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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.

CDM Executive Board


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CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-PDD) Version 03 - in effect as of: 28 July 2006 CONTENTS A. B. C. D. E. General description of project activity Application of a baseline and monitoring methodology Duration of the project activity / crediting period Environmental impacts Stakeholders comments Annexes Annex 1: Contact information on participants in the project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring plan

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SECTION A. General description of project activity A.1 Title of the project activity: 40 MW Bagasse Co-generation Power Project of M/s Shree Ambika Sugars Limited (SASL) at Tamilnadu, India Version : 01 Date : 11th May 2007

A.2.

Description of the project activity:

SASL, a public company, is a sister concern of Thiru Arooran (TA) Sugars. SASL, established in 1998, has 2 sugar plants (namely Pennadam and Kottur) under its fold. SASL in December 2002 implemented a cogeneration Project activity at its Pennadam unit and obtained ISO 14001:2004 certification for its power plant at Pennadam in 2005. The cogeneration plant has been designed to utilize the bagasse from the sugar plant and generate electricity. The surplus electricity is exported to the grid and replaces equivalent electricity from emission intensive sources. The cogeneration plant is rated for a nominal output of 40 MW and would operate for around 270 days a year exporting approximately 184.68 Million Units per annum to Tamil Nadu Electricity Board of the Southern Grid. Past Scenario Electricity was being produced by a bagasse fired low/medium pressure, less efficient cogeneration power plant to meet the in house power and heat requirement. Present scenario The old plant has been decommissioned and the boilers of that plant have been dismantled and sold as scrap to various private parties. A new bagasse cogeneration plant has been commissioned in December, 2002 and synchronized with grid in March, 2003.This plant uses the bagasse generated from the sugar plant during season (December to October) to produce electricity. Some amount of the electricity is used for captive consumption (about 10 MW) and the surplus is exported to the grid. By investing to increase steam efficiency and increase the efficiency of burning bagasse (more efficient high pressure boilers and turbo generators), SASL generates surplus electrical energy and export the surplus electrical energy to the TNEB Grid. The steam consumption during baseline and project scenario is same and it is of the order of 465.7 kg steam per ton cane. However, the boiler and turbine efficiency has improved in the present scenario. With the implementation of this project, SASL will be able to sell electricity (about 30 MW) to the Southern grid of India, avoiding the dispatch of corresponding amount of energy produced by fossil-fueled thermal plants to that grid. By that, the initiative avoids CO2 emissions, also contributing to the regional and national sustainable development.

Project Activitys contribution to Sustainable Development:

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The sustainable development indicators stipulated by the Government of India (Host Country) in the interim approval guidelines for CDM projects are as follows1: Social well being Economic well being Environmental well being

The SASL Project activity assists in achieving the above components of sustainable development as described below: Environmental Sustainability: Substituting electricity generated using conventional fuel and fed to the State Grid with biomass based power. Mitigating the emission of GHG (CO2) as biomass is a carbon neutral fuel Conserving coal and other non-renewable natural resource

Socio-economic Sustainability: The project is in line with the policies of MNRE, India. It contributes its share towards achievement of the 11th Plan target of 10,000 MW renewable energy by 2012 set by MNRE. Compared to certain fossil fuel fired plants, the proposed project will not lead to an outflow of foreign exchange capital, since most capital equipment is locally produced and the biomass waste does not have to be imported. This is in accordance with Indias policy of self-reliance. The plant is situated far from an urban centre, creating rural employment. Creation of employment opportunities in rural areas has long been recognized as a major element of sustainable development and to stem the large-scale migration from rural to urban areas. To this extent, the project directly addresses a core national concern. Bagasse cogeneration is a sustainable source of energy that brings not only advantages for mitigating global warming, but also creates a sustainable competitive advantage for sugarcane cultivation. Bagasse cogeneration is important for the energy strategy of the country. Cogeneration is an alternative that allows postponing the installation and/or dispatch of electricity produced by fossilfuelled generation utilities. The sale of the Certified Emission Reductions (CERs) generated by the project will boost the viability of bagasse cogeneration projects, helping to increase the production of renewable energy and decrease dependency on fossil fuels.

Key data for the project:

http://cdmindia.nic.in/host_approval_criteria.htm

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Power generation capacity Estimated Power generation per annum Annual minimum in house demand Annual minimum export to the grid system

40 MW 246.24 Million units 61.56 Million units 184.68 Million units

Turbine Details Existing 2 No. X 20.00 MW

Type Multi stage, Extraction cum condensing turbine

Steam Pressure 84 ata


0

Steam Temperature 510 C

Gross Power Generation 40 MW

Boiler Details 2 No.

Type Bi-drum, Multi fuel fired, Travel grate, Water tube

Pressure 87 ata

Temperature 5150C

Steam (TPH) 100

A.3. Project participants: >> Name of Party involved (host indicates a host Party)

Private and/or public entity(ies) project participants (as applicable) M/s Shree Ambika Sugars Limited (SASL) (Project Proponent)

Kindly indicate if the Party involved wishes to be considered as project participant No.

India (Host Country)

A.4.

Technical description of the project activity: A.4.1. Location of the project activity:

>> The co-generation project of Shree Ambika Sugars Limited is located in Eraiyur Village, Pennadam, Cuddalore district in Tamilnadu. The district is paddy and sugarcane bowl of the state. The plant is well connected to various parts of the state by road/rail links. The plant is 250 km from Chennai, capital of Tamil Nadu. A.4.1.1. >> India A.4.1.2. Region/State/Province etc.: >> State: Tamilnadu, Country: India Host Party(ies):

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A.4.1.3. City/Town/Community etc: >> Village: Eraiyur, Pennadam, District: Cuddalore, State: Tamilnadu, Country: India A.4.1.4. Detail of physical location, including information allowing the unique identification of this project activity (maximum one page): >> The project is located in Eraiyur Village, Pennadam, Cuddalore district in Tamilnadu. The district is paddy and sugarcane bowl of the state. The plant is well connected to various parts of the state by road/rail links. The plant is 250 km from Chennai, capital of Tamil Nadu. Pennadam is located at 11.4 N 79.23 E. It has an average elevation of 54 metres (177 feet). As per 2001 India census, Pennadam had a population of 17,142. Males constitute 51% of the population and females 49%. Pennadam has an average literacy rate of 65%, higher than the national average of 59.5%: male literacy is 73%, and female literacy is 56%. In Pennadam, 11% of the population is under 6 years of age.

Site at Village: Eraiyur, Pennadam, District: Cuddalore, State: Tamilnadu

A.4.2. Category(ies) of project activity: >> The project activity is an electricity generation project where aggregate electricity generation of the project exceeds 15 MW. The project activity is a large scale potential CDM project related to grid-

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connected electricity generation from biomass residues2 in industrial facilities and thus fits the consolidated baseline methodology ACM0006 - Consolidated methodology for generation from biomass residues. Hence, the project activity may principally be categorized in Category 1- Energy Industries (Renewable/Non-Renewable sources) as per the scope of the project activities enlisted in the list of Sectoral scopes and approved baseline and monitoring methodologies on the UNFCCC website for accreditation of Designated Operational Entities3.

A.4.3. Technology to be employed by the project activity: >> The technology used involves the modified Rankine cycle method for the electricity generation. The major equipment constituting the project activity are the high pressure boiler & steam driven turbo generator (TG) set. Bagasse from the sugar mill is fired in the multi-fuel boiler to generate steam (Coal will be used if and when required in the absence of biomass). The boiler is rated to generate 100 TPH steam at an outlet steam condition of 87 ata and 5150 C. Two TG Sets of extraction cum condensing type with rated nominal electricity output of 20 MW each are installed. The steam generated in the high pressure boilers is inlet to the TG sets at a pressure of 84 ata & 5100 C (Enthalpy of 816 Kcal/Kg) to generate electricity. From TG sets, the major quantity of steam is extracted at 9 ata / 2700 C (15.5 TPH per Turbine at Enthalpy of 713.5 Kcal/Kg) and at 3 ata / 1350 C (60.91TPH per Turbine at Enthalpy of 651.8 Kcal/Kg) used in sugar manufacturing process and the rest is condensed. The steam consumption during baseline and project scenario is the same - 465.7 kg steam per ton cane. The process steam supplied to sugar mill is returned back as condensate to the power plant after utilizing the heat. The boiler & turbo generators are fully automated to improve the operational efficiency. The project activity consists of the following main units: 2 numbers of boilers 2 number of steam turbines 2 number of Electrical generator Appropriate power evacuation system and the related instrumentation and controls

The technical specifications of the key units are as follows: Present Boilers (2 numbers) Make: ISGEC John Thompson Type: Multi-fuel, travel grate, bi-drum, water tube boiler Steam output: 100 tones per hour. 87 ata and 5150 C Present Steam turbine (2 numbers)

http://cdm.unfccc.int/methodologies/DB/AEXF9VXI2FOS2AXNKG3371B8QROLJF/view.html

http://cdm.unfccc.int/DOE/scopes.html

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Make: BHEL Type: Extraction cum condensing Steam Pressure: 84 ata Steam Temperature: 5100C Rated Speed: 5650 rpm Present Electrical generator (2 numbers) Make: BHEL Type: Four pole induction generators Speed: 1500 rpm Frequency: 50 Hz Power Factor: 0.8 Voltage (terminal): 11KV The technology for the boilers and turbines is well established and available in India and the project activity does not involve any transfer of technology.
Steam Medium pressure steam to process Low pressure steam to process Boiler Turbine Generator

Biomass Exhaust Air

Air preheater

Water preheater

Condenser

Cooling Water

Condensate Blower Pump

Pump

Make-up water

Power Generation details: Oct 2006Sept 2007 270 1600000

Particulars Operation Days Cane crushed

Unit No MT

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Cane crushed/day Bagasse % cane Steam % cane Steam Generation per day Power Generation @ 100% Plant Load Factor Power Generation @ PLF Power Generation

MT % %

5926 30 42

MT/hr MW % MW Units/day

4429 40 95 38 912000

A.4.4 >>

Estimated amount of emission reductions over the chosen crediting period:

Year 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Total Estimated reduction (tones of CO2 e) Total numbers of crediting years Annual average over the crediting period of estimated reduction (Tonnes of CO2 e)

GHG abatement (t CO2eq) 164237.76 164237.76 164237.76 164237.76 164237.76 164237.76 164237.76 164237.76 164237.76 164237.76 1642377.60 10 Years 164237.76

A.4.5. public funding of the project activity: >> There is no public funding from any Annex I party for this project activity.

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SECTION B. Application of a baseline and monitoring methodology B.1. Title and reference of the approved baseline and monitoring methodology applied to the project activity: >> Title: Consolidated methodology for generation from biomass residues Reference: This is an UNFCCC consolidated baseline methodology ACM0006, version 05, Sectoral scope 01, EB31, based on the following approved methodologies: This consolidated methodology is based on elements from the following methodologies: AM0004: Grid-connected Biomass Power-Generation that avoids uncontrolled burning of biomass which is based on the A.T. Biopower Rice Husk Power Project in Thailand whose Baseline study, Monitoring and Verification Plan and Project Design Document were prepared by Mitsubishi Securities; AM0015: Bagasse-based cogeneration connected to an electricity grid which is based on the Vale do Rosrio Bagasse Cogeneration project in Brazil, whose baseline study, monitoring and verification plan and project design document were prepared by Econergy International Corporation; NM0050: Ratchasima SPP Expansion Project in Thailand whose baseline study, monitoring and verification plan and project design document were prepared by Agrinergy Limited; NM0081: Trupn biomass cogeneration project in Chile whose baseline study, monitoring and verification plan and project design document were prepared by Celulosa Arauco y Constitutcin S.A; NM0098: Nobrecel Fossil-to-Biomass Fuel Switch Project in Brazil, whose baseline study, monitoring and verification plan and project design document were prepared by Nobrecel S.A.Celulose e Papel and Ecosecurities Ltd.
This methodology also refers to the latest approved version of ACM0002 (Consolidated baseline methodology for grid-connected electricity generation from renewable sources), the latest approved version of the Tool for the demonstration and assessment of additionality and the latest approved version of the Tool to determine methane emissions avoided from dumping waste at a solid waste disposal site.

B.2 Justification of the choice of the methodology and why it is applicable to the project activity: >> Among the methodologies approved by UNFCCC for biomass based CDM project activities, ACM0006 has been chosen as most suitable to this project activity. The project activity meets the applicability conditions of ACM0006, as demonstrated below. The project activity is bagasse based renewable energy power project, which feeds surplus electricity (power) to the TNEB grid (comprising power generated through sources such as coal and gas based thermal power, hydro power and renewable energy sources including small / micro hydro projects, bagasse / biomass based cogeneration / power projects etc). The selected methodology available on the UNFCCC web site is applicable to generation from biomass residues and is the most suitable approved UNFCCC methodology available for the project activity.

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Further, the project activity meets the applicability criteria of ACM0006 as under: No other biomass types than biomass residues4 are used in the project plant and these biomass residues are the predominant fuel used in the project plant (some fossil fuels may be co-fired); For projects that use biomass residues from a production process (e.g. production of sugar or wood panel boards), the implementation of the project shall not result in an increase of the processing capacity of raw input (e.g. sugar, rice, logs, etc.) or in other substantial changes (e.g. product change) in this process; The biomass residues used by the project facility should not be stored for more than one year; No significant energy quantities, except from transportation or mechanical treatment of the biomass residues, are required to prepare the biomass residues for fuel combustion, i.e. projects that process the biomass residues prior to combustion (e.g. esterification of waste oils) or that treat waste that results from the preparation of the biomass residues (e.g. from drying the biomass mechanically) under anaerobic conditions are not eligible under this methodology

The various sections of the project design document have been prepared by applying the methodology ACM0006. The Baseline, Additionality, Monitoring, Calculation of Emission Reductions etc of the PDD have been prepared as per the guidelines of ACM0006 and is detailed below:

B.3. Description of the sources and gases included in the project boundary >> For the purpose of determining GHG emissions of the project activity, the following emission sources are included in emission reduction analysis: CO2 emissions from on-site fossil fuel and electricity consumption that is attributable to the project activity. This includes fossil fuels co-fired in the project plant, fossil fuels used for onsite transportation or fossil fuels or electricity used for the preparation of the biomass residues, e.g., the operation of shredders or other equipment, as well as any other sources that are attributable to the project activity; and CO2 emissions from off-site transportation of biomass residues that are combusted in the project plant.

For the purpose of determining the baseline, the following emission sources are included:

Biomass residues are defined as biomass that is a by-product, residue or waste stream from agriculture, forestry and related industries. This shall not include municipal waste or other wastes that contain fossilized and/or non-biodegradable material (small fractions of inert inorganic material like soil or sands may be included). Note that in case of solid biomass residue for all the calculations in this methodology, quantity of biomass residue refers to the dry weight of biomass residue. (from ACM0006)

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CO2 emissions from fossil fuel fired power plants connected to the electricity system; and CO2 emissions from fossil fuel based heat generation that is displaced through the project activity

Overview on emissions sources included in or excluded from the project boundary Source Gas Justification / Explanation Grid electricity generation Heat generation Baseline Uncontrolled burning or decay of surplus biomass residues CO2 CH4 N2O CO2 CH4 N2O CO2 CH4 N2O On-site fossil fuel and electricity consumption due to the project activity (stationary or mobile) Off-site transportation of biomass residues Project Activity Combustion of biomass residues for electricity and / or heat generation CO2 CH4 Included Excluded Excluded Included Excluded Excluded Excluded Excluded Excluded Included Excluded Main emission source Excluded for simplification. This is conservative. Excluded for simplification. This is conservative. Main emission source Excluded for simplification. This is conservative. Excluded for simplification. This is conservative. It is assumed that CO2 emissions from surplus biomass residues do not lead to changes of carbon pools in the Land Use Land use Change and Forestry (LULUCF). Excluded for simplification. This is conservative. Excluded for simplification. This is conservative. Note also that emissions from natural decay of biomass are not included in GHG inventories as anthropogenic sources. May be an important emission source Excluded for simplification. This emission source is assumed to be very small. Excluded for simplification. This emission source is assumed to be very small. May be an important emission source Excluded for simplification. This emission source is assumed to be very small. Excluded for simplification. This emission source is assumed to be very small. It is assumed that CO2emissions from surplus biomass do not lead to changes of carbon pools in the LULUCF sector. Excluded for simplification. Excluded for simplification. This emission source is assumed to be small. It is assumed that CO2 emissions from surplus biomass residues do not lead to changes of carbon pools in the LULUCF sector Excluded for simplification. Since biomass residues are stored for not longer than one year, this emission source is assumed to be small. Excluded for simplification. This emissions source is assumed to be very small.

N2O CO2 CH4 N2O CO2 CH4 N2O CO2

Excluded Included Excluded Excluded Excluded Excluded Excluded Excluded Excluded Excluded

Storage of biomass residues

CH4 N2O

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B.4. Description of how the baseline scenario is identified and description of the identified baseline scenario:

Determination of the suitable combination of Baseline and Project scenario: The methodology ACM0006 is applicable to project activities falling under one of the 19 combinations of project activities and baseline scenarios described in it. The scenario for energy efficiency improvement is identified as most suitable to the project activity after examining the various baseline and project scenarios. The guidelines specific to this scenario has been applied in this project design document. The most plausible baseline scenarios for the project activity have been separately determined regarding the following Realistic and credible alternatives: How power would be generated in the absence of the CDM project activity; What would happen to the biomass residues in the absence of the project activity; and In case of cogeneration projects: how the heat would be generated in the absence of the project activity.

The steps 2 and 3 of the latest approved version (version 03) of the tool for the determination and assessment of additionality have been applied to identify the baseline among all realistic and credible alternatives. As defined in the consolidated methodology ACM0006, the realistic & credible alternatives were separately determined by considering the following criteria which also were aligned with the scenario 14:

(i)

How power would be generated in the absence of the CDM project activity?

Option P4: The generation of power in the grid Option P2: The continuation of power generation in an existing biomass residue fired power plant at the project site, in the same configuration, without retrofitting and fired with the same type of biomass residues as (co-)fired in the project activity (ii) What would happen to the biomass in the absence of the project activity?

Option B1: The biomass residues are dumped or left to decay under mainly aerobic conditions. This applies, for example, to dumping and decay of biomass residues on fields. Option B4: The biomass residues are used for heat and/or electricity generation at the project site. (iii) In case of cogeneration projects: how the heat would be generated in the absence of the project activity?

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Option H5: The continuation of heat generation in an existing biomass residue fired cogeneration plant at the project site, in the same configuration, without retrofitting and fired with the same type of biomass residues as in the project activity Since 2 types of biomass residues i.e bagasse and cane trash are used, baseline is established for both as under Combinations of project types and baseline scenarios applicable to this methodology Scenario Project type Baseline scenario Power Biomass Bag asse Cane Trash Heat (if relevant) Description of the situation

14

Energy efficiency projects

P4 and P2

B4

B4

H5

The project activity involves the improvement of energy efficiency of an existing biomass residue fired power plant by retrofit or replacement of the existing biomass residue fired power plant at a site where no other power plants are operated. The retrofit or replacement increases the power generation capacity, while the thermal firing capacity is maintained. In the absence of the project activity, the existing power plant would continue to operate without significant changes. The same type and quantity of biomass residues as in the project plant would in the absence of the project activity be used in the existing plant. Consequently, the power generated by the project plant would in the absence of the project activity be generated (a) in the same plant (without project implementation) and since power generation is larger due to the energy efficiency improvements (b) partly in power plants in the grid. In case of cogeneration plants, the heat generated by the project plant would in the absence of the project activity be generated in the same plant. The efficiency of heat generation is smaller or the same after the implementation of the project activity.

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B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the registered CDM project activity (assessment and demonstration of additionality) : >> The project activity is a project comprising grid connected electricity generation from biomass. It is a renewable energy based power generation project with net zero CO2 emissions (due to the carbon sequestration by the sugar cane plants) and exports power to the southern regional grid. The power generated from the project activity has displaced electricity that would otherwise have been generated by the existing and new grid connected power plants, which have an average CO2 emission factor of 0.86 t CO2/MWh. The emission factor has been calculated as per the guidance of ACM0002. As per the decision 17/cp.7 para43, a CDM project activity is additional if anthropogenic emissions of greenhouse gases by sources are reduced below those that would have occurred in the absence of the registered CDM project activity. As per the selected methodology ACM0006, the project proponent is required to establish that the project activity is additional and therefore not the baseline scenario, for which the Tool for the demonstration and assessment of additionality Version 3, EB 29 (see fig B1) has been used. Additionality of project activity is discussed further in sections B.5.1 to B5.4. As described in the methodology, the most plausible scenario will be identified among all the realistic & credible alternatives by using the tool to determine and assess additionality (in conjunction with Fig. B1)

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(Fig B1: Flowchart summary of the Tool for demonstration of additionality of the project) B.5.1: Step 1 Identifications of alternatives to the project activity consistent with the current laws and regulations The sub steps include:

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A. Sub-step 1a. Define alternatives to the project activity B. Sub-step 1b. Enforcement of applicable laws and regulations: In sub Step 1a & 1b, SASL is required to identify realistic & credible alternatives that were available to SASL or similar project developers that provide output or services comparable with the project activity. These alternatives are required to be in compliance with all applicable legal & regulatory requirements. SASL identified the different potential alternatives to project activity available to all other sugar manufacturing units in India. As defined in the consolidated methodology ACM0006, the realistic & credible alternatives were separately determined by considering the following criteria which also were aligned with the scenario 14: Power generation: How power would have been generated in the absence of the project activity? Alternatives available for power generation: 1. Option P1: The proposed activity not undertaken as a CDM project activity. SASL had the option of continuing to operate its low pressure cogeneration system as against the 87 ata boiler being used now. Besides this, 87 ata would incur a high capital outlay. At the time of implementation of the project activity, only one other such cogeneration plant of equivalent temperature and pressure configuration was available in the country. In the absence of sufficient expertise and successful high pressure projects, it is very likely that SASL would not have opted for implementation of the high pressure system without the CDM incentive. There are no legal and regulatory requirements for the implementation of high pressure system. 2. Option P2: The continuation of power generation in an existing biomass residue fired power plant at the project site, in the same configuration, without retrofitting and fired with the same type of biomass residues as (co-)fired in the project activity In this scenario, the project proponent would use a lower energy efficient cogeneration plant compared to the project activity, which would result in consumption of more bagasse in order to generate equivalent steam and power for in-house utilization or captive consumption only. Though this alternative does not entail surplus power generation and export to an electricity grid, it is in compliance with all applicable legal and regulatory requirements and could be the baseline. In India, all the sugar mills have their own cogeneration units to cater to the in house steam and power requirements. This scenario is considered as Business As Usual case for the Indian sugar industry, where in, bagasse is used in boilers to meet the internal heat energy requirements of sugar mills. Prior to the 40 MW cogeneration plant, there were 4 boilers of 1 * 35 (14 ata, 265 deg C), 2 * 40 (14 ata, 265 deg

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C) and 1 * 70 (32 ata, 380 deg C) capacity. It is easier for sugar mills to opt for low efficiency cogeneration plants considering that they are less capital intensive. 3. Option P4: The generation of power in the grid The existing generation mix of the Southern Regional grid is comprised mainly of fossil fuel fired power plants5. Therefore in the Business as Usual scenario, the gird is likely to remain as a GHG emission intensive power source. It is in compliance with all applicable legal and regulatory requirements and could be the baseline. Heat (steam) generation: How heat would be generated in the absence of the project activity? Alternatives available for heat generation: 1. Option H1: The proposed project activity not undertaken as a CDM project activity. SASL had the option of continuing to operate its low pressure cogeneration system as against the 87 ata boiler being used now. Besides this, 87ata would incur a high capital outlay. At the time of implementation of the project activity, only one other such cogeneration plant of equivalent temperature and pressure configuration was available in the country. In the absence of sufficient expertise and successful high pressure projects, it is very likely that SASL would not have opted for implementation of the high pressure system without the CDM incentive. There are no legal and regulatory requirements for the implementation of high pressure system. 2. Option H5: The continuation of heat generation in an existing biomass residue fired cogeneration plant at the project site, in the same configuration, without retrofitting and fired with the same type of biomass residues as in the project activity Prior to implementation of the project activity, the process heat requirement of the sugar factory was being met by the old low pressure cogeneration system. In absence of the project activity, the low pressure cogeneration system would have continued to operate. There is no policy or regulation enforcing the replacement of the low pressure boiler by the high pressure boiler. SASL could have continued the heat generation in the low pressure system.

Biomass: What would happen to the biomass in the absence of the project activity? Alternatives available for biomass: I. II.
5

For bagasse For cane trash

http://www.cea.nic.in/about_us/Annual%20Report/annex11b.pdf

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For bagasse 1. Option B1: The biomass residues are dumped or left to decay under mainly aerobic conditions. This applies, for example, to dumping and decay of biomass residues on fields. Prior to the implementation of the project activity, the bagasse generated in-house was used in the low pressure cogeneration system and surplus was being sold in the local market as cattle feed. Since the low pressure systems are less efficient, the remaining bagasse would have been utilized for meeting the captive energy requirements. This would have been continued till the low pressure system was replaced at the end of its lifetime. Therefore BI is not the likely alternative in the absence of the project activity. 2. Option B4: The biomass residues are used for heat and/or electricity generation at the project site. In the absence of the project activity, bagasse would have been used to generate heat and power at the project site by the old low efficient boiler and turbine configuration. In this scenario, the project proponent would use a lower energy efficient cogeneration plant compared to the project activity, which would result in consumption of more bagasse in order to generate equivalent steam and power for inhouse utilization or captive consumption only. Though this alternative does not entail surplus power generation and export to an electricity grid, it is in compliance with all applicable legal and regulatory requirements and could be the baseline. In India, all the sugar mills have their own cogeneration units to cater to the in house steam and power requirements. This scenario is considered as Business As Usual case for the Indian sugar industry, where in, bagasse is used in boilers to meet the internal heat energy requirements of sugar mills. Prior to the 40 MW cogeneration plant, there were 4 boilers of 1 * 35 (14 ata, 265 deg C), 2 * 40 (14 ata, 265 deg C) and 1 * 70 (32 ata, 380 deg C) capacity. It is easier for sugar mills to opt for low efficiency cogeneration plants considering that they are less capital intensive.

For cane trash 1. Option B1: The biomass residues are dumped or left to decay under mainly aerobic conditions. This applies, for example, to dumping and decay of biomass residues on fields.

Prior to the implementation of the project activity, the cane trash generated during harvesting of sugarcane was used in the low pressure cogeneration system and surplus was being sold in the local market as cattle feed. Since the low pressure systems are less efficient, the remaining cane trash would have been utilized for contributing towards meeting the captive energy requirements. This would have been continued till the low pressure system was replaced at the end of its lifetime. Therefore BI is not the likely alternative in the absence of the project activity.

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2.

Option B4: The biomass residues are used for heat and/or electricity generation at the project site.

In the absence of the project activity, cane trash would have been used to generate heat and power at the project site by the old low efficient boiler and turbine configuration. In this scenario, the project proponent would use a lower energy efficient cogeneration plant compared to the project activity, which would result in consumption of more cane trash in order to generate equivalent steam and power for inhouse utilization or captive consumption only. Though this alternative does not entail surplus power generation and export to an electricity grid, it is in compliance with all applicable legal and regulatory requirements and could be the baseline. In India, all the sugar mills have their own cogeneration units to cater to the in house steam and power requirements. This scenario is considered as Business As Usual case for the Indian sugar industry, where in, cane trash is used in boilers as a supplement to meet the internal heat energy requirements of sugar mills. Prior to the 40 MW cogeneration plant, there were 4 boilers of 1 * 35 (14 ata, 265 deg C), 2 * 40 (14 ata, 265 deg C) and 1 * 70 (32 ata, 380 deg C) capacity. It is easier for sugar mills to opt for low efficiency cogeneration plants considering that they are less capital intensive. Summary on alternatives The analysis of the credible alternatives to the project activity identifies the following as the most likely baseline scenarios: A combination of the following: For Power generation: Options P4 & P2 The generation of power in the grid; and The continuation of power generation in an existing biomass residue fired power plant at the project site, in the same configuration, without retrofitting and fired with the same type of biomass residues as (co-)fired in the project activity For heat generation: Option H5: The continuation of heat generation in an existing biomass residue fired cogeneration plant at the project site, in the same configuration, without retrofitting and fired with the same type of biomass residues as in the project activity For biomass: B4: The biomass residues are used for heat and/or electricity generation at the project site

The next step for additionality justification as per Fig. B1 is either 1- Step 2 Investment Analysis 2- Step 3 Barrier Analysis SASL proceeds to establish project additionality by conducting Barrier Analysis as under.

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B.5.2

Step 3: Barrier Analysis:

SASL is required to determine whether the project activity faces barriers that: (a) Prevent the implementation of this type of proposed project activity; and (b) Do not prevent the implementation of at least one of the alternatives. The above study has been done by means of the following sub steps: Sub-step 3a: Identify barriers that would prevent the implementation of type of the proposed project activity: As per the report by the Ministry of Non-Conventional Energy Sources (MNES), Government of India, the potential for bagasse based cogeneration in the major sugar producing states in India is estimated as 3500 MW6, however the potential is utilized by commissioning cogeneration projects and exporting electrical energy to grid, around 348.23 MW i.e. 9.95% of total cogeneration potential (46 Nos. of Projects)7. The potential for bagasse based cogeneration in Tamil Nadu (TN) State is estimated as 350 MW8, however the potential is utilized by commissioning cogeneration projects and exporting electricity power to grid, around 146 MW i.e. 44.72 % of total cogeneration potential (15 Nos. of Projects)9. There are several barriers due to which the above potential is not being harnessed (only 9.95 % all over India). The project activity had its associated barriers to successful implementation, which have been overcome by SASL to bring about additional green house gas reduction. Further, the project is additional as it overcomes the barriers discussed further in this section: (I) Barriers due to prevailing practice - The project activity was the first of its kind The Indian sugar manufactures have been utilizing their bagasse to produce heat & electrical energy in an inefficient manner by using low/medium pressure boiler (with low electrical & thermal energy efficiency) to generate steam; expand it in extraction cum condensing turbine generator and the total generated electricity is for in house consumption. However, the project activity has adopted a high pressure co-generation technology (87 ata and 5150 C), which is the one of first of its kind in the Tamil Nadu State & in India also (During its implementation)10. (II) Technological Barriers

6 7 8 9 10

http://mnes.nic.in/business%20oppertunity/pgtbp.htm http://mnes.nic.in/business%20oppertunity/pgtbp.htm http://mnes.nic.in/business%20oppertunity/pgtbp.htm Source:http://mnes.nic.in/bmp11pot.htm Source: Cane Cogen India Volume -6

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The typical alternative to the project is to continue meeting the captive power requirements by the existing inefficient medium pressure cogeneration configuration. The project activity has adopted a high pressure co-generation technology (87 ata and 5150 C) and still this technology of high pressure & temperature (Super heated steam) configuration is less penetrated in the Indian sugar sector. The project activity uses a technology, which has low market share and lesser penetration. Low penetrated technology is related to efficiency of major equipments, trouble free plant operation, availability of spares, availability of skilled manpower to operate the plant continuously etc. SASL is one of the first few proponents in Tamil Nadu and host country India, to take up the risk in overcoming the technology barrier by adopting the 87 ata, 5150 C boilers & double extraction cum condensing turbine. Success of the CDM project will provide a trigger for replication in the other sugar mills thus further reducing the GHG emission to the atmosphere. There is also a lack of skilled labour to operate the high pressure cogeneration technology. (III) Investment Barriers It is costly to implement high pressure configuration cogeneration projects as compared to conventional low pressure or medium pressure cogeneration plants and thats the reason why most of the sugar plants in the state as well as the country use low to medium pressure configuration. Most Sugar Companies do not have the creditworthiness to obtain private sector financing for investing in high efficiency cogeneration technology due to cyclical nature of the sugar industry and consequent fluctuation in fortunes. Besides, to protect sugarcane farmers interests, minimum sugar cane price based on the quality of the sugar cane is prescribed statutorily. Due to such interplay of complex forces, generation/sourcing of sufficient funds to finance capital intensive projects, such as the sugar cogeneration project are a difficult proposition and prove as an important barrier. (IV) Other Barriers Another significant barrier is the climatic factor prevailing in the area of the project activity. Unfavorable climate may reduce bagasse availability and affect the profitable operation of the project activity. Severe drought conditions have prevailed in Tamil Nadu, which resulted in substantial reduction in availability of cane. Even in respect of the cane available, the age profile could be such that sustaining the crushing and power generation at workable capacity is restrained even during season.

For their earnings, the co-generation projects in the state depend on payment from TN Electricity Board against the sale of electricity to the grid. It is known that the financial condition of State Electricity Boards in India is not very healthy and it is likely that, this can impact the cash flow to SASL. SASL had to take this risk and face this barrier on which they have limited or no control.

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There is no legal binding on SASL to take up the project activity. The above tests & analysis suggests that the project activity is additional & the anthropogenic emissions of GHG by sources will be reduced below those that would have occurred in the absence of the registered CDM project activity. Sub-step 3 b. Show that the identified barriers would not prevent the implementation of at least one of the alternatives (except the proposed project activity): In the absence of the project activity, the power requirement would have been met from the existing cogeneration power plant & the heat requirement by installing a low pressure boiler. The surplus bagasse would have been unutilized or used for non-energy purpose. No additional investment would have been required. The low pressure technology is an established one in sugar industry and SASL has the necessary expertise, skilled manpower and other resources to operate the plant without any risks associated with the 87ata system. The existing cogeneration power plant was just meeting the captive requirements of steam and power and no sale of electricity to the state grid was involved. Accordingly, Shree Ambika Sugars Limited was insulated from the uncertainties associated with dealing with Tamil Nadu Electricity Board. Hence, the barriers facing the project activity do not prevent the implementation of the alternative which is usual in the sugar industry. B.5.3. Step 4: Common Practice Analysis

SASL identifies and discusses the existing common practice through the following sub-steps: Sub-step 4a. Analyze other activities similar to the proposed project activity: In 2002, when SASL decided to implement the project activity, most sugar mills in Tamil Nadu were using their entire bagasse in low pressure cogeneration to meet their captive energy requirements and did not export to the grid. The common practice in this sector, under the prevailing socio-economic environment, geographic conditions and technological background was the utilization of bagasse for low pressure boilers for in-house consumption, which would have been the case with SASLs sugar plant. However, the prospect of CDM revenue has encouraged SASL to install one of the first 87 ata high pressure cogeneration system in the country. In India: Total numbers of sugar mills in India (Year 2003) Sugar Mills with cogeneration and export of power to grid Total potential available in existing sugar mills Potential harnessed and export power to grid % Potential harnessed and export power to grid In TamilNadu:

: : : : :

453 46 3500 MW 348.23 MW 10%

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Total numbers of sugar mills in TamilNadu (Year 2003) Sugar Mills with cogeneration and export of power to grid Total potential available in existing sugar mills Potential harnessed and export power to grid % Potential harnessed and export power to grid Sugar Mills with similar or better configuration as of SASL at the time of implementations (Year 2003) in Tamilnadu or host country India

: : : : : :

36 15 350 MW 146 MW 41.72 % Not Available

The above table11 shows a very low/no penetration of technology in TN as well as in India at the time of the project implementation. Sub-step 4b. Discuss any similar options that are occurring: The project activity has been implemented by SASL despite the various risks (described above Step 3) associated with the project activity. Tariff policy changes, bagasse availability etc will result in lowered returns to the project activity affecting its financial sustainability. Registering the project activity as CDM project would allow SASL to make the project successful and sustainable which would lead to banks lowering interest rates for similar activities to sugar industries located in the state. This would act as a precursor for other industries to invest in cogeneration technology with wheeling facility leading to further reduction in GHG emission reduction. Successful implementation and running of the project activity on a sustainable basis requires continuous investments in maintenance and technological upgradation. It also requires manpower training and skill development on a regular basis. The project proponent could get the necessary funding from selling the project related CERs. Apart from these, registration of the project under CDM would enhance the visibility and would enable the government in appreciating the GHG emission reduction efforts of the project proponent. This could lead to smoother transactions in future between the project proponent and the utility. Further CDM fund will provide additional coverage to the risk due to failure of project activity or shut down of plant and loss of production in SASL. It is ascertained that the project activity would not have occurred in the absence of the CDM simply because no sufficient financial, policy, or other incentives exist locally to foster its development in Tamil Nadu/India and without the proposed carbon financing for the project, SASL would not have taken the investment risks in order to implement the project activity. Therefore the project activity is additional. Also, the impact of CDM registration is significant with respect to continuity of the project activity on a sustainable basis.

11

Source:http://mnes.nic.in/bmp11pot.htm

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B.6.

Emission reductions: B.6.1. Explanation of methodological choices:

>> The emission reductions are mainly from the incremental energy generation using the same quantity of biomass that would been combusted in the baseline scenario (low pressure cogeneration plant). The incremental energy is exported to the grid and displaces equivalent CO2 emission from grid connected power plants.
Project Emissions: With reference to ACM0006, it is required to account CO2 emissions from the combustion of fossil fuels used by the project activity (during unavailability of bagasse / drought / any other unforeseen circumstances) and that used for transportation of biomass from other sites to the project activity. Such emissions are calculated by using the below equations:

Emission Reductions The project activity mainly reduces CO2 emissions through substitution of power and heat generation with fossil fuels by energy generation with biomass residues. The emission reduction ERy by the project activity during a given year y is the difference between the emission reductions through substitution of electricity generation with fossil fuels (ERelectricity,y), the emission reductions through substitution of heat generation with fossil fuels (ERheat,y), project emissions (PEy), emissions due to leakage (Ly) and, where this emission source is included in the project boundary and relevant, baseline emissions due to the natural decay or burning of anthropogenic sources of biomass residues (BEbiomass,y)as follows: ERy = ERheat,y + ERelectricity,y + BEbiomass,y - PEy - Ly where: ERy = Emissions reductions of the project activity during the year y (tCO2/yr) ERelectricity,y = Emission reductions due to displacement of electricity during the year y (tCO2/yr) ERheat,y = Emission reductions due to displacement of heat during the year y (tCO2/yr) BEbiomass,y = Baseline emissions due to natural decay or burning of anthropogenic sources of biomass residues during the year y (tCO2e/yr) PEy = Project emissions during the year y (tCO2/yr) Ly = Leakage emissions during the year y (tCO2/yr) Project emissions Project emissions include CO2 emissions from transportation of biomass residues to the project site (PETy) and CO2 emissions from on-site consumption of fossil fuels due to the project activity (PEFFy). CO2 emissions from consumption of electricity (PEEC,y) and, where this emission source is included in the project boundary and relevant, CH4 emissions from the combustion of biomass residues (PEbiomass,CH4,y): PEy = PETy + PEFFy + PEEC,y + GWP CH4. PEbiomass,CH4,y where: PETy = CO2 emissions during the year y due to transport of the biomass residues to the project plant (tCO2/yr)

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PEFFy = CO2 emissions during the year y due to fossil fuels co-fired by the generation facility or other fossil fuel consumption at the project site that is attributable to the project activity (tCO2/yr) PEEC,y = CO2 emissions during the year y due to electricity consumption at the project site that is attributable to the project activity (tCO2/yr) GWP CH4 = Global Warming Potential for methane valid for the relevant commitment period PEbiomass,CH4,y = CH4 emissions from the combustion of biomass residues during the year y (tCH4/yr) Carbon dioxide emissions from on-site consumption of fossil fuels (PEFFy) CO2 emissions from combustion of respective fuels are calculated as follows for Scenario 14: PEFFy = (FFproject plant,I,y+ FFproject site,i,y).NCVi.COEFi where: FFproject plant,i,y = Quantity of fossil fuel type i combusted in the biomass residue fired power plant during the year y (mass or volume unit per year)9 FFproject site,i,y = Quantity of fossil fuel type i combusted at the project site for other purposes that are attributable to the project activity during the year y (mass or volume unit per year) NCVi = Net calorific value of fossil fuel type i (GJ / mass or volume unit) EFCO2,FF,i = CO2 emission factor for fossil fuel type i (tCO2/GJ) CO2 emissions from electricity consumption (PEEC,y) CO2 emissions from on-site electricity consumption (PEEC,y) are calculated by multiplying the electricity consumption by an appropriate grid emission factor, as follows: PEEC,y = ECPJ,y . EFgrid,y where: PEEC,y = CO2 emissions from on-site electricity consumption attributable to the project activity (tCO2/yr) ECPJ,y = On-site electricity consumption attributable to the project activity during the year y (MWh) EFgrid,y = CO2 emission factor for grid electricity during the year y (tCO2/MWh) Methane emissions from combustion of biomass residues (PEBiomass,CH4,y) If this source has been included in the project boundary, emissions are calculated as follows: PEbiomass,CH4,y = EFCH4,BF. BFk,y.NCVk where: BFk,y = Quantity of biomass residue type k combusted in the project plant during the year y(tons of dry matter or liter) NCVk= Net calorific value of the biomass residue type k (GJ/ton of dry matter or GJ/liter) EFCH4,BF = CH4 emission factor for the combustion of biomass residues in the project plant (tCH4/GJ) Emission reductions due to displacement of electricity Emission reductions due to the displacement of electricity are relevant for all scenarios and are calculated by multiplying the net quantity of increased electricity generated with biomass residues as a

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result of the project activity (EGy)with the CO2 baseline emission factor for the electricity displaced due to the project (EFelectricity,y)as follows: ERelectricity,y = EFelectricity,y * EGy where: ERelectricity,y= Emission reductions due to displacement of electricity during the year y (tCO2/yr) EGy = Net quantity of increased electricity generation as a result of the project activity (incremental to baseline generation) during the year y (MWh) EFelectricity,y = CO2 emission factor for the electricity displaced due to the project activity during the year y (tCO2/MWh) Step 1: Determination of EFelectricity,y The determination of the emission factor for displacement of electricity EFelectricity,y depends on the type of project activity and the baseline scenario identified and should be determined as follows: For Scenario 14The project activity displaces electricity from other grid-connected sources (P4) or from less efficient plants fired with the same type of biomass residue (P2). Apart from co-firing fossil fuels in the project plant, where relevant, electricity is not generated with fossil fuels at the project site. The emission factor for the displacement of electricity should correspond to the grid emission factor (EFelectricty,y = EFgrid,y) and EFgrid,y shall be determined as follows: If the power generation capacity of the project plant is of more than 15 MW, EFgrid,y should be calculated as a combined margin (CM), following the guidance in the section Baselines in the Consolidated baseline methodology for grid-connected electricity generation from renewable sources (ACM0002). Step 2: Determination of EGy The determination of EGy depends on the type of project activity and the baseline scenario identified and should be determined as follows for the different scenarios: Scenario 14 Where scenario 14 applies, EGy is determined based on the average net efficiency of electricity generation in the project plant prior to project implementation el,pre project and the average net efficiency of electricity generation in the project plant after project implementation el,project plant,y, as follows: Egy = EGprojectplant,y . (1- (el,pre project / el,project plant,y)) where: EGy = Net quantity of increased electricity generation as a result of the project activity (incremental to baseline generation) during the year y (MWh) EGprojectplant,y = Net quantity of electricity generated in the project plant during the year y (MWh) el,pre project = Average net efficiency of electricity generation in the project plant prior to project implementation (MWhel/MWhbiomass) el,project plant,y = Average net energy efficiency of electricity generation in the project plant (MWhel/MWhbiomass)

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The average net energy efficiency of electricity in the project plant (el,project plant,y) should be calculated by dividing the electricity generation during the year y by the sum of all fuels (biomass residue types k and fossil fuel types i), expressed in energy units, as follows: el,project plant,y = EG projectplant,y / (NCVk . BFk,y + NCVi .FFprojectplant,I,y) where: el,project plant,y = Average net energy efficiency of electricity generation in the project plant EGproject plant,y = Net quantity of electricity generated in the project plant during the year y (MWh) BFk,y = Quantity of biomass residue type k combusted in the project plant during the year y (tons of dry matter or liter) NCVk = Net calorific value of the biomass residue type k (GJ/ton of dry matter or GJ/liter) NCVi = Net calorific value of fossil fuel type i (GJ / mass or volume unit) FFproject plant,i,y = Quantity of fossil fuel type i combusted in the biomass residue fired power plant during the year y (mass or volume unit per year) Emission reductions or increases due to displacement of heat In case of cogeneration plants, project participants shall determine the emission reductions or increases due to displacement of heat (ERheat,y)The determination of ERheat,y depends on the type of project activity and the most likely baseline scenario and should be determined as follows Since, thermal efficiency in the project plant is larger or similar compared with the thermal efficiency of the plant considered in baseline scenario thus ERheat,y = 0 Leakage For scenario 14, the diversion of biomass residues to the project activity is already considered in the calculation of baseline reductions. In this case, leakage effects do not need to be addressed.

B.6.2. Data and parameters that are available at validation: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: NCVBf,y Kcal/kg Net Calorific value of fuel (biomass) used in the pre-project scenario SASL datasheets 1847 Kcal/kg NCV = GCV (51.5*H% + 5.72*TM%)12 Where, GCV and NCV in Kcal/kg H Hydrogen TM Total moisture in bagasse NCV is derived from GCV which is followed as per TNERC (Ref TNERC order no 3 dated 15-5-2006-page 81 -Fuel cost) Average GCV is 2300 Kcal/kg. Average Hydrogen is 3.25% and Average total Moisture is 50%

12

ASTM International data

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Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: B.6.3

EF electricity t CO2/MWh Combined margin baseline emission factor of the southern regional grid Central Electricity Authority (CEA) 0.86 As per ACM0002

Refer Annexure 3

Ex-ante calculation of emission reductions:

B.6.3.1 Estimation of GHG emissions by sources: SASLs project activity uses bagasse as the main fuel hence there is zero net GHG emissions. However, fossil fuel may be co-fired and some emissions may be produced as a result. The following tables show the calculation of emission reductions using the formula mentioned in section B.6.1. Project emissions: Emissions due to combustion of fossil fuels in the project activity: S.No 1 2 3 4 Notation FF projectplant,y NCVi COEFi PEFFy Parameter Quantity of coal used Calorific value CO2 emission factor (IPCC) CO2 emissions from coal Unit T/yr Kcal/kg coal t CO2/TJ t CO2/yr Value 7000 4834 96.1 13608.9

Leakage: For scenario 14, leakage is already considered in the baseline calculations and need not be separately addressed. Baseline emissions: Determination of ERy S.No Notation 1 EGy

Parameter Net quantity of increased electricity generation as a result of the

Unit MWh

Value 206798.44

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2 3

EF electricity,y ER electricity,y

project activity (incremental to baseline generation) during the year y (MWh) Baseline emission factor of the grid Emission reductions due to displacement of electricity during the year y (tCO2/yr)

t CO2/MWh t CO2/yr

0.86 177846.66

Emission reductions S.No 4 Notation ER electricity,y Parameter Emission reductions due to displacement of electricity during the year y (tCO2/yr) Project emissions Leakage Emission reductions Unit tCO2/yr Value 177846.66

5 6 7

PEy Ly ERy (4-5-6)

tCO2/yr tCO2/yr tCO2/yr

13608.9 0 164237.76

B.6.4 >> S.No

Summary of the ex-ante estimation of emission reductions: Operating years Baseline emission factor EFy (tCO2/MWh) Net quantity of increased electricity generation as a result of the project activity (increment al to baseline generation) during the year y, EGy (MWh) 206798.44 206798.44 Emission reductions due to displaceme nt of electricity during the year y (ER electricity,y) Project emissions ( tonnes of CO2) PEy Certified Emission Reductions (tonnes of CO2)

1 2

2007-08 2008-09

0.86 0.86

177846.66 177846.66

13608.9 13608.9

164237.76 164237.76

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3 4 5 6 7 8 9 10

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

0.86 0.86 0.86 0.86 0.86 0.86 0.86 0.86

206798.44 206798.44 206798.44 206798.44 206798.44 206798.44 206798.44 206798.44

177846.66 177846.66 177846.66 177846.66 177846.66 177846.66 177846.66 177846.66

13608.9 13608.9 13608.9 13608.9 13608.9 13608.9 13608.9 13608.9

164237.76 164237.76 164237.76 164237.76 164237.76 164237.76 164237.76 164237.76

B.7

Application of the monitoring methodology and description of the monitoring plan: B.7.1 Data and parameters monitored:

Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: Monitoring frequency QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be

BFi,y tons Quantity of Bagasse combusted in the project plant during the year On-site measurements and data sheets of SASL 540000

Using weight meters. The moisture content will be adjusted in order to determine the quantity of dry bagasse. The quantity shall be crosschecked with the quantity of electricity (and heat) generated and any fuel purchase receipts (if available). Continuously; annual energy balance will be prepared The measurements will be crosschecked with an annual energy balance that is based on purchased quantities and stock changes

BFi,y tons Quantity of cane trash combusted in the project plant during the year On-site measurements and data sheets of SASL A negligible amount as compared to bagasse.

Using weight meters. The moisture content will be adjusted in order to determine the quantity of dry cane trash. The quantity shall be crosschecked with the quantity of electricity (and heat) generated and any fuel purchase

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applied: Monitoring frequency QA/QC procedures to be applied: Any comment:

receipts (if available). Continuously; annual energy balance will be prepared The measurements will be crosschecked with an annual energy balance that is based on purchased quantities and stock changes

Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: Monitoring frequency: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: Monitoring frequency: QA/QC procedures to be applied: Any comment:

Moisture content of bagasse % Water content Moisture content On-site measurements Average 50 % of wet bagasse weight

As per ASTM International procedure

Continuously, mean values calculated at least annually Self calibration of electronic weighment instrument. In case of dry biomass, monitoring of this parameter is not necessary. Moisture content of cane trash % Water content Moisture content On-site measurements Average 50 % of wet bagasse weight

As per ASTM International procedure

Continuously, mean values calculated at least annually Self calibration of electronic weighment instrument. In case of dry biomass, monitoring of this parameter is not necessary.

Data / Parameter:

FFproject plant,i,y

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Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: Monitoring frequency: QA/QC procedures to be applied: Any comment:

Tones Quantity of fossil fuel type i combusted in the biomass residue fired power plant during the year y Onsite measurements and SASL data sheets 7000

Weight meters will be used

Continuously Measurements will be crosschecked with an annual energy balance that is based on purchased quantities and stock changes This includes only fossil fuel co-fired in the plant

Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: Monitoring frequency: QA/QC procedures to be applied:

NCVi Kcal/kg Coal Calorific value of fossil fuel IPCC default net calorific values 4834

Measurements shall be carried out at reputed laboratories and according to relevant international standards.

Continuously Consistency of measurements and local / national data will be checked with default values provided by the IPCC. If the values differ significantly from IPCC default values, additional information will be collected or measurements will be conducted.

Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: NCVBf,y Kcal/kg Net Calorific value of fuel (biomass) used in the pre-project scenario SASL datasheets 1847 Kcal/kg

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Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment:

NCV = GCV (51.5*H% + 5.72*TM%)13 Where, GCV and NCV in Kcal/kg H Hydrogen TM Total moisture in bagasse NCV is derived from GCV which is followed as per TNERC (Ref TNERC order no 3 dated 15-5-2006-page 81 -Fuel cost) Average GCV is 2300 Kcal/kg. Average Hydrogen is 3.25% and Average total Moisture is 50% NCVi Kcal/kg bagasse Net Calorific value of biomass residue Measurements 1847 Kcal/kg

Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: Monitoring frequency: QA/QC procedures to be applied:

Measurements shall be carried out at reputed laboratories and according to relevant international standards.

Every 6 months, taking at least 3 samples for each measurement Consistency of measurements and local / national data will be checked with default values provided by the IPCC. If the values differ significantly from IPCC default values, additional information will be collected or measurements will be conducted. NCV is derived from GCV which is followed as per TNERC (Ref TNERC order no 3 dated 15-5-2006-page 81 -Fuel cost) Average GCV is 2300 Kcal/kg. Average Hydrogen is 3.25% and Average total Moisture is 50%

Any comment:

Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5
13

EG projectplant,y MWh Net quantity of electricity generated in the project plant during the year y Onsite measurements and SASL data sheets 246240

ASTM International data

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Description of measurement methods and procedures to be applied: Monitoring frequency QA/QC procedures to be applied:

Measurement by SASL

Continuously The consistency of metered net electricity generation will be cross-checked with receipts from sales (if available) and the quantity of biomass fired (e.g. check whether the electricity generation divided by the quantity of biomass fired results in a reasonable efficiency that is comparable to previous years)

Any comment:

B.7.2 Description of the monitoring plan: >> SASL will incorporate a special team for implementing the monitoring procedures as described in sections B6.2 and B7.1. The team will comprise of relevant personnel from various departments, who will be assigned the task of monitoring and recording specific CDM parameters relevant to their department. The monitored values will be periodically cross-checked by the respective department heads and sent to the CDM team head for compilation and analysis. Any deviation of monitored values from estimated values will be investigated and appropriate action would be taken. The monitored values would be recorded and stored in paper and electronically for verification. Elaborate monitoring information is provided in Annexure 4.

B.8 Date of completion of the application of the baseline study and monitoring methodology and the name of the responsible person(s)/entity(ies) >> Date of completion of baseline study 11th May 2007 Name of responsible person Winrock International India 788, Udyog Vihar Phase-5 Gurgaon- 122001 India wii@winrockindia.org www.winrockindia.org

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SECTION C. Duration of the project activity / crediting period C.1 Duration of the project activity:

C.1.1. Starting date of the project activity: >> December, 2002 C.1.2. Expected operational lifetime of the project activity: >> 25 years C.2 Choice of the crediting period and related information: C.2.1. Renewable crediting period C.2.1.1. >> Not applicable C.2.1.2. >> Not applicable Length of the first crediting period: Starting date of the first crediting period:

C.2.2. Fixed crediting period: C.2.2.1. >> 1st October 2007 C.2.2.2. >> 10 years Starting date:

Length:

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SECTION D. Environmental impacts >> D.1. Documentation on the analysis of the environmental impacts, including transboundary impacts: >> The cogeneration plant uses environmentally sustainable grown bagasse as fuel, which leads to zero net GHG emissions. The GHG emissions of the combustion process, mainly CO2 will be consumed by the sugar plant species, representing a cyclic process. Since the bagasse contains only negligible quantities of other elements like Nitrogen, Sulphur etc. release of other GHG are negligible. The bagasse contains close to 50% moisture and this will keep the temperatures at the steam generator furnaces low enough not to produce nitrogen oxides. A detailed assessment of Environmental Impact due to the project activity has been carried out and the report is available as Enclosure - 1 D.2. If environmental impacts are considered significant by the project participants or the host Party, please provide conclusions and all references to support documentation of an environmental impact assessment undertaken in accordance with the procedures as required by the host Party: >> Host Party regulation requires SASL to obtain environmental clearance in the form of No Objection Certificate from the Tamil Nadu Pollution Control Board (TNPCB). The other condition is that the site of the project has to be approved from the environmental angle and that the Environmental Management Plan (EMP) is to be prepared and submitted to TNPCB. The assessment of environmental impacts due to project activity has been carried out to understand if there are any significant environmental impacts and a management plan has been prepared to minimize adverse environmental impact. The study indicates that the impact of the project activity is not significant. The following documents were obtained from TNPCB for the project activity towards environmental clearance:

Consent under Section 21 of the Air (Prevention and Control of Pollution) Act, 1981 (Central Act 14 of 1981) as amended Consent under Section 25/26 of the Water (Prevention and Control of Pollution) Act, 1974 (Central Act 6 of 1974) as amended

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SECTION E. Stakeholders comments >> E.1. >> Brief description how comments by local stakeholders have been invited and compiled:

SASL conducted stakeholder consultation at their site office on 23rd Feb, 2007 with local stakeholders considering the project as a CDM project. Details of the same are provided as Enclosure 2. The stakeholders identified for the project are: Local village population Tamil Nadu Electricity Board (TNEB) Tamil Nadu Pollution Control Board (TNPCB) Consultants Equipment manufacturers/suppliers Cane growers association

Stakeholder list includes various Government and Non Governmental organizations that are involved in the project activity at various stages. SASL communicated to the relevant stakeholders to provide their comments on the project activity for which the stakeholders have responded with their comments. SASL has received these comments and will produce them during validation. SASL has obtained the necessary clearance from the government for setting up the project activity. E.2. >> Summary of the comments received:

Local Population
The following table shows the possible impacts the project activity could have on local population and measures undertaken by SASL:

Possible impacts Increase in air/Water/Noise pollution resulting in degradation of health and local ecology

Preventive measures Appropriate Flue gas treatment systems, effluent treatment systems and noise reduction systems have been incorporated to ensure outlet noise/emissions are below safe levels.

Improvement in direct employment as operating Positive impact and maintenance staff for the project activity resulting in lesser labour migration from rural areas

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Improvement in the local grid power quality

Positive impact

Thus, the project activity doesnt have any negative impacts on the local population. The panchayat has commended the preventive measures adopted and welcomed the implementation of the project activity in their locality.

TNEB As a buyer of the power, the TNEB is a major stakeholder in the project activity. They hold the key to the commercial success of the project activity. TNEB has agreed to purchase power from the project activity under the Non-conventional sources category and signed Power Purchase Agreement (PPA) with SASL. The two parties have also signed an agreement for parallel operation and supply / purchase of surplus power from SASL on 18th August 2004. The potential threat for TNEB is the disturbance from parallel operation leading to physical and operational damage of the grid. However, SASL has installed the required isolation and safety equipment to prevent such disturbances. TNEB will draw power and therefore pay under the Section 43 of the Electricity (Supply) Act, 1948. TNEB has commended the project as a renewable source of power that helps it to reduce the demand supply gap in the state. TNPCB The TNPCB prescribes certain standards of environmental compliance for the stack emissions, stack height and discharge of effluent from the cogeneration plant. These are elaborated in Section 21 of the Air (Prevention and Control of Pollution) Act 1981 and Section 25/26 of the Water (Prevention and Control of Pollution) Act 1974 (Central Act 6 of 1974). SASL has installed required treatment systems to comply with these norms. The TNPCB has verified these systems and issued consent for operating the plant. Cane growers association The association has given positive comments for the implementation of the project. Equipment manufacturers and suppliers The equipment vendors and suppliers involved in the erection & commissioning of the project activity are aware of the potential risks involved in operating the project activity. They have provided their comments on impacts of the project activity. E.3. Report on how due account was taken of any comments received: >> The comments and important observations in the Detailed Project Document (DPR), environmental clearances and local clearances were considered while preparing the PDD. No corrective action was taken as no negative comments were received. The PDD will be published at the validators website for public comments, as per UNFCCC guidelines.

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Annex 1 CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY Organization: Street/P.O.Box: Building: City: State/Region: Postfix/ZIP: Country: Telephone: FAX: E-Mail: URL: Represented by: Title: Salutation: Last Name: Middle Name: First Name: Department: Mobile: Direct FAX: Direct tel: Personal E-Mail: Shree Ambika Sugars Limited 112 Nungambakkam High Road Eldorado, 5th floor Chennai Tamil Nadu 600 034 India

Chairman & Managing Director Mr. Ram V. Tyagarajan

0091-44-28270470 (FAX) 0091-44-28276001 (Direct) rvt@tasugars.in

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Annex 2 INFORMATION REGARDING PUBLIC FUNDING No public funding for this project activity.

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Annex 3 BASELINE INFORMATION The electricity baseline emission factor (EF electricity,y) is calculated as a combined margin (CM), consisting of the combination of Operating Margin (OM) and Build Margin (BM). The relevant grid for the determination of the combined margin is selected as the Southern region Grid. This is because although electricity generation and distribution remains largely in the hands of the TNEB, the regional grid is becoming more integrated.

CENTRAL ELECTRICITY AUTHORITY: CO2 BASELINE DATABASE VERSION DATE BASELINE METHODOLOGY 1.1 21 Dec 2006 ACM0002 / Ver 06

Simple Operating Margin (tCO2/MWh) (excl. Imports) 2000-01 2001-02 2002-03 North 0.98 0.98 1.00 East 1.22 1.22 1.20 South 1.02 1.00 1.00 West 0.98 1.01 0.98 North-East 0.67 0.66 0.68 India 1.02 1.02 1.02

2003-04 0.99 1.23 1.01 0.99 0.62 1.03

2004-05 0.97 1.20 1.00 1.01 0.66 1.03

Build Margin (tCO2/MWh) (excl. Imports) 2000-01 2001-02 North East South West North-East India Combined Margin (tCO2/MWh) (excl. Imports) 2000-01 2001-02 North 0.76 0.76 East 1.06 1.06 South 0.87 0.86

2002-03

2003-04

2004-05 0.53 0.90 0.72 0.78 0.10 0.70

2002-03 0.77 1.05 0.86

2003-04 0.76 1.07 0.86

2004-05 0.75 1.05 0.86

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West North-East India

0.88 0.39 0.86

0.89 0.38 0.86

0.88 0.39 0.86

0.88 0.36 0.86

0.90 0.38 0.86

PEFFy = PEFFy = (FFproject plant,I,y+ FFproject site,i,y).NCVi.COEFi = 7000 T * 4.834 Kcal/T * 96.1 kg CO2/GJ = 13608.9 tCO2/yr PEy = PETy + PEFFy + PEEC,y + GWP CH4. PEbiomass,CH4,y =0 + 13608.9 + 0 + 0 = 13608.9 tCO2/yr PETy = 0 as there is no GHG emissions due to transport of biomass to the plant. The bagasse is available from the adjoining sugar mill and the small amount of cane trash is transported through bullock carts. PEEC,y = 0 as the electricity used for in-house consumption is renewable and hence there is no fossil fuel consumption to produce the same. PEbiomass,CH4,y = 0 as there is no combustion of biomass residues and hence no Methane is generated. el,project plant,y = EG projectplant,y / (NCVk . BFk,y + NCVi .FFprojectplant,I,y) = 246240 Mwh / {(540000 T *1.847 Kcal/T) + (7000 T * 4.834 Kcal/T)} = 20.54 MWhel/MWhbiomass EGy = EGprojectplant,y . (1- (el,pre project / el,project plant,y)) EGy = 246240 (1-(0.0329/.2054)) = 206798.44 MWh ER electricity,y = 206798.44 * 0.86 = 177846.66 t CO2/yr ERy = ERheat,y + ERelectricity,y + BEbiomass,y - PEy - Ly =0 + 177846.66 + 0 (as per ACM 0006) 13608.9 - 0 (as per ACM 0006)

= 164237.76 t CO2/yr Annex 4 MONITORING INFORMATION The Monitoring and Verification (M&V) procedures define a project-specific standard against which the project's performance (i.e. GHG reductions) and conformance with all relevant criteria will be monitored and verified. It includes developing suitable data collection methods and data interpretation techniques for monitoring and verification of GHG emissions with specific focus on

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technical / efficiency / performance parameters. It also allows for review, scrutiny and benchmarking of all this information against reports pertaining to M & V protocols. The M&V Protocol provides a range of data measurement, estimation and collection options/techniques in each case indicating preferred options consistent with good practices to allow project managers and operational staff, auditors, and verifiers to adopt the most practical and costeffective measurement approach to the project. The aim is to enable this project have a clear, credible, and accurate set of monitoring, evaluation and verification procedures. The purpose of these procedures would be to direct and support continuous monitoring of project performance/key project indicators to determine project outcomes, i.e greenhouse gas (GHG) emission reductions. The project revenue is based on the units exported as measured by power meters (1 main meter and 1 check meter) at plant. The monitoring and verification system would mainly comprise of these meters as far as power export is concerned. The export of electricity will be verified through invoices to TNEB. The invoices, based on meter readings will also be covered in the regular finance audit. The monitoring of the quantity of bagasse used will produce evidence that energy is being generated with zero net CO2 emissions. The project employs the latest state of the art monitoring and control equipment that will measure, record, report, monitor, and control various key parameters. Parameters monitored will be quantity and quality of bagasse fuel used, total power generated, power exported to the grid, etc. All monitoring and control functions will be done as per the internationally accepted standards and norms. The instrumentation systems for the project are of reputed make with desired level of accuracy. All instruments will be calibrated and marked at regular intervals so that the accuracy of measurement can be ensured at all times. GHG SOURCES Direct On-Site Emissions Consumption of fossil fuels during drought or bagasse unavailability is a potential source of emissions. SASL has adopted appropriate monitoring methods to record the quantity of coal used in such circumstances and the same will be discounted from the emission reductions. Direct Off-Site Emissions Direct off-site emissions from the project could arise from the biomass transport. Since the bagasse is produce on site, there is no need for transportation of bagasse and hence these emissions can be neglected. 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 bagasse based power plant. Considering the life cycle assessment of the total power generated and the emissions to be avoided in the life span of 20 25 years, emissions from the above mentioned source are too small and hence neglected. No other indirect on-site emissions are anticipated from the project activity.

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Indirect Off-Site Emissions The indirect off-site GHG source is the emission of GHGs that are involved during construction and erection of the transmission lines from the nearest sub station, to the point from where the project generates the power. Same as above, considering the life cycle assessment of the total power generated and the emissions to be avoided in the life span of 1520 years, emissions from this source are also too small and hence neglected. The other indirect off-site emissions could occur as a result of increase in fossil fuel usage due to diversion of biomass from other activities. SASL will produce documentary proof that no such diversion is resulted from the project activity and that the biomass used would have been otherwise left to decay. In case this could not be established, equivalent quantity of emissions would be calculated and discounted from the emission reductions. Frequency of monitoring The project developer will install all metering and check metering facilities within the plant premises. The measurement will be recorded and monitored on a continuous basis by both TNEB and the project promoter. Reliability The amount of emission reduction units is proportional to the net energy export from the project. Thus the final export KWh meter reading is the final value from project side. All measurement devices are microprocessor based with best accuracy and procured from reputed manufacturers. 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 will 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. Hence, the system ensures that the final generation is highly reliable. Registration and reporting Registration of data is on-line in the control cabin through a microprocessor. However, hourly data logging will be there in addition to software memory. Periodic reports are prepared stating the generation details. In addition to the records maintained by SASL, TNEB also monitors the power exported to the grid and certifies the same. The other major factors, which need to be ensured and monitored, are: the use of bagasse (and if required other biomass) fuel for power generation and the parameters that would ensure smooth and regular operation of the cogeneration. No other project specific indicators that affect the emission reductions claims are identified. Bagasse Requirement and Utilization The total amount of bagasse received by the cogeneration unit from sugar mill is based on the total sugar cane crushed, bagasse generated and use for internal consumption. The crushed bagasse from the existing mill house is fed through conveyors to the boilers. It is mandatory for sugar industries to

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submit yearly performance record (RT-8C form) to the government, which includes above parameters. These figures are to be crosschecked with the weighment record from the belt weigher. Bagasse used in the Boiler The main type of fuel proposed for the power generation is bagasse. The properties of the bagasse fuels like ultimate analysis, calorific value, ash composition etc. are already established and will be consistent in the region. However, it is proposed to monitor various properties of bagasse fuels by taking samples at random from the fuel lots from the processed fuel so that in case of any drastic change in the properties, corrective actions can be taken. TNERC (Tamil Nadu Electricity Regulatory Commission) has taken the bagasse calorific value as 2300 Kcal/Kg to arrive at the price of electricity produced from Bagasse cogeneration power plants. This value of 2300Kcal/Kg can be taken at 50% moisture bagasse. The bagasse moisture can be tested in the laboratory. The testing facility for moisture is available. (Ref TNERC order no 3 dated 15-5-2006-page 81 -Fuel cost)

Enclosure 1 Report on Environmental Impact The environmental impacts can be either classified as primary or secondary impacts. Primary impacts are those that can be attributed directly to the project itself while secondary impacts are those, which are induced directly because of the development activity which may be triggered by the primary impact. The secondary impacts typically include the associated investment and changed patterns of social and economic activity by the project activity. The impact of the project on the environment can occur at 2 stages: 1. Construction Phase 2. Operational Phase
Environmental impacts during construction phase:

The environmental impacts due to the construction of the project activity are as given below:

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Air quality impact: Particulate emissions from site clearing Particulate emissions from offsite quarrying operations Vehicular emissions (NOx, SO2, SPM) from transportation of raw materials such as cement, sand, gravel etc. Particulate emissions from various construction activities including pre-casting, fabrication, welding etc.

Noise level increase: From earth moving equipments used for site clearing From offsite quarrying operations From transporting raw materials including cement, sand, gravel etc From onsite construction activities

Land and soil impacts:

From change/ replacement of previous land-use by site clearing From soil erosion due to vegetation removal From solid wastes disposed on land from construction activities

Water environment impacts

From consumption of water for construction purposes

Impacts on ecology

Removal of vegetation at the site

Impacts on socio-economic environment

Employment opportunities to local people

The above represents a broad range of environmental impacts that occurred during the construction phase of the cogeneration plant. The environmental impacts from the above activities were minimized by implementing the mitigation measures during the construction. It should be noted that the impacts due to construction activities are usually short-term and cease to exist beyond the construction phase.
Impacts during operational phase

The operational phase of the project activity involves power generation from bagasse used as fuel. The cogeneration plant feeds surplus power to the grid and indirectly prevents the pollutants that would otherwise have been released into the atmosphere from the thermal power plants (coal, gas and

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diesel based) of the State grid. Also, bagasse being a biomass (a renewable fuel) does not add any net CO2 to the atmosphere as the carbon gets recycled during cane growth. The optimal utilization of bagasse by the cogeneration plant avoids and prevents the pollution from other alternative methods of bagasse disposal practiced in sugar plants i.e. inefficient burning of bagasse in boilers or allowing it to decompose, which would lead to more dust and GHG emissions when compared to the present project activity. The impacts during operational phase of the project activity are as given here: Air quality impacts The main sources of air emissions from the cogeneration facility that may affect the ambient air quality in the project area include: Emissions from the boilers Fugitive emissions from various plant activities Thermal rise plume from the cooling towers

Emissions from the boilers Sulphur dioxide emissions As the sulphur content of bagasse is almost nil, no SO2 emissions are expected in the flue gases during bagasse firing. Nitrigen oxides emissions The generation of NOX generally takes place when the temperature of combustion is high. However, the temperature encountered in the multi-fuel boilers, while burning high moisture bagasse is low enough not to produce NOX. Moreover, the boilers are overfire air system with staged combustion which will also ensure reduction in NOX emissions. Particulate matter emissions Ash content of bagasse is approximately 1.5 2% and therefore there would be particulate matter emissions during bagasse firing. Corresponding to an ash content of 2% in bagasse, the uncontrolled particulate matter concentration at boiler outlet would be in the range of 4500-4700mg/Nm3. A high efficiency Electrostatic Precipitator (ESP) is attached with each of the boilers to bring down the emission levels to the stipulated standard of 150mg/Nm3. Fugitive emissions from various plant activities There would be fugitive dust generation within the facility premises due to fuel storage and its movement on belt conveyors, ash handling etc. Some fugitive emissions would be from bagasse and bagacillo piles, bagasse transfer points etc. These emissions are minimized by providing belt conveyors with hoods made of suitably coated steel plates. The ash from the hoppers to the silo is transported by dense phase pneumatic handling/screw feeder handling system. However, there may be some upliftment of fly ash due to high velocity winds. To control these emissions, the ash would be disposed off from the facility as soon as possible. Also the coal purchased from outside would be transported by trucks and would reach the storage yard from a separate entrance thus avoiding dust nuisance in the main plant area, during the off-season operation. Noise Quality Impacts

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The project activity is expected to affect the existing noise levels in the vicinity of the project site. An additional source of noise is the sugar plant. However, the contribution of noise from sugar mill is reduced due to the decommissioning of the low pressure boilers and turbo-generators and there would be no contribution during off-season. The main sources of noise would be the pumps, compressors, mixers, boilers, turbines, cooling towers, turbo generators, DG sets, increased vehicular movement etc. The facility is located very close to the road and as the background noise levels in the road have been recorded to be high, appropriate preventive and engineering control measures have been taken to ensure compliance with the stipulated noise level standards. Water Quality Impacts The main activities associated with the project activity that may impact the water environment include the following: Groundwater abstraction to meet the water requirements of the facility Wastewater disposal from the facility into any of the surface water bodies

Groundwater abstraction to meet the water requirements of the facility The raw water requirement for the facility will be primarily to makeup for the losses in the process steam supplied to the sugar plant, boiler blow down, cooling water blow down, service water etc. The total makeup water requirement is estimated to be about 4600m3/day. The raw water supplied to the project activity is being sourced from 3 bore wells in the complex which are enough to meet the requirements of the project activity. The water from the bore wells are stored in a raw water storage tank of 2400 m3 capacity which is estimated to be enough to meet about 24 hrs water requirement of the project activity. The main source of water in the project area for domestic, agricultural and industrial usage is the groundwater. The main usage of groundwater being for agriculture and main crops being sugarcane and paddy. The farmers in the project area are largely dependent on ground water for meeting the irrigation water requirements for these crops. Over 70% of the sugarcane cultivated in this area is reported to be irrigated by existing open wells and bore wells. For more than 35 years, the sugar plant is also using ground water to meet its water requirements. The project activity is fully dependent on the sugarcane production in the area for its own survival. Therefore, SASL fully recognizes that any adverse impact on the availability of ground water or its quality would affect the viability of the project activity. Wastewater disposal from the facility into any of the surface water bodies The potential impacts due to wastewater disposal may be due to discharges of untreated wastewater into nearby surface water bodies or drains or to open lands. In case of the project activity, the treated waste water would be discharged for irrigation purposes. The land to be used for this purpose is owned/leased by SASL and is the same land on which SASL grows its sugarcane. No adverse impact has been reported on the ground water quality in the area

where power plant water is

used for irrigation. The treated effluent complying with the prescribed discharge norms of
TNPCB, is used for gardening and green development and the excess water is discharged on to SASLs agricultural land for irrigation purposes. For controlling thermal pollution, a closed circuit cooling water system with cooling towers is used. This would eliminate the need for discharging high temperature water into receiving water bodies and would thereby prevent thermal pollution. The blow down from the cooling tower is conveyed to the

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collection sump. Hence, there would be no separate pollution on account of blow down from the cooling water system. Adequate care is taken to ensure that the individual wastewater streams from the facility are appropriately treated before mixing with the treated effluent. The details of the treatment provided to the individual wastewater streams are as follows: The domestic wastewater from various buildings in the facility is conveyed to the septic tank through separate drains. The soil in the area is of sandy loam type and no operational problems have been experienced in the septic tanks. Sludge is removed periodically from the septic tanks, allowed to dry, and used as organic manure either for gardening within the premises or in the sugarcane fields. The process waste water generation from the project activity is from three sources namely cooling tower blow down water, RO plant regeneration wastewater and boiler blow down water. The boiler blow down water is reused in the cooling tower. Cooling tower blow down water and RO plant sugar concern in the effluent from the project activity is Total Dissolved Solids (TDS) and pH. After neutralization and mixing, the TDS concentrations in the final effluent are well within the stipulated limits of TNPCB. Impact on Land Environment The potential impacts on the land environment include Change in land use pattern in the area The impact of air emissions, effluent disposal and solid waste disposal etc. on the soil quality thereby affecting the land environment

waste water are used for gardening and as fire water. Excess water is taken to the cane field separately for irrigating the sugar cane fields. The main parameter of

Change in land use pattern in the area The Project activity is part of SASLs existing industrial complex and therefore there is no land acquisition or change in land use pattern due to it. The impact of air emissions, effluent disposal and solid waste disposal etc. on the soil quality thereby affecting the land environment The treated effluent complying with the prescribed discharge norms of TNPCB, is used for gardening & green development and the excess water is piped to SASLs agricultural land for irrigation purposes. The final effluent would comply with the stipulated standards for discharge onto land for irrigation purposes and is not expected to have any negative impact on the soil quality or agricultural productivity The bagasse ash from project activity is currently being disposed of in the neighbouring sugarcane fields. As bagasse ash contains good amount of sodium, potassium and other nutrients, it has been used by the farmers in the area as an organic fertilizer and as an effective soil enricher. Bagasse ash (fly ash) is also being sent to the nearby cement plant. Impact on the Socio-Economic Environment The Project activity has an impact on the socio-economic environment in the project area. Though most of the socio-economic impacts of the facility would be positive there are cases when a

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developmental activity may have negative impacts involving land acquisition and displacement of people etc. In this case, however, the land for the cogeneration facility is part of SASLs existing industrial complex and therefore no land acquisition or rehabilitation aspects are involved. The potential positive impacts of the proposed project include better employment opportunities during construction and operational phases of the project and an overall improvement in their quality of life due to better civic amenities and welfare activities started by the industry etc. The requirement of unskilled labour during construction phase was 150 and currently in the operational phase there is a manpower requirement of 200 people. There are also an additional 800 job opportunities by way of trading, new transportation facilities, new ancillary units and other allied amenities etc. These employment opportunities and additional industrial activities in the area considerably help improve the living standards of local community due to their additional income. Due to the better affordability of the local communities, other facilities such as telecommunications, transportation, electricity, healthcare, education etc. have also improved. The improved voltage conditions due to installation of the power plant and supply to the nearby grid has resulted in energy efficient agricultural system for the surrounding villages. Impact on the Biological Environment The impacts on the biological environment i.e. on flora and fauna in the project area are expected to be minimal. There are no ecologically sensitive areas such as wildlife sanctuary, biosphere reserves, or national parks, near or within the study area. Also, there is no forest land within or near the location of the project activity. Most of the area near the proposed site is under agricultural usage. During the baseline surveys, no endangered species of flora and fauna were noted in the project area. The existing status of biological environment is therefore expected to continue to prevail even after the commencement of the project activity.

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Enclosure 2

The following stakeholders attended the stakeholder consultation meeting at SASL project site office on 23rd Feb, 2007:

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Stakeholder meeting being conducted at the SASL site office -

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Appendix 1 Abbreviations

BHEL CDM CEA CER CO2 DPR ESP GHG EB GWH IPCC Km KV KWh LULUCF MU MNRE MT MW NOx PLF PPA PIN SASL SO2 SPM TA

Bharat Heavy Electricals Ltd. Clean Development Mechanism Central Electricity Authority Certified Emission Reductions Carbon di-oxide Detailed Project Report Electro Static Precipitator Greenhouse Gas Executive Board Giga Watt hour Intra-governmental Panel for Climate Change Kilo meters Kilo Voltage Kilo Watt hour Land Use Land use Change and Forestry Million units Ministry of New and Renewable Energy Metric Ton Mega Watt Nitrogen Oxides Plant Load Factor Power Purchase Agreement Project Idea Note Shree Ambika Sugars Ltd. Sulphur Di-oxide Solid Particulate Matter Thiru Arooran Sugars

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TCD TDS TG TJ TNEB TNERC TNPCB TNPL TPH UNFCCC

Tones of Crushing per day Total Dissolved Solids Turbo Generator Trillion Joules Tamil Nadu Electricity Board Tamil Nadu Electricity Regulatory Commission Tamil Nadu Pollution Control Board Tamil Nadu Newsprint & Papers Ltd Tones per hour United Nations Climate Change Framework Convention on

Appendix B
Reference List Sr.No Particulars of the references

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Kyoto protocol / UNFCCC Related 1. Kyoto Protocol to the United Nations Framework Convention on Climate Change 2. Website of United Nations Framework Convention on Climate Change (UNFCCC), http://unfccc.int 3. UNFCCC Decision 17/CP.7: Modalities and procedures for a clean development mechanism as defined in article 12 of the Kyoto Protocol. Project Related 4. Detailed Project Report on 40 MW Non-Conventional renewable sources bagasse Cogeneration Power Plant at SASL. 5. Various project related information / documents / data received from SASL. Baseline Related 6. CMIE published document of April 2002 on Energy, which includes the detailed data of Energy sector of India. 7. Website of Center for Monitoring Indian Economy (CMIE) Pvt. Ltd., Mumbai, India www.cmie.com 8. Website of Central Electricity Authority (CEA), Ministry of Power, Govt. of India www.cea.nic.in 9. CEA published document Fifteenth Electric Power Survey of India 10. CEA published Report on Power on Demand by 2012, Perspective plan studies 11. CEA Report on, Fourth National Power plan 1997 2012. 12. Website of Ministry of Power (MoP), Govt. of India www.powermin.nic.in 13. Website of Ministry Non-Conventional Energy Sources (MNES), Govt. of India www.mnes.nic.in 14. Website of Indian Renewable Energy Development Agency (IREDA), www.ireda.nic.in 15. Official website of Government of Tamilnadu http://www.tn.gov.in 16. Infraline web site. http://www.infraline.org 17. South India Sugar Manufacturers Assosiation (SISMA) 18. www.indianelectricity.com 19. Cane Cogen India, Volume -6

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