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: Greenhouse Gas Emission in the Fish Meal Industry in Morocco Central Steam Production Plant Version 3.0 Date: This PDD was composed using the Version 03 of the CDM-SCC-PDD template as well as the Guidelines for completing the simplified project design document (CDM-SSC-PDD) and the form for proposed new small scale methodologies (CDM-SSC-NM) (Version 05) as well as all the necessary related documents from the UNFCCC. A.2. Description of the small-scale project activity: Background information on the energy situation in Morocco Morocco has limited indigenous oil, gas and hydro resources; as a result it has historically been dependent on the import of fossil fuels (oil, coal and diesel). Approximately 97% of its primary energy comes from foreign sources, which weighs heavily on foreign exchange payments. At the same time Morocco is very suited for the implementation of solar techniques since it ranks among the most favoured sites worldwide concerning solar irradiation. A substitution of fossil fuel by solar heat and power would be of a high ecological relevance. Additionally to that it would enhance Morocco s security of supply and reduce its dependency from energy imports. A switch from fossil to solar energy is also economically attractive, especially on a mid- and long-term perspective: even though capital costs for solar installations are relatively high, only very low operating expenses occur. General information: The CDM-project focuses on the centralized steam production for 8 fish meal factories. Presently steam is being generated in several timeworn (25 yrs. average) steam boilers. Additionally to that every company has its own, very discontinuous steam supply, which makes steam generation very inefficient. A site visit in June 2007 showed energy optimisation potentials of the factories between 30 and 50 %, if supply- and demand-side measures are implemented. The project will be realised in the years 2008 and

4 Technologies employed: The present project focuses on supply-side measures for fuel saving. For that purpose the existing 24 decentralized fossil fuel boilers will be replaced by a central steam production plant: A solar field, using Fresnel-Technology, will provide baseload energy, one huge HFO-boiler will provide steam for peak demand and night operations. The planned solar field ranks among the biggest applications of solar heat for industrial processes worldwide. Thus following measures are considered for the project: A solar field plus a fossil fuel back-up system shall be implemented to centrally provide steam for the 8 fish meal plants on site. The old fuel oil boilers used for steam production in the fishmeal plants shall be abandoned and replaced by one centralized boiler. All companies shall be connected to a centralized steam grid. Additional technologies, not considered in the PDD: Energy efficiency measures should be implemented in the fish meal plants in order to reduce energy demand (demand-side measures). Since the implementation of suggested measures cannot be guaranteed the efficiency measures cannot be taken into account in this methodology. Contribution to sustainable development The project activity will contribute to sustainable development as it involves the reduction of fossil fuel. Furthermore the project will contribute to a more ecological steam generation as the solar technology is an environmentally safe and sound technology which doesn t cause any air pollutants but reduces them. Additionally, the replacement of the 24 single boiler installations by a new centralized fuel boiler will mitigate not only carbon dioxide emissions due to a higher degree of efficiency. It will also mitigate other air pollutants (e.g. CO, NOx, SOx, particulate matter) due to a controlled combustion of the fuel and due to the avoidance of several hundred start-ups, which especially emit high loads of air pollutants. The project can be considered as a lighthouse -project, as it will be one of the first projects in Africa and worldwide which uses solar energy for industrial applications at the medium temperature level (~200 C). Several follow-up projects can be expected which contributes to the break-through of solar technologies in the market. The installation of a concentrated solar technology also leads to a know how-transfer in the field of this new, environmentally safe and sound technology. 4

5 A.3. Project participants: Party involved Legal entity project participant (as applicable) Morocco Host Country GIE Al Wahdaoui (Project owner) No Please indicate if the Party involved wishes to be considered as project participant (Yes/No) Austria Austria denkstatt GmbH (Consultant to the CDM project) Austrian JI/CDM Programme Komunalkredit Public Consulting GmbH (Buyer) No No A.4. Technical description of the small-scale project activity: A.4.1. Location of the small-scale project activity: >> The project will be implemented in the city of El Marsa (harbour of Laâyoune), 20 kilometres southwest of the city of Laâyoune at the Atlantic coast. This is the location of eight fish meal plants. A Host Party(ies): Morocco A Region/State/Province etc.: Laâyoune, (South Morocco) A City/Town/Community etc: City of El Marsa (harbour of Laâyoune) A Details of physical location, including information allowing the unique identification of this small-scale project activity: The project site is located in the town El Marsa, which belongs to the city of Laâyoune/Western Sahara. The centralized steam production unit will be located in the industrial area of El Marsa besides the fish meal factories at the Atlantic coast (see the picture below; further pictures and maps are in Annex 3. 5

6 Figure 1: Location of Laâyoune at the Atlantic costs of Morocco / West Sahara A.4.2. Type and category(ies) and technology/measure of the small-scale project activity: This project falls into CDM-category 1 - Energy industries (renewable - / non-renewable sources). The project is a small-scale CDM project activity. The project type, as defined in UNFCCC s Appendix B of the simplified modalities and procedures for small-scale CDM project activities, is type 1.C: Renewable energy projects; thermal energy for the user; Version 13 is applied. Yearly energy demand and min./max. load The current yearly energy demand of the 8 fish companies is about 7,910 t/yr heavy fuel oil (compare chapter B.4, Table 4), which equals 87 GWh/yr energy (mean values ). The fuel demand should be reduced to about 82 GWh/yr due to boiler replacement and continuous steam-demand. The current min. /max. energy demand of all companies is estimated to range between 6 and 36 MW. The typical load from late August to December is roughly two to three times the load compared to the rest of the year. A minimum heat load occurs in April, the maximum between September and December. The heat load curve is shown indirectly in the following figure which shows the consumption of heavy fuel oil for the years

7 Figure 2: Consumption Heavy Fuel Oil Consumption Heavy Fuel Oil [t/month] Jan-04 Mar-04 May-04 Jul-04 Sep-04 Nov-04 Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 SUM COPELIT DELTA OCEAN KB FISH LAÂYOUNE ELEVAGE LAÂYOUNE PROTEINE SEPOMER SOMATRAPS SOTRAGEL Plant Design In order to ensure cost-effectiveness the hybrid plant will be constructed as follows: Baseload energy will be provided by the solar field with a max. capacity of 6 MW, producing approx. 11,712 MWh/yr. steam and heat. Further energy demand (back-up, peak and night) should be covered by a heavy fuel oil boiler (one boiler with 36 MW). The land area required is approx. 20,000 m² (17,000 for the solar field, the rest for the central boiler house, control room, tank farm). Figure 3: Linear Concentrating Fresnel-Collectors (courtesy of PSE AG) The details for both solutions for this hybrid plant are given below. 7

8 a) Central solar steam production unit The solar steam generator has a mirror area of 10,272 m² for use in a solar/fossil hybrid power plant providing steam to the 8 fish factories. Figure 4: Picture of a concentrating solar field (courtesy of Novatec Solar) The solar field has been designed using the following parameters: Design Temperature 180 C Design Pressure 10 bar Steam Quality 1.00 Maximum Pressure 20 bar Performance parameters of NOVA-1: Thermal loss per m² of primary reflector u0 = W/(m²K) u1 = W/(m²K) A technical acceptance test certifying the performance of solar field equipment will be provided by the DLR (German Aerospace Center), who will act as an independent consultant. b) Fossil Fuel Back-up Solution The following table provides an overview on the baseline boilers and the whole baseline steam system currently installed in the 8 installations: Fuel: heavy fuel oil Steam quality: Pressure range: bar Temperature range: C 8

9 Table 1: Description of the boilers used in the companies Company Name Year of Degree of Steam generation Operation construction efficiency η capacity (CAP) mode Operation range Unit year % t/h % of CAP COPELIT Boiler No High-Low-Off % Boiler No High-Low-Off % Boiler No High-Low-Off % DELTA OCEAN Boiler No n.a. 13 Modulating % Boiler No n.a. 8 Modulating % Boiler No n.a. 5 High-Low-Off % KB FISH Boiler No Modulating % Boiler No Modulating % Boiler No * 10 Modulating % LAÂYOUNE ELEVAGE Boiler No n.a. n.a. Boiler No n.a. n.a. Boiler No n.a. 10 n.a. n.a. Boiler No On-Off % LAÂYOUNE PROTEINE Boiler No On-Off % Boiler No n.a. 12 On-Off % SEPOMER Boiler No n.a. n.a. Boiler No n.a. 6 n.a. n.a. Boiler No n.a. 6 n.a. n.a. Boiler No n.a. 5 n.a. n.a. SOMATRAPS Boiler No * 8 High-Low-Off n.a. Boiler No * 8 High-Low-Off n.a. SOTRAGEL Boiler No n.a. n.a. Boiler No n.a. 8 n.a. n.a. Boiler No n.a. 7 n.a. n.a. mean value * values are provided by the companies. n.a. = not available The following table shows the data of the steam boiler to be installed under the project activity that will replace the currently installed boilers: Fuel: heavy fuel oil Type: Boiler with two fire-tubes Steam quality: Mean pressure: 8 bar Mean temperature: 180 C Table 2: Description of the new boiler Year of Degree of Steam generation Operation Operation range construction efficiency η capacity (CAP) mode Unit year % t/h % of CAP Boiler ,2 55 Modulating % 9

10 A.4.3. Estimated amount of emission reductions over the chosen crediting period: Table 3: Overview of the emission reductions for the 21 year crediting period Annual estimation of Years emission reductions in tonnes of CO 2e 2009/10 4, /11 4, /12 4, /13 4, /14 4, /15 4, /16 4, /17 4, /18 4, /19 4, /20 4, /21 4, /22 4, /23 4, /24 4, /25 4, /26 4, /27 4, /28 4, /29 4, /30 4,819 Total estimated reductions (tco 2e ) 101,200 Total number of crediting years 21 Annual average over the crediting period of estimated reductions (tco 2e ) Additional savings are expected for saving of fuel due to raising the amount of condensate and return water and also due to avoiding of several hundred start ups from 24 single boilers. The amount of t CO 2 saved cannot be seriously calculated although it is estimated to range between 10 and 12 % of the baseline emissions (i.e t CO 2 /yr.). 4,819 A.4.4. Public funding of the small-scale project activity: No public funding is used for the development of this project activity. 10

11 A.4.5. Confirmation that the small-scale project activity is not a debundled component of a large scale project activity: According to the Appendix C of the Simplified Modalities and Procedures for Small-Scale CDM project activities Debundling is defined as the fragmentation of a large project activity into smaller parts. A small-scale project activity that is part of a large project activity is not eligible to use the simplified modalities and procedures for small-scale CDM project activities. The full project activity or any component of the full project activity shall follow the regular CDM modalities and procedures. A proposed small-scale project activity shall be deemed to be a debundled component of a large project activity if there is a registered small-scale CDM project activity or an application to register another small-scale CDM project activity: with the same project participants; in the same project category and technology/measure; and registered within the previous 2 years; and whose project boundary is within 1 km of the project boundary of the proposed small-scale activity at the closest point. This project activity contains of the installation of just one solar field (plus steam grid) and one fuel oil back-up system and one boiler. There are no similar projects being implemented or planned in the whole area of Morocco respectively Africa yet. Thus this small scale project activity is not a debundled component of a large scale project activity. 11

12 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: The project activity uses the baseline methodology as defined in Appendix B of the simplified modalities and procedures for small-scale CDM project activities, category I.C.: Renewable energy projects, thermal energy for the user, Version 13. The first considered methodology was AM0056 / Version 01 Efficiency improvement by boiler replacement or rehabilitation and optional fuel switch in fossil fuel fired steam boiler systems. The change to the methodology was done due to the following reasons: 1) For AM0056 the required data (performance measurements at 24 single boiler installations at different load classes) were not available. 2) The project fulfils all criteria for a small scale project (see following chapter B.2). B.2 Justification of the choice of the project category: The project activity is a small-scale CDM project activity for which the CDM Executive Board provided the indicative simplified baseline and monitoring methodologies. This project activity qualifies as a small-scale project activity as defined in Decision 17/CP.7 Modalities and procedures for a clean development mechanism as defined in Article 12 of the Kyoto Protocol. This project activity comprises Renewable energy technologies that supply users with thermal energy that displaces fossil fuel as asked for by Appendix B of the simplified modalities and procedures for small-scale CDM project activities. This project activity will also remain under the limits of small-scale project activity types during every year of the crediting period. The procedures require that For Type I : Demonstrate that the capacity of the proposed project activity will not exceed 15 MW (or an appropriate equivalent), For Type II: Demonstrate that the annual energy savings on account of efficiency improvements will not exceed 60 GWh (or an appropriate equivalent) in any year of the crediting period, For Type III: Demonstrate that the estimated emission reductions of the project activity will not exceed 60 ktco 2 e in any year of the crediting period. The proposed small scale project activity includes solar field which is why it belongs to project category I (renewable energies). The project activity will remain under the 15 MW limit of small-scale project activity as the installed solar thermal capacity is 6 MW. Furthermore the annual fuel savings due the project activity will mount up to 17.3 GWh. The estimated emission reductions of the project activity (according to the methodology) will be about 4,819 t CO2 /yr. 12

13 Annex 35 of the Indicative simplified baseline and monitoring methodologies for selected small-scale CDM project activity categories state, that Output capacity of renewable energy equipment: Definition of maximum output capacity equivalent of up to 15 megawatts (or an appropriate equivalent) : a) Definition of maximum output : output is the installed/rated capacity, as indicated by the manufacturer of the equipment or plant, disregarding the actual load factor of the plant; maximum output solar field: 6 MW(th) small scale CDM project b) Definition of appropriate equivalent of 15 megawatts: Whereas decision 17/CP.7, paragraph 6 (c) (i), refers to megawatts (MW), project proposals may refer to MW(p), MW(e) or MW(th). As MW(e) is the most common denomination, the Executive Board has agreed to define MW as MW(e) and otherwise to apply an appropriate conversion factor; maximum output solar field: 6 MW(th) small scale CDM project The small scale project activity is not exceeding those levels. Discussion of the chosen methodology according to the applicability criteria (AMS-I.C. paragraph 1-4): 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. Within the project activity 8 fish companies are supplied with centrally produced steam, which is partially produced by a solar field. The steam is used for cookers, driers and evaporators for the production of fish meal. 2. Where thermal generation capacity is specified by the manufacturer, it shall be less than 45 MW. The project activity is calculated not to exceed 6 MWth for the solar field and 36 MWth for the fuel boiler. 3. For co-fired systems the aggregate installed capacity (specified for fossil fuel use) of all systems affected by the project activity shall not exceed 45 MWth. Cogeneration projects that displace/ avoid fossil fuel consumption in the production of thermal energy (e.g. steam or process heat) and/or electricity shall use this methodology. The capacity of the project in this case shall be the thermal energy production capacity i.e., 45 MWth. A HFO-boiler with 36 MWth will be installed, the old boilers will be abandoned. Thus the aggregate installed capacity (specified for fossil fuel use) of all systems will not exceed 45 MWth. The project does not involve cogeneration. 4. In the case of project activities that involve the addition of renewable energy units at an existing renewable energy facility, the total capacity of the units added by the project should be lower than 45 MWth and should be physically distinct from the existing units. There is no existing renewable energy facility, the solar field will have a thermal capacity of 6 MWth. The chosen methodology is applicable. 13

14 B.3. Description of the project boundary: The physical, geographical site of the new energy generation plant (renewable and fossil) delineates the project boundary. Figure 5: Project boundary feed water buffer HFO tank HFO boiler solar field project boundary B.4. Description of baseline and its development: The project activity uses the baseline Type 1.C. as described in Appendix B of the simplified modalities and procedures for small-scale CDM project activities. Key assumptions for the baseline: Currently steam is produced by 24 single boiler installations. The current yearly fuel demand (heavy fuel oil) ranges between 6,286 and 9,202 t/yr or between 69 and 102 GWh/yr fuel energy for the years (Table 4). Table 4: Fuel demand of the 8 fish companies ( ) Year Fuel demand in [t/yr] Fuel energy in [MWh/yr] ,235 90, , , ,918 87, ,286 69,457 Mean value 7,910 87,406 14

15 For further development of the baseline it is assumed that the mean production of fish meal and fish oil and thus the energy demand keep stable which is why mean values for have been used for calculation of future energy demand. 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: In the course of the project development a range of different possible alternative project scenarios have been evaluated in detail: 1) The replacement of the current equipment with a new central pure heavy fuel oil combustion unit (producing only steam) 2) The replacement of the current equipment with a combined heat and power plant (producing electricity and steam; electricity to be fed in into the public grid) 3) Development of a municipal waste incineration plant for the production of steam for the fish meal plants 4) The replacement of the current equipment with a new centralized steam production unit plus heavy fuel oil backup (i.e. project scenario) 5) Continuation of current operation. Usage of the existing boilers with frequent repairs as done in the past plus potential on demand purchase of again second-hand equipment if needed. For demonstration, that the proposed project activity is additional, the alternatives have been evaluated according to attachment A to appendix B of the simplified modalities and procedures for small-scale CDM project activities. This document functions as a guide for the demonstration of additionality as following: 1. Project participants shall provide an explanation to show that the project activity would not have occurred anyway due to at least one of the following barriers: a) Investment barrier: a financially more viable alternative to the project activity would have led to higher emissions; b) Technological barrier: a less technologically advanced alternative to the project activity involves lower risks due to the performance uncertainty or low market share of the new technology adopted for the project activity and so would have led to higher emissions; c) Barrier due to prevailing practice: prevailing practice or existing regulatory or policy requirements would have led to implementation of a technology with higher emissions; d) Other barriers: without the project activity, for another specific reason identified by the project participant, such as institutional barriers or limited information, managerial resources, organizational capacity, financial resources, or capacity to absorb new technologies, emissions would have been higher. Barrier analysis: a) Investment barriers: If it was only about the investment costs the solar field would probably not be built, as the costs for the solar field are quite high. The solar field pays off only due to fuel savings. 15

16 Even with the sales of the certificates the financial incentive is nearly not given to implement this project. The financial attractiveness comes from the assumed savings of energy costs. Thus the economics of the solar field are heavily dependent on the development of the future HFO-prices. Alternative 1 (central HFO-combustion) would have much lower investment cost as the plant design would be similar - only the solar field would not be built. This would cause much more emissions than the project scenario, as only the savings due to an increase of efficiency would occur. Additionally to that it is nearly impossible to find a foreign investor for that kind of project, especially in this area of Morocco (keyword: Western Sahara-conflict). b) Technological barriers: Despite of alternative 3 all other alternatives would be technologically less advanced than the project scenario. From this point of view all other alternatives would involve much lower risks due to the performance uncertainty (early stage technology without any experience; influence of sand on the solar field). All other alternatives than the project scenario would have led to higher emissions. c) Lack of prevailing practice: The planned project activity (solar field) is the first of its kind in this region and one of the first worldwide. d) Other barriers: It can be assumed that, without project activity, no change compared to the baseline scenario would occur in the absence of the project. This would lead to higher emissions compared to the project scenario. In the case of this SSC-CDM project activity all of the above mentioned barriers exist. Elimination of alternative scenarios which are prevented by the identified barriers: Alternative 1 (replacement of the current equipment with a new central pure heavy fuel oil combustion unit) is prevented by the barriers as there would be no fuel switch and the CO 2 - emission reduction potential would be quite low. Alternative 2 (replacement of the current equipment with a combined heat and power plant - producing electricity and steam; electricity to be fed in into the grid) is prevented by the barriers as this project activity would generate even more greenhouse gas emissions as the baseline. Alternative 3 (municipal waste incineration plant for the production of steam) is prevented by the barriers as this project activity would be far too expensive (no positive return on investment even including potential sales or CERs), the collection of the waste is prevented by the local authorities. Furthermore also the emission of greenhouse gases would exceed the baseline emissions. Alternative 5 is the baseline and thus not applicable. The project scenario is Alternative 4. 16

17 B.6. Emission reductions: B.6.1. Explanation of methodological choices: Following formulas are used to calculate the emission reductions due to this project activity: Baseline emissions displaced by the project activity: BE y = HG y * EF CO2 /η th Where: BE y the baseline emissions from steam/heat displaced by the project activity during the year y in tco 2 e. HG y the net quantity of steam/heat supplied by the project activity during the year y in GJ. EF CO2 the CO 2 emission factor per unit of energy of the fuel that would have been used in the baseline plant in tco 2 /GJ. η th the efficiency of the plant using fossil fuel that would have been used in the absence of the project activity [-]. Leakage: Paragraph 17: If the energy generating equipment is transferred from another activity or if the existing equipment is transferred to another activity, leakage is to be considered. For project activity no leakage has to be considered. Use of fossil fuel during project activity: Paragraph 21: If fossil fuel is used, the thermal energy [ ] metered should be adjusted to deduct thermal energy [ ] from fossil fuels using the specific fuel consumption and the quantity of fossil fuel consumed. BE y = (HG y HG y,ff ) * EF CO2 /η th HG y,ff the thermal energy from fossil fuels supplied by the project activity during the year y in GJ. With HG y,ff = m FF / SFC Where: m FF SFC the quantity of fossil fuel consumed during project activity in t/yr. the specific fuel consumption of the baseline in t/gj. BE y = (HG y m FF / SFC) * EF CO2 /η th 17

18 B.6.2. Data and parameters that are available at validation: The following list summarizes data and parameters which are NOT monitored but determined upfront so as to be available for validation: H u,hfo Data / Parameter: Data unit: GJ/t Description: Net calorific value of heavy fuel oil Source of data used: OECD/IEA, Key World Energy Statistics, 2007, Paris, 2007, p. 58f Value applied: Justification of the As there are no measurements available, OECD/IEA values were used instead. choice of data or description of measurement methods and procedures actually applied : Any comment: EF CO2 Data / Parameter: Data unit: tco 2 /GJ Description: CO 2 emission factor per unit of energy of the fuel (HFO) that would have been used in the baseline plant Source of data used: 2006 IPCC Guidelines for National Greenhouse Gas Inventories, p Value applied: Justification of the As there are no measurements available for the CO 2 emission factor EF CO2 the choice of data or IPCC default emission factor for Residual Fuel Oil is used. description of measurement methods and procedures actually applied : Any comment: Data / Parameter: η th Data unit: - Description: Mean boiler-efficiency Source of data used: Reference value for units with similar specifications, provided by two manufacturers (WTI wärmetechnische Industrieanlagen Gesm.b.H. and astebo GmbH) Value applied: 0.89 Justification of the The boiler-efficiencies range between 68.5 and 91.7 % according to choice of data or measurements done by a boiler expert. Since there is no information about the description of measuring method (according to international standards) and there do not exist measurement methods any test reports, the efficiency of the baseline units was determined by using the and procedures actually highest reference value provided by two manufacturers. applied : Any comment: 18

19 Q S,p Data / Parameter: Data unit: GJ/yr Description: Amount of net energy supplied by the solar field Source of data used: Offer of NOVATEC BioSol Value applied: 42,163 Justification of the The net energy supply of the solar field Q S,p mounts up to 11,712 MWh or choice of data or 42,163 GJ per year. description of measurement methods and procedures actually applied : Any comment: Data / Parameter: η th,p Data unit: - Description: Efficiency of the centralized HFO-boiler Source of data used: Offer of Loos Austria GmbH Value applied: Justification of the The high degree of efficiency is due to the use of economizer and O 2 -control. choice of data or description of measurement methods and procedures actually applied : Any comment: The losses of the steam grid are expected to be negligible which is why within the methodology the efficiency of the centralized HFO-boiler is used. B.6.3 Ex-ante calculation of emission reductions: This chapter provides the ex-ante calculation of project emissions and baseline emissions expected during the crediting period. According to chapter B.6.1 Baseline emission reduction can be calculated by using formula BE y = (HG y m FF / SFC) * EF CO2 /η th For the ex-ante calculation of BE y, m FF and SFC have to be calculated: Calculation of m FF : m FF can be derived from the net quantity of steam/heat supplied by the project activity HG y, which can be calculated in two ways: HG y = Q S,p + m FF * H u,hfo * η th,c HG y = m FF,b * H u,hfo * η th and 19

20 Where: Q S,p the amount of net energy supplied by the solar field in GJ/yr. η th,c the efficiency of the new centralized HFO-boiler [-]. m FF,b the quantity of fossil fuel that would have been consumed in the absence of the project activity in t/yr. By comparing the two formulas Q S,p + m FF * H u,hfo * η th,c = m FF,b * H u,hfo * η th m FF can be expressed as m FF = (m FF,b * η th Q S,p / H u,hfo ) / η th,c Calculation of SFC: SFC = 1 / H u,hfo / η th By using the formulas above and the corresponding values given in chapter B.6.2, the emission reduction mounts up to BE y = 4,819 t/yr. 20

21 B.6.4 Summary of the ex-ante estimation of emission reductions: Table 5: Results of the ex-ante estimation of emission reductions including aggregate emission reductions Annual estimation of Years emission reductions in tonnes of CO 2e 2009/10 4, /11 4, /12 4, /13 4, /14 4, /15 4, /16 4, /17 4, /18 4, /19 4, /20 4, /21 4, /22 4, /23 4, /24 4, /25 4, /26 4, /27 4, /28 4, /29 4, /30 4,819 Total estimated reductions (tco 2e ) 101,200 B.7 Application of a monitoring methodology and description of the monitoring plan: B.7.1 Data and parameters monitored: Data / Parameter: Data unit: Description: Source of data to be used: Description of measurement methods and procedures to be HG y GJ/yr Net quantity of steam/heat supplied by the project activity Measurement Continuous measurement with appropriate equipment according to actual best practise standards. Recording shall be done on an hourly basis. The equipment shall measure the parameters pressure, temperature and mass 21

22 applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: flow and transform the data into energy values. Maintenance of the measuring equipment has to be done according to the manufacturer s product specification. m FF t/yr Quantity of fossil fuel consumed during project activity Measurement Continuous measurement with appropriate equipment according to actual best practise standards. Recording shall be done on an hourly basis. Maintenance of the measuring equipment has to be done according to the manufacturer s product specification. B.7.2 Description of the monitoring plan: The monitoring plan includes following elements: The monitoring parameters have to be recorded by the operator of the plant on an hourly basis in digital form. Backup copies of the data have to be made on a weekly basis. All data have to be archived by the operator of the centralized steam generation plant. B.8 Date of completion of the application of the baseline and monitoring methodology and the name of the responsible person(s)/entity(ies) The date of the completion of the methodology to the project activity is 24/09/2009. The entity responsible for the application of the baseline and monitoring methodology to the project activity is G.I.E. Al Wahdaoui, which is also a project participant listed in Annex 1. 22

23 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: The starting date of this CDM project activity will start on 01. July C.1.2. Expected operational lifetime of the project activity: The expected operational lifetime of the project activity will be 25 years for the above mentioned technical equipment. C.2 Choice of the crediting period and related information: The project will use a renewable crediting period. C.2.1. Renewable crediting period Each crediting period will be 7 years and will be renewed at most two times, provided that, for each renewal, a designated operational entity determines and informs the Executive Board that the original project baseline is still valid or has been updated taking account of new data where applicable. C Starting date of the first crediting period: The crediting period for this project will start on the 01/07/2009. C Length of the first crediting period: The length of the first crediting period will be 7 years. Not applicable. C.2.2. Fixed crediting period: C Starting date: Not applicable. C Length: Not applicable. 23

24 SECTION D. Environmental impacts D.1. If required by the host Party, documentation on the analysis of the environmental impacts of the project activity: No documentation required by the host country. 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: The designated area for the project activity is a piece of land at the coast, in the midst of the industrial area of El Marsa (compare Annex 3, Figures 6 and 7). The piece of land is not of a special ecological value. Thus no negative impacts are expected. In fact the project will contribute to a better ecological situation in the area as the solar technology doesn t cause any air pollutants but reduces them. Additionally, the replacement of the 24 single boiler installations by a centralized steam production unit will mitigate not only carbon dioxide emissions due to a higher degree of efficiency. It will also mitigate other air pollutants (e.g. CO, NOx, SOx, particulate matter) due to a controlled combustion of the fuel and due to the avoidance of several hundred start-ups, which especially emit high loads of air pollutants. SECTION E. Stakeholders comments E.1. Brief description how comments by local stakeholders have been invited and compiled: The designated area for the project activity is close to the companies which will be supplied by steam (compare Annex 3, Figure 8). Consultations have been made in the form of several personal discussions between the project developers and the owners and the management personnel of the respective industrial plants, the majors and government employees of the cities of Laâyoune Plage and Laâyoune representatives of the national fish meal association (ANAFAP) representatives of national authorities dealing with the national fishing industry Discussions have been made directly on site in Morocco as well as in the course of visits of Moroccan delegations to Vienna in Memos of those meetings as well as the lists of the composition of the delegation are being made available to the DOE. 24

25 E.2. Summary of the comments received: The comments of the stakeholders were positively towards this project. There is currently no item of written comment available. Meanwhile the project was also presented to Mohammed VI Ben Al-Hassan, the king of Morocco, and received his blessing. E.3. Report on how due account was taken of any comments received: There is no negative impact of the project known by the project developer. Currently there is no item of written comment available. 25

26 Annex 1 CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY Organization: G.I.E. Al Wahdaoui - Le Groupement d interêt économique AL WAHDAOUI Street/PO Box: Immeuble Buchenna Négoce, Avenue Abderrahim Bouabid, Parc al Corde Building: City: Port Lâayoune State/Region: Postfix/ZIP: BP 131 Country: Morocco Telephone: FAX: URL: Represented by: Hassan Sentissi el Idrissi Title: Salutation: Mr. Last Name: Sentissi el Idrissi Middle Name: First Name: Hassan Department: Mobile: Direct FAX: Direct telephone: Personal Organization: Denkstatt GmbH Street/PO Box: Hietzinger Hauptstraße 28 Building: City: Vienna State/Region: Postfix/ZIP: 1130 Country: Austria Telephone: FAX: office@denkstatt.at URL: Represented by: Title: Dr. Salutation: Mr. Last Name: Plas Middle Name: First Name: Christian Department: Mobile: Direct FAX:

27 Direct telephone: Personal office@denkstatt.at Organization: Austrian JI/CDM Programme Komunalkredit Public Consulting GmbH Street/PO Box: Tuerkenstrasse 9 Building: City: Vienna State/Region: Vienna Postfix/ZIP: 1092 Country: Austria Telephone: +43 (0) 1/ FAX: +43 (0) 1/ kyoto@kommunalkredit.at URL: Represented by: Title: DI Salutation: Mrs. Last Name: Amerstorfer Middle Name: First Name: Alexandra Department: Mobile: Direct FAX: +43 (0) 1/ Direct telephone: +43 (0) 1/ Personal kyoto@kommunalkredit.at 27

28 Annex 2 INFORMATION REGARDING PUBLIC FUNDING No public funding is used for the development of this project activity. 28

29 Annex 3 BASELINE INFORMATION Project outline The CDM-project focuses on the centralized steam production for 8 fish meal factories in El Marsa/Laâyoune/Western Sahara (see maps below). Presently steam is being generated in several timeworn (25 yrs. average) steam boilers. In addition to that every company has its own, very discontinuous steam supply, which makes steam generation very inefficient. A site visit in June 2007 showed energy optimisation potentials of the factories between 30 and 50 %, if supply- and demand-side measures are implemented. The present report focuses on supply-side measures for fuel saving, which are: 1) fuel saving via solar steam-production 2) enhancement of the overall degree of efficiency of the fossil fuel-based steam generation by boiler replacement 3) fusion of eight separate steam systems to one connected steam grid Figure 6: Location of the project site: City of Laâyoune and City of Plage 29

30 Figure 7: Map of the project site in El Marsa; in the red circle: scheme of the steam grid to be installed (see also next Figure); the red rectangles mark the possible sites for the solar field Atlantic Ocean Desert Figure 8: Scheme of the boiler replacement 30

31 Figure 9: Picture of a solar field (courtesy of NOVATEC BioSol) Project history In the beginning of the project, several options had been discussed, including following: 1) The replacement of the current equipment with a new central pure heavy fuel oil combustion unit (producing only steam) 2) The replacement of the current equipment with a combined heat and power plant (producing electricity and steam; electricity to be fed in into the public grid) 3) Development of a municipal waste incineration plant for the production of steam for the fish meal plants 4) Development of a solar field combined with a fossil fuel back-up solution, producing steam for the plants. For the above mentioned project scenarios detailed technical, environmental and economical assessments have been performed. Those led to the identification of alternative 4 Development of a solar field plus fuel oil backup as to only possible project. Of those four options, three had to be phased out in earlier stages of the project: Alternative 1 (replacement of the current equipment with a new central pure heavy fuel oil combustion unit) is prevented by the barriers as there would be no fuel switch and the CO 2 - emission reduction potential would be too low. 31

32 Alternative 2 (replacement of the current equipment with a combined heat and power plant - producing electricity and steam; electricity to be fed in into the grid) is prevented by the barriers as this project activity would generate even more greenhouse gas emissions than the baseline. Alternative 3 (municipal waste incineration plant for the production of steam) is prevented by the barriers as this project activity would be far too expensive (no positive return on investment even including potential sales or CERs). Furthermore the emission of greenhouse gases would exceed the baseline emissions by far. Some remarks to the baseline emissions Within the project 24 steam boilers shall be replaced in 8 different companies. The boilers in place are quite old (year of construction: , mean value is 1983). A usual replacement of the equipment according to average life time of 25 years is not done. Boilers have been bought second-hand and are repaired over and over again, thus extending any possible lifespan a provider would state. The boilerefficiencies range between 68.5 and 91.7 % (according to own calculations, based on data raised by a boiler expert). Additionally to that the boiler operation is very discontinuous since every single company produces its own steam, and only when raw material (= fish) is available. The 8 companies produce in an alternating way as follows: after arrival at the harbour of Laâyoune Plague raw material is provided to the companies in stipulated portions. Beginning with the first company it is provided as long as fish is available. The companies start with their operation after one another, a simultaneous operation of all company practically never occurs. Also the operation mode to run 24 single boiler installations requires much energy to start-up the cold boilers respectively keep them at high temperature. Additional energy- and CO 2 -savings for that aspect are estimated to range between 10 and 12 % or 2,500-2,900 t CO 2 /yr. Nevertheless these additional savings cannot be considered within the calculations since they cannot be seriously calculated. One big advantage of the project therefore is the connection of all companies to one steam-supplysystems and the replacement of many inefficient boilers by one centralized steam production plant, providing continuous steam supply and thus avoiding hundreds of energy-intensive start-ups of cold boilers. 32

33 Tables Table 6: Consumption of heavy fuel oil COPELIT DELTA OCEAN Consumption heavy fuel oil [t/month] KB FISH L. ELEVAGE L. PROTEINE SEPOMER SOMATR. SOTRAG. SUM Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

34 Table 7: Processed raw material COPELIT DELTA OCEAN Raw material processed [t/month] KB FISH L. ELEVAGE L. PROTEINE SEPOMER SOMATR. SOTRAG. SUM Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec