CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) Version 03 - in effect as of: 22 December 2006 CONTENTS

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1 CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) Version 03 - in effect as of: 22 December 2006 CONTENTS A. General description of the small scale project activity B. Application of a baseline and monitoring methodology C. Duration of the project activity / crediting period D. Environmental impacts E. Stakeholders comments Annexes Annex 1: Contact information on participants in the proposed small scale project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring Information 1

2 Revision history of this document Version Date Description and reason of revision Number January 2003 Initial adoption 02 8 July 2005 The Board agreed to revise the CDM SSC PDD to reflect guidance and clarifications provided by the Board since version 01 of this document. As a consequence, the guidelines for completing CDM SSC PDD have been revised accordingly to version 2. The latest version can be found at < December The Board agreed to revise the CDM project design 2006 document for small-scale activities (CDM-SSC-PDD), taking into account CDM-PDD and CDM-NM. 2

3 SECTION A. General description of small-scale project activity A.1 Title of the small-scale project activity: Forced methane extraction from organic wastewater and power generation by Greenergy Power Pvt. Ltd. at Sevenagala Version of the PDD 02; Date of completion A.2. Description of the small-scale project activity: The main purpose of the project activity is the installation of a closed anaerobic digestion system to extract methane rich biogas from organic wastewater known as spent wash generated at the distillery of Sevenagala Sugar Industries Ltd. (SSIL). The biogas is collected and utilized as fuel in boilers to produce steam and the steam is utilized to produce energy at the distillery. SSIL has a distillery with production capacity of 30,000 litres of alcohol per day at Sevenagala in Moneragala district in Sri Lanka. Distillery utilizes molasses, a by product of the sugar mill, for production of rectified spirit. The wastewater from distillation process has high organic content and the organic content is measured in terms of chemical oxygen demand (COD) and biological oxygen demand (BOD). The spent wash has to be treated to bring down the levels of COD and BOD to prescribed standards of environmental authorities and SSIL treated this organic wastewater in open anaerobic lagoons. The wastewater due to its high organic content when subjected to anaerobic degradation in open lagoons, releases greenhouse gases (GHG) into the atmosphere apart from loosing large quantities of energy that could be recovered. Realizing the effects of greenhouse gases being released into atmosphere from open anaerobic lagoons and appreciating the importance of recovering valuable energy from the wastewater, The Greenergy Power Pvt Ltd. had decided to establish a biogas recovery plant in the same premises through an anaerobic digestion system and utilize biogas as fuel to generate steam for the distillery. The quantity of spent wash generated from the distillery is around 450 m 3 per day with a COD of approx. 80,000 mg/l and a BOD of approx. 26,000 mg/l with a temperature of 80 o C. This project activity entails treatment of high COD/BOD spent wash anaerobically in a closed digester and capturing the methane in a controlled manner. The methane captured is combusted in a boiler for steam generation. The project activity reduces greenhouse gas emissions through diverting the organic wastewater from existing open anaerobic lagoon treatment system to closed anaerobic treatment system and thereby preventing the release of methane, a GHG, into the atmosphere. The generated methane rich biogas will be used as fuel to generate steam, which displaces furnace oil; thereby reducing the GHG emissions associated with furnace oil firing. The sustainable development contribution of the project activity can be summarized as preventing release of large quantities of methane, a potent GHG, into atmosphere, collection and utilization of methane as a fuel to generate steam and power contributes to the development of renewable energy, generation of direct and indirect employment, reduction of pollution through an energy saving technology and reduction of bad odours as most of the odour producing reactions occur in closed anaerobic digesters. 3

4 A.3. Project participants: Table 1. Project participants: Name of Party involved (host indicates a host Party) Private and/or public entity (ies) project participants (as applicable) Sri Lanka (Host Party) Greenergy Power Pvt Ltd (Private entity) Research & Development International Consultants Pvt Ltd (Private entity) Asia Carbon Consultants Pvt Ltd (Private entity) Kindly indicate if the Party involved wishes to be considered as project participant (Yes/No) No A.4. Technical description of the small-scale project activity: A.4.1. Location of the small-scale project activity: A Host Party(ies): The Government of Democratic Socialist Republic of Sri Lanka is the host country. Sri Lanka ratified the UNFCCC on 23 November 1993 and acceded to the Kyoto Protocol on September 3rd, The Government has established its Designated National Authority which is registered with the CDM Executive Board. The DNA contact person is the Director, Environment Economics and Global Affairs Division, Ministry of Environment and Natural Resources (Tel: ; envocon@sltnet.lk; airmac@sltnet.lk). A Region/State/Province etc.: Moneragala District, Uva Province of Sri Lanka A City/Town/Community etc: Sevanagala, Embilipitiya Sri Lanka A Details of physical location, including information allowing the unique identification of this small scale project activity : The project is located in the Moneragala District, at Sevanagala close to Thimbolketiya, Embilipitiya. The road access to the factory from Colombo is via Ratnapura (101 km. from Colombo on Route A4), to Pelmadulla (20 km.on Route A4) to Thimbolketiya (42 km. on Route A18) and proceeding 2 km on the road to Tanamalwila and turning right immediately after crossing the Udawalawe Dam and spillway and proceeding 2 kilometres. The factory is 172 km. from Colombo. This location has an ambient temperature of about 35 C with an annual rainfall of about 1800mm. 4

5 Map of Sri Lanka A.4.2. Type and category(ies) and technology/measure of the small-scale project activity: The project is a small scale CDM project activity and is based on Appendix B of the simplified Modalities and Procedures for small-scale CDM project activities. The small scale project activity has two parts and conforms to following categories. Part 1 Type : III. Other Project Activities Category : III H. Methane Recovery in Wastewater Treatment Sectoral Scope : 13 Technology/measure According to the version 10 dated 10 th October, 2008 (most recent version), paragraph 1, option 6, this methodology comprises measures that recover biogas from biogenic organic matter in wastewaters by means of; introduction of a sequential stage of wastewater treatment with methane recovery and combustion, with or without sludge treatment, to an existing wastewater treatment system without biogas recovery (e.g. introduction of treatment in an anaerobic reactor with methane recovery as a sequential treatment step for the wastewater that is presently being treated in an anaerobic lagoon without methane recovery). According to paragraph 2, the recovered biogas from the above measures may also be utilised for the following applications instead of combustion/flaring: (a) Thermal or electrical energy generation directly 5

6 According to paragraph 3, if the recovered biogas is used for project activities covered under paragraph 2 (a), that component of the project activity can use a corresponding category under type I. According to paragraph 12, measures are limited to those that result in aggregate emission reductions of less than or equal to 60 kt CO 2 equivalent annually from all type III components of the project activity. Part 2 Type : I. Renewable Energy Projects Category : I. C. Thermal energy for the user with or without electricity Sectoral Scope : 1 Technology/measure 1. This category comprises renewable energy technologies that supply individual households or users with thermal energy that displaces fossil fuels. Examples include solar thermal water heaters and dryers, solar cookers, energy derived from renewable biomass for water heating, space heating, or drying, and other technologies that provide thermal energy that displaces fossil fuel. Biomass-based co-generating systems that produce heat and electricity are included in this category. 2. Where thermal generation capacity is specified by the manufacturer, it shall be less than 45 MW. Raw effluent i.e. raw spent wash from the distillery shall be carried to treatment site through suitably designed channel or a closed pipe depending upon the topography of the site. Raw spent wash shall then be passed through plate heat exchangers to bring down the temperature o C. The spent wash is then collected in buffer tank. In buffer tank raw spent wash is then mixed with part of reactor effluent for preacidification. From buffer tank the mixed effluent is then pumped to Structured Media Anaerobic Treatment Reactor [SMAT]. The Anaerobic Reactor will be designed as per guidelines of API 650 and is partially packed with structured media. The entire media remains submerged in the reactor content. The bacteria grow and reside on large surface area provided by media. The bacteria developed on media surface takes upon organic content of wastewater to metabolize it and produce biogas and biomass. The biogas produced by anaerobic digestion inside the reactor is collected at the Gas Dome. The Gas Dome is placed at Reactor roof and is fitted with all essential safety equipment such as breather valve, flame arrestor etc., the biogas is then conveyed to blower for further utilization in boiler or biogas engines. The project was initiated by Research & Development International Consultants Pvt Ltd with collaboration with Lars Enviro Pvt. Ltd. India, an association of Larsen Group USA. The transfer of Know-How has been realized with training abroad and visit from the manufacturer representative who will provide in-house training on day to day running and maintenance of each and every machine. The technology used in this project is safe for the environment and well proven technology. The project activity reduces greenhouse gas emissions through diverting the organic wastewater from existing open anaerobic lagoon treatment system to closed anaerobic treatment system and thereby preventing the release of methane, a GHG, into the atmosphere. The generated methane rich biogas will be used as fuel to generate steam, which displaces furnace oil; thereby reducing the GHG emissions associated with furnace oil firing and also reducing bad odours produce in anaerobic lagoons which is an environmental hazard for the rural community living around Sevenagala. From this perspective the proposed closed anaerobic digestion system can be considered as one of the most environmental friendly and safe options available. 6

7 A.4.3 Estimated amount of emission reductions over the chosen crediting period: The estimated amount of emission reductions from the small scale project activity over the chosen crediting period is given in Table 1. Table 1 Estimated amount of emission reductions Years Estimation of annual emission reductions in tonnes of CO 2 e Year 1 ( ) 38,792 Year 2 ( ) 38,792 Year 3 ( ) 38,792 Year 4 ( ) 38,792 Year 5 ( ) 38,792 Year 6 ( ) 38,792 Year 7 ( ) 38,792 Year 8 ( ) 38,792 Year 9 ( ) 38,792 Year 10 ( ) 38,792 Total estimated reductions (tonnes of CO 2 e) 387,920 Total number of crediting years Annual average of the estimated reductions over the crediting period 10 years 38,792 t CO 2 e A.4.4. Public funding of the small-scale project activity: There is no Official Development Assistance (ODA) or public funding from Annex 1 Parties for the project activity. A.4.5. Confirmation that the small-scale project activity is not a debundled component of a large scale project activity: The current project activity is not a debundled component of a larger project activity because the project proponent has not registered any small scale CDM project activity or applied for registration another small scale CDM project activity within 1km of the project boundary of the proposed CDM project activity nor registered within the previous 2 years in the same project category and technology/measure. 7

8 SECTION B. Application of a baseline and monitoring methodology B.1. Title and reference of the approved baseline and monitoring methodology applied to the small-scale project activity: Part 1 Title : Methane Recovery in Wastewater Treatment Type : III. Other Project Activities Category : Type III H. Version number : 10 Sectoral Scope : 13 Reference : AMS III H/ Version 10 dated 10 th October, 2008 Part 2 Title : Thermal Energy for the User Type : I. Renewable Energy Category : Type I C. Version number : 13 Sectoral Scope : 01 Reference : AMS 1 C/ Version 13dated 28 th March, 2008 B.2 Justification of the choice of the project category: The main purpose of the project activity is the installation of a closed anaerobic digestion system to extract methane rich biogas from organic wastewater known as spent wash generated at the distillery of Sevenagala Sugar Industries Ltd. (SSIL), that is presently being treated in an anaerobic lagoon without methane recovery. This is in accordance with the AMS III H, Methane Recovery in Wastewater Treatment. Further, the estimated annual emission reduction of the project activity is 38.8 ktco 2 e which is less than the small scale limit of 60 ktco 2 e. The extracted methane rich biogas will be collected and utilized as fuel, substituting furnace oil, in boilers to produce steam and the steam will be utilized to produce energy at the distillery. This is accordance with the I. C. Thermal energy for the user with or without electricity, which comprises renewable energy technologies that supply individual households or users with thermal energy that displaces fossil fuels. B.3. Description of the project boundary: The project boundary as per version 10 of AMS-III.H, is the physical, geographical site where the wastewater and sludge treatment takes place. The project boundary comprises of the following: Methane recovery system consisting of pre-treatment units, SMAT reactor, collection tank. Post treatment system consisting of anaerobic lagoons Flare and blower 8

9 B.4. Description of baseline and its development: 1. Methane Recovery in Wastewater Treatment According to the version 10 dated 10 th October, 2008 (most recent version), paragraph 16, Baseline emissions for the systems affected by the project activity may consist of: (i) Emissions on account of electricity or fossil fuel used (BE power,y ) (ii) Methane emissions from baseline wastewater treatment systems (BE ww,treatment,y ) (iii) Methane emissions from baseline sludge treatment systems (BE s,treatment,y ) (iv) (v) Methane emissions on account of inefficiencies in the baseline wastewater treatment systems and presence of degradable organic carbon in the treated wastewater discharged into river/lake/sea (BE ww,discharge,y ) Methane emissions from the decay of the final sludge generated by the baseline treatment systems (BE s,final,y ) BEy = {BE power, y + BEww,treatment, y + BEs,treatment, y + BEww,disch arge, y + BEs, final, y} (1) Where: BE y Baseline emissions in year y (tco 2 e) BEpower,y Baseline emissions from electricity or fuel consumption in year y (tco 2 e) BEww,treatment,y BEs,treatment,y BEww,discharge,y BEs,final,y Baseline emissions of the wastewater treatment systems affected by the project activity in year y (tco 2 e) Baseline emissions of the sludge treatment systems affected by the project activity in year y (tco 2 e) Baseline methane emissions from degradable organic carbon in treated wastewater discharged into sea/river/lake in year y (tco 2 e). The value of this term is zero for the case 1 (ii). Baseline methane emissions from anaerobic decay of the final sludge produced in year y (tco 2 e). If the sludge is controlled combusted, disposed in a landfill with biogas recovery, or used for soil application in the baseline scenario, this term shall be neglected. According to the paragraph 19, baseline emissions from electricity consumption (BE power,y ) are determined as per the procedures described in AMS-I.D. The energy consumption shall include all equipment/devices in the baseline wastewater and sludge treatment facility. For emissions from fossil fuel consumption the emission factor for the fossil fuel shall be used (tco 2 /tonne). Local values are to be used, if local values are difficult to obtain, IPCC default values may be used. If recovered biogas in the baseline is used to power auxiliary equipment it should be taken into account accordingly, using zero as its emission factor. According to the paragraph 20, methane emissions from the baseline wastewater treatment systems affected by the project (BE WWJreatmenty ) are determined using the methane generation potential of the wastewater treatment systems : BE ww,treatment,y = Σ i Q ww,j,y * COD removed,j,y * MCF ww,treatment,,bl,j * B o,ww * UF BL * GWP CH4 (2) 9

10 Where: Q ww,j,y COD removed,j,y MCF ww,treatment,,bl,j i B o,ww Volume of wastewater treated in baseline wastewater treatment system i in year y (m 3 ) Chemical oxygen demand removed by baseline treatment system i in year y (tonnes/m 3 ), measured as the difference between inflow COD and the outflow COD in system i Methane correction factor for baseline wastewater treatment systems i (MCF values as per table III.H.1.) Index for baseline wastewater treatment system Methane producing capacity of the wastewater (IPCC lower value for domestic wastewater of 0.21 kg CH 4 /kg COD) 6 UF BL Model correction factor to account for model uncertainties (0.94) 7 GWP CH4 Global Warming Potential for methane (value of 21) According to the paragraph 21, the Methane Correction Factor (MCF) shall be determined based on the following table: Table III.H.1. IPCC default values 8 for Methane Correction Factor (MCF) Type of wastewater treatment and discharge pathway or system MCF value Discharge of wastewater to sea, river or lake 0.1 Aerobic treatment, well managed 0.0 Aerobic treatment, poorly managed or overloaded 0.3 Anaerobic digester for sludge without methane recovery 0.8 Anaerobic reactor without methane recovery 0.8 Anaerobic shallow lagoon (depth less than 2 metres) 0.2 Anaerobic deep lagoon (depth more than 2 metres) 0.8 Septic system Default values from chapter 6 of volume 5. Waste in 2006 IPCC Guidelines for National Greenhouse GasInventories According to the paragraph 22, methane emissions from the baseline sludge treatment systems affected by the project activity are determined using the methane generation potential of the sludge treatment systems: S j,bl,y BE treatment, s,y = Σ j S j,bl,y * MCF s,treatment,bl,j *DOC s * UF BL * DOC F * F * 16/12 * GWP CH4 (3) Amount of dry matter in the sludge that would have been treated by the sludge treatment system j in the baseline scenario (tonne). j Index for baseline sludge treatment system 10

11 DOC s Degradable organic content of the untreated sludge generated in the year y (fraction, dry basis). Default values of 0.5 for domestic sludge and for industrial sludge 9 shall be used. MCF s,treatment,bl,j Methane correction factor for the baseline sludge treatment system j (MCF values as per table III.H.1) UF BL Model correction factor to account for model uncertainties (0.94) DOC F Fraction of DOC dissimilated to biogas (IPCC default value of 0.5) F Fraction of CH 4 in biogas (IPCC default of 0.5) In case sludge is composted, the following formula shall be applied BE treatment, s,y = Σ j S j,bl,y * EF composting * GWP CH4 (4) Where: EF composting Emission factor for composting of organic waste (t CH4/ton waste treated). Emission factors can be based on facility/site-specific measurements, country specific values or IPCC default values (table 4.1, chapter 4, Volume 5, 2006 IPCC Guidelines for National Greenhouse Gas Inventories). IPCC default value is 0.01 t CH4/ t sludge treated on a dry weight basis According to the paragraph 23, if the baseline wastewater treatment system is different from the treatment system in the project scenario, the sludge generation rate (amount of sludge generated per unit COD removed) in the baseline situation may differ significantly from the project situation. For example, it is known that the amount of sludge generated in aerobic wastewater systems is larger than in anaerobic systems, for the same COD removal efficiency. Therefore, for those cases, the monitored values of the amount of sludge generated during the crediting period will be used to estimate the amount of sludge generated in the baseline, as follows: S j,bl,y = S t,pj,y * SGR BL /SGR PJ (5) Where: S j,bl,y SGR BL SGR PJ Amount of dry matter in the sludge treated by the sludge treatment system l in year y in the project scenario (tonne) Sludge generation ratio of the wastewater treatment plant in the baseline scenario (tonne of dry matter in sludge / tonne COD removed). This ratio will be measured ex ante through representative measurement campaign, or using historical records of COD removal and sludge generation of at least one year prior to the project implementation as per paragraph 17 or 18 Sludge generation ratio of the wastewater treatment plant in the project scenario (tonne of dry matter in sludge / tonne COD removed). Calculated using the monitored values of COD removal and sludge generation in the project scenario 11

12 According to the paragraph 24, methane emissions from degradable organic carbon in treated wastewater discharged in e.g. a river, sea or lake in the baseline situation are determined as follows: BE ww,discharge,y = Q ww,y * MCF ww,bl.discharge *COD ww,discharge,y * B o,ww * UF BL * GWP CH4 (6) Where: Q ww,y Volume of treated wastewater discharged in year y (m 3 ) UF BL Model correction factor to account for model uncertainties (0.94) COD ww,discharge,bl,y Chemical oxygen demand of the treated wastewater discharged into sea, river or lake in the baseline situation in the year y (tonnes/m 3 ). If the baseline scenario is the discharge of untreated wastewater, the COD of untreated wastewater shall be used MCF^udischarge Methane correction factor based on discharge pathway in the baseline situation (e.g. into sea, river or lake) of the wastewater (fraction) (MCF values as per table III.H.1) According to the paragraph 25, methane emissions from anaerobic decay of the final sludge produced are determined as follows: BE s,final,,y = S final,bl,y * MCF s,,bl,final *DOC s * UF BL * DOC F * F * 16/12 * GWP CH4 (7) Where: Sfinal,BL,y MCF s,bl,final Amount of dry matter in final sludge generated by the baseline wastewater treatment systems in the year y (tonnes). If the baseline wastewater treatment system is different from the project system, it will be estimated using the monitored amount of dry matter in final sludge generated by the project activity (S final,pj,y ) corrected for the sludge generation ratios of the project and baseline systems as per formula 5 above Methane correction factor of the disposal site that receives the final sludge in the baseline situation, estimated as per the procedures described in AMS-III.G UF BL Model correction factor to account for model uncertainties (0.94) 12

13 The following data are used to determine the baseline emissions Parameter Variable Value Unit Source Annual volume of waste water (spent wash) treated in baseline waste water Q y, ww 450 m 3 Operating records at the distillery treatment system COD of the inflow COD incharge Tonnes/m 3 Maintenance Records COD of the outflow COD discharge Tonnes/m 3 Maintenance COD removed by baselne treatment system measured as the difference between the inflow COD and outflow COD Methane producing capacity of the wastewater Methane correction factor for the existing Records COD y,removed,i Tonnes/m 3 Maintenance Records B o, ww 0.21 kg CH 4 /kg COD IPCC MCF ww,treatmen t,i 0.8 IPCC (Table III H 1) anaerobic wastewater treatment systems Global Warming Potential, methane GWP_CH 4 21 IPCC The baseline emission calculated is 40,559 tco 2 /year. 2. Thermal Energy for the User The baseline emission is as per section 6 of the AMS 1 C/ Version 13, dated 28 th March, 2008, For renewable energy technologies that displace technologies using fossil fuels, the simplified baseline is the fuel consumption of the technologies that would have been used in the absence of the project activity times an emission coefficient for the fossil fuel displaced. IPCC default values for emission coefficients may be used. Baseline fuel consumption = Fuel consumption X Emission Coefficient of fuel displaced from fuel oil displacement (TJ) tco 2 /TJ (tco 2 e) The fuel consumption will be in energy units (TJ) and can be calculated when the energy content in the produced steam with a certain rate of boiler efficiency is known. The formula to calculate fuel consumption is given below. Fuel Consumption (TJ) = Steam Production (TJ) X 1/Boiler efficiency The following data are used to determine the baseline emissions Parameter Value Unit Source Steam Production 6 tonnes /hour Operating records at the distillery Heat value 2.36 GJ/tonne IPCC Working Hours 7200 Hours/year Operating records of the boiler at the distillery Boiler Efficiency 80 % Operating records at the distillery Emission Coefficient of fuel displaced tco 2 /TJ IPCC The baseline emission calculated is 9,444 tco 2 /year. 13

14 B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the registered small-scale CDM project activity: The implementation of the methane recovery and utilization to generate power is a voluntary step undertaken by Greenergy Power Pvt. Ltd. with Climate change initiative and the main objectives have been: GHG reduction by capturing methane rich biogas being emitted from lagoons and subsequent carbon financing against sale consideration of certified emission reductions. GHG reduction by producing electricity from captured methane rich biogas and thus displacing the fossil fuel dominated grid electricity. Capacity building in operation and maintenance of energy recovery plants and renewable energy generation plants. However, the project proponent was aware of the various barriers associated to project implementation. But it was felt that the availability of carbon financing against a sale consideration of emission reductions generated due to project activity would help to overcome these barriers. Moreover, it is well known fact, that methane recovery and its utilization to generate electricity has various advantages, it is still not applied, particularly in the sugar sector in Sri Lanka. Although, the anaerobic lagoons are operating smoothly, considering the effects of methane to the environment, Greenergy Power Pvt. Ltd. had invested in the project activity to recover methane rich biogas and utilise the biogas as fuel in heat generation equipment to produce steam and steam is used to generate power. Demonstration of Additionality As per the attachment A to Appendix B of the simplified M&P for small-scale CDM project activities of the UNFCCC CDM website, to prove that the project is an additional, explanation regarding the project activity would not have occurred anyway due to at least one of the following barriers is required: (i.) Investment barriers (ii.) Technological barriers (iii.) Barrier due to prevailing practice (iv.) Other barriers Methane capture and electricity generation project had its own barriers for implementation, which had to be overcome by Greenergy Power Pvt. Ltd. to implement the project activity and to reduce green house gas emissions. Although discussion of one of the barriers is adequate for a small scale project activity, three main barriers are discussed to show that the project activity had several barriers. Investment Barrier Generally the distilleries in Sri Lanka have the open lagoon system for treatment of high BOD/COD spent wash, which is effective and less cost intensive. But in open lagoon system methane is generated due to decomposition of waste and escape into open atmosphere and there is no methane capturing is involved. Methane is a potent GHG and thus harmful to the environment. Greenergy Power Pvt. Ltd. being conscious towards its social responsibilities has always adopted technologies which have helped in sustainable development of the region. Due to this it adopted the project activity of controlled decomposition of waste in a digester and captures the Methane generated. However, it required more on the part of Greenergy Power Pvt. Ltd. in terms of investments (estimated cost is around USD 1.70 Mn), managerial intervention and operation, maintenance and controls of the technology. It also has to invest in other related facilities such as laboratory infrastructure at the site for the analysis of wastes, production and control of bacteria for the 14

15 digester etc. The project activity also involves power generation using the captured Methane in the decomposition plant and so required additional investments in turbine, boiler, allied systems, required controls and suitably skilled human resource. However, financially more viable option (open lagoon) would have led to higher GHG emissions and Greenergy Power Pvt. Ltd. decided to invest in the project primarily due to the following reasons: The project is environmentally positive The project will become financially viable after accounting for benefits from carbon credits Technology Barrier The implementation of Structured Media Anaerobic Treatment Reactor [SMAT] process based methane recovery project was first of its kind for the sugar industry in Sri Lanka and had no prior experience in operation and monitoring of such advanced anaerobic treatment processes. SSIL staff had to be trained by the technology provider in operation, maintenance, trouble shooting and monitoring of the SMAT anaerobic digestion plant. SSIL is using the existing lagoon system and training the staff in a new treatment method is a barrier. SMAT is an advanced anaerobic treatment system and one of the latest developments. The operation of SMAT reactor is complex as compared to operation of anaerobic lagoons. In the case of anaerobic lagoons, very little operation is required where as in the case of SMAT digester, several process parameters like acidity, alkalinity, temperature, loading rates, recirculation rates, etc., have to be monitored and maintained for optimum performance and sustained performance of the SMAT system. Barrier due to prevailing practice The implementation of Structured Media Anaerobic Treatment Reactor [SMAT] process based methane recovery project is the first biomethanization project for the sugar industry in Sri Lanka. Generally, the distilleries in Sri Lanka have the open lagoon system for treatment of high BOD/COD spent wash, which is effective, less troublesome and also operating smoothly. Moreover, there are no emission standards for methane from anaerobic lagoons. Further, spent wash has not been utilized as a fuel or fertilizer or animal feed and no market has emerged for the spent wash to date and that it would still not be feasible to utilize for any purpose. Therefore, open lagoon system would continue in the absence of this project activity. B.6. Emission reductions B.6.1. Explanation of methodological choices: According to paragraph 29, for all scenarios in paragraph 1 i.e.1 i) till 1.vi) emission reductions shall be estimated ex ante in the PDD using the formulas provided in the baseline, project and leakage emissions sections above. Emission reductions shall be estimated ex ante as follows: ER y,ex ante = BE y,ex ante - (PE y,ex ante + LE y,ex ante ) Where: ER y,ex ante Ex ante emission reduction in year y (tco 2 e) BE y,ex ante Ex ante leakage emissions in year y (tco 2 e) PE y,ex ante Ex ante project emissions in year y calculated as paragraph 26 (tco 2 e) LE y,ex ante Ex ante baseline emissions in year y calculated as per paragraph 16 (tco 2 e) 15

16 Baseline emissions 1. Biogas Emissions According to the version 10 dated 10 th October, 2008 (most recent version), paragraph 16, BEy = {BE power, y + BEww,treatment, y + BEs,treatment, y + BEww,disch arge, y + BEs, final, y} (1) Where: BE y Baseline emissions in year y (tco 2 e) BEpower,y Baseline emissions from electricity or fuel consumption in year y (tco 2 e) BEww,treatment,y BEs,treatment,y BEww,discharge,y BEs,final,y Baseline emissions of the wastewater treatment systems affected by the project activity in year y (tco 2 e) Baseline emissions of the sludge treatment systems affected by the project activity in year y (tco 2 e) Baseline methane emissions from degradable organic carbon in treated wastewater discharged into sea/river/lake in year y (tco 2 e). The value of this term is zero for the case 1 (ii). Baseline methane emissions from anaerobic decay of the final sludge produced in year y (tco 2 e). If the sludge is controlled combusted, disposed in a landfill with biogas recovery, or used for soil application in the baseline scenario, this term shall be neglected. 2. Thermal Energy for the User The baseline emission is as per section 6 of the AMS 1 C/ Version 13, dated 28 th March, 2008, For renewable energy technologies that displace technologies using fossil fuels, the simplified baseline is the fuel consumption of the technologies that would have been used in the absence of the project activity times an emission coefficient for the fossil fuel displaced. IPCC default values for emission coefficients may be used. Baseline fuel consumption = Fuel consumption X Emission Coefficient of fuel displaced from fuel oil displacement (TJ) tco 2 /TJ (tco 2 e) The fuel consumption will be in energy units (TJ) and can be calculated when the energy content in the produced steam with a certain rate of boiler efficiency is known. The formula to calculate fuel consumption is given below. Fuel Consumption (TJ) = Steam Production (TJ) X 1/Boiler efficiency Project Activity Emissions According to paragraph 26, project activity emissions from the systems affected by the project activity are: (i) (ii) CO 2 emissions on account of power and fuel used by the project activity facilities (PEpower,y); Methane emissions from wastewater treatment systems affected by the project activity, and not equipped with biogas recovery in the project situation (PEww,treatment,y); 16

17 (iii) (iv) (v) (vi) Methane emissions from sludge treatment systems affected by the project activity, and not equipped with biogas recovery in the project situation (PE s,treatment,y ); Methane emissions on account of inefficiency of the proj ect activity wastewater treatment systems and presence of degradable organic carbon in treated wastewater;( PE wwdlschargey ); Methane emissions from the decay of the final sludge generated by the proj ect activity treatment systems;( PE sfinaly ); Methane fugitive emissions on account of inefficiencies in capture systems (vii) Methane emissions due to incomplete flaring (PE flanngy ); (viii) Methane emissions from biomass stored under anaerobic conditions which does not take place in the baseline situation (PE bwmass _ y ) PE y = PE power,y + PE ww,treatmenr,y + PE s,treatmenr,y + PE ww,discharge,y + PE s,final,y + PE fugitive,y + PE biomass,y + PE flaring,y PE y Project activity emissions in the year y (tco 2 e) PE power,y PE ww,treatmenr,y PE s,treatmenr,y Emissions from electricity or fuel consumption in the year y (tco 2 e). These emissions shall be calculated as per paragraph 19, for the situation of the project scenario, using energy consumption data of all equipment/devices used in the project activity wastewater and sludge treatment systems and systems for biogas recovery and flaring/gainful use Methane emissions from wastewater treatment systems affected by the project activity, and not equipped with biogas recovery, in year y (tco 2 e). These emissions shall be calculated as per formula 2 in paragraph 20, using an uncertainty factor of 1.06 and data applicable to the project situation (MCF ww,treatment,pj,k and COD removed,pj,k,y ) and with the following changed definition of parameters: (MCF ww,treatment,pj,k Methane correction factor for project wastewater treatment system k (MCF values as per table III.H.1.) COD removed,pj,k,y Chemical oxygen demand removed by project wastewater treatment system k in year y (tonnes/m 3 ), measured as the difference between inflow COD and the outflow COD in system k Methane emissions from sludge treatment systems affected by the project activity, and not equipped with biogas recovery, in year y (tco 2 e). These emissions shall be calculated as per formulas 3 and 4 in paragraph 22, using an uncertainty factor of 1.06 and data applicable to the project situation (S l,pj,y, MCF s,treatment,l ) and with the following changed definition of parameters: S l,pj,y, MCF s,treatment,l Amount of dry matter in the sludge treated by the sludge treatment system l in the project scenario in year y (tonne) Methane correction factor for the project sludge treatment system l (MCF values as per table III.H.1) 17

18 PE ww,discharge,y Methane emissions from degradable organic carbon in treated wastewater in year y (tco 2 e). These emissions shall be calculated as per formula 4 in paragraph 25, using an uncertainty factor of 1.06 and data applicable to the project situation (COD ww,discharge,pj,y, MCF ww,pj,discharge ) and with the following changed definition of parameters: COD ww,discharge,pj,y, Chemical oxygen demand of the treated wastewater discharged into sea, river or lake in the project situation in year y (tonnes/m 3 ) MCF ww,pj,discharge Methane correction factor based on discharge pathway in the project situation (e.g. into sea, river or lake) of the wastewater (fraction) (MCF values as per table III.H.1) PE s,final,y Methane emissions from anaerobic decay of the final sludge produced in year y (tco 2 e). These emissions shall be calculated as per formula 7 in paragraph 25, using an uncertainty factor of 1.06 and data applicable to the project situation (MCF s,pj,final, S final,pj,y ). If the sludge is controlled combusted, disposed in a landfill with biogas recovery, or used for soil application in aerobic conditions in the project activity, this term shall be neglected, and the sludge treatment and/or use and/or final disposal shall be monitored during the crediting period and with the following changed definition of parameters: MCF s,pj,final S final,pj,y Methane correction factor of the disposal site that receives the final sludge in the project situation, estimated as per the procedures described in AMS-III.G Amount of dry matter in final sludge generated by the project wastewater treatment systems in the year y (tonnes) PE fugitive,y PE flaring,y PE bwmass, y Methane emissions from biogas release in capture systems in year y, calculated as per paragraph 26 (tco 2 e) Methane emissions due to incomplete flaring in year y as per the Tool to determine project emissions from flaring gases containing methane (tco 2 e) Methane emissions from biomass stored under anaerobic conditions. In case storage of biomass under anaerobic conditions takes place due to the project activity that doesn t occur in the baseline situation, methane emissions due to anaerobic decay of this biomass shall be considered and be determined as per the procedure in the Tool to determine methane emissions avoided from dumping waste at a solid waste disposal site (tco 2 e) According to the paragraph 27, project activity emissions from methane release in capture systems are determined as follows: PE fugitive,y = PE fugitive,ww,y + PE fugitive, s, y (9) Where: PE fugltlve, ww, y PE fugltlve, s, y Fugitive emissions through capture inefficiencies in the anaerobic wastewater treatment systems in the year y (tco 2 e) Fugitive emissions through capture inefficiencies in the anaerobic sludge treatment systems in the year y (tco 2 e) 18

19 CDM Executive Board PE fugitive,y = (1 - CFE ww ) *MEP mtreatment,y * GWP CH4 (10) Where: CFE WW MEP WW, treatmenty Capture efficiency of the biogas recovery equipment in the wastewater treatment systems (a default value of 0.9 shall be used) Methane emission potential of wastewater treatment systems equipped with biogas recovery system in year y (tonnes) MEP ww,treatment,,y = Q ww,y * B o,ww * UF PJ * MCF ww,treatment,pj,y *COD removed,pj,k,y (11) Where: COD removed, PJXy The chemical oxygen demand removed 11 by the treatment system k of the project activity equipped with biogas recovery in the yearj (tonnes/m 3 ) MCF ww,treatment,pj,y Methane correction factor for the project wastewater treatment system k equipped with biogas recovery equipment (MCF values as per table III.H.1) UFpj Model correction factor to account for model uncertainties (1.06) PE fugitive, s,y = (1 - CFEs) * MEP S, treatment,y * GWP CH4 (12) Where: CFEs Capture efficiency of the biogas recovery equipment in the sludge treatment systems (a default value of 0.9 shall be used) MEP S, treatment,y Methane emission potential of the sludge treatment systems equipped with biogas recovery system in year y (tonnes) MEP S, treatment,y = (Si,pj,y * MCFsjreat men t,pji) * DOC s * UF PJ * DOC F * F * 16/12 (13) S l,pj,,y MCF s,treatment,l Amount of sludge treated in the project sludge treatment system / equipped with biogas recovery system (on dry basis) in yearj (tonnes) Methane correction factor for the sludge treatment system equipped with biogas recovery equipment (MCF values as per table III.H. 1) UF PJ Model correction factor to account for model uncertainties (1.06) Leakage As per approved methodology AMS III.H/ version 10, paragraph 28, the leakage is to be considered if the used technology is equipment transferred from another project activity or if the existing equipment is transferred to another activity. Since this is not case in the project activity, no leakage is considered for the project activity. 19

20 Emissions reductions According to the paragraph 29, for all scenarios in paragraph 1 i.e.1 i) till 1.vi) emission reductions shall be estimated ex ante in the PDD using the formulas provided in the baseline, project and leakage emissions sections above. Emission reductions shall be estimated ex ante as follows: ER y,exante = BE y,ex ante - (PE y,ex ante + LE y,ex ante ) (14) Where: ER y,exante Ex ante emission reduction in year y (tco 2 e) LE y,ex ante Ex ante leakage emissions in year y (tco 2 e) PE y,ex ante Ex ante project emissions in year y calculated as paragraph 26 (tco 2 e) BE y,ex ante Ex ante baseline emissions in yea yj calculated as per paragraph 16 (tco 2 e) B.6.2. Data and parameters that are available at validation: (Copy this table for each data and parameter) Data / Parameter: Q y, ww, Data unit: m 3 / year Amount of wastewater entering the wastewater treatment plant (anaerobic lagoons in the baseline scenario and into the digesters in the project scenario) Source of data used: Operating records at the distillery Value applied: 135,000 m 3 /year. Justification of the This data is required to calculate the organic load to the wastewater treatment choice of data or plant. (anaerobic lagoons in the baseline scenario and into the digesters in the description of project scenario) measurement methods This is based on the average value of wastewater treated per day multiplied by and procedures actually the number of operating days. applied : Any comment: During monitoring this value shall be measured on a continuous basis and would be used for estimation of project activity emissions. Data / Parameter: COD yremoved.j Data unit: tonnes/m 3 The chemical oxygen demand removed by the baseline treatment system. Source of data used: Records of past year Value applied: Justification of the choice of data or This is a key data for estimation of ex-ante baseline emissions COD removed is the difference between the inflow COD and outflow COD description of measurement methods Data is measured by internationally accepted standards. and procedures actually applied : Any comment: Average value of past one year is taken 20

21 Data / Parameter: COD ww, discharge,bl,y Data unit: tonnes/m 3 Chemical Oxygen Demand of the treated wastewater discharged in the baseline situation Source of data used: Records of past year Value applied: Justification of the This is a key data for estimation of ex-ante baseline emissions. choice of data or Data is measured by internationally accepted standards. description of measurement methods and procedures actually applied : Any comment: Average value of past one year is taken Data / Parameter: COD ww, discharge,pj,y Data unit: tonnes/m 3 Chemical Oxygen Demand of the treated wastewater discharged in the project situation Source of data used: Value recorded in the SMAT Digester project proposal Value applied: Justification of the This is a key data for estimation of ex-ante project emissions. choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: B o,ww Data unit: kg CH 4 /kg CO 2 Methane producing capacity of the wastewater Source of data used: IPCC default value and AMS III H/version 10 Value applied: 0.21 Justification of the Data is required to estimate ex-ante baseline emissions and project activity choice of data or emissions during monitoring. description of measurement methods and procedures actually applied : Any comment: IPCC lower value for domestic waste water of 0.21 kg CH 4 /kg CO 2. 21

22 Data / Parameter: MCF ww, treatment Data unit: Fraction Methane correction factor Source of data used: Default values from IPCC 2006 guidelines and AMS III H/version 10 Value applied: 0.8 Justification of the Required to estimate ex-ante baseline emissions. choice of data or description of measurement methods and procedures actually applied : Any comment: Value of Table III.H.1. in AMS III.H./version 10 for anaerobic deep lagoon (depth more than 2 metres) Data / Parameter: MCF ww, discharge Data unit: Fraction Methane correction factor Source of data used: Default values from IPCC 2006 guidelines and AMS III H/version 10 Value applied: 0.1 Justification of the Required to estimate ex-ante baseline emissions. choice of data or description of measurement methods and procedures actually applied : Any comment: For anaerobic deep lagoon (depth more than 2 metres) Data / Parameter: GWP_CH 4 Data unit: tonnes CO 2 e /tonnes CH 4 Global Warming Potential of methane Source of data used: IPCC default value Value applied: 21 Justification of the Data is required to estimate all emission calculations choice of data or description of measurement methods and procedures actually applied : Any comment: If there is any revision in IPCC default value of GWP_CH 4, same would be adopted. 22

23 Data / Parameter: Anaerobic Lagoon Depth Data unit: M Depth of existing lagoons Source of data used: Actual measurement at site Value applied: More than 2 metres Justification of the Data is applied to estimate ex-ante baseline and project emissions choice of data or description of measurement methods and procedures actually applied : Any comment: - Data / Parameter: Steam Production of the boiler Data unit: Tonnes/Hour Steam Production of the boiler Source of data used: Operating records at the distillery Value applied: 6 Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: To calculate steam production in TJ/year and energy content in the produced steam During monitoring this value shall be measured on a continuous basis and would be used for estimation of steam production. Data / Parameter: Steam Heat Value Data unit: GJ/tonne Heat value for steam produced Source of data used: IPCC Value applied: 2.36 Justification of the This value is used to convert steam production in tonnes/hr to steam production choice of data or in TJ/year description of measurement methods and procedures actually applied : Any comment: If there is any revision in IPCC value, same would be adopted 23

24 Data / Parameter: Working Hours Data unit: Hours/year Number of hours, the boiler is working in a year Source of data used: Maintenance records of the boiler/distillery Value applied: 7200 Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: This value is used to convert steam production in tonnes/hr to steam production in TJ/year During monitoring this value shall be measured on a continuous basis and would be used for estimation of steam production Data / Parameter: Boiler Efficiency Data unit: % Working efficiency of the boiler Source of data used: Maintenance records of the boiler/distillery Value applied: 80 Justification of the To calculate fuel consumption of the boiler in energy units (TJ) choice of data or description of measurement methods and procedures actually applied : Any comment: During monitoring this value shall be measured on a continuous basis and would be used for estimation of fuel consumption Data / Parameter: Emission Coefficient of fuel displaced Data unit: tco 2 /TJ Emission Coefficient of fuel displaced Source of data used: IPCC Value applied: Justification of the To calculate baseline emission choice of data or description of measurement methods and procedures actually applied : Any comment: If there is any revision in IPCC value, same would be adopted 24

25 B.6.3 Ex-ante calculation of emission reductions: Emission Reductions Emission reductions shall be estimated ex ante as follows: ER y,exante = BE y,ex ante - (PE y,ex ante + LE y,ex ante ) (14) Where: ER y,exante Ex ante emission reduction in year y (tco 2 e) LE y,ex ante Ex ante leakage emissions in year y (tco 2 e) PE y,ex ante Ex ante project emissions in year y (tco 2 e) BE y,ex ante Ex ante baseline emissions in year y (tco 2 e) Ex ante baseline emissions in year y (tco 2 e) (BE y,ex ante ) (a) Biogas emission in baseline scenario According to the version 10 dated 10 th October, 2008 (most recent version), paragraph 16, BEy = {BE power, y + BEww,treatment, y + BEs,treatment, y + BEww,discharge, y + BEs, final, y} (1) Where: BE y Baseline emissions in year y (tco 2 e) BEpower,y Baseline emissions from electricity or fuel consumption in year y (tco 2 e) BEww,treatment,y BEs,treatment,y BEww,discharge,y BEs,final,y Baseline emissions of the wastewater treatment systems affected by the project activity in year y (tco 2 e) Baseline emissions of the sludge treatment systems affected by the project activity in year y (tco 2 e) Baseline methane emissions from degradable organic carbon in treated wastewater discharged into sea/river/lake in year y (tco 2 e). The value of this term is zero for the case 1 (ii). Baseline methane emissions from anaerobic decay of the final sludge produced in year y (tco 2 e). If the sludge is controlled combusted, disposed in a landfill with biogas recovery, or used for soil application in the baseline scenario, this term shall be neglected. BEpower,y -Baseline emissions from electricity or fuel consumption in year y (tco 2 e) Since there is no electricity consumption from grid electricity or fuel consumption this value is zero. 25

26 BEww,treatment,y - Baseline emissions of the wastewater treatment systems affected by the project activity in year y (tco 2 e) BE ww,treatment,y = Σ i Q ww,j,y * COD removed,j,y * MCF ww,treatment,,bl,j * B o,ww * UF BL * GWP CH4 (2) i Where: Q ww,j,y Volume of wastewater treated in baseline wastewater treatment system i in year y (m 3 ) 135,000m 3 Q y, ww = Volume /day x Number of days of operation (m 3 /year) (m 3 /day) (days/year) Volume /day : A value of 450 m 3 /day would be adopted for estimation of ex-ante emission calculations. Number of days of operation: 300 days per year. Adopting the values, Q y, ww = 450 (m 3 /day) x 300 (days/year) = 135,000 (m 3 /year) COD removed,j,y MCF ww,treatment,,bl,j i B o,ww Chemical oxygen demand removed by baseline treatment system i in year y (tonnes/m 3 ), measured as the difference between inflow COD and the outflow COD in system i tonnes/m 3 Methane correction factor for baseline wastewater treatment systems i (MCF values as per table III.H.1.) 0.8 Index for baseline wastewater treatment system Methane producing capacity of the wastewater (IPCC lower value for domestic wastewater of 0.21 kg CH 4 /kg COD) 6 UF BL Model correction factor to account for model uncertainties (0.94) 7 GWP CH4 Global Warming Potential for methane (value of 21) Adopting the above values BE ww,treatment,y = 135,000 x x 0.8 x 0.21 x 0.94 x 21 = 30, = 30,444 tco 2 e/year BEs,treatment,y - Baseline emissions of the sludge treatment systems affected by the project activity in year y (tco 2 e) Since there is no sludge treatment system this value is zero. 26

27 BEww,discharge,y - Baseline methane emissions from degradable organic carbon in treated wastewater discharged into sea/river/lake in year y (tco 2 e). The value of this term is zero for the case 1 (ii). BE ww,discharge,y = Q ww,y * MCF ww,bl.discharge *COD ww,discharge,y * B o,ww * UF BL * GWP CH4 (6) Where: Q ww,y Volume of treated wastewater discharged in year y (m 3 ) 135,000m 3 UF BL Model correction factor to account for model uncertainties (0.94) COD ww,discharge,bl,y Chemical oxygen demand of the treated wastewater discharged into sea, river or lake in the baseline situation in the year y (tonnes/m 3 ). If the baseline scenario is the discharge of untreated wastewater, the COD of untreated wastewater shall be used 0.012tonnes/m 3 MCF^udischarge Methane correction factor based on discharge pathway in the baseline situation (e.g. into sea, river or lake) of the wastewater (fraction) (MCF values as per table III.H.1) 0.1 Adopting the above values BE ww,discharge,y = 135,000 x 0.1 x x 0.21 x 0.94 x 21 = = tco 2 e/year BEs,final,y - Baseline methane emissions from anaerobic decay of the final sludge produced in year y (tco 2 e). As the sludge is used for soil application in the baseline scenario, this term shall be neglected. Adopting the above values BEy = {BE power, y + BEww,treatment, y + BEs,treatment, y + BEww,discharge, y + BEs, final, y} = , = 31,115 tco 2 e/year 27

28 (b) Baseline Emissions - Thermal Energy for the User The baseline emission is as per section 6 of the AMS 1 C/ Version 13dated 28 th March, 2008, For renewable energy technologies that displace technologies using fossil fuels, the simplified baseline is the fuel consumption of the technologies that would have been used in the absence of the project activity times an emission coefficient for the fossil fuel displaced. IPCC default values for emission coefficients may be used. Baseline fuel consumption = Fuel consumption X Emission Coefficient of fuel displaced from fuel oil displacement (TJ) tco 2 /TJ (tco 2 e) The fuel consumption will be in energy units (TJ) and can be calculated when the energy content in the produced steam with a certain rate of boiler efficiency is known. The formula to calculate fuel consumption is given below. Fuel Consumption (TJ) = Steam Production (TJ) X 1/Boiler efficiency Steam Production = Steam Production X Working hours X Steam Heat Value (TJ) (Tonnes/hr) (Hours) (GJ/tonne) = 6 x 7200 x = TJ = 102 TJ Adopting other values as given in Section B.6.1 Baseline fuel consumption = Steam Production X 1/Boiler efficiency X Emission Coefficient of from fuel oil displacement fuel displaced (tco 2 e) (TJ) (tco 2 /TJ) = 102 TJ X 1/0.8 X tco 2 /TJ = tco 2 e = 9444 tco 2 e Total Baseline Emission (BEy) = 31, (tco 2 e/year) = 40,559 tco 2 e/year 28

29 Ex ante project emissions in year y (tco 2 e) (PE y,ex ante ) According to the version 10 dated 10 th October, 2008 (most recent version), paragraph 26, PE y = PE power,y + PE ww,treatmenr,y + PE s,treatmenr,y + PE ww,discharge,y + PE s,final,y + PE fugitive,y + PE biomass,y + PE flaring,y PE y Project activity emissions in the year y (tco 2 e) (PEpower,y) (PEww,treatment,y) Emissions on account of power and fuel used by the project activity facilities Methane emissions from wastewater treatment systems affected by the project activity, and not equipped with biogas recovery in the project situation; (PE s,treatment,y ); Methane emissions from sludge treatment systems affected by the project activity, and not equipped with biogas recovery in the project situation ( PE wwdlschargey ) Methane emissions on account of inefficiency of the proj ect activity wastewater treatment systems and presence of degradable organic carbon in treated wastewater ( PE sfinaly ) Methane emissions from the decay of the final sludge generated by the proj ect activity treatment systems; (PE fugitive,y ) (PE flanngy ) (PE bwmass _ y ) Methane fugitive emissions on account of inefficiencies in capture systems Methane emissions due to incomplete flaring Methane emissions from biomass stored under anaerobic conditions which does not take place in the baseline situation PE power,y - Emissions from electricity or fuel consumption in the year y (tco 2 e) Since there is no electricity consumption from grid electricity or fuel consumption this value is zero. PE ww,treatmenr,y - Methane emissions from wastewater treatment systems affected by the project activity, and not equipped with biogas recovery, in year y (tco 2 e). Since the project activity is equipped with a biogas recovery plant this value is zero. PE s,treatmenr,y - Methane emissions from sludge treatment systems Since the project activity is not a sludge treatment system this value is zero. PE ww,discharge,y (tco 2 e). Methane emissions from degradable organic carbon in treated wastewater in year y PE ww,discharge,y = Q ww,y * MCF ww,pj.discharge *COD ww,discharge,pj * B o,ww * UF BL * GWP CH4 29

30 Where: Q ww,y Volume of treated wastewater discharged in year y (m 3 ) 135,000m 3 UF BL Model correction factor to account for model uncertainties (1.06) COD ww,discharge,pj,y Chemical oxygen demand of the treated wastewater discharged in the project situation in the year y (tonnes/m 3 ) tonnes/m 3 MCF ww,pj.discharge Methane correction factor based on discharge pathway in the baseline situation (e.g. into sea, river or lake) of the wastewater (fraction) (MCF values as per table III.H.1) 0.1 Adopting the above values PE ww,discharge,y = 135,000 x 0.1 x x 0.21 x 1.06 x 21 = = 1767 tco 2 e/year PE s,final,y - Methane emissions from anaerobic decay of the final sludge produced in year y (tco 2 e). These are the emissions that arise from the anaerobic degradation of the final sludge produced by the treatment systems. In the project activity, the sludge produced by the treatment systems is very less. This sludge is basically the excess sludge in the SMAT reactors which are removed periodically. In the project activity, this sludge would be removed for aerobic composting. Since the sludge is processed through aerobic methods, the sludge would not degrade anaerobically and hence there would be no emissions. PE fugitive,y - Methane emissions from biogas release in capture systems in year y Since the project activity is not a biogas capture system this value is zero. PE flaring,y - Methane emissions due to incomplete flaring in year y Since the project activity is not a biogas capture system this value is zero. PE bwmass, y - Methane emissions from biomass stored under anaerobic conditions. In the project activity no biomass is stored under anaerobic conditions, this value is zero. Hence, the total project activity emissions, PE Y PE y = PE power,y + PE ww,treatmenr,y + PE s,treatmenr,y + PE ww,discharge,y + PE s,final,y + PE fugitive,y + PE biomass,y + PE flaring,y = = 1767 t CO 2 e /year 30

31 Ex ante leakage emissions in year y (tco 2 e) (LE y,ex ante ) The leakage is to be considered if the used technology is equipment transferred from another project activity or if the existing equipment is transferred to another activity. Since this is not case in the project activity, no leakage is considered for the project activity. Adopting the above values ER y,exante = BE y,ex ante - (PE y,ex ante + LE y,ex ante ) = 40,559 ( ) = 38,792 tco 2 e/year B.6.4 Summary of the ex-ante estimation of emission reductions: Year Estimation of project activity emissions (tco 2 e) Estimation of baseline emissions (tco 2 e) Estimation of leakage (tco 2 e) Estimation of overall emission reductions (tco 2 e) 1 ( ) , ,792 2 ( ) , ,792 3 ( ) , ,792 4 ( ) , ,792 5 ( ) , ,792 6 ( ) , ,792 7 ( ) , ,792 8 ( ) , ,792 9 ( ) , , ( ) , ,792 Total (tonnes CO 2 e) 17, , ,920 31

32 B.7 Application of a monitoring methodology and description of the monitoring plan: B.7.1 Data and parameters monitored: (Copy this table for each data and parameter) Data / Parameter: Q y, ww, Data unit: m 3 Volume of wastewater entering the wastewater treatment plant (anaerobic lagoons in the baseline scenario and into the digesters in the project scenario) Source of data to be Actual measurements used: Value of data Value of data would be used to calculate ex post baseline and project emissions Description of Flow meter would be used to measure the volume of wastewater entering the measurement methods treatment plants and readings would be recoded and archived electronically for and procedures to be the entire crediting period and two years thereafter. applied: QA/QC procedures to Flow meters would be calibrated as per manufacturer s prescribed standards. be applied: Any comment: Data / Parameter: COD y, ww, untreated Data unit: ton/m 3 Chemical Oxygen Demand of the untreated wastewater Source of data to be Actual measurements in the in-house lab. used: Value of data Value of data would be used to calculate ex post baseline and project emissions Description of COD would be analysed in the in-house lab by internationally accepted measurement methods standards and archived electronically for the entire crediting period and two and procedures to be years thereafter. Average monthly values would be adopted for estimation of applied: emissions. QA/QC procedures to COD of the untreated wastewater would be analysed in external be applied: accredited laboratories once in 3 months. Any comment: Data / Parameter: COD y, ww, discharge, BL Data unit: ton/m 3 Chemical Oxygen Demand of the wastewater treated in the baseline scenario Source of data to be Actual measurements in the in-house lab. used: Value of data Value of data would be used to calculate project emissions Description of COD would be analysed in the in-house lab by internationally accepted measurement methods standards and archived electronically for the entire crediting period and two and procedures to be years thereafter. Average monthly values would be adopted for estimation applied: of emissions. QA/QC procedures to COD of the untreated wastewater would be analysed in external be applied: accredited laboratories once in 3 months. Any comment: 32

33 Data / Parameter: COD y, ww, discharge.pj Data unit: ton/m 3 Chemical Oxygen Demand of the wastewater leaving the digesters/ entering lagoons Source of data to be Actual measurements in the in-house lab. used: Value of data Value of data would be used to calculate project emissions Description of COD would be analysed in the in-house lab by internationally accepted measurement methods standards and archived electronically for the entire crediting period and two and procedures to be years thereafter. Average monthly values would be adopted for estimation applied: of emissions. QA/QC procedures to COD of the untreated wastewater would be analysed in external be applied: accredited laboratories once in 3 months. Any comment: Data / Parameter: GWP_CH 4 Data unit: ton CO 2 e / ton CH 4 Global Warming Potential of methane Source of data to be IPCC default value used: Value of data 21 Description of Data is required to estimate all emission calculations measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: If there is any revision in IPCC default value of GWP_CH 4, same would be adopted. Data / Parameter: MCF ww, final / MCFww, treatment Data unit: Fraction Methane correction factor Source of data to be Default values from Chapter 6 of Volume 5, Waste, IPCC guidelines and used: Table III.H.1 of AMS III H/version 10 Value of data 0.1, 0.8 Description of Required to estimate post-ante project activity emissions. measurement methods and procedures to be applied: QA/QC procedures to - be applied: Any comment: Value of Table III.H.1. in AMS III.H./version 10 for anaerobic deep lagoon (depth more than 2 metres) 33

34 Data / Parameter: Q v, biogas Data unit: m 3 Volume of biogas generated Source of data to be Actual measurements used: Value of data - Description of The data would be measured by continuous flow meters and recorded. The measurement methods data would be electronically archived for the entire crediting period and two and procedures to be years therafter. applied: QA/QC procedures to Flow meters would be calibrated as per manufacturer s recommendations. be applied: Any comment: Data / Parameter: P CH4 Data unit: kg /cm 2 Pressure of the biogas Source of data to be Actual measurements used: Value of data Data would be used to estimate density of the biogas to calculate the baseline emissions Description of The pressure of the biogas would be measured and recorded. Average value measurement methods would be used for estimation of density of methane and baseline emissions. and procedures to be The data would be electronically archived for the entire crediting period and applied: two years thereafter. QA/QC procedures to The instrument would be maintained as per as per be applied: manufacturer s recommendations. Any comment: - Data / Parameter: Data unit: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: T CH4 0 C Temperature of the biogas Actual measurement Data would be used to estimate density of the biogas to calculate the baseline emissions The temperature of the biogas would be measured and recorded. Average value would be used for estimation of density of methane and baseline emissions. The data would be electronically archived for the entire crediting period and two years thereafter. The instrument would be maintained as per as per manufacturer s recommendations. 34

35 Data / Parameter: D CH4 Data unit: Tons/ m 3 Density of methane Source of data to be Calculated based on temperature and pressure of biogas. used: Value of data Data would be used to estimate to calculate the baseline emissions. Description of measurement methods The data would be electronically archived for the entire crediting period and two years thereafter. and procedures to be applied: QA/QC procedures to - be applied: Any comment: - Data / Parameter: Data unit: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: H flare Hours Number of hours of operation of flare Measured and Recorded Data would be used to estimate project emissions due to emissions of flare inefficiency. The number of hours of operation of flare would be recorded and electronically archived for the entire crediting period and two years thereafter. - Data / Parameter: S y, generated Data unit: tonnes Quantity of final sludge from SMAT reactors Source of data to be Actual measurement used: Value of data Monitored to neglect the emissions due to decay of this sludge Description of Weight of final sludge would be determined. measurement methods and procedures to be applied: QA/QC procedures to - be applied: Any comment: - 35

36 Data / Parameter: S y, composted Data unit: tonnes Quantity of final sludge from SMAT reactors sent to compost yard Source of data to be Actual measurement used: Value of data Monitored to neglect the emissions due to decay of this sludge Description of Weight of sludge would be determined before dumped to compost yard. measurement methods and procedures to be applied: QA/QC procedures to - be applied: Any comment: - Data / Parameter: Steam Production of the boiler Data unit: Tonnes/Hour Steam Production of the boiler Source of data to be Actual measurement used: Value of data Data would be used to estimate to calculate the baseline emissions. Description of measurement methods and procedures to be Will be measured on a continuous basis using meters and would be used for estimation of steam production. The data would be electronically archived for the entire crediting period and two years thereafter. applied: QA/QC procedures to Meters would be calibrated as per manufacturer s recommendations. be applied: Any comment: - Data / Parameter: Working Hours Data unit: Hours/year Number of hours, the boiler is working in a year Source of data to be Maintenance records of the boiler/distillery used: Value of data To be monitored during the project activity Description of measurement methods and procedures to be This value is used to convert steam production in tonnes/hr to steam production in TJ/year. The data would be electronically archived for the entire crediting period and two years thereafter. applied: QA/QC procedures to - be applied: Any comment: - 36

37 Data / Parameter: Boiler Efficiency Data unit: % Working efficiency of the boiler Source of data to be Maintenance records of the boiler/distillery used: Value of data To be monitored Description of To calculate fuel consumption of the boiler in energy units (TJ). The data measurement methods would be electronically archived for the entire crediting period and two years and procedures to be thereafter. applied: QA/QC procedures to Boilers would be maintained as per manufacturer s recommendations. be applied: Any comment: B.7.2 Description of the monitoring plan: The project activity is located in the premises of sugar mill and distillery complex. Director, Greenergy Power Pvt. Ltd. is the overall head of operations of the treated system. The Senior General Manager is in charge of operations of the wastewater treatment plant including methane recovery system and other facilities in the wastewater treatment plant. The organization structure illustrated shall be in charge of the operation and maintenance of the wastewater treatment plant. Training of personnel Lars Enviro Pvt. Ltd., the technology provider for the methane recovery system, has trained the personnel of SSIL and Greenergy Power Pvt. Ltd. in operation, trouble shooting and maintenance of the methane recovery system. Lars Enviro Pvt. Ltd. s personnel will be at site for 6 months from the date of commissioning the plant. During this period SSIL and Greenergy Power Pvt. Ltd. s personnel will be trained in operation, maintenance, trouble shooting, analysis of operating parameters, measuring COD, analysis of biogas and other safety measures of the anaerobic digestion plant. The plant operators run the plant on a day today basis and will be assisted by two technicians for maintenance of mechanical and electrical installations in the plant. A chemist with graduate/postgraduate qualification in chemistry would be available in each shift for analysis of all operating parameters like COD, biogas, etc, The technicians will be responsible for maintenance of equipment and installations in the anaerobic digestion plant. Any break down shall be recorded with details like type of break down, trouble shooting done, etc., and verified by the Manager (Treatment plant/distillery). Data monitoring Records shall be maintained for quantity of waste water entering the digesters/day, its COD, gas flowing to heating equipment, gas to flare etc., All these records shall be verified by Manager (Treatment plant/distillery) and after verification and approval shall be maintained in electronic form as per monitoring methodology. The records shall be maintained in office cum laboratory of the anaerobic digestion plant. A back up shall be created in electronic form for all the records and maintained for two years after last issuance of CERs. 37

38 The monitoring parameters like COD of wastewater entering digesters, COD of wastewater leaving the digesters, flow of wastewater entering digesters, methane content of biogas etc., shall be measured and recorded by the chemists. These parameters shall be checked by Manager (Treatment plant/distillery). After approval by the Manager (Distillery), these values shall be maintained in electronic form till two years after the last issuance of CERs. QA/QC procedures All instruments like wastewater flow meter, gas flow meter, temperature and pressure measuring instruments, Gas analyser shall be calibrated as per manufacturers recommendations. The flow meters shall be calibrated as per international/ manufacturers recommendations. Internal Audits All reported results and measurements shall be periodically reviewed by Director Greenergy Power Pvt. Ltd. and any discrepancy shall be corrected with authorization from Director, Greenergy Power Pvt. Ltd. Emergency The project activity does not have any operation that would not result emergency emissions. Hence, there is no data monitored for emergency preparedness. Lars Enviro Pvt. Ltd. shall train the Greenergy Power Pvt. Ltd. And SSIL staff in all emergency requirements. The staff shall be trained in operation and maintenance of fire fighting equipments like fire extinguishers. The emergencies can be leakage of biogas from gas holders, other gas handling equipment like gas cleaning system, gas blowers. Although all the equipment, piping and instrumentation are as per explosion proof and gas tight, emergencies can happen. The staff shall be trained to feel such leakages and immediately rectify the leakage areas. Director Manager (Treatment plant) 2 Chemists (one in each shift) 2 Technicians (one for mechanical one for electrical) 6 Plant Operators (two in each shift) 38

39 B.8 Date of completion of the application of the baseline and monitoring methodology and the name of the responsible person(s)/entity(ies) Date of completion of the baseline and the monitoring methodology: 18/07/2008. Name of person/entity determining the baseline: The baseline and monitoring methodology was developed by Dr Mrs. Lalani Samarappuli (BSc, MSc, PhD) Asia Carbon Consultant (Pvt) Ltd No. 04, E.D. Dabare Mawatha, Narahenpita, Colombo-05 Sri Lanka Tel : lalanis57@gmail.com,lalani@daya-group.com SECTION C. Duration of the project activity / crediting period C.1 Duration of the project activity: C.1.1. Starting date of the project activity: Date of signing the contract 03/08/2008 C.1.2. Expected operational lifetime of the project activity: 25 years, 0 months C.2 Choice of the crediting period and related information: The project will use Fixed Crediting period. C.2.1. Renewable crediting period Not Applicable C Not Applicable C Not Applicable C.2.2. Fixed crediting period: Yes Starting date of the first crediting period: Length of the first crediting period: 39

40 C Starting date: 01/07/2009 or date of registration whichever occurs later. C Length: 10 years, 0 months SECTION D. Environmental impacts D.1. If required by the host Party, documentation on the analysis of the environmental impacts of the project activity: Article 12 of the Kyoto Protocol requires that a CDM project activity contribute to the sustainable development of the host country. Therefore, analyzing the impacts of the project activity on the environment and on the local community is important for the project. The wastewater arising out of the operations, known as spentwash, contains high organic concentrations which are generally measured in terms of chemical oxygen demand (COD) and biological oxygen demand (BOD). In order to bring down the organic concentration of the wastewater as per environmental regulations, SSIL had constructed open anaerobic lagoons for reduction of COD and BOD. After treatment in lagoons, wastewater was mixed with pressmud from sugar mills and aerobically composted to produce organic compost. Subsequently realizing the damage to the environment due to anaerobic lagoons, although, there was no statutory requirement, Greenergy Power Pvt. Ltd. had decided to set up an anaerobic digestion plant to treat the wastewater anaerobically and capture biogas and utilize the biogas as fuel. The project activity is located within the premises of the distillery of SSIL. The main objective of the project activity is to treat the distillery wastewater in anaerobic digesters, produce biogas and consume the biogas as fuel. This activity thus avoids release of methane, a potential greenhouse gas (GHG) with a global warming potential of 21 to atmosphere. Thus the project activity assists in reduction of greenhouse gases. Greenergy Power Pvt. Ltd. had implemented the project with no drive from environmental regulations. No separate environmental impact assessment studies were done as not required by local environmental regulations. However, an analysis of environmental impacts associated with the project activity is discussed below during construction and during operation phase. During construction phase During construction phase the project because of its size did not have any negative impact on the local environment or local community. Although there were few impacts on environment due to movement of men and materials for construction, these impacts were negligible and do not have any significant impact on the environment. However, the project activity had several positive impacts on the local community during construction,which are briefly mentioned below: 40

41 Several skilled and unskilled workers got employment opportunities during construction of the project activity. Procurement of construction materials, erection materials improved local economy. The special leak and explosion proof construction gave exposure to Greenergy Power Pvt. Ltd. employees in such types of construction. During operation phase Impact on Air The impact on air is due to the emissions of burning biogas in boiler. All the methane in the biogas is expected to burn as boiler is a big capacity boiler for distillery. Biogas, is largely a clean fuel, and when burnt does not give much hazardous emissions. The other major constituent of the biogas apart from methane is carbon dioxide, which is of biogenic in nature. However the exhaust gases from the boilers are vented off into atmosphere through a high stack to reduce the ground level concentration of exhausts. There are no other negative impacts on air due to the project activity. However there are few positive impacts on air due to the project activity. The most important positive impact obviously is the reduction of release of greenhouse gas to the atmosphere. Earlier the wastewater was treated in open anaerobic lagoons and now due to the project, is treated in closed digesters leading to the capture of methane and utilizing it as fuel, has positive impacts on air quality of the environment. Impact on water The effluent leaving the anaerobic digesters after digestion is collected in a tank from where it is transported to compost yard and mixed with pressmud, a waste from sugar mill and aerobically composted to produce organic compost. Since no wastewater is discharged on land or any water course, there is no impact on water due to the project activity. Impact on odour In the open lagoon treatment system, bad odours were produced due to anaerobic degradation of high COD strength wastewater in open lagoons. The production of these bad odours is completely reduced as majority of treatment takes place in closed reactors and the odour producing gases are captured and consumed. Hence, the project has immense positive impact on the environment and local community in reduction of bad odours. Impact due to noise There are no major noise producing equipment in the digestion plant but for centrifugal pumps and blowers. Moreover, these equipment are inside the industry. Hence, there are no significant impacts on the environment due to noise. Impact on ecology There are no endangered species in the vicinity of the project and SSIL is located in a normal village setting with no fragile or sensitive ecology nearby. The project is located within the industry premises and no significant impact is affected on the ecology. 41

42 Social and economy issues The location of sugar mill, distillery and the project has given immense job opportunities to the local community during construction and operation of the sugar mill, distillery and the project activity. Sevenagala village has sprung into the industrial status and hence, the economy of the local community has improved, thereby improving the standard of living of the local community with access to better transportation, education, medical and other basic amenities. D.2. If environmental impacts are considered significant by the project participants or the host Party, please provide conclusions and all references to support documentation of an environmental impact assessment undertaken in accordance with the procedures as required by the host Party: There are no significant impacts on the environment, ecology and local community due to the project activity. The project has only positive impacts on the environment. The nature of the project does not warrant an environment impact assessment study due to the project activity and no regulatory mechanism requires same. The project is itself an environment friendly project with no drive from regulatory requirements. No environment impact assessment study was required as per statutory requirements and the industry has consent to operate the plants from Central Environmental Authority (CEA) and has been regularly renewing the annual consents. SECTION E. Stakeholders comments E.1. Brief description how comments by local stakeholders have been invited and compiled: Open invitations (notices) were paste at common places in and around the project site explaining the purpose of the meetings and also indicating the dates (16/05/2007) and venues of meetings. Further, invitation letters were also sent to many key officials and stakeholders around Sevenagala to attend discussions. The first meeting was held within the project boundary and around 25 people were participated at this meeting. Apart from the farmers, agricultural officers, those interested in the environment, many key officials participated at this meeting. The second meeting was also held on the same day at a nearby place outside the power project boundary located about 3 km from the project site. Over 32 farmers participated at this meeting. Many officials from the surrounding area also participated at this meeting (Figs 1). The meetings started with welcoming the participants. At these meetings a brief but very clear introduction to the project was given and important aspects of methane emission from the anaerobic lagoons which, is currently an environmental hazard affecting rural community living around Sevenagala, was explained. The significant local environmental benefits by reducing green house emissions such as CH 4, N 2 O and CO 2 by the project activity were also outlined. Later, a fruitful discussion followed and then invited the audience to express their views and concerns on any of the aspects discussed. 42

43 Fig 1. Meeting and discussion with villagers E.2. Summary of the comments received: Following representatives attended the meeting: 1. Mr. Chandran Abeyratna - General Manager, SSIL 2. Mr Nanayakkara - General Manager, SSIL Plantation 3. Mr. Niranjan Mudalige - Director, SSIL 4. Mr. Nihal Sooriyarachchi - Director, RDI Consultants Pvt Ltd 5. Mr. Kingsley Bernard - Director, Greenergy Power Pvt. Ltd. 6. Dr Lalani Samarappuli - CDM Expert, Asia Carbon Pvt Ltd 7. Mr. Aruluthayan - Coordinating Engineer, Greenergy Power Pvt. Ltd. 8. Mr. Kamal de Silva - Production/Distillery Manager, SSIL 9. Mr. Ruwan Abeysingha - Engineer, Greenergy Power Pvt. Ltd. The questions and answers during the meeting are given below : Mr. Kingsley Bernard, Director Greenergy Power Pvt. Ltd., welcomed the gathering and explained about the purpose of the meeting. He briefly mentioned about the background of the company, its operations, installations and proposed expansions. He also informed that as part of CDM project, a local stakeholder meeting has to be conducted, to document the views and comments of local stakeholders of the project activity. Dr Lalani Samarappuli, CDM Expert, explained about the Emission Reductions initiatives taken by UNFCCC and how Greenergy Pvt. Ltd. is taking of this CDM project to make it a successful installation. The queries raised by the local stakeholder and answers by the project proponent are given below; Mr. Piyadasa asked in what way the project activity contributes for emission reductions? Mr. Nihal Sooriyarachchi, Director, RDI Consultants Pvt Ltd explained in details how the spentwash stored in lagoons for a prolonged time results in release of methane in to atmosphere. Presently by using modern technology we are extracting methane in closed condition by using the appropriate technology. 43