Académique Documents
Professionnel Documents
Culture Documents
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B.
C.
D.
E.
F.
Environmental impacts
G.
Stakeholders comments
Annex
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Purpose:
The purpose of project is to upgrade the existing plant technology with energy efficient technology
and to reduce the Specific Steam Consumption Ratio (SSCR) of Ammonia plant of Urea fertilizer
units. The project activity is implemented in 3 Urea fertilizer units of IFFCO at locations -Kalol,
Phulpur, Aonla (hereafter referred to as IFFCO plants). There are various projects in the plants fall in
the category of new technology alternatives, retrofits, new design and waste heat recovery. Since the
energy efficiency projects are being implemented in various sections of Ammonia plants, the
performance of one project is linked to other project. Therefore the technology supplier and
consultant recommend that these projects should be implemented in all plants of IFFCO in an
integrated manner to achieve maximum energy savings. These projects essentially target the reduction
of steam consumption in plant, which would in turn lead to lower specific steam consumption of plant
and hence would result in reduction in fuel fired (coal, natural gas , naphtha , Low Sulphur Heavy
Stock (LSHS)) in the boilers. This will reduce CO2 emissions in each plant. The project has large
replication potential and can be followed by other fertilizer plants for further substantial reduction in
CO2.
Projects Contribution to Sustainable Development
The project activity to be implemented in IFFCO plants, contributes positively to the sustainable
development of India in following ways:
The project activity uses energy efficient technology in ammonia plant and reduces fossil fuel
consumption resulting in benign environment (CO2 emission reduction) & conserving nonrenewable resources. Thus the project aids in environmental well being.
Project activity would marginally increase employment opportunity for semi-skilled, skilled labour
and professionals in the region during construction phase. Therefore contributing social well being
aspects. The project will create a business opportunity for local stakeholders such as suppliers,
contractors, bankers etc. contributing to economic well-being aspects.
The project positively contributes towards the reduction in demand for Indias carbon intensive
energy resources as well as adoption of energy efficient technology and resource conservation.
Indian economy is highly dependent on coal / natural gas as fuel to generate energy and for
production processes. The project activity reduces fossil fuel consumption for boilers and saving on
non-renewable coal / natural gas / naptha/ LSHS, positively contributes towards the reduction in
use of these finite resources and therefore making it available for important processes.
The project will help the company to maintain its status of being one of the most progressive
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companies of India due to adoption of latest technology and its efforts for sustainability. Adoption of
higher technology helps in capacity building of employees by better exposures.
This project activity is located in a rural setting and contributes to the environmental and social issues
locally and globally through:
Reduces consumption of fossil fuels by adopting energy efficient technologies
Conserving Coal and LSHS in Phulpur, Natural gas in Aonla and Naphtha and Natural Gas in
Kalol plants, thereby reducing the pace of depletion of natural resources.
Making coal / natural gas / naptha/ LSHS available for other important economic applications
Reducing Green House Gases (Carbon Dioxide)
Contributing to marginal increase in the local employment in the area of skilled / unskilled jobs
during construction phase of the project activity & ameliorating economic status of the rural
community
Aids in capacity building of higher technology for employees
Providing a highly replicable, efficient model to other fertilizer plants in the country
A.3.
Project participants:
Name of Party involved Private and/or public entity Kindly indicate if the Party
((host) indicates a host Party) (ies) project participants(as involved wishes to be
applicable)
considered as
project
participant (Yes/No)
India (Host)
IFFCO ( Private entity )
No
Japan
Japan Carbon Finance, Ltd. No
(Private entity )
A.4.
>>
A.4.1.1.
Host Party(ies):
India
A.4.1.2.
i) Site 1- Gujarat
ii) Site 2-Uttar Pradesh
iii) Site 3-Uttar Pradesh
Region/State/Province etc.:
A.4.1.3.
i) Site 1- Kalol, City-Gandhinagar
ii) Site 2- Phulpur City-Allahabad
iii) Site 3- Aonla City-Bareilly
City/Town/Community etc:
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For the ease of understanding the following Table 1 is prepared to depict the name of each project and
corresponding locations, where these are implemented.
Page 6
Sr.
No
Aonla I
Aonla
II
PhulpurI
PhulpurII
Kalol
New Low Temperature (LT) shift guard, Boiler Feed Water (BFW) preheater
Installation of S-50 radial flow Synthesis Converter and High Pressure (HP) / Medium Pressure (MP) Boiler
Improvement in outlet systems for High Temperature (HT) / Low Temperature (LT )Shift Converters
Modification of HT Steam Super Heat Coil in Waste Heat Section of Primary Reformer at Aonla-II
10
11
12
13
14
15
16
in Ammonia-II of Aonla
4
The location of the projects (in each section of Ammonia plant) is depicted separately in project boundary (Refer section B.4 in this PDD).
page 7
The technical description of energy efficiency schemes implemented in different units of IFFCO
is given below. The projects are descried below in brief, due to their complex nature and
detailed flow charts of schemes are not given as annexure to this PDD for the confidentiality
reasons. However, the flowcharts along with all technical details of schemes would be made
available to Designated Operation Entity during Validation and Verification phases of CDM
project activity.
1. New Low Temperature (LT) shift guard, Boiler Feed Water (BFW) preheater
A new LT shift guard would be installed before LT shift converter in order to reduce the
Carbon mono-Oxide (CO) slippage from the section without increasing the pressure drop
across the section. On an average, the CO slip after LT shift converter, once the LT shift guard
is installed would be lower i.e. 0.10-0.15% as against 0.25-0.30% (the present scenario)
without LT shift guard. Lower CO slip would in turn result in additional ammonia production
due to reduction in the consumption of Hydrogen in Methanator for converting all carbon
oxides into inert Methane before entering Ammonia Synthesis loop. The Ammonia production
would be kept constant; in turn the feed (Naphtha, Natural Gas) would be reduced. The
reduction in feed results in subsequent reduction in steam consumption.
Also a new BFW preheater would be installed at down stream of the new LT shift guard in
order to control the inlet temperature to the LT shift converter. The new BFW preheater would
improve the heat gain in BFW for the production of High Pressure (HP) steam and temperature
control in the LT shift section. With the installation of LT shift guard, it would be possible to
short load the existing LT shift converter and reduce the pressure drop across the converter.
This scheme is to be implemented in Aonla unit I & II , Phulpur unit I & II, Kalol Plant.
2. Installation of S-50 radial flow Synthesis Converter and High Pressure (HP) / Medium
Pressure (MP) Boiler
A new S-50 converter would be installed at the down stream of existing Ammonia Synthesis
Converter. The new converter would increase the ammonia conversion per pass thereby
reducing the amount of recycled gas entering the synthesis compressor and reducing the load on
compressor. The reduced load on the synthesis compressor leads to lesser steam consumption
for compressor operations.
In Aonla-I, Aonla-II and Phulpur-II, a new HP waste heat boiler would be installed at the
downstream of existing converter for utilisation of reaction heat generated in the existing
converter. The existing HP waste heat boiler would utilize the heat of reaction from the new S50 converter.
In Phulpur-I and Kalol , a new MP waste heat boiler would be installed at the downstream of
S-50 converter for utilization of the reaction heat generated in the S-50 converter.
3. Installation of Make-up Gas Chiller
In the existing system make up gas is cooled to 35 0C before being compressed in the synthesis
gas compressor. It is proposed to install a make up gas chiller at the down stream of final gas
cooler to cool the make up gas to 6-8 0C. This would increase the volumetric efficiency due to
lower inlet temperature of make-up gas leading to reduction in steam consumption in the
synthesis gas compressor for the same work output.
This scheme is to be implemented in Aonla unit I & II , Phulpur unit I & II .
4. Synthesis Gas Compressor LP (Low Pressure) & HP case Internal Replacement
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The present Compressor is of mid 1970 design and the operating conditions has changed since
then. The new internals of LP & HP case shall be designed to meet the new operating
conditions with better compression efficiency based on modern 3-D design. Hence the
combined efforts of matching of the system & operating conditions, improvement in efficiency
leads to lesser steam consumption in the synthesis compressor. This scheme is to be
implemented in Kalol Plant and Phulpur Unit - I
5. Drying of Make-up Gas and Synthesis Loop Re-piping
The Ammonia synthesis catalyst gets poisoned if oxides of carbon or water vapour are present
in the converter inlet gas. Currently, to remove these oxides, the fresh makeup gas is mixed
with recycle gas containing ammonia. The recycle and makeup gas mixture is then cooled and
chilled. By means of this, process oxides present in the makeup gas get dissolved in the
ammonia and separated out. Thus making the converter inlet gas free from oxides and is fed to
the synthesis converter. The present system has a disadvantage because the ammonia formed in
converter is compressed in synthesis compressor and chilling of complete make up gas is done
for which relatively higher power is consumed.
Installation of ammonia wash unit between LP & HP case of Synthesis Compressor and
synthesis loop repiping would reduce the power consumption in synthesis and refrigeration
compressor as the ammonia would be condensed at the Synthesis Converter outlet and make up
gas would be fed directly to the Synthesis Converter. The reduction in power consumption of
synthesis compressor leads to steam consumption reduction.
This scheme is to be implemented in Phulpur unit I & Kalol Plant.
6. Improvement in outlet systems for High Temperature (HT) / Low Temperature
(LT )Shift Converters
The present outlet system of HT / LT shift Converters are having Elephant Stool, which would
be modified with the improved design of HTAS. With this modification, it is expected that the
pressure drop in the reactor would reduce. The lower pressure drop would result in higher
suction pressure for the synthesis gas compressor and there would be reduction in power
consumption in the compressor leading to steam consumption reduction.
This scheme is to be implemented in LT shift converters and Methanator of Phulpur unit I and
for Kalol plant the scheme is to be implemented both in LT & HT shift converters at next
opportunity of catalyst replacement.
7. Complete revamping of CO2 removal system to a modern two-stage GV process at
Aonla-I
The present CO2 removal system is designed for one stage absorption process. It is proposed to
modify the single stage GV process to two-stage GV process for reduction of energy
consumption. The main features of two-stage GV process are the lean and semi lean
absorption, high pressure and low-pressure stripping. A new LP stripper would be installed
where the solution would be regenerated by flashing instead of reboiling/steam heating , thus
reducing the steam consumption for regeneration of the solution in the stripper. Also with the
above modification a better absorption is obtained and more pure CO2 product would be
available with lower regeneration energy.
8. Installation of additional Process Condensate (PC) / PC Exchanger at Aonla-II
During the cooling of process gas, condensate is separated. This process condensate contains
dissolved gases like ammonia and carbon dioxide. These gases are removed from the process
condensate by stripping the condensate in the MP Process Condensate Stripping unit by MP
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steam. The hot condensate after stripping is cooled in two exchangers and sent to
Demineralized water plant.
Presently the outlet temperature of process condensate from condensate feed/effluent exchanger
going to Stripping remains around 2050C as against the design temperature of 2280C.In view of
above, it is proposed to provide an additional exchanger to heat the process condensate to
2280C thus extracting the maximum heat from the stripped process condensate coming from
stripper.
9. Modification of HT Steam Super Heat Coil in Waste Heat Section of Primary Reformer
at Aonla-II
The HP steam super heat coils are designed to give HP steam at temperature of 525 0C.
However presently the temperature of HP steam at the exit of super heater coils remains around
491 0C. In view of the above, it is proposed to modify the HP Steam Super Heat Coil to raise
the temperature of the HP steam close to design value and thereby have more efficient
operation with less steam consumption.
10. New Combustion Air Module in Waste Heat Section of Primary Reformer
Ammonia-II of Aonla
in
It is proposed to provide additional air preheating modules in the waste heat section to recover
more heat duty from the flue gases. The existing Combustion Air Pre-heater is having a dummy
section and therefore can accommodate additional modules. Thus by providing additional
modules in dummy section of existing Combustion Air Pre-heater the heat transfer surface area
will increase and there will be reduction in flue gas temperature from 1530 C to around 1380 C.
The additional heat transfer in combustion air pre-heater will result in lower specific energy
consumption owing to less fuel gas consumption.
11. Closing steam balance for Aonla unit I
With the implementation of energy saving schemes, there would be reduction in LP steam
consumption and LP steam will be surplus. Presently most of the LP steam is available through
back pressure turbines.
It is proposed to change the back pressure turbines (GV Booster pump turbine and Ammonia-I
Cooling water pump turbine) to motors in order to reduce the LP steam availability from back
pressure turbines. This will help in utilizing the LP Steam available from implementation of
energy saving schemes like complete revamping of CO2 system to 2-stage GV system.
12. Closing steam balance for Aonla unit II
With the implementation of energy saving schemes, the following turbines will be changed to
motor to close the steam balance
One Turbine for Ammonia-II Cooling water pump
One Turbine for Urea-II cooling water pump
13. Complete revamping of CO2 removal system to a modern 2-stage GV process at
Phulpur - I
The present CO2 removal system is based on Low Heat Benfield system. It is proposed to
modify the same to a 2-stage GV process for reduction of energy consumption.
The main features of 2-stage GV process are the lean and semilean absorption, high pressure
and low-pressure stripping in two stripping towers, which are presently operating in parallel at
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same operating pressure. The LP stripper would be installed where the solution would be
regenerated by flashing instead of reboiling/steam heating, thus reducing the steam
consumption for regeneration of the solution in the stripper. This would lower the energy
consumption for regeneration of the solution in the strippers considerably.
A new CO2 blower shall be installed at LP stripper outlet to match the HP stripper outlet CO2
pressure for CO2supply to urea plant.
With the above modification, a better absorption would be obtained and more pure CO2
product would be available with lower regeneration energy.
14. Revamping of CO2 removal system to 2-stage a-MDEA process at Kalol
A large energy saving can be obtained by changing the present a-MDEA based system from
one stage CO2 removal system to the a-MDEA two stage system. The system includes a twostage absorption, low pressure and high pressure flash and stripping. The introduction of LP
and HP flash vessels reduces the energy for regeneration of the solution and improves the
quality of the CO2 product. In flash vessels where the solution would be regenerated by flashing
instead of reboiling / steam heating, thus reducing the steam consumption for regeneration of
the solution in the stripper.
It is foreseen to install a complete new absorber having both lean and semilean absorption.
15. Revamp of Induced Draft (ID) Fan Drive Turbine at Kalol
For closing and optimizing the steam balance, existing back pressure ID fan turbine is
proposed to be modified to condensing one with a provision of atmospheric venting during
plant startup. The conversion of backpressure turbine to condensing type would result in lesser
steam consumption for the same work output.
16. Closing steam balance for Kalol Plant
With the implementation of energy saving schemes, there would be reduction in HP steam
consumption and LP steam consumption and LP steam would become surplus. HP steam
generation can be reduced at the source of generation i.e. in Ammonia Plant itself or from Offsite Boilers. However, LP steam generation available through back pressure turbines which are
used for driving pumps etc. shall remain.
Any modification required to utilize the LP steam available from implementation of energy
saving schemes like complete revamping of CO2 system would be carried out. Improved BFW
heating shall also be done so as to optimise the complete steam system.
A.4.4. Brief explanation of how the anthropogenic emissions of anthropogenic greenhouse
gas (GHGs) by sources are to be reduced by the proposed CDM project activity,
including why the emission reductions would not occur in the absence of the proposed
project activity, taking into account national and/or sectoral policies and circumstances:
The project adopts energy efficient technology measures in ammonia plant and reduces SSCR
(Specific Steam Consumption Ratio) of ammonia plant. The reduction of SSCR would lead to
reduction in fossil fuels consumption in the boilers, which would in turn reduce CO2 emissions
of IFFCO plants. In absence of the project activity, IFFCO plants would continue to have high
SSCR leading to higher GHG emissions. By implementing the project activity, IFFCO
proposes to reduce the SSCRs levels by following manner:
Sl No
IFFCO plant
SSCR
Ton of steam consumed /
Ton of ammonia produced
Annual
CO2
Emission reductions
(tons/ annum)
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Baseline
Project
Aonla- I
4.29
3.44
Aonla-II
4.29
3.86
Phulpur-I
6.32
5.54
Phulpur-II
4.57
4.54
Kalol
5.64
4.33
75,138
76, 801
110,772
Perceived technical and financial risks to fertiliser industry in adopting innovative energy
saving technologies are very high in India because of complex fertilizer technology and huge
investment required in modifications. Moreover, fear that a new technology may not work
inhibits industry from adopting new energy saving technologies. Despite these inhibiting
factors, IFFCO took the initiative in adopting this energy efficient technology.
The Ministry of Fertilizers, Ministry of Power (MoP) and Ministry of Non-conventional
Energy Sources (MNES) in India encourage energy conservation; they do not require Fertilizer
industries to reduce their specific energy consumption to a prescribed standard. Nor do the
Fertilizer association of India have imposed any directives for improving energy efficiency. The
project proponent has implemented the project activity over and above the national or sectoral
requirement and the GHG reductions achieved by the project activity are additional to those
directed by the governmental policies and regulations.
The project proponent is implementing the project, as there is an opportunity to sell the CO2
emission reductions and gets carbon revenue through Clean Development Mechanism (CDM)
stream for the project activity, which would ameliorate the financial attractiveness of the
project. The additionality criteria of the project activity are dealt with in details in section B.
A.4.4.1.
period:
Years
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
Total estimated reductions
(tonnes of CO2 e)
262,711
262,711
262,711
262,711
262,711
262,711
262,711
262,711
262,711
262,711
2,627,110
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10
262,711
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There is direct comparison of emissions that can be made available with IFFCO plants after
commissioning of projects. This will be based on recorded data.
As per the Kyoto Protocol (KP) baseline should be in accordance with the additionality criteria
of article 12, paragraph 5(c), which states that the project activity must reduce emissions that
are additional to any that would occur in the absence of the certified project activity.
Moreover, the project activity is of the first type in India, therefore any other project activity is
not available for comparison. On the basis of this, it can be justified that most suitable baseline
methodology for this application would be based on Existing actual or historical emissions.
Justification for why is the approved baseline methodology AM-0018 is applicable to
project activity.
Following are the various points, which justify the application of AM-0018 for project activity.
1. The methodology is applicable for 48-(a) approach only.
2. The applicability conditions of methodology for production processes with homogeneous
and relatively constant output and continuous monitoring of steam outputs. These
conditions are perfectly applicable to proposed CDM project activity of IFFCO.
IFFCO plants (Aonla-I, Aonla-II, Phulpur-I, Phulpur-II and Kalol) are constant output Urea
production plants. The Ammonia production is these plants is relatively constant. In fact,
Fertilizer Industry in India can produce the quantity of Fertilizers that is allotted by
Government of India, based on capacity. This ensures the constant nature of output.
B.2.
Description of how the methodology is applied in the context of the project
activity:
>>
The methodology uses four-point approach. In this approach, actual data shall be collected for
direct comparison of baseline and project specific steam consumption and thus estimating
reduction in CO2 emissions.
1. Baseline Fixation: Baseline will be fixed by calculating specific steam consumption (Tonne
of steam/ Tonne of Ammonia Produced) in Ammonia plant from the data documented in the
record sheets. The value of Ammonia Produced used is the average representative value
of normal range2 of output3 (Ammonia Production) measured in a day. The steam
consumption values corresponding to Ammonia production values selected above needs to
be identified and the average representative value required to be calculated (refer section-D
for details).
2. Estimation of Specific Steam Consumption After Project Implementation: In the project
scenario, specific steam consumption (Tonne of steam/ Tonne of Ammonia Produced) in
Ammonia plant shall be calculated based on the ratio of average
representative values of
steam consumed and Ammonia Produced. The method for estimating representative data of
2
Normal range is the range in which the plant output takes place most of the time. This is based on
the rated plant capacity and internally acceptable deviations ( 5% of rated plant capacity).
3
Output here is defined as the main outcome of process/system for which process/system is designed
and where the steam generated by using fossil fuel is utilized. Therefore, in case of IFFCO, output of
the process is the quantity Ammonia Produced per hour (in kg or Tons) and accounted through the
monitoring system.
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output and steam consumption is same as in case of baseline scenario (refer section D for
details).
3. Estimation of Emission Reduction: Total reduction in steam consumption in project
scenario shall be calculated by multiplying the reduction in specific steam consumption by
total Ammonia Produced in project scenario. The reduction in emission shall be calculated
by estimating the fuel required for the generation of additional steam in the boiler (or Heat
Recovery Steam Generator (HRSG) or Heat Recovery Unit (HRU) or Auxiliary Boiler
depending on plant). The efficiency of boiler (in case of Phulpur-I and Phulpur-II plant) and
net enthalpy of steam is monitored to estimate the saving in fuel. In case of Aonla-I and
Aonla- II plant, the fuel is saved in HRSG and HRUs of Gas turbine, where the fuel is used
to add superheat to the gases going to steam generators. The manufacturers table is used to
derive the relationship between power generation in generator, steam generated and fuel
consumed. In case of Kalol plant the fuel is saved in Auxiliary boiler, which is producing
the steam by the combination of process waste heat streams and fuel. Therefore efficiency
of auxiliary boiler of Kalol and HRSG, HRU of Aonla I & II would is estimated by
simple heat balance method.
B.3.
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:
>>
As per the decision 17/cp.7 Para 43, 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. The proposed project activity is energy
efficiency improvement activity and results into net reduction in CO2 emissions of facility.
Following steps of additionality test are followed with respect to IFFCO steam optimisation
projects for demonstration of additionality
Step 0. Preliminary Screening based on the starting date of the project activity
IFFCO wishes to have the crediting period starting prior to the registration of their project
activity. IFFCO is therefore required to
(a) Provide evidence that the starting date of the CDM project activity falls between 1 January
2000 and the date of the registration of a first CDM project activity, bearing in mind that only
CDM project activities submitted for registration before 31 December 2005 may claim for a
crediting period starting before the date of registration; and
(b) Provide evidence that the incentive from the CDM was seriously considered in the decision
to proceed with the project activity.
IFFCOs management took the decision of taking up the project activity, considering the
incentive from the CDM. The incentive provided by CDM was critically considered before
decision making by the project Proponent. Following are the documents available that can be
shown as evidence to support that CDM was seriously considered in the decision to proceed
with the project activity:
The officially approved internal notes of IFFCO on Revamping of ammonia plant
project and considering CDM revenues generated by the revamping project.
Communication of IFFCO with CDM consultants and various other parties for
availing funds for these schemes.
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Step 1. Identification of alternatives to the project activity consistent with current laws
and regulations
Define realistic and credible alternative scenarios to the CDM project activity that can be (part
of) the baseline scenario through the following sub-steps:
Sub-step 1a. Define alternatives to the project activity
Sub-step 1b. Enforcement with applicable laws and regulations:
Alternative 1
Continuation of current practice: In the business-as-usual scenario, IFFCO continues to emit
higher quantity of carbon dioxide by maintaining the earlier technology status and not carrying
out energy efficiency measures.
Alternative 2
Implementation of the CDM project activity Reduction in steam consumption through
revamping of ammonia plant. In the project activity scenario, the energy efficiency projects
(described in section A.2 of this PDD) are implemented in IFFCO plants at Kalol, Phulpur and
Aonla. This will result the reduction of steam consumption and thereby reduction in
consumption of Natural Gas/ LNG/Naphtha / Fuel Oil / LSHS / Coal in boilers of these plants.
All these Alternatives are in compliance with all applicable legal and regulatory requirements.
There is no legal binding on IFFCO to implement the CDM project activity. In India it is not
mandatory to implement energy efficiency projects in fertilizer sector. There is no policy, which
promotes implementation of energy efficiency projects in fertilizer sector and would be
adequate to stimulate implementation of the project activity in absence of CDM
IFFCOs Alternative 1 to project activity (continuing the current practice) does not face any
Investment and Technological barriers. Therefore the barriers to IFFCOs project activity
detailed below do not exist for Alternative 1 so as to prevent its wide spread implementation.
Therefore Alternative:1 Continuation of the current practice is found to be the most appropriate
and conservative baseline scenario.
Step 2. Investment Analysis
If this step is used, determine whether the proposed project activity is the economically or
financially less attractive than other alternatives without the revenue from sale of CERs. To
conduct the investment analysis, use the following sub-steps:
Sub-step 2a. Determine appropriate analysis method
Option-III of Benchmark Analysis is chosen for demonstration of additionality.
Sub-step 2b Option III. Apply benchmark analysis
The Opportunity Cost of Capital (Based on expected rate of returns on equity and cost of debt
and the debt to equity ratio) for IFFCO is 14.50%. If the project is below this rate of return, the
project can not be taken up for implementation by IFFCO.
Sub-step 2c- Calculation of suitable financial indicator
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The Internal Rate of Return (IRR) is calculated for entire investment in projects (in five
plants). This is given below.
Note: As IFFCO is implementing steam saving projects simultaneously for all five plants, the
consultants and technology suppliers will get order for bulk volume of supply. This will help in
achieving high price discounts in the supplies being made to these plants. This leads to constraints in
terms of IRR analysis of each plant separately. The analysis of IRR can only be done collectively for
all plants.
Following are the assumptions while conducting IRR analysis of the project.
1. Escalation in fuel price (Natural Gas 5%, Naphtha 17%, LSHS 10%, LNG 10%, Coal
6% and GEB electricity 5%) every year.
2. Maintenance cost is 3% of project cost with escalation of 5% every year.
3. CER Price of 5 Euro.
The Opportunity Cost of Capital for IFFCO is 14.50%, which is calculated based on Return
on Debt and Return on Equity in the projects taken by IFFCO.
Opportunity Cost of Capital (%)
= {Expected Return of debt (%) x debt / (debt+equity)} + {Expected Return on equity x equity
/(debt +equity)}
Expected return on equity IFFCO is estimated from last three years data of return achieved by
IFFCO on various projects, which is 17%. The expected return of bank on debt given to
IFFCO is 7.0%. The debt for project is expected to be 25% and equity is planned to be 75%.
The IRR Calculations can be referred from Enclosure-1. The overall IRR calculations of all
plants show that the IRR of the project (13.25%) is below the Opportunity Cost of Capital
(Financial benchmark) that can be achieved without CDM funds. It improves to 14.69% with
CDM funds availed against CERs, which is more than financial benchmark.
According to Consolidated additionality tool (point no. 8 of step 2c), if the CDM project
activity has a less favorable indicator (e.g. lower IRR) than the benchmark, then the CDM
project activity cannot be considered as financially attractive. In the project case, the IRR is
better than the minimum returns achievable through financial benchmark (14.5%) discussed
above. This shows that viability of project can be improved substantially i.e, beyond financial
benchmark, with CDM funds. Thus, IFFCOs project activity is financially additional.
Sub-step 2d- Sensitivity Analysis
Sensitivity analysis is conducted considering following deviations in assumptions to find out
worst case IRR of CDM project, to analyze whether the project remains financially additional
inspite of expected deviations in assumptions.
Sr. No.
Assumptions
NG escalates by 6 % , LNG
with
Page 18
escalates by 10 % , Naphtha
escalates by 17 % , LSHS escalates
by 10 % ,Coal escalates by 7.5%
and GEB escalates by 5% every
year
Therefore in spite of sensitivity analysis on the basis of realistic deviations in assumptions, the
IRR of project activity remains less attractive than the financial benchmark. Please see
Enclosure-2 to refer sensitivity analysis.
Step 4. Common Practice Analysis
Sub-step 4a. Analyse other activities similar to the proposed project:
This is the first kind of retrofit taken up by IFFCO based on M/s Haldor Topsoe study in India.
Probably scale of implementation of energy saving retrofits in financial terms is one of the
highest in India.
Projects with Latest Technologies
Some of the projects are based on latest technologies of Haldor Topsoe, which have only one or
two credentials in India. These are as following.
1. Low Temperature Shift (LTS) Guard
2. S-50 Radial flow converter
Both the above technologies are being implemented in all five plants i.e. Aonla unit I & II,
Phulpur unit I & II and Kalol unit.
Retrofits with unusual practice
The project of complete revamping of CO2 removal system, being implemented in Aonla-I for
converting single-stage GV system into 2-stage GV system is quite unusual retrofit project and
is one of the first kinds in India.
The projects with in-depth engineering analysis of technology, design and operational
practices
The energy saving projects are planned with an independent analysis of operational practices,
design and technology status of plant and the best operational practices, technology and design
changes are recommended by M/s Haldor Topsoe. These projects have not come up out of
common practice in the fertilizer industry but are tailor-made for the IFFCO plants. These
might be some similarity exists in other Fertilizer plants in India, which IFFCO is not aware of.
Sub-step 4b. Discuss any similar options that are occurring:
The new Ammonia plants in the world scenario, for which technology is supplied by Haldor
Topsoe have the technologies such as S-50 radial converters and LTS guard is supplied.
Similarly 2-stage GV based CO2 removal plants are supplied in new plants of M/s GV.
But in India, the latest technology plants are the ones, which were implemented in the year
1998 by M/s Haldor Topsoe.
Step 5. Impact of CDM Registration
As stated earlier, during the planning stage of proposed CDM project activity the CDM fund
was under consideration. Following impacts of CDM fund are identified from the point of view
of removal of barriers discussed above. Please refer the approved internal notes of IFFCO on
Page 19
Revamping of ammonia plant project and considering CDM revenues generated by the
revamping project.
Improve IRR of project from 13.25 % to 14.69% (Higher than financial benchmark of
14.5%).
Since the retrofits are not based on common practice and the CDM fund will provide
additional coverage to the risk due to failure of projects, shut down of plant and loss of
production. The support will be available to the losses already incurred after
commissioning of project
CDM funds will encourage IFFCO to come up with more GHG abatement projects for its
plants.
B.4.
Description of how the definition of the project boundary related to the baseline
methodology selected is applied to the project activity:
>>
Project Boundary
As per definition of project boundary as given in glossary of terms, it will encompass all
anthropogenic emissions by sources of Green House Gases (GHGs) under the control of project
participants that are significant and reasonably attributable to the CDM project activity.
Based on the definition as per the proposed methodology, the project boundary covers the
following.
Ammonia Plant
All the retrofit projects discussed in section A.2 will be implemented in following sections of
ammonia plant; these sections become part of the project boundary
1.
2.
3.
4.
The steam consumed in primary reformer, process heating and back pressure turbines in this
section will be saved as a result of retrofit measures. The flow of steam will be monitored
centrally.
Boilers (HRSG-1, HRSG-2 and HRU in Aonla plant, LSHS and Coal Fired boilers in
Phulpur plant and Auxiliary boiler in Kalol plant)
The actual baseline CO2 emissions take place in these boilers
Page 20
Flow chart and project boundary is illustrated in the following diagram. The projects are depicted in diagram by code nos. (e.g. 9.A.2, 14.K etc.). The coding is
summarised below.
Illustration of code: 1.A.1 : Initial 1means Energy saving scheme no 1( according to Sr. No. of Table 1 of section A .4.3) , A..1 - Aonla unit I
Similarly, P.1- Phulpur unit I , K -Kalol
CO2 emissions due
to steam generation
HRSG-1,
HRSG-2 and HRU
(Aonla Plant)
Primary Reformer
Section
9. A.2
10. A.2
HT Converter
Section
6.K
Secondary
Reformer
Section
LT Converter
Section
1. A.1
1. A.2
1. P.1
1. P.2
1. K
6. P.1
6. K
Steam pipe
lines
Process Gas
Output Ammonia to
Urea plant
Main Steam
Header
The project is part of Ammonia plant
Page 21
B.5.
Details of baseline information, including the date of completion of the baseline
study and the name of person (s)/entity (ies) determining the baseline:
>>
Date of completing the final draft of this baseline section:
01/12/2005
Name of person/entity determining the baseline:
IFFCO has determined the baseline and is also project participant. The contact details are given
in Annex 1.
Page 22
>>
Not opted
C.2.1.2.
Length of the first crediting period:
>>
Not opted
C.2.2. Fixed crediting period:
C.2.2.1.
Starting date:
C.2.2.2.
Length:
>>
01/05/06
>> 10 years
Page 23
Page 24
D.2. 1. Option 1: Monitoring of the emissions in the project scenario and the baseline scenario
D.2.1.1. Data to be collected in order to monitor emissions from the project activity, and how this data will be archived:
Considering the above, the details of quantity of steam consumed & NH3 produced and other important project parameters to be monitored and verified in
IFFCO plants are as given below.
ID number
Data
Variable
Source of
data
D.2.1.1.(a)1
Steam
Plant
consumption
in ammonia
section
Data unit
Measured
Recording
Proportion How will the
(m),
Frequency
of data
data be
calculated (c)
to be
archived?
or estimated
monitored
(electronic/
(e)
paper)
Table 2 : Primary Parameters for Estimation of Emission Reduction
Tonne / shift
Measured
Every Shift
Total
Paper
D.2.1.1.(a)2
NH3
Production
Plant
Tonne/shift
Measured
Every Shift
Total
Paper
D.2.1.1.(a)3
Quantity of
Fuel(s) used
in the
boiler(s)
Plant
Tonne/shift
Measured
Every Shift
Total
Paper
D.2.1.1.(a)4
Steam
temperature
Plant
Deg C
Measured
Every Shift
Total
Paper
D.2.1.1.(a)5
Steam
pressure
Plant
Kg/sqcm(g)
Measured
Every Shift
Total
Paper
D.2.1.1.(a)6
Feed
water Plant
temperature
Deg C
Measured
Every Shift
Total
Paper
Comment
Data
Variable
Page 25
Source of
data
Data unit
Measured
(m),
calculated (c)
or estimated
(e)
Measured
D.2.1.1.(a)7
Feed
flow
D.2.1.1.(a)8
Calorific
Plant
Value of Fuel
(GCV &
NCV )
D.2.1.1.(a)9
Ultimate
Analysis of
fuel
Plant
Kg or kg-mole Measured
D.2.1.1.(a)10
Boiler
efficiency
Plant
Estimated
D.2.1.1.(a)11
Retrofit
Event
Measured
water Plant
Cum/shift
Recording
Frequency
Proportion
of data
to be
monitored
Every Shift
Total
With
every Total
delivery
of
fuel.
(Refer
guidelines on
boiler
efficiency
monitoring)
With
every Total
delivery
of
fuel.
Paper
Paper
Paper
Paper
Comment
Page 26
Action: The enhanced steam saving due to the impact of retrofit on CO2 removal sysem needs to be estimated and deducted from claimed emission
reductions.
D.2.1.2. Description of formulae used to estimate project emissions (for each gas, source, formulae/algorithm, emissions units of CO2 equ.)
1. Emissions due to steam Consumption in Ammonia Plant
The source of greenhouse gas emissions in the project activity is due to steam consumption in the Ammonia plant resulting into CO2 emitted from
fossil fuels like Natural gas/Naphtha etc., fired in the boilers for generating steam.
Step-1: Estimate representative value of Ammonia ( NH3 ) production of the unit
Based upon NH3 production of the unit, all values (P1, P2, P3 etc.) under normal range of plant capacity to be selected and averaged out to find
out representative value.
Prep =
(P1 ... + Pn ) x3
n
Where,
P1Pn = value(s) of NH3 produced (Tonne / shift )
No. of shifts per day = 3
Prep = Representative value of NH3 produced in the unit (Tonne /day)
Note: n may not be equal to 3 (no. of shifts), because if some shift-data is filtered out because it is out of normal production range, n will be
less than 3.
Step-2: Estimate steam consumption for representative output values
The steam consumption (consumption per shift) values corresponding to representative NH3 production values are selected and the average of the
same is calculated.
Srep =
S1Sn = Values of steam consumption per shift (Tonne /shift).
(S1 + ....S n ) 3
n
Page 27
Srep= Representative steam consumption for the day (corresponding to representative production of the day)
No. of shifts per day = 3
Step-3: Calculate Specific Steam Consumption Ratio-SSCR (Tonne of steam consumed / Tonne of NH3 produced)
The steam consumption values corresponding to NH3 produced values selected above, to be identified and average representative value (Ss ) to be
worked out.
Ss = Srep / Prep
Where,
Ss
= Specific Steam Consumption Ratio (Tonne of steam/ Tonne of NH3 produced from Ammonia plant)
Srep
= Representative Steam Consumption Rate (Tonne/day)
D.2.1.3. Relevant data necessary for determining the baseline of anthropogenic emissions by sources of GHGs within the project boundary and how
such data will be collected and archived :
ID number
Data Variable
Source of
data
D.2.1.3.(a)1
Data unit
Proportion
of data
to be
monitored
Tonne / shift
Measured
Recording
(m),
Frequency
calculated (c)
or estimated
(e)
Measured
Every Shift
Total
D.2.1.3.(a)2
NH3 Production
Plant
Tonne/shift
Measured
Every Shift
Total
Paper
D.2.1.3.(a)3
Tonne/shift
Measured
Every Shift
Total
Paper
D.2.1.3.(a)4
Steam temperature
Deg C
Measured
Every Shift
Total
Paper
Plant
Comment
Page 28
Data Variable
Source of
data
Data unit
Measured
Recording
(m),
Frequency
calculated (c)
or estimated
(e)
D.2.1.3.(a)5
Steam pressure
D.2.1.3.(a)6
Feed
temperature
D.2.1.3.(a)7
D.2.1.3.(a)8
D.2.1.3.(a)9
Kg or kg-mole
Measured
D.2.1.3.(a)10
Boiler efficiency
Plant
Estimated
D.2.1.3.(a)11
Retrofit
Event
Measured
Plant
water Plant
Plant
Proportion
of data
to be
monitored
Comment
Kg/sqcm(g)
Measured
Every Shift
Total
Paper
Deg C
Measured
Every Shift
Total
Paper
Cum/shift
Measured
Every Shift
Total
Paper
With
every
delivery
of
fuel.
(Refer
guidelines on
boiler
efficiency
monitoring)
With
every
delivery
of
fuel.
(Refer
guidelines on
boiler
efficiency
monitoring)
Monthly (Refer
guidelines on
boiler
efficiency
monitoring)
As and when
occurs.
Total
Paper
Total
Paper
Total
Paper
Total
Paper
Data Variable
Page 29
Source of
data
Data unit
Measured
Recording
(m),
Frequency
calculated (c)
or estimated
(e)
Proportion
of data
to be
monitored
Comment
D.2.1.4. Description of formulae used to estimate baseline emissions (for each gas, source, formulae/algorithm, emissions units of CO2 equ.)
The specific steam consumption (Tonne) in Ammonia plant per NH3 production is derived for base case scenario. This figure of specific steam
consumption is used for all future project scenarios to compare the emissions of project scenario and likely emissions of baseline scenario.
Emissions due to steam Consumption in Ammonia Plant
The source of greenhouse gas emissions in the project activity is due to steam consumption in the boilers resulting into CO2 emitted from fossil
fuels like Natural gas/Naphtha /Coal /LSHS/fired in the boilers for generating steam.
The historical one-month data on shift-wise output of NH3 produced is analysed and representative output value (Prep) is calculated. While
calculating daily average, the extreme values are segregated from the available values of output rate (shift output). This is because the specific
steam consumption in a plant reduces with increased production rates. Based on our experience, the energy-production relationship is not
significantly sensitive up to +/-5% of normal rated production. Therefore +/- 5% range is taken as normal production range for this purpose. If
production fluctuates (from shift to shift) beyond normal production range, these specific values are segregated to derive average production of
the day. Similarly steam consumption value corresponding to such production is also segregated.
Step-1: Estimate representative value of Ammonia ( NH3 ) production of the unit
Based upon NH3 production of the unit, all values (P1, P2, P3 etc.) under normal range of plant capacity to be selected and averaged out to find
out representative value.
Prep =
(P1 ... + Pn ) x3
Where,
P1Pn = value(s) of NH3 produced (Tonne / shift )
No. of shifts per day = 3
Prep = Representative value of NH3 produced in the unit (Tonne /day)
Page 30
Note: n may not be equal to 3 (no. of shifts), because if some shift-data is filtered out because it is out of normal production range, n will be
less than 3.
Step-2: Estimate steam consumption for representative output values
The steam consumption (consumption per shift) values corresponding to representative NH3 production values are selected and the average of the
same is calculated.
Srep =
(S1 + ....S n ) 3
n
D.2.2.1. Data to be collected in order to monitor emissions from the project activity, and how this data will be archived:
Data
variable
Source of
data
Page 31
Data
unit
Measured (m),
calculated (c),
estimated (e),
Recording
frequency
Proportion
of data to
be
monitored
Comment
D.2.2.2. Description of formulae used to calculate project emissions (for each gas, source, formulae/algorithm, emissions units of CO2 equ.):
>>
D.2.3. Treatment of leakage in the monitoring plan
D.2.3.1. If applicable, please describe the data and information that will be collected in order to monitor leakage effects of the project activity
ID number
(Please use
numbers to
ease crossreferencin
g to table
D.3)
Data
variable
Source of
data
Not
applicable
Not
applicabl
e
Not
applicable
Data unit
Not
applicabl
e
Measured (m),
calculated (c)
or estimated
(e)
Recording
frequency
Proportion
of data to
be
monitored
Comment
Not applicable
Not
applicable
Not
applicable
Not applicable
Not applicable
D.2.3.2. Description of formulae used to estimate leakage (for each gas, source, formulae/algorithm, emissions units of CO2 equ.)
Not applicable
Page 32
D.2.4. Description of formulae used to estimate emission reductions for the project activity (for each gas, source, formulae/algorithm, emissions units of
CO2 equ.)
Step 4: Net Reduction in SSCR (Tonne of steam consumed / Tonne of NH3 produced )
Sr1 = Ss1-Ss
Where:
Sr1 = Net Reduction in SSCR (Tonne of steam consumed / Tonne of NH3 produced )
Ss1 =SSCR of the unit in base case scenario (Tonne of steam consumed / Tonne of NH3 produced )
Ss = SSCR of the unit in project scenario (Tonne of steam consumed / Tonne of NH3 produced )
Step 5: Calculate reduction in daily steam consumption due to project activity (Tonne / day)
Srf = Sr1 x Pgv
Where:
Srf = Net reduction in steam due to project activity (Tonne /day)
Sr1 = Net reduction in specific steam consumption (Tonne of steam consumed / Tonne of NH3 produced )
Pgv= Actual NH3 production in the unit (Tonne /day)
hb
Page 33
Note : Since steam saved in Aonla plant is in Heat Recovery Steam Generators (HRSGs) and Heat Recovery Units (HRUs), the efficiency calculation on regular
basis is difficult. Therefore the manufacturers table is followed to get the figure of natural gas consumption based on reduction in steam generation in HRSG and
HRU. This table (chart) is validated by heat balance once in a year.
D.3.
Quality control (QC) and quality assurance (QA) procedures are being undertaken for data monitored
Data
(Indicate table and
ID number e.g. 3.1.; 3.2.)
Explain QA/QC procedures planned for these data, or why such procedures are not necessary.
ISO 9001
ISO 9001
ISO 9001
D.3.(a)4
Low
Low
Low
Low
D.3.(a)5
Low
D.3.(a)1
D.3.(a)2
D.3.(a)3
ISO 9001
ISO 9001
D.3.(a)8
Low
Low
Low
D.3.(a)9
Low
D.3.(a)10
Low
D.3.(a)11
Low
D.3.(a)7
Page 34
ISO 9001
ISO 9001
There is no procedure required for the testing of fuels as the test certificate given by reputed
Naphtha/coal/LSHS supplier for each fuel delivery. In case of Natural Gas, the calorific value is available
for every days supply.
The procedure is required if emission factor is determined by testing of fuel supplier or in-house or
external reliable laboratory . Otherwise IPCC/National emission factor to be used.
ISO 9001
For retrofit monitoring retrofit test should be followed as given in section D.2.1.1.
D.4
Please describe the operational and management structure that the project operator will implement in order to monitor emission
reductions and any leakage effects, generated by the project activity
Joint General Manager (Technical) would be responsible for monitoring and archiving of data required and for estimating the emission reductions. He
would be supported by Plant incharge, who would continuously monitor the data and would generate Daily, Monthly report of the same
D.5
IFFCO has determined monitoring methodology and is also project participant. The contact details are given in Annex 1.
Page 35
Steam
Cons to
syn gas
turbineBaseline
case
Steam Cons
to syn gas
turbineProject
case
SSCR-Baseline case
SSCRProject
case
T/Day
T/Day
T/Day
T of steam/ T of Amm
1479.700
1497.700
6384
6451
5102.4
5169.4
5322.4
4.31
4.31
4.35
T of steam/
T of Amm
3.45
3.45
3.50
1519.400
1514.100
1513.200
1514.000
1520.400
1520.300
1520.300
1520.500
1486.800
1504.300
1542.400
1521.400
1520.300
1520.400
1520.200
1512.000
1518.200
1537.300
1502.200
1519.200
1497.000
1505.100
1531.500
1528.400
1506.600
1538.700
1530.400
1531.400
1481.700
1479.900
1462.600
6604
6524
6464
6542
6546
6646
6558
6667
6474
6570
6646
6482
6540
6540
6576
6504
6469
6596
6384
6478
6396
6384
6504
6528
6534
6663
6422
6456
6216
6240
6205
5242.4
5182.4
5260.4
5264.4
5364.4
5276.4
5385.4
5192.4
5288.4
5364.4
5200.4
5258.4
5258.4
5294.4
5222.4
5187.4
5314.4
5102.4
5196.4
5114.4
5102.4
5222.4
5246.4
5252.4
5381.4
5140.4
5174.4
4934.4
4958.4
4923.4
4.31
4.27
4.32
4.31
4.37
4.31
4.38
4.35
4.37
4.31
4.26
4.30
4.30
4.33
4.30
4.26
4.29
4.25
4.26
4.27
4.24
4.25
4.27
4.34
4.33
4.20
4.22
4.20
4.22
4.24
3.46
3.42
3.47
3.46
3.53
3.47
3.54
3.49
3.52
3.48
3.42
3.46
3.46
3.48
3.45
3.42
3.46
3.40
3.42
3.42
3.39
3.41
3.43
3.49
3.50
3.36
3.38
3.33
3.35
3.37
Page 36
4982.4
4958.4
5006.4
6264
6240
6288
4.24
4.23
4.25
4.287
3.37
3.36
3.38
3.437
Sample Calculations Aonla-II plant for representative production of 1520 MTPD +/- 5%.
The SSCR in project case is estimated for 2-months baseline production data.
Ammonia Prodn.
Steam Cons.
in Syn
gasTurbineBaseline
case
T/Day
T/Day
1481
1522
1517
1510
1483
1520
1525
1525
1525
1525
1512
1520
1520
1515
1520
1520
1520
1497
1520
1567
1521
1540
1496
1502
1510
1507
1540
1532
1482
1540
1468
1458
1520
1486
1479
1486
6601
6667
6660
6590
6428
6514
6392
6439
6293
6464
6379
6503
6508
6480
6532
6536
6503
6476
6549
6671
6552
6680
6530
6529
6577
6554
6684
6611
6442
6623
6386
6321
5896
6330
6256
6260
Steam
Cons to
syn gas
turbineProject
case
T/Day
5955.4
6021.4
6014.4
5944.4
5782.4
5868.4
5746.4
5793.4
5647.4
5818.4
5733.4
5857.4
5862.4
5834.4
5886.4
5890.4
5857.4
5830.4
5903.4
6025.4
5906.4
6034.4
5884.4
5883.4
5931.4
5908.4
6038.4
5965.4
5796.4
5977.4
5740.4
5675.4
5250.4
5684.4
5610.4
5614.4
SSCR
-Baseline case
T of steam /
T of Amm
4.46
4.38
4.39
4.36
4.33
4.29
4.19
4.22
4.13
4.24
4.22
4.28
4.28
4.28
4.30
4.30
4.28
4.33
4.31
4.26
4.31
4.34
4.37
4.35
4.36
4.35
4.34
4.32
4.35
4.30
4.35
4.34
3.88
4.26
4.23
4.21
SSCR
-Project case
T of steam /
T of Amm
4.02
3.96
3.97
3.94
3.90
3.86
3.77
3.80
3.70
3.82
3.79
3.85
3.86
3.85
3.87
3.88
3.85
3.89
3.88
3.84
3.88
3.92
3.93
3.92
3.93
3.92
3.92
3.89
3.91
3.88
3.91
3.89
3.45
3.83
3.79
3.78
Page 37
4.29
3.86
SSCR of the Project case of Aonla-II= 3.86 Ton of steam consumed / Ton of Ammonia produced
E.2.
Estimated leakage:
There are no potential significant sources of leakages
E.3.
The sum of E.1 and E.2 representing the project activity emissions:
Total emissions reduction due to project activity = Ce1 Ce2 Te / day
E.4.
SSCR of the Baseline case of Aonla-I =4.287 Ton of steam consumed/ Ton of Ammonia produced
SSCR of the Baseline case of Aonla-II = 4.29 Ton of steam consumed/ Ton of Ammonia produced
Reduction in steam consumption due to project activity in Aonla-I
Reduction in steam consumption due to project activity in Aonla-II = 645.74 Ton of steam /day
= 26.91 Ton of steam /hour
=
=
=
=
80.32 TPH
21.2 TPH
26.8 TPH
32.5 TPH
GT/HRU OF Aonla
NG consumption in GT/HRU (Baseline Scenario)
NG consumption in GT/HRU (Project Scenario)
NG saving in GT/HRU
=
=
=
9025 NM3/Hr
6802 NM3/Hr
2223 NM3/Hr
Natural Gas saving in GTG-I /HRSG-I of power plant due to reduction in steam generation
NG consumption in GTG-I(Baseline Scenario)
NG consumption in HRSG-I (Baseline Scenario)
NG consumption in GTG-I(Project Scenario)
NG consumption in HRSG-I (Project Scenario)
Increase in NG consumption in GTG-I
NG saving in HRSG-I
=
=
=
=
=
=
5553 NM3/Hr
3423 NM3/Hr
5870 NM3/Hr
1986 NM3/Hr
317 NM3/Hr
1437 NM3/Hr
Natural Gas saving in GTG-II /HRSG-II of power plant due to reduction in steam generation
NG consumption in GTG-II(Baseline Scenario)
NG consumption in HRSG-II (Baseline Scenario)
NG consumption in GTG-II(Project Scenario)
NG consumption in HRSG-II (Project Scenario)
Increase in NG consumption in GTG-II
NG saving in HRSG-II
=
=
=
=
=
=
5487 NM3/Hr
3637 NM3/Hr
5870 NM3/Hr
1986 NM3/Hr
383 NM3/Hr
1651 NM3/Hr
Page 38
=
=
=
=
=
4611 NM3/Hr
8774 kcal/NM3
15.3 tC/TJ
56.1 tCO2/TJ
75,138 tCO2/year
E.5.
Difference between E.4 and E.3 representing the emission reductions of the
project activity:
Net Reduction in SSCR of Aonla-I
E.6.
Following table indicates the emission reductions in each year of credit period for all plants
(Aonla-I, Aonla-II, Phulpur - I, Phulpur-II, Kalol).
Year
Estimation of
Estimation
Estimation Estimation
Project activity of baseline
of
of
Emission
Emission
leakage
emission
reductions
reductions
(tonnes
reductions
(tonnes of CO2 (tonnes
of CO2 e)
(tonnes of
e)
of CO2 e)
CO2 e)
2006-2007
1805269
2067980
262711
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
Total
(tonnes of
CO2 e)
1805269
1805269
1805269
1805269
1805269
1805269
1805269
1805269
1805269
2067980
2067980
2067980
2067980
2067980
2067980
2067980
2067980
2067980
18052690
20679800
0
0
0
0
0
0
0
0
0
0
262711
262711
262711
262711
262711
262711
262711
262711
262711
2627110
Page 39
F.1.
SL. NO.
A
1
Page 40
Page 41
SL. NO.
C
1
Reduction in coal, Naphtha & LSHS consumption reduces coal mining and The project activity leads to positive impact on Land environment.
oil exploration, which leads to loss of biodiversity, land destruction and
erosions arising from such activities.
Industry has also developed Green Belt in and around the plant premises.
There is no possible soil or land pollution arising due to project activity.
1
F
The project activity generates employment opportunities to local populace The project is expected to bring positive changes in the life style and
during construction phase
quality of life.
The project activity is within the plant premises and there is no human
displacement. Therefore no rehabilitation programme is needed.
The project activity adopts higher technology which would aid in capacity
building of employees by better exposures
2
3
SL. NO.
CATEGORY: ECOLOGY
There are no endangered species located in and around the plant area.
Page 42
Page 43
Thus the above tables clearly purports that the project activity has excellent environmental benefits in
terms of reduction of carbon emissions, fossil fuel conservation, decreased environmental destruction
and enhanced restoration, improved economical and social prosperity.
F.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:
As discussed above, the project activity would not have any adverse environmental impacts.
The project activity does not fall under the purview of the Environmental Impact Assessment (EIA)
notification of the Ministry of Environment and Forest, Government of India. Hence, not required by the
host party.
Page 44
Brief description how comments by local stakeholders have been invited and compiled:
The project activity, which primarily aims at reduction in steam consumption through revamping of
ammonia plant, will result in simultaneous benefits of conservation of natural resources and achieving
energy efficiency of the plants.
Stakeholders have been identified on the basis of their involvement at various project activity stages.
The list of relevant stakeholders includes all governmental and non-governmental organization, which
would be communicated / applied to get necessary clearances.
IFFCO invited local villagers, elected representatives for stakeholders meeting through printed invitation
letter. During the meeting IFFCO officials apprised local villagers, elected representatives about the
various activities carried out by IFFCO in field of energy efficiency and environment. IFFCO informed
about the project activity and its associated benefits.
The stakeholders identified for the project are as under:
Elected body of representatives administering the local area
Ministry of Environment & Forest (MoEF), Government of India
Project Consultants
Equipment Suppliers
G.2. Summary of the comments received:
Stakeholders Involvement
The village Panchayat /local elected body of representatives administering the local area (of IFFCO
plants) is a true representative of the local population in a democracy like India. Hence, their consent /
permission to set up the project is necessary. IFFCO has started taking measures for necessary
consultation for approval of the project.
Local population comprises of the local people in and around the project area (of IFFCO plants). The
project makes way to a source for employment for skilled & unskilled workers during construction
phase. Hence, the local populace is encouraging the project.
The project activity would not result in any displacement of any local population. The project activity
would be set up inside the factory premises (of IFFCO plants). Thus, the project activity would not
cause any adverse social impacts on local population.
Ministry of Environment & Forests (MoEF) would be providing the host country approval for the
project.
Project consultants would be involved in the project to take care of various pre contract and post
contract project activities like preparation of basic and detailed engineering documents, preparation of
tender documents, selection of vendors / suppliers, supervision of project implementation, successful
commissioning and trial runs.
Equipment suppliers would supply the equipments as per the specifications finalized for the project and
successfully erect & commission of the same at the site and for performance.
G.3.
Page 45
The relevant comments and important clauses mentioned in the project documents were considered while
preparing the CDM Project Design Document.As per UNFCCC requirement the PDD would be
published at the validators web site for public comments.
Page 46
Annex 1
CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY
Organization:
Street/P.O.Box:
Building:
IFFCO House
City:
New Delhi
State/Region:
Postfix/ZIP:
110019
Country:
India
Telephone:
91 11 26432507, 26432510
FAX:
91 11 26463833, 26478007
E-Mail:
URL:
www.iffco.nic.in
Represented by:
Title:
Salutation:
Mr.
Last Name:
Chandra
Middle Name:
First Name:
Subhash
Department:
Mobile:
Direct FAX:
Direct tel:
Personal E-Mail:
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:
Page 47
Page 48
Annex 2
INFORMATION REGARDING PUBLIC FUNDING
No Public Funding is available to the project activity
Page 49
Annex-3
BASELINE INFORMATION
The baseline information has been given in the enclosures 3, 4 and 5 attached.
Page 50
Annex-4
MONITORING PLAN
The Monitoring and Verification (M&V) procedures define a project-specific standard against which
the projects 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. It also allows scope for review, scrutinize
and benchmark all this information against reports pertaining to M & V Protocols (MVP).
The purpose of these procedures would be to direct and aegis continuous monitoring of project
performance/key project indicators to determine project outcomes, GHG emission reductions. The MVP
provides a range of data measurement, estimation and collection options/techniques consistent with good
practices to allow project managers and operational staff, auditors, and verifiers to apply the most
practical and cost-effective measurement approaches to the project. The aim is to enable this project
have a clear, credible, and accurate set of monitoring, evaluation and verification procedures.
The project profitability is based on direct steam reduction in the boilers feeding steam to revamped
ammonia plants (where energy efficiency measures are implemented). The steam meters are used to
monitor and record the flow of steam used for the system.
The project employs latest state-of-the-art monitoring and control equipment that measure, record, and
control various key parameters. The project performance (reduction in steam consumption) is combined
effect of many energy efficiency schemes. Table in Section D 2.1.1 describes main parameters to be
monitored for estimation of emission reduction based on reduction in Specific Steam Consumption
Ratio (SSCR) in entire Ammonia section. These parameters are directly used in calculations of emission
reduction given in section-E.
Appendix 1 describes the other parameters which are to be monitored to analyse the performance of
individual energy saving scheme and thereby project performance. Appendix 1 provides (remark
column) the link between the characteristics of the individual scheme and its relation with steam
reduction in Ammonia plant. These parameters do not have any direct role to play in estimation of
emission reduction given in section-E.
Main parameters monitored will be as follows.
1.
The monitoring of quantity of steam used in ammonia plant per Tonne of NH3 production using
steam meter.
2.
Monitoring the parameters related with boiler (HRSG, HRU, LSHS/Coal fired boiler, Auxiliary
Boiler) efficiency on direct basis e.g. Steam enthalpy parameters, Fuel Parameters, and heat
balance parameters.
3.
Estimation of boiler efficiency by direct method based on enthalpy balance across boiler. In case of
HRSG and HRU in Aonla plant, the relation between steam generation and fuel consumption is
derived by Gas Turbine Manufacturers charts. This chart is validated by monitoring of heat
balance parameters and conducting heat balance once in a year.
4.
Monitoring of retrofits in the plant for change in baseline and project emissions.
Page 51
The instrumentation system installed for the project is Distributed Control System (DCS) of reputed
make, with shift-wise recording and feedback facility with desired level of accuracy. All instruments
will be calibrated and marked at regular intervals so that the accuracy of measurement can be ensured
all the time.
GHG SOURCES
Direct On-Site Emissions
Direct on-site emissions after implementation of the CDM project arise from net emissions due to use of
steam in process. As discussed above, these emissions are monitored and taken into account while
estimating net emission reductions of project.
Direct Off-Site Emissions
There is no off-site emission due to the project.
Indirect On-Site Emissions
There is no indirect on-site emission due to the project.
Indirect Off-Site Emissions
No indirect off-site emissions could occur due to CDM project.
Project Parameters affecting Emission Reduction
Monitoring Approach
The general monitoring principles are based on:
l Frequency
l Reliability
l Registration and reporting
As the emission reduction units from the project are determined by the reduction in steam quantity, it is
important to discuss the monitoring principles in context of monitoring these parameters.
Frequency of monitoring
The project developer has installed all metering facilities within the plant premises. The measurements
is, monitored and controlled on continual basis and recorded shift-wise (8-hours shift) in a Distributed
Control System (DCS). In case of non-availability of data from DCS due to unforeseen situations, the
desired data shall be logged in log sheets by operator duly authenticated by head of plant
Reliability
The amount of emission reduction units is proportional to the net energy reduction due to project. Thus
the steam meter reading is of crucial value. All measurement devices will be of digital type meters with
on-line DCS (Distributed Control System), having best accuracy and will be 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 for reproducibility, all instruments must be
calibrated once a year for ensuring reliability of the system. All instruments carry
Page 52
tag plates, which indicate the date of calibration and the date of next calibration. Therefore it ensures
the monitoring system is highly reliable.
Registration and reporting
Registration is done on the basis of shift-wise data logging in computer. Daily, weekly and monthly
reports will be prepared stating the steam reduction.
The following reports will be generated for monitoring and controlling emissions.
The daily report of shift-wise data on steam used in Ammonia plant. The specific steam
consumption per unit of Ammonia produced is worked out. The net reduction in steam
consumption is thus estimated by multiplying difference in specific steam consumption and total
Ammonia produced.
Verification
The reduction in steam consumption leads to the CO2 emission reductions. The project control system
comprises sophisticated monitoring system like on-line display meters and Distributed Control Systems
(DCS) which measures, collects the information about various process parameters, monitors and
controls on a continuous basis. Fully functional management information is built, which is generated
through DCS in pre-decided daily reports formats so that accessing and verification of actual data are
possible at any point of time. A computerised MIS can is generated and distributed among decision
makers of the project. The major activities to be verified are as under
Verification of various measurement and monitoring methods
Step 2 : Calculate Net output energy from GTG and HRSG system
Net output energy from GTG and HRSG system ( Gcal / hr )
= Output energy from GTG + Output energy from HRSG system
= (Power generation by GTG X 1000 ( MWh)
X Power to energy factor (860 kcal / kWh ) ) / 1000000
+ (Steam generation by HRSG ( T/ hr )
X 1000 X (Enthalpy of steam Enthalpy of feed water) (kcal / kg)) /1000000
Page 53
Page 54
Page 55
Appendix - 1
Other Monitoring Parameters under Monitoring Plan
ID number
Data Variable
Source of
data
Data unit
Measured
Recording
Proportion How will the Comment
(m),
Frequency
of data
data be
calculated
to be
archived?
(c) or
monitored
(electronic/
estimated (e)
paper)
Other Parameters are used to demonstrate that (1) Intended objectives of each scheme are met and ;(2) To demonstrate the contribution of each scheme in emission
reduction)
Kalol plant
New Low Temperature (LT) shift guard, Boiler Feed Water (BFW) preheater
D.2.1.1 (b) 1
Carbon
Plant
Percent
Measured & Every Month
Total
Paper
Measured in the plant premises to the best accuracy
Monoxide (CO)
calculated
and will be monitored Month-wise. The CO slip
slip
ensures the reduction in feed and thereby
subsequent steam consumption in primary reformer.
The data would be archived until 2 years after end
of the crediting period.
D.2.1.1 (b) 2
Temperature
Plant
Deg C
Total
Paper
Measured & Every Month
Monitored by temperature indicator at the end of
across new
calculated
Month. This data along with D.2.1.1(b)3 provides
BFW Preheater
the additional heat gain due to CO slip recovery,
which would reduce the steam load on boiler by
same amount. The data would be archived until 2
years after end of the crediting period.
D.2.1.1 (b) 3
BFW flow
Plant
Tonne / shift
Measured
Every Month
Total
Paper
Monitored by flow recording meter at the end of
Month. This data along with D.2.1.1(b)2 provides
additional heat gain due to CO slip recovery, which
would reduce the steam load on boiler by same
amount. The data would be archived until 2 years
after end of the crediting period.
D.2.1.1 (b) 4
Process steam
Plant
Tonne / shift
Measured
Every Month
Total
Paper
Measured/calculated in the plant premises to the
flow in primary
best accuracy and will be monitored Month-wise.
This data provides the reduction in steam
reformer
consumption in primary reformer due to CO slip
recovery. The data would be archived until 2 years
after end of the crediting period.
Installation of S-50 radial flow synthesis converter and HP /MP Boiler
D.2.1.1 (b) 5
Steam
Plant
Tonne / shift
Measured
Every Month
Total
Paper
Measured in the plant premises to the best accuracy
consumption in
and will be monitored Month-wise. This data
Data Variable
Page 56
Source of
data
Data unit
Measured
Recording
(m),
Frequency
calculated
(c) or
estimated (e)
Proportion
of data
to be
monitored
synthesis gas
turbine
D.2.1.1 (b) 6
D.2.1.1 (b) 7
NH3
concentration
Plant
Steam
Plant
consumption in
synthesis gas
turbine
D.2.1.1 (b) 8
Steam
Plant
consumption in
synthesis gas
turbine
D.2.1.1 (b) 9
Steam
Plant
consumption in
synthesis gas
turbine
D.2.1.1 (b) 10
Pressure drop
across LT shift
Plant
Measured
Every Month
Total
Paper
Kg/cm2 (g)
Measured
Every Month
Total
Paper
Comment
Data Variable
Page 57
Source of
data
Data unit
Measured
Recording
(m),
Frequency
calculated
(c) or
estimated (e)
Proportion
of data
to be
monitored
converter
D.2.1.1 (b) 11
LP steam
Plant
consumption for
regeneration
D.2.1.1 (b) 12
Plant
percent
Measured
calculated
Total
Paper
D.2.1.1 (b) 13
Process steam
in primary
reformer
Plant
Tonne / shift
Measured
Every Month
Total
Paper
D.2.1.1 (b) 14
D.2.1.1 (b) 15
Steam
Plant
consumption of
the ID fan drive
turbine
CO slip
Comment
Plant
Tonne / shift
Data Variable
Page 58
Source of
data
Data unit
Measured
Recording
(m),
Frequency
calculated
(c) or
estimated (e)
calculated
Proportion
of data
to be
monitored
D.2.1.1 (b) 16
Temperature
Plant
across new
BFW Preheater
Deg C
Total
Paper
D.2.1.1 (b) 17
BFW flow
Plant
Tonne / shift
Measured
Every Month
Total
Paper
D.2.1.1 (b) 18
Process steam
flow in primary
reformer
Plant
Tonne / shift
Measured
Every Month
Total
Paper
D.2.1.1 (b) 19
D.2.1.1 (b)20
Comment
Installation of S-50 radial flow synthesis converter and High Pressure (HP) /Medium Pressure (MP) Boiler
Steam
Measured/calculated in the plant premises to the
Plant
Tonne / shift
Measured
Every Month
Total
Paper
consumption in
best accuracy and will be monitored Month-wise.
synthesis gas
This data indicates the reduction in steam
consumption due to lower load on synthesis
turbine
compressor. The data would be archived until 2
years after end of the crediting period.
Plant
%
Measured
Every
Month
Total
Paper
Measured in the plant premises to the best accuracy
NH3
and will be monitored Month-wise. This data
concentration
provides the improved Ammonia Conversion in new
converter and the additional heat of reaction
generating extra steam in MP and HP boiler. The
Data Variable
Page 59
Source of
data
Data unit
Measured
Recording
(m),
Frequency
calculated
(c) or
estimated (e)
Proportion
of data
to be
monitored
Comment
Steam
Plant
consumption in
synthesis gas
turbine
D.2.1.1 (b) 22
Inlet
temperature of
make up gas of
synthesis
compressor
D.2.1.1 (b) 23
D.2.1.1 (b) 24
Plant
Steam
Plant
consumption in
synthesis gas
compressor
turbine and
refrigeration
turbine.
Steam
Plant
consumption in
synthesis gas
turbine
Pressure drop
Plant
Tonne / shift
Paper
Deg C
Measured
Paper
Every Month
Total
Phulpur Unit I
Drying of make-up gas and synthesis loop re-piping
Tonne / shift
Measured
Every Month
Total
Paper
Kg/sqcm(g)
Measured
Every Month
Total
Paper
Data Variable
D.2.1.1 (b) 25
across LT shift
converter
Page 60
Source of
data
Data unit
Measured
Recording
(m),
Frequency
calculated
(c) or
estimated (e)
Proportion
of data
to be
monitored
Comment
D.2.1.1 (b) 26
LP steam
Plant
consumption for
regeneration
Tonne / shift
Measured
Every Month
Total
Paper
D.2.1.1 (b) 27
Plant
Percent
Measured
calculated
Total
Paper
D.2.1.1 (b) 28
Process steam
in primary
reformer
Plant
Tonne / shift
Measured
Every Month
Total
Paper
D.2.1.1 (b) 29
CO slip
Plant
D.2.1.1 (b) 30
Temperature
across new
Plant
Data Variable
Page 61
Source of
data
Data unit
Measured
Recording
(m),
Frequency
calculated
(c) or
estimated (e)
Proportion
of data
to be
monitored
BFW Preheater
D.2.1.1 (b) 31
BFW flow
Plant
D.2.1.1 (b) 32
Steam
Plant
consumption in
synthesis gas
turbine
D.2.1.1 (b) 33
NH3
concentration
Plant
Tonne / shift
Measured
Every Month
Total
Measured
Every Month
Total
Paper
Paper
D.2.1.1 (b) 34
Steam
Plant
consumption in
synthesis gas
turbine
Tonne / shift
D.2.1.1 (b) 35
Inlet
temperature of
Deg C
Measured
Plant
Paper
Every Month
Total
Paper
Comment
Data Variable
Page 62
Source of
data
Data unit
Measured
Recording
(m),
Frequency
calculated
(c) or
estimated (e)
Proportion
of data
to be
monitored
make up gas of
synthesis
compressor
Comment
improvement
in
volumetric efficiency of
compressor, due to reduction in temperature of inlet
gas. The data would be archived until 2 years after
end of the crediting period.
Aonla Unit I
Complete revamping of Co2 removal system to a modern to 2stage GV process
D.2.1.1 (b) 36
LP steam
Plant
consumption for
regeneration
Tonne / shift
Measured
Every Month
Total
Paper
D.2.1.1 (b) 37
Plant
Percent
Measured
calculated
Total
Paper
D.2.1.1 (b) 38
Process steam
in primary
reformer
Plant
Tonne / shift
Measured
Every Month
Total
Paper
D.2.1.1 (b) 39
Outlet
Plant
Temperature of
process
condensate
from
condensate feed
exchanger
Deg C
Aonla Unit II
Installation of additional process Condensate / PC Exchanger
Measured
Every Month
Total
Paper
Modification of HT steam super heat coil in waste heat section of primary reformer
Page 63
ID number
Data Variable
Source of
data
D.2.1.1 (b) 40
Outlet
Plant
Temperature of
HP steam at
super heater
D.2.1.1 (b) 41
Flue gas
temperature
going to stack
Plant
D.2.1.1 (b) 42
LP steam
import from
power plant to
Ammonia I
plant
Plant
Data unit
Measured
Recording
(m),
Frequency
calculated
(c) or
estimated (e)
Measured
Every Month
Proportion
of data
to be
monitored
Comment
Total
Page 64
Appendix - 2
LIST OF ABBREVIATIONS
CC
CDM
CER
CO
CO2
CP
Cum
DCS
DOE
DPR
EB
EIA
GHG
GJ
GV
GOI
GoUP
GEB
GWh
HP
HR or hr
HV
IPCC
IFFCO
KP
LP
1 Lakh
MkWh
MU
MT
NG
p.a.
PDD
PFD
PLF
PIN
SSCR
TJ
TPH
UNFCCC
UP
UPPCB
LSHS
HTAS
Climate Change
Clean Development Mechanism
Certified Emission Reductions
Carbon Monoxide
Carbon di-oxide
Credit Period
Cubic Meter
Distributed Control System
Designated Operational Entity
Detailed Project Report
Executive Board
Environmental Impact Assessment
Green House Gas/es
Gega Joules
Giammarco-Vetrcoke
Government of India
Government of Uttar Pradesh
Gujarat Electricity Board
Gega Watt hour
High Pressure
Hour
High Voltage
Intra-governmental Panel for Climate Change
Indian Farmers Fertilizer Cooperative
Kyoto Protocol
Low Pressure
1,00,000
Million Kilo Watt hour
Million units
Metric Ton
Natural Gas
Per annum
Project Design Document
Process Flow Diagram
Plant Load Factor
Project Idea Note
Specific Steam Consumption Ratio
Trillion Joules
Tones Per Hour
United Nations Framework Convention on Climate Change
Uttar Pradesh
Uttar Pradesh Pollution Control Board
Low Sulphur Heavy Stock
Haldor Topsoe
Page 65
Appendix - 3
LIST OF REFERENCES
Sr.No
1.
2.
3.
4.
UNFCCC document, Clean Development Mechanism-Project Design Document (CDMPDD) version 01(in effect as of: August 29, 2002)
5.
6.
7.
8.
9.