Indicative simplified baseline and monitoring methodologies for selected small-scale CDM project activity categories

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1 for selected small-scale CDM project activit categories TY III - OTHER PROJECT ACTIVITIES Project participants shall take into account the general guidance to the methodologies information on additionalit abbreviations and general guidance on leakage provided at III.V. Decrease of coke consumption in blast furnace b installing dust/sludge reccling sstem in steel works Technolog/Measure: 1. This methodolog comprises project activities which decrease coke consumption in a blast furnace of steel works b feeding direct reduced iron (DRI) pellet into the blast furnace. The DRI pellet is produced b dust/sludge-reccling sstem from dust/sludge 1 which is not currentl utilized inside the works but sold outside and/or land filled; 2. The technolog/measure covered b the methodolog is dust/sludge-reccling sstem which produces DRI pellet from dust/sludge. The sstem enables steel works to utilize the dust/sludge which currentl cannot be utilized inside the works. The examples of the sstem are Rotar Hearth urnace (RH) Waelz and Primus; 3. This methodolog is applicable under the condition that Alternative Material 2 that can be used b the Outside User 3 instead of the dust/sludge is abundant in the countr/region demonstrated according to the following procedures: Step 1: A list of possible Alternative Materials is prepared based on the historic and or present usage of materials b the outside user relevant literature and interview with experts. Step 2: The suppl situation for each tpe of possible Alternative Material k is assessed and the abundance of availabilit is demonstrated using one of the approaches below: Approach 1: Demonstrate that there is alternative material in the region of the project activit which is not full utilized. or this purpose demonstrate that the quantit of material is at least 25% larger than the quantit of dust/sludge that is being sold outside; Approach 2: Demonstrate that suppliers of Alternative Material in the region of the project activit are not able to sell all of their Alternative Materials. or this purpose project participants shall demonstrate that a representative sample of suppliers of the Alternative Material in the region had a surplus of Alternative Material (e.g. at the end of the period during which Alternative Material is sold) which the could not sell and which is not utilized. 1 Dust/sludge is material which is generated from steel making processes (e.g. coke oven blast furnace and converter). 2 Alternative Material is defined as the material that can be used b the Outside User instead of dust/sludge after the project implementation. 3 Outside User is defined as the entit which bus the dust/sludge from the steel works in the baseline. 1/10

2 for selected small-scale CDM project activit categories III.V. Decrease of coke consumption in blast furnace b installing dust/sludge reccling sstem in steel works (cont) 4. This methodolog is onl applicable to the project activit implemented in existing steel works. 5. Measures are limited to those that result in emission reductions of less than or equal to 60 ktco 2 equivalent annuall. Project Boundar 6. The project boundar is the phsical geographical site of the steel works where dust/sludge is generated and dust/sludge-reccling sstem is to be installed. Baseline Emissions 7. The baseline scenario for the project activit is the situation where in the absence of the project activit no dust/sludge reccling sstem would be installed in the steel works and the dust/sludge which currentl cannot be utilized inside the works would continue to be sold to outside user and/or land-filled. 8. Project participants shall appl steps 1-3 of the latest version of Combined tool for identification of baseline scenario and demonstrate of additionalit to identif the baseline scenario. The methodolog is onl applicable if the identified baseline scenario is the continuation of current practice. The plausible alternative scenarios shall include but not limited to: AS 1: Continuation of current practice (i.e. dust/sludge which is not currentl utilized inside the works is sold to outside users and/or land filled) AS 2: All the dust/sludge is reccled inside the steel works with dust/sludge reccling sstem (the proposed project activit undertaken without being registered as a CDM project activit) AS 3: The dust/sludge is reccled inside the steel works without dust/sludge reccling sstem 9. The emission source in the baseline scenario is coke consumption in blast furnace. The project activit results in the decrease of coke consumption. The baseline emissions are determined as follows: BE = BE coke (1) BE Baseline emission in ear (tco 2 /ear) BE coke CO 2 emission associated with decreased coke consumption in the blast furnace due to the input of DRI pellet produced b the project activit in ear (tco 2 /ear) 10. If the production output of the blast furnace (i.e. pig iron) generated in ear is larger than the average of historical production output of the three most recent ears (excluding abnormal 2/10

3 for selected small-scale CDM project activit categories III.V. Decrease of coke consumption in blast furnace b installing dust/sludge reccling sstem in steel works (cont) ears) before the implementation of the project activit then the baseline emission shall be discounted as follows: BE = BE coke pig iron HY * (2) pig iron The average quantit of pig iron production of the most recent three ears pig iron HY (excluding abnormal ears) before the implementation of the project activit (t-pig/ear) The quantit of pig iron production in ear (t-pig/ear). pig iron 11. BE coke is determined as follows: BE coke coke * NCVcoke * ECO coke = (3) 2 coke Decreased quantit of coke consumption in the blast furnace due to the input of DRI pellet produced b the project activit in ear (t-coke/ear) NCV Net calorific value of coke (TJ/t-coke). coke E CO coke 2 CO 2 emission factor of coke (tco 2 /TJ). 12. coke is determined as the lower of the following: (a) (b) Value determined b actual measurement (see paragraph 13 for details); Value estimated (see paragraph 14 for details). 13. or the case of actual measurement coke is determined as below: coke HY coke = * pig iron coke PJ (4) pig iron HY HY coke The average quantit of coke consumption of the most recent three ears(excluding abnormal ears) before the implementation of the project activit (t-coke/ear) 3/10

4 for selected small-scale CDM project activit categories III.V. Decrease of coke consumption in blast furnace b installing dust/sludge reccling sstem in steel works (cont) The average quantit of pig iron production of the most recent three ears pig iron HY (excluding abnormal ears) before the implementation of the project activit (t-pig/ear) The quantit of pig iron production in ear (t-pig/ear) pig iron coke PJ The coke consumption in ear after the implementation of the project activit (t-coke/ear) 14. The estimation approach determines coke from the following formula: coke = DRI * Dcoke = DRI e _ DRI * Dc / c _ coke DRI * (5) uantit of DRI pellet fed into the blast furnace in ear (t-dri/ear) D coke Decreased quantit of coke consumption b feeding one ton of DRI pellet into the blast furnace in ear (t-coke/t-dri) e DRI raction of metallic iron in DRI pellet produced b the project activit in ear _ (t-e/t-dri) D c Decreased quantit of carbon fed into the blast furnace b feeding one ton of metallic iron into the blast furnace in ear (t-c/t-e) c coke _ raction of carbon in coke fed into the blast furnace in ear (t-c/t-coke) Where D c is determined as follows: (a) or the ex ante estimation of the emission reductions 0.3 (t-c/t -e) shall be used; (b) or the ex post estimation of the emission reductions D c is calculated from the formula below. If the calculated figure is larger than 0.3 (t-c/t -e) project participants shall adopt 0.3 (t-c/t-e) to be conservative. ( )* /( ) D c before c after c after pig after DRI * after e _ DRI = (6) The quantit of carbon fed into blast furnace to produce one ton of pig iron before c before DRI input into the blast furnace (t-c/t-pig) after c after pig The quantit of carbon fed into blast furnace to produce one ton of pig iron after DRI input into the blast furnace in ear (t-c/t-pig) The amount of pig iron produced in ear (t-pig/ear) 4/10

5 for selected small-scale CDM project activit categories III.V. Decrease of coke consumption in blast furnace b installing dust/sludge reccling sstem in steel works (cont) after DRI The amount of DRI pellet fed into the blast furnace in ear (t-dri/ear) after e _ DRI raction of metallic iron in DRI pellet fed into the blast furnace in ear (t-e/t-dri) Project activit emissions 15. The emission sources in the project activit consist of CO 2 emission from electricit and fuel consumption b dust/sludge reccling sstem. In case the project activit utilizes the dust/sludge that would have been landfilled in the absence of the project activit CO 2 emission from the carbon contained in the dust/sludge should also be included in the project emission calculations. ele + fuel + DS = (7) Project emission in ear (tco 2 /ear) ele CO 2 emission associated with electricit consumption b dust/sludge reccling sstem (tco 2 /ear) fuel CO 2 emission associated with fuel consumption b dust/sludge reccling sstem (tco 2 /ear) DS CO 2 emission associated with the carbon contained in the dust/sludge which would have been landfilled in the absence of the project activit (tco 2 /ear) 16. ele is calculated based on the latest version of the Tool to calculate baseline project and/or leakage emissions from electricit consumption. 17. fuel is calculated from the following methods: (a) (b) If the fuel used b the dust/sludge reccling sstem is fossil fuel the latest version of Tool to calculate project or leakage CO 2 emissions from fossil fuel combustion is used to determine the CO 2 emissions; If the fuel used b the dust/sludge reccling sstem is off gas generated from the steel making process such as coke oven gas (COG) and blast furnace gas (BG) the CO 2 emission is determined as follows: (i) In case the dust/sludge reccling sstem uses the off gas which would not be used for an purpose but be flared in the absence of the project activit is zero; fuel 5/10

6 for selected small-scale CDM project activit categories III.V. Decrease of coke consumption in blast furnace b installing dust/sludge reccling sstem in steel works (cont) (ii) In case the dust/sludge reccling sstem uses the off gas which would be used b other steel making processes as a fuel in the absence of the project activit. 4 is calculated as follows: fuel fuel OG * NCVOG * ECO2 = (8) OG uantit of the off gas consumed b the dust/sludge reccling sstem in ear (Nm 3 /ear) NCV Net calorific value of the off gas consumed b the dust/sludge reccling sstem OG (TJ/Nm 3 ) E CO CO2 2 emission factor of the fossil fuel that would be used (instead of the off gas) b the other steel making processes which currentl use the off gas as a fuel in ear (tco 2 /TJ) 18. DS is calculated from the formula below: = * CC *44/12 (9) DS DS L DS DS L uantit of the dust/sludge which would be landfilled in the absence of the project activit in ear on a dr weight basis (t-dr-ds /ear). This is calculated based on the procedure described in the paragraph 19 CC Carbon content of the dust/sludge which would be landfilled in the absence of the DS project activit on a dr weight basis (t-c/t-dr-ds). This should be determined as the average of the carbon content of the dust/sludge which was landfilled for the most recent three ears prior to the implementation of the project activit 19. DS L is determined conservativel as the maximum of the two values below under 19(a) and 19(b): (a) The average of the historical annual quantit of the dust/sludge which was landfilled for the most recent three ears prior to the implementation of the project activit; ( + )/ 3 (10) = + DS L DS L n DS L n 1 DS L n 2 4 It is assumed here that the consumption of the off gas b the project activit results in increased fossil fuel consumption b existing steel making process which currentl uses the off gas as a fuel. 6/10

7 for selected small-scale CDM project activit categories III.V. Decrease of coke consumption in blast furnace b installing dust/sludge reccling sstem in steel works (cont) DS L n n Historical annual quantit of the dust/sludge which was landfilled in ear n on a dr weight basis (t-dr-ds /ear) Year prior to the implementation of the project activit (b) The total dust/sludge generated from the steel works in ear multiplied with the average historical fraction of dust/sludge which was landfilled for the most recent three ears prior to the implementation of the project activit. ( / + / / )/ 3 (11) DS L = DS total * DS L n DS total n DS L n 1 DS total n 1 + DS L n 2 DS total n 2 DS total Total annual quantit of the dust/sludge generated from the steel works in ear on a dr weight basis (t-dr-ds/ear) DS L n Historical annual quantit of the dust/sludge which was landfilled in ear n on a dr weight basis (t-dr-ds/ear) DS total n n Historical total annual quantit of the dust/sludge generated from the steel works in ear n on a dr weight basis (t-dr-ds/ear) Leakage Year prior to the implementation of the project activit 20. If the equipment of dust/sludge reccling sstem is transferred from another activit or if the existing equipment is transferred to another activit leakage is to be considered. 21. If the dust/sludge is sold to Outside User for thermal application the use of alternative material to replace the dust/sludge b the Outside User after the project implementation will lead to CO 2 emission as the dust/sludge contains carbon. This CO 2 emission needs to be considered as leakage. The amount of leakage emission can be assumed to be the same as the amount of CO 2 which would have been emitted from the dust/sludge in the absence of the project activit. 22. Even if the dust/sludge is sold to Outside User as an iron source in the case that the alternative material identified in accordance with the approach stipulated in the paragraph 3 contains certain amount of carbon the CO 2 emission due to the use of the alternative material b Outside User needs to be considered as leakage. Emission reductions 23. Emission reductions are calculated as follows: ER = BE LE (12) 7/10

8 for selected small-scale CDM project activit categories III.V. Decrease of coke consumption in blast furnace b installing dust/sludge reccling sstem in steel works (cont) ER BE LE Emission reductions in ear (t CO 2 e/r) Baseline emissions in ear (t CO 2 e/r) Project emissions in ear (t CO 2 /r) Leakage emissions in ear (t CO 2 /r) Monitoring 24. Parameters that are obtained prior to the project activit: (a) (b) (c) (d) (e) : The average quantit of pig iron production of the most recent three pig iron HY ears (excluding abnormal ears) before the implementation of the project activit (t-pig/ear); extreme values are to be excluded from the available values of output rate NCV coke : Net calorific value of coke (TJ/t-coke). Reliable local or national data shall be used; 2006 IPCC default values should be used onl when countr or project specific data are not available or difficult to obtain. E CO 2 coke : CO 2 emission factor of coke (tco 2 /TJ). Reliable local or national data shall be used; 2006 IPCC default values should be used onl when countr or project specific data are not available or difficult to obtain. coke HY : The average quantit of coke consumption of the most recent three ears (excluding abnormal ears) before the implementation of the project activit (t-coke/ear); before c : The quantit of carbon fed into blast furnace to produce one ton of pig iron before DRI input into the blast furnace during the period of the one-month ex ante monitoring (t-c/t-pig); 25. Parameters that should be monitored ever ear during the crediting period: (f) (g) (h) (i) : The quantit of pig iron production in ear (t-pig/ear); pig iron coke PJ : The coke consumption in ear after the implementation of the project activit (t-coke/ear); : uantit of DRI pellet fed into the blast furnace in ear (t-dri/ear); DRI e _ DRI : raction of metallic iron in DRI pellet produced b the project activit in ear (t-e/t DRI). or example this parameter can be measured b conducting fluorescent X-ra analsis in laborator; 8/10

9 for selected small-scale CDM project activit categories III.V. Decrease of coke consumption in blast furnace b installing dust/sludge reccling sstem in steel works (cont) (j) (k) (l) (m) (n) c _ coke : raction of carbon in coke fed into the blast furnace in ear (t-c/t-coke). This parameter can be measured b conducting chemical analsis in laborator; after c : The quantit of carbon fed into blast furnace to produce one ton of pig iron after DRI input into the blast furnace during the period of the one-month ex post monitoring in ear (t-c/t-pig). ; after pig : The amount of pig iron produced during the period of the one-month ex post monitoring in ear (t-pig/month); after DRI : The amount of DRI pellet fed into the blast furnace during the period of the one-month ex post monitoring in ear (t-dri/month); after e _ DRI : raction of metallic iron in DRI pellet fed into the blast furnace during the period of the one-month ex post monitoring in ear (t-e/t-dri). This parameter can be measured b conducting fluorescent X-ra analsis in laborator; 26. or the determination of project activit emission the following parameters should be monitored. In addition the monitoring parameters stipulated in the latest version of the Tool to calculate baseline project and/or leakage emissions from electricit consumption and Tool to calculate project or leakage CO 2 emissions from fossil fuel combustion need to be monitored if applicable. a) Parameters that are obtained prior to the project activit: (a) NCV OG : Net calorific value of the off gas consumed b the dust/sludge reccling sstem (TJ/Nm 3 ); (b) (c) (d) CC : Carbon content of the dust/sludge which would be landfilled in the DS absence of the project activit on a dr weight basis (t-c/t-dr-ds); DS L n Historical annual quantit of the dust/sludge which was landfilled in ear n on a dr weight basis (t-dr-ds /ear); DS total n : Historical total annual quantit of the dust/sludge generated from the steel works in ear n on a dr weight basis (t-dr-ds/ear). b) Parameters that should be monitored ever ear during the crediting period: (e) OG : uantit of the off gas consumed b the dust/sludge reccling sstem in ear (Nm 3 /ear) (if applicable); 9/10

10 for selected small-scale CDM project activit categories III.V. Decrease of coke consumption in blast furnace b installing dust/sludge reccling sstem in steel works (cont) (f) (g) E CO2 : CO 2 emission factor of the fossil fuel to be used instead of the off gas b the other steel making processes which currentl use the off gas as a fuel in ear (tco 2 /TJ) (if applicable). Reliable local or national data shall be used; 2006 IPCC default values should be used onl when countr or project specific data are not available or difficult to obtain. The project participants shall identif the tpe of fossil fuel through the monitoring activit stipulated in the paragraph 17. In the case that it is difficult to identif the tpe of alternative fossil fuel project participants shall monitor all tpes of the fossil fuel that are used b the steel making processes which are currentl consuming the off gas. Project participants should assume that the alternative fuel is the fossil fuel with the highest CO 2 emission factor; DS total : Total annual quantit of the dust/sludge generated from the steel works in ear on a dr weight basis (t-dr-ds/ear). Project activit under a programme of activities The proposed methodolog is not applicable to project activities under a programme of activities /10