Deepak Spinners Limited

“DSL Biomass Based Power Project at Pagara”

Project Design Document

 Appendix A1 to the simplified modalities and procedures for small-scale CDM project
activities

CLEAN DEVELOPMENT MECHANISM

SIMPLIFIED PROJECT DESIGN DOCUMENT
FOR SMALL SCALE PROJECT ACTIVITIES (SSC-PDD)
Version 01 (21 January, 2003)

Introductory Note

1. This document contains the clean development mechanism project design document for
small-scale project activities (SSC-PDD). It elaborates on the outline of information in
appendix B “Project Design Document” to the CDM modalities and procedures (annex to
decision 17/CP.7 contained in document FCCC/CP/2001/13/Add.2) and reflects the simplified
modalities and procedures (herewith referred as simplified M&P) for small-scale CDM project
activities (annex II to decision 21/CP.8 contained in document FCCC/CP/2002/7/Add.3).

2. The SSC-PDD can be obtained electronically through the UNFCCC CDM web site
(http://unfccc.int/cdm/ssc.htm), by e-mail (cdm-info@unfccc.int) or in print from the
UNFCCC secretariat (Fax: +49-228-8151999).

3. Explanations for project participants are in italicized font (e.g. explanation).

4. The Executive Board may revise the SSC-PDD if necessary. Revisions shall not affect
small-scale CDM project activities validated prior to the date at which a revised version of the
SSC-PDD enters into effect. Versions of the SSC-PDD shall be consecutively numbered and
dated. The SSC-PDD will be available on the UNFCCC CDM web site in all six official
languages of the United Nations.

5. In accordance with the CDM modalities and procedures, the working language of the
Board is English. The completed SSC-PDD shall therefore be submitted to the Executive
Board in English.

6. Small-scale activities submitted as a bundle, in accordance with paragraphs 9 (a) and

19 of the simplified M&P for small-scale CDM project activities, may complete a single
SSC-PDD provided that information regarding A.3 (Project participants) and A.4.1 (Location
of the project activity) is completed for each project activity and that an overall monitoring
plan is provided in section D.

7. A small-scale project activity with different components eligible to be proposed2 as a

small-scale CDM project activity may submit one SSC-PDD, provided that information
regarding subsections A.4.2 (Type and category(ies) and technology of project activity), and

1
This appendix has been developed in accordance with the simplified modalities and procedures
for small-scale CDM project activities (contained in annex II to decision 21/CP.8, see document
FCCC/CP/2002/7/Add.3) and it constitutes appendix A to that document. For the full text of the
annex II to decision 21/CP.8 please see http://unfccc.int/cdm/ssc.htm).
2
In paragraph 7 of simplified M&P for small-scale CDM project activities, on clarifications by the
Executive Board on small-scale CDM project activities, the Board agreed that in a project activity
with more than one component that will benefit from simplified CDM modalities and procedures,
each component shall meet the threshold criterion of each applicable type, e.g. for a project with both
a renewable energy and an energy efficiency component, the renewable energy component shall meet
the criterion for “renewable energy” and the energy efficiency component that for “energy efficiency”.
A.4.3 (brief statement on how anthropogenic emissions of greenhouse gases (GHGs) by
sources are to be reduced by the proposed CDM project activity) and sections B (Baseline
methodology), D (Monitoring methodology and plan) and E (Calculation of GHG emission
reductions by sources) is provided separately for each of the components of the project
activity.

8. If the project activity does not fit any of the project categories in appendix B of the
simplified M&P for small-scale CDM project activities, project proponents may propose
additional project categories for consideration by the Executive Board, in accordance to
paragraphs 15 and 16 of the simplified M&P for small-scale CDM project activities. The
project design document should, however, only be submitted to the Executive Board for
consideration after it has amended appendix B as necessary.

9. A glossary of terms may be found on the UNFCCC CDM web site or from the
UNFCCC secretariat by e-mail (cdm-info@unfccc.int) or in print (Fax: +49-228-8151999).
 CONTENTS

A. General description of project activity

B. Baseline methodology

C. Duration of the project activity / Crediting period

D. Monitoring methodology and plan

E. Calculation of GHG emission reductions by sources

F. Environmental impacts

G. Stakeholders comments

Annexes

Annex 1: Information on participants in the project activity

Annex 2: Information regarding public funding

Appendix

Appendix A: Abbreviations

Appendix B: Reference List

Enclosures

Enclosure: Calculation Sheet done in MS Excel

A. General description of project activity
A.1 Title of the project activity:
DSL Biomass based Power Project at Pagara.

A.2 Description of the project activity:

Purpose

The purpose of the project activity is to utilize surplus biomass available in the region for effective
generation of electricity for captive use. The project activity will help in reducing the Green House
Gases (GHG) emitted during use of diesel in the diesel generator (DG) sets and conserve the natural
resource.

Salient features of the project

The promoter of the project activity, Deepak Spinners Limited (DSL) was incorporated in 1982 and
manufactures synthetic blended yarns, made of polyester, viscose, acrylic. The project activity, which
is a ‘carbon neutral fuel’ based power plant, generates electricity to meet DSL’s captive electricity
requirement thereby displacing an equivalent amount of electricity DSL would have consumed, which
would be generated by the existing DG sets. The major equipment of the project activity comprise a
new 3.0 MW multistage, impulse and condensing type turbine and one 14 tons per hour (TPH)
Atmospheric Fluidized Bed Combustion (AFBC) boiler.

Availability of biomass

The primary fuel for the project activity is rice husk/husk dust and secondary biomass fuel, such as,
soya, bagasse, gram, wheat etc. may be used as available. Only in case of exigencies of biomass fuel
scarcity, DSL proposes to use coal as fuel. The total requirement of biomass has been estimated to be
25,200 ton/annum at 100% capacity utilisation for the power project.
The primary fuel is transported from Ujjain, Gwalior etc. (up to 200 km) and secondary biomass will
be transported from Guna, Ashok Nagar, Isagarh and Bamori (around 25-70 km). The biomass is
supplied by contractors through trucks and tractors/trolleys.
The total surplus biomass after discounting for various end-uses, available within a radius of 25-30
km is estimated to be 1,00,000 MT/annum and within 60-70 km radius a further amount of around
80,500 MT/annum. This shows abundant availability of biomass, and no shortage of biomass is
envisaged in the region.
Project activity’s contribution to sustainable development

The project activity is a renewable energy power project for clean power generation for captive use.
This generation of power from biomass sources will substitute the power generated using diesel, a
conventional fossil fuel.
Since this project activity utilizes renewable energy source, it will positively contribute towards the
reduction in (demand) use of finite natural resource, diesel, minimizing depletion or else increasing its
availability to other important processes.
Government of India has stipulated the following indicators for sustainable development in the
interim approval guidelines3 for CDM projects.
· Social well being
· Economic well being
· Environmental well being
· Technological well being
This project activity has excellent contribution towards sustainable development and addresses the
key issues:
Social well being:
· Since, the project is in a rural area, it would lead to the development of the region.
· Since, the biomass resources are to be collected and transported to the plant site from the
fields, opportunities are being generated for the rural people to collect and transport biomass.
This will result in the enhanced employment of the rural people.
Economical well being:
· The project activity generates employment in the local area. The project creates a business
opportunity for local stakeholders such as bankers, consultants, suppliers, manufacturers,
contractors etc.
· The main resources for power generation are biomass fuels such as husk dust, soya, bagasse,
gram, etc. Crop residues are collected from the farmers and brought to the project, thus
generating an additional revenue on account of supply of these crop residues to the project,
which otherwise would have remained under-utilized . In other words, the plant is
generating commercial value to crop residues enabling the farmers to get better price out of
their produce augmenting their income. The above benefits due to project activity ensure that
the project would contribute to the economic well being in the region.
Environmental well being

3
Ministry of Environment and Forest web site : http://envfor.nic.in:80/divisions/ccd/cdm_iac.html
 · Since, the project uses only biomass (carbon neutral fuel) materials for power generation; it
does not lead to GHG emissions. It also eliminates the emission of other pollutants like
carbon monoxide and soot into atmosphere.
· The project activity is a step towards environmental sustainability by saving exploitation
and depletion of a natural, finite and non-renewable resource like diesel.
Technological well being
· The technology selected for the power project is a modern and energy efficient one using a
steam turbo generator with matching boiler capable of firing multiple fuels.
In view of the above arguments, the project participant considers that the project activity contributes
to the sustainable development.

A.3. Project participants

· Project promoter and official contact for project activity –Deepak Spinners Limited, Pagara,
Guna, Madhya Pradesh, India

A.4 Technical description of the project activity:

A.4.1 Location of the project activity:

A.4.1.1 Host country Party: India
A.4.1.2 Region/State/Province etc.: Madhya Pradesh
A.4.1.3 City/Town/Community etc: Guna
A.4.1.4 Detailed description of the physical location, including information allowing the unique
identification of this project activity:

The power project has been implemented at company’s manufacturing facility in village Pagara,
Guna, Madhya Pradesh. The power plant has been constructed on 16,188 m2 of land, which is part of
the total plant area of 182,115 m2. The location also has the abundant availability of skilled and
semi-skilled labour and is well connected by railway and Guna station is about 13 km. away from the
project activity site. The nearest airport i.e. Gwalior is around 170 km. from Guna. Guna-Bhopal
highway is within close proximity to the plant.
The geographical location with rail/road connectivity of Guna is detailed in the maps below.
Maps not to scale
A.4.2 Type and category and technology of project activity

Main Category:
Type I - Renewable energy power project
Sub Category:
D–Renewable electricity generation for a grid

The project activity is a biomass based power project. The installed/rated capacity of the turbine is
only 3 MW, which is less than the limit of 15 MW for renewable energy project activities to qualify
under Type I project activities.

As per the provisions of Appendix B of Simplified Modalities and Procedures for Small Scale CDM
Project Activities, (Version 03: 30 June 2004) Type ID “comprises renewables, such as
photovoltaics, hydro, tidal/wave, wind, geothermal, and biomass, that supply electricity to an
electricity distribution system that is or would have been supplied by at least one fossil fuel or non-
renewable biomass fired generating unit”.

Prior to the project activity the power requirement of DSL was met by supplies from four DG sets (3
working and 1 standby) of 1000 kW capacity each. These DG sets were owned and operated by DSL
and were part of an isolated distribution system (mini-grid). DSL has set up the biomass based power
plant that supplies the electricity to DSL’s manufacturing facility through this isolated distribution
system that was supplied electricity from DG sets (fossil fuel) in the pre-project scenario.

Technology employed for the project activity

Project is a biomass based power plant with high-pressure steam turbine configuration. The purpose
of the project essentially is to utilize available biomass in the region effectively for generation of
clean electricity.
The plant has one 14 TPH atmospheric fluidized bed combustion (AFBC) boiler with steam
parameters of 64 kg/cm2 and 485 oC at stop valve outlet. The 3 MW steam turbine is a multistage,
impulse and condensing type turbine. Inlet steam parameters for the turbine are 63 kg/cm2 and 485
o
C. All the necessary auxiliary facilities of the project activity including fuel handling, ash handling,
water pretreatment system, cooling tower, compressed air system, control and instrumentation
system, fire fighting system etc. are provided for the project activity. The biomass is fired at
approximately 3.2 TPH in the boiler. A belt conveyor has been provided for transporting the biomass
from storage yard to the boiler. Biomass is fed to the boiler through a discharge chute, enabling the
smooth discharge of biomass to the boiler. The plant has approximately three-days storage capacity
for biomass.
No technology transfer is involved to host country because technology is available within India from
reputed manufacturers

Ultimate analysis of rice husk used as fuel4

Parameter Content (% w/w)

Carbon 36.70
Hydrogen 3.00

Oxygen 31.02

Nitrogen 0.40

Sulphur 0.08

Moisture 10.00

Ash 18.80

Gross Calorific Value 3150 (kcal/kg)

A.4.3 Brief statement on how anthropogenic emissions of greenhouse gases (GHGs) by

sources are to be reduced by the CDM project activity:

The project activity reduces anthropogenic GHG emissions by displacing fossil fuel (diesel) based
electricity generation with environmentally sustainable resource, biomass (carbon neutral), which is
renewable. The project activity leads to GHG on-site emissions in the form of CO2 from combustion
of biomass. However the CO2 released is not considered to be net emission. The biomass burnt is
generally replaced by re-growth over the subsequent years. An equivalent amount of carbon is
removed from the atmosphere during this re-growth, to offset the total carbon released from
combustion. Therefore the long term net emissions of CO2 from burning of biomass are considered to
be zero5. Since, the biomass contains only negligible quantities of other elements like Nitrogen,
Sulphur etc. release of other GHGs are considered as negligible.
Transmission and distribution losses are not considered since the project supplies power to the
manufacturing facility which is located at a short distance.

4
As per the analysis report available with DSL
5
pg 4.73, Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories: Reference Manual
A fossil fuel based electrical energy equivalent of 217.8 million kWh for a period of 10 years would
be replaced by the electricity from the 3.0 MW non-conventional renewable resource (biomass) based
power plant. The CO2 emission reduction from the project activity amounts to 174,240 tons in a
period of 10 years.
In the absence of the project activity, the same energy load would have been taken up by DG sets and
emission of CO2 would have occurred due to combustion of carbon intensive fuel (diesel).

From the above we can conclude that the project activity results in a net reduction of GHG
emissions in the form of CO2 emission reduction.

A.4.4 Public funding of the project activity

No public funding as part of project financing from parties included in Annex I is involved in the
project activity.

A.4.5 Confirmation that the small-scale project activity is not a debundled component of a
larger project activity:

According to Appendix C of Simplified Modalities & 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.
A 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;
· Registered within the previous 2 years; and
· Whose project boundary is within 1 km of the project boundary of the small- scale activity at
the closest point.
The project activity is not a debundled component of a large project activity as the project proponent
has not registered or applied to register any other small scale CDM project activity.
B. Baseline methodology
B.1 Title and reference of the project category applicable to the project activity:

Main Category:

Type I - Renewable energy power project

Sub Category:

D–Renewable electricity generation for a grid

The reference has been taken from the list of the small-scale CDM project activity categories
contained in ‘Appendix B of the simplified M&P for small-scale CDM project activities-Version 3’

B.2 Project category applicable to the project activity:

Document ‘Appendix B of the simplified M&P for small-scale CDM project activities’, provides
indicative simplified baseline and monitoring methodologies for selected small-scale CDM project
activity categories. The project activity falls under Category I.D –Renewable electricity generation
for a grid (Please refer to Section A.4.2).

Paragraph 28 of the above document states that

“For a system where all fossil fuel fired generating units use fuel oil or diesel fuel, the baseline is
the annual kWh generated by the renewable unit times an emission coefficient for a modern diesel
generating unit of the relevant capacity operating at optimal load as given in Table I.D.1”

Before the implementation of the project activity DSL was meeting the entire power requirement of
its manufacturing facility from DG sets. These DG sets were of capacity greater than 200 kW and
were part of mini-grid with 24 hour service. Hence the use of diesel for running the DG sets forms
the energy baseline where the emission factor for diesel is taken as 0.8 kg CO2/kWh as per the table
I.D.1.

B.3 Description of how the anthropogenic GHG emissions by sources are reduced below those
that would have occurred in the absence of the CDM project activity
In accordance with paragraph 28 of the simplified modalities and procedures for small-scale CDM
project activities, a simplified baseline and monitoring methodology listed in Appendix B may be
used for a small-scale CDM project activity if project participants are able to demonstrate to a
designated operational entity that the project activity would otherwise not be implemented due to the
existence of one or more barrier(s) listed in attachment A of Appendix B.
Although Government of Madhya Pradesh has brought out ‘Incentives schemes for the generation of
power through non-conventional energy sources’, but DSL is not legally bound to invest in the high
efficiency biomass based power plant. Also there are no planned regulations that will coerce the
industries to implement the project activity within the crediting period. DSL had an alternative to
continue with the power generation through DG sets and implementation of the biomass based project
activity is a voluntary step undertaken by DSL with no direct or indirect mandate by law.

The main driving forces to this ‘Climate change initiative’ have been:

- GHG reduction and subsequent carbon financing against sale consideration of carbon credits

- the rural development of the region by creating a new demand for the waste biomass thereby
providing a source of additional revenue for the farmers

- demonstrating to other entrepreneurs the un-tapped potential of generating clean power from
combustion of biomass

The implementation of the project activity has its associated barriers which are not faced by the
alternative to continue with use of DG sets for power generation..

Investment barrier

DSL was the first project proponent in the state to utilise renewable biomass for generating
electricity. Till date the project activity is the only of its kind in the state. Some of the reasons for low
penetration of such renewable energy projects and little willingness of entrepreneurs to invest in
similar kind of project activity and change the current operating practices in the region are:

§ High initial cost

§ Escalation in the biomass prices due of increase in demand of this fuel. The cost of biomass
during the financial closure for the project activity was around INR 1,250/ton, which has
gone up to more than INR 1500/ton in less than a year6

§ Since there is lot of biomass available, the success of project will attract more investment in
the region in terms of more biomass based power projects, but this will further push the price
of the biomass upward. In absence of CDM credit the biomass price increase may act as a
driver for switching over to coal as fuel.

6
Documentary evidence regarding the price escalation would be shared with the validator during validation
 § Need to develop an infrastructure in terms of manpower and financial resources, in order to
ensure continuous fuel availability. This is a daunting task since one single supplier cannot
supply the quantity of biomass required for the project activity. At a time negotiations have
to be done with many suppliers/farmers for providing sufficient quantity of biomass which
demands experience in the rural economics. Also the continuous supply of fuel for the project
activity, over a distance of 200 km requires good managerial skills, commitment and
resources.

Barrier due to prevailing practice

Out of total 200 MW power generation potential in the state of Madhya Pradesh from biomass fuels,
none has been 7 harnessed for power generation till date. The project activity (3 MW biomass based
power plant) is only one of its kind in the state and is not a common practice adopted for power
generation. This further justifies that the project is not a part of the baseline scenario. As a pioneer in
this initiative, DSL had to invest significant time and resources for the success of this project activity.
In absence of the project proponent’s initiative to implement the project, the present and future
electricity demand of the manufacturing facility would have been met by operating the diesel
generator sets which is the most appropriate baseline. With the implementation of the project, 217.8
million kWh of clean electricity would be generated over a period of 10 years.
Inspite of these limitations, DSL is one such entrepreneur to initiate this GHG abatement project
under Clean Development Mechanism with view of obtaining carbon financing. DSL’s long term
success will depend upon securing the proposed carbon finance and it will definitely encourage other
entrepreneurs to come up with similar project activities contributing further towards GHG emission
reduction. Carbon financing would significantly help DSL to offset the adverse conditions discussed
under above mentioned barriers which are faced by such project activities.

B.4 Description of the project boundary for the project activity:

As mentioned under Type I.D. of ‘Annex-B of the simplified modalities and procedures for small-
scale CDM project activities’, project boundary encompasses the physical and geographical site of
the renewable generation source.
For the project activity the project boundary is from the point of fuel storage to the point of electricity
supply to the manufacturing facility where the project proponent has a full control. Thus, project
boundary covers fuel storage, boiler, steam turbine generator and all other accessory equipments.

7
http://www.mprenewable.org/Biomass/BIOMASS.HTM
Flow chart and project boundary is illustrated in the following diagram:

Project Boundary
Biomass Source

Biomass
BiomassSource
Storage

Emission
Generated

Biomass fired
Boiler

Emission
Sequestered

Power
Generation

Electricity to Auxiliary
Spinning Mill Consumption
B.5 Details of the baseline and its development:

B.5.1 Specify the baseline for the project activity using a methodology specified in the applicable
project category for small-scale CDM project activities contained in Appendix B of the simplified
M&P for small-scale CDM project activities:

The use of DG sets has been considered for baseline calculations since the project activity avoids the
use of diesel by DG sets for supply of electricity to DSL. The baseline is the annual kWh generated
by the project activity times emission coefficient of 0.8 kg CO2/kWh as per the table I.D.1.

B.5.2 Date of completing the final draft of this baseline section:

30/09/2004

B.5.3 Name of person/entity determining the baseline:

Deepak Spinners Limited

The person/entity is also a project participant as listed in Annex 1 of this document.

C. Duration of the project activity and crediting period
C.1 Duration of the project activity:

C.1.1 Starting date of the project activity:

01/10/2003

C.1.2 Expected operational lifetime of the project activity:

25years

C.2 Choice of the crediting period and related information:

C.2.1 Renewable crediting period

C.2.1.1 Starting date of the first crediting period:

C.2.1.2 Length of the first crediting

C.2.2 Fixed crediting period:

C.2.2.1 Starting date: 01/06/2004

C.2.2.2 Length (max 10 years):

10 years
D. Monitoring methodology and plan
D.1 Name and reference of approved methodology applied to the project activity:

Monitoring methodology / guideline mentioned in the ‘Appendix B of the simplified modalities and
procedures for small scale CDM project activities’ in the project category Type I.D. is considered as
basis for monitoring methodology for the project activity. The document states that the monitoring
shall consist of metering the electricity generated by the renewable energy technology.

D.2 Justification of the choice of the methodology and why it is applicable to the project
activity:

Generation of electricity for captive consumption using biomass as fuel leads to mitigation of GHG
emissions from the diesel based captive power generation. In order to monitor the mitigation of GHG
due to the project activity at DSL, the total electricity produced and auxiliary consumption need to be
measured and the net electricity supplied to the manufacturing facility of DSL need to be calculated.
The net electricity supplied to manufacturing facility of DSL by the project activity multiplied by
emission factor for diesel will form the baseline for the project activity.

Description of monitoring plan

The project activity will have two separate meters to record the gross power produced and auxiliary
power consumed. The monitoring and verification system would mainly comprise of these meters as
far as power supplied to the manufacturing facility is concerned. The biomass input is also to be
monitored. Quantity of coal will also be monitored when used.
All monitoring and control functions will be as per the internally accepted standards of DSL.
All instruments will be calibrated and marked at regular intervals so that the accuracy of
measurement can be ensured all the time.
GHG SOURCES

Direct On-Site Emissions

Direct on-site emissions of the project activity arise from the combustion of biomass in the boiler.
These emissions mainly include CO2. The CO2 released during the combustion will be consumed by
the plant species for their growth. In view of the above, biomass combustion and growth of biomass
and associated CO2 consumption and release can be treated as cyclic process resulting in no net
increase of CO2 in the atmosphere Hence, the project will not lead to GHG emissions.
Direct Off-Site Emissions

Direct off-site emissions in the project activity arise from the transportation of biomass. The same
type of GHG emissions occur (in the absence of project activity) during transportation of diesel from
petroleum refinery, to the project site. To be on conservative side CO2 emission due to diesel
transportation has not been considered in the baseline emissions and hence a small amount of
emissions due to transportation of biomass has been neglected from the calculations.

Indirect On-Site Emissions

The indirect on site GHG source is the consumption of energy and the emission of GHGs involved in
the construction of biomass based power plant.

Considering the life of the project activity and the emissions to be avoided in the life span, emissions
from the above-mentioned source are too small and hence neglected.

No other indirect on-site emissions are anticipated from the project activity.

Project Parameters affecting Emission Reduction

Monitoring Approach

The general monitoring principles are based on:

§ Frequency

§ Reliability

§ Registration and reporting

As the emission reduction from the project are determined by the number of units supplied to the
manufacturing unit (and then multiplying with appropriate emission factor) it becomes important for
the project activity to monitor the gross power produced and auxiliary power consumed on real time
basis and calculate the net electricity supplied
Net emission reductions also depend on the GHG emissions estimated due to firing of coal in case of
exigencies. Hence the second important thing is to monitor the quantity of coal used and quantify the
power contribution from the same.

Frequency of monitoring

The project developer will install all metering facilities and check them. The measurement will be
monitored and recorded on a continuous basis by the project developer.

Reliability

The amount of emission reduction is proportional to the net power generation from the project. Since
the reliability of the monitoring system is governed by the accuracy of the measurement system and
the quality of the equipment to produce the result. All power measuring instruments must be
calibrated once a year for ensuring reliability of the system. All instruments carry tag plates, which
indicate the date of calibration and the date of next calibration. Therefore the system ensures the final
generation is highly reliable.
The shift incharge will be responsible for data recording and the plant manager will ensure that data
is recorded continuously and is archived properly. Also the shift incharge will under go an induction
programme including plant operations, data monitoring, report generation etc.

Registration and reporting

Daily, weekly and monthly reports will be prepared stating the generation.
The other major factors, which need to be ensured and monitored, is the use of biomass and coal

Fuel related parameters:

Quantity of biomass used in the boiler as fuel

The biomass received will be stored in the plant’s storage area specially designed for such storage.
The amount of biomass entering the plant will be measured and records of the same will be
maintained. The weighing system would be calibrated annually to ensure the accuracy of the
measurement. The data will be recorded for further verification. The amount of biomass purchased,
will be based on invoices / receipts from fuel contractors. The amount of biomass fed to the boiler
would also be verified through audit reports.

Quantity of the coal used in the boiler as fuel

Coal when used in exigencies would be quantified through invoices / receipts of fuel purchases. The
amount of coal fed to the boiler would also be verified through audit reports.
Quality of biomass used in the boiler
The main type of fuel for the power generation is rice husk. The properties of the biomass from
ultimate analysis-calorific value, ash compositions etc. are already established and will be consistent
in the region. Calorific values of any other biomass used, will be monitored.

Quality of coal fired in the boiler

The properties of the coal from ultimate analysis - calorific value and composition etc. will depend
on the quality of coal received and will be monitored prior to use.

Operational Parameters of the power generating Unit

Total Electricity Generated

The total electricity generated by the power project will be measured in the plant premises to the best
accuracy and will be monitored and recorded, on a continuous basis.

Auxiliary Consumption

The auxiliary consumption by the power project will be measured in the plant premises to the best
accuracy and will be monitored and recorded, on a continuous basis.

Power exported to the manufacturing facility

The net power exported to the manufacturing facility would be calculated.

All the above parameters / factors will demonstrate the performance of the project at any point of
time.

Verification

The performance of the biomass based power project leads to CO2 emission reductions. In other
words, the longer the power plant runs and supplies power to the manufacturing facility, more would
be the emission reductions. Fully functional management information systems will be built for

· Verification of various measurement and monitoring methods

· Verification of instrument calibration methods

· Verification of measurement accuracy

D.3 Data to be monitored:
a) Parameters affecting the emission reduction potential of the project activity
ID Data Data variable Data Measured Recording Proportion How will the data be For how Comment
No. type unit (m), frequency of data to be archived? long is
calculated monitored (electronic/paper) archived
(c) or data to
estimated be kept?
(e)
1 Energy Total electricity kWh m Continuous Total Electronic Crediting Measured in
generated Period plant premises
(CP)+2 and monitored
years and recorded
continuously.
2 Energy Auxiliary kWh m Continuous Total Electronic CP+2 -do-
consumption years
3 Energy Electricity kWh c Continuous Total Electronic CP+2 -do-
supplied to years
manufacturing
facility
 b) Fuel related parameters affecting the project activity
ID Data Data variable Data Measured Recording Proportion How will the data For how Comment
Number type unit (m), frequency of data to be archived? long is
calculated be (electronic/paper) archived
(c) or monitored data to
estimated be kept?
(e)
1 Fuel Type of fuel used MT m Daily >95% Electronic CP+2 To be
Quantity - biomass years monitored at
- coal purchase and
usage.
2 Fuel Calorific Value kcal/kg m Sample Electronic CP+2 This will be
Quality of fuels used testing years done in case
- biomass other fuel is
used in place
of rice husk
3 Fuel Carbon content % m Sample Electronic CP+2 This will be
Quality of fuels used testing years done in case
- coal other fuel is
used in place
of rice husk
 c) Quality control (QC) and quality assurance (QA) procedures are being undertaken for data monitored. (data items in tables
contained in section D.3 (a to c) above, as applicable)

Data Uncertainty level of Are QA/QC Outline explanation why QA/QC procedures are or are
data (High procedures not being planned.
Medium/Low) planned for these
data?

D.3.(a)1 Low Yes This data will be used for calculation of emission reductions by project activity.

D.3.(a)2 Low Yes This data will be used for calculation of emission reductions by project activity.

D.3.(b)1 Low Yes This data will be used as supporting information to calculate emission reductions by project
activity.

D.3.(b)2 Low Yes This data will be used as supporting information to calculate emission reductions by project
activity

D.3.(b)3 Low Yes This data will be used as supporting information to calculate emission reductions by project
activity
D.4 Name of person/entity determining the monitoring methodology:
Deepak Spinners Limited

The person/entity is also a project participant as listed in Annex 1 of this document.

E. Calculation of GHG emissions by sources
E.1 Formulae used:

E.1.1 Selected formulae as provided in Appendix B:

Not applicable

E.1.2 Description of formulae when not provided in appendix B:

E.1.2.1 Describe the formulae used to estimate anthropogenic emissions by sources of GHGs due
to the project activity within the project boundary: (for each gas, source,
formulae/algorithm, emissions in units of CO2 equivalent)

The project activity leads to GHG on-site emissions in the form of CO2 emissions from
combustion of biomass. The project activity uses an environmentally renewable resource as
fuel for power generation. The CO2 emissions from biomass combustion process will be
consumed by the plantations, representing a cyclic process of carbon sequestration.
Since the biomass contains negligible quantities of other elements like Nitrogen, Sulphur etc.
release of other GHG emissions are considered negligible.
GHG emissions during on-site construction work are negligible compared to GHG reductions
in the project lifetime and are not accounted for. Similarly emissions associated with
transportation of construction materials are ignored.
In case of exigencies of biomass fuel scarcity, DSL proposes to use coal as fuel. However
the biomass is available in surplus in the region, and it can be safely assumed that coal will
not be used in project scenario and emissions from such usage are not included. Hence the
uncertainties in the project emissions are negligible. In case coal is used the CO2 emissions
during the usage of coal will be calculated in the following manner:

Tons of CO2 = (44/12) x Percentage of total carbon in coal x Quantity of coal used in
tons

Diesel generator (DG) sets will be used as standby. However the emissions from the usage of
DG sets are not considered in the project activity emissions since the electricity generated by
DG sets would be monitored separately.

E.1.2.2 Describe the formulae used to estimate leakage due to the project activity, where required,
for the applicable project category in appendix B of the simplified modalities and
procedures for small-scale CDM project activities (for each gas, source,
formulae/algorithm, emissions in units of CO2 equivalent)
 As prescribed in Appendix B of the Simplified Modalities and Procedure for small-scale
CDM project activities, for Category I.D., leakage estimation is only required if renewable
energy technology is equipment transferred from another activity. This does not apply to the
project case. However, the only source of considerable GHG emissions which are
attributable to the project activity lies outside the project boundary and the said emissions
occur from transportation of biomass to the project site. The same have been estimated
below. For detailed calculation please refer Enclosure B.

Emissions due to transportation of biomass

Total biomass required 25200 ton/year
Biomass transported by truck 25200 ton/year
Biomass load per truck 12 Ton
Total no. of trips 2100
Max. distance between project site and collection centres 200 Km
Consumption of diesel per trip (to and fro)(@5km/lit) 80 Litres
Total diesel consumption 168000 Litres
Calorific value of diesel 0.0000283 TJ/lit
Emission factor for diesel 74.1 T CO2/TJ
Emissions due to transportation of biomass 352 t CO2

The same type of GHG emissions occur (in the absence of project activity) during
transportation of diesel from petroleum refinery, to the project site. To be on conservative
side CO2 emission due to diesel transportation has not been considered in the baseline
emissions and hence emissions due to transportation of biomass have been neglected from the
calculations.

E.1.2.3 The sum of E.1.2.1 and E.1.2.2 represents the project activity emissions:

The emissions due to use of coal (if any), would give the project activity emissions.

E.1.2.4 Describe the formulae used to estimate the anthropogenic emissions by sources of GHG’s
in the baseline using the baseline methodology for the applicable project category in
appendix B of the simplified modalities and procedures for small-scale CDM project
activities: (for each gas, source, formulea/algorithm, emissions in units of CO2
equivalent)
 Annual kWh generated
Baseline emissions = x 0.8 kg CO2/kWh
by project activity

There are no uncertainties involved in the baseline since the emission factor is established and would
remain constant.

E.1.2.5 Difference between E.1.2.4 and E.1.2.3 represents the emission reductions due to the
project activity during a given period:

Following formula is used to determine Emission reduction

CO2 emission reduction Baseline emission Project Activity
= –
due to project activity emission

Calculation shown in excel sheet as Enclosure A.

E.2 Table providing values obtained when applying formulae above:

Using UNFCCC baseline methodology for small-scale CDM project, emission reductions by project
activity for 10 year crediting period have been calculated and tabulated as under.
 Table 1 Emission Reductions

Sr. Operating Baseline Project Emission

No. activity Reductions,
Years Emissions
Emissions (Tones of CO2)
(Tones of
CO2) (Tones of
CO2)

1. 2004-2005 17424 0 17424

2. 2005-2006 17424 0 17424

3. 2006-2007 17424 0 17424

4. 2007-2008 17424 0 17424

5. 2008-2009 17424 0 17424

6. 2009-2010 17424 0 17424

7. 2010-2011 17424 0 17424

8. 2011-2012 17424 0 17424

9. 2012-2013 17424 0 17424

10. 2013-2014 17424 0 17424

174,240 3,520 174,240

Therefore a carbon intensive energy equivalent of 217.8 million kWh for a period of 10 years would
be saved by generating power from the 3.0 MW biomass based power plant which in turn will reduce
174,240 tons of CO2 emissions considering baseline calculations.
F. Environmental impacts
F.1 If required by the host Party, documentation on the analysis of the environmental impacts
of the project activity:

The project does not fall under the purview of the Environmental Impact Assessment (EIA)
notification of the Ministry of Environment and Forest, Government of India.
However the design philosophy of this project activity is driven by the concept of providing the low
cost energy with acceptable impact on the environment hence the environment aspects of the project
activity are discussed as follows:

The major environmental issue related to the project activity is the ash disposal methodology. The
ash is sold to the cement manufacturers.

Bulk of the ash is collected from dust collector as bottom ash and rest to be collected from
economizer, air-preheater. To dispose of these ashes the following system is adopted.

Bottom ash disposal system

Bottom ash from the boiler is collected in water impounded hopper and is intermittently hydro-ejected
in slurry form directly to ash disposal area by hydro-ejector.

Fly ash disposal system

Fly ash collected in economizer, air-preheater and dust hopper is evacuated by pneumatic (vacuum)
covering system to hydrovactor. Water jet exhauster is used to create necessary vacuum for
producing airflow to convey dry-ash through transport pipeline upto hydrovacator. The vacuum is
created by a concentric ring of nozzles which direct high-pressure streams of water into a venturi
throat.

After a pre-determined level of vacuum is reached in transport line high vacuum switch operates. The
automatic sequential control then energizes solenoid valves of material handling (isolating various
hoppers)/branch isolation valves one by one in a pre-set sequence. Simultaneous to opening of
valves, air immediately blows into the system through two spring-loaded air inlet check valves
provided with material handling valves. As long as fly ash is available at the mouth of the ash
hopper, it prevents excessive entry of air in the flyash system, and this results in maintenance of high
vacuum. On evacuation of ash, rush of free air into the system drops the vacuum energizing another
circuit in the automatic sequential control, which after a time delay de-energizes solenoid valves thus
closing the valves and vacuum in transport line again rises operating high vacuum switch to energize
solenoid valve of the following hopper in the sequence. Similar sequence continues until last hopper
is evacuated, subsequent to which system automatically shuts down.

Fly ash along with air so transported is mixed with water at hydrovactor and discharges into air
separator tank where air is separated and goes to atmosphere.

A vacuum breaker run electric mode vents the system to atmosphere in the event of no water
supply/shut off for any reason.
G. Stakeholders comments
G.1 Brief description of the process by which comments by local stakeholders have been invited
and compiled:

The 3.0 MW biomass based power plant is implemented by DSL. The project activity uses biomass
that is abundantly available.
The various stakeholders identified for the project activity are as under
1. Madhya Pradesh Pollution Control Board
2. Madhya Pradesh Urja Vikas Nigam Limited
3. Village Panchaayat
4. Biomass suppliers
5. Consultants
6. Equipment suppliers
Stakeholders list includes the government and non-government parties, which are involved in the
project activity at various stages. At the appropriate stage of the project development, stakeholders /
relevant bodies were involved to get the clearance.

G.2 Summary of the comments received:

Stakeholders’ Involvement
The Village Panchaayat / Local elected body of representatives administrating the local area is a true
representative of the local population in a democracy like India. The Village Panchaayat had no
objection to the establishment of the power plant. The local community mainly comprises of the local
people in and around the project area. The role of the local people are as a beneficiary of the project.
Their contribution includes local manpower working at the plant site. The project provides direct and
indirect employment opportunities to local populace thus encouraging the project. The project did not
require any displacement of the local population. The project will not cause any adverse social
impacts on the local population but helps in improving the quality of life for them.
State Pollution Control Board of the Government of Madhya Pradesh has prescribed standards of
environmental compliance and monitors the adherence to the standards. The project proponent had
received ‘Consent to Establish’ from the State Pollution Control Board.
The Madhya Pradesh Urja Vikas Nigam Limited (MPUVN) is the nodal agency for implementing
various programs and policies of the Government of India as well as the State Government for the
renewable energy sector. It had agreed and supported the project.
Projects consultants were involved in the project activity to take care of the various pre contract and
post contract issues / activities like preparation of basic and detailed engineering documents,
preparation of tender documents, selection of vendors / suppliers, supervision of project operation,
implementation, successful commissioning and trial run.
The copies of the comments received from the various stakeholders would be shared with the
validator during validation.

G.3 Report on how due account was taken of any comments received:

No concern was raised by the stakeholders.

The relevant comments and important clauses mentioned in the project documents / clearances like
Feasibility Report, local clearances etc. were considered while preparing the CDM Project Design
Document.
As per UNFCCC requirement the PDD will be published at the validator’s web site for public
comments.
 Annex 1

CONTACT INFORMATION FOR PARTICIPANTS IN THE PROJECT ACTIVITY

Organization: Deepak Spinners Limited

Street/P.O.Box: SCO 16, Sector 26, Madhya Marg
Building: --
City: Chandigarh
State/Region:
Postcode/ZIP: 160019
Country: India
Telephone: 91-172-2791272
FAX: 91-172-2790975
E-Mail:
URL:
Represented by:
Title: Executive Director
Salutation: Mr.
Last Name: Khemka
Middle Name: N
First Name: V
Department:
Mobile:
Direct FAX: --
Direct tel: --
Personal E-Mail:
 Annex 2

INFORMATION REGARDING PUBLIC FUNDING

No public funding as part of project financing from parties included in Annex I is involved in the
project activity.
Appendix A: Abbreviations

AFBC Atmospheric fluidized bed combustion

CO2 Carbon dioxide
DG Diesel generator
DSL Deepak Spinners Limited
GHG Greenhouse gas
INR Indian National Rupee
IPCC Inter Governmental Panel On Climate Change
Kg Kilogram
Km Kilometer
kW Kilo watt
kWh Kilo watt hour
MPUVN Madhya Pradesh Urja Vikas Nigam Ltd.
MW Mega watt
PDD Project design document
TPH Tons per hour
UNFCCC United Nations Framework Convention on Climate Change
Appendix B: List of References

§ Kyoto Protocol to the United Nations Framework Convention on Climate Change

§ Website of United Nations Framework Convention on Climate Change (UNFCCC),
http://unfccc.int
§ UNFCCC document: Clean Development Mechanism, Simplified Project Design
Document For Small Scale Project Activities (SSC-PDD), Version 01 (21 January,
2003)
§ UNFCCC document: Simplified modalities and procedures for small–scale clean
development mechanism project activities
§ UNFCCC document: Indicative simplified baseline and monitoring methodologies for
selected small-scale CDM project activity categories, Version 03, 30 June 2004
§ UNFCCC document: Determining the occurrence of debundling
§ Feasibility Report of DSL, Power Project
§ http://www.deepakspinners.com
§ http://www.mpuvn.com