0230 Methodolog for industrial tail gas CO 2 Recover and Utilization and its underling project activit Recover and Utilization of CO 2 from Refiner Tail Gas. The baseline stud and project design document were prepared b MGM International Ltd, for the underling project activit Recover and Utilization of CO 2 from Refiner Tail Gas lead b INDURA S.A. and ENAP Refinerías S.A., Chile. This methodolog also refers to the latest approved versions of the following tools: Combined tool to identif the baseline scenario and demonstrate additionalit ; Tool for the demonstration and assessment of additionalit ; Tool to calculate project emissions from electricit consumption ; Tool to calculate project or leakage CO 2 emissions from fossil fuel combustion ; and Tool to calculate the emission factor for an electricit sstem. For more information regarding the proposed new methodolog and the tools as well as their consideration b the Executive Board please refer to Selected approach from paragraph 48 of the CDM modalities and procedures Existing actual or historical emissions, as applicable Definitions For the purpose of this methodolog the following definitions appl: Tail gas. A b-product of processes in industrial facilities. It is a mixture of gases including methane, carbon dioxide and other components and can be used as an energ source; Off gas. An enriched gas generated b removing CO 2 from the tail gas; Conventional CO 2 production process. A process in which fossil fuels are combusted and CO 2 is captured from the resulting flue gases. The energ generated from the combustion of fossil fuels is not used for purposes other than for the production of CO 2, i.e. no electricit is supplied to the grid or third parties and no heat is generated for production purposes other than CO 2 production. Both the combustion of fossil fuels and the capture processes take place at the same CO 2 production facilit. 1/26

2 Applicabilit The methodolog is applicable to project activities that reduce emissions associated with conventional CO 2 production process b means of extracting CO 2 from the tail gas coming out of an industrial facilit 1. The off gas, produced as a result of the extraction of CO 2 from the tail gas, is supplied back to the industrial facilit where it is either utilized as fuel or flared. The methodolog is applicable to the following two cases: Scenario 1: Use of the tail gas from an existing industrial facilit for substitution of the combustion of fossil fuels at a specific existing conventional CO 2 production facilit; or Scenario 2: Use of the tail gas from an existing industrial facilit in a new CO 2 production plant established as part of the project activit. The following conditions appl to both scenarios: The tail gas from the industrial facilit has been produced for as long as the industrial facilit has been in operation; Prior to the implementation of the project activit, the tail gas has either been used as fuel in the industrial facilit without extraction of the CO 2 or has been flared; There are no substantial changes (e.g. product change) in the industrial facilit as a result of the project activit; If the tail gas was used as fuel prior to the start of the project activit, the off gas has to be used as fuel in the project activit and cannot be flared; There exist historical records of at least three ears of data related to the operation of the industrial facilit from which the tail gas is extracted; The project activit does not result in a significant change in the composition of the tail gas (w carbon,tg ), generated at the industrial facilit, i.e. not more than ±5% variation is allowed when comparing the corresponding values before and after the start of the project activit; The total amount of CO 2 produced at the project facilit has to be sold within the host countr; The methodolog is not applicable to project activities where CO 2 is produced for own consumption at the project facilit (e.g. for manufacturing of chemicals) 2. The following conditions appl to scenario 1: In order to ensure that the production of CO 2 is justified b a real demand in the market, the end use of the CO 2 is of the same kind (e.g. sale to the food industr) before and after the start of the project activit, which is to be cross checked through sales records; The existing conventional CO 2 production facilit has an operating histor of at least three ears as well as three ears historical data on the annual fossil fuel and electricit consumption and CO 2 production levels are available. 1 For example, a refiner for production of hdrogen. 2 Project participants wishing to produce CO 2 for consumption at a project chemical plant, ma use the approved methodolog AM0027 Substitution of CO2 from fossil or mineral origin b CO2 from renewable sources in the production of inorganic compounds or, if this is not applicable, propose a new methodolog. 2/26

3 The following condition applies to scenario 2: At the minimum, data on existing CO 2 production facilities, their capacities and technologies used for CO 2 production in these facilities in the host countr are available. In addition, the applicabilit conditions included in the tools referred to above appl. Finall, the methodolog is applicable to project activities where the baseline scenario as defined in Identification of the baseline scenario is a combination of: (i) the alternative T3 or T4; and (ii) one of the alternatives C2, C3 or C5. II. BASELINE METHODOLOGY Project boundar As presented in Figure 1 below, the project boundar comprises: The CO 2 production facilit, including storage equipment; The industrial facilit where the tail gas is generated and the returned off-gas is used; Blower and pipeline to transport the tail gas from the industrial facilit to the CO 2 production facilit and to transport the off-gas back to the industrial facilit. M A R K E T fossil-fuel input Industrial facilit Demand Other sources of CO2 (b technolog tpe) power input Off-gas Production CO2 TECH-A Tail gas Production CO2 TECH-B fossil-fuel input power input CO2 Production Facilit CO2 Storage Production CO2 B-Product CO2 for sale Figure 1: Illustration of the project boundar [ ] 3/26

4 Baseline Project Activit Table 1. Emission sources included in or excluded from the project boundar Source Gas Included? Justification / Explanation Emissions from the CO 2 YES Main source of emissions in the baseline combustion of the tail gas in the industrial facilit process units CH 4 NO N 2 O NO It is assumed that all CH 4 is completel oxidized in the combustion process. This is conservative. Assumed negligible Emissions from the fossil CO 2 YES Main source of emissions in the baseline fuel use at the CO 2 CH 4 NO Assumed negligible production facilit (i.e. N 2 O NO Assumed negligible existing or new) Emissions from the CO 2 YES Main source of emissions in the baseline electricit use at the CO 2 CH 4 NO Assumed negligible production facilit (i.e. N 2 O NO Assumed negligible existing or new) Emissions from the CO 2 YES Main source of emissions in the project activit combustion of the off gas CH 4 NO It is assumed that all CH 4 is completel oxidized in the in the industrial facilit combustion process process units N 2 O NO Assumed negligible Emissions from energ used at the industrial facilit to transport the tail gas Fugitive emissions from the tail gas transport Fugitive emissions from off gas transport Fugitive emissions from pipeline accidental events Fugitive emissions at the CO 2 production facilit CO 2 NO CH 4 NO N 2 O NO CO 2 NO CH 4 NO N 2 O NO CO 2 NO CH 4 NO N 2 O NO CO 2 NO CH 4 NO N 2 O NO CO 2 NO CH 4 NO Assumed negligible Assumed negligible Assumed negligible Fugitive emissions ma occur at the installation used to transport tail gas due to CO 2 content. Assumed negligible Fugitive emissions ma occur at the installation used to transport tail gas due to CH 4 content. Assumed negligible Assumed negligible Fugitive emissions ma occur at the installation used to transport off gas due to residual CO 2 content after recover. Assumed negligible Fugitive emissions ma occur at the installation used to transport off gas due to CH 4 content in off gas. Assumed negligible Assumed negligible CO 2 fugitive emissions ma occur as a result of an accidental event in one or both of the tail gas / off gas transportation installations. Assumed negligible CH 4 fugitive emissions ma occur as a result of an accidental event in one or both of the tail gas / off gas transportation installations. Assumed negligible Assumed negligible CO 2 fugitive emissions ma occur as a result of tail gas, off gas or product venting or leaks at the CO 2 production facilit. Assumed negligible CH 4 fugitive emissions ma occur as a result of tail gas, off gas or product venting or leaks at the CO 2 production facilit. Assumed negligible 4/26

5 N 2 O NO Assumed negligible Emissions from energ CO 2 YES Main source of emissions used at the CO 2 CH 4 NO Assumed negligible production facilit N 2 O NO Assumed negligible Procedure for estimating the remaining lifetime of the existing conventional CO 2 production facilit This step is applicable if scenario 1 corresponds to the project activit. The remaining lifetime of the existing conventional CO 2 production facilit should be determined, i.e. the time when the existing conventional CO 2 production facilit would have been replaced in the absence of the project activit. For this purpose, the tpical average technical lifetime of other conventional CO 2 production facilities ma be determined on the basis of common practices in the sector (e.g. based on industr surves, statistics, technical literature, etc.). The time of replacement of the existing conventional CO 2 production facilit in the absence of the project activit should be chosen in a conservative manner, i.e. the earliest point in time should be chosen in cases where onl a time frame can be estimated. Identification of the baseline scenario Project participants shall appl the following steps to identif the baseline scenario: Step 1a: Identif plausible alternative scenarios Under Step 1a project participants shall identif realistic and credible alternatives to both project components. Alternatives should be separatel determined regarding: What would happen to the tail gas from the industrial facilit in the absence of the project activit; and How the CO 2 produced in the project activit would have been produced in the absence of the project activit. (i) Plausible alternative scenarios for the use of the tail gas in the industrial facilit ma include, but are not limited to, the following: T1: The implementation of the proposed project activit, i.e. enrichment of the tail gas (purification of the tail gas and separation of CO 2 ) for energ purposes, without being registered as a CDM project activit. T2: Other uses of the tail gas (i. e. as feedstock). T3: Continuation of the current practice, if applicable, of the use of the tail gas as fuel without separation of CO 2 T4: Continuation of the current practice, if applicable, of flaring of the tail gas without separation of CO 2. (ii) Plausible alternative scenarios for the production of CO 2 ma include, but are not limited to, the following: 5/26

6 C1: The proposed project activit (i.e. extraction of CO 2 from the industrial facilit tail gas) implemented without being registered as a CDM project activit. C2: The production of CO 2 at a specific existing conventional CO 2 production plant, on-site or off-site. C3: The construction of a specific new conventional CO 2 production plant, on-site or off-site. C4: The construction of a specific new CO 2 production facilit, on-site or off-site, using other CO 2 sources than fossil fuels (e.g. b-product of sodium phosphate or ammonia manufacture, processing of biomass, cement production, extraction of CO 2 from natural wells, etc.). C5: The production of CO 2 in existing and/or new CO 2 production plants at other sites. C6: The production of CO 2 at an existing CO 2 production plant with fossil fuels where the energ generated from fossil fuel combustion is (partl) utilized for purposes other than the production of CO 2. C7: The construction of a specific new CO 2 production facilit, on-site or off-site, in which the CO 2 is generated from fossil fuel combustion but in which the energ generated from fossil fuel combustion is (partl) utilized for purposes other than the production of CO 2 (e.g., electricit exports to the grid, steam generation for other purposes than CO 2 production). Note: Scenarios C3, C4, C6 and C7 shall onl be included as plausible options if documented evidence is provided to demonstrate a growing demand for commercial CO 2 in the host countr, where the project activit will be implemented. 3 The suggested list of alternatives is onl indicative. Project participants ma propose other plausible alternatives and/or eliminate some of the listed above, based on documented evidence. For the purpose of identifing plausible alternative scenarios, provide an overview of the market of the commercial CO 2 production, including the availabilit of and trends in introduction of new technologies. Provide relevant documentation to support the results of the analsis. Outcome of Step 1a: List of plausible alternative scenarios to the project activit. Step 1b: Consistenc with applicable laws and regulations The alternative(s) shall be in compliance with all mandator applicable legal and regulator requirements, even if these laws and regulations have objectives other than GHG reductions (this sub-step does not consider national and local policies that do not have legall-binding status). If an alternative does not compl with all mandator applicable legislation and regulations, then show that, based on an examination of current practice in the countr or region in which the mandator law or regulation applies, those applicable mandator legal or regulator requirements are sstematicall not 3 If there is no growth in demand a new facilit is expected to displace an existing facilit. The present methodolog does not include an procedures to identif the displaced facilit and accordingl estimate the baseline emissions. 6/26

7 enforced and that non-compliance with those requirements is widespread in the countr. If this cannot be shown, then eliminate the alternative from further consideration. Outcome of Step 1b: List of alternative scenarios to the project activit that are in compliance with mandator legislation and regulations taking into account the enforcement in the region or countr and EB decisions on national and/or sectoral policies and regulations. Step 2: Eliminate alternatives that face prohibitive barriers Scenarios that face prohibitive barriers should be eliminated b appling Step 2 - Barrier analsis of the latest version of the Combined tool to identif the baseline scenario and demonstrate additionalit agreed b the CDM Executive Board. If there is onl one alternative scenario that is not prevented b an barrier, and if this alternative is not the proposed project activit undertaken without being registered as a CDM project activit, then this alternative scenario is identified as the baseline scenario. If there are still several alternative scenarios remaining project participants ma choose to either: Option 1: go to Step 3 (investment analsis), or Option 2: identif the alternative with the lowest emissions (i.e. the most conservative) as the baseline scenario. Step 3: Comparison of economic attractiveness of the remaining alternatives Compare the economic attractiveness without revenues from CERs for remaining alternatives b appling Step 3 - Investment analsis of the latest approved version of the Combined tool to identif the baseline scenario and demonstrate additionalit. The investment comparison analsis shall be applied, using the net present value (NPV) as indicator, and explicitl stating the following parameters: Investment requirements for each alternative scenario (including break-up into major equipment costs, installation, required R&D activities and construction costs); A discount rate appropriate to the countr and sector (use government bond rates, increased b a suitable risk premium to reflect private investment in fuel switching projects, as substantiated b an independent (financial) expert); Current price and expected future price of raw materials, fuels and electricit used as well as the market price of CO 2 and, if applicable, an other products. (As a default, the current prices ma be assumed as future prices. Where project participants intend to use future prices that are different from current prices, the future prices have to be substantiated b a public and official publication from a governmental bod or an intergovernmental institution); Operation and maintenance costs for each alternative scenario, including cost changes at the industrial facilit and the CO 2 production facilit; An economic benefits at the industrial facilit from using the off-gas instead of the tail gas. The information on all the above factors as well as assumptions shall be explicitl stated in the CDM-PDD. 7/26

8 Outcome of Step 3: Ranking of the short list of alternative scenarios according to their NPV taking into account the results of the sensitivit analsis. If the sensitivit analsis is not conclusive, identif the alternative with the lowest emissions (i.e. the most conservative) as the baseline scenario. If the sensitivit analsis is conclusive and confirms the result of the investment comparison analsis, then the most economicall or financiall attractive alternative scenario is considered as baseline scenario. The methodolog is onl applicable if a combination of the alternative T3 or T4 with the alternative C2, C3 or C5 represents the most likel baseline scenario. Additionalit The steps described below ma be used to assess additionalit. Alternativel, project participants ma use the latest approved version of the Tool for the demonstration and assessment of additionalit, appling the additional guidance provided above under Identification of the baseline scenario. Step 1: Analsis of outcome of baseline scenario identification procedure If the proposed project activit is the onl alternative amongst the ones considered b the project participants that is in compliance with all mandator regulations, as identified b appling Step 1 of the baseline scenario identification procedure described in the section above, with which there is general compliance, then the proposed CDM project activit is not additional. If the barrier analsis is used to identif the baseline scenario, as described in the previous section, then: a) If there is onl one alternative scenario that is not prevented b an barrier, and if this alternative is the proposed project activit undertaken without being registered as a CDM project activit, then the project activit is not additional; b) If the implementation of the proposed project activit without being registered as a CDM project activit is prevented b an barrier, then explain using qualitative or quantitative arguments how the registration of the CDM project activit will alleviate the barriers that prevent the proposed project activit from occurring in the absence of the CDM. If the CDM alleviates the identified barriers that prevent the proposed project activit from occurring, proceed to common practice analsis step, otherwise the project activit is not additional. If the investment analsis step is used to identif the baseline scenario, and if the proposed project activit undertaken without being registered as a CDM project activit is not prevented b an barrier, then: a) If the sensitivit analsis confirms the result of the investment comparison analsis, and it cannot be ruled out that the most economicall or financiall attractive alternative scenario is the proposed project activit undertaken without being registered as a CDM project activit, then the project activit is not additional; b) Otherwise, proceed to common practice analsis step. 8/26

9 Step 2: Common practice analsis Demonstrate that the project activit is not a common practice in the countr and sector b appling Step 4 of the latest version of the Tool for the demonstration and assessment of additionalit as agreed b the CDM Executive Board. Baseline emissions Baseline emissions are calculated as follows: BE = BE + CO2, BE IND, (1) BE Baseline emissions during the ear, (tco 2 e/ear) BE CO2, Baseline emissions from the production of CO 2 in ear, (tco 2 e/ear) BE IND, Baseline emissions from the combustion of the tail gas at the industrial facilit in ear, (tco 2 /ear) Year of the crediting period Baseline emissions from the production of CO 2 The method of calculation of the baseline emissions from this source depends on whether C2, C3 or C5 has been identified as the baseline scenario. Baseline scenario C2 Two different cases ma appl when the project CO 2 production facilit displaces the production of CO 2 in a specific existing conventional CO 2 production plant: Case A: The existing conventional CO 2 production plant continues to operate after the start of the project activit, but produces less CO 2. In this case, emission reductions from the displacement of CO 2 production in the existing CO 2 production plant can onl be claimed to the extent to which the existing plant produces less CO 2. Case B: The existing conventional CO 2 production plant ceases its operation with the start of the project activit. In this case, the remaining lifetime of the replaced plant has to be determined as specified above and emission reductions can onl be claimed against the shortest period between the remaining lifetime and the chosen crediting period. In both cases, the level of historical CO 2 production in the existing plant before the start of the project activit (P CO2,BL,x ) has to be determined and documented in the CDM-PDD. Baseline emissions from the production of CO 2 are calculated based on a baseline emission index (BEI CO2,BL ), which expresses the historical GHG emissions of the existing CO 2 production facilit per quantit of CO 2 produced, and the quantit of CO 2 that would be produced in the existing CO 2 production facilit, as follows: 9/26

10 BE = BEI CO2, CO2,BL * min { P ; P } CO2,MAX, CO2,PJ, (2) BE CO2, BEI CO2,BL P CO2,PJ, P CO2,MAX, Baseline emissions in ear, (t CO 2 e/ear) Baseline emission index from energ use in the existing conventional CO 2 production facilit, (t CO 2 e / t CO 2 ) Quantit of CO 2 produced at the project CO 2 production facilit in ear 4, (tco 2 /ear). Maximum annual quantit of CO 2 production that is eligible for crediting in ear (tco 2 /ear) The maximum annual quantit of CO 2 production that is eligible for crediting depends on whether case A or case B applies: If case A applies, P CO2,MAX, is calculated as the difference between the highest historical annual CO 2 production in the existing CO 2 production plant during the most recent three historical ears prior to the implementation of the project activit and the annual CO 2 production in the existing CO 2 production plant in ear, as follows: P CO2, MAX, { PCO2,x;PCO2,x 1;PCO2,x 2} PCO2,exist plant, = max (3) P CO2,MAX, P CO2,x/x-1/x-2 P CO2,exist plant, x Maximum annual quantit of CO 2 production that is eligible for crediting in ear (tco 2 /r) Quantit of CO 2 produced in the existing conventional CO 2 production facilit in ear x/x-1/x-2 (tco 2 /r) Quantit of CO 2 produced in the existing conventional CO 2 production facilit in ear (tco 2 /r) Year preceding the start of the project activit Year of the crediting period If case B applies, P CO2,MAX, corresponds to the highest historical annual CO 2 production in the existing CO 2 production plant during the most recent three historical ears prior to the implementation of the project activit. The baseline emission index is calculated as follows: BE BEI CO2,BL = P CO2,BL,x CO2,BL,x (4) 4 Ex-ante estimation of the emission reductions shall be based on prospected levels of CO 2 production at the project CO 2 production facilit. In calculating emission reductions for an given ear during the implementation of the project activit, onl ex-post approach, i.e. the monitored quantit of CO 2 produced at the project CO 2 production facilit in ear, shall be used. 10/26

11 BE CO2,BL,x P CO2,BL,x Emissions from production of CO 2 at the existing CO 2 production facilit during the historical period x (tco 2 ), as estimated in equation 5 below Amount of CO 2 produced at the existing CO 2 production facilit during the historical period x, (tco 2 ) x Period immediatel preceding the start of the implementation of the project activit 5 The emissions during the period x are estimated on the basis of the total energ requirements (i.e. electricit and fossil fuel consumption) at the existing conventional CO 2 production facilit minus the amount of CO 2 produced at this facilit during the period x. The total energ requirements of the existing facilit include both the energ used for generation of CO 2 and the energ used for processing of CO 2. BE CO2, BL,x = ECCO2,BL,grid,x EFCO2,grid,x + i EC CO2,BL,grid,x Electricit consumption from the grid at the existing conventional CO 2 production facilit during the period x for generation and processing of CO 2, (MWh). EF CO2,grid,x Grid emission factor, (tco 2 /MWh). Calculated using the latest approved version of the Tool to calculate the emission factor for an electricit sstem. FC CO2,BL,i,x Quantit of fossil fuel tpe i combusted at the specific existing conventional CO 2 production facilit during the period x for generation and processing of CO 2, (mass or volume unit) EF CO2,i,x Emission factor of fossil fuel tpe i during period x, (tco 2 /TJ) NCV i,x Net calorific value of fossil fuel tpe i in the period x (TJ/ mass or volume unit) i All fossil fuels used at the conventional CO 2 production facilit during the period x x Period immediatel preceding the start of the implementation of the project activit 5 Baseline scenario C3 or C5 FC CO2,BL,i,x NCV i,x EF CO2,i,x P CO2,BL,x (5) In this case, the project facilit displaces production of CO 2 from a specific new conventional CO 2 production plant (C3) or from several existing or new CO 2 production plants (C5) that would have been constructed in the absence of the project activit to meet the growing demand of the national or regional market. Baseline emissions are calculated based on the quantit of CO 2 produced at the project CO 2 production facilit and a benchmark emission index related which expresses the GHG intensit of CO 2 production in other CO 2 production facilities, as follows: BE CO2, = BEI CO2,BL,BENCH P CO2,PJ, (6) BE CO2, Baseline emissions associated with the production of CO 2 in the absence of the project activit in ear, (t CO 2 e/ear) BEI CO2,BL,BENCH Benchmark emission index for the production of CO 2, (t CO 2 e/t CO 2 ) 5 It is required to use a period comprising enough data to full represent a regular CO 2 production facilit operation (a minimum of three ear period is required). 11/26

12 P CO2,PJ, Quantit of CO 2 produced at the project CO 2 production facilit in ear 6, (tco 2 /ear). The baseline emission index (BEI CO2,BL,BENCH ) is established based on the GHG emission intensit of CO 2 production in other plants that have been constructed during the most recent 10 ears prior to the start of the project activit. The following steps shall be performed to determine BEI CO2,BL,BENCH : Step 1: Selection of the geographical area and identification of all CO 2 production plants n in that area The geographical area should be chosen in a manner that it includes at least 5 facilities that produce CO 2 for commercial use 7 and that have been constructed during the most recent 10 ears prior to the start of the project activit. These facilities include both conventional CO 2 production plants and CO 2 production plants using other available technologies (e.g., CO 2 production as b-product in ammonia and hdrogen plants, fermentation, thermal decomposition of CaCO3, sodium phosphate manufacture, capture of CO 2 directl from natural carbon dioxide gas wells). The host countr ma be used as a default geographical area. If there are less than 5 plants in the host countr that have been constructed during the most recent 10 ears prior to the start of the project activit, the geographical area should be extended to all neighboring countries. These plants (n) constitute the sample group for the calculation of the benchmark emission index. Collect and document in the CDM-PDD for each plant n the necessar data to determine the emission index. This includes data on the quantities and tpes of fossil fuels used, the quantit of electricit consumed and the quantit of CO 2 produced during the most recent ear for which data are available. In case of conventional CO 2 production plants, this refers to the overall electricit and fuel consumption in the plant. In case of other CO 2 production plants, this refers to the quantit of fossil fuels and electricit needed to capture and process the CO 2. Step 2: Calculation of the benchmark emission index The benchmark emission index is calculated as follows: BEI CO2, BL,BENCH = n BEI CO2,BL,n w n, z (7) BEI CO2,BL,n Baseline emission index of plant n (t CO 2 e/t CO 2 ). w n,z Share of CO 2 production of the plant n in ear z as a fraction total CO 2 production of all plants identified in step 1 to estimate the benchmark n CO 2 production plants identified in step 1 z Year prior to the start of the project activit or the most recent ear for which data are available 6 Ex-ante estimation of the emission reductions shall be based on prospected levels of CO 2 production at the project CO 2 production facilit. In calculating emission reductions for an given ear during the implementation of the project activit, onl ex-post approach, i.e. the monitored quantit of CO 2 produced at the project CO 2 production facilit in ear, shall be used. 7 Exclude facilities that produce CO2 for their own use onl (e.g. breweries) without selling CO 2 at the market 12/26

13 w n,z = n P CO2,n,z P CO2,n,z (7a) P CO2,n,z Quantit of CO 2 produced at the plant n in the ear z (t CO 2 /ear). The baseline emission index for the plant n is calculated as follows: BE BEI CO2,BL,n = P CO2,BL,n,z CO2,n,z (8) BE CO2,BL,n,z Emissions relating to CO 2 production at the plant n in ear z (t CO 2 /ear). The calculation of emissions relating to CO 2 production at each plant n depends on the tpe of plant: 8 a) If n corresponds to a conventional CO 2 production plant: BE CO2, BL,n,z = ECCO2,grid,n,z EFCO2,grid,z + i FC CO2,i,n,z NCV i,z EF CO2,i,n,z P CO2,n,z (9) EC CO2,grid,n,z EF CO2,grid,n,z FC CO2,i,n,,z EF CO2,i,n,z NCV i,z P CO2,n,z i Electricit consumption from the grid in the conventional CO 2 production plant n in ear z for generation, extraction and processing of CO 2 (MWh) Grid emission factor for the electricit used at the CO 2 production facilit n in ear z (tco 2 /MWh). Calculated in accordance with the latest approved version of the Tool to calculate the emission factor for an electricit sstem. Quantit of fossil fuel tpe i combusted in the CO 2 production plant n in ear z for generation, extraction and processing of CO 2 (t) Emission factor of fossil fuel tpe i at the CO 2 production facilit n in ear z (tco 2 /TJ) Net calorific value of fossil fuel tpe i in ear z (TJ/t) Quantit of CO 2 produced at the plant n in ear z (t CO 2 /ear) All fossil fuels used in the CO 2 production plant n in ear z Note: If plant specific data on the electricit and fossil fuel consumption are not available, the project participants ma use Annex I manufacturer s specifications for a modern conventional CO 2 production plant to estimate BEI CO2,BL,n. 8 At conventional CO 2 production plants, all fossil fuel combustion and electricit consumption from the grid can be attributed to the production of CO 2, but the quantit of CO 2 produced is subtracted, as this is also not included in project emissions. In other plants, onl the incremental use of fossil fuels and electricit to capture and process the CO 2 is taken into account. 13/26

14 b) If n corresponds to a CO 2 production facilit using other technolog than conventional CO 2 production processes: BE CO2, BL,n,z = ECCO2,grid,n,z EFCO2,grid,z + ECCO2,capt,n,z EFCO2,capt,n,z + i FC CO2,i,n,z NCV i,z EF CO2,i,n,z (10) EFCO2,, n, z 3.6 EF 2,,, = i CO capt n z (10a) Eff 1000 EC CO2,grid,n,z EF CO2, grid,n,z EC CO2,capt,n,z EF CO2, capt,n,z Eff capt,n,z capt, n, z Electricit from the grid used in the plant n for extraction and processing of CO 2 in the ear z (MWh). Electricit consumption in the process where CO 2 is generated as b-product is not included. Grid emission factor for the electricit used at the CO 2 production facilit n in the ear z (tco 2 /MWh). Calculated in accordance with the latest approved version of the Tool to calculate the emission factor for an electricit sstem. Electricit from a captive power plant used in the plant n for extraction and processing of CO 2 in the ear z (MWh). Electricit consumption in the process where CO 2 is generated as b-product is not included. Emission factor for the captive electricit generation at the CO 2 production facilit n in the ear z (tco 2 /MWh). Efficienc of the captive power generation plant in the CO 2 production facilit n in the ear z (%) FC CO2, i,n,z Quantit of fossil fuel tpe i used in the plant n for extraction and processing of CO 2 in the ear z (t). Fossil fuel consumption in the process where CO 2 is generated as bproduct is not included. EF CO2,i,n,z NCV i,z i CO 2 emission factor of fossil fuel tpe i in the ear z (tco 2 /TJ) Net calorific value of fossil fuel tpe i in ear z (TJ/t) All fossil fuels used in the plant n for extraction and processing of CO 2 in the ear z Note: If plant specific data on the electricit and fossil fuel consumption are not available, the project participants ma use documented Annex I manufacturer s specifications for a modern CO 2 production plant, using corresponding technolog, to estimate BEI CO2,BL,n. In the case where manufacturer s specifications are not available for a CO 2 production plant, using a technolog other than fossil fuel combustion without energ generation, the project participants must appl BEI CO2,BL,n =0 as a conservative assumption. Baseline emissions from the combustion of the tail gas at the industrial facilit In calculating baseline emissions from combustion of the tail gas at the industrial facilit, it is assumed that all carbon in the tail gas (i.e. in methane and other gases including other hdrocarbons, CO, and CO 2 ) is completel oxidized to carbon dioxide and that all flue gases are released into the atmosphere. BE IND, = min{v TG,,V TG,hist } w carbon,tg, (11) 14/26

15 BE IND, Baseline emissions from combustion of the tail gas in the ear (t CO 2 e/ear) V TG, Volume of the tail gas utilized in ear, i.e. volume of the tail gas delivered to the project CO 2 production facilit for extraction of CO 2 (m 3 ) V TG,hist Average annual volume of the tail gas generated in the period x (m 3 ) w carbon,tg, Average carbon content of the tail gas in the ear, (tc/m 3 ) 44 / 12 Weight conversion factor to provide for full oxidized carbon content in the tail gas, (tco 2 /tc) x Period immediatel preceding the start of the implementation of the project activit 5 All data used to establish the baseline emission index should be documented transparentl in the CDM- PDD. The calculation should be documented in a manner that it can be reproduced. Project emissions Emissions of greenhouse gases related to the operation of the project activit will include the following: Combustion or flaring of the off gas at the industrial facilit. After the tail gas is treated at the project CO 2 production facilit, the off gas is sent back to the industrial facilit for fuelling purposes or flaring. Energ requirements at the industrial facilit. Electricit consumption (i.e. self generated or grid imported) for tail gas transportation and other services provided to the project CO 2 production facilit. Energ requirements (i.e. electricit and heat) at the project CO 2 production facilit for processing of CO 2. Project emissions are calculated as follows: PE = PE + PE IND, CO2NEW, (12) PE Project emissions during ear, (tco 2 e/ear) PE IND, Project emissions at the industrial facilit during ear, (tco 2 e/ear) PE CO2NEW, Project emissions at the project CO 2 production facilit during ear, (tco 2 e) Project emissions at the industrial facilit PE IND, = PE IND,OG, + PE IND,ELEC, (13) PE IND,OG, PE IND,ELEC, Project emissions from the combustion of the off gas during ear, (tco 2 e/ear) Project emissions from the electricit consumption at the industrial facilit for the transportation of tail gas and other services provided to the project CO 2 production facilit during ear, (tco 2 e). This ma include electricit generated b a captive plant(s) at the industrial facilit and/or electricit imported from the grid b the 15/26

16 industrial facilit. Project emissions from the combustion of the off gas in the case when the tail gas was flared in the baseline scenario: PE IND,OG, VOG, w carbon, OG, = (14) V OG, Volume of off gas combusted at the industrial facilit during ear, (m 3 ) w carbon, OG, Average carbon content of off gas in ear, (tc/m 3 ) 44 / 12 Weight conversion factor to provide for full oxidized carbon content in off gas, (tco 2 /tc) Project emissions from the combustion of the off gas in the case when the tail gas was used for energ generation in the baseline scenario are calculated as follows: If VOG, < NCV OG, VTG, hist NCVTG, hist PE = (15) IND, OG, VOG, w carbon, OG, + ( VTG, hist NCVTG, hist VOG, NCVOG, ) EFcoal, V OG, Volume of off gas combusted at the industrial facilit during ear, (m 3 ) NCV OG, Net calorific value of off gas in ear, (GJ/m 3 ) V TG,hist Average annual volume of the tail gas generated in the period x, (m 3 ) NCV TG,hist Average net calorific value of tail gas in the period x, (GJ/m 3 ) w carbon, OG, Average carbon content of off gas in ear, (tc/m 3 ) 44 / 12 Weight conversion factor to provide for full oxidized carbon content in off gas, (tco 2 /tc) EF coal, CO 2 emission factor of coal in ear, (tco2e/gj) x Period immediatel preceding the start of the implementation of the project activit As a conservative simplification, it is assumed that the efficienc of energ generating unit using tail/off gas is the same as the efficienc of the unit using coal. If VOG,, use equation 14. NCV OG, VTG, hist NCVTG, hist Project emissions PE IND,ELEC, should be calculated using the latest approved version of the Tool to calculate project emissions from electricit consumption. Project emissions at the project CO 2 production facilit PE CO2NEW, = PE CO2NEW,ELEC, + PE CO2NEW,FF, (16) 16/26

17 PE CO2NEW,ELEC, PE CO2NEW,FF, Project emissions from the electricit consumption at the project CO 2 production facilit, including the transportation of off gas back to the industrial facilit, during ear, (tco 2 e/ear). This includes both electricit generated b a captive plant(s) at the industrial facilit and electricit imported from the grid b the project CO 2 production facilit. Project emissions from the use of fossil fuels at the project CO 2 production facilit during ear, (tco 2 e/ear). Project emissions PE CO2NEW,ELEC, and PE CO2NEW,FF, should be calculated using the latest approved versions of the Tool to calculate project emissions from electricit consumption and the Tool to calculate project or leakage CO 2 emissions from fossil fuel combustion respectivel. All data for gas volumes in all equations should be converted to common standard temperature and pressure values. Leakage Leakage emissions need to be accounted for if scenario 2 in the applicabilit conditions and baseline scenarios C3 or C5 appl: LE = P CO2,PJ, w non conv (17) w non -conv = w n n,z, where n corresponds to plants using other technologies than the conventional CO 2 production process (18) P CO2,PJ, Amount of CO 2 produced at the project CO 2 production facilit in ear, (tco 2 ) w non-conv Share of CO 2 produced b CO 2 production facilities using other technologies than the conventional process in ear z preceding the start of the project activit. Emission Reductions Emission reductions for an given ear of the crediting period can be obtained b subtracting project and leakage emissions from baseline emissions: ER = BE - PE - LE (19) ER BE PE LE Emissions reductions of the project activit during the ear, (tco 2 e/ear) Baseline emissions during the ear, (tco 2 e/ear) Project emissions during the ear, (tco 2 e/ear) Leakage emissions during the ear, (tco 2 e/ear) 17/26

18 In case of scenario 1, baseline scenario C2 and case A (under baseline emissions), emission reductions can onl be claimed as long as (a) the existing conventional CO 2 production plant is operating and (b) has not reached the end of its technical lifetime. In case of scenario 1, baseline scenario C2 and case B (under baseline emissions), emission reductions can onl be claimed as long as the existing conventional CO 2 production plant would not have reached the end of its technical lifetime. Changes required for methodolog implementation in 2 nd and 3 rd crediting periods Consistent with guidance b the Executive Board, project participants shall assess the continued validit of the identified baseline scenarios and update the baseline parameters. Similarl, the benchmark for the production of CO 2 should be updated at the renewable of the crediting period. Data and parameters not monitored V TG, x Data unit: m 3 Average volume of tail gas generated in the industrial facilit during three ears prior to the implementation of the project activit Source of data: Historical records Flow meter totalizer data (to be obtained from industrial facilit process unit control sstem records) An comment: Applied to calculate BE IND,. Tail gas flow meters shall be calibrated according to the suppliers specifications and following the industrial facilit QA/QC procedures. In order to compl with the applicabilit conditions DOEs should verif records or evidence of the generation of the tail gas in accordance with the ears the industrial facilit has been in operation as well as its use (i.e. fuel purposes or flared) w carbon, TG, x Data unit: tc/m 3 Carbon content in tail gas stream generated in the industrial facilit during three ears prior to the implementation of the project activit. Source of data: Historical records Chemical analsis (e.g. gas chromatograph) An comment: Applied to verif compliance with the applicabilit conditions. Gas analzing equipment shall be calibrated according to the suppliers specifications and following the industrial facilit QA/QC procedures. 18/26

19 Data unit: Source of data: An comment: Data unit: Source of data: An comment: Data unit: Source of data: An comment: EC CO2,BL, grid, x MWh Electricit consumption from the grid at the baseline CO 2 production facilit during period x Plant historical data As per electricit supplier standard measurements, supporting documents and plant records Applied in equation for estimation of BE CO2,BL, x EF CO2, grid, x tco 2 /MWh Grid emission factor for the period x Calculated in accordance with the latest approved version of the Tool to calculate the emission factor for an electricit sstem None Applied in equation for estimation of BE CO2,BL, x FC CO2,BL,i, x t Amount of fuel tpe i combusted at the baseline CO 2 production facilit during period x Plant historical data As per fuel supplier standard measurements, supporting documents and plant records Applied in equation for estimation of BE CO2,BL, x EF CO2,i,x Data unit: tco 2 /TJ Fuel emission factor for the period x (per fuel tpe) Source of data: The source of data should be the following, in order of preference: project specific data, countr specific data or IPCC default values. As per guidance from the Board, IPCC default values should be used onl when countr or project specific data are not available or difficult to obtain. None An comment: Applied in equation for estimation of BE CO2,BL, x Data unit: Source of data: An comment: EC CO2,grid,n,z MWh Electricit consumption from the grid at the CO 2 production facilit n in ear z Plant historical data (benchmark analsis data) As per electricit supplier standard measurements, supporting documents and plant records Applied to calculate BE CO2,BL,n,z 19/26

20 Data unit: Source of data: An comment: Data unit: Source of data: An comment: Data unit: Source of data: An comment: EF CO2, grid, n,z tco 2 /MWh Grid emission factor for the electricit used at the CO 2 production facilit n in ear z Calculated in accordance with the latest approved version of ACM0002 None Applied to calculate BE CO2,BL,n,z. FC CO2,i,n,z t Amount of fuel tpe i combusted at the CO 2 production facilit n in ear z (per fuel tpe) Plant historical data (benchmark analsis data) As per fuel supplier standard measurements, supporting documents and plant records Applied to calculate BE CO2,BL,n,z. EF CO2,i,n,z tco 2 /TJ Fuel emission factor for the fuel tpe i at the CO 2 production facilit n in ear z (per fuel tpe) The source of data should be the following, in order of preference: project specific data, countr specific data or IPCC default values. As per guidance from the Board, IPCC default values should be used onl when countr or project specific data are not available or difficult to obtain. None Applied to calculate BE CO2,BL,n,z.. IPCC guidelines/good practice guidance provide for default values where local data are not available. P CO2, BL, x Data unit: tco 2 Amount of CO 2 produced at the existing CO 2 production facilit during period x (applied in the estimation of the BE CO2,BL, x ) Source of data: Plant historical data CO 2 production facilit methods (volumetric and weight measurements and product inventor records) An comment: Applied in the estimation of the BE CO2,BL, x 20/26

21 P CO2, x Data unit: tco 2 Quantit of CO 2 produced in the existing conventional CO 2 production facilit in ear x (tco 2 /r) Source of data: Plant historical data CO 2 production facilit methods (volumetric and weight measurements and product inventor records) An comment: Year x is the ear preceding the implementation of the project activit P CO2, n,z Data unit: tco 2 Quantit of CO 2 produced at the CO 2 production facilit n in ear z Source of data: Plant historical data CO 2 production facilit methods (volumetric and weight measurements and product inventor records) An comment: Applied to calculate BE CO2,BL,n,z.. Data unit: Source of data: An comment: Data unit: Source of data: An comment: NCV (i,x), (i,z), (OG,), (TG,x) Joules / mass or volume unit Net calorific value of fossil fuel tpe i in the period x Net calorific value of fossil fuel tpe i in ear z Net calorific value of off gas in ear Net calorific value of tail gas in the period x Preferabl invoices from fuel supplier or use accurate and reliable local or national data where available. Where such local or national data are not available, IPCC default emission factors (countr-specific, if available) ma be used if the are deemed to reasonabl represent local circumstances Use mass or volume meters. s according to best international practices i = index for fossil fuel tpe. x = index for three ear period prior to the start of the project. z = index for the ear before the start of the project activit or the most recent ear for which data are available. = index for the project ear. The NCV for period x should be calculated as the average. EF coal, t CO 2 /GJ CO 2 emission factor of coal in ear The source of data should be the following, in order of preference: project specific data, countr specific data or IPCC default values. As per guidance from the Board, IPCC default values should be used onl when countr or project specific data are not available or difficult to obtain. none 21/26

22 GWP CH4 Data unit: tco 2 e/tch 4 Global Warming Potential for methane Source of data: IPCC 21 for the first commitment period, shall be updated according to an future COP / MOP decisions An comment: None ID Number: 18 SALES,x Data unit: Tons of CO 2 CO 2 actuall sold and delivered to customers before the start of the project activit. These records should include inter alia: Amount purchased Contact information of customers Tpe of customer according to end use of the CO 2 Date of deliver Source of data: Management records. Historical records from three ears prior to the start of the project activit None (from archives). An comment: Applied to verif compliance with the applicabilit conditions. These data have to be collected in order to ensure that the production of CO 2 is justified b a real demand in the market. The end use of the product should not differ significantl after the start of the project activit implementation. III. MONITORING METHODOLOGY Monitoring procedures The monitoring methodolog involves monitoring of the following: The composition and quantit of tail gas produced b the industrial facilit process unit; The quantit and carbon intensit of an additional energ source used for transportation purposes; The composition and quantit of off gas returned to the industrial facilit from the project CO 2 production facilit; The quantit and carbon intensit of an energ source used at the project CO 2 production facilit and for off gas transportation purposes; An fugitive emissions of methane or CO 2 at the project CO 2 production facilit; An fugitive emissions of methane or CO 2 along the tail gas and off gas transportation pipeline sstem (including those from accidental events). Project emissions: All the procedures to monitor and measure parameters needed to calculate project emissions shall be integrated into the plant qualit control process, according to the plant qualit certifications. The monitoring frequenc varies from one parameter to another according to their variabilit grade over time 22/26