UNFCCC/CCNUCC

CDM Executive Board

Page 1

PROJECT DESIGN DOCUMENT FORM FOR SMALL-SCALE CDM PROJECT ACTIVITIES (F-CDM-SSC-PDD) Version 04.0

PROJECT DESIGN DOCUMENT (PDD)

Title of the project activity

Version number of the PDD Completion date of the PDD Project participant(s) Host Party(ies) Sectoral scope(s) and selected methodology(ies)

Estimated amount of annual average GHG emission reductions

Autoclaved Aerated Concrete blocks/panel manufacturing unit based on an energy efficient brick manufacturing technology 01 02.06.2012 UAL INDUSTRIES LTD India Sectoral Scope: 04 -Manufacturing Industries Methodology: AMS III.Z. - Fuel switch, process improvement and energy efficiency in brick manufacture Version 03 566014 tCO2e (approximate)

UNFCCC/CCNUCC

CDM Executive Board

Page 2

SECTION A. Description of project activity A.1. Purpose and general description of project activity >> UAL INDUSTRIES LTD 1 proposes to undertake the project activity at its new unit UAL-KON_CRETE, which entails manufacturing of the Autoclaved Aerated Concrete (hereafter referred to as AAC) blocks and panels with an energy efficient brick manufacturing technology supplied by HESS, Netherland. The prime objective of the project activity is to produce a high-quality, load-bearing and well insulating building material by adopting an efficient low energy intensive brick production process instead of a high energy intensive brick production process like Clay Brick Bulls trench kilns (BTKs) and positively impact the energy consumption pattern both at the brick production level and at the building operation level. While attaining the prime objective the project activity will also (1) Reduce GHG emissions associated to energy consumption (both fossil fuel and electricity) in the high energy intensive BTKs by an energy efficient brick making technology. (2) Reduce air pollution by introducing robust air treatment facilities in the project activity; the clay brick kiln technology is adopted by an unorganized sector with very poor air treatment facilities; and (3) Enhance the use of fly ash, an industrial -waste, as an ingredient of building material. The AAC block is a steam-cured mix of sand or pulverized fuel ash (PFA), cement, lime, anhydrite (gypsum) and an aeration agent. The high-pressure steam-curing in autoclaves achieves a physically and chemically stable and light weight product, comprising myriads of tiny non-connecting air bubbles which give AAC its diverse qualities and makes it such an excellent insulating material. Production process of AAC blocks does not involve sintering or kiln heating for blocks consolidation and thus completely eliminates the burning of fossil fuels as required in the clay brick production by adopting the green waste mixing technology in PFA slurry process, ultimately contributing to the reduction of greenhouse gas emissions. The core of this technology is the AAC blocks composition and its chemistry, with fly ash from thermal plants mixed with lime and gypsum, which enable the blocks to acquire the mechanical properties required during the hydration and curing process without being sintered. The production process consists of the following steps: 1. Dosing and mixing of fly ash with lime, Ordinary Portland Cement (OPC), stabilisers and gypsum at a high dosing speed at very high accuracy. 2. Casting and rising/pre curing of the mixture to enable the fresh mix to rise and harden to a firm green cake with the volume of the mould. 3. Tilting mould cakes with the tilt manipulator on to a cutter machine and oiling to prevent the sticking of the green cakes for reuse. 4. Horizontal and cross cutting the cakes by cutter which are equipped with broken-wire-detection system. 5. Milling and back tilting onto a cooking frame. 6. Green separation of cut cakes by passing through the green separator to avoid sticking of cut layers during autoclaving and eliminating further mechanical separation in white state. 7. Curing with a steam at pressure of approximately 12 Bar in autoclave system for 12 hrs period. 8. A post autoclaving, after buffering and de-stacking of hardened cakes from the cooking frames to the packaging line for final packaging.

www.ualindia.com

Due to its high insulating properties it would reduce the buildings heat load thereby affecting the air conditioning related energy consumption patterns
2

UNFCCC/CCNUCC

CDM Executive Board

Page 3

Clay brick manufacturing, an alternative brick manufacturing technology and the baseline scenario as identified in section B.4 below involves two key processes: (a) producing green bricks and (b) sintering/firing the green bricks in a kiln. The sintering process requires huge amount of thermal energy inputs. Production of AAC blocks and panels does not require any sintering process as the project activity completely eliminates the burning of fossil fuel as required in the clay brick production. So the amount of such energy which is required in the project activity scenario is much lower than the thermal energy required in clay brick manufacturing process. Therefore, the project activity enables total energy reduction and its associated GHG reduction due to change in brick production process. The machines will be supplied by HESS, Netherland. These types of machines require electricity and/or fuel oil as fuels for their steam generation and operation. The consumption of such forms of energy (electricity and/or Fuel oil in high efficiency boiler) however is much lower compared to the thermal energy consumed for production of burnt clay bricks. AAC block technology needs cement and lime as process inputs, which are sources of emissions during their production. However, such emissions are negligible when compared to the emissions from baseline activity, thereby leading to emission reductions. Contribution to sustainable development The project activity contributes to sustainable development and mitigation of climate change through the following: Environmental Benefits: Reduction of energy resources consumption: Since there is no sintering or cooking in the project activity, this technology is more efficient in terms of energy consumption and results in lower energy consumption than the clay brick manufacturing. Reduction of fossil fuels consumption: Clay brick manufacturing process are fossil fuel based technologies, especially coal, in India. With the implementation of the proposed project activity, consumption of fossil fuels for building material manufacturing will be avoided, thus contributing to reduce GHG emissions. Utilisation of a waste materials from other industries as raw materials: The raw materials used in the project activity are mostly (to the extent of 67%) waste materials or by products from other industries. Pulverized fuel ash (PFA), is a waste that creates both problems regarding its disposal and environmental degradation due to its potential to pollute both air and water. Indian coals have very high ash content to the tune of 25 and 45%. However, coal with an ash content of around 40% is predominantly used in India for thermal power generation. As a consequence, a huge amount of fly ash is generated in thermal power plants, causing several disposal-related problems. According to the Annual Report 2008-09 from the Ministry of Environmental and Forests of India, the annual generation of fly ash is expected to be around five hundred million tonnes by 2031-322.With this alternative use of fly ash, the problem of the management of this waste will be slightly reduced. Reduction of resources consumption: fly ash utilisation in the proposed project activity will contribute to savings in natural resources, mainly the land (and top soil), water, coal and limestone. The utilisation of fly ash in the manufacture of building blocks, as in the proposed project activity, will release considerable amounts of land. Also, water will be saved due to reduced fly ash disposal from thermal power plants. Reduction of waste generation in the manufacturing process: No waste material is generated in the manufacturing process of AAC blocks and panels. On the contrary, waste materials from other industries are used but no wastes are generated.

Social benefits: Improvement of air quality in the nearby region: With the avoidance of fossil fuel combustion in the proposed project activity, the exhaust gas emissions and direct air pollution will be substantially reduced in the neighbouring region.

http://moef.nic.in/report/0809/Annual_Report_ENG_0809.pdf#page=244

UNFCCC/CCNUCC

CDM Executive Board

Page 4

Better quality employment creation: The proposed project activity will be situated in the Bagnan, Howrah in state of West Bengal. Since the proposed project activity is a green field project it will create a huge amount of employment benefits in the entire project area. Economical Benefits: Reduction of dependence from fossil fuels: The project activity will reduce to the maximum the dependence of the brick manufacturing process from fossil fuels. This will reduce the overall dependence of the whole region from the imports and availability of fossil fuels and will allow other industries to use energy resources which will allow their development. Technical Benefits: Enhancement of the use of green building material: The following are the eco logical green building quality and characteristics of AAC blocks: Energy efficient Lower energy consumption per cum in production process Best thermal insulation, 6 to 10 times better than regular concrete Non-toxic, environmentally friendly Un-suppressed fire resistance Excellent sound absorption No waste of raw materials AAC blocks/panels are a high quality product with high insulating capabilities their use would lead to lower energy consumption at the air conditioning end of the construction building and would partly help the building in achieving the green building status. Its low density properties would enable the building structure to be light weight and thus would require less deep foundations. A.2. Location of project activity A.2.1. Host Party(ies) >> India A.2.2. Region/State/Province etc. >> West Bengal A.2.3. City/Town/Community etc. >> Bagnan, Howrah A.2.4. Physical/ Geographical location >> The proposed project activity will be set-up in eastern India, preferably near the major raw material source (i.e., fly-ash from the Kolaghat thermal power plant located at 12 km distance from the plant) at Bagnan, Howrah which is located at 50 km away from Kolkata, the capital of West Bengal. The co-ordinates of the project site as below: Latitude: 2228'11"N Longitude: 8815'00"E http://policewb.gov.in/wbp/district/Howrah/hwhstat.html

UNFCCC/CCNUCC

CDM Executive Board

Page 5

Figure 1: Location Map

The project site is very close to the main source of fly ash a pollutant waste of thermal power station, used as one of the major ingredients of AAC blocks, available at Kolaghat Thermal Power Station (KTPS) which around 12 km from the plant at Bagnan. A.3. Technologies and/or measures >> The project proponent has adopted the new energy efficient technology which will be supplied by HESS, Netherland for the AAC block/panel manufacturing process. The project activity will have a plant capacity of 450 CuM/day in the 1st year enhanced to 900 CuM/day, 2nd year onwards. The key raw material ingredients of the AAC building blocks are fly ash, lime, and gypsum, cement, aluminium which are well-known mineral substitutes. All these materials are available in the form of wastes and by-products from industrial activities and are available in adequate quantities. The following table gives the raw material inputs per cubic meter for typical recipe of AAC blocks and panels:
Table A.3.1: Raw material Consumption for AAC block/panel manufacturing process

Ingredients Fly ash(PFA) Lime Cement Anhydride Aluminium (metal powder)

Raw Material Consumption per Cum of AAC blocks/panels 272 Kg 71 Kg 95 Kg 12 Kg 0.46 Kg

UNFCCC/CCNUCC

CDM Executive Board

Page 6

Total solid Water in the mix(total,excl. steam) Condensate which can be reused in the mix (water consumption above will be reduced correspondingly)

450 Kg 370 Kg 90 Kg

Besides the HESS machinery there is more additional services machinery & equipments required in the process operations are described as below: Table A.3.2: Description of the machinery used in AAC block/panel manufacturing process: Name of the Machines Specification of the Machines Numbers of machines used 1

Boiler

Air Compressor

TPH Boiler pressure Enthalpy(Liquid) Efficiency on FO on 100% loads with heat recovery unit Air Receiver capacity Free Air delivery Motor Input (Power)

16 17.5 kg/cm2 420.06 KJ/Kg

94% 1.0 m3 (1000 I) 462 cfm 350 cfm 75 kW(100 Hp) 55 kW (75Hp)

Vacuum Pump (for Autoclave machine) Auto clave

Main Transformer

Capacity Final pressure Dimension (Dia Lengh) Steam Pressure specification

2000 m3/hr 0.3 Bar Atm (absolute) x 2.9m x43.7m 12 bar 1250 kVA, 11kV/440 V, Indore type 750 kVA

1 1

DG Set

capacity

All the equipments of the plant are purchased as new so the average life time of all the equipments is 20 years. The project technology is environmentally safe and sound as compared to the baseline technology of producing red clay bricks. The project would help the reduction of fly ash dumping problem faced by thermal power plants (classified under hazardous materials category by MOEF - GOI) by making useful application of fly ash for producing building construction material. Also, the technology would be less energy and carbon intensive as compared to conventional bricks manufacturing technology in India.

UNFCCC/CCNUCC

CDM Executive Board

Page 7

The Figure 2: provides Detailed Schematic Diagram of the project activity production process: PFA Lime Cement Gypsum

Dosing and mixing Mixing up the raw materials in the control system of the mixing tower with hot and cold water released through the spray nozzles, Aluminium dry powder is being added in the mixer additionally for making a homogeneous mix of raw materials. Casting &Rising/pre-curing Casting the mix with a mould system with inside dimensions of 6.16 x1.58x0.69 m .the mix is poured into the mould and vibrated so that the entrained air is released. The moulds are then parked in a parking area where the mass inside the mould rises like a cake. Once the cake is harder end enough, the mould is transported to a tilting station and the cake is separated from the mould on a platform which goes through horizontal and cross cutters.

Vertical/Horizontal /Cross cutting and back tilting Cutting and milling the cakes with cutter among them horizontal cutter are equipped with broken wire detection system to indicate the wire which has broken. After cutting the cakes these are being transfer to the milling unit attached with the cutting unit for milling up each side of the cakes. After that the cakes are conveyed to the tilting table for back tilting for giving the extra hardness to the cakes.

Bed waste removal/Green separation/Stacking and buffering of the green cakes All the sticking impurities are being separated in the green separator for avoiding the sticking of layer during the process of Autoclaves. Autoclaving & packaging The cakes are cured with steam at a pressure of approx 12 bars in auto clave machine. After autoclaving the cakes are taken out of autoclaves unloaded from the cooking frame and proceed to the packaging line for final packaging.

Despatch to the market

UNFCCC/CCNUCC

CDM Executive Board

Page 8

The Figure 3: provides Energy and mass flow and balance diagram of the project activity production process:

Raw material (Fly Ash/Cement/ Lime/Gypsu m/Aluminiu m powder

Compressed Air Raw material Pouring and mixing Water

Electricity

NEWNE Grid Moulding & Cutting Electricity DG set Diesel

Curing at Autoclave

Steam

Boiler

Fuel oil Finished product

The above figure represents the energy and mass flow and the balance of the systems and equipments included in the project activity. In the project activity Electricity, Steam & Compressed air are the main types of energy used and the main sources of these energies are as follows: Electricity from NEWNE grid & DG set: Steam- from Boiler: from Fuel Oil combustion Compressed Air from Air Compressor: from Electricity imported from NEWNE

UNFCCC/CCNUCC

CDM Executive Board

Page 9

A.4. Parties and project participants Party involved (host) indicates a host Party India Private and/or public entity(ies) project participants (as applicable) UAL INDUSTRIES LTD Indicate if the Party involved wishes to be considered as project participant (Yes/No) No

A.5. Public funding of project activity >> No public funding from Annex I countries is being received by this project as confirmed vide Annex 2. A.6. Debundling for project activity >> Reference to Appendix C to the simplified modalities and procedures for the small scale CDM project activities; further reference Guidelines on assessment of de-bundling for SSC project activities, Version 033 (EB 54, Annex 13): As per paragraph 2: A proposed small-scale project activity shall be deemed to be a de-bundled component of a large project activity if there is a registered small-scale CDM project activity or an application to register another small scale. CDM project activity: (a) With the same project participants (b) In the same project category and technology/measure (c) Registered within the previous 2 years (d) Whose project boundary is within 1 km of the project boundary of the proposed small scale activity at the closest point? There is no registered project activity or application to register another CDM project activity with the same project participants. Thus it can be concluded that the project activity is not a de-bundled component of a large scale project activity.

http://cdm.unfccc.int/Reference/Guidclarif/ssc/methSSC_guid17.pdf

UNFCCC/CCNUCC

CDM Executive Board

Page 10

SECTION B. Application of selected approved baseline and monitoring methodology B.1. Reference of methodology >> Type III: Other project types Methodology Applied: AMSIIIZ. Fuel Switch, process improvement and energy efficiency in brick manufacture Sectoral Scope: 04 Annex 10 of EB 54, http://cdm.unfccc.int/filestorage/L/U/4/LU42I07KDBSO6C3XYZH59JMNAF8GWP/EB54_repan10_A MS-III.Z_ver03_0406.pdf?t=aHR8bHpiamcxfDA2XMOYQwLTOPhmO5nooaa9 Version 03 Valid from 11 June 2010 onwards. Applied Methodological Tool: 1.Tool to calculate project or leakage CO2 emissions from fossil fuel combustion Version 02, Annex 11, EB 41. http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-03-v2.pdf 2. Tool to calculate baseline, project and/or leakage emissions from electricity consumption, Version 01, Annex 7,EB 39. http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-05-v1.pdf 3. Project and leakage emissions from road transportation of freight Version 01.0.0, Annex 10 of EB63 http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-12-v1.pdf 4. Tool to the demonstration and assessment of additionality, Version (06.0.0), (EB 65) http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-01-v6.0.0.pdf

B.2. Project activity eligibility >> As per the GLOSSARY OF THE CDM TERMS Version 06.0.0, Annex 63, EB 664 A measure, operation or action that aims to reduce GHG emissions, whether as a whole project or as a component of a project, in one of the following categories: (a)Type I project activities: Renewable energy project activities which have an output capacity up to 15 megawatts (or an appropriate equivalent), in accordance with the CDM rules and requirements; (b)Type II project activities: Energy efficiency improvement project activities which reduce energy consumption, on the supply and/or demand side, to a maximum output of 60 GWh per year (or an appropriate equivalent) in accordance with the CDM rules and requirements; (c) Type III project activities: SSC CDM project activities other than Type I and Type II project activities that result in emission reductions of less than or equal to 60 kt carbon dioxide equivalent annually, in accordance with the CDM rules and requirements. The project activity does not fall under Type I and Type II project activities category and aims to reduce GHG emissions of less than 60kt carbon dioxide equivalent annually in accordance with the CDM rules and requirements. Please refer to B.6.4 Summary of ex-ante estimates of emission reductions for data values. Therefore the project activity falls under the SSC Category Type III project activities The selected category for the proposed project activity is as follows: Type III - Other Project Types Methodology AMS IIIZ Fuel Switch, process improvement and energy efficiency in brick manufacture Version: 03 EB 54

http://cdm.unfccc.int/Reference/Guidclarif/glos_CDM.pdf

UNFCCC/CCNUCC

CDM Executive Board

Page 11

Criteria

Justification

1. The methodology comprises one or more technology/measures listed below in existing brick production facilities: Shift to an alternative brick production process; or Partial substitution of fossil fuels with renewable biomass (including solid biomass residues such as sawdust and food industry organic liquid residues); or Complete/partial substitution of high carbon fossil fuels with low carbon fossil fuels. Fuel substitution and associated activities may also result in improved energy efficiency of existing facility; however project activities primarily aimed at emission reductions from energy efficiency measures shall apply AMS-II.D. Thus the methodology is applicable for the production of: (a) Brick that are the same in the project and baseline cases; or
(b) Bricks that are different in the project cases versus the baseline cases due to a change(s) in raw materials, use of different additives, and/or production process changes resulting in reduced use or avoidance of fossil fuels for forming, sintering (firing) or drying or other applications in the facility as long as it can be demonstrated that the service level of the project bricks is comparable to baseline brick. Examples pressed mud blocks (soil blocks with cement)

The project activity is a New facility (Greenfield project activity) therefore this applicability criterion is not applicable PP demonstrates eligibility under point 3 provided below. However it is worthwhile to state that the project activity (a new facility) entails shift from the baseline BTK process which is high energy intensive to an alternative brick production process which is less energy intensive.

It may also be noted that bricks are different in the project case versus the baseline cases due to changes in the raw materials, use of different additives and production process changes resulting in avoidance of fossil fuels for forming, sintering or drying. However it can be demonstrated that the service level of the project bricks is better than the baseline brick. Please refer to Table: B.2.2 for details on Comparison on Service level Outputs.

the project applicability criterion. Therefore

activity

meets

the

2. The measures may replace, modify or retrofit systems in existing facilities or be installed in a new facility.

The project activity measure itself is a whole new facility. Thus, the project activity meets the applicability criterion.

UNFCCC/CCNUCC

CDM Executive Board

Page 12

3. New facilities (Greenfield projects) and project activities involving capacity additions compared to the baseline scenario are only eligible if they comply with related and relevant requirements in the General Guidance for SSC methodologies. As per the General Guidelines for SSC methodologies: Type II and III greenfield projects (new

The project falls under the Type III Greenfield projects (new facilities) and the most plausible baseline scenario for this project activity is the burnt clay brick manufacturing using conventional technologies. This project activity baseline is in line with the baseline requirements of the Type III small-scale methodology. The baseline selection is in compliance with the Step 1, Step 2, Step 3 and Step 4 of the General facilities) may use a Type II and Type III guideline for SSC methodology. Please refer to small-scale methodology provided that they Section B.4 for further details.

can demonstrate that the most plausible baseline scenario for this project activity or PoA is the baseline provided in the respective Thus, the project activity meets the applicability Type II and Type III small-scale methodology. criterion. The demonstration must include the assessment of the alternatives of the project activity or PoAs using the following steps:
Step 1: Identify the various alternatives available to the project proponent that deliver comparable level of service including the proposed project activity or PoA undertaken without being registered as a CDM project activity or PoA. Step 2: List the alternatives identified per Step 1 in compliance with the local regulations (if any of the identified baseline is not in compliance with the local regulations, then exclude the same from further consideration). Step 3: Eliminate and rank the alternatives identified in Step 2 taking into account barrier tests specified in attachment A to Appendix B of the Simplified modalities and procedures for small-scale CDM project activities. Step 4: If only one alternative remains that is: (a) Not the proposed project activity or PoA undertaken without being registered as a CDM project activity or PoA; and (b) It corresponds to one of the baseline scenarios provided in the methodology; then the project activity or PoA is eligible under the methodology. If more than one alternatives remain that correspond to the baseline scenarios provided in the methodology, choose the alternative with the least emissions as the baseline. 4. The requirements concerning demonstration of the remaining lifetime of the replaced equipment shall be met as described in the General Guidance for SSC methodologies. If

The project activity is not a replacement or retrofit to an existing facility. The project activity is being implemented as a New facility (Greenfield project). Thus the criterion under discussion is not

UNFCCC/CCNUCC

CDM Executive Board

Page 13

the remaining life time of the affected systems increases due to the project activity, the crediting period shall be limited to the estimated remaining lifetime, i.e, the time when the affected systems would have replaced in the absence of the project activity.

applicable.

5. In the case of existing facilities, this category is only applicable if it can be demonstration, with historical data, that for at least three year prior to the project implementation, only fossil fuel (no renewable biomass) was used in the brick production systems, which are being modified or retrofitted. 6. In the case of project activities involving changes in raw materials (including additives), it shall be demonstrated that additive materials are abundant in the country/region according to the following procedures: Step 1: Using relevant literature and/or interviews with experts, a list of raw materials to be utilized is prepared based on the historic and/or present consumption of such raw materials. Step 2: The current supply situation for each type of raw material to be utilized is assessed and their availability abundance is demonstrated using one of the approaches below: Approach 1: Demonstrate that the raw materials to be utilized, in the region of the project activity, are not fully utilized. For this purpose, demonstrate that the quantity of material is at least 25% greater than the demand for such materials or the availability of alternative materials for at least one year prior to the project implementation. .Approach 2: Demonstrate that suppliers of raw materials to be utilized, in the region of the project activity, are not able to sell all of the subject raw materials. For this purpose, project participants shall demonstrate that a representative sample of suppliers of the raw materials to be utilized, in the region, had a surplus of material (e.g., at the end of the period during which the raw material is sold),which they could not sell and which is not utilized.

The project activity is not a replacement or retrofit to an existing facility. The project activity is being implemented as a New facility (Greenfield project). Thus the criterion under discussion is not applicable.

The project involves changes in raw materials viz-aviz baseline scenario of burnt clay brick

manufacturing using conventional technologies.

The project activity is a small scale project with 450 CuM per day capacity in the 1st year and 900 CuM per day capacity 2nd year onwards. Step 1: The project activitys annual requirement of Flyash, Lime, Gypsum, Cement and Aluminium is as follows as per the manufacturer Table B.2.1: Quantity of raw material consumption for AAC block manufacturing process Parameter-Comment Quantity Required (MT) Fly ash Maximum 33048 MT 1st year quantity 67932 MT 2nd year Cement quantity Lime quantity Gypsum quantity High 11543 MT 1st year 23726 MT 2nd year Medium 8627 MT 1st year 17732 MT 2nd year Low 1458 MT 1st year 2997 MT 2nd year

Aluminium Very low 56 MT 1st year quantity 115 MT 2nd year Step 2: The current supply situation of each type of raw material to be utilized is assessed below and their abundance is demonstrated [A] Fly ash - The annual nationwide generation of fly ash is over 130 million tons. (http://www.dst.gov.in/whats_new/what_new08/flyash.pdf). Being a by product of coal based thermal power plants with annual generation in millions of tons, fly ash is abundantly available within a feasible distance from the plant.

UNFCCC/CCNUCC

CDM Executive Board

Page 14

Fly ash source for the project activity is Kolaghat Thermal Power Station (KTPS) which is 20 km away from the plant and it is basically an industrial by product of this plant. KTPS is generating 75008000 MT of fly ash per day (i.e. to the tune of 2625000-2800000MT per annum) by using 18000 tonnes of coal per day. The fly ash is disposed on land and causes soil as well as water pollution and affects the environmental ecosystem. Further to dispose the generated fly ash the plant authority would require 1250 acre land in its whole life span5 i.e, the growth of generation of fly ash is much higher compared to recycling procedure. Cement & lime are commercially available products in the market and moreover is a product of localised market in a specified logistical radius. Gypsum comes as a by product from hydrofluoric acid and fertiliser industries which is available commercially in the market. Gypsum input in AAC bricks/ block production is very small and hence there is no shortage for this product i.e, the Gypsum is abundantly available and in parallel the use is very lower.

Thus the criterion under discussion is not applicable.

7. This methodology is applicable under the following conditions: a) The service level of project brick shall be comparable to or better than the baseline brick, i.e., the bricks produced in the brick production facility during the crediting period shall meet or exceed the performance level of the baseline bricks (e.g., dry compressive strength, wet compressive strength, density). An appropriate national standard shall be used to identify the strength class of the bricks, bricks that have compressive strengths lower than the lowest class bricks in the standard are not eligible under this methodology. Project bricks are tested in nationally approved laboratories at 6 months interval (at a minimum) and test certificates on compressive strength are made available for verification; The applied methodology satisfies the following applicable conditions to the project case: (a) The service level of the project brick is higher and a the comparative data of the project bricks & baseline bricks are provided below: Table B.2.2: Comparison of Service level of the project bricks with baseline bricks: Baseline Bricks Minimum Compressive 3 Strength(N/mm^2) Dry density (kg/m^3) 2300 to 2600 Water absorption % 20 Parameters Project bricks 3.5 500 7.5-11

Further the service level of the project brick will be tested in nationally approved laboratories at 6 months interval and test certificates on compressive strength will be made available for verification through the crediting period in line with the methodology requirements to evidence that service level of the project brick is higher than the service level of the baseline brick.

http://www.etravers.net/Art_010.pdf

UNFCCC/CCNUCC

CDM Executive Board

Page 15

7b) The existing facilities involving modification and/or replacement shall not influence the production capacity beyond 10% of the baseline capacity unless it is demonstrated that the baseline for the added capacity is the same as that for the existing capacity in accordance with paragraph 3

The project activity is not a replacement or retrofit to an existing facility. The project activity is being implemented as a New facility (Greenfield project). Thus the criterion under discussion is not applicable.

c) Measures are limited to those that result in c) Emission reductions from the project activity emission reductions of less than or equal to 60 kt are estimated to be around 28.38 ktCO2 for the CO2 equivalent annually. 1st year, 58.336 ktCO2 for the 2nd year and

59.912 ktCO2 3rd onwards, which is less than the methodology limit of 60 ktCO2e annually. The project activity adopts a new technology and the local regulations do not require the use of
proposed technologies. Hence referred methodology is applicable for the project activity.

8. This methodology is not applicable if local regulations require the use of proposed technologies or raw materials for the manufacturing of bricks unless widespread non compliance (less than 50% of brick production activities comply in the country)of the local regulation evidenced.

Thus, the project activity fulfils the applicability criteria of AMS-III.Z, version 03, and accordingly the application of the methodology is justified.

UNFCCC/CCNUCC

CDM Executive Board

Page 16

B.3. Project boundary >> As per paragraph 9 of the methodology, the project boundary is the physical, geographical site where the brick production takes place during both the baseline and crediting periods. In both Baseline & Project Scenario, boundary is depicted diagrammatically as below: Project Boundary Transportation (LEy) CO2, Raw materials Raw material storage Raw material Mixing NEWNE Boiler
Coal

Mineral storage & preparation of raw CO2(PEy) Materials Forming the brick Drying & cutting Firing & Cooling

Block moulding

CO2(PEy) Electricity

Steam

Electr icity

Pressing & Cutting

CO2(PEy) DG Set

Diesel oil

Autoclave Curing

CO2 (PEy)

Boiler

Fuel oil

De-stacking & Storage of BTK Clay bricks (Finished Product)

AAC Blocks/Panels (finished product)

Service level is better & more Energy Efficient than Baseline

= Baseline Emission (BEy)

= Project Emission (PEy)

= Leakage Emission (LEy)

Figure 3: Schematic diagram of boundary at the crediting period

UNFCCC/CCNUCC

CDM Executive Board

Page 17

B.4. Establishment and description of baseline scenario >> As per paragraph 10 of the methodology AMS-III.Z Version 03, The baseline emissions are the fossil fuel consumption related emissions (fossil fuel consumed multiplied by an emissions factor) associated with the system(s), which were or would have otherwise been used, in the brick production facility(ies) in the absence of the project activity. (a) For projects that involve replacing, modifying or retrofitting systems in existing facilities, the average of the immediately prior three-year historical fossil fuel consumption data, for the existing facility, shall be used to determine an average annual baseline fossil fuel consumption value. Similarly, prior three-year historical baseline brick production rate in units of weight or volume. For calculating the emission factor, reliable local or national data shall be used. IPCC default values shall be used only when country or project specific data are not available or demonstrably difficult to obtain; (b) For projects involving installation of systems in a new facility, the average annual historical baseline fossil fuel consumption value and the baseline brick production rate shall be determined as that which would have been consumed and produced, respectively, under an appropriately baseline scenario. If the baseline scenario identified includes different technologies with different levels of energy consumption, a weighted average energy use of these technologies can be considered for determining the baseline emissions of the facility or facilities. Since the project activity involves setting up new facility for production of bricks by adopting an alternative energy efficient technology and entails GHG emission reductions with reference to the system(s) which would have otherwise been used in the brick production facility in the absence of the project activity, para 10 of the methodology AMS-III.Z Version 03 point (b) would apply. Therefore baseline emissions are the fossil fuel consumption related emissions (fossil fuel consumed multiplied by an emissions factor) associated with the system(s), which would have otherwise been used, in absence of project activity. For the project activity case the average annual historical baseline fossil fuel consumption value and the baseline brick production rate shall be determined as that which would have been consumed and produced, under an appropriate baseline scenario. Building materials in India may include Burnt Clay Bricks, Cement Concrete Blocks, Fly ash bricks and Autoclaved Aerated Concrete Blocks (manufactured in the project activity). However it is worthwhile to note that Burnt clay bricks continue to be the most popular form of walling material in the country. India is the second largest producer of clay fired bricks, accounting for more than 10 percent of global production. They are cheap and have traditionally been believed to be the most suitable walling material for building construction. Although alternative building materials such as cement concrete block and fly ash bricks, have been introduced in the recent past, burnt clay bricks account for more than 95% of the total market for walling material in larger parts of the country. This can be seen from the data presented below (Source: A study on Cost Effective Building Materials & Technologies undertaken by Holtec Consulting Private Limited in the year 2004 on behalf of Building Materials Technology Promotion Council, Ministry of Housing and Urban Poverty Alleviation, Government of India).

Table B.4.1: Market share of different walling materials

UNFCCC/CCNUCC

CDM Executive Board

Page 18

Type of walling material

Market Size (Rs. Crores)

% of Total market

Burnt Clay Brick Fly Ash Bricks Cement Concrete Blocks Total

32825 1135 485 34445

95.3 3.3 1.4 100

The project activity product output AAC Blockss awareness levels were very low and are yet to penetrate in the markets. As stated above the prime reason why clay brick accounts for 95% of the share is that they are cheap and have traditionally been believed to be the most suitable walling material for building construction. This can be demonstrated from the table 2.2 given below: Table B.4.2: Cost of 100 sq ft area and 4 inch wall with different walling materials
Dimension (inch/inch/inch) Number of Brick Rate (INR/brick) Cost (INR)

Volume of 100 sq ft area and 4 inch thick wall Clay Brick FA Bricks AAC Blocks

57600 inch3 139 112.6 1779.57 414 512 32 6 5.5 112.12 2486 2815 3629

From the above table 4.1 and table 4.2, we may conclude that use of Burnt Clay Bricks is the cheapest alternative and has been the prevailing practice. In the absence of the project activity, i.e. in the baseline scenario, it is expected that the burnt clay brick manufacturing using conventional technologies will continue to meet the walling material demand in the country resulting substantial CO2 emissions. As per the para 10 point (b) of the methodology If the baseline scenario identified includes different technologies with different levels of energy consumption, a weighted average energy use of these technologies can be considered for determining the baseline emissions of the facility or facilities. Production of burnt clay bricks employs different technologies with different levels of coal consumption. However some technologies are not comparable and some are legally not acceptable. The brick manufacturing technologies were analyzed to determine the appropriate baseline selection for burnt clay brick manufacturing. Bulls trench kilns (BTKs) and clamps are two prominent firing technologies used for brick making in India. Kiln type Comments *Typical production capacity range for Kiln Type: Clamps 0.5 10 (lakh bricks per year) Clamps are used for smaller production levels. A variety of fuels such as coal, firewood, various types of agricultural residues and dung cakes are used in clamps. Large variations are observed in the shape, size, stacking of bricks and firing techniques in clamps. Generally, energy efficiencies of clamps are lower. Therefore, Clamps has been considered amongst the technologies that are a part of the realistic baseline option. *Typical production capacity range for Kiln Type: BTKFixed 30 100 (lakh bricks per year) chimney The BTK is a continuous type kiln and has higher production capacities. Coal is the main fuel used in BTKs. It also has better energy efficiency compared to clamps. FC BTK Accounts for more than 70% of

UNFCCC/CCNUCC

CDM Executive Board

Page 19

total brick production in India. (Reference: Therefore, FC-BTK can be considered as a realistic baseline option. Although there are many brick production technologies existent but almost all the brick kilns in entire Varanasi cluster are of the traditional coal fired fixed chimney Bull s Trench Kilns (BTK) type, with fixed natural draft chimneys except a few kilns which are operating using induced draft fans for better airflow in the firing/ cooling zone. - BEE, 2010, Detailed Project Report on Induced Draft Fan in Brick Industry, Brick SME Cluster, Varanasi, Uttar Pradesh (India), New Delhi: Bureau of Energy Efficiency; Detail Project Report No.: VRN/BRK/IDF/04. Therefore, BTK-Fixed Chimney has been considered amongst the technologies that are a part of the realistic baseline option *Typical production capacity range for Kiln Type: BTK 20 80 (lakh bricks per year) Moving chimney Regulatory interventions in the form of stricter emission standards and non-approval of new MCBTKs have been made since 1990s in order to control the increasing pollution from the brick industry (http://www.cpcb.nic.in/standard8.htm ). The regulatory intervention has been further strengthened with a Supreme Court ruling, which has banned the use of MCBTK nationwide. Therefore, BTK-Moving Chimney has not been considered amongst the technologies that are a part of the realistic baseline option *Typical production capacity range for Kiln Type: High 30 50 (lakh bricks per year) draft/zig-zag firing HDKs are very limited in number (only 200) as they have not been widely accepted by brick entrepreneurs. One of the major considerations in operation of HDKs is the use of forced draught which is created using electrically operated fans. In view of the highly unreliable electricity supply situation in rural areas, the issue of reliable operation remained a high concern for brick entrepreneurs. Backup supply of electricity with captive sources is not financially viable. The entrepreneurs who earlier opted for this technology have already closed down their HDK plants. Therefore, HDK has not been considered amongst the technologies that are a part of the realistic baseline option *Typical production capacity range for Kiln Type: Vertical shaft 5 40 (lakh bricks per year) brick kiln (VSBK) Regulatory authorities have been promoting VSBK technology since it is considered to be one of the efficient technologies amongst those available. However due to several barriers, the number of plants using VSBK is extremely limited. In March 2005, as a part of the Community Development C Fund, Technology and Action for Rural Advancement (TARA) was to facilitate installation of 100 VSBKs across 4 states. TARA was to provide the technology package and existing kiln owners the finance. Though these projects were considered as CDM projects, VSBK has been considered amongst the technologies that are a part of the realistic baseline option *Comprehensive industry document with emission standards, guidelines and stack height regulation for vertical shaft brick kilns (VSBK) viz-a-viz pollution control measures, COINDS/71/2007, CPCB, MoEF, May 2007. As per the para 10 point (b) of the methodology, since the baseline scenario identified includes Clamps, FC-BTK and VSBK technologies with different levels of energy consumption, a weighted average energy use of the Clamps, FC-BTK and VSBK technologies have been considered for determining the annual production specific emission factor and thereafter the baseline emissions of the project activity facility.
Table B.4.3 provides the Annual Production Rate of brick production.
Kiln type Typical production capacity range (lakh bricks per year) Lower Range Higher Range Average Kilns Number Total Production Lakh bricks Volume of brick m3 Total production m3/year

Clamps FC BTK VSBK

0.5 30 5

10 100 40

5.25 65 22.5

60000 55000 100

315000 3575000 2250

0.0015 0.0015 0.0015

48478500 550192500 346275

UNFCCC/CCNUCC

CDM Executive Board

Page 20

The baseline specific coal consumption (coal use for production of unit volume of bricks/blocks) is determined by considering the specific energy consumption of the above mentioned technologies and their prevalence production rates presented in the table 4.3 above. Annual production specific emission factor is then computed based on the specific coal consumption, its calorific value and emission factor.
Table B.4.4: Baseline Specific Coal consumption and annual production specific emission factor Basis: Energy consumption (MJ/kg of brick) Specific Coal Specific Coal Consumption Consumption Kiln Type Lower Range Upper Range Avg (kgCoal/kg brick) (kgCoal/m3 brick)

Clamps FC BTK VSBK Kiln Type Clamps FC BTK VSBK

2 1.1 0.74 Total production (m3/year) 48478500 500175000 346275 548999775

3 2 1.07

2.5 1.55 0.905

0.096899225 0.060077519 0.035077519

242.248062 150.1937984 87.69379845 Total Coal Consumption (kg) 11743822674 82635501453 30366170.06 94409690298

Specific Coal Consumption (kgCoal/m3 brick) 242.248062 150.1937984 87.69379845 157.60763

Weighted average Specific coal consumption, t/m3 = 0.15760763 Specific heat consumption, MJ/m3 = 25.8 x 0.15760763 = 4066.2767 Annual production specific emission factor, tCO2/m3 = 4066.2767 x 25.8 x 44/12 /10^6 = 0.3847 Therefore Annual production specific emission factor = 0.3847 tCO2/m3

UNFCCC/CCNUCC

CDM Executive Board

Page 21

B.5. Demonstration of additionality: >> The Projects additionality should be demonstrated and assessed using the latest version of Tool for the demonstration and assessment of additionality. The following steps from the additionality tool have been presented below: STEP 1 Identification of alternatives to the project activity consistent with current laws and regulations STEP 2 Investment analysis STEP 3 Barriers analysis STEP 4 Common practice analysis Step1. Identification of alternatives to the project activity consistent with current laws and regulations As per the approved methodology, the project proponent have identified the above mentioned realistic and credible alternative(s) that were available to them and that would provide output and services comparable to the project activity (refer section B.4).These alternatives are in compliance with all applicable legal and regulatory requirements. Step 2. Investment analysis The tool requires project proponent to -Determine whether the proposed project activity is not: (a) The most economically or financially attractive; or (b) Economically or financially feasible, without the revenue from the sale of certified emission reductions (CERs). To conduct the investment analysis, used the following sub-steps: Sub-step 2a. Determine appropriate analysis method In the Tool for the demonstration and assessment of additionality (Version 05.2), three options are available for investment analysis: the simple cost analysis (Option I), the investment comparison analysis (Option II) and the benchmark analysis (Option III). Option I - Simple Cost Analysis - Since the Project will receive additional revenues from the sale of AAC blocks &panels obtained as output, the simple cost analysis is not applicable. Option II - Investment Comparison Analysis The Analysis is based on the comparison of returns of the project investment with the investment required for an alternative to the project. In this case, none of the credible alternatives to the CDM project activity involve investments and returns that could be compared to the project. Therefore, Option-II is also not applicable to this project. According to the Additionality Tool, if the alternative to the CDM project activity does not include investments of comparable scale to the project, then Option III must be used. Given that the project developer does not have alternative and comparable investment choices, benchmark analysis (Option III) is more appropriate than investment comparison analysis (Option II) for assessing the financial attractiveness of the project activity. References: http://cdm.unfccc.int/Reference/Guidclarif/reg/reg_guid03.pdf Sub-step 2b: Option III: Apply benchmark analysis The project IRR is chosen as the relevant indicator for the project activity. As stipulated in the Tool for the demonstration and assessment of additionality version 06.0.0.

UNFCCC/CCNUCC

CDM Executive Board

Page 22

According to para 12, of EB 62, Annex 5, In cases where a benchmark approach is used the applied benchmark shall be appropriate to the type of IRR calculated. Local commercial lending rates or weighted average costs of capital (WACC) are appropriate benchmarks for a project IRR. The likelihood of development of this project, as opposed to continuation of its baseline has been assessed by calculating its IRR and viewing it in the light of the benchmark set at local commercial lending rate. Hence, the project investment would be considered financially attractive if the Project IRR is above the benchmark interest rate at which the funding may be expected i.e. 13 %, so that the project is capable of servicing the Project Debt. Table B.5.1: Calculation and comparison of financial indicators Project IRR Without CDM 8%

Description UAL- KON_CRETE

Benchmark 13%

As evident the IRR of project is lower than the benchmark rate. However, with the additional revenue from sale of carbon credits from CDM, the IRR increases. This clearly indicates that an investment barrier exists in the project implementation and the project is unattractive compared to the interest rates, which is overcome through the Clean Development Mechanism. Sub-step 2c: Calculation and comparison of financial indicators The project participant provides herein the list of assumptions that were considered to conduct the investment analysis in at the time of investment decision in the Board Meeting held on 15th June 2011. Table B.5.2: Assumptions for Financial Analysis Assumptions supporting Financial Projections Installed Plant capacity Operating days per annum Capacity utilization

Unit Cum/Day Days/annum %

Amount 450 300 90

Escalation 100% in the 2nd year 5% upto a maximum of 95%

Rejection % Fly ash Consumption Cement Consumption Lime Consumption Aluminium powder Consumption Gypsum Consumption Consumption of Electricity for production process. Consumption of fuel(Fuel Oil) for production process Selling Price of the finished goods in 2013-14 Cost of fly ash in 2010-11 Cost of Cement in 2010-11 Cost of Lime in 2010-11 Cost of Aluminium powder in 2010-11 Cost of Gypsum in 2010-11 Furnace oil price in 2010-11 DG fuel Price in 2010-11

% MT MT MT MT MT kWh/Cum Litre/Cum Rs./Cum Rs/ton Rs/ton Rs/ton Rs/ton Rs/ton Rs/litre Rs/litre

1 33048 11543 8627 56 1458 11 8 3800 212 4115 4080 218985 3369 29 9.467

5.26% 0% 4.69% -4.17% 4.64% 4.63% 11.30% 10.37%

UNFCCC/CCNUCC

CDM Executive Board

Page 23

Transportation cost of finished goods in 2010-11 Fly ash Transportation in 2010-11 Cement Transportation in 2010-11 Lime Transportation in 2010-11 Gypsum Transportation in 2010-11 Aluminium Powder Transportation in 2010-11 Salary and wages in 2010-11

Rs/Ton Rs/Ton Rs/Ton Rs/Ton Rs/Ton Rs/Ton Rs/Cum

739.66 192.6 129 3488 3488 5129 132 5.8 6.8 0.844 63.31 0.156 21.84 405.03 146 2% 88.89 108 13 2 24 3.34% 10.34% 10% 15% 8341.87 4940.19 3401.67 8%

10.37% 10.37% 10.37% 10.37% 10.37% 10.37% 5.26% 5.55% -

Tariff of Electricity in 2010-11 Rs/kWh Tariff rate of electricity purchased from grid in Rs/kWh 2013-14 CESU power contribution CESU cost per Cum Rs DG power contribution Total DG cost per Cum Total fuel cost per Cum in 2013-14 Cost of stores and consumable in 2013-14 Advertising expenses in 2013-14 General administrative expenses in 2013-14 Repair & maintenance Cost in 2013-14 Interest Rate in 2013-14 Moratorium Period Total No. of Instalment Depreciation on Civil work Depreciation on plant & machinery Depreciation on Building & Civil IT Act Depreciation on plant & machinery IT Act Total project cost Debt amount Equity amount IRR without CDM revenue Low return on Investment Rs Rs Rs/Cum % of sale value Rs/Cum Rs/Cum % Years Nos. % % % % Rs in Lacs Rs. In Lacs Rs. In Lacs %

An investment analysis of the project activity was conducted based on the above mentioned assumptions considering the Project IRR (post-tax) as the most suitable financial indicator. IRR is the most common financial indicator used by bankers as well as investors to check the financial viability of the project. The Project IRR (post-tax) has been computed over a period of 20 years by taking into account the cash outflows (capital investment in the project) and cash inflows comprising profit after tax, depreciation, interest on term loan and salvage value (in the terminal year). The IRR for the project was determined at 8 % and the same is lower than the benchmark of 13% . Sub-step 2d: Sensitivity analysis: The purpose of sensitivity analysis is to examine whether the conclusion regarding the financial viability of the proposed project is sound and tenable with those reasonable variations in the critical assumptions. The Investment analysis provides a valid argument in favour of additionality only if it consistently supports (for realistic range of assumptions) the conclusion that the project activity is unlikely to be the most financially attractive (as per Step 2c, para11b of the methodological tool Tool for the

UNFCCC/CCNUCC

CDM Executive Board

Page 24

demonstration and assessment of additionality) or is unlikely to be financially attractive(as per Step 2c,para11b of the methodological tool Tool for the demonstration and assessment of additionality). Thus, a sensitivity analysis was also applied to the IRR calculations to measure the impact, positive or negative, of changes in the indicated parameters. The project proponent has chosen the following factors as critical to the operations of the project. These above factors were subjected to 10% variation on either side, based on Guidance on the Assessment of Investment Analysis, Version 2.1,Annex-45 of EB-41, to ascertain the impact on the profitability and hence the IRR of the project. The results of the sensitivity analysis are as given below: Parameter Capacity utilization Project cost Resulting IRR Increase by 10% 11% 8.54

Base case 8% 8%

Decrease by 10% # DIV/0 7.67%

Thus, the sensitivity analysis reveals that even with significant changes in various parameters, the project IRR does not cross benchmark rate. Therefore, the project is additional and is not a business as usual Scenario. The project can become financially attractive only with the CDM benefit. Outcome of Investment Analysis The project activity has lower returns than the benchmark returns calculated at the time of investment decision. Even the 10% increase in the important parameters that affects the returns on the project does not make project financially viable in the absence of the CDM revenue. Thus, the CDM revenue is critical for the financial viability of the project activity. In view of the above it is concluded that CDM project activity is unlikely to be the most financially attractive proposition. CDM Consideration As per the requirement of EB 48, Annex 61; for project activities with a starting date on or after 02 August 2008, the project participant must inform a Host Party DNA and the UNFCCC secretariat in writing of the commencement of the project activity and of their intention to seek CDM status. Such notification must be made within six months of the project activity start date and shall contain the precise geographical location and a brief description of the proposed project activity, using the standardized form F-CDM Prior Consideration. A duly filled Prior Consideration Form has thus been sent to UNFCCC and host country DNA (Ministry of Environment and Forests, MoEF)6. The start date of the project activity is 28th July 2011 7, date on which first work order was issued for the project while prior consideration form was submitted to UNFCCC and MoEF (Host Country DNA) on 17 the January 2011, i.e., within a period of six months from start date. B.6. Emission reductions B.6.1. Explanation of methodological choices >> Methodology Applied: AMSIIIZ. Fuel Switch, process improvement and energy efficiency in brick manufacture Link;
6

Prior consideration sent to UNFCCC & NCDMA

Work Order dated 28th July 2011 issued by UAL Kon_CRETE to HESS AAC System B.V for the supply of Plant and machinery and technical documentation for the autoclaved aerated concrete plant project.
7

UNFCCC/CCNUCC

CDM Executive Board

Page 25

http://cdm.unfccc.int/filestorage/L/U/4/LU42I07KDBSO6C3XYZH59JMNAF8GWP/EB54_repan10_A MS-III.Z_ver03_0406.pdf?t=aHR8bHpiamcxfDA2XMOYQwLTOPhmO5nooaa9 Version 03 Valid from 11 June 2010 onwards Applied Methodological Tool: 1.Tool to calculate project or leakage CO2 emissions from fossil fuel combustion Version 02, Annex 11, EB 41. http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-03-v2.pdf 2.Tool to calculate baseline, project and/or leakage emissions from electricity consumption, Version 01,Annex 7,EB 39. http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-05-v1.pdf 3. Tool to the demonstration and assessment of additionality, Version (06.0.0), (EB 65) http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-01-v6.0.0.pdf 4. Guidelines on the Assessment of Investment Analysis, Version 05 http://cdm.unfccc.int/Reference/Guidclarif/reg/reg_guid03.pdf Emission reduction: Emission reduction as the result of the project activity is calculated using the following equation: ERy =BEy- PEy LEy (1) Where, ERy Emission reduction in year y (tCO2e/yr) BEy Baseline emission in year y (tCO2e/yr) PEy Project emissions in year y (tCO2/yr) LEy Leakage emissions in year y (tCO2/yr) As per the approved methodology the emission associated with baseline, project and the leakage are calculated as below in series:
Baseline Emission: The baseline emissions are the fossil fuel consumption related emissions (fossil fuel consumed multiplied by an emissions factor) associated with the system(s), which were or would have otherwise been used, in the brick production facility (ies) in the absence of the project activity.

As per Section B.4 of the PDD, the baseline to the project activity is Production of equivalent baked clay bricks with the Clamps, FC-BTK and VSBK technologies. For this clay brick production process the baseline emissions can be calculated as below: BEy=EFBLPPJ,y (2) Where, BE y EF BL P PJ,y

The annual baseline emission from fossil fuels displaced by the project activity in tCO 2e in year y (of the crediting period). The annual production specific emission factor for year y, in tCO2/Kg or m3. The annual net production of the facility in year y, in kg or m3.

The annual production specific emission factor (EFy) can be calculated ex-ante as the equation (3) of the approved methodology as follows: EFBL = (FCBL,i,j NCV j EFCO2,j)/PHy Where, (3)

UNFCCC/CCNUCC

CDM Executive Board

Page 26

FC BL,i,j NCVj EFCO2,j PHy

Average annual baseline fossil fuel consumption value for fuel type j combusted in the process i, using volume or weight units. Average net calorific value of fuel type j combusted, TJ per unit volume or mass unit. CO2 emission factor of fuel type j combusted in the process i, in tCO2/TJ. Average annual historical baseline brick production rate in units of weight or volume, kg or m3.

j is the fuel type; Coal is the main fossil fuels used in the traditional brick manufacturing technology.
Project emission: As per approved methodology project activity emissions (PEy) consist of those emissions associated with the use of electricity from grid and fossil fuel (nd Fuel oil).The emission during the project activity can be calculated in accordance with the Tool to calculate baseline, project and /or leakage emissions from electricity consumption, Tool to calculate the emission factor for an electricity system8, version 2.2.1 and Tool to calculate project or leakage CO2 emissions from fossil fuel combustion (tCO2e). The project activity will consume Fossil fuel (Fuel Oil) for its high-pressure steam-curing operations and the associated project emissions will be computed in line with the Tool to calculate project or leakage CO2 emissions from fossil fuel combustion. Electricity for its operations, which will primarily be sourced from grid with a standby option from Diesel Generator Set; and the associated project emissions, will be computed in line with the Tool to calculate baseline, project and/or leakage emissions from electricity consumption and

Therefore PEy = PE FC, y + PE EC,y Where, PE y PEEC,y PEFC, y Project emission during the year y (t CO2e/yr). Project emission from electricity consumption in year y (tCO2e/yr). Project emission from fossil fuel combustion in process j in year y (tCO2e/yr).

(4)

Project emission due to fossil fuel consumption: As per Baseline Methodology Procedure of the Tool to calculated project or leakage CO2 emissions from fossil fuel combustion Version 02, the CO2 emission from fossil fuel combustion in process j are calculated based on the quantity of fuels combusted and the CO2 emission coefficient of those fuels ,as follows: PEFC,j,y = FC i,j,y COEF i,y Where, PEFC,j,y FCi,j,y COEFi,y
8

(5)

Are the CO2 emissions from fossil fuel combustion in process j during the year y (tCO2/yr). Is the quantity of fuel type i combusted in process j during the year y (mass or volume unit/yr). Is the CO2 emission co-efficient of fuel type i in year y (tCO2/mass or volume unit).

http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-07-v2.pdf

UNFCCC/CCNUCC

CDM Executive Board

Page 27

Are the fuel types combusted in process j during the year y.

Fuel oil is used as the fuel type i for the production activity of the AAC blocks/panels. The CO2 emission co efficient COEFi,y can be calculated using one of the following two options ,depending on the availability of data on the fossil fuel type i, as follows: Option A: The CO2 emission coefficient COEFi,y is calculated based on the chemical composition of the fossil fuel type i, using the following approach: If FCi,j,y is measured in a mass unit: COEF i,y = W c,i,y x 44/12 (i) If FCi,j,y is measured in a volume unit: COEF i,y = W c,i,y x i,y x 44/12 (ii) Where, COEFi,y Is the CO2 emission coefficient of fuel type i (tCO2/mass or volume unit); W c,i,y i,y i Option B: The CO2 emission coefficient COEFi,y is calculated based on net calorific value and CO2 emission factor of fuel type i ,as follows: COEFi,y = NCV i,y EFCO2,i,y (6) Where: COEFi,y NCVi,y EF CO2,i,y i Is the CO2 emission of fuel type i in year y (tCO2/mass or volume unit). Is the weighting average net calorific value of the fuel type i in year y (GJ/mass or volume unit). Is the weighted average CO2 emission factor of type i in year y (tCO2/GJ). Are the fuel types combusted in process j during the year y. Is the weighted average mass fraction of carbon in fuel type i in year y (tC/mass unit of the fuel); Is the weighted average density of fuel type i in year y (mass unit/volume unit of the fuel) Are the fuel types combusted in process j during the year y.

The Option B has been adopted in the project case to calculate the project emissions.
Project emission due to electricity consumption:

The project emission from the consumption of electricity can be calculated from the methodological tool Tool to calculate baseline, project and/or leakage emission from electricity consumption, Version 01 , EB 39, Annex 79 are as follows: In the generic approach, project emissions from consumption of electricity is calculated based on the quantity of electricity consumed, an emission factor for electricity generation and a factor to account for transmission losses, as follows: PE EC,y = EC PJ,j,y X EF EL,j,y X (1+ TDL j,y) (7)

http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-05-v1.pdf

UNFCCC/CCNUCC

CDM Executive Board

Page 28

PEEC,y ECBL,k,y EFEL,j,y TDLj,y j

= = = = =

Project emissions from electricity consumption in year y (tCO2/yr) Quantity of electricity that would be consumed by the baseline electricity consumption source k in year y (MWh/yr) Emission factor for electricity generation for source j in year y (tCO2/MWh) Average technical transmission and distribution losses for providing electricity to source j in year y Sources of electricity consumption in the project

As per the tool, the following three scenarios apply to the sources of electricity consumption: Scenario A: Electricity consumption from grid. Scenario B: Electricity consumption from (an) off-grid fossil fuel fired captive power plants(s). Scenario C: Electricity consumption from the grid and (a) fossil fuel fired captive power plants. Scenario C: Electricity consumption from the grid and (a) fossil fuel fired captive power plant(s) Under this scenario, the consumption of electricity in the project, the baseline or as a source of leakage may result in different emission levels, depending on the situation of the project activity. The following three cases can be differentiated: Case C.I: Grid electricity. The implementation of the project activity only affects the quantity of electricity that is supplied from the grid and not the operation of the captive power plant. This applies, for example, If at all times during the monitored period the total electricity demand at the site of the captive power plant(s) is, both with the project activity and in the absence of the project activity, larger than the electricity generation capacity of the captive power plant(s); or If the captive power plant is operated continuously (apart from maintenance) and feeds any excess electricity into the grid, because the revenues for feeding electricity into the grid are above the plant operation costs; or If the captive power plant is centrally dispatched and the dispatch of the captive power plant is thus outside the control of the project participants.

Case C.II: Electricity from captive power plant(s). The implementation of the project activity is clearly demonstrated to only affect the quantity of electricity that is generated in the captive power plant(s) and does not affect the quantity of electricity supplied from the grid. This applies, for example, in the following situation: A fixed quantity of electricity is purchased from the grid due to physical transmission constraints, such as a limited capacity of the transformer that provides electricity to the relevant source. In this situation, case C.II would apply if the total electricity demand at the site of the captive power plant(s) is at all times during the monitored period, both with the project activity and in the absence of the project activity, larger than the quantity of the electricity that can physically be supplied by the grid. Case C.III: Electricity from both the grid and captive power plant(s). The implementation of the project activity may affect both the quantity of electricity that is generated in the captive power plant(s) and the quantity of electricity supplied from the grid. This applies, for example: If the captive power plant(s) is/are not operating continuously; or If grid electricity is purchased during a part of the monitored period; or If electricity from the captive power plant is fed into the grid during a part of the monitored period.

UNFCCC/CCNUCC

CDM Executive Board

Page 29

The project plant would consume the electricity from grid and Diesel Generator Set in absence of grid connectivity i.e. the captive power plant(s) is/are not operating continuously, thus the applicable criteria is Scenario C. Where case C.III has been identified, as a conservative simple approach, the emission factor for electricity generation should be the more conservative value between the emission factor determined as per guidance for scenario A and B respectively. Scenario A: Electricity consumption from the grid: In this case, project participants may choose among the following options: Option A1: Calculate the combined margin emission factor of the applied electricity system, using the procedures in the latest approval version of the Tool to calculate the emission factor for an electricity system (EF EL,j/k/l,y = EF grid,CM,y ). Option A2: Use the following conservative default values: A value of 1.3 tCO2 /MWh if (a) Scenario A applied only to project and/or leakage electricity consumption sources but not to baseline electricity consumption sources ;or (b) Scenario A applied to: both baseline and project (and /or leakage) electricity consumption sources; and the electricity consumption of the project and leakage sources is greater than the electricity consumption of the baseline sources. A value of 0.4 tCO2/MWh for electricity grids where hydro power plants constitute less than 50% of total grid generation in 1) average of the five most recent years ,or 2) based on long-term averages for hydroelectricity production, and a value of 0.25 tCO2/MWh for other electricity grids. These values can be used if (a) Scenario A applied only to baseline electricity consumption sources but not to project or leakage electricity consumption sources; or (b) Scenario A applied to: both baseline and project (and/or leakage) electricity consumption sources; and the electricity consumption of the baseline sources is greater than the electricity consumption of the project and leakage sources.
The project emissions from electricity consumption can be calculated based on the quantity of electricity consumed from grid by the use of Option A1 of the Scenario A. To calculate the combined margin emission factor of the applicability system the PP have used the procedures in the latest approved version of the Tool to calculate the emission factor for an electricity system Ver. 02.2.1, EB 19, Annex 19. The following steps are applied for calculating the combined margin emission factor: STEP 1: Identify the relevant electricity systems; STEP 2: Choose whether to include off-grid power plants in the project electricity system (optional); STEP 3: Select a method to determine the operating margin (OM); STEP 4: Calculate the operating margin emission factor according to the selected method; STEP 5: Calculate the build margin (BM) emission factor; STEP 6: Calculate the combined margin (CM) emission factor. Step 1: Identify the relevant electricity systems For determining the electricity emission factors, identify the relevant project electricity system Similarly, identify any connected electricity systems. If a connected electricity system is located partially or totally in Annex-I countries, then the emission factor of that connected electricity system should be considered zero. If the DNA of the host country has published a delineation of the project electricity system and connected electricity systems, these delineations should be used. If this information is not available, project participants should define the project electricity system and any connected electricity system, and justify and document their assumptions in the CDM-PDD.

UNFCCC/CCNUCC

CDM Executive Board

Page 30

Since the Project Participant (PP) has proposed to established their project activity of the manufacturing facility of the AAC block/panel manufacturing unit at Howrah, West Bengal, the PP is will draw the electricity from the eastern regional grid system which is a part of the NEWNE grid. Therefore NEWNE grid is the regional grid system for the relevant electricity system. Step 2: Choose whether to include off-grid power plants in the project electricity system (optional) Only grid power plants are included in the calculation. Step 3: Select a method to determine operating margin (OM) As per the tool, the calculation of the operating margin emission factor (EFgrid, OM,y) can be calculated by any of the following: (a) Simple OM, or (b) Simple adjusted OM, or (c) Dispatch data analysis OM, or (d) Average OM Simple OM method (Option a) has been adopted. Step 4. Calculate the operating margin (OM) emission factor according to the selected method. The Central Electricity Authority (CEA) of Government of India (GOI) has calculated the CO2 Operating Margin emission factor of NEWNE Grid. The following table gives the average of the CO2 Operating Margin emission for the last three financial year of 2008-09, 2009-10 & 2010-11: Grid Year 2008-09 2009-10 2010-11 OM Values 1.02 0.99 0.98

Three year average 0.99

NEWNE

Step 5. Calculate the build margin (BM) emission factor Central Electricity Authority (CEA) of Government of India has calculated the CO 2 Build Margin emission factor of NEWNE Grid for the year 2010-11. The following table gives the CO2Build Margin emission factor of NEWNE Grid as provided by CEA in CO2 Baseline Database for the Indian Power Sector / Version 7.0 dated January 2012. Grid NEWNE Year 2010-11 BM 0.86

Step 6. Calculate the combined margin (CM) emission factor As per the Tool to calculate the emission factor for an electricity system Ver. 02.2.1, Annex 19 EB 63: The combined margin emissions factor is calculated as follows:

EFgrid,CM , y EFgrid,OM , y wOM EFgrid,BM , y wBM

(8)

Where: EFgrid,BM,y EFgrid,OM,y wOM wBM

Build margin CO2 emission factor for the year y (tCO2/MWh) Operating margin CO2 emission factor for the year y (tCO2/MWh) Weighting of operating margin emission factors (%) Weighting of build margin emission factors (%)

UNFCCC/CCNUCC

CDM Executive Board

Page 31

The following default values should be used for WOM and WBM Wind and solar power generation project activities: WOM = 0.75 and WBM = 0.25 (owing to their intermittent and non-dispatch able nature) for the first crediting period and for subsequent Crediting periods; All other projects: WOM = 0.5 and WBM = 0.5 for the first crediting period, and WOM = 0.25 and WBM= 0.75 for the second and third crediting period, unless otherwise specified in the approved methodology which refers to this tool. Alternative weights can be proposed, as long as W OM + WBM = 1, for consideration by the Executive Board, taking into account the guidance as described below. The values for WOM+ WBM applied by project participants should be fixed for a crediting period and may be revised at the renewal of the crediting period. As stated above, the tool specifies that for other project activities: wOM = 0.5 and wBM =0.5 for the first crediting period. The Central Electricity Authority (CEA), under the Ministry of Power, Government of India, has estimated the operating margin of the NEWNE grid to be 0.99 (the average of last three years) and the build margin to be 0.86. These values are taken from version 7.0, the most recently available data published by the Central Electricity Authority in January 2012. Therefore the combined margin emission factor of the NEWNE Grid (Excluding Import) has been be calculated as, Description Operating Margin Build Margin Combined Margin tCO2/MWh 0.99 0.86 (0.99x0.5) + (0.86x0.5) = 0.9250

Hence, the combined margin emission factor for the Southern Grid is 0.9250 tCO2e/ MWh.

Scenario B: Electricity consumption from an off-grid captive power plant In this case, project participants may choose among the following options: Option B1: The emission factor for electricity generation is determined based on the CO2 emissions from fuel combustion and the electricity generation in the captive power plant(s) installed at the site of the electricity consumption source. The emission factor of the captive power plant(s) is calculated as follows: EF EL,j/k/l,y = (FC n,i,t X NCV i,t X EF CO2,i,t)/ EGn,t EFEL,j/k/l,y FCn,i,t NCVi,t EFCO2,i,t EGn,t i j k (9)

= Emission factor for electricity generation for source j, k or l in year y (tCO2/MWh) = Quantity of fossil fuel type i fired in the captive power plant n in the time period t (mass or volume unit) = Average net calorific value of fossil fuel type i used in the period t (GJ / mass or volume unit) = Average CO2 emission factor of fossil fuel type i used in the period t (tCO2 / GJ) = Quantity of electricity generated in captive power plant n in the time period t (MWh) = are the fossil fuel types fired in captive power plant n in the time period t = Sources of electricity consumption in the project = Sources of electricity consumption in the baseline

UNFCCC/CCNUCC

CDM Executive Board

Page 32

l n t

= Leakage sources of electricity consumption = Fossil fuel fired captive power plants installed at the site of the electricity consumption source j, k or l = Time period for which the emission factor for electricity generation is determined (see further guidance below)

Option B2: Use the following conservative default values: A value of 1.3 tCO2/MWh if (a) The electricity consumption source is a project or leakage electricity consumption source; or (b) The electricity consumption source is a baseline electricity consumption source; and the electricity consumption of all baseline electricity consumptions sources at the site of the captive power plant(s) is less than the electricity consumption of all project electricity consumption sources at the site of the captive power plant(s). A value of 0.4 tCO2/MWh if (a) The electricity consumption source is a baseline electricity consumption source; or (b) The electricity consumption source is a project electricity consumption source and the electricity consumption of all baseline electricity consumptions sources at the site of the captive power plant(s) is greater than the electricity consumption of all project electricity consumption sources at the site of the captive power plant(s). Option B1 was adopted to determine the Emission Factor of electricity under Scenario B; The emission factor for NEWNE Grid is 0.9250 tCO2/MWh where as the calculated value of emission factor for the DG set (750 kVA) is 0.5808 tCO2/MWh. So emission factor for electricity generation determined as per guidance for scenario A: Electricity consumption from the grid was found to higher and therefore more conservative than emission factor for electricity generation determined as per guidance for scenario B: Electricity consumption from an off-grid captive power plant. Leakage Emissions: As per the methodology In the case of project activities involving change in production process or a change in type and quantity or raw and /or additive materials as compared with the baseline, the incremental emissions associated with the production/ consumption and transport of those raw materials consumed as compared to baseline, shall be calculated as leakage. As per the methodology, the project activity entails two types of leakage due to change in production process which leads to change in type and quantity of raw and/or additive materials as compared to baseline - Emissions associated with consumption of raw and/or additive materials - Emissions associated with transportation of raw and/or additive materials The applicable equation is as below for calculating the leakage emission: LEy = LErm,prod,y+ LETR,m (10) Where, LEy Leakage emissions associated with consumption and transport of raw and/or additive materials in the year y. LErm,prod,y Leakage emissions associated with consumption of raw and/or additive materials in the year y

UNFCCC/CCNUCC

CDM Executive Board

Page 33

LETR,m

Leakage emission associated with transportation of raw and/or additive materials in the year y

Leakage emission associated with consumption of raw and/or additive materials: LErm,prod,y = Q cement,y EF cement + Q lime,y EF lime where, LErm,prod,y Qcement,y EF cement Qlime,y EF lime

(11)

Leakage emissions associated with consumption of raw and/or additive materials in the year y Quantity of cement consumed for the production of AAC blocks/panels in the year y. CO2 emission factor of the cement production. Quantity of lime consumed for the production of AAC blocks/panels in the year y. CO2 emission factor of the lime production.

Leakage emission due to raw material transportation:

As per the methodological tool Project and leakage emissions from road transportation of freight Version 01 the emissions due to the raw material transportation can be calculated as below: LE TR,m= Dfm xFRf,mxEF CO2,f x10-6 (12) Where,
LE TR,m Dfm FRf,m EF CO2,f Leakage emission from road transportation of freight monitoring period m (tC02). Return trip road distance between the origin and destination of freight transportation activity f in monitoring period m (km). Total mass of freight transported in freight transportation activity f in monitoring period m (t). Default CO2 emission factor for freight transportation activity f (g CO2 / t km). Freight transportation activities conducted in the project activity in monitoring period m

UNFCCC/CCNUCC

CDM Executive Board

Page 34

B.6.2. Data and parameters fixed ex ante Data / Parameter Unit Description Source of data
EFGrid,CM,y tCO2/MWh Combined margin emission factor for the grid in year y The CO2 Baseline Database for the Indian Power Sector Ministry of Power: Central Electricity Authority (CEA) Version 7.0. This database is prepared as per Tool to calculate the emission factor for an electricity system Version 02.2.1 http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-07v2.2.1.pdf. The value is calculated as the weighted average of the Simple Operating Margin emission factor (EF ) and the Build Margin emission
M, y

factor (EF Value(s) applied Choice of data or Measurement methods and procedures Purpose of data Additional comment Data / Parameter Unit Description Source of data

BM, y

) and giving 50% weight age to each by default

0.9250 As per the Tool to calculate the emission factor for an electricity system Ver. 02.2.1.

For calculating the project emission. The emission factor for electricity is fixed ex-ante. NCV i,y GJ /Tonne Average net calorific value of fossil fuel type (fuel Oil) used in the period t IPCC default values at the upper or lower limit- whatever is more conservative of the uncertainty at a 95% confidence interval as provided in Table 1.2 of Chapter 1 of Vol.2 (Energy) of the 2006 IPCC Guidelines on National GHG Inventories. Link:http://www.ipccnggip.iges.or.jp/public/2006gl/pdf/2_Volume2/V2_1_Ch1_Introduction.pdf 40.4 Default value of IPCC Guidelines has been considered.

Value(s) applied Choice of data or Measurement methods and procedures Purpose of data Additional comment

For calculating the project emission Any future revision of the IPCC Guidelines should be taken into account.

UNFCCC/CCNUCC

CDM Executive Board

Page 35

Data / Parameter Unit Description Source of data Value(s) applied Choice of data or Measurement methods and procedures Purpose of data Additional comment Data / Parameter Unit Description Source of data

i,y Kg/Litre Weighted average density of fuel type ( fuel oil) in year y Table 1.1 of IPCC 2006 Guideline of National GHG Inventories. http://www.ipcc.ch/meetings/session25/doc4a4b/vol2.pdf 0.91 The density of the fuel should be obtained for each fuel delivery, from which weighted average annual values should be calculated.

For calculating the project emission

Value(s) applied Choice of data or Measurement methods and procedures Purpose of data Additional comment

EFCO2 tCO2/GJ Weighted average CO2 emission factor of fuel type (fuel oil) in year y IPCC default values at the upper limit of the uncertainty at 95%confidence interval as provided in table 1.4 of the Chapter 1 of Vol.2 (energy) of 2006 IPCC Guidelines on National GHG Inventories. http://www.ipccnggip.iges.or.jp/public/2006gl/pdf/2_Volume2/V2_1_Ch1_Introduction.pdf 0.0774 Default value of IPCC Guidelines has been considered.

For calculating the project emission Any future revision of the IPCC Guideline should be taken into account.

UNFCCC/CCNUCC

CDM Executive Board

Page 36

Data / Parameter Unit Description

Source of data

EFBL tCO2/m3 The parameter is Annual production specific emission factor for manufacturing the product derived in the baseline scenario to project activity product. The value has been computed in line with the methodology requirements based of the following data sources - The survey report of "Comprehensive Industry Document with Emission Standards, Guidelines and Stack Height regulation for Vertical Shaft Brick Kilns(VSBK) vis--vis Pollution Control Measures" by Central Pollution Control Board minister of Environment & Forest at May 2007 - A CDCF project subjected as "Vertical shaft brick kiln Cluster project " on March 15,2005 - technical brief of Sustainable small scale brick production: A Question of energy - www.brick-india.com/images/finace-minister.jpg - Development of Standard and Guidelines - Indian Standard for Specification for Heavy duty Burnt clay Building Bricks (Third Version) 0.3847 The baseline annual production specific emission factor considers only the energy component associated to coal consumption. Since it is difficult to determine precisely a particular technology that would be used in the absence of project activity, the annual production specific emission factor is determined as the weighted average energy use of these technologies to best represent the baseline coal consumption in the production of burnt clay bricks as suggested by methodology. For calculating the baseline emission This value is fixed ex-ante. EFCEMENT tCO2/ton of cement Carbon emission factor of Cement INCCA Indian network for Climate Change Assessment; India Greenhouse Gas Emission 2007. Link: http://moef.nic.in/downloads/public-information/Report_INCCA.pdf 0.56229 tCO2 per ton of cement as conservative approach. Default value of IPCC has been considered.

Value(s) applied Choice of data or Measurement methods and procedures

Purpose of data Additional comment Data / Parameter Unit Description Source of data

Value(s) applied Choice of data or Measurement methods and procedures Purpose of data Additional comment

For calculating the leakage emission Any future revision of the IPCC Guideline should be taken into account.

UNFCCC/CCNUCC

CDM Executive Board

Page 37

Data / Parameter Unit Description Source of data

Value(s) applied Choice of data or Measurement methods and procedures Purpose of data Additional comment Data / Parameter Unit Description Source of data Value(s) applied Choice of data or Measurement methods and procedures Purpose of data Additional comment Data / Parameter Unit Description Source of data Value(s) applied Choice of data or Measurement methods and procedures Purpose of data Additional comment

EFLime tCO2/ ton of CaO. Carbon emission factor of Lime Chapter 2 of "Mineral Industry Emissions" of 2006 IPCC Guidelines for National Greenhouse Gas Inventories. Link:http://www.ipccnggip.iges.or.jp/public/2006gl/pdf/3_Volume3/V3_2_Ch2_Mineral_Industry.pdf 0.439 t CO2/ ton of CaO. In the general practice lime from mineral source is available with a purity of 30-45% in terms of CaO that results in lesser emissions. However the project activity requires 85% purity in terms of CaO. The emission factor is computed using the stoichio-metric ratio of 0.43 tones CO2/ ton of lime.

For calculating the leakage emission The emission factor for lime is fixed ex-ante. However should there be any revision in IPCC values in future the same would be taken for Verification. Df,m,flyash Km Return trip road distance between the origin and destination of fly ash transportation activity f in monitoring period m Records of vehicle operator or records by project participants 40 Determined once for each freight transportation activity f for a reference trip using the vehicle odometer or any other appropriate sources (e.g. on-line sources)

For calculating the leakage emission This value is fixed and ex ante for the specified production procedure.

Df,m,cement Km Return trip road distance between the origin and destination of cement transportation activity f in monitoring period m Records of vehicle operator or records by project participants 130 Determined once for each freight transportation activity f for a reference trip using the vehicle odometer or any other appropriate sources (e.g. on-line sources)

For calculating the leakage emission This value is fixed and ex ante for the specified production procedure.

UNFCCC/CCNUCC

CDM Executive Board

Page 38

Data / Parameter Unit Description Source of data Value(s) applied Choice of data or Measurement methods and procedures Purpose of data Additional comment

Df,m,lime Km Return trip road distance between the origin and destination of lime transportation activity f in monitoring period m Records of vehicle operator or records by project participants 2800 Determined once for each freight transportation activity f for a reference trip using the vehicle odometer or any other appropriate sources (e.g. on-line sources)

For calculating the leakage emission This value is fixed and ex ante for the specified production procedure.

Data / Parameter Unit Description Source of data Value(s) applied Choice of data or Measurement methods and procedures Purpose of data Additional comment Data / Parameter Unit Description Source of data Value(s) applied Choice of data or Measurement methods and procedures Purpose of data Additional comment

Df,m,gypsum Km Return trip road distance between the origin and destination of Gypsum transportation activity f in monitoring period m Records of vehicle operator or records by project participants 500 Determined once for each freight transportation activity f for a reference trip using the vehicle odometer or any other appropriate sources (e.g. on-line sources)

For calculating the leakage emission This value is fixed and ex ante for the specified production procedure.

Df,m,aluminium Km Return trip road distance between the origin and destination of Aluminium Powder transportation activity f in monitoring period m Records of vehicle operator or records by project participants 4300 Determined once for each freight transportation activity f for a reference trip using the vehicle odometer or any other appropriate sources (e.g. on-line sources)

For calculating the leakage emission This value is fixed and ex ante for the specified production procedure.

UNFCCC/CCNUCC

CDM Executive Board

Page 39

Data / Parameter Unit Description Source of data Value(s) applied

EFCO2,f gCO2/t km Default carbon di-oxide emission factor for freight transport activity f. Based on the methodological tool Project and leakage emissions from road transportation of freight.(Version 01.0.0)

Vehicle Class Light vehicles Heavy vehicles

Emission factor (gCO2/t Km) 245 129

Choice of data or Measurement methods and procedures Purpose of data Additional comment

For raw material (Fly ash, Gypsum, Cement, Lime, Aluminium Powder) transportation generally heavy vehicles are being used .So PP has considered the values for emission factor of Heavy vehicles. Based on the default values specified and calculated as per the methodological tool Project and leakage emissions from road transportation of freight.(Version 01.0.0). For calculating the leakage emission. For heavy vehicles, the emission factor has been derived based on custom design transient speed-time-gradient drive cycle (adapted from the international FIGE cycle), vehicle dimensional data, mathematical analysis of loading scenarios, and dynamic modelling based on engine power profiles, which, in turn, are a function of gross vehicle mass (GVM), load factor, speed/acceleration profiles and road gradient.

B.6.3. Ex-ante calculation of emission reductions >> Baseline Emission: As per methodology, the baseline emission due to fossil fuel consumption for the production process (in the absence of the project activity) can be estimated as below: The following parameters are to be applied for the calculation of the baseline emission of the project activity: Description The annual production specific emission factor for year y Plant capacity Unit tCO2/Cum Value 0.3847 References calculated

Cum/day

1st year =450 2nd onwards = 900

Operating days per Annum Capacity Utilization Gross Annual production of the facility

Days/annum % Cum

Rejection of the production facility

300 90% 1st year = 121500 2nd year = 249750 3rd year onwards = 256500 1

HESS contract agreement between UAL KON_CRETE and M/S HESS AAC SYSTEMS B.V Dated at 28th July 2011 Feasibility sheet Feasibility sheet Calculated

UNFCCC/CCNUCC

CDM Executive Board

Page 40

The annual net production of the facility in year y

Cum

1st year = 120285 2nd year = 247253 3rd Year onwards = 253935

Calculated

The total Estimated Baseline carbon emission (BEy) from the total fuel consumption in the total crediting period as follow: Year Annual Net brick Annual production specific Annual baseline production (cum/yr) emission factor (tCO2/yr) emission from fossil fuels (tCO2e/yr) 120285 0.3847 46270 247253 0.3847 95111 253935 0.3847 97681 253935 0.3847 97681 253935 0.3847 97681 253935 0.3847 97681 253935 0.3847 97681 253935 0.3847 97681 253935 0.3847 97681 253935 0.3847 97681 Total baseline emission (tCO2e) 922830

2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023

Total baseline emission of CO2 from the total fossil fuel consumption in 10 yrs is 922830 tCO2e. Project Emission: The following parameters are to be applied for the calculation of the baseline emission of the project activity: Description Emission factor of the electricity generation Unit tCO2/MWh Value 0.9250 References Calculated combined margin emission factor, using the methodological tool " Tool to calculate the emission factor for an electricity system" version 01 & CEA CO2 database version 7 dated at January 2012 Link: http://cea.nic.in/reports/planning/cdm_co2/user_guide_ver7.pdf Section 2 of Annex II document of HESS AAC System B.V "Standard raw material specification and consumption values " Section 2 of Annex II document of HESS AAC System B.V "Standard raw material specification and consumption values " Table 1.1 of IPCC 2006 Guidelines of National Greenhouse Gas Inventories. Link: http://www.ipcc.ch/meetings/session25/doc4a4b/vol2.pdf Table 1.2 of 2006 IPCC Guidelines for National Greenhouse Gas Inventories,vol 2;"Default Net Calorific Values (NCVs) And Lower And Upper Limit of the 95% Confidence Intervals" Table 1.4 of 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Vol 2;"Default Net Calorific Values (NCVs) And

Quantity of Electricity consumed Quantity of fuel(Fuel Oil) consumed Density of furnace oil

kWh/Cum

11

Litre/cum

Kg/litre

910

Calorific value of the fuel oil Carbon emission factor

TJ/Gg

40.0

Kg/Tj

77400

UNFCCC/CCNUCC

CDM Executive Board

Page 41

of fuel(fuel oil)

Quantity of Electricity consumed

MWh/yr

Quantity of fuel (fuel oil) consumed

Tonne /yr

1st year = 1336.5 2nd year = 2747.25 3rd Year onwards= 2821.5 1st year = 884.5 2nd year = 1818.2 3rd Year onwards= 1867.3

Lower And Upper Limit of the 95% Confidence. Link: http://www.ipccnggip.iges.or.jp/public/2006gl/pdf/2_Volume2/V2_1_Ch1_Introduc tion.pdf Calculated

Calculated

The total estimated project emission (PEy) from the total project activity of the manufacturing of AAC blocks/panel for the crediting period as follow: Quantity of electricity consumed (MWh/yr) 1336.5 2747.25 2821.5 2821.5 2821.5 2821.5 2821.5 2821.5 2821.5 2821.5 Emission from Quantity of fuel Project Project electricity consumption Emission emission consumption (tonnes/yr) from fuel from fossil (tCO2e/yr) consumption fuel (tCO2e/yr) consumption (tCO2e/yr) 1236.26 884.5 2766 4002 2541.2 1818.2 5685 8227 2609.8 1867.3 5839 8449 2609.8 1867.3 5839 8449 2609.8 1867.3 5839 8449 2609.8 1867.3 5839 8449 2609.8 1867.3 5839 8449 2609.8 1867.3 5839 8449 2609.8 1867.3 5839 8449 2609.8 1867.3 5839 8449 Total Project emission (tCO2e) 79820

Year

2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023

Total Project Emission from the fossil fuel (Electricity from Grid & Fuel Oil) consumption in ten years is 79820 tCO2e. Leakage emission: Formula applied: LEy = LErm,prod,y +LErm,prod,y Where, LEy LErm,prod,y LErm,trans,y Leakage emission from raw material production and transportation in the year y. Leakage emission from raw material production in the year y. Leakage emission from the raw material transportation in the year y.

UNFCCC/CCNUCC

CDM Executive Board

Page 42

The following parameters are to be applied for the calculation of the baseline emission of the project activity:

Description Quantity of cement consumed for production of AAC blocks

Unit Tonne

Quantity of lime consumed for production of AAC blocks

Tonne

Carbon emission factor (EF) of cement production

tCO2/ton

Value 1st year= 11543 2nd year = 23726 3rd Year onwards=24368 1st year = 8627 2nd year = 17732 3rd Year onwards=18212 0.56229

References feasibility sheet

Feasibility sheet

Carbon emission factor(EF) of Lime production

tCO2/ton

0.439

INCCA Indian network for Climate Change Assessment; India Greenhouse Gas Emission 2007. Chapter 2 of "Mineral Industry Emissions" of 2006 IPCC Guidelines for National Greenhouse Gas Inventories.

Return trip road distance between the origin and destination for fly ash transportation in fright transportation activity Return trip road distance between the origin and destination for Cement transportation in fright transportation activity Return trip road distance between the origin and destination for Lime transportation in fright transportation activity Return trip road distance between the origin and destination for Gypsum transportation in fright transportation activity Return trip road distance between the origin and destination for Aluminium Powder transportation in fright transportation activity Default CO2 emission factor for freight transportation activity

Km

24

Km

130

Km

2800

Delivery challans of the raw materials provided by the Truck drivers

Km

500

Km

4300

gCO2/tKm

129

The methodological Tool "Project and leakage emissions from road transportation of freight" version 01.

The total estimated Leakage emission (LEy) for raw material transportation and the consumption of the raw material (cement & lime) for the project activity of the manufacturing of AAC blocks/panel for the crediting period as follow:

UNFCCC/CCNUCC

CDM Executive Board

Page 43

Year

Quantity of cement consumed for production (tonne/yr) 11543 23726 24368 24368 24368 24368 24368 24368 24368 24368

2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023

Quantity of Leakage emission Lime due to raw consumed material for consumed production (tCO2e/yr) (tonne/yr) 8627 10283 17732 21138 18212 21709 18212 21709 18212 21709 18212 21709 18212 21709 18212 21709 18212 21709 18212 21709 Total Leakage emission(tCO2e)

Emission due to Total leakage raw material emission transportation (tCO2e) (tCO2e/yr) 3605 7410 7611 7611 7611 7611 7611 7611 7611 7611 13888 28548 29320 29320 29320 29320 29320 29320 29320 29320 276995

Total leakage emission due to the project activity in 10 years is 276995 tCO2e.

UNFCCC/CCNUCC

CDM Executive Board

Page 44

B.6.4. Summary of ex-ante estimates of emission reductions Baseline Project emissions Year emissions (tCO2e) (tCO2e) 2013-2014 46270 4002 2014-2015 95111 8227 2015-2016 97681 8449 2016-2017 97681 8449 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 Total Total number of crediting years Annual average over the crediting period 97681 97681 97681 97681 97681 97681 922830 8449 8449 8449 8449 8449 8449 79820 10 92283.0 7982.0

Leakage (tCO2e) 13888 28548 29320 29320 29320 29320 29320 29320 29320 29320 276995

Emission reductions (tCO2e) 28380 58336 59912 59912 59912 59912 59912 59912 59912 59912 566014

27699.5

56601.4

UNFCCC/CCNUCC

CDM Executive Board

Page 45

B.7. Monitoring plan B.7.1. Data and parameters to be monitored Data / Parameter Unit Description Source of data Value(s) applied ECPJ,j,y kWh/day The electricity consumption per day Internal electricity meter reading 1st year = 4455 2nd year = 9157 3rd year onwards = 9405 Internal daily meter reading (from 6 am to 6 am) which is located at substation which is calibrated annually. Meter Specification:Type: Digital (3 ph) Accuracy: Class I Daily The Internal meter reading (daily basis) are cross checked through meter reading at S.E.B meter room (sealed by S.E.B) on monthly recording basis. For calculating the project emission The electricity consumption is monitored daily by the Electricity Meter and cross-checked by the meter provided by the Service Provider (State Electricity Department) monthly based on which the Electricity bills are provided. Data will be archived on paper and electronically. Archived data will be kept during the crediting period plus 2 years or the last issuance of CERs for this project activity, whichever occurs later. FCFuel oil Litre per day Quantity of fuel type (Fuel oil) combusted in production process during the year y Onsite measurements 1st year = 3240 2nd year = 6660 3rd Year onwards = 6840 Use weight or volume meters. Meter Specification: Type: Magnetic flow meter Accuracy: 0.3-0.5% Continuously The consistency of metered fuel consumption quantities should be crosschecked by an annual energy balance that is based on purchase invoices. For calculating the project emission Data will be archived on paper and electronically. Archived data will be kept during the crediting period plus 2 years or the last issuance of CERs for this project activity, whichever occurs later.

Measurement methods and procedures

Monitoring frequency QA/QC procedures Purpose of data Additional comment

Data / Parameter Unit Description Source of data Value(s) applied

Measurement methods and procedures

Monitoring frequency QA/QC procedures Purpose of data Additional comment

UNFCCC/CCNUCC

CDM Executive Board

Page 46

Data / Parameter Unit Description Source of data Value(s) applied Measurement methods and procedures

Monitoring frequency QA/QC procedures

Purpose of data Additional comment

Production-PPJ,y Cum bricks or blocks per day Gross production of AAC blocks/panels per day Hess Contract Agreement Dated at 28th July 2011between UALKON_CRETE and M/S HESS AAC SYSTEMS. 1st year =450 2nd year onwards = 900 Project proponent record the production of bricks/ blocks as follows: (i) Number of pouring at mixing tower per cycle which are recorded digitally. (ii) Number of pouring rejected per cycle which is recorded manually. Continuously The personnel of PP will make periodical visits to the plant to check the digital & manual record keeping and cross verified through opening & closing stock & sales on monthly basis. For calculating the baseline & project emissions Data will be archived on paper and electronically. Archived data will be kept during the crediting period plus 2 years or the last issuance of CERs for this project activity, whichever occurs later. QCement Tonnes per month Tons of cement used over one month of project activity production Purchase bill of cement 1st year = 962 2nd year = 1977 3rd Year onwards = 2031 Primary recording by raw material /pour which is recorded digitally through load cell located at mixer tower. Continuously Upon receipt of the monthly data of opening-closing stocks & purchase invoice bills, the personnel of PP will make periodical visits to the plants to cross check the diligence of record keeping. For calculating the leakage emission Data will be archived on paper and electronically. Archived data will be kept during the crediting period plus 2 years or the last issuance of CERs for this project activity, whichever occurs later.

Data / Parameter Unit Description Source of data Value(s) applied

Measurement methods and procedures Monitoring frequency QA/QC procedures

Purpose of data Additional comment

UNFCCC/CCNUCC

CDM Executive Board

Page 47

Data / Parameter Unit Description Source of data Value(s) applied

Measurement methods and procedures Monitoring frequency QA/QC procedures

Purpose of data Additional comment

QLime Tonnes/Month Tonnes of lime used over one month of project activity production Purchase bill of lime 1st year= 719 2nd year = 1478 3rd Year onwards = 1518 Primary recording by raw material /pour which is recorded digitally through load cell located at mixer tower. Continuously Upon receipt of the monthly data of opening-closing stocks & purchase invoice bills, the personnel of PE will make periodical visits to the plants to cross check the diligence of record keeping. For calculating the leakage emission The leakage is taken into account only when lime from mineral source is procured. In the case of by product lime, the data is recorded, but no leakages are accounted for as the same would not have any impact. Data will be archived on paper and electronically. Archived data will be kept during the crediting period plus 2 years or the last issuance of CERs for this project activity, whichever occurs later. QGypsum Tonnes /month Tons of gypsum used over one month of project activity production. Purchase bill of Gypsum 1st year = 121.5 2nd year = 249.75 3rd Year onwards = 256.5 Primary recording by raw material /pour which is recorded digitally through load cell located at mixer tower. Continuous Upon receipt of the monthly data of opening-closing stocks & purchase invoice bills, the personnel of PE will make periodical visits to the plants to cross check the diligence of record keeping. For calculating the leakage emissions. Data will be archived on paper and electronically. Archived data will be kept during the crediting period plus 2 years or the last issuance of CERs for this project activity, whichever occurs later.

Data / Parameter Unit Description Source of data Value(s) applied

Measurement methods and procedures Monitoring frequency QA/QC procedures

Purpose of data Additional comment

UNFCCC/CCNUCC

CDM Executive Board

Page 48

Data / Parameter Unit Description Source of data Value(s) applied

Measurement methods and procedures Monitoring frequency QA/QC procedures

Purpose of data Additional comment

QAluminium Powder Tonnes /Month Tons of Aluminium used over one month of project activity production Purchase Bill of Aluminium 1st year = 4.6 2nd year = 9.5 3rd onwards = 9.8 Primary recording by raw material /pour which is recorded digitally through load cell located at mixer tower. Continuous Upon receipt of the monthly data of opening-closing stocks & purchase invoice bills, the personnel of PE will make periodical visits to the plants to cross check the diligence of record keeping. For calculating the leakage emissions Data will be archived on paper and electronically. Archived data will be kept during the crediting period plus 2 years or the last issuance of CERs for this project activity, whichever occurs later. QFly Ash Tonnes /Month Tons of fly ash used over one month of project activity production Purchase Bill of Fly ash 1st year = 2754 2nd year = 5661 3rd Year onwards = 5814 Primary recording by raw material /pour which is recorded digitally through load cell located at mixer tower. Continuous Upon receipt of the monthly data of opening-closing stocks & purchase invoice bills, the personnel of PE will make periodical visits to the plants to cross check the diligence of record keeping. For calculating the leakage emissions. Data will be archived on paper and electronically. Archived data will be kept during the crediting period plus 2 years or the last issuance of CERs for this project activity, whichever occurs later.

Data / Parameter Unit Description Source of data Value(s) applied

Measurement methods and procedures Monitoring frequency QA/QC procedures

Purpose of data Additional comment

UNFCCC/CCNUCC

CDM Executive Board

Page 49

Data / Parameter Unit Description

Source of data Value(s) applied Measurement methods and procedures Monitoring frequency QA/QC procedures Purpose of data Additional comment

Performance of AAC blocks/panels in terms of compressive strength once in six months. MPa The project activity output - AAC blocks/panels are tested in a compressive strength testing machines (CTM) in any of the laboratories of polytechnics, engineering colleges, building centres, national laboratories etc, and the test certificate are provided during verification. The test certificates are being provided by the testing laboratories. 3.5 N/mm2 The test results are recorded bi-annually with the standard. Bi-annual QA ensured by third party reports Methodology Justification Data will be archived on paper and electronically. Archived data will be kept during the crediting period plus 2 years or the last issuance of CERs for this project activity, whichever occurs later. FRfly ash,m Tonnes Total mass of fly ash transported in freight transportation activity in monitoring period m Records by project participants or records by truck operators 1st year = 33048 2nd year = 67932 3rd Year onwards= 69768 Daily recording by the project proponent through the challans provided by the truck operators. Continuously Cross checked through the purchase invoices and opening closing stocks annually. For calculating the leakage emission Data will be archived on paper and electronically. Archived data will be kept during the crediting period plus 2 years or the last issuance of CERs for this project activity, whichever occurs later.

Data / Parameter Unit Description Source of data Value(s) applied

Measurement methods and procedures Monitoring frequency QA/QC procedures Purpose of data Additional comment

UNFCCC/CCNUCC

CDM Executive Board

Page 50

Data / Parameter Unit Description Source of data Value(s) applied

Measurement methods and procedures Monitoring frequency QA/QC procedures Purpose of data Additional comment

FR cement,m Tonnes Total mass of Cement transported in freight transportation activity cement in monitoring period m Records by project participants or records by truck operators 1st Year= 11543 2nd year= 23726 3rd Year onwards = 24368 Daily recording by the project proponent through the challans provided by the truck operators. Continuously Cross checked through the purchase invoices and opening closing stocks annually. For calculating the leakage emission Data will be archived on paper and electronically. Archived data will be kept during the crediting period plus 2 years or the last issuance of CERs for this project activity, whichever occurs later. FR Lime ,m Tonnes Total mass of Lime transported in freight transportation activity in monitoring period m Records by project participants or records by truck operators 1st year = 8627 2nd year= 17732 3rd year onwards= 18212 Daily recording by the project proponent through the challans provided by the truck operators. Continuously Cross checked through the purchase invoices and opening closing stocks annually. For calculating the leakage emission Data will be archived on paper and electronically. Archived data will be kept during the crediting period plus 2 years or the last issuance of CERs for this project activity, whichever occurs later.

Data / Parameter Unit Description Source of data Value(s) applied

Measurement methods and procedures Monitoring frequency QA/QC procedures Purpose of data Additional comment

UNFCCC/CCNUCC

CDM Executive Board

Page 51

Data / Parameter Unit Description Source of data Value(s) applied

Measurement methods and procedures Monitoring frequency QA/QC procedures Purpose of data Additional comment

FRGypsum, m Tonnes Total mass of Gypsum transported in freight transportation activity in monitoring period m Records by project participants or records by truck operators 1st Year= 1458 2nd Year = 2997 3rd Year onwards = 3078 Daily recording by the project proponent through the challans provided by the truck operators. Continuously Cross checked through the purchase invoices and opening closing stocks annually. For calculating the leakage emission Data will be archived on paper and electronically. Archived data will be kept during the crediting period plus 2 years or the last issuance of CERs for this project activity, whichever occurs later. FR Alumium Powder,m Tonnes Total mass of Aluminium Powder transported in freight transportation activity in monitoring period m Records by project participants or records by truck operators 1st year = 56 2nd year= 115 3rd year onwards = 118 Daily recording by the project proponent through the challans provided by the truck operators. Continuously Cross checked through the purchase invoices and opening closing stocks annually. For calculating the leakage emission Data will be archived on paper and electronically. Archived data will be kept during the crediting period plus 2 years or the last issuance of CERs for this project activity, whichever occurs later.

Data / Parameter Unit Description Source of data Value(s) applied

Measurement methods and procedures Monitoring frequency QA/QC procedures Purpose of data Additional comment

UNFCCC/CCNUCC

CDM Executive Board

Page 52

B.7.2. Sampling plan >> Based on the monitoring requirements of methodology, as described under B.1, following records would be verified by Inspectors. Production records: Stock registers showing daily production Raw materials inwards: Inward stock registers for fly ash, cement and/ or lime. Delivery challans for the raw materials. Purchase bills of cement and lime and other raw materials. Fuel oil and Power Consumption data The consumption of fuel oil is to be recorded on daily basis. The total electricity will be calculated as the sum of electricity from the grid and electricity from the DG Set. The grid withdrawal will be recorded by meter reading (located at Substation) on daily basis and verified on monthly basis through the meter reading (located at S.E.B meter room sealed by state electricity board). This data will be provided by the state electricity authority in their monthly bills. In the case of use of Diesel Generator, the electricity generated will be recorded from the meter located on the DG Set and will be cross verified through diesel purchase bills ading and consumption as provided on the state electricity bill would be taken as record. Quality of the Product In order to ensure the service level of product is better than that of the baseline product, PP will monitor he compressive strength of the project activity output. The product that does not match necessary compressive strength requirements will be excluded from the production. B.7.3. Other elements of monitoring plan >> Tghe data monitoring will involve all the parameters mentioned in the section B.7.1. Due care will be taken for the measurement of all these parameters and maintenance of records. Proper training would be imparted to concerned personnel for accurate measurement and collection of data for each parameter.
The CDM monitoring team will composed the following staff: Position Report to: Operator Project owner Supervisor managers (technical/maintenance) Plant manager CDM monitoring project manager Project owner/External CDM consultant

The allocation of responsibility to ensure compliance with the monitoring requirement of the methodology is given here below: Sl. Task description Operator(s) No. Monitoring activity 1. Recording of monitored data Quality assurance and quality control 2 Verification of data monitored (consistency and completeness) 3 Ensuring adequate training of staff 4 Ensuring adequate Supervisor Plant Manager CDM monitoring project manager

UNFCCC/CCNUCC

CDM Executive Board

Page 53

maintenance Ensuring calibration of monitoring instruments 6 Data archiving: ensuring adequate storage of data monitored (integrity and backup) 7 Identification of nonconformance and corrective/preventive actions and monitoring plan improvement 8 Emergency procedures Calculation of GHG emission reductions and reporting 9 Processing of data and calculation of emission reductions 10 Monitoring report: management review of monitoring report (internal audit) 5

All data would be collected in paper log books and would be converted to spreadsheet form on a 6 months basis. Various templates are made to record the data to be monitored. The monitoring personnel of PE would be provided with such templates. As the steps involved in monitoring are simple, in-house training is imparted in recording the data and to translate the same into the computation of ERs. SECTION C. Duration and crediting period C.1. Duration of project activity C.1.1. Start date of project activity >> The start date of the project activity is the day at which first advance payment placed to the HESS AAC system B.V dated at 28th July 2011. C.1.2. Expected operational lifetime of project activity >> 20 years 0 months C.2. Crediting period of project activity C.2.1. Type of crediting period >> Fixed C.2.2. Start date of crediting period >> 01/06/2013 or the actual registration date of the project whichever is later. C.2.3. Length of crediting period >> 10 years 0 months g

UNFCCC/CCNUCC

CDM Executive Board

Page 54

SECTION D. Environmental impacts D.1. Analysis of environmental impacts >> As per the prevailing regulations of the Host Party i.e. India represented by the Ministry of Environment and Forests (MoEF), Govt. of India, Environment Impact Assessment Notification 2006, the project activity does not require Environment Impact Assessment to be conducted. The facility does not produce any pollution in manufacturing process but proposes to use the waste products like fly ash which create environmental pollution by increasing dust levels of atmosphere. The fossil fuel consumption by the project activity is much lower, as demonstrated earlier, compared to fired clay brick manufacturing units of equivalent capacity. Hence there is positive impact on the environment due to this small scale project activity of reducing the pollution caused by fly ash and fossil fuels. The following conditions are applicable to establish that the project activity is environment friendly: i. There shall be no nuisance due to industrial activity to surroundings. ii. The handling of fly ash i.e. transport, loading and storage shall be done in a scientific manner so as to avoid fugitive emissions and nuisance. iii. Water shall be sprinkled on stored fly ash to avoid fugitive emissions. The project activity has obtained the No Objection Certificate for Consent to Establish from the West Bengal Pollution Control Board and No Objection Certificate from the Kalyanpur Gram Panchayat, Howrah, for establishing the manufacturing unit of Autoclaves Aerated Concrete (AAC) Blocks by using fly ash as the main raw material which is the by-products of the nearby thermal power station. SECTION E. Local stakeholder consultation E.1. Solicitation of comments from local stakeholders >> The stakeholder consultation for AAC block manufacturing project was held at on 20th April 2012 from 11 am onwards. Objective To conduct open discussion where stakeholders are encouraged to raise questions, express their concern and comments about the proposed project through a participatory process. To list down the concerns of stakeholders The identified stakeholders were villagers, officers from the Municipal Corporation, farmers around the project area, and representatives of project developers. These identified stakeholders were invited through letters. Stakeholders were given project introduction and informed about its objective through a verbal presentation. The information shared included the project description, objective, environmental impacts and benefits, applicability of technology, implementation strategy, case studies where technology implemented has been successful internationally, global and local benefits, contribution towards sustainable development, and status of project implementation. The presentation was followed by a detailed open discussion with the identified stakeholders, the details of which are provided below in Section E.2. E.2. Summary of comments received >> The stakeholders consultation started with a brief presentation from representatives of UALKON_CRETE about the project activity and its benefits. The stakeholders consultations were well attended with a number of participants coming from the local residents, farmers around the project area and representatives from UAL-KON_CRETE. The consultation process started with welcome speech by UAL-KON_CRETE representative, who gave brief description about the company, about the process of AAC block/panel manufacturing technology and its positive environmental benefits. The stakeholders raised their concern on environmental and social impact of the project, its financial viability and marketability of the finished product. These concerns

UNFCCC/CCNUCC

CDM Executive Board

Page 55

were appropriately addressed by the project proponent, and following table briefs the concerns raised by stakeholders and their corresponding response.

Stake holders Concerns

Answers from Representatives

UAL-KON_CRETE

1. What are the specific employment The project will open up many job opportunities. opportunities? What are the qualifications Villagers in the neighbourhood would be recruited required? for both the civil as well as the operational requirements of the plant. Employment generation opportunity will be in the following areas: - the collection, transportation and sizing of the raw materials unskilled labour - plant operation skilled labour - Packaging & transportation skilled & Unskilled labours. 2. What are the safety issues? The proposed project activity will equipped with latest and modern equipments, so there is no chance of accidents. 3. Whether there will be any pollution for the Main fuel used for the power project is electricity process plant? mainly from grid & fuel oil whose pollution (carbon emission factor) is much lower than the coal use for clay brick manufacturing so there is a chance of lower carbon emission through the project activity. More over the plant equipment and accessories will be latest and as per pollution control board norms. So there is no chance for pollution. E.3. Report on consideration of comments received >> The project proponent will take up suggestion and inform the stakeholders regularly on the progress of project. The project proponent were commended for their action towards environment protection. Apart from the above comments and questions, no major issues were raised that could be related to the environmental or CDM aspect of the project. All comments and questions were duly taken into account by the project developer. The main concern of the community was related to the environmental, social and monetary impacts to the local community which were addressed by the project developer. The feedbacks from different stakeholders of the project activity are positive and encouraging. A summary of the same is given below: Serial No. Name of the Mode of Comments stake holders Communication 1. Arun Roy Verbal communication The proposed project is an example of energy efficient technology which will reduce the fossil fuel consumption as well as will minimize the environmental pollution. 2. Partha Manna Verbal communication The project activity proposed to use the industrial by product fly ash as their raw material in the production purpose which is very good for our environment as because this fly ash generally create soil and water pollution and destroy the environmental ecosystem.

UNFCCC/CCNUCC

CDM Executive Board

Page 56

3.

Tapas Das

Verbal communication Verbal communication

4.

Sujata Paul

5.

Manas maity

Verbal communication

6.

Narayan Maity

Verbal communication

This proposed project activity will generate the employment opportunity to the local peoples. The project activity is environment friendly and will replace the traditional clay brick manufacturing technology which is much energy incentive and create huge carbon emission through their production process. The finished product of the project activity is AAC blocks/panels which has much higher technical characteristics like thermal resistance, load sharing capacity etc. than the traditional clay bricks and can be use as appropriate materials for the construction purposes. As the plant is equipped with the energy efficient machineries so there is a no chance of accident and as well as no doubt regarding the safety issue of the operators.

SECTION F. Approval and authorization >> The letter(s) of approval from Party for carrying out the project activity is available at the time of submitting the PDD to the validating DoE and same has been provided along with the PDD.

-----

UNFCCC/CCNUCC

CDM Executive Board

Page 57

Appendix 1: Contact information of project participants Organization Street/P.O. Box Building City State/Region Postcode Country Telephone Fax E-mail Website Contact person Title Salutation Last name Middle name First name Department Mobile Direct fax Direct tel. Personal e-mail UAL INDUSTRIES LTD 16,May fair Road Kolkata West Bengal 700019 India 9133-40115102 9133-40115199

Director Ms. Saraf Noel 919830025655 033-40115102 [email protected] Appendix 2: Affirmation regarding public funding

1.

THE PROJECT ACTIVITY INVOLVES NO FUNDING FROM ANY ANNEX I PARTY. Appendix 3: Applicability of selected methodology

Referring to Section B.2 of PDD, the applicability criterion has been applicable with the proposed project activity.

UNFCCC/CCNUCC

CDM Executive Board

Page 58

Appendix 4: Further background information on ex ante calculation of emission reductions Weighted Average Emission Rate (tCO2/MWh) (excl. Imports) 2006-07 2007-08 2008-09 2009-10 0.83 0.82 0.84 0.83 0.72 0.72 0.75 0.75 0.80 0.80 0.82 0.81

NEWNE South India

2010-11 0.81 0.74 0.79

Simple Operating Margin (tCO2/MWh) (excl. Imports) (1) 2006-07 2007-08 2008-09 NEWNE 1.02 1.01 1.02 South 1.00 0.99 0.97 India 1.01 1.01 1.01 Build Margin (tCO2/MWh) (excl. Imports) 2006-07 2007-08 NEWNE 0.63 0.60 South 0.70 0.71 India 0.65 0.63

2009-10 0.99 0.94 0.98

2010-11 0.98 0.94 0.97

2008-09 0.68 0.82 0.71

2009-10 0.81 0.76 0.80

2010-11 0.86 0.73 0.83

Combined Margin (tCO2/MWh) (excl. Imports) (1) 2006-07 2007-08 2008-09 NEWNE 0.82 0.81 0.85 South 0.85 0.85 0.89 India 0.83 0.82 0.86

2009-10 0.90 0.85 0.89

2010-11 0.92 0.84 0.90

Source: BASELINE CARBON DIOXIDE EMISSION FROM POWER SECTOR, Government of India, Ministry of Power , Central Electricity Authority, Sewa Bhavan, R.K.Puram,New Delhi -66 http://cea.nic.in/reports/planning/cdm_co2/user_guide_ver7.pdf

UNFCCC/CCNUCC

CDM Executive Board

Page 59

Appendix 5: Further background information on monitoring plan TEST PROCEDURE FOR BRICKS AND BLOCKS BASED ON HYDRATION CHEMISTRY AAC blocks/panels shall be tested for their strength class as per the procedures below. Step 1: Identify the product type; ceramic product or hydraulic product. This procedure is applicable only to hydraulic product. Step 2: Identify the national standard for Test of the AAC blocks/panels (i) Block Density: The block density shall be determined in the manner described in IS: 6441(part I) -1972. (ii) Compressive Strength: The compressive strength shall be determined in accordance with IS: 6441(Part 5)-1972. (iii) Thermal Conductivity: The thermal conductivity shall be determined in accordance with IS: 3346-1980. (iv) Drying Shrinkage: The drying shrinkage shall be determined in the manner described in IS 6441(part 2) -1972. Step 3: Follow the appropriate national standard for recording the number of test: As per IS standard 24 blocks shall be taken for testing in a lot. Out of that 24 blocks,12 blocks shall be subjected to the test for compressive strength,3 blocks to the test for density,3 blocks to the thermal conductivity, and 3 blocks shall be reversed for re-test for drying shrinkage if a need arise. Step 4: Identify the National standard for the specification of the raw materials used in the production process: (i) Fly ash conforming to satisfy IS 3812-1981 with loss on ignition not more than 6 percent. (ii) Lime shall satisfy IS 712-1973. (iii) Sand conforming to satisfy IS: 383-1970. (iv) Cement complying with the IS 2185(Part 3) -1984. (v) Water used for production should be free from harmful matters to concrete or reinforcement and it should meet the Indian standard IS:456-1978. (vi) Additives or admixtures conforming to IS: 9103-1979. Step 5: Submerge the specimen in water for 24-hours before subjecting for compressive strength test. Step 6: The specimens are capped with high-grade strength mortar for even surface. Alternately, for quick tests, the specimen surfaces can be dressed with sand evenly. Step 7: Use testing equipment such as hydraulic compressive strength testing machines. Step 8: Repeat this procedure every 6 months (e.g., March and September of each year) or at a specified interval for seasonally operating units. Step 9: Test Certificate should be provided for each production unit, specifying the following: 1. Name and address of production unit 2. Date and location of testing 3. Type of product tested 4. Name and number of testing standard 5. Results of the test.

Appendix 6: Summary of post registration changes No changes will be incurred yet for the project activity.

-----

UNFCCC/CCNUCC

CDM Executive Board

Page 60

History of the document Version 04.0 Date EB 66 13 March 2012 22 December 2006 Nature of revision Revision required to ensure consistency with the Guidelines for completing the project design document form for small-scale CDM project activities (EB 66, Annex 9). The Board agreed to revise the CDM project design document for small-scale activities (CDM-SSC-PDD), taking into account CDM-PDD and CDM-NM. The Board agreed to revise the CDM SSC PDD to reflect guidance and clarifications provided by the Board since version 01 of this document. As a consequence, the guidelines for completing CDM SSC PDD have been revised accordingly to version 2. The latest version can be found at <http://cdm.unfccc.int/Reference/Documents>. Initial adoption.

03

02

8 July 2005

01 21 January 2003 Decision Class: Regulatory Document Type: Form Business Function: Registration