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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03

CDM – Executive Board page 1

CLEAN DEVELOPMENT MECHANISM


PROJECT DESIGN DOCUMENT FORM (CDM-PDD)
Version 03 - in effect as of: 28 July 2006

CONTENTS

A. General description of project activity

B. Application of a baseline and monitoring methodology

C. Duration of the project activity / Crediting period

D. Environmental impacts

E. Stakeholders’ comments

Annexes

Annex 1: Contact information on participants in the project activity

Annex 2: Information regarding public funding

Annex 3: Baseline information

Annex 4: Monitoring information

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SECTION A. General description of project activity

A.1. Title of the project activity:

Power Generation (20MW) by utilizing Coke Oven Gas of China Coal and Coke Jiuxin Limited in
Lingshi, Shanxi, P. R. China
Version:05
Date:08/02/2008

The history of the previous PDD versions:


Version 01: 28/09/2006
Version 02: 10/11/2006, after the first review meeting held by the Chinese DNA on October 10, 2006.
Version 03: 04/01/2007, after the review by Chinese CDM Experts in December, 2007.
Version 04: 18/05/2007, after the second review meeting held by the Chinese DNA on February 9, 2007
and the Validation protocol by the DOE.

Main revisions from Version 01 to Version 02:


1. In B.5 step 1 of the PDD/Version 02, the alternatives to the project activity consistent with current
laws and regulations instead of the baseline alternatives have been identified.
2. In B.5-Step 2-Sub-step 2c of the PDD/Version 02, the NPV has been deleted from the financial
indicators of the project activity.
3. In B.6.1 of the PDD/Version 02, it has been stated that the project emission and the project leakage
are zero in accordance with ACM0004/Version 02.

Main revisions from Version 02 to Version 03:


1. The estimation of annual emission reductions of the project activity has been modified from
76,619tCO2e/y to 67,599tCO2e/y in B.6.3 of the PDD/Version 03.
2. The self-consumption rate of the power plants connected to the North China Power Grid has been
added in B.6.2 of the PDD/Version 03.
3. The EGfrom-grid, y has been added as the data and parameters monitored in B.7.1 of the PDD/Version 03.

Main revisions from Version 03 to 04:


1. see corrective action requests in the validation protocol

Main revisions from Version 04 to 05:


1. Following a request for review the EB decided to register the project if a corrected PDD is submitted
selecting the appropriate baseline in accordance with the methodology i.e. for those alternatives,
including the project activity, which cannot be eliminated due to prohibitive barriers, an economic
comparison should be conducted to determine the appropriate baseline. The DOE shall then confirm
that all input values used in the economic comparison are independently validated.
2. The original IRR analysis under option III was based on a Net Present Value (NPV) analysis. A NPV
analysis is what is requested by the methodology i.e. an economic analysis that compares two
possible scenarios based on their expected future cash flows. The PDD has thus been amended to
present the NPV values comparing the two only realistic scenarios 1 and 2, rather than presenting the
IRR values.
3. As the underlying economic comparison is the same to calculate both the IRR and the NPV, the DOE
has already validated independently all its input values.

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A.2. Description of the project activity:

The purpose of the project activity-- utilizing Coke Oven Gas (COG) for power generation (20MW) -- is
to utilize the excess COG of China Coal and Coke Jiuxin Limited (simplified as Jiuxin Coke Plant
hereafter) for power generation. The electricity generated by this project will replace the equivalent
quantity of electricity from the North China Power Grid which is coal dominated. The generated electric
power will be used to fulfil the in-house requirement of Jiuxin Coke Plant. Without the project activity,
the same quantity of electricity for the in-house requirement of Jiuxin Coke Plant will be purchased from
the North China Power Grid.

The project is located in Lingshi county of Jinzhong city which is in the middle area of Shanxi province
of the People’s Republic of China. The total installed capacity of the project will be 20MW (40x500kW).
On its implementation, the annual electricity supply of the project activity is estimated to be 68,796MWh
and the ex-ante estimate of the total CO2 emission reductions from the project activity will be 675,990
tones of CO2 in a 10 year crediting period.
The investment to the project activity has been resolved which includes 30% of equity and 70% of Loan
from the China Development Bank.
The project activity will contribute to the sustainable development in the following aspects:
z The electricity generated by this project will displace grid power generated by the coal –fired
power plants. Therefore the project activity helps positively in reducing global warming by
avoiding the generation of CO2 which would have been generated if equivalent quantity of
electricity would have been taken from the grid;
z It will also help in reducing the air pollution caused by SO2, NOx and TSPs from the operation of
the coal-fired power plants. Thermal pollution caused by direct COG flare will also be avoided
by the implementation of the project.
z The project activity results in generation of employment opportunities during the construction
and operation stages. 50 permanent staff will be employed for the operation and maintenance of
the project.
z The project will promote the comprehensive resource utilization and thus will reduce the waste
of the energy resources.

A.3. Project participants:

The project participants are listed in Table A.3 -1:

Table A.3-1 Project participants


Name of Party involved (*) Kindly indicate if the Party
Private and/or public entity(ies)
involved wishes to be
((host) indicates a host project participants (*)
considered as project
Party) (as applicable)
participant (Yes/No)
People’s Republic of China China Coal and Coke Jiuxin Limited
No
(host) (project owner)
Sweden Carbon Asset Management Sweden AB No

A.4. Technical description of the project activity:

A.4.1. Location of the project activity:

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A.4.1.1. Host Party (ies):

People’s Republic of China

A.4.1.2. Region/State/Province etc.:

Shanxi Province

A.4.1.3. City/Town/Community etc:

Jinzhong city/Lingshi County

A.4.1.4. Detail of physical location, including information allowing the unique


identification of this project activity (maximum one page):

The project site is located inside the Jiuxin Coke Plant, which is 12 kM southwest of the downtown area
of Lingshi County. The geographical coordinates of Jiuxin Coke Plant are east longitude 111o38’49’’ and
north latitude 36o48’52’’. The project location is 7km northwest to Duanchun village, 4km southwest to
Houtan village and 4.5km southeast to the Dayun highway. (As per Figure A.4-1)

Fig. A.4-1 Location of the project

A.4.2. Category (ies) of project activity:

Category 1: Energy Industries (renewable/non-renewable sources)

A.4.3. Technology to be employed by the project activity:

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The project activity consists of 40 (35 in use and 5 stand-by) sets of Internal Combustion Engine &
Generator systems (Model: 500GF-3RJ, Rated power: 500kW) manufactured by Shengli Power
Machinery Works of Shengli Petrolum. The generation system includes: the internal combustion engine,
the generator, the air filter, the silencer, the auxiliary system, the pressure regulation device and the
control panels.

The reciprocating and four-stroke internal combustion engine mainly consists of the engine, shaft, plug,
ignition system and the cooling system. The natural gas, coal mine gas and COG can be burned in the
engine by plug ignition.

The technical specifications of the key units are as follows:


Internal combustion engine:
Type : 4 stroke, plug ignition
Model: T12V190ZLD

Electric generator:
Type : automatic, brushless
Model : 1FC6 406-4
Rated power : 500kw
Rated speed : 1500r/min
Frequency : 50Hz
Power factor : 0.8(lagging)
Voltage : 400v

The generation system is originally designed for the utilization of natural gas and has been applied
successfully in several CMM/CBM projects. Technical barriers exist for the utilization of COG which is
characterized as high content of impurities, low calorie value and variable qualities. In order to grantee
the safe and successful operation of the project activity, the project owner asks the equipment supplier to
be responsible for the operation and maintenance at the beginning stage by signing a renewable
agreement (the equipment manufacturer will be paid thereof). The initial operation training to the project
owner has been provided by the equipment manufacturer-Shengli Power Machinery Works of Shengli
Petroleum in November 2005 along with the commissioning of the project. And it is planned that the
training activity will be conducted in the following years until the project owner can carry out the
operation and maintenance work independently.

The time schedule of the project activity is shown below:

Table A.4-1Time schedule of the project activity


Project idea September, 2003
Resolution regarding CDM issue of China Coal and Coke Limited March 18, 2004
Feasibility study August, 2004
Preliminary design September, 2004
Construction start-up February 25, 2005
Construction completion & Equipment installation July 12, 2005
Commissioning November , 2005
Full operation January 7, 2006

The project activity does not involve any transfer of technology.

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A.4.4. Estimated amount of emission reductions over the chosen crediting period:

The estimation of CO2 emission reductions of the project activity during the crediting period are shown in
Table A.4-2.

Table A.4-2 The estimation of CO2 emission reductions of the project activity
Annual estimation of emission
Years
reductions in tonnes of CO2e
December 2007 5,633
2008 67,599
2009 67,599
2010 67,599
2011 67,599
2012 67,599
2013 67,599
2014 67,599
2015 67,599
2016 67,599
January – November 2017 61,966
Total estimated reductions(tonnes of CO2e) 675,990
Total number of crediting years 10
Annual average over the crediting period of estimated
67,599
reductions (tonnes of CO2e)

A.4.5. Public funding of the project activity:

No public funding from parties included in Annex-I is involved in the project activity.

SECTION B. Application of a baseline and monitoring methodology:

B.1. Title and reference of the approved baseline and monitoring methodology applied to the
project activity:

1. Consolidated baseline and monitoring methodology for waste gas and/or heat and/or pressure for
power generation, ACM0004/Version02;
2. Consolidated baseline methodology for grid-connected electricity generation from renewable sources,
ACM0002/Version06;
3. Tool for the demonstration and assessment of additionality /Version03.
For more information please refer to:
http://cdm.unfccc.int/methodologies/PAmethodologies/approved.html

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

The project activity will combust the waste gas (COG) that is produced in the coal coking process of
Jiuxin Coke Plant. It fulfils all of the application requirements of the approved consolidated methodology
ACM0004/Version 02:
z The generated electricity will fulfill the in-house power demand of Jiuxin Coke Plant which would

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otherwise have been purchased from the North China Power Grid in absence of the project activity.
The project activity would thus displace the electricity generation with fossil fuels in the power grid;
z The project activity will not lead to fuel switch in the coal coking process.

Thus it is appropriate to use ACM0004/Version 02 for this project.

No capacity expansion of the existing facility is planned during the crediting period.

The electricity generated by the project activity will displace the electricity from the North China Power
Grid, in accordance with the methodology ACM0004/Version 02, the emission factor should be
calculated according to the approved baseline methodology ACM0002/Version 06.

B.3. Description of how the sources and gases included in the project boundary:
In accordance with the requirements of ACM0004, the project boundary covers the coking process (the
COG source), the COG inlet pipe, the internal combustion engines, the generators, and the auxiliary and
control equipments in the generation station and all the devices and equipments in the Central
Transformer Substation. It also includes all the power generation plants which are physically connected to
the North China Power Grid. The region which is covered by the North China Power Grid includes
Beijing, Tianjin, Hebei province, Shandong province, Shanxi province and the Inner-Mongolia
autonomous region.

For the purpose of calculating project emissions and baseline emissions, the emission sources and gases
which are included in the project boundary are listed in Table B.3-1.

TableB.3-1 Project emissions and baseline emissions


Source Gas Included? Justification / Explanation
Equivalent electricity CO2 Included Main emission source
Baseline generation from the grid CH4 Excluded Excluded for simplification. This is conservative.
with flaring of COG N2O Excluded Excluded for simplification. This is conservative.
No other fossil fuels except the COG will be
On-site fossil fuel CO2 Excluded consumed during the start-up and operation of the
consumption due to the project activity. Therefore no such related emissions.
project activity CH4 Excluded Excluded for simplification.
Project
N2O Excluded Excluded for simplification.
Activity
It is assumed that COG would also have been burned
CO2 Excluded
Combustion of COG for in the baseline scenario.
electricity generation CH4 Excluded Excluded for simplification.
N2O Excluded Excluded for simplification.

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

The possible alternative baseline scenarios which could supply the same quantity of electricity generated
by the project activity are identified as follows:

Alternative 1: The project activity not undertaken as a CDM project activity;


Alternative 2: Equivalent electricity import from the grid with flaring of COG;
Alternative 3: New coal/diesel/natural gas/hydro/wind based captive power generation with flaring of
COG;

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Alternative 4: A mix of alternatives 2 and 3;


Alternative 5: Other uses of the waste COG.

Alternative 1: The project activity not undertaken as a CDM project activity


There were no related laws and regulations which oblige the utilization of COG when the proposal of this
project was approved by the local government. This alternative is in compliance with all applicable legal
and regulatory requirements. However, this alternative is not attractive from the financial point of view
(as detailed in Section B5 below) that making it prohibitive. Hence this option is not a part of the baseline
scenarios.

Alternative 2: Equivalent electricity import from the grid with flaring of COG
The in-house power requirements of Jiuxin Coke Plant could be fulfilled by purchasing grid electricity
from the North China Power Grid. No additional investment will be needed for this alternative and it is
therefore economically feasible. Most of the coke plants in China purchase grid electricity to fulfil their
power requirements.

It is stipulated in the “Emission Standard of Air Pollutants for Coke Oven (GB16171-1996)” that the
excess COG must be flared to the atmosphere and no direct discharge is allowed. The COG produced
from Jiuxin Coke Plant would also have been flared into the atmosphere in the absence of the project
activity.

This alternative is in compliance with all applicable legal and regulatory requirements and can be a
baseline scenario.

Alternative 3: New coal/diesel/natural gas/hydro/wind based captive power generation with flaring
of COG
Alternatives such as natural gas/hydro/wind based captive power generation are not realistic due to the
non-availability of the related resources. According to the Chinese laws, it is strictly forbidden to build
coal – fired captive power plants with the capacity of 135MW and below in the area under the coverage
of the power grid1. And the fuel-fired captive power plants with the capacity below 100MW will be
strictly controlled2 . A coal/diesel based captive power generation station which supply the same quantity
of electricity with the project activity will have a similar installed capacity (20MW). Hence it is not in
compliance with the national legal and regulatory requirements. This alternative can be excluded from the
baseline scenarios.

Alternative 4: A mix of alternatives 2 and 3


This alternative can be excluded from the baseline scenarios because alternative 3 is not a baseline
scenario.

Alternative 5: Other uses of the waste COG


The other potential uses of waste COG include direct distribution of COG to local industrial and
residential consumers.

This alternative complies with all legal and regulatory requirements. But there are no suitable industrial
consumers in the project area. The residential areas are far away from the project site and further be

1
“Decision on strictly forbidding the illegal construction of fuel-fired power plant with the capacity 135MW and
below”, General Office of the State Council, http://www.gov.cn/gongbao/content/2002/content_61480.htm
2
“The provisional regulation on the construction of small fuel-fired power plants”, August 1997.

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separated by mountains. Hence the investment on gas pipeline for COG supply to residential area is too
much to afford. In line with the methodology, this alternative depends on demand that is not available at
or nearby the project site and can thus be excluded from the baseline scenarios.

As requested by the methodology:


- evidence and supporting documents to exclude the last three baseline options has been provided to the
DOE and validated.
- It can be concluded that Alternative 1 and 2 are the only two possible baseline scenarios that cannot be
eliminated due to prohibitive barriers. Step 2 of the additionality tool will determine the most
economically attractive alternative as the baseline scenario.

B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below those
that would have occurred in the absence of the registered CDM project activity (assessment and
demonstration of additionality):

In accordance with ACM0004, the additionality of this project is to be demonstrated and assessed by the
latest version of “Tool for the demonstration and assessment of additionality /Version 03” created by
CDM Executive Board and available on the UNFCCC website.

Step 1. Identification of alternatives to the project activity consistent with current laws and
regulations
Sub-step 1a. Define alternatives to the project activity;
The alternatives to the project activity are as follows:
1. The project activity not undertaken as a CDM project activity;
2. Equivalent electricity import from the grid with flaring of COG;
3. New coal/diesel/natural gas/hydro/wind based captive power generation with flaring of COG;
4. A mix of alternatives 2 and 3;
5. Other uses of the waste COG.

Sub-step 1b. Enforcement of applicable laws and regulations


Alternatives 3 and 4 do not comply with legal and regulatory requirements. All the other three
alternatives are in line with applicable laws and regulations and they are already discussed in Section B.4.
Alternative 1 and 2 are the only two possible baseline scenarios that cannot be eliminated due to
prohibitive barriers. These two scenarios thus have to be compared with an economic comparison in order
to determine the appropriate baseline scenario.

Step 2. Investment analysis


The additionality of the project is going to be established by conducting the step 2: Investment analysis.
It is to determine whether the proposed project activity is economically or financially less attractive than
other alternatives without the revenues from the sale of certified emission reductions (CERs). To conduct
the investment analysis, the following sub-steps will be followed:

Sub-step 2a. Determination of the appropriate analysis method


The “Tools for the demonstration and assessment of additionality/Version 03” recommends three analysis
methods, including simple cost analysis (Option I), investment comparison analysis (Option II) and
benchmark analysis (Option III).

The proposed project activity generates both CDM related income and electricity related income, then
option I-the simple cost analysis can not be used. Thus, the investment comparison analysis method

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(Option II) is used.

Sub-step 2b. Investment comparison analysis (Option II)


A Net Present Value (NPV) analysis is an economic comparison tool widely used in the private sector for
investment appraisal, comparing two possible scenarios with each other by taking into account relevant
future cash flows. The NPV analysis’s discount rate is chosen to be the equity Internal Rate of Return
(IRR) in accordance with the “Tool for the demonstration and assessment of additionality /version 03”.
The value of equity IRR for the fuel-fired power plants (equity, after income tax) is chosen to be 13% in
accordance with “Economic Evaluation Method and Parameters for Construction Projects/Version 03”3

Sub-step 2c. Calculation and comparison of financial indicators


(i). Basic parameters for the calculation of financial indicators

A project life time of 18 years was considered. According to the feasibility study of the project and
“Economic Evaluation Method and Parameters for Construction Project/Version 03”, major parameters
needed for the calculation of equity NPV are listed in Table B.5-1. As the power supplied by the project
activity to Jiuxin Coke Plant will displace the grid power from the North China Power Grid, the grid
power purchasing cost will be saved and it can be regarded as an income created by the project activity.
The electricity tariff is 0.3564 Yuan/KWh.

Table B.5-1 Major Parameters for the calculation of IRR/NPV


Installed Capacity 20MW
Electric power supply 68,796MWh/y
Equity RMB 27.336 million Yuan
Annual operation and maintenance cost RMB 11.326 million Yuan
Electricity tariff RMB 0.3564Yuan/kWh
Expected CERs price US$ 9.5/tCO2e
The exchange rate 7.7(Yuan/US$)
Operation guarantee fee4 0.12(Yuan/kWh)
Benchmark value of IRR 13% (Equity, after income tax)
NPV Alternative 1 -181 408,5 million Yuan
NPV Alternative 2 -167 706,9 million Yuan

(ii). Calculation and comparison of the equity IRR

Sub-step 2d. Sensitivity analysis


The sensitivity analysis shall show whether the conclusion regarding the financial attractiveness is robust
to reasonable variations in the critical assumptions. For such purpose, four parameters were selected as
sensitive factors to check out their effects on the NPV.
1. Static total investment
2. Annual operation & maintenance cost
3. Annual power supply
4. Electricity tariff

3
“Economic Evaluation Method and Parameters for Construction Projects/Version 03”, China Plan Press, 2006.
4
Referring to the labour fee paid by the project owner to the manufacturer of generator sets applied in this proposed
project. According to the agreement between the project owner and the manufactuer of generator sets, the
manufactuer will be responsible for the operation and maintenance, and the project owner will pay for it in term of
RMB 0.12 yuan per KWh

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Without CDM revenues, the NPV fluctuates with the variations of the above four factors. The results are
shown in Table B.5-3 below.

Table B.5-3 Sensitivity analysis of the project activity

-10,0% -7,5% -5,0% -2,5% 0,0% 2,5% 5,0% 7,5% 10,0%


Annual power supply -30 472 -26 280 -22 087 -17 894 -13 702 -9 509 -5 316 -1 124 3 069
Electricity tariff -30 472 -26 280 -22 087 -17 894 -13 702 -9 509 -5 316 -1 124 3 069
Annual operation and maintenance co -5 955 -7 891 -9 828 -11 765 -13 702 -15 638 -17 575 -19 512 -21 449
Static total investment -6 114 -8 011 -9 908 -11 805 -13 702 -15 599 -17 496 -19 393 -21 290

As shown in Table B.5-3, the NPV varies to different extent when the above four factors fluctuate within
the range from -10% to 10%. Impacts of static total investment and annual operation and maintenance
cost are less significant. Whether these two factors fluctuate, the NPV is always negative. The impacts of
annual power supply and electricity tariff on the NPV are more significant compared with the other two
factors. When these two factors vary from -10% to 8.17%, the NPV keeps lower than the benchmark
value. But when they increase by more than 8.17%, the NPV begins to be positive. However, the scale of
the coke production is relatively fixed therefore the waste gas utilized by the project is fixed too, so that
the annual power supply is fixed. The electricity tariff is also fixed and will not be raised by 8.17% in
recent years. The above analysis shows that it will not be possible to get a positive NPV without the CDM
revenues. It is always true that the project activity is not financially attractive without the CDM revenues.

It is concluded after the sensitivity analysis that the project activity is unlikely to be financially attractive.
Then goes to step 4 (Common practice analysis) according to the “Tool for the demonstration and
assessment of additionality/Version 03”.

Step 4. Common practice analysis


Sub-step 4a. Analyze other activities similar to the proposed project activity:
There was no case of power generation with COG in Shanxi province before 2002 based on the data
provided in “China Energy Statistics Yearbook”. The COG used for power generation only accounted for
3.34%5 of the total recovered COG of Shanxi province in 2002. And no similar projects with the project
activity had been found until 2002.
Between the year 2003-2006, nine power generation projects with COG by using the Internal Combustion
Engine have been constructed in Shanxi province. But there are only two projects (including the project
activity) are with installed capacity above 10MW. The project activity is the only one with the installed
capacity above 15MW. In other words, this project activity is the first of its kind in Shanxi province
between 2003 and 2006. As the first of its kind project with the largest scale, it is in lack of management
experiences, skilled workers and related experts for the successful operation of the project activity. As
stated in Step 2 : Investment analysis, this project activity is not finacially attractive without the CDM
revenues. It could be concluded that the project activity is not a common practice in Shanxi Province. No
new projects of the kind have been set up in 2006 because of the shrinking coke market in these two years.

Sub-step 4b. Discuss any similar options that are occurring:


The analysis of sub-step 4a demonstrates that the project activity is the biggest one of its type in Shanxi
province between 2003 and 2006. In other words, no similar projects that are occurring have been
observed. Therefore goes to step 5.

5
“China Energy Statistic Yearbook”, 2000-2002.

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Step 5. Impact of registering the project with CDM


The successful registration as a CDM project would bring obvious economic benefit to the project owner.
It also would improve the equity IRR from 10.10% to 16.04%, help the project to overcome the
investment barrier and facilitate the investment decision. The successful registration as a CDM project
would also make the project to be an environmental friendly project, improve its attractiveness to the
investor and equipment supplier and make the construction, operation and maintenance of the project
activity possible. Therefore the emission reductions of the project activity could be realized.

Based on the above steps, it may be satisfactorily concluded that this project activity is not a baseline
scenario and is clearly additional.

B.6. Emission reductions:

B.6.1 Explanation of methodological choices:

As per the methodology ACM0004, the project emissions, baseline emissions, leakage emissions and
emission reductions are calculated as follows:

1: Determination of project emissions and leakage emissions:


In accordance with ACM0004, project emissions are applicable only if auxiliary fuels are fired for
generation startup, in emergencies, or to provide additional heat gain before entering the waste heat
recovery boiler. This is not the situation of the project activity. Hence the project emission is zero.

And no leakage is considered according to ACM0004.

2:Determination of baseline emissions:


Baseline emissions are given as:
BEelectricity,y = EGy × EFy (B.2)
Where:
EGy is the net quantity of electric power supplied by the project activity during the year y in MWh;
EFy is CO2 baseline emission factor for the grid electricity displaced due to the project activity during the
year y (tCO2/MWh).

The electricity generated in this project will displace the equivalent grid electricity from the North China
Power Grid. According to ACM0004, if the baseline scenario is determined to be grid power supply, the
CO2 emission factor for the displaced electricity can be calculated as in ACM0002/Version 06.

The office of National Coordination Committee on Climate Change under the DNA of China – the
National Development and Reform Commission, has determined the baseline emission factors of Chinese
regional grids in “Bulletin of Baseline Emission Factors of the Regional Power Grids of China” 6
published on December 15, 2006. It has been adopted in this PDD. Please refer to Annex 3 for the details
in determining the emission factor of the North China Power Grid.

Emission Factor of the North China Power Grid

6
Bulletin of Determining the Emission Factors of Chinese Power Grid, China National Development and Reform
Committee, http://cdm.ccchina.gov.cn/web/index.asp.

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According to the methodology ACM0002/Version 06, the baseline emission factor of the North China
Power Grid (EFy) is calculated as a combined margin(CM), consisting of the combination of operating
margin(OM)and build margin(BM) factors according to the following steps. The calculations are
based on “China Energy Statistical Yearbook 2000-2002, 2004 and 2005”, “China Electric Power
Yearbook 2002, 2003, 2004 and 2005” and “Revised 1996 IPCC Guidelines for national Greenhouse Gas
Inventories”.

Step 1: The calculation of the Operating Margin emission factor (EFOM)


In accordance with ACM0002, the Operating Margin (OM) can be calculated based on one of the four
methods:
(a) Simple OM
(b) Simple adjusted OM
(c) Dispatch data analysis OM
(d) Average OM
As per the methodology, the Dispatch Data Analysis (c) should be the first methodological choice.
However, “c” is not selected because the dispatch data of the power plants connected to the North China
Power Grid are not publicly available. The Simple adjusted OM “b” is not selected because the Load
Duration Curve at power plant level is not publicly available too. The simple OM method “a” can be used
when low-cost/must run resources constitute less than 50% of total grid generation in average of the five
most recent years. The North China Power Grid to which the project is connected is dominated by fuel-
fired power generation, the low-cost/must run power resources such as hydro, geothermal, wind, solar,
nuclear, and low cost biomass only account for 0.76% in 2004, 0.86% in 2003, 0.89% in 2002, 0.85% in
2001 and 1.13% in 2000, respectively (As per Table A3-1to Table A3-5), of the total grid generation.
Therefore it is reasonable to use “a” -the simple OM method to calculate the OM emission factor of the
North China Power Grid. The Average OM (d) is not selected because it can only be used where low
cost/must run resources constitute more than 50% of the total grid generation.

The Simple OM emission factor of the North China Power Grid is calculated (ex-ante) as a 3-year
generation-weighted average based on the most recent statistics available at the time of PDD submission.

The Simple OM emission factor (EFOM, simple, y) of the North China Power Grid is calculated as the
generation-weighted average emissions per electricity unit (in tCO2/MWh) of all generating sources
serving the grid, excluding low-operating cost and must-run power plants in year y:

i, j
F i , j , y ⋅ COEF i, j

EF = (B.3)

OM , simple ,y
GEN j,y
j

Where:
Fi,j,y is the amount of fuel i consumed (in a mass or volume unit) by relevant power sources j in year y;
COEFi,j is the CO2 emission coefficient of fuel i (tCO2/mass or volume unit of the fuel), taking into
account the carbon content of the fuels used by relevant power sources j and the percent oxidation of fuel
in year y;
GENj,y is the electricity (MWh) delivered to the grid by source j;
j refers to the power sources delivering electricity to the grid, not including low-operating cost and must-
run power plants, and including imports from other grid.

The electricity delivered to the grid by source j GENj,y is obtained as:


GENj,y = Gj,y ×(1-Self consumption ratej) (B.4)

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Where:
GENj,y is the electricity (MWh) delivered to the grid by source j;
Gj,y is the electricity (MWh) generated by the power sources j;
Self-consumption ratej is the electricity consumption rate of the power source j.

The CO2 emission coefficient of fuel i, COEFi is obtained as:


COEFi = NCVi×EFCO2,i×OXIDi (B.5)

Where:
NCVi is the net calorific value per mass or volume unit of the fuel i, country-specific values;
OXIDi is the oxidation factor of the fuel i, IPCC default values;
EFCO2,i is the CO2 emission factor per unit of energy of the fuel i, IPCC default values.

The baseline OM emission factor (EFOM) is calculated as a 3-year generation-weighted average based on
the most recent statistics available on 2002, 2003 and 2004.

EFOM , simple, y × GEN y


EFOM = ∑y GEN TOTAL
(B.6)

Where:
y is the years 2002, 2003, and 2004;
GENy is the electricity supplied to the North China Power Grid in year y;
GENTotal is the total electricity supplied to the North China Power Grid in three years.

Based on Table A3-6 to Table A3-14 of Annex 3, the calculated Simple OM Emission Factor of the North
China Power Grid is:
EFOM = 1.0584962tCO2e/MWh

Step 2. The calculation of the Build Margin Emission Factor (EFBM)


In accordance with ACM0002, the Build Margin emission factor EFBM, y is given as the weighted average
emission factor of a sample of power plants m, as follows:

i ,m
F i , m , y × COEF i,m

EF = (B.7)

BM , y
GEN m,y
m

Where:
Fi,m, y is the amount of fuel i(tce)consumed by plant m in year y;
COEFi,m,y is the CO2 emission coefficient (tCO2/tce)of fuel i, taking into account the carbon content of the
fuels used by plant m and the percent oxidation of the fuel in year y;
GENm,y is the electricity (MWh) delivered to the grid by plant m;
m is the sample group of power generation plants consists of either:
z The five power plants that have been built most recently, or
z The power plants capacity additions in the electricity system that comprise 20% of the system
generation (in MWh) and that have been built most recently.

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According to ACM0004, the Build Margin emission factor EFBM is calculated ex-ante based on the most
recent information available on plants already built for sample group m at the time of PDD submission.
Given the size of the North China Power Grid and the rate of plant additions to the grid (significantly
more than 5 plants per year), the most recent 20% of capacity addition to the generation system is chosen
as this would represent a sample group that comprises the larger annual generation.

Because data at plant’s level of the North China Power Grid are not available, the EB’s guidance on
deviations is adopted in this calculation. The detailed steps and the related formulas are as follows:

Sub-step 1. Calculating the proportion of CO2 emissions from solid, liquid and gaseous fuels for
power generation in the total CO2 emissions
∑F
i∈COAL , j
i, j, y × COEFi , j
λCoal = (B.8)
∑F
i, j
i, j , y × COEFi , j

∑F
i∈OIL , j
i, j, y × COEFi , j
λOil = (B.9)
∑F
i, j
i, j, y × COEFi , j

∑F
i∈GAS , j
i, j, y × COEFi , j
λGas = (B.10)
∑F
i, j
i, j, y × COEFi , j

Where:
Fi,j,y is the amount of fuel i consumed (in a mass or volume unit) by relevant provincial sub-grids j in year
y;
COEFi,j is the CO2 emission coefficient of fuel i (tCO2/mass or volume unit of the fuel), taking into
account the carbon content of the fuels used by relevant provincial sub-grids j and the percent oxidation
of fuel in year y;
COAL,OIL,and GAS refers to all forms of coal, oil and gas.

Sub-step 2. Calculating the Emission Factor of fuel-fired power technology

EFFuel − fired = λCoal × EFCoal , Adv + λOil × EFOil , Adv + λGas × EFGas , Adv (B.11)
Where:
EFCoal,Adv, EFOil,Adv and EFGas,Adv represent the related Emission factor of the commercially available most
advanced coal, oil and gas fired power technology, please refer to Annex 3 for more details.

Sub-step 3. Calculating the EFBM of the North China Power Grid

CAPFuel − fired
EFBM = × EFFuel − fired (B.12)
CAPTotal
Where:
CAPTotal is the newly increment of total installed capacity;
CAPFuel-fired is the newly increment of fuel-fired installed capacity.

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Based on the above statements and data, the calculated Build Margin emission factor of the North China
Power Grid is:
EFBM =0.9066 tCO2e/MWh
The key information and data can be found in Table A3-15 to Table A3-20 of Annex 3.

Step 3. The calculation of the baseline emission factor EFy


Finally, the baseline emission factor (EFy) is calculated as the arithmetic average of operating margin
(OM) and build margin (BM), therefore:
EFy = 0.5 × EFOM + 0.5 × EFBM = 0.9826 tCO2e/MWh (B.13)

3: Estimation of emission reductions:


In accordance with the methodology ACM0004 the emission reductions by the project activity are
calculated as the difference between the baseline emissions and the project emissions. Since there are no
project emissions and leakage emissions in the project activity so the emission reductions are equivalent
to the baseline emissions.
The ex-ante estimate of emission reductions is 67,599tCO2e/y (as per B.6.3 for details).

B.6.2. Data and parameters that are available at validation:

Data / Parameter: OXIDi


Data unit: %
Description: The oxidation factor of fuel i
Revised 1996 IPCC Guidelines for National Greenhouse Gas
Source of data used: Inventories: Workbook, Table 1-2 on page1.6 and table 1-4 on page
1.8, chapter 1.
Value applied: As per table A3-6, A3-9 and A3-12 of Annex 3
Justification of the choice of data or IPCC default values are adopted in accordance with
description of measurement methods ACM0002/Version06.
and procedures actually applied :
Any comment: Low uncertainty

Data / Parameter: NCVi


Data unit: GJ/t ,km3
Description: The net calorific value per mass or volume unit of a fuel i
Source of data used: China Energy Statistics Yearbook 2005, page 365
Value applied: As per table A3-6, A3-9 and A3-12 of Annex 3
Justification of the choice of data or Local values should be used in accordance with
description of measurement methods ACM0002/Version06.
and procedures actually applied :
Any comment: Low uncertainty

Data / Parameter: EFCO2,i


Data unit: tC/TJ
Description: The CO2 emission factor per unit of energy of the fuel i
Revised 1996 IPCC Guidelines for National Greenhouse Gas
Source of data used: Inventories: Workbook, Table 1-2 on page1.6 and table 1-4 on page
1.8, chapter 1.

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Value applied: As per table A3-6, A3-9 and A3-12 of Annex 3


Justification of the choice of data or If no local values of EFCO2,i are available, the IPCC default values
description of measurement methods should be used in accordance with ACM0002/Version06.
and procedures actually applied :
Any comment: Low uncertainty

Data / Parameter: COEFi,y


Data unit: tCO2/mass or volume unit of the fuel
The CO2 emission coefficient of fuel i, taking into account the
Description: carbon content of the fuels and the percent oxidation of the fuel in
year y
Source of data used: Calculated from NCVi, EFCO2,i and OXIDi
Value applied: As per table A3-6, A3-9 and A3-12 of Annex 3
Justification of the choice of data or The data source of the parameters used for the calculation of
description of measurement methods COEFi,y are all in accordance with ACM0002/Version 06
and procedures actually applied :
Any comment: Low uncertainty

Data / Parameter: Fi,j,y


Data unit: 104t,108m3
The amount of fuel i (in a mass or volume unit) consumed by
Description:
relevant provincial sub-grid j in year y
Source of data used: China Energy Statistical Yearbook 2000-2002, 2004,2005
Value applied: As per Table A3-6, A3-9 and A3-12 in Annex 3
Justification of the choice of data or Authoritative national publications
description of measurement methods
and procedures actually applied :
Any comment: Low uncertainty

Data / Parameter: GENj,y


Data unit: MWh
Electricity delivered to the North China Power Grid by provincial
Description:
sub-grid j in year y
Source of data used: China Electric Power Yearbook 2002, 2003,2004,2005
Value applied: As per Table A3-7, Table A3-10 and Table A3-13 in Annex 3
Justification of the choice of data or Authoritative national publications
description of measurement methods
and procedures actually applied :
Any comment: Low uncertainty

Data / Parameter: Eff fuel coal, oil, gas - fired plants, Adv
Data unit: %
Description: Average power supply efficiency of the commercially available most

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advanced fuel-fired power plants in China


Bulletin on Baseline Emission Factors of the Regional Power Grids
Source of data used: of China
http://cdm.ccchina.gov.cn/web/index.asp
Value applied: As per Table A3-16 in Annex 3
Justification of the choice of data or Authoritative government bulletin
description of measurement methods
and procedures actually applied :
Any comment: Low uncertainty

Data / Parameter: Installed capacity


Data unit: MW
Description: Installed capacity of provincial sub-grids
Source of data used: China Electric Power Yearbook 2002,2003,2005
Value applied: As per Table A3-17 , A3-18 and A3-19 in Annex 3
Justification of the choice of data or Authoritative national publications
description of measurement methods
and procedures actually applied :
Any comment: Low uncertainty

Data / Parameter: Hr
Data unit: %
Self-consumption rate of the provincial sub-grids the North China
Description:
Power Grid
Source of data used: China Electric Power Yearbook 2003,2004,2005
Value applied: As per Table A3-7, A3-10, A3-13 in Annex 3
Justification of the choice of data or Authoritative national publications
description of measurement methods
and procedures actually applied :
Any comment: Low uncertainty

Data / Parameter: EFy


Data unit: tCO2/MWh
CO2 baseline emission factor of the grid (the North China Power Grid)
Description:
electricity displaced due to the project activity during the year y
Calculated as the arithmetic average of operating margin (OM) and
Source of data used:
build margin (BM)
Value applied: 0.9826
Justification of the choice of data or Calculated by Chinese DNA according to ACM0002/Version 06 and
description of measurement methods EB guidance, using publicly available statistic data
and procedures actually applied :
Any comment: Low uncertainty

Data / Parameter: EFOM


Data unit: tCO2/MWh
Description: CO2 operating margin emission factor of the grid
Calculated ex-ante as the generation-weighted average emissions per
Source of data used: electricity unit of all generating sources serving the system, not
including low-operating cost and must-run power plants, as per the

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“Bulletin on Baseline Emission Factors of the Regional Power Grids


of China, http://cdm.ccchina.gov.cn/web/index.asp”
Value applied: 1.0584962
Justification of the choice of data or Calculated by Chinese DNA according to ACM0002/Version 06 and
description of measurement methods EB guidance, using publicly available statistic data
and procedures actually applied :
Any comment: Low uncertainty

Data / Parameter: EFBM


Data unit: tCO2/MWh
Description: CO2 build margin emission factor of the grid
Calculated ex-ante as the weighted average emission factor of the
electricity delivered to the grid by the power plants that comprise 20%
capacity additions of the system generation (in MWh)and that have
Source of data used:
been built most recently, as per the “Bulletin on Baseline Emission
Factors of the Regional Power Grids of China,
http://cdm.ccchina.gov.cn/web/index.asp”
Value applied: 0.9066
Justification of the choice of data or Calculated by Chinese DNA according to ACM0002/Version 06 and
description of measurement methods EB guidance, using publicly available statistic data
and procedures actually applied :
Any comment: Low uncertainty

B.6.3. Ex-ante calculation of emission reductions:

As stated above, the project emission is zero and no leakage is considered so the emission reductions of
the project equal to the baseline emissions as presented in formula (B.1) BEelectricity,y = EGy × EFy.

As calculated in B.6.1, the EFy of the North China Power Grid is 0.9826 tCO2e/MWh and the EGy is the
difference between the annual electricity generation and the annual self-power utilization of the project
activity, it is calculated to be 68,796MWh ( 35sets x 300kw/set x 7200h/y x (1-9%)/1000 =
68,796MWh).

Therefore the annual emission reductions is ex-ante calculated to be 0.9826 tCO2e/MWh × 68,796MWh/y
=67,599 tCO2e/y.

B.6.4. Summary of the ex-ante estimation of emission reductions:

Estimation of Estimation of Estimation of


Estimation of
project activity leakage overall emission
Year baseline emissions
emissions (tonnes of reductions
(tonnes of CO2e)
(tonnes of CO2e) CO2e) (tonnes of CO2e)
December, Year 2007 0 5,633 0 5,633
Year 2008 0 67,599 0 67,599
Year 2009 0 67,599 0 67,599
Year 2010 0 67,599 0 67,599
Year 2011 0 67,599 0 67,599
Year 2012 0 67,599 0 67,599
Year 2013 0 67,599 0 67,599

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Year 2014 0 67,599 0 67,599


Year 2015 0 67,599 0 67,599
Year 2016 0 67,599 0 67,599
January-September 2017 0 61,966 0 61,966
Total (tonnes of CO2e) 0 675,990 0 675,990
B.7. Application of the monitoring methodology and description of the monitoring plan:

B.7.1. Data and parameters monitored:

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Data / Parameter: EGGen,y


Data unit: MWh
Description: Total electricity generated by the project activity during the year y
Source of data to be used: Electricity meters
Value of data applied for the
purpose of calculating expected
75,600
emission reductions in section
B.5
The electricity will be monitored continuously and the daily and monthly
Description of measurement
records in a paper format will be archived in the power generation station.
methods and procedures to be
Model of the electricity meters is DSSD666 (manufactured by Zhejiang
applied:
Zhengtai Instrument and Device Co., Ltd.) with accuracy class of 0.5S.
Monitoring instrument will be subject to a regular maintenance and
QA/QC procedures to be
calibration by qualified entities in accordance with national regulations and
applied:
standards.
Any comment: Low uncertainty

Data / Parameter: EGAux,y


Data unit: MWh
Description: The auxiliary electricity consumed by the project activity
Source of data to be used: Electricity meters
Value of data applied for the
purpose of calculating expected
6804
emission reductions in section
B.5
The electricity will be monitored continuously and the daily and monthly
Description of measurement
records in a paper format will be archived in the power generation station.
methods and procedures to be
Model of the electricity meters is DSSD666 (manufactured by Zhejiang
applied:
Zhengtai Instrument and Device Co., Ltd.) with accuracy class of 0.5S.
Monitoring instrument will be subject to a regular maintenance and
QA/QC procedures to be
calibration by qualified entities in accordance with national regulations and
applied:
standards.
Any comment: Low uncertainty

Data / Parameter: EG y
Data unit: MWh
Description: Net quantity of electricity supplied by the project activity during the year y
Source of data to be used: By calculation , EGy= EGGen,y-EGAux, y
Value of data applied for the
purpose of calculating expected
68,796
emission reductions in section
B.5
EGy will be calculated by the measured amount of electricity generated by
Description of measurement
methods and procedures to be the project activity ( EGGen,y ) and the measured amount of auxiliary
applied: electricity consumed by the project activity(EGAux,y)
QA/QC procedures to be This data is calculated from EGGen,y and EGAux,y, therefore the QA/QC
applied: procedure applied to EGGen,y and EGAux,y also could be applied to EGy.

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Any comments Low uncertainty


B.7.2. Description of the monitoring plan:

As the project owner, China Coal and Coke Jiuxin Limited will be responsible for the implementation of
this monitoring plan. The project owner will take all the responsibilities as outlined in the monitoring plan.
The monitoring plan can be modified according to the requirements of DOE in order to make sure that the
monitoring will be reliable, transparent and conservative.

1. The purpose of establishing monitoring plan


The monitoring plan is established in order to ensure that the real, measurable and long-term GHG
emission reductions for the project activity is monitored and reported. A credible, transparent and
accurate data estimation, measurement, collection and tracking system will be set up in order to preserve
the information needed for the verification of emission reductions.

2. The duration of the monitoring plan


The duration of the monitoring plan will be the crediting period of the project activity (10 years).

3. Management operation
China Coal and Coke Jiuxin Limited will establish a CDM project management office with
responsibilities for all project related activities including project management, contact with CDM EB and
DOE as well as Quality Assurance and Quality Control of the related data, documents and reports.

Staff of the CDM project management office includes the deputy general manager (responsible person),
the director of the power generation station, the head of the power generation workshop, the head of the
power distribution workshop and the person responsible for record keeping and preservation. Figure B.7-
1 outlines the operational and management structure that the project owner will implement for the project
activity and to monitor emission reductions.

Deputy General Manager (the responsible person)


China Coal and Coke Jiuxin Limited

Director of the power generation station

Head of the power Head of the power distribution Record keeper


generation workshop workshop

Fig. B.7-1 Operational and management structure of the project activity

4. Installation of relevant instruments


The total electricity generated and the auxiliary electricity consumed by the project activity will be
monitored by electricity meters installed in the Central Transformer Substation of the power generation
station. The installation, maintenance and calibration of the meters will be conducted by qualified entities.

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The installed instruments will be co-checked and sealed by China Coal and Coke Jiuxin limited and the
qualified entity. Any party will not be allowed to open the seal without the presence of another party or
its authorized representative.

5. Recording & preservation of relevant data


In accordance with the approved monitoring methodology ACM0004, the following data will be required
to be monitored and recorded.
z The total electricity generated by the project activity—by the electricity meters installed in the
Central Transformer Substation.
z The auxiliary electricity consumed by the project activity—by the electricity meter installed in the
central Transformer Substation.

The readings of the electricity meters will be monitored continuously and the data will be collected and
recorded accordingly. All the data would be preserved in paper format during and two years after the
crediting period, and the data of the electricity meters will also be preserved electronically. Necessary
back-up of the electronic data is to be done at regular intervals. Physical document will be stored by the
project owner and kept one copy in order to facilitate the verification of the DOE.

Any change within the project boundary, such as change in equipments or instruments will be recorded
and any change in the emission reduction due to such alteration will also be studied and recorded.

6. Calibration of relevant instruments


z All meters and devices will be properly calibrated and checked by qualified entities annually
according to the requirement from “Stipulated Procedures for Technical Administration of Electricity
Metering Equipment (DL/T448-2000)” in order to ensure the reliability of the system and the
accuracy of the readings;
z The related calibration records will be submitted to the project owner for its record preservation;
z When the accuracy of a device can meet the requirement of national standard, the accuracy of the net
quantity of electricity supplied by the project activity can be ensured to meet the verification
requirement of DOE.
z When a device or meter is found to be malfunctioning or registering data outside the acceptable
limits of accuracy, the electricity will be estimated as follows:

1. Data of the electricity meters are remotely transmitted to local electric power supply
company and any malfunctions of the electricity meter will be detected immediately.
The local electric power supply company will be responsible to repair or replace the
malfunctioning meter within two working days.
2. The electricity during the two working days will be determined as follows: first, take
the reading of the transmitted data to local electric power supply company. If this
reading is obviously unreasonable, an appropriate and reasonable estimation method
will be designed by local electric power supply company. Evidence will be provided to
DOE for the verification to show the estimation is reasonable and conservative.

B.8. Date of completion of the application of the baseline study and monitoring methodology and
the name of the responsible person(s)/entity(ies)

Date of completion of the baseline and monitoring study:


15/08/2006

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Contact information of the person and entity determining the baseline and monitoring methodology:

Ms. Liu Honghui


China CDM Center for Coal Industry, which is not a project participant
Suit 1701, The Coal Tower
No. 35, 13th Region of Heping Street
Chaoyang District, Beijing 100013
P.R. China
Tel: 86-10-84264119
e-mail: [email protected]
URL: www.coalcdm.org

Persons who has participated in the baseline and monitoring study:


Dr. Zhang Min
Dr. Lv Xin

SECTION C. Duration of the project activity / Crediting period

C.1. Duration of the project activity:

C.1.1. Starting date of the project activity:

January 7, 2006 (Full operation)

C.1.2. Expected operational lifetime of the project activity:

18years

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

C.2.1. Renewable crediting period

Not applicable

C.2.1.1. Starting date of the first crediting period:

Not applicable

C.2.1.2. Length of the first crediting period:

Not applicable

C.2.2. Fixed crediting period:

Fixed crediting period at ten (10) years

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C.2.2.1. Starting date:

22/12/2007

C.2.2.2. Length:

10years

SECTION D. Environmental impacts

D.1. Documentation on the analysis of the environmental impacts, including transboundary


impacts:

Jiuxin Coke Plant (including the project activity) has undergone and passed a complete Environmental
Impact Assessment Study in line with the legal and regulation requirements of the Chinese Government.
The approval letter for the project activity has been issued by Shanxi EPA already.

The project site is inside Jiuxin Coke Plant which is far away from the surrounding villages. The original
air pollutants in the project area are mainly SO2 and TSPs from the industrial pollution sources. These tow
pollutants are respectively 54.67% and 73.81% higher than the “National Ambient Air Quality Standard
– Category II ”(with 0.15mg/Nm3 for SO2 and 0.3mg/Nm3 for TSPs). There is almost no noise pollution in
the project area as no big noise source exists in the surroundings.

The possible environmental impacts caused by the project activity and the related control measures are
shown below:

1. Air pollution and its control


On its full operation the project is expected to generate 68,796MWh of electricity per year. It is estimated
that 25,730 tce of standard coal will be saved. It will lead to reductions of air pollutant emissions which
are equal to 515 tonnes of SO2, 266 tonnes of NOx and 15 tonnes of TSPs. The project activity will have a
positive effect on local air quality.

Dust is the main air pollutant during the construction period. It can be controlled by water spray.

2. Noise pollution and its control


Major source of noise pollution during the operation period is from the generation system. But the noise
level will be lower than 100dB(A).

Noise pollution will also be kept below the national noise permission level by proper design and control
measures. Acoustic cases will be installed outside the generators and silencers will be provided at the
outlet pipe in order to reduce the noise level. Control rooms and offices will be protected from noise by
using isolating, sealing and adsorbing materials. The results of EIA show that the noise level within the
boundary of the project site can meet the requirement of Category I of “Standard for Noise at Boundary
of Industrial Enterprises (GB12348-90)”. The noise level of the nearest village—the Tanzhen village
can meet the requirement of the “Standard of Environmental Noise of Urban Area-Category I (GB3096-
93)” (55dB(A) on daytime and 45dB(A) in the night). It is considered that the project operation will not
have significant impact on the surrounding sound environment.

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The noise pollution during the construction period is mainly from the running of the construction
machines. As the construction is only on daytime and the construction period is quite short, the noise
pollution impact to the local villages could be controlled effectively.
3. Water pollution and its control
The enclosed water recycle will be adopted for the cooling of the generation system. As zero discharge
can be attained, it will not have any adverse impact to the ground and surface water.

4. Impact to ecological environment and its control


The destruction of ground vegetation and the dump of construction trash will affect the ecological
environment of this area. Measures will be taken to reduce the impacts as much as possible, such as
reducing the civil works area by reasonable design, re-planting after the construction period, keeping
green index as high as possible and dumping the construction trash carefully.

5. Land use and its impact to local residents


The project is located in an abandoned river-basin. There are no compulsory purchase of agriculture land
and no resettlement of farmers. Three nearby villages are far enough from the project site and further be
protected by hills. Therefore neighbourhood will not be affected by this project.

D.2. If environmental impacts are considered significant by the project participants or the host
Party, please provide conclusions and all references to support documentation of an environmental
impact assessment undertaken in accordance with the procedures as required by the host Party:

All environmental impacts will be under control and will have no significant impacts to the environment.

SECTION E. Stakeholders’ comments

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

The project owner has sought the stakeholders’ comments for the project activity as follows:
1. Discussions with the local government, such as the Economy and Trade Bureau, the Environmental
Protection Agency, the Price Bureau and the Electric Power Supply Bureau since the second half of
2004.
2. An open public meeting participated by local villagers who live nearby.
3. A survey made by questionnaire to local villagers who live nearby.

The public meeting was held in April 30, 2005. Participants include 6 staff from China Coal and Coke
Jiuxin Limited and 16 local residents who live in the nearby three villages. The objective of this open
public meeting is to make the local residents understand the project activity and to call for their comments.
Mr. Yang Xiangsheng, the Deputy General Manager of China Coal and Coke Jiuxin Limited gave a brief
introduction of the project activity, the social and environmental benefits that would be brought by the
project activity and the environmental impacts that might be caused by the project activity. The Crowd
attending the meeting raised several questions which focused on the occupation of farmland, noise
pollution, air pollution and water pollution that might be caused by the project.
The questionnaire of the survey is shown in Table E.1-1

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Table E.1-1 Questionnaire


1. How do you feel with the current life and environment situations?
Happy( ) Unhappy( ) Acceptable( )
2. Do you have any knowledge of power generation with Coke Oven Gas?
Yes( ) No( ) not very much( )
3. What positive effects do you think the project will bring to your daily life?
Improving the air quality( ) Increasing the occupational opportunity ( ) Improving the standard of living( )
4. What negative effects do you think the project will being to your daily life?
Noise: Big( ) Small ( ) No( )
Land use: Big( ) Small ( ) No( )
Disturbance to TV/Cell phone:Big( ) Small( ) No( )
5. What do you think about the environmental impacts of the project activity?
Big ( ) Small( ) No( )
6. What do you think about the effects of the project activity to local economic development?
big( ) Small( ) No( )
7. Generally speaking, are you supportive to the construction of the project?
Yes( ) No( ) Indifferent( )
8. Comments and other requirements to the project activity:

30 questionnaires have been sent to local residents and all have been returned. All the returned
questionnaires are valid. Stakeholders for the project include 30 farmers of local villages, at age below 40
years old (more than 30%) and with education level above junior high school.

Table E.1-2 Basic information of stakeholders


Gender Male (19) Female(11)
Age 25 and below(7) 26-40(20) 40 and above(3)
occupation Farmer(30)
Junior high school (19) Senior high school/technical secondary school(9)
Educational level
Junior college and above(2)
Villages Puzitang (10) Zhijiazhuang(12) Guanjiazhuang(8)

E.2. Summary of the comments received:

1. The local government departments have been all supportive to the project because the project is
considered to have benefits on resource saving and sustainable development.
2. The answers to the questions and concerned raised by the attendants of the public meeting are listed
below:
1). About purchasing new agricultural land
According to the feasibility study and the preliminary design, the project area is located inside the
existing Jiuxin Coke Plant. No more new agricultural land will be purchased for the project activity.
2). Impact to the local environment
The local air quality will be improved by the implementation of the project activity. The project will
also help in reducing the global warming by realizing GHG emission reductions.
Noise pollution will also be kept below the national noise permission level by proper design and
control measures.
As zero discharge can be attained, it will not have any adverse impact to the ground and surface water.
3).Occupational opportunities

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Around 50 full-time occupational opportunities will be provided during the operation period of the
project activity.

The open public meeting gave the local residents attending the meeting a god opportunity to
understand the project activity. And finally they showed their unanimous support to the project.

3. The survey results by the questionnaire


The survey results are shown in Table E.2-1.

Table E.2-1 survey results


1. How do you feel with the current life and environment situations?
Happy (13.3%) Unhappy (30%) Acceptable (56.7%)
2. Do you have any knowledge of power generation with Coke Oven Gas?
Yes (13.3%) No( 33.3% ) Not very much(53.3%)
3. What positive effects do you think the project will bring to your daily life?
Improving the air quality (33.3%) Increasing the occupational opportunity (73.3%)
Improving the standard of living (20%)
4. What negative effects do you think the project will being to your daily life?
Noise: Big (20%) Small (66.7%) No (13.3%)
Land use: Big (13.3%) Small (63.3%) No (23.3%)
Disturbance to TV/Cell phone:Big (3.33%) Small (33.3% ) No (63.3% )
5. What do you think about the environmental impacts of the project activity?
Big ( / ) Small ( 90% ) No( 10%)
6. What do you think about the effect of the project activity to local economic development?
big( 86.7% ) Small(13.3% ) No( / )
7. Generally speaking, are you supportive to the construction of the project?
Yes (96.7%) No( / ) Indifferent( 3.3% )
8. Comments and other requirements to the project activity:

All of the investigated people are supportive to the project. Most of them agree that the project will have
no big environmental impacts and will play an important role in local economic development such as
providing occupational opportunities and improving the standard of living. Many of the investigated
people hope the project will be constructed and implemented successfully. Noise pollution has been
considered as the most severe environmental problem.

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

The local government and all residents are all supportive to the project and there are no adverse
comments have been received. Therefore, there is no need to modify the project due to the comments
received.

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Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY

Organization: China Coal and Coke Jiuxin Limited

Street/P.O.Box: Puzitang, Tanzhen village, Lingshi county, Shanxi Province P. R. China

Building:

City: Jinzhong

State/Region: Shanxi province

Postfix/ZIP: 031307

Country: P. R. China

Telephone: 86-354-7915830

FAX: 86-354-7915820

E-Mail: [email protected]

URL: http://www.zmjh.com

Represented by: Wei Youcun

Title: General Manager

Salutation: Mr.

Last Name: Wei

Middle Name:

First Name: Youcun

Department:

Mobile:

Direct FAX: 86-354-7915820

Direct tel: 86-354-7915830

Personal E-Mail: [email protected]

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Organization: Carbon Asset Management Sweden AB

Street/P.O.Box: Drottninggatan 92-94

Building:

City: Stockholm

State/Region:

Postfix/ZIP:

Country: Sweden

Telephone: +46 850688551

FAX: +46 8346080

E-Mail: [email protected]

URL:

Represented by: Niels Von Zweigbergk

Title:

Salutation: Mr.

Last Name: Von Zweigbergk

Middle Name:

First Name: Niels

Department:

Mobile:

Direct FAX: +46 8346080

Direct tel: +46 850688551

Personal E-Mail: [email protected]

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Annex 2

INFORMATION REGARDING PUBLIC FUNDING

There is no public funding from UNFCCC Annex I countries for this project.

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Annex 3
BASELINE INFORMATION

1. The constitution of low-cost/must run resources of total power generation of the North China Power
Grid
Table A3-1 Power generation of the North China Power Grid in 2004
Power Generation (108 kWh)
Provincial Sub-Grids
Hydro Nuclear Other Fuel-fired Sub-total
Beijing 3.47 0 0 185.79 189.26
Tianjin 0 0 0 339.52 339.52
Hebei 5.25 0 0.4 1249.7 1255.35
Shanxi 20.32 0 0 1049.26 1069.58
Inner Mongolia 8.13 0 2.18 804.27 814.58
Shandong 0.41 0 0.16 1639.18 1639.75
Sub-total 37.58 0 2.74 5267.72 5308.04
Proportion of low-cost/must run resources in
0.76%
total grid generations
Data Source: China Electric Power Year Book 2005, page473- 474

Table A3-2 Power generation of the North China Power Grid in 2003
Power Generation (108 kWh)
Provincial Sub-Grids
Hydro Nuclear Other Fuel-fired Sub-total
Beijing 6.79 0 0 186.08 192.87
Tianjin 0.09 0 0 321.91 322
Hebei 5.04 0 0.37 1082.61 1088.02
Shanxi 18.9 0 0 939.62 958.52
Inner Mongolia 6.97 0 1.44 651.06 659.47
Shandong 0.19 0 0 1395.47 1395.65
Sub-total 37.98 0 1.81 4576.75 4616.53
Proportion of low-cost/must run resources in
0.86%
total grid generations
Data Source: China Electric Power Year Book 2004, page708-709

Table A3-3 Power generation of the North China Power Grid in 2002
Power Generation (108 kWh)
Provincial Sub-Grids
Hydro Nuclear Other Fuel-fired Sub-total
Beijing 4.66 0 0 178.86 183.52
Tianjin 0.12 0 0 272.63 272.75
Hebei 4.1 0 0.36 1009.7 1014.16
Shanxi 18.78 0 0 822.56 841.34
Inner Mongolia 6.74 0 1.34 513.82 521.91
Shandong 0.15 0 0 1241.62 1241.77
Sub-total 34.55 0 1.7 4039.19 4075.45
Proportion of low-cost/must run resources in
0.89%
total grid generations
Data Source: China Electric Power Year Book 2003, page 584-585

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Table A3-4 Power generation of the North China Power Grid in 2001
Provincial Sub-Grids Power Generation (108 kWh)
Hydro Nuclear Other Fuel-fired Sub-total
Beijing 2.75 0 0 173.91 176.65
Tianjin 0.09 0 0 221.66 221.75
Hebei 3.12 0 0.17 928.65 931.94
Shanxi 16.8 0 0 694.19 711
Inner Mongolia 6.2 0 1.09 458.21 465.5
Shandong 0.31 0 0 1104.04 1104.35
Sub-total 29.27 0 0 3580.66 3611.19
Proportion of low-cost/must run resources in
0.85%
total grid generations
Data Source: China Electric Power Year Book 2002, page 616-617

Table A3-5 Power generation of the North China Power Grid in 2000
Power Generation (108 kWh)
Provincial Sub-Grids
Hydro Nuclear Other Fuel-fired Sub-total
Beijing 9.47 0 0 179.49 188.96
Tianjin 0.138 0 82 216.21 216.43
Hebei 4.7 0 0.19 839.53 844.42
Shanxi 16.12 0 0 604.75 620.87
Inner Mongolia 5.59 0 0.88 432.75 439.22
Shandong 0.31 0 0 1000.54 1000.85
Sub-total 36.33 0 1.152 3273.27 3310.75
Proportion of low-cost/must run resources in
1.13%
total grid generations
Data Source: China Electric Power Year Book 2001, page 666-667

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2. The calculation of EFOM, of the North China Power Grid

Table A3-6 CO2 emissions of the North China Power Grid in 2002
EFCO2 OXID NCV CO2 emissions (tCO2e)
Inner
Beijing Tianjin Hebei Shanxi Shandong Sub-total K=G*H*I*J*44/12/10000
Mongolia (tc/TJ) (%) (MJ/t,km3)
Fuels Unit (mass unit)
G=A+B+C K=G*H*I*J*44/12/1000
A B C D E F H I J
+D+E+F (volume unit)
Raw coal 104t 691.84 1052.74 4988.01 4037.4 3218 5162.86 19150.84 25.8 98 20908 371208174.5
4
Cleaned coal 10 t 80.71 80.71 25.8 98 26344 1971179.968
4
Other washed coal 10 t 3.43 65.2 135.56 106.32 310.51 25.8 98 8363 2407436.829
4
Coke 10 t 0 29.5 98 28435 0
8 3
Coke oven gas 10 m 0.17 1.71 0.75 0.16 0.04 2.83 13 99.5 16726 224500.0238
8 3
Other coal gas 10 m 15.82 7.34 10.35 33.51 13 99.5 5227 830739.3673
4
Crude oil 10 t 14.98 14.98 20 99 41816 454769.0717
4
Gasoline 10 t 0.65 0.65 18.9 99 43070 19206.87269
4
Diesel 10 t 0.26 2.35 4.12 1.6 10.02 18.35 20.2 99 42652 573896.3513
4
Fuel oil 10 t 13.94 0.04 1.22 0.42 20.33 35.95 21.1 99 41816 1151411.233
4
LPG 10 t 0 17.2 99.5 50179 0
Refinery gas 104t 0.27 0.27 18.2 99.5 46055 8256.698951
8 3
Natural gas 10 m 0.55 0.02 0.57 15.3 99.5 38931 123867.2104
Other Petroleum 4
10 t 0 20 99 38369 0
products
Other coking
104t 0 25.8 98 28435 0
products
4
Other energy 10 tce 1.1 15.92 17.02 0 0 0 0
Total 378973438.1
Data source:
China Energy Statistical Yearbook 2000-2002;
Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories: Workbook, Table 1-2 on page1.6 and table 1-4 on page 1.8, chapter 1.

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Table A3-7 Fuel-fired electricity generation of the North China Power Grid in 2002

Electricity generation Self- consumption rate Electricity supply


Sub-grids
(MWh) (%) (MWh)
Beijing 17886000 7.95 16464063
Tianjin 27263000 7.08 25332779.6
Hebei 100970000 6.72 94184816
Shanxi 82256000 7.98 75691971.2
Inner Mongolia 51382000 7.93 47307407.4
Shandong 124162000 6.79 115731400.2
Total 374712437.4
Data source: China Electric Yearbook 2003

Table A3-8 Simple OM of the North China Power Grid in 2002


Import of power form Northeast China Power Grid (MWh) 2905200
Emission factor of Northeast China Power Grid (tCO2e/MWh) 1.0302474
CO2 emissions of the imported power(tCO2e) 2993074.8
Total CO2 emissions of the North China Power Grid (tCO2e) 381966513
Total electricity supply of the North China Power Grid (MWh) 377617637
Simple OM of the North China Power Grid (tCO2e/MWh) 1.0115166

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Table A3- 9 CO2 emissions of the North China Power Grid in 2003
EFCO2 OXID NCV CO2 emissions (tCO2e)
Inner
Beijing Tianjin Hebei Shanxi Shandong Sub-total K=G*H*I*J*44/12/10000
Mongolia (tc/TJ) (%) (MJ/t,km3)
Fuels Unit (mass unit)
G=A+B+C K=G*H*I*J*44/12/1000
A B C D E F H I J
+D+E+F (volume unit)
4
Raw coal 10 t 714.73 1052.74 5482.64 4528.5 3949.32 6808 22535.94 25.8 98 20908 436822883.4
4
Cleaned coal 10 t 9.41 9.41 25.8 98 26344 229820.3878
4
Other washed coal 10 t 6.31 67.28 208.21 450.9 732.7 25.8 98 8363 5680747.688
4
Coke 10 t 2.8 2.8 29.5 98 28435 84397.73393
8 3
Coke oven gas 10 m 0.24 1.71 0.9 0.21 0.02 3.08 13 99.5 16726 244332.1814
8 3
Other coal gas 10 m 16.92 10.63 10.32 1.56 39.43 13 99.5 5227 977500.8431
4
Crude oil 10 t 29.68 29.68 20 99 41816 901037.7869
Gasoline 104t 0.01 0.01 18.9 99 43070 295.490349
Diesel 104t 0.29 1.35 4 2.91 5.4 13.95 20.2 99 42652 436286.327
Fuel oil 104t 13.95 0.02 1.11 0.65 10.07 25.8 21.1 99 41816 826325.7251
LPG 104t 0 17.2 99.5 50179 0
Refinery gas 104t 0.27 0.83 1.1 18.2 99.5 46055 33638.40313
Natural gas 108m3 0.5 1.08 1.58 15.3 99.5 38931 343351.2148
Other Petroleum 4
10 t
products 0 20 99 38369 0
Other coking 4
10 t
products 0 25.8 98 28435 0
Other energy 104tce 9.83 39.21 49.04 0 0 0 0
Total 446580617.2
Data source:
China Energy Statistical Yearbook 2004;
Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories: Workbook, Table 1-2 on page1.6 and table 1-4 on page 1.8, chapter 1.

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Table A3-10 Fuel-fired electricity generation of the North China Power Grid in 2003
Electricity generation Self- consumption rate Electricity supply
Sub-grids
(MWh) (%) (MWh)
Beijing 18608000 7.52 17208678
Tianjin 32191000 6.79 30005231
Hebei 108261000 6.5 101224035
Shanxi 93962000 7.69 86736322
Inner Mongolia 65106000 7.66 60118880
Shandong 139547000 6.79 130071759
Total 425364906
Data source: China Electric Yearbook 2004

Table A3-11 Simple OM of the North China Power Grid in 2003


Import of power form Northeast China Power Grid (MWh) 4244380
Emission factor of Northeast China Power Grid (tCO2e/MWh) 1.09603
CO2 emissions of the imported power(tCO2e) 4651967.8
Total CO2 emissions of the North China Power Grid (tCO2e) 451232585
Total electricity supply of the North China Power Grid (MWh) 429609286
Simple OM of the North China Power Grid (tCO2e/MWh) 1.0503325

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Table A3-12 CO2 emissions of the North China Power Grid in 2004
EFCO2 OXID NCV CO2 emissions (tCO2e)
Inner
Beijing Tianjin Hebei Shanxi Shandong Sub-total K=G*H*I*J*44/12/10000
Mongolia (tc/TJ) (%) (MJ/t,km3)
Fuels Unit (mass unit)
G=A+B+C K=G*H*I*J*44/12/1000
A B C D E F H I J
+D+E+F (volume unit)
4
Raw coal 10 t 823.09 1410 6299.8 5213.2 4932.2 8550 27228.29 25.8 98 20908 527776527.1
4
Cleaned coal 10 t 40 40 25.8 98 26344 976919.8208
4
Other washed coal 10 t 6.48 101.04 354.17 284.22 745.91 25.8 98 8363 5783167.065
4
Coke 10 t 0.22 0.22 29.5 98 28435 6631.250523
8 3
Coke oven gas 10 m 0.55 0.54 5.32 0.4 8.73 15.54 13 99.5 16726 1232766.915
8 3
Other coal gas 10 m 17.74 24.25 8.2 16.47 1.41 68.07 13 99.5 5227 1687509.064
4
Crude oil 10 t 0 20 99 41816 0
Diesel 104t 0.39 0.84 4.66 5.89 20.2 99 42652 184209.7825
Fuel oil 104t 14.66 0.16 14.82 21.1 99 41816 474656.87
LPG 104t 0 17.2 99.5 50179 0
Refinery gas 104t 0.55 1.42 1.97 18.2 99.5 46055 60243.32197
Natural gas 108m3 0.37 0.19 0.56 15.3 99.5 38931 121694.1015
Other Petroleum 4
10 t
products 0 20 99 38369 0
Other coking 4
10 t
products 0 25.8 98 28435 0
Other energy 104tce 9.41 34.64 109.73 4.48 158.26 0 0 0 0
Total 538304325.3
Data source:
China Energy Statistical Yearbook 2005;
Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories: Workbook, Table 1-2 on page1.6 and table 1-4 on page 1.8, chapter 1.

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Table A3-13 Fuel-fired electricity generation of the North China Power Grid in 2004
Electricity generation Self- consumption rate Electricity supply
Sub-grids
(MWh) (%) (MWh)
Beijing 18579000 7.94 17103827
Tianjin 33952000 6.35 31796048
Hebei 124970000 6.5 116846950
Shanxi 104926000 7.7 96846698
Inner Mongolia 80427000 7.17 74660384
Shandong 163918000 7.32 151919202
Total 489173110
Data source: China Electric Yearbook 2005

Table A3-14 Simple OM of the North China Power Grid in 2004


Import of power form Northeast China Power Grid (MWh) 4514550
Emission factor of Northeast China Power Grid (tCO2e/MWh) 1.22042
CO2 emissions of the imported power(tCO2e) 5509647.1
Total CO2 emissions of the North China Power Grid (tCO2e) 543813972
Total electricity supply of the North China Power Grid (MWh) 493687660
Simple OM of the North China Power Grid (tCO2e/MWh) 1.1015345

( EFOMsimple, 2002 × GEN 2002 + EFOMsimple, 2003 × GEN 2003 + EFOMsimple, 2004 × GEN 2004)
EFOM = =1.0584962 tCO2e/MWh
GENTotal

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2. The calculation of EFBM of the North China Power Grid


Step 1. Calculating the share of CO2 emissions of different fuel-fired power plants in the total CO2 emissions

Table A3-15 The share of CO2 emissions of different fuel-fired power plants in the total CO2 emissions
Inner NCV COEF OXID CO2 emissions
Beijing Tianjin Hebei Shanxi Shandong Total
Mongolia (MJ/t,km3) (tc/TJ) (%) (tCO2e)
Fuels Unit
G=A+B+C
A B C D E F H I J K=G*H*I*J*44/12/100
+D+E+F
Raw coal 104t 823.09 1410.00 6299.80 5213.20 8550.00 4932.20 27228.29 20908 kJ/kg 25.80 0.98 527,776,527
4
Cleaned coal 10 t 0 0 0 0 40.00 0 40 26344 kJ/kg 25.80 0.98 976,920
4
Other washed coal 10 t 6.48 0 101.04 354.17 284.22 0 745.91 8363 kJ/kg 25.80 0.98 5,783,167
Coke 104t 0 0 0 0 0 0.22 0.22 28435 kJ/kg 29.50 0.98 6,631
Sub-total 534,543,245
4
Crude oil 10 t 0 0 0 0 0 0 0 41816 kJ/kg 20.00 0.99 0
4
Gasoline 10 t 0 0 0 0 0 0 0 43070 kJ/kg 18.90 0.99 0
4
Kerosene 10 t 0 0 0 0 0 0 0 43070 kJ/kg 19.60 0.99 0
4
Diesel 10 t 0.39 0.84 4.66 0 0 0 5.89 42652 kJ/kg 20.20 0.99 184,210
4
Fuel oil 10 t 14.66 0 0.16 0 0 0 14.82 41816 kJ/kg 21.10 0.99 474,657
4
Other petroleum products 10 t 0 0 0 0 0 0 0 38369 kJ/kg 20.00 0.99 0
Sub-total 658,867
Natural gas 107m3 0 3.7 0 1.9 0 0 5.6 38931 kJ/m3 15.30 0.995 121,694
7 3 3
Coke oven gas 10 m 5.5 0 5.4 53.2 87.3 4.0 155.4 16726 kJ/m 13.00 0.995 1,232,767
7 3 3
Other coal gas 10 m 177.4 0 242.5 82.0 14.1 164.7 680.7 5227 kJ/m 13.00 0.995 1,687,509
4
LPG 10 t 0 0 0 0 0 0 0 50179 kJ/kg 17.20 0.995 0
4
Refinery gas 10 t 0 0.55 1.42 0 0 0 1.97 46055 kJ/kg 18.20 0.995 60,244
Sub-total 3,102,214
Total 538,304,326

Data source:“ China Energy Statistic Yearbook 2005”

Based on table A3-15 and formula B.7, B.8 and B.9, λCoal =99.30%, λOil =0.12%, λGas =0.58%.

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Step.2. Calculating the Emission Factor of fuel-fired power technology

The best efficiencies and emission factors of the coal, oil and gas fired power technology are listed in Table A3-16
Table A3-16 The best efficiencies and emission factors of the fuel fired technologies
COEFFuel Emission factor
Power supply efficiency OXID
(tc/TJ) (tCO2/MWh)
A B C D=3.6/A/1000*B*C*44/12
Coal-fired power technology 36.53% 25.8 0.98 0.9136
Gas-fired power technology 45.87% 15.3 0.995 0.4381
Oil-fired technology 45.87% 21.1 0.99 0.6011
EFFuel − fired = λCoal × EFCoal , Adv + λOil × EFOil , Adv + λGas × EFGas , Adv =99.30% × 0.9136 + 0.58% × 0.4381 + 0.12% × 0.6011
= 0.9105(tCO2e/MWh)

Step. 3. Calculating the EFBM of the North China Power Grid

Table A3-17 The installed capacity of the North China Power Grid in 2004
Inner
Installed capacity Unit Beijing Tianjin Hebei Shanxi Shandong Total
Mongolia
Fuel-fired power MW 3458.5 6008.5 19932.7 17693.3 13641.5 32860.4 93594.9
Hydro-power MW 1055.9 5 783.8 787.3 567.9 50.8 3250.7
Nuclear power MW 0 0 0 0 0 0 0
Wind power and others MW 0 0 13.5 0 111.8 12.4 137.7
Total MW 4514.4 6013.5 20730 18480.5 14321.2 32923.6 96983.2
Data source: China Electric Power Yearbook 2005

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Table A3-18 The installed capacity of the North China Power Grid in 2002
Inner
Installed capacity Unit Beijing Tianjin Hebei Shanxi Shandong Total
Mongolia
Fuel-fired power MW 3407.5 6245.5 16745.7 14327.8 9778.7 25102.4 75607.6
Hydro-power MW 1038.5 5 775.9 795.3 592.1 50.8 3257.6
Nuclear power MW 0 0 0 0 0 0 0
Wind power and others MW 0 0 13.5 0 76.6 0 90.1
Total MW 4446 6250.5 17535.1 15123.1 10447.4 25153.1 78955.2
Data source: China Electric Power Yearbook 2003

Table A3-19 The installed capacity of the North China Power Grid in 2001
Inner
Installed capacity Unit Beijing Tianjin Hebei Shanxi Shandong Total
Mongolia
Fuel-fired power MW 3412.5 5632 16474.9 13415.8 8898.3 20957.7 68791.3
Hydro-power MW 1058.1 5 742.6 795.9 566.2 56.2 3224
Nuclear power MW 0 0 0 0 0 0 0
Wind power and others MW 0 0 9.9 0 46.7 0 56.6
Total MW 4470.6 5637 17227.4 14211.8 9511.2 21013.9 72071.9
Data source: China Electric Power Yearbook 2002

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Table A3-20 EFBM of the North China Power Grid


Installed capacity The increment of installed
capacity from 2001 to 2004 The Share of increased installed capacity of fuel-fired
2001 2002 2004
power in the whole increased installed capacity
A B C D=C-A
Fuel-fired power(MW) 68791.3 75607.6 93594.9 24803.6 99.57%
Hydro-powe(MW) 3224 3257.6 3250.7 26.7 0.11%
Nuclear power(MW) 0 0 0 0 0.00%
Wind power(MW) 56.6 90.1 137.7 81.1 0.32%
Total(MW) 72071.9 78955.2 96983.2 24911.3 100.00%
As percentage of the installed
74.31% 81.41% 100%
capacity in 2004

Based on the above tables , EFBM=0.9105×99.57%=0.9066 tCO2/MWh.

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Table A3-21 Cash flow (Equity) of the project activity without CDM revenues (in million US dollars)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

1 Cash inflows 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.29
Revenue (saved
1.1 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18
electricity cost)
1.2 Balance of fixed assets

1.3 Collection of liquidity 0.11

2 Cash outflows 3.69 6.12 6.00 4.58 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47

2.1 Equity 3.44 0.11

2.2 Repayment of principal 2.97 3.14 1.92

2.3 Repayment of interest 0.25 0.50 0.32 0.12

2.4 Operating costs 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47

2.5 Operation guarantee fee 1.07 1.07 1.07 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Sales taxe and associate
2.6
charges
2.7 Income tax

3 Net cash flows -3.69 -2.94 -2.81 -1.40 1.71 1.71 1.71 1.71 1.71 1.71 1.71 1.71 1.71 1.71 1.71 1.71 1.71 1.71 1.82
Accumulated net cash
4 -3.69 -6.63 -9.44 -10.84 -9.13 -7.42 -5.70 -3.99 -2.28 -0.56 1.15 2.86 4.58 6.29 8.00 9.72 11.43 13.14 14.97
flows
5 Equity IRR(%) 10.10%

Net present value -1.78

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Table A3-22 Cash flow (Equity) of the project activity with CDM revenues ( in million US dollars)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
1 Cash inflows
3.83 3.83 3.83 3.83 3.83 3.83 3.83 3.83 3.83 3.83 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.29
1.1 Revenue (Saved
3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18
electricity cost)
1.2 Revenue from CDM
0.64 0.64 0.64 0.64 0.64 0.64 0.64 0.64 0.64 0.64
1.3 Balance of fixed assets

1.4 Collection of liquidity


0.11
2 Cash outflows
3.69 6.12 6.00 4.58 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47
2.1 Equity
3.44 0.11
2.2 Repayment of principal
2.97 3.14 1.92
2.3 Repayment of interest
0.25 0.50 0.32 0.12
2.4 Operating costs
1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47
2.5 Operation guarantee fee
1.07 1.07 1.07 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2.6 Income tax

3 Net cash flows


-3.69 -2.30 -2.17 -0.76 2.36 2.36 2.36 2.36 2.36 2.36 2.36 1.71 1.71 1.71 1.71 1.71 1.71 1.71 1.82
4 Accumulated net cash
-3.69 -5.99 -8.16 -8.92 -6.56 -4.21 -1.85 0.51 2.86 5.22 7.57 9.29 11.00 12.71 14.43 16.14 17.85 19.57 21.39
flows
5 Equity IRR (%)
16.04%
Net present value
1.71

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Annex 4
MONOTORING INFORMATION

The monitoring diagram for the project activity is shown in Figure A.4-1.

~G ~G ~G ~G ~G ~G ~G ~G

400V
400V
400V
400V
400V
400V
400V

400V
Auxiliary facilities of
T T T T T T T T the project activity

6K
6K
6K
6K
6K
6K
6K

6K
EM1 EM2 EM3 EM4 EM5 EM6 EM7 EM8 EMAux

Jiuxin Coke Plant

5×500kW generators T Transformer


~G
EM1-8
Electricity meter for total electricity Electricity meter for the auxiliary electricity
EMAux
generated by the project activity consumed by the project activity
Figure A4-1 The monitoring diagram of the project activity

The electricity meters (Model: DSSD666) which are used in the monitoring system of the project activity are manufactured by Zhejiang Zhengtai
Instrument and Device Limited. The accuracy class of the electricity meters is 0.5S.

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