Gold Standard Passport CONTENTS

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1 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

2 SECTION A. Project Title Antai Group Waste Gas Recovery for Power Generation Project Version: 2.1 Date: May 20, 2010 SECTION B. Project description Antai Group Co., Ltd. is a large manufacturer of iron, steel, and steel products headquartered in Shanxi Province of China. The Project Activity is a waste coal gas recovery and utilization for power generation project developed by Antai Group Co., Ltd. The objective of the project is to fully recover and utilize the waste coal gas for electricity and steam cogeneration and to reduce fossil fuel-based energy consumption and decrease air pollution. The waste gas comes primarily from the facility s blast furnaces, with some additional surplus gas from steel converters and coke ovens. The project includes installation of 2 25MW extracted-condensing steam turbine units, 4 75t/h medium-temperature and medium-pressure gas-fired boilers and relevant auxiliary equipments. The project s total installed capacity will be 50MW. The annual power generation is expected to be 300 GWh and net power supply is 264GWh and the annual steam generation is estimated as TJ. The electricity and the steam generated by the proposed project would be totally consumed in the production process of Antai Group Company. In the absence of the project, a large amount of combustible waste gas generated by Antai iron & steel and machine coke production is flared and released to the atmosphere. In the same time, all electricity demand by AGC is imported from the North China Power Grid (NCPG). Therefore, the power generated by the project activity would displace electricity imported from the North China Power Grid, which is dominated by fossil fuel-fired power plants, and reduce an estimated 311,196 tons of CO 2 e per year. Besides the GHG emission reductions, the Project would contribute to local and national sustainable development through: Reduction of air pollutants of coal fired power plants such as SO 2 ; Reduction of fossil fuel-based energy consumption, thus improving energy efficiency; Reduction of water consumption by using air cooling generator units, conforming to national energy saving policies; Mitigation of power demand load of local grid; Creation of about 154 employment opportunities for the local community; Promotion of implementation of similar activities in the region. version 2.0 July

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 People s Republic of China 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 specify your project type: Scope 01 Energy industries Scope 04 Manufacturing industries version 2.0 July

4 Pre Announcement Yes No Was your project previously announced? Antai Group Co., Ltd. declare that their waste gas recovery for power generation project was not previously announced to be going ahead without revenue from carbon credits. 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 Retro-active projects (T.2.5.1) Preliminary evaluation (T.2.5.2) Rejected by UNFCCC (T2.5.3) SECTION D. Unique project identification D.1. GPS-coordinates of project location version 2.0 July

5 [See Toolkit 1.6] Latitude Longitude Coordinates N E Explain given coordinates version 2.0 July

6 D.2. Map Project Location version 2.0 July

7 SECTION E. Outcome stakeholder consultation process E.1. Assessment of stakeholder comments Stakeholder Comment Assessment Response to comment The project has been in operation for two years, how many jobs did it provide? The boiler s operation requires water consumption, which might thus strain our water resources. How do you address this problem? The question refers to the social contribution of the project. Many job opportunities are benefitting local residents. The question relates to the living environment nearby and around the project site, as well as to natural resources management. Also see the Stakeholder Consultation (SC) report. 154 employees were hired for the operation of the project, including managers, technical employees and normal workers. All of them could receive technical training of advanced cogeneration technology and some managers were trained to new cogeneration management as well. This should not be of concern to local residents, since they will actually benefit from the water savings allowed by the project activity: our generator units are equipped with direct aircooling equipment, replacing a traditional water cooling system, and which allows to save 60~70% of the water compared with a power plant of the same capacity. It means that after the implementation of the project, the water resource pressure will not increase. 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. version 2.0 July

8 The participants of the stakeholder consultation were informed of the stakeholder feedback round through phone calls, which would be organised in the form of a comment period of two months. The documentation has been made publicly available on the following webpage: and contact details were provided on the webpage. For people without access to internet, hard copies of contact details were provided and documents were accessible in the plant. DNA was also notified for this project through and copy has been provided in Annex 2. Information on Local NOG was not available after the search 1, therefore cannot be invited. By the end of the period, no comment has been received. SECTION F. Outcome Sustainability assessment F.1. Do no harm Assessment 1 NGO&hl=en&safe=off&start=10&sa=N version 2.0 July

9 [See Toolkit and Toolkit Annex H] Safeguarding Principles Human Rights The project respects internationally proclaimed human rights including dignity, cultural property and uniqueness of indigenous people. The project is not complicit in Human Rights abuses. The project does not involve and is not complicit in involuntary resettlement The project does not involve and is not complicit in the alteration, damage or removal of any critical cultural heritage. Labour Standards The project respects the employees freedom of association and their right to collective bargaining and is not complicit in restrictions of these freedoms and rights The project does not involve and is not complicit in any form of forced or compulsory labour. The project does not employ and is not complicit in any form of child labour The project does not Description of relevance to my project The Constitution of the People's Republic of China 1 regulates that the nation respect and protect human rights including dignity, cultural property and uniqueness of indigenous people. Antai is an enterprise which completely obey the nation and local laws. Furthermore, there is no complain and accusation regarding human right happens in Antai so far. The project activity was built inside the iron & steel factory; there is no need of land from local residents. Hence, resettlement cannot happen for project activity There is no critical cultural heritage located in project site, therefore alteration, damage or removal of any critical cultural heritage don t exist Assessment of my project risks breaching it (low/mediu m/high) Low Low Low Mitigation measure N.A. N.A. N.A. Labour Law of the People's Low N.A. Republic of China 2 and Law of the people s republic of China of employment contract 3 respect the right of freedom of association and collective bargaining to employees; these laws also Low N.A. forbid any form of forced or compulsory labour, child labour and discrimination based on ethnic group, gender, race and religion. Low N.A. Antai completely follow these two laws and most of the equipments of this project are automatic, the Low N.A. version 2.0 July

10 7 8 9 involve and is not complicit in any form of discrimination based on gender, race, religion, sexual orientation or any other basis. The project provides workers with a safe and healthy work environment and is not complicit in exposing workers to unsafe or unhealthy work environments Environmental Protection The project takes a precautionary approach in regard to environmental challenges and is not complicit in practices contrary to the precautionary principle. This principle can be defined as: When an activity raises threats of harm to human health or the environment, precautionary measures should be taken even if some cause and effect relationships are not fully established scientifically. The project does not involve and is not complicit in significant conversion or degradation of critical natural habitats, including those that are (a) legally protected, (b) 10 officially proposed for protection, (c) identified by authoritative sources for their high conservation value or (d) recognised as protected by traditional local communities Anti-Corruption 11 The project does not involve and is not complicit in corruption work environment is safe and healthy. The project activity was designed as a environment friendly project, the project owner installed advanced facilities to reduce the emission of air pollutants which would be more efficient than the scenario without project activity; waster water is treated and recycled internally; no waster solid is generated; and noise is reduced by the green plant. The project locates inside the iron & steel industry area, which does not involve any natural habitats. This project complies with the Criminal Law and predecessor regulations, which includes Anti- Low Low Low Low Low N.A. N.A. The project activity was designed as a environment friendly project, the project owner installed advanced facilities to reduce the emission of air pollutants which would be more efficient than the scenario without project activity; waste water is treated and recycled internally; no waster solid is generated; and noise is reduced by the green plant. N.A. N.A. version 2.0 July

11 corruption. Additional relevant critical issues for my project type Description of relevance to my project Assessment of relevance to my project (flow/mediu m/high) Mitigation measure version 2.0 July

12 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 Mitigation measure Relevance to achieving MDG Chosen parameter and explanation Final score Gold Standard indicators of sustainable development. Air quality during construction If relevant copy mitigation measure from "do no harm" table, or include mitigation measure used to neutralise a score of Project owner will spray water to control the dust pollution in order not to disturb the neighbourhood Check and Describe how your indicator is related to local MDG goals Defined by project developer Parameter: Dust during construction (dust shall not disturb neighbourhood) The nearest village to the plant is 300 meters away, with proper dust control measures the impact is neglectable. Therefore, we score it neutral. 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 + 0 version 2.0 July

13 Air quality During operation Water quality and quantity Soil condition In Shanxi province, most of the power and heat are generated by burning coal, it would generate big amount of slag. The usage of waste gas to cogenerate power and heat could totally avoid the generation of slag. The project could promote environment in local area. Parameter: Dust, SO2 and NOx emission. Waste gas used in the project is cleaned (by removing the dust and sulphur) before combustion and exhausted flue gas will be cleaned again and then released through a 100m high chimney. Without project activity, the waste gas is only cleaned once and then flared and emitted to the atmosphere. Therefore, with project activity, quantities of dust, SO2 and NOx contained in the flue gas will be lesser than in the situation without project activity. This will definitely improve the local air quality; we thus score this indicator positively. Parameter: Water consumption (in m3) and quantity of wastewater discharge (in m3). Compared with the same capacity of power plant, the generator units of the project activity incorporate direct air cooling equipment, which could save water by 60~70%. In addition, all the discharge water is collected and treated together in the recovery pool of the plant, living sewage is first treated in the cesspool and then be drained into the waste water system of the company, finally be recycled. Therefore, because there is no significant impact on the water quantity and quality, we score this indicator neutral. Parameter: Coal consumption in plants with the same power capacity In absence of the project, Antai uses the electricity from the power grid. In North China Power Grid, most of the electricity is generated by coal; in this process waste solid is generated. But a waste gas recovery based power version 2.0 July

14 Other pollutants Biodiversity Quality of employment Firstly, the PO adopted two approaches to effectively reduce the noise: one is from the source of noise, facilities of low noise were installed and measures of noise reduction were implemented; the other one is to control the spread of noise, green plants were planted around the factory. Finally, no light pollutant generated in project activity. China s MDGs recognize that quality of employment in science technology and use of advanced technology to increase productivity efficiency should be improved, as well as work conditions for the employees. station would not have any significant solid waste. This indicator has a positive impact but due to the capacity of project activity is not a very big size, we score it neutral as the impact is only minor. Parameter: Noise levels Firstly, the PO adopted two approaches to effectively reduce the noise: one is from the source of noise, facilities of low noise were installed and measures of noise reduction were implemented; the other one is to control the spread of noise, green plants were planted around the factory. Finally, no light pollutant generated in project activity. Therefore, there is no significant difference compared with baseline scenario for other pollutants. Parameter: Number of affected plants and animals As compared to the baseline, no significant change in biodiversity is expected since the project only takes place within the plant boundary. Parameter: HR data and relevant certificates. Most of the operations of WHR power plant are automatic, therefore, project managers and operators in the plant will work in a comfortable procedure room, considering health and safety, and the project will also provide long-term jobs. Although the quality of employment has improved, the impact was not considered substantial and thus the indicator was scored with version 2.0 July

15 Livelihood of the poor Access to affordable and clean energy services Human and institutional capacity Quantitative employment and income generation Balance of payments and investment Technology transfer and technological Energy generation in Shanxi province is extremely depending on fossil fuel, there is only a small percentage of clean energy, such as hydro power plants, is very limited (the proportion of clean energy is 0%, 0.81%, 0.75%, and 0.51% for 2003, 2004, 2005, and 2006, respectively). This project can encourage local enterprises to adopt clean energy which is in line with the MDGs of China. MDG in China targets to increase the education percentage and improve education for more women. This project are in compliance with above targets. Supply enough work positions can relieve the gap between the poor and wealthy. The project activity generates employment opportunities during both the project s construction and operation period. This will contribute to sustainable development in local area. Parameter: Access to better health care services As compared with the baseline, no significant change is expected. Parameters: Traditional fuel for energy generation and Waste gas used for power generation or electricity supply by waste gas recovery Compared with the baseline, electricity supplied by this project is usage of affordable and clean energy, not of traditional fossil fuel. Parameters: Employees academic or technical title and positions for women There is less dependence on heavy male labour force, the project provides more positions for women compared with baseline which is a normal power plant. This indicator has a positive impact, we score it neutral as the impact is only very minor Parameter: HR data (number of jobs, income of the employees) The project has created about 154 employment opportunities for the local + community, which all received incomes from the project. Compared with the baseline, this indicator has a significant impact and is thus scored positively. Parameter: Balance of payments Compared with baseline scenario, there is no 0 significant difference in terms of balance of payments and investment. Parameter: Number of workshops organized version 2.0 July

16 self-reliance Justification of determination of consolidated score Compared with baseline scenario, there is no significant difference in terms of Technology Transfer. The difference between own SD matrix and blind SD matrix are air quality, water quality, soil condition and Human and institutional capacity. In consolidated SD matrix, we keep it the same with own SD matrix. The reason is that for air quality, local stakeholders think that without the project activity, the waste gas will be cleaned and then be flared and emitted to atmosphere; and with project activity the waste gas would also be cleaned and then be burned in boiler, finally emitted into atmosphere, which is the same as before, hence the indicator is neutral; however, in real situation, the waste gas will be cleaned twice which are at the inlet and outlet of the boiler, therefore, in project activity, air pollutants such as dust and SO2 will be less than before, which means the indicator should be positive. Indicators of water quality, soil condition and Human and institutional capacity are positive in blind SD matrix, we also think these indicators have positive impact, but the scope of positive impact is minor, therefore, we score it neutral in consolidated score. Justification choices, data source and provision of references Air quality Water quality and quantity Soil condition In table of EIA page 138, before project activity, the dust and sulphur concentration are 10mg/m3 and 15mg/m3 respectively, therefore the concentration of SO2 in the emitted gas after flaring is 30mg/m3 (Molecular weight of SO2 is 64 which is twice than S 32); in table of EIA page 138, after cleaning the final emission of dust and SO2 are 4.05mg/m3 and 12.15mg/m3 respectively which are lower than10mg/m3 and 30mg/m3. This can prove that with the project activity, the emission of air pollutant is less than before Water quality: in EIA 139, it states that all the wastewater in project activity won t be discharged and will be treated and recycle internally; in table of EIA 139, it could be concluded that the quantity if wastewater discharge is 0. Water quantity: FSR page 41 mentions that project activity utilizes air cooling system which can save 70% water consumption. As described in EIA page 139 and 141, the project activity would not have any significant waste solid generation EIA page 141 and FSR page 42 both mentioned the measures of noise reduction. Other pollutants Biodiversity EIA page 232 Quality of FSR 32~35 mentions that most of the operations of power plant are automatic, this will employment reduce heavy physical works for the employees; Livelihood of The project will generate additional income to people involved. But compared to the local the poor population, it is a small amount. So there is no significant change expected. Access to China power website News: affordable and clean From the news provided by above link, the rate of limited power supply in Shanxi province energy is 87%, only 12 days of three months can be supplied by power for full day. services Human and institutional capacity Quantitative employment and income generation Balance of payments and investment Technology transfer and technological self-reliance Training plan from project owner. FSR states that 154 employees will be employed and from the data provided by the Human resource department the actual employee number is 180. Equipments purchase agreement. From the Equipments purchase agreement we can see all the main facilities of project activity were purchase from the domestic manufacturers. version 2.0 July

17 SECTION G. Sustainability Monitoring Plan [See Toolkit and Toolkit Annex I] Copy Table for each indicator No 1 Indicator Air quality during operation Mitigation measure N/A Repeat for each parameter Chosen parameter Emission Concentration of dust and SO 2 contained in the flue gas Current situation of parameter Dust 10mg/m 3 ; SO2 30 mg/m 3 (EIA page 138 Table 4-5-9) Future target for parameter Less than Dust 10 mg/m 3 ; SO2 30 mg/m 3 Way of monitoring How Local EPA or third party will monitor responsible parameters and issue report When Once per three months By who Local EPA or third party Comment Dust was also a concern by the Stakeholders during the SC and is herewith monitored. Chosen parameter Dust during construction (dust shall not disturb neighbourhood) Current situation of parameter N/a Future target for parameter N/a Way of monitoring How Local EPA or third party will monitor responsible parameters and issue report When Construction period By who EPA or third party No 2 Indicator Noise Mitigation measure Repeat for each parameter Chosen parameter Current situation of parameter Future target for parameter Way of monitoring How When By who Install noise reduction equipment and protection measures for personnel Implementation of noise reduction equipment for generators and protection measures for personnel N/a N/a Project owner will check the installation and protection measures. Interviews will performed as well. Annually Project owner No 3 Indicator Access to affordable and clean energy services Mitigation measure N/A Repeat for each parameter Chosen parameter Net electricity generation by project activity Current situation of parameter 0 Future target for parameter 264,000MWh per year (FSR page 8) version 2.0 July

18 Way of monitoring How When By who Project owner will monitor the net electricity generation according to the electricity generation meter. Continuous Project owner No 4 Indicator Quantitative employment and income generation Mitigation measure N/A Repeat for each parameter Chosen parameter Number of full time jobs Current situation of parameter 0 Future target for parameter 154 people (FSR 46~47) Way of monitoring How Accounting report by human resource office of the plant. The report shall detail number of people employed and income level of employees. When Once a year By who Project owner No 5 Indicator Water consumption Mitigation measure N/A Repeat for each parameter Chosen parameter Access to water for villagers Current situation of parameter n/a Future target for parameter n/a Way of monitoring How Interview villagers When Annually By who Project owner Comment This was a concern by the stakeholders during the SC and shall herewith be monitored in future. No 6 Indicator The status of water recycling Mitigation measure Repeat for each parameter Chosen parameter Construction status of wastewater treatment plant. Recycling of industrial wastewater. Current situation of parameter Domestic sewage is discharged into municipal sewage system. Other industrial water is recycled. Future target for parameter A wastewater treatment plant will be constructed to ensure the recycling of domestic water. Cooling water, chemical acid-alkali, recycling wastewater will be recycled as always. Way of monitoring How Checking of wastewater recycling system When Annually By who Project owner Additional remarks monitoring version 2.0 July

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20 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 [See PDD section B.5] H.2. Conservativeness version 2.0 July

21 ANNEX 1 ODA declarations Project financing for this project activity will not use Official Development Assistance (ODA) Funds as defined in the Gold Standard Manual for Project Developers. There are no loans or grants being provided by International Finance Institutions, which include ODA. version 2.0 July

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23 ANNEX 2 Notification Letter to DNA version 2.0 July

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