GOLD STANDARD PASSPORT

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1 GOLD STANDARD PASSPORT CONTENTS A. Project title B. Project description C. Proof of project eligibility D. Unique Project Identification E. Outcome stakeholder consultation process F. Outcome sustainability assessment G. Sustainability monitoring plan H. Additionality and conservativeness deviations Annex 1 ODA declarations 1

2 SECTION A. Project Title National Bachu Biomass Power Generation Project Version: 03 Date: 01/04/2013 SECTION B. Project description In order to solve the power shortage of local gird, make fully use of the biomass residues, improve the income and environment of rural area, National Bio Energy Co.,Ltd decided to invest an agricultural biomass based power plant in Bachu County of Xinjiang province of China. The proposed project takes the agricultural biomass resource as the main fuel, the project adopted one 12MW extraction condensing steam turbine and one 48t/h vibrate grate boiler and supply 79,200 MWh power to Northwest China Grid annually, which consumes about 110,000 tons renewable biomass residues such as cotton stalk and woody wastes. The proposed project would reduce the GHG emission by more than 62,774 tco 2 e each year. The project would supply job opportunities to local people mainly minority people and increase the income by purchase their wasted biomass resource. The Bachu power plant is a new built project, located 1km east of Selibuya town which situated 80km southeast of Bachu County. The land the project occupied was alkaline land. The project started construction on 24/05/2007 and started operating on 04/12/

3 SECTION C. Proof of project eligibility C.1. Scale of the Project [See Toolkit 1.2.a] Please tick where applicable: Project Type Large Small C.2. Host Country P.R.China 3

4 C.3. Project Type [See Toolkit 1.2.c and Toolkit Annex C] Please tick where applicable: Project type Yes No Does your project activity classify as a Renewable Energy project? Does your project activity classify as an End-use Energy Efficiency Improvement project? Please justify the eligibility of your project activity: The proposed project is a Greenfield biomass combustion power plant, which combust the renewable agricultural biomass residues such as cotton stalks and wood residues to generate power to national grid. The fuels of the power plant are all renewable biomass from the agricultural or industry waste. In the baseline, these residues are either open burnt or abandoned. Regarding to the non-renewable back- up fuel, its quantity is zero refer to Feasibility Study Report in validation process. The actual value will used to calculate the project emissions during the verification. The capacity of the power plant is 12 MW, which within the boundary of small scale project. Pre Announcement Yes No Was your project previously announced? The project hasn t made any announcement that the project could go without carbon revenue. 4

5 C.4. Greenhouse gas [See Toolkit 1.2.d] Greenhouse Gas Carbon dioxide Methane Nitrous oxide C.5. Project Registration Type [See Toolkit 1.2.f] Project Registration Type Regular Pre-feasibility assessment Retroactive projects (T.2.5.1) Preliminary evaluation (eg: Large Hydro or palm oil-related project) (T.2.5.2) Rejected by UNFCCC (T2.5.3) If Retroactive, please indicate Start Date of Construction 05/2007 5

6 SECTION D. Unique project identification D.1. GPS-coordinates of project location [See Toolkit 1.6] Latitude Longitude Coordinates 39 17' 15.01" N 77 49' 23.33" E Explain given coordinates It s the GPS coordinate of the proposed power plant site. D.2. Map 6

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8 SECTION E. Outcome stakeholder consultation process E.1. Assessment of stakeholder comments [See Toolkit Annex J] No negative comments received during stakeholder consultation process. It could be benefit from the proposed project in the following aspect: 1. Reduce the air pollution from biomass waste open fire; 2. Increase the social income by purchase the biomass waste; 3. Supply job opportunities for local people; 4. Improve the capacity building by supply training for their employees. E.2. Stakeholder Feedback Round Please describe report how the feedback round was organised, what the outcomes were and how you followed up on the feedback. The feedback round meeting was hold on 28/05/2012 in the project site. 34 stakeholders including workers, local inhibitions, the representatives of government, and the biomass suppliers were invited via poster, phone. The GS export, NDA and relevant NGO were invited by beforehand. The meeting introduced the GS and project for the participants; go through SDM and free discussion. All the participants filled the meeting evaluation table. No negative comments received during the meeting. The project has positive impact for environment, social income, capacity building and technology import 8

9 SECTION F. Outcome Sustainability assessment F.1. Do no harm Assessment [See Toolkit and Toolkit Annex H] Safeguarding principles Description of relevance to my project 1 Human rights The human rights and 2 Involved in complicit in involuntary resettlement. 3 Alteration or damage cultural heritage. 4 Respects the employees freedom of association and their right to collective bargaining and is not complicit in restrictions of these freedoms and rights. 5 Complicit in any form of forced or compulsory labour. freedom of employees are widely respected in the project. The habits of minority nationality such as Uygur people are well respected in the project. Chinese government owns the legislations of protect the rights of employee and human beings. No resettlement is caused by the project. No cultural heritage is close or impacted by the project. Employee s right and freedom to collective bargaining is well protected by laws. There are also labor unions of employees to guarantee these right and freedom in project and host country. Local government and project owner forbid any force or compulsory labor behaviors. 6 Child labour. There is no any child labour existing in the project. Child labour is forbidden as local legislation in China. Assessment of my project risks breaching it (low, medium, high) Low Low Low Low Low Low Mitigation measure Unnecessary Unnecessary Unnecessary Unnecessary Unnecessary Unnecessary 9

10 7 Discrimination based on gender, race, religion, sexual orientation or any other basis. The project supplies different job opportunities to the different genders, races. Low Unnecessary Discrimination isn t common in the local area and the project. 8 Safe and healthy work environment and is not complicit in exposing workers to unsafe or unhealthy work environments. The project and company has mature safe guidance for all the job positions during the operation. All the employees Low Unnecessary should be trained and pass the safety examination. The project equips the necessary instruments to protect the healthy and safety of the employees as the China labour laws 9 Precautionary approach in regard to environmental challenges and is not complicit in practices contrary to the precautionary principle. The project engages in the sustainable development of environment by recycle the biomass residues to replace Low Unnecessary coal-based power. As an environment- friendly project, it would reduce the air pollution from open burning of biomass residues. There is no any harmful emission and leakage during the operation process. 10 Complicit in significant conversion or degradation of critical natural habitats, including those that are (a) legally protected, (b) officially proposed for protection, (c) identified by authoritative sources for their high conservation value or (d) recognized as protected by traditional local communities. The project is located in the programming industry zoo of local government. No critical natural habitats were close to the project site and consequently being impacted by the project. The natural habitats impact Low Unnecessary was assessed before the project s approved as national regulation. 11 Involve and is not complicit in corruption. The financial behaviors of the project are strictly controlled Low Unnecessary 10

11 Additional relevant critical issues for my project type GOLD STANDARD PASSPORT by its mother company National Bio-Energy Co. Ltd., The project must follow the company financial rule and regulation of NBE. Description of relevance to my project Assessment of relevance to my project (low, medium, high) N/A N/A Low N/A Mitigation measure F.2. Sustainable Development matrix [See Toolkit and Toolkit Annex I] Insert table in section C3 from your Stakeholder Consultation report (Sustainable Development matrix). Indicator Gold Standard indicators of sustainab le develop ment Mitigatio n measure If relevant, copy mitigatio n measure from Do No Harm assessm ent, and include mitigatio n measure used to neutralis e a score of - Relevance to achieving MDG Check g/mdg and nitor.org Describe how your indicator is related to local MDG goals Chosen parameter and explanation Defined by project developer Air Improve Chosen Parameters: + Preliminary score Negative impact: score - in case negative impact is not fully mitigated, score 0 in case impact is planned to be fully mitigated No change in impact: score 0 Positive impact: score + 11

12 quality maternal health. Reduce child mortality. Ensure environmenta l sustainability Dust, SO 2 and NOx. Source: EIA page 31 and 32. Reduce smoke pollution from open burning of biomass residue. The emission of dust, SO 2 and NOx meets the emission standards. Chosen Parameters: ph, SS, BOD 5 and COD Cr. 0 Source: EIA page 33. Water quality and quantity Ensure environmenta l sustainability Project use underground water as water source. The domestic sewage is treated and recycled in the project site. Industry wastewater should be neutralized before released into industry park drainage system. Other wastewater would be released to drainage system. Soil condition Ensure environmenta l sustainability No pollution would be produced during the project operation. Cotton stalk returning to farmland is a necessary method to compensat the soil degradation in Xinjiang area. The stalk returning quantity is mainly depends on the water source and habit. In the proposed project site located in the southern Xinjiang where is lack of rainfall and snow melt water but flourished in herding, the cotton stalk is mainly used to feeding the sheep and cow rather than returning to field where stalk can't decompose 0 12

13 sufficient. And the cow and sheep mature is the better fertilizer than stalk. As the relevant study, the current returning quantity mainly root is enough for the soil compensation 1. Over returning of the stalk would cause negative impact to the plant 2 and would also cause nitrogen short and increase of disease and insect. For the project, the cotton is from the waste from the herding, the discarded stalk and some of the machine harvest which only cut the upper part of the stalk and leaving the rest return to the field which is enough for the soil compensation. Therefore, the usage of biomass for the proposed project will not impact other usages of biomass in Bachu. Chosen Parameters: Noise Level and Treatment of Solid Waste. 0 Other pollutants Improve maternal health. Reduce child mortality Source: EIA page 33, 34 and 35. Noise pollution could be largely reduced from the machine, equipment and factory design. Other solid waste such as biomass ash could be used for agriculture. Domestic garbage are collected and treated by government department. The 1 Zhengzhong, Lai Xianqi, Deng xiangdi, Dai Zhigang. Discussion about the Cotton Stalk Returning Technology of Xinjiang Cotton Planting Area[J]. Crop and Cultivation, 2000,02:51 2 Li Yanbin, Zhang Qin, Wan Chuanxing, Allelopathy and Chemical Constituents of Decomposing Products from Cotton Stalk[J]. Cotton Science,2009,21(6):

14 project plant trees and grass as regulation. Biodivers ity Ensure environmenta l sustainability: Reduce biodiversity loss, achieving, by 2012, a significant reduction in the rate of loss Source: EIA page 36. The project located in saline and alkaline land with no plants or animals living there before. 0 Chosen Parameters: Labour conditions, such as jobrelated health and safety, Amount of Safety and Health Training Courses + Quality of employm ent Improve worker s welfare Source: Management Manual of Bachu Biomass Power Plant The project supplied all the safe and health equipments to employees as the industry standards. All the workers must attend the safety training for several times in a year. There is free health examination for the employees each year. Chosen Parameters: Amount of the payment for purchasing the biomass. + Livelihoo d of the poor Eradicate extreme poverty and hunger Source: Sale Receipts of Biomass Increase the peasant s income by purchase their waste biomass residues. The biomass expense 14

15 is 21,251,028 RMB in Chosen Parameters: Amount of Electricity Generation. + Access to affordabl e and clean energy services Eradicate extreme poverty and hunger Source: FSR page 14 and 104 The project supply clean power to local gird compared with coal thermal power plant in baseline. As a rural area with weak power grid, the project improved the power supply and gird stability greatly, especially the electricity lack during spring plough term before the project. Human and institution al capacity Achieve universal primary education No evidence to prove that the ability of local community is significantly improved. 0 Chosen Parameters: Amount of Employee Payment + Quantitati ve employm ent and income generatio n Eradicate extreme poverty and hunger Source: Name List of Bachu Biomass Power Plant and Payrolls Selibuya town is an agricultural area without any industry. There is no other job opportunity for the youth. The project supplies 133 job positions, including 72 people from minority and 33 female workers. The total salaries of the employee are 4,616,057 RMB in The positions provided are permanent. Balance N/A No similar project could be 0 15

16 of payment s and investme nt encouraged in this area as the biomass resource quantity. Technolo gy transfer and technolo gical selfreliance N/A No evidence to prove technology transfer and technological selfreliance and improved. 0 Justification choices, data source and provision of references A justification paragraph and reference source is required for each indicator, regardless of score Air quality The existing open burning of biomass residues and low air pollution risk were discussed in EIA. Water quality and quantity Source EIA Wastewater treatment plan have been assessed and in EIA. Soil condition Source EIA No soil condition impact from the project as EIA. Other pollutants Source EIA Other pollution such as noise met the local requirement as EIA. Biodiversity Source EIA No impact to biodiversity as discussed in EIA. Quality of employment Source EIA Staff list and salary estimate Livelihood of the poor Source Project record All the biomass residues are purchased from surrounding area, which raise the income of the peasants, whose average income have been in low level. The biomass purchase expense of the project was more than 20 million RMB in

17 Access to affordable and clean energy services Source Project record The project would upload the renewable Power to grid, which could be proved by power receipts. Human and institutional capacity Quantitative employment and income generation Source Power receipt to grid. No evidence to prove that the ability of local community is significantly improved. The project supplied 133 job positions to society and increases more than 4 million RMB income to the employees. Balance of payments and investment Technology transfer and technological self-reliance Source Project record No evidence to prove that the balance of payments and investment are improved. No evidence to prove technology transfer and technological self-reliance are improved. SECTION G. Sustainability Monitoring Plan [See Toolkit and Toolkit Annex I] Copy Table for each indicator No Indicator Mitigation measure Repeat for each parameter 1 Air quality Chosen parameter Dust, SO 2 and NOx concentration from the boiler. Current situation of parameter The emission of dust, SO 2 and NOx meets the emission standards. Estimation of baseline situation of parameter Future target for parameter Way of monitoring How When By who Open burning of biomass residue The emission of dust, SO 2 and NOx meets the emission standards. Monitor the Dust, NOx and SO2 concentration from the boiler. Annually Employee who is responsible for the Safety, Health and Environment and Local EPA No 2 17

18 Indicator Mitigation measure Repeat for each parameter Chosen parameter Quality of employment Labour conditions, such as job-related health and safety, Amount of Safety and Health Training Courses Current situation of parameter Estimation of baseline situation of parameter Future target for parameter Way of monitoring How When By who The project supplies all the safe and health equipments to employees as the industry standards. All the workers attend the safety training for several times in a year. There is free health examination for the employees each year. There was no certain safe and health considerations for the employee before the implementation of the proposed project. The project supplied all the safe and health equipments to employees as the industry standards. All the workers must attend the safety training for several times in a year. There is free health examination for the employees each year. Management Manual of Bachu Biomass Power Plant and training activity records Annually Employee who is responsible for the Safety, Health and Environment No 3 Indicator Livelihood of the poor Mitigation measure Repeat for each parameter Chosen parameter Amount of the payment for purchasing the biomass. Current situation of parameter The biomass expense is 21,251,028 RMB in 2010 Estimation of baseline situation Peasant didn t earn any money from the biomass trade/ of parameter Future target for parameter Way of monitoring How When By who Increase the peasant s income by purchase their waste biomass residues compare to the baseline situation. Sale Receipts of Biomass Annually Employee who is responsible for the purchase of biomass. No 4 18

19 Indicator Mitigation measure Repeat for each parameter Chosen parameter Current situation of parameter Estimation of baseline situation of parameter Future target for parameter Way of monitoring How When By who Access to affordable and clean energy services Annually Quantity of the export power Project provides electricity from the biomass resource continuously No electricity from the biomass resource supplied to the local grid Project provides electricity from the biomass resource continuously Electricity Sales Receipts Constant Accountant. No Indicator Mitigation measure Repeat for each parameter Chosen parameter 5 Quantitative employment and income generation Amount of Employee Payment Current situation of parameter The project supplies 133 job positions, including 72 people from minority and 33 female workers. The total salaries of the employee are 4,616,057 RMB in Estimation of baseline situation of parameter Future target for parameter Way of monitoring How Selibuya town is an agricultural area without any industry. There is no other job opportunity for the youth. The project supplies permanent job positions and payments for the locals, including minority and female workers. Name List of Bachu Biomass Power Plant and Payrolls When By who Annually Accountant and Human Resource Department of Bachu Biomass Power Plant No Indicator Mitigation measure Repeat for each parameter Chosen parameter Current situation of parameter Estimation of baseline situation of parameter 6 Water Quality and Quantity ph, SS, BOD 5 and COD Cr. ph, SS, BOD 5 and COD Cr meet the required standard from EIA report. 0 19

20 Future target for parameter Way of monitoring GOLD STANDARD PASSPORT How When By who ph, SS, BOD 5 and COD Cr meet the required standard from EIA report. Monitor ph, SS, BOD 5 and COD Cr Annually Employee who is responsible for the Safety, Health and Environment and Local EPA Additional remarks monitoring N/A SECTION H. Additionality and conservativeness This section is only applicable if the section on additionality and/or your choice of baseline does not follow Gold Standard guidance H.1. Additionality N/A 20

21 H.2. Conservativeness N/A 21

22 ANNEX 1 ODA declaration 22

23 ANNEX 2 SFR content 1. Invited stakeholder list of the stakeholder meeting Category code Organisation (if relevant) Name of invitee Way of invitation A Project employee See 3 below Poster advertisement and oral notice A Local inhibition See 3 below Poster advertisement and oral notice A Biomass See 3 below Phone suppliers B Congress Aisikaer Phone Chairman of the Selibuya Town C NDRC qhs@ndrc.gov.cn D WWF Xi an Wan hui D Xinjiang xjhscsjj@163.com Redstone Fund E GS China Leon Wang F REEEP info@reeep.org F Mercycorps dmcintosh@uk.mercy corps.org F helio-international helio@heliointernational.org F PCD info@pcd.org.hk 2. Copy of invitation 23

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25 3. List of the stakeholder meeting attendees 1

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27 4. Non-technical summary GOLD STANDARD PASSPORT 1

28 5. LSC meeting result summary GOLD STANDARD PASSPORT The meeting participants believe the proposed project has the following advantages: 1) Increase the income of the inhibitions by purchase biomass waste; 2) Supply job for local young people; 3) Reduce the air pollution; 4) Improve the local grid and power supply condition. No negative comments received during the meeting. 2