Monitoring and Verification Plan Graneros Plant Fuel Switching Project June Prepared by

Transcription

1 Monitoring and Verification Plan Graneros Plant Fuel Switching Project June 2003 Prepared by MGM International, Inc. Ayacucho 1435, 9 B C1111AAM Buenos Aires Argentina

2 Table of Contents 1. Introduction 3 2. Summary of the project 4 3. Project boundaries 4 4. Estimation and monitoring of GHG emissions reductions Data required for monitoring of project and baseline emissions Graneros GHG emissions calculation electronic workbook (MGM_MVP_NGP_EM.xls) Description of the MGM_MVP_NGP_EM_ xls electronic workbook Using the MGM_MVP_NGP_EM.xls electronic workbook Quality control (QC) and quality assurance (QA) procedures are being undertaken for data monitored Information management system for data monitoring 21 Graneros Plant Fuel Switching Project 2 MGM International, Ltda. Copyright (May 2003) All Rights Reserved

3 Graneros Plant Fuel Switching Project MONITORING AND VERIFICATION PLAN 1. Introduction The Monitoring and Verification Plan describes the procedures for data collection, and auditing required for the project, in order to determine and verify emissions reductions achieved by the project. This project will require only very straightforward collection of data, described below, most of which is already collected routinely by the staff of Nestlé s Graneros Plant, where the proposed CDM project is to be implemented. The Monitoring and Verification Plan (MVP) document fulfills the CDM Executive Board requirement that CDM projects have a clear, credible, and accurate set of monitoring and verification procedures. The purpose of these procedures is to direct and support continuous monitoring of project performance and periodic auditing, verification and certification activities to determine project outcomes, in particular in terms of greenhouse gas (GHG) emission reductions. The MVP is a vital component of project design, and as such is subject to a formal third-party validation process along with the project baseline and other project design features. Managers of the Project must maintain credible, transparent, and adequate data estimation, measurement, collection, and tracking systems to successfully develop and maintain the proper set of information to undergo an audit for a greenhouse gas (GHG) emission reduction investment. These records and monitoring systems are needed to subsequently allow an Operational Entity to verify project performance as part of the verification and certification process. In particular, this process reinforces the fact that GHG reductions are real and credible to the buyers of the Certified Emissions Reductions (CERs). This set of information will be needed to meet the evolving international reporting standards developed by the UNFCCC. The document must be used by the project implementers and operators of the Technical Department of Nestlé s Graneros plant. Strict adherence to the guidelines set out in this monitoring plan is necessary for the project managers and operators to successfully measure and track project impacts for audit purposes. MGM International will provide capacity building to the Technical Department of Nestlé s Graneros Plant in order to meet the requirements presented in this MVP. Graneros Plant Fuel Switching Project 3

4 Graneros Plant Fuel Switching Project 2. Summary of the project The Graneros Plant Fuel Switching Project (Project) activity primarily aims at reducing GHG emissions through fuel switching. The project consists of investment to replace the use of coal and other fossil fuels by natural gas, partially funded through the sale of carbon credits in the context of the Clean Development Mechanism (CDM) of the Kyoto Protocol. Currently, coal (and, to a lesser extent, other fossil fuels) is used to generate steam and process heat, with a consumption of 11,400 t/year. The extra income derived from the sale of carbon credits will allow Nestlé to pay for part of the conversion, keeping in mind the low prices of coal in comparison with natural gas. The project has the capacity to produce 348,090 tonnes of CO2-equivalent emissions reduction over a 21-year time frame. The Project also brings social (employment, health, and labour conditions), environmental (air quality) and economic benefits, and contributes to sustainable development objectives of the Chilean Government. 3. Project boundaries The project boundaries define the technical extent to which the effects of the project must be measured, monitored and verified. These boundaries determine which environmental impact arising as a result of project implementation should be monitored, the criteria used to judge adequate performance, and the design of indicators. Graneros Plant Fuel Switching Project 4

5 Graneros Plant Fuel Switching Project Table 3.1: Direct and indirect emissions on - and off -site in the project and baseline scenarios Emissions Project Scenario Baseline Scenario Direct on-site Direct off-site There are emissions of CO2 associated with use of natural gas for the production of heat on site. Methane (CH 4 ) and nitrous oxide (N 2 O) emissions from natural gas combustion at plant site. Methane (CH 4 ) emissions from natural gas leakage at plant site. Methane (CH 4 ) emissions from natural gas production, pipeline leakage (natural gas pipeline outside project site). If the source of natural gas is an Annex 1 country, then methane emissions in gas production and the part of the transmission pipeline in that country should be excluded. CO2 emissions from coal and petroleum fuel combustion at plant site in the baseline. Methane (CH 4 ) and nitrous oxide (N 2 O) emissions from coal and petroleum fuel combustion at plant site in the baseline. Methane (CH 4 ) emissions related to coal mining, provided the coal originates in an non- Annex 1 party. CO 2 emissions from coal transport within the country of the project and in other non-annex 1 parties. Indirect on-site Indirect off-site Power plant CO2 emissions from electricity use at the plant site excluded, since there is no change, with respect to the baseline, as a result of the project This would include, e.g. the emissions associated with gas pipeline construction to bring natural gas to the project site area. This is not included, since there are likely to be many other users as well, and in each case there will be reduced CO 2 emissions from fuel switching. Excluded. Power plant CO2 emissions from electricity use at the plant site excluded, since there is no change, with respect to the baseline, as a result of the project. Not applicable. Graneros Plant Fuel Switching Project 5

6 Graneros Plant Fuel Switching Project 4. Estimation and monitoring of GHG emissions reductions This section presents the methods for collecting data, estimating GHG emission reduction, and maintaining the documents to support and verification of the Project s GHG emissions. A customized procedure was developed in the form of the Project s GHG emission electronic worksheets (MGM_MVP_NGP_EM_ xls), which must be used by project implementers and operators of the Technical Department of Nestlé s Graneros plant, complement the instructions presented in this section. GHG emission impacts for the project are estimated by comparing emissions with project (project emission scenario) to emissions without project (baseline emission scenario). The emission reductions equal the baseline emissions minus the project emissions. 4.1 Data required for monitoring of project and baseline emissions This is divided into project s GHG and non-ghg related data, as well as baseline monitoring data, as follows: m 3 of natural gas used for the plant Quantities of any other fossil fuels still used in the plant, e.g. coal, diesel, LPG. (if applicable) Survey of the technology used at the Nestlé Graneros plant, including inventory of all fossil fuel using equipment; this survey will be conducted annually; Production of the plant Graneros Plant Fuel Switching Project 6

7 Graneros Plant Fuel Switching Project Table 4.1. Data to be collected in order to monitor emissions from the project activity, and how these data will be archived: ID number D.3.1 D.3.2 D.3.3 D.3.4 Data type Volume of natural gas consumed Quantity of coal used, if any after project implementation Quantity of diesel used, if any after project implementation Quantity of LPG used, if any after project implementation Data variable Data unit Measured (m), calculated (c) or estimated (e) Recording frequency Proportion of data to be monitored MFC NG m 3 m Month 100% MFC Coal kg m Month 100% MFC Diesel liter m Month 100% MFC LPG kg m Month 100% How will the data be archived? (electronic/ paper) Paper (field record) Electronic (spreadsheet) Paper (field record) Electronic (spreadsheet) Paper (field record) Electronic (spreadsheet) Paper (field record) Electronic (spreadsheet) For how long is archived data to be kept? Paper:1 year, Electronic: 7 years Paper:1 year, Electronic: 7 years Paper:1 year, Electronic: 7 years Paper:1 year, Electronic: 7 years D.3.5 Equipment survey N.A. m Year N.A. Electronic Electronic: 7 years D.3.6 Volume of production V P tonnes m Month 100% Electronic (spreadsheet) Paper: 1 year Electronic: 7 years Comment Not to be considered for emission reduction calculations Not to be considered for emission reduction calculations Graneros Plant Fuel Switching Project 7

8 Graneros Plant Fuel Switching Project Project non GHG-related data The following non GHG-related data are also required: Company s internal health record: the company will monitor occupational health in order to detect if the company has substantially improved the health condition of its employees. This program will be based on internal health records; and records of absenteeism due to sickness In addition, the company will aim at maintaining its existing internal programs related to social and environmental quality, which also serve as indicators of the company s commitment to social and environmental quality. The following table shows where relevant data will be collected and kept. Social: Data Company s internal health records Records of absenteeism due to sickness Regulatory and other: Host Country approval and other regulatory documents Baseline assessment, MGM_CO 2 Model outputs Validation and other documents related to the Operation Entity How often generated Daily Daily Once Once, and yearly Every 7 years Format of data (paper / electronic) Paper (field record) Electronic (spreadsheet) Paper (field record) Electronic (spreadsheet) Electronic / paper Electronic Electronic Team/individual responsible for its management HR manager HR manager Technical Department Technical Department Technical Department How long data records stored Project lifetime Project lifetime Project lifetime Project lifetime Project lifet ime Graneros Plant Fuel Switching Project 8 MGM International, Ltda. Copyright (May 2003) All Rights Reserved

9 Graneros Plant Fuel Switching Project 4.2 Graneros GHG emissions calculation electronic workbook (MGM_MVP_NGP_EM.xls) All the project specific GHG-related data collected, as described above, will be fed into the MGM_MVP_NGP_EM_ xls spreadsheet. This model was developed for use by Nestlé s Graneros Plant as its electronic GHG monitoring and calculation workbook. The electronic workbook serves as the data management system for the project managers and operators of the Technical Department of Graneros plant, and will be used throughout the lifetime of the project. The MGM_MVP_NGP_EM_ xls spreadsheet is similar to that used in order to determine baseline emissions and estimate project emissions (see PDD). The assumptions regarding heating value and emissions factors of fuels are the same in each case, and are unchanged throughout the project (see in the PDD). The baseline emissions are estimated in a dynamic manner from data entered into the MGM_MVP_NGP_EM_ xls spreadsheet. The spreadsheet thus determines emissions reductions as a result of project implementation. The staff responsible for Project monitoring must complete the electronic worksheets on a monthly basis. Given that some of these data may be collected more frequently, data need to be aggregated to allow monthly inputs into the spreadsheet. The spreadsheet, automatically provides annual totals in terms of GHG reductions achieved through the substitution of coal, diesel and LPG by natural gas in the production of Nestlé Graneros Plant operations Description of the MGM_MVP_NGP_EM_ xls electronic workbook The MGM_MVP_NGP_EM_ xls analyses the emissions associated with fuel switching. The model contains a series of worksheets with different functions: Data entry sheet (Fuel consumption) Calculation sheets for each fuel type (Natural gas, Coal, Diesel, LPG); Result sheet (Emiss. Red.) Graneros Plant Fuel Switching Project 9

10 Graneros Plant Fuel Switching Project Using the MGM_MVP_NGP_EM.xls electronic workbook The only worksheet where the user (Nestlé Graneros Plant, NGP, staff) is allowed to enter data is the Fuel cons umption data entry sheet. Even in this sheet, only those cells where NGP staff are required to enter data have been left unblocked. All other cells contain model fixed parameters or computed values which cannot be modified by NGP staff. A color-coded key is used to facilitate data input. The key for the code is as follows: Input Fields: Pale yellow fields indicate cells where project operators are required to supply data input, as is needed to run the model; Result Fields: Green fields display key result lines as calculated by the model. A printout of the data entry sheet Fuel consumption is shown in the following page. Other sheets are shown in subsequent pages. All fields in these sheets include fixed values, or values that are computed from data in the data entry sheet. The last sheet shows the results, comparing year-by-year GHG emissions with the project with baseline values in order to determine annual emissions reductions, shown in the last column. Graneros Plant Fuel Switching Project 10

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20 Graneros Plant Fuel Switching Project 5. Quality control (QC) and quality assurance (QA) procedures are being undertaken for data monitored. Nestlé Chile S.A. has a series of internal procedures with respect to quality control and rigorous calibration procedures for its instruments. Nestlé S.A. will use these procedures to ensure that data collected for the project are subject to the most rigid quality control procedures. Data Uncertainty level of data Are QA/QC procedures (High/Medium/Low) planned for these data? Outline explanation why QA/QC procedures are or are not being planned. D.3.1 Low Yes These data will be directly used for calculation of emissions reductions D.3.2 Low Yes These data will be used as supporting information to calculate emission reductions by project activity D.3.3 Low Yes These data will be used as supporting information to calculate emission reductions by project activity D.3.4 Low Yes These data will be used as supporting information to calculate emission reductions by project activity D.3.5 Low No Not to be considered for emission reduction calculations D.3.6 Low No Not to be considered for emission reduction calculations Graneros Plant Fuel Switching Project 20 MGM International, Ltda. Copyright (May 2003) All Rights Reserved

21 Graneros Plant Fuel Switching Project 6. Information management system for data monitoring All electronic data will be backed up on a monthly basis, and two electronic copies of each document will be kept in different locations. These locations are: Graneros Plant and Head Office in Santiago. Graneros Plant Fuel Switching Project 21 MGM International, Ltda. Copyright (May 2003) All Rights Reserved