You are on page 1of 86

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. B. C. D. E. General description of project activity Application of a baseline and monitoring methodology Duration of the project activity / crediting period Environmental impacts Stakeholders comments Annexes Annex 1: Contact information on participants in the project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring plan

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 2

SECTION A. General description of project activity A.1 Title of the project activity:

Carbon di-oxide emission reductions by the introduction of Hot Direct Reduction Iron in the Electric Arc Furnaces Version 01; Date: 01/04/2009;

A.2.

Description of the project activity:

The purpose of the project activity is to reduce Green House Gas (i.e. CO2) emission by retaining the heat energy content of Hot DRI, introducing the same with enhanced heat content to EAF and reducing the carbon intensity of the EAF process. In the process of facilitation of the same project participant Essar Steel Limited (ESL) undertakes collection and transportation of the Hot Direct Reduction Iron (Hot DRI) from the Direct Reduction furnaces by a specially designed container and introduces the same (along-with Scrap) into the Electric Arc Furnaces (EAFs) for production of steel. In absence of the project activity, the Hot DRI would have been converted into Hot Briquetted Iron (HBI) in Briquetting Machines, quenched to reduce the temperature of the same and then transported to the EAF site and introduced into the EAFs. In the process, the thermal energy content of the Hot DRI produced would have been wasted. By using Hot DRI as a feedstock in the EAF, additional sensible heat energy (earlier dissipated into the atmosphere) would be made available to the EAF process in the form of raw material with enhanced heat content. By utilising the sensible heat content of the Hot DRI in the EAF process, the heat requirements of the system would reduce, which in turn will reduce the energy consumption of the furnaces. Furthermore the project activity also reduces the electrical energy consumption in the Briquetting Machines which otherwise would have been operational to convert the direct reduce iron into briquettes (i.e. Hot Briquetted Iron (HBI)). Reduction in energy consumption in the EAFs as well as in the Briquetting Machines will reduce the emission of green house gases associated with the generation of the energy. The primary objectives of the project activity are summarized below: Introduction of Hot DRI into the EAFs thereby utilising its sensible heat content Reduction of an equivalent quantum of energy consumption in the EAFs due to increased thermal energy input through pre-heated raw material Reduction of an equivalent quantum of electrical energy consumption in the Briquetting Machines due to reduction of HBI production

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 3

Reduction in green house gas emissions associated to the generation of equivalent energy

Projects contribution to Sustainable Development As a part of the esteemed Essar Group, Essar Steel Limited has been promoting activities with renewed commitments which will improve their social, economic, environmental and technological performances. The project initiative is one such pioneering effort of Essar Steel Limited in the field of energy efficiency in steel manufacturing. It is a welcome initiative of the project participant that leads to sustainable development of the host country. The sustainability aspects of the project activity are described below: Table A-1: Projects Contribution to Sustainable Development Social Well-being The project activity does not require any dislocation of the local population as the same is being implemented in the existing plant premise of Essar Steel Limited. Furthermore the project activity has employed the local people both in the project facilitation phase as well as in the operational phase. The locals have also been employed as drivers to operate trailers for the project activity operation. With this employment generation, the project activity has improved the quality of life of the local people. Technological Well-being The project activity is the first of its kind all over the world. It requires collection and transportation of Hot DRI from the Direct Reduction furnaces and charging the same into the EAFs. The same has been devised by the in-house team of Essar Steel Limited. The project participant has applied for a Patent in the title of A method for the melting of hot direct reduced iron (DRI) in an electric arc furnace for the technology being developed for transportation of hot materials and consequent charging. The technology has a lot of replication potential in the similar sector. Environmental Well-being The project activity results in reduced energy consumption in the EAFs and Briquetting Machines which in turn will lead to a corresponding reduction in energy generation. Indian energy demand is primarily catered with fossil fuels. Therefore reduction in energy generation will lead to reduced fossil fuel consumption and subsequently reduction in green house gas emissions, the primary cause behind global warming. Therefore the project activity is a positive footstep towards mitigation of global warming. Reduction in fossil fuel combustion will also lead to reduction in SOx and NOx emissions, the local air pollutants. Therefore the project activity will also improve the local air quality. Economical Well-being The project activity has generated business opportunities for consultants, vendors, suppliers etc. during

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 4

Table A-1: Projects Contribution to Sustainable Development various stages of its implementation. This has indirectly benefited the local economic structure.

A.3.

Project participants: Name of the Party Private and/or public Kindly indicate if involved entity(ies) the Party involved ((host) indicates a host Project participants (as wishes to be party) applicable) considered as project participant (Yes/No) Ministry of Environment and Forests (MoEF), Government of India (Host) Essar Steel Limited No

A.4.

Technical description of the project activity: A.4.1. Location of the project activity: A.4.1.1. Host Party(ies): India A.4.1.2. Region/State/Province etc.: Gujarat A.4.1.3. City/Town/Community etc: Hazira, District- Surat

A.4.1.4. Detail of physical location, including information allowing the unique identification of this project activity (maximum one page): The project activity is implemented in the existing premise of Essar Steel Limited at Hazira in Surat, Gujarat. The plant is located on the Surat-Hazira road at an approximate distance of 27 km from Surat and at Longitude of 723915E and Latitude of 210613"N. Surat occupies a pivotal position on AhmedabadMumbai corridor and is connected by railway at a distance of 230 km from Ahmedabad, 256 km from Mumbai and 129 km from Vadodara. Arabian sea is only 16 km from the city and Magdalla port is in near vicinity.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 5

A.4.2. Category(ies) of project activity: As per the List of Sectoral Scopes classification as applied to Designated Operational Entities, the recommended category would be (9) Metal Production

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 6

A.4.3. Technology to be employed by the project activity: The project activity is about introduction of hot DRI into EAF in order to reduce carbon intensity in the same. The technology adopted for facilitating the process of this introduction of hot DRI is first of its kind in the world. It has been developed by the in-house team of Essar Steel Limited. The project participant has applied for a Patent in the title of A method for the melting of hot direct reduced iron (DRI) in an electric arc furnace for the technology being devised. The project activity has been facilitated by a proper integration of the following measures under three stages: Stage-I: Tapping of Hot DRI from the Direct Reduction furnaces and feeding into the container Stage-II: Transportation of the container from the Direct Reduction furnaces to the Steel Melt Shop (SMS) Stage-III: Charging of Hot DRI into the Electric Arc Furnaces in the Steel Melt Shop (SMS) Stage-I: Tapping of Hot DRI from the Direct Reduction furnaces and feeding into the container Essar Steel Limited has been operating the worlds largest natural gas based Direct Reduction furnaces. The project activity aims at extraction of Hot DRI at a temperature of around 6750C from the Direct Reduction furnaces and feeding the same into the specially designed containers. In order to facilitate the project activity, a Hot DRI feeding pipe has been designed on the west side of the Direct Reduction furnaces (as shown below) wherefrom the Hot DRI is extracted and directly fed into the container.

HOT DRI TO CONTAINER

REDUCTION FURNACE

HOT DRI CONTAINE R

HOT DRI DISCHARGE FROM PDC TO BRIQUETTING SYSTEM

TRANSPORT VEHICLE

For positioning the feeding pipe on the container, the end piece of the line is being operated pneumatically. A mogas valve and a metallic bellow are added to take care of proper sealing of Hot DRI feeding pipe and expansion of the pipe respectively. For the purging of the container, nitrogen / purge gas is being used. The

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 7

exact quantum of Hot DRI discharged and fed into the containers can be monitored with the help of a software programme. Special operational procedures have been developed to ensure safe transfer. Emergency preparedness plan, with both preventive and corrective measures, has been developed to address the concerns related to emergency situations during transfer. Stage-II: Transportation of the container from the Direct Reduction furnaces to the Steel Melt Shop (SMS) The Hot DRI, extracted from the Direct Reduction furnaces, is required to be transported to the SMS in order to use it as a feedstock for the EAFs. The project participant has therefore designed a proper transportation mechanism which will ensure the transportation of the Hot DRI without any significant heat losses. Under the project activity, the Hot DRI is fed into specially designed containers of 100 MT1 capacities which are transported by road (over a distance of approximately 750m) with locally available trailers with suitable modifications. The containers are designed suitably with proper insulation in order to minimise the heat losses. A maximum temperature drop of 400C is envisaged during the transportation of Hot DRI from the Direct Reduction furnaces to the EAFs. An inert nitrogen atmosphere is maintained within the containers by making the top and bottom gate of the vessel airtight. This will restrict the entrance of ambient air and moisture and avoid subsequent re-oxidation of Hot DRI during the transportation. The following figure shows the feeding of Hot DRI in the containers and the transportation of the containers:

Transportation of containers

Under certain circumstances, the project participant also uses containers of 45 MT capacities.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 8

Stage-III: Charging of Hot DRI into the Electric Arc Furnaces in the Steel Melt Shop (SMS) In the Steel Melt Shop (SMS), the nitrogen hose is first connected to purge nitrogen which ensures an inert atmosphere inside the containers. With completion of preliminary scrap melting within the furnace, the nitrogen hose is disconnected, the container is lifted to the platform level and placed just above the EAF with the help of a crane of 160 tonnes capacity. Soon after the nitrogen hose is re-connected alongwith two compressed air lines (one each for opening and closing) to operate the slide gate and the container is positioned above the Hot DRI feeding chute and the gate is opened. The Hot DRI from the container is then fed into the EAFs through this chute with the roof of the EAFs being closed. The following figure shows the feeding of Hot DRI from the containers into the EAFs in the Steel Melt Shop (SMS).

Upon discharging the Hot DRI, the container is taken out of the furnace and lowered on the saddle mounted on the trailer. The same is then purged with inert gas like nitrogen and returned to the Direct Reduction furnaces where the cycle begins once more. With the implementation of the project activity, the sensible heat content of the Hot DRI is utilised which has resulted in a corresponding reduction in energy consumption of the EAFs. In absence of the project activity, the same energy would have been consumed in the EAFs in order to raise the temperature of HBI. Furthermore the project activity also reduces the electrical energy consumption in the Briquetting Machines with a corresponding reduction in formation of HBI. It will also reduce the electrical energy consumption of the conveying system transporting HBI from Direct Reduction furnaces to EAFs site with a corresponding reduction in HBI quantity in the raw materials mix of the EAFs. Reduced energy consumption in the EAFs, Briquetting Machines and in the conveying system will lead to reduction in equivalent generation of energy primarily with fossil fuels. Therefore the project activity will lead to reduction in greenhouse gas

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 9

emissions from reduced fossil fuel consumption. The project participant is also required to take into account any increase in GHG emissions, which can be attributed to the project activity. This may result from increased fossil fuel consumption by trailers in the transportation of Hot DRI from Direct Reduction furnaces to the EAFs site. Furthermore the project activity will lead to an increase in consumption of nitrogen into the containers of Hot DRI during its transportation. The project participant will therefore account for increase in GHG emissions resulting from production of equivalent quantum of nitrogen. Considering all the aspects of reduced energy consumption in the EAFs, Briquetting Machines and conveying system for HBI transportation as well as increased fossil fuel consumption in Hot DRI transportation and increased nitrogen consumption in the containers of Hot DRI, the project activity will lead to an emission reduction of around 7,35,029 tonnes of CO2 per annum. Therefore over the entire crediting period of 10 years, the project activity will reduce the emissions of 73,50,290 tonnes of CO2. The emission reductions would not have occurred in absence of the project activity and the existing practice of HBI charging at an ambient temperature into the EAFs would have continued with the corresponding loss of sensible heat energy of the direct reduced iron coming out from the Direct Reduction Furnaces.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 10

A.4.4

Estimated amount of emission reductions over the chosen crediting period: Years 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 20162017 20172018 20182019 Annual estimation of emission reductions in tonnes of CO2 e 735029 735029 735029 735029 735029 735029 735029 735029 735029 735029 7350290 10 735029

Total estimated reductions (tonnes of CO2 e) Total number of crediting years Annual average over the crediting period of estimated reductions ((tonnes of CO2 e) A.4.5. Public funding of the project activity:

No public funding from any Annex I country is available to the project activity under consideration.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 11

SECTION B. Application of a baseline and monitoring methodology B.1. Title and reference of the approved baseline and monitoring methodology applied to the project activity: Title of Baseline Methodology: Carbon di-oxide emission reduction through use of raw material(s) input(s) with higher heat energy content in Electric Arc Furnace. Reference of Baseline Methodology: New proposed methodology/Version-01

B.2

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

As per the applicability criteria of the new proposed methodology (titled- Carbon di-oxide emission
reduction through use of raw material(s) input(s) with higher heat energy content in Electric Arc Furnace)/

Version 01, The proposed new methodology would be applicable to project activities, which results in CO2 emission reduction in existing or new Electric Arc Furnace (EAF), that
a. retains the heat energy content of the raw material(s) input(s) by reducing the energy loss from the same and b. introduces that raw material(s) input(s) with enhanced heat content into the Electric Arc Furnace and c. Results in CO2 emission reduction into EAF. The retained heat energy that would otherwise be wasted provides a source of energy input to the EAF and thereby substitutes an equivalent quantum of energy which otherwise needs to be supplied to the EAF process. The same (equivalent quantum of energy that is being retained and used in EAF process due to the project activity) may either be sourced from electrical energy source(s) or chemical energy source (s) or a mix of both energy sources within the EAF.

The project activity under consideration would lead to GHG (i.e. CO2) emission reduction in existing EAF of Essar Steel Limited, Hazira. Under the project activity instead of charging HBI to EAF (wherein the sensible heat energy of hot DRI is lost through briquetting), project participant has introduced a specially

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 12

designed vehicle based transportation mechanism which would retain the heat energy content of the DRI for transporting the same from Direct Reduction Furnace to the EAF. In the pre-project scenario due to the HBI process and subsequent water quenching, this retained heat energy use was wasted and equivalent quantum of energy was required to be supplied to the EAF. It used to be generated through electric arcing as well as through combustion of coal or coke. So the project activity would result in reduction of CO2 emission corresponding to that quantum of heat energy which would be retained in hot DRI under the project activity.

The additional energy introduced in to the EAF under the project activities would have been wasted in absence of the project activity
In absence of project activity project participant would have continue the existing practice in which the hot DRI is converted in to HBI and then it is quenched in the quenching tank where it would lose the heat energy. Therefore the additional energy introduced into the EAF under the project activity would have been wasted in absence of the project activity.

There would be no augmentation in the rated capacity of the EAF under consideration due to project activity(s)
The project activity does not lead to any increase in heat-wise rated production capacity of the Electric Arc Furnaces.

There would be similar kind of output from the EAF under consideration both in base case and project case The project activity does not lead to any change in the EAF output. The existing Electric Arc Furnaces produce similar furnace output i.e. liquid steel both in the project case and baseline. The electricity consumed in the EAF both in project case and in base case is either sourced from the grid and/or onsite captive electricity generation system. In case of electricity consumption from the grid (for EAF operation), the geographic and the system boundaries for the relevant grid can be clearly identified and information on the characteristic of the grid is available

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 13

The electricity required for the operation of the Electric Arc Furnaces in Essar Steel Limited is sourced from Gujarat Electricity Board (GEB) which is a part of the Western Regional Grid2. The information related to power generation in Western Regional Grid is made available by Central Electricity Authority (CEA), Government of Indian on an annual basis. The methodology is applicable to those project activity(s) which are Associated with existing EAF in case of non retrievable baseline scenario. In this case project participants need to substantiate that the of raw material and the EAF output would not be affected due to the project activity(s) and remain unchanged over the pre-defined range of entire crediting period. Associated with new or existing EAF in case of retrievable baseline scenario. In this case the baseline scenario can be retrieved by eliminating the measure being adopted under the project activity during the crediting period

The project activity entails introduction of Hot Direct Reduction Iron (Hot DRI) in the existing Electric Arc Furnaces of Essar Steel Limited. The baseline scenario for the project activity is identified as the Continuation of the existing practice i.e. Continued use of the installed furnace technology and process3. The baseline scenario for the project activity can be retrieved even after the implementation of the project activity by introduction of only Hot Briquetted Iron (HBI) along-with Scrap in Electric Arc Furnaces. Therefore the proposed methodology may be applicable for the project activity under discussion. In case where the equipments involved in raw material processing and the EAF both does not belong to a single project participant, CER credits should be claimed as per the official agreement among the parties involved. Since both the material processing units and the EAF bong to Essar Steel Limited (ESL), the CER credits would be claimed solely by ESL.

Indian power grid system (or the National Grid) is divided into five regional grids namely Northern, North Eastern, Eastern, Southern and Western Regional Grids.
3

Please refer to Section-B.4 of the Project Design Document for further details on selection of baseline scenario for the project activity under consideration.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 14

If the project activity is implemented in a number of Electric Arc Furnaces, as part of a program, the methodology is applicable to the program as a whole. However all of the requirements (baseline determination, additionality, etc.) shall be applied to and should be fulfilled by each individual Electric Arc Furnace covered under the program. In the first phase project activity is implemented in one EAF. With this background the baseline and addionality has been established for that EAF only as in the methodology application PDD. This methodology is only applicable if the procedure to identify the baseline scenario results that the pre-project scenario is being the most plausible baseline scenario in case of non retrievable baseline scenario. The baseline scenario is the continuation of existing practice (i.e. pre-project scenario), and it would be retrieved during the crediting period for baseline emission computation.

From the above explanation, it is established that the project activity under consideration meets all the applicability conditions of the new proposed methodology/ Version-01 Carbon di-oxide emission reduction through use of raw material(s) input(s) with higher heat energy content in Electric Arc Furnace. This justifies the appropriateness of the choice of the methodology in view of the above project activity.

B.3.

Description of the sources and gases included in the project boundary

As per the new proposed methodology (name- Carbon di-oxide emission reduction through use of raw material(s) input(s) with higher heat energy content in Electric Arc Furnace)/Version 01, the project boundary would cover the following: The physical structure of the Electric Arc Furnace The electricity source (grid /onsite captive power generation system)

The spatial extent of the grid is as per the Approved Consolidated Baseline Methodology ACM0002/version 6: Consolidated baseline methodology for grid connected electricity generation from renewable sources.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 15

In accordance with the above guidance, the project boundary for the project activity will include: The Electric Arc Furnaces of Essar Steel Limited where the Hot Direct Reduction Iron (Hot DRI) will be introduced. This will include all the raw material inputs (like Hot Direct Reduction Iron (Hot DRI), Hot Briquetted Iron (HBI), Scrap), the flux materials, the reductants and the electrodes which will be introduced into the Electric Arc Furnaces. The Western Regional Grid (comprising of all the power plants connected to it) wherefrom the electrical energy of the Electric Arc Furnaces will be sourced

Electrode

Reductants

Electrical energy source

Raw material: Scrap Hot DRI Hot Briquetted Iron

Electric Arc Furnace

Out-put (steel)

Project boundar y

In line with the guidance of the new proposed methodology (title- Carbon di-oxide emission reduction through use of raw material(s) input(s) with higher heat energy content in Electric Arc Furnace) /Version 01, the project participant has identified the following GHG emission sources within the project boundary:

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 16

Table-B.1: Overview on emission sources included in or excluded from the project boundary Source Gas Included Justification/ Explanation Emissions from CO2 Included Only CO2 emissions associated with the electricity consumption of consumption of the Electric Arc Furnace are electrical considered. energy CH4 Excluded Excluded for simplification. This is conservative. N2O Excluded Excluded for simplification. This is conservative. Emissions from CO2 Included Only CO2 emissions from consumption of elemental the carbon contained in the reductants are considered. consumption of Although some part of the carbon will end up in the reductants end product it is assumed that 100% will be emitted to the air via the exhaust gases CH4 Excluded No CH4 emissions. N2O Excluded N2O emissions are excluded for simplification.6 Emissions from CO2 Included Only CO2 emissions from consumption of elemental the carbon contained in the electrode are considered. consumption of CH4 Excluded No CH4 emissions. electrode N2O Excluded N2O emissions are excluded for simplification.3 Emissions from CO2 Included Only CO2 emissions associated with the electricity consumption of consumption of the Electric Arc Furnace is considered. electrical CH4 Excluded Excluded for simplification. energy N2O Excluded Excluded for simplification. Emissions from CO2 Included Only CO2 emissions from consumption of elemental the carbon contained in the reductants are considered. consumption of Reductants consumption is monitored during the reductants project. Although some part of the carbon will end up in the end product it is assumed that 100% will be emitted to the air via the exhaust gases. CH4 Excluded No CH4 emissions. N2O Excluded N2O emissions are excluded for simplification.3 Emissions from CO2 Included Only CO2 emissions from consumption of elemental the carbon contained in the electrode are considered consumption of CH4 Excluded No CH4 emissions. electrode N2O Excluded N2O emissions are excluded for simplification.3

Project Activity

Baseline

N2O emissions are excluded for simplification.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 17

B.4. Description of how the baseline scenario is identified and description of the identified baseline scenario: In accordance with the guidance of the new proposed methodology (titled- Carbon di-oxide emission reduction through use of raw material(s) input(s) with higher heat energy content in Electric Arc Furnace )/Version 01, the baseline scenario for the project activity has been identified through the following steps:

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 18

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 19

Step 1:Identification of all alternative scenarios to the proposed CDM project activity consistent with current laws and regulations Sub-step 1a: define alternative scenarios to the proposed CDM project activity The project participant has identified all the alternatives available to the project activity which will produce steel in Electric Arc Furnaces (EAFs). The same is presented below:

Table-B.2: Identification of Alternatives to the project activity Sl. No. Alternative-1 Alternative Description of Alternative

Continuation of the In absence of the project activity, Essar Steel Limited could have existing practice i.e. continued the production of steel in Electric Arc Furnaces (EAFs) Continued use of with Hot Briquetted Iron (HBI) and Scrap as the primary feedstock. installed technology process furnace Under such circumstance, the Hot DRI would have been converted and into Hot Briquetted Iron (HBI) in Briquetting Machines, quenched to reduce the temperature of the same and then transported to the EAFs site and introduced into the EAFs. In the process, the thermal energy content of the Hot DRI produced would have been wasted.

Alternative-2

The project activity Essar Steel Limited could also have collected the Hot DRI from not implemented as Direct Reduction furnaces, transported them by road in a specially a CDM project designed container upto the Electric Arc Furnaces (EAFs) site in order to use it as a feedstock for steel making in EAFs. This alternative would enable the project participant to utilise the thermal energy content of Hot DRI which in turn would have reduced the energy consumption in the EAFs.

Alternative-3

Pre-heating of Hot In absence of the project activity, Essar Steel Limited could have Briquetted Iron transported the Hot Briquetted Iron (HBI) to the Electric Arc

(HBI) with alternate Furnaces (EAFs) site and pre-heated it with alternate heat sources heat sources and (like fossil fuels or waste heat content of the process waste gases) the and then introduced it into the EAFs. This would have resulted in reduction of energy consumption of the EAFs. However, under such circumstance, the thermal energy content of the Hot DRI produced

introducing same to EAF

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 20

Table-B.2: Identification of Alternatives to the project activity Sl. No. Alternative Description of Alternative would have been wasted in the quenching process while converting it into HBI. Alternative-4 Introduction of Hot In absence of the project activity, Essar Steel Limited could have DRI into the EAFs collected the Hot DRI from Direct Reduction furnaces and with provision for pneumatically conveyed the same to the Electric Arc Furnaces pneumatic conveying system (EAFs) site in order to use it as a feedstock for steel making in EAFs. This alternative would enable the project participant to utilise the thermal energy content of the Hot DRI which in turn would have reduced the energy consumption in the EAFs.

Sub-step 1b: enforcement of applicable laws and regulations In accordance with the guidance of this new proposed methodology (name- Carbon di-oxide emission reduction through use of raw material(s) input(s) with higher heat energy content in Electric Arc Furnace) /Version 01, the project participant is required to evaluate all the alternatives with regards to legal and regulatory requirements prevailing in the host country-India. However the project participant would not have faced any legal or regulatory impediments in implementing any one of the above mentioned alternatives. Step 2: barrier analysis to eliminate baseline scenario alternatives that face prohibitive barriers Sub-step 2a: identify barriers that would prevent the implementation of the alternatives and Sub-step 2b: show which alternative are prevented by the identified barriers

The project participant is now required to identify the barriers that may prevent the implementation of the alternatives available to the project activity. Evaluation of these alternatives with respect to the barriers being faced by them is elaborated below:

Table-B.3: Evaluation of Alternatives with respect to preventive barriers Sl. No. Description Conclusion

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 21

Table-B.3: Evaluation of Alternatives with respect to preventive barriers Sl. No. Alternative-1: Description Conclusion

This would not have required any modification in the existing This alternative is

Continuation of the steel manufacturing system of Essar Steel Limited. The project considered further existing practice participant would not have faced any barrier in continuing their for arriving at the

i.e. Continued use existing practice of steel manufacturing with HBI as the baseline scenario. of installed furnace primary feedstock in the EAFs. technology process Alternative-2: The This would require a system modification in order to facilitate This alternative is project activity not the introduction of Hot DRI in EAFs. It is exposed to the excluded implemented as a barriers related to the project activity i.e. barriers related to further CDM project design of a proper collection, transportation and feeding consideration. mechanism and the safety related risks involved with the adaptation of the new technology and its outcomes. All these barriers are detailed in Section-B.5 of the Project Design Document. Hence without the CDM revenue, this alternative is not a feasible option for Essar Steel Limited to adopt. from and

Alternative-3: Pre- This would require certain system modifications in order to This alternative is heating Briquetted (HBI) alternate sources of Hot facilitate the pre-heating of HBI. Moreover pre-heating of HBI excluded Iron would lead to re-oxidation which would have a direct impact on further with the metallization of HBI and hence on the final output i.e. steel. consideration. heat Therefore, this alternative is not a technically feasible option for Essar Steel Limited to adopt in absence of the project activity. Alternative-4: This would require a system modification in order to facilitate This alternative is from from

Introduction of Hot the introduction of Hot DRI into the EAFs. While an alternate excluded DRI into the EAFs to road transport is conveyor, however transport of such hot further with provision for materials cannot be undertaken with Belt Conveyors and Pan consideration.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 22

Table-B.3: Evaluation of Alternatives with respect to preventive barriers Sl. No. pneumatic conveying system Description Conveyors, over a long distance on account of associated fire hazards. It may be noted Hot DRI can be conveyed pneumatically only over a maximum distance of around 100m. For Essar Steel Limited, the distance between the Direct Reduction furnaces and the EAFs in the Steel Melt Shop is around 750m. Therefore considering the existing layout of the plant, this alternative option is not a feasible option for the project participant to adopt. Conclusion

The above analysis clearly demonstrates that Alternative-1 is the only option available with Essar Steel Limited in absence of the project activity which would not have faced any preventive barrier. Therefore following the guidance of the new proposed methodology (Titled- Carbon di-oxide emission reduction through use of raw material(s) input(s) with higher heat energy content in Electric Arc Furnace)/Version 01, Alternative-1: Continuation of the existing practice i.e. Continued use of installed furnace technology and process is considered as the baseline scenario for the project activity under consideration.

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): >> As per the decision 17/cp.7 para 43, a CDM project activity is additional if anthropogenic emissions of greenhouse gases by sources are reduced below those that would have occurred in absence of the registered CDM project activity. The new proposed methodology (titled- Carbon di-oxide emission reduction through use of raw material(s) input(s) with higher heat energy content in Electric Arc Furnace )/Version 01 requires the project participant to determine its additionality based on the latest version of the Tool for the demonstration and assessment of additionality, agreed by the CDM Executive Board. The flowchart presented in below provides a step-by-step approach to establishing additionality of the project activity:

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 23

Step 1- Identification of alternatives to the project activity consistent with current laws and regulations In Sub-step 1a (Define alternatives to the project activity) and Sub-step 1b (Consistency with mandatory laws and regulations), Essar Steel Limited is required to identify the realistic and credible alternative(s) that will provide output or services comparable with the project activity. These alternatives are required to be in compliance with all applicable legal and regulatory requirements. The identification of alternatives for production of steel in Electric Arc Furnaces (EAFs) as well as their compliance with the current laws and regulations has been dealt in details in Section-B.4 of the Project Design Document. All the alternatives (Alternative-1, Alternative-2, Alternative-3, Alternative-4 and Alternative-5) are in line with the current laws and regulations those are enforced in the host country-India. Therefore Essar Steel Limited could have implemented either of these alternatives without facing any legal

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 24

and regulatory impediments. However Alternative-3, Alternative-4 and Alternative-5 would not be feasible for the project participant due to the barriers involved with their implementation. Furthermore implementation of Alternative-2 would require higher investments as compared to Alternative-1 and is therefore not an economical proposition for the project participant. Therefore Alternaive-1: Continuation

of the current situation i.e. Continued use of installed furnace technology and process is found to be the most techno-economically feasible option for the project participant and hence the baseline scenario for the project activity under consideration.
The project participant is further required to conduct Step 2. Investment analysis OR Step 3. Barrier analysis.

Essar Steel Limited proceeds to establish the project activity additionality by conducting Step 3: Barrier Analysis. The project participant is required to determine whether the project activity faces barriers that: (a) Prevent the implementation of this type of proposed project activity; and (b) Do not prevent the implementation of at least one of the alternatives. All the barriers that prevail for the project activity are detailed in Sub-step 3a.

Sub-step 3a. Identify barriers that would prevent the implementation of the proposed CDM project activity The project activity entails introduction of Hot DRI into the EAFs in order to utilise its sensible heat content. It is facilitated by

Tapping of Hot DRI from the Direct Reduction furnaces and feeding into the container Transportation of the container from the Direct Reduction furnaces to the Steel Melt Shop (SMS) Charging of Hot DRI into the Electric Arc Furnaces in the Steel Melt Shop (SMS)

The initiative undertaken by Essar Steel Limited is the first of its kind in the world. Several barriers involved with the implementation of the project activity have prevented the steel manufacturers from adopting a similar measure. All these barriers are detailed below: Operational barriers related to the collection of Hot DRI

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 25

The project activity is facilitated by the collection of Hot DRI from the Direct Reduction furnaces. This is carried out by introducing a Hot DRI feeding line on the west side of the furnaces. The Hot DRI feeding line is required to be designed in such a way that it remains free from fines. An imperfect design would result in sticking of fines thereby hampering the flow of Hot DRI. Considering all these intricate design features associated with the implementation of the project activity, the project participant is required to undertake certain structural modifications in the existing furnaces. An extensive study is conducted by the in-house technical team of Essar Steel Limited for evaluating the technical feasibility of the project activity. The technical study included the operational characteristics of all the furnaces individually. All these studies are aimed at facilitation of the project activity with minimum impact on the furnace operation. The feasibility study also included a detailed engineering work plan in order to implement the project activity. The outcomes of the feasibility study indicated that the structural modifications in the Direct Reduction furnaces would lead to substantial furnace downtime hours which in turn would result in significant production losses. Furthermore the in-house technical team of Essar Steel Limited does not have any such prior exposure for facilitation of the project activity. The risk associated with the implementation of the project activity is enhanced due to such lack of experience. Any imperfect design modification of the furnaces has the potential to adversely impact the furnace operation and hence the productivity of the furnaces. Neither did Essar Steel Limited have any prior exposure in Hot DRI vessel designs. The initial designs failed however there were persistent attempts to overcome the limitations. For e.g., In the initial design, only the top slide gates were spring loaded. However there were ample incidents of vessel jamming due to probability of air ingression during collection of Hot DRI. In the revised Hot DRI vessel designs, spring loading has been introduced in bottom slide gates too. In the initial design, the bottom slide gate opening was kept 250mm. This was reducing the vessel discharge. Therefore the bottom slide gate opening has been increased to 280mm to increase the vessel discharge and facilitate lesser handling time. In the initial design, there were two trunions. During STC route entry trials, the cranes used to find it difficult to lift because of tong orientation. The vessels have been redesigned with four trunnions. However the project participant decided to undertake all these risks and has strived forward in this direction with renewed commitment in order to implement the project activity and to achieve the desired level of reduction in energy consumption in the EAFs. Operational barriers related to the transportation of Hot DRI The Hot DRI, collected from the Direct Reduction furnaces, is required to be transported to the EAFs site in the Steel Melt Shop (SMS) which is approximately at a distance of 750m from the Direct Reduction

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 26

furnaces. Transportation of Hot DRI over this distance itself is a barrier to the project activity. Such transportation of Hot DRI is exposed to the possibilities of leakages and heat losses. In case of any leakages, the Hot DRI will come in direct contact with the air resulting in explosive reactions due to reoxidation of Hot DRI. Furthermore with such air entrance into the container, there will be a negative impact on the metallization of the Hot DRI. This will adversely impact the quality of steel produced in the EAFs. In case of heat losses from the container, the project activity will not lead to the desired level of reduction in energy consumption in the EAFs. Apart from the possibility of leakages and heat losses, the transportation of the containers over the trailers is also a risky proposition from the consideration of occupational health and safety aspects within the plant premise. The trailers are transported through private roads and at only one point the Hot DRI trailers are crossing the public road while transporting Hot DRI to Steel Melt Shop. In case the containers are tilted, there are possibilities of spillages which will have a negative impact, however adequate safety precautions are being taken while transporting. The in-house team of Essar Steel Limited has experimented a lot in order to devise a proper transportation mechanism which would prevent leakages and minimise heat losses and overcome the technical difficulties related to the designing of a proper transportation mechanism. They have designed containers of different capacities (10 tonnes and 45 tonnes) in order to optimise the feeding of Hot DRI into the EAFs. The available KAMAG transport vehicles are utilized to transport the containers during the first trial phase. During subsequent developments, the container has been redesigned to increase its capacity to 100 tonnes net weight and the KAMAG transport vehicle has been replaced with locally available trailers with suitable modifications. The project participant has constantly put their efforts in improving the quality of the transportation mechanism. In order to prevent the heat losses, the containers are provided with castable insulation. This is ensured by providing double walls of the containers. The outside wall is made up of Mild Steel and the inside wall is constructed with stainless steel. In order to avoid tilting of containers over the trailers, the CG (centre of gravity) of the containers is designed suitably. All these technical innovations in designing of a suitable mechanism for the transportation of Hot DRI required a lot of research and development (R&D) activities to be performed by the in-house team of Essar Steel Limited. In spite of having limited technical background for designing such a transportation mechanism which will ensure safety as well as optimise the project objective, the project participant continued to move forward in order to successfully implement the project activity. Operational barriers related to the charging of Hot DRI in the EAFs The Hot DRI, transported from the Direct Reduction furnaces, is required to be introduced into the EAFs immediately in order to avoid any further heat losses. Under circumstances wherein there is an operational

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 27

problem in the EAFs, the Hot DRI can not be charged at once. In case of such delayed use of Hot DRI, there is a possibility of clustering of the small sponge iron units. This will hamper the material flow. Under such circumstance, the material will require to be discharged in order to avoid clustering. Specific spaces within the plant premise are required to be designated for such discharging. However in the event of such discharging, the Hot DRI will be re-oxidised and it will be required to introduce it again into the Direct Reduction furnaces to achieve the desired metallization. This will lead to production losses and subsequently financial losses. Since Essar Steel Limited had no prior exposure in project activity and there was no external assistance available, there have been design failures. The static load cells adopted on the furnaces for weighing Hot DRI had operational limitations (it was time consuming and logistic driven). To avoid the same, Hot DRI weighbridge systems have been devised on the transportation route. Other barrier(s) - Managerial resources barrier The project activity primarily entails building of an infrastructure to deal with the collection, transportation and charging of Hot DRI, which in contact with air, would result in explosive reactions due to re-oxidation. The initiative undertaken by Essar Steel Limited is the first of its kind in the world. Several operational barriers involved with the implementation of the project activity, as discussed above, have prevented other steel manufacturers in the world from adopting a similar measure. Therefore the employees of the steel plant do not have any prior experience in successful operation of the newly developed system. Any imperfect operations either during collection or transportation or charging of Hot DRI will not only affect their performance in future but will also cause a significant amount of production losses and associated financial losses. Thus this barrier has the potential to hamper the successful implementation of the project activity. Realising the significance of this matter, the authority of Essar Steel Limited is continuously trying to improve the skill of their personnel in the field of Hot DRI charging through some informal training programmes and discussion forums. The employees of Essar Steel Limited will also need to put in their consistent efforts towards developing their in-house capabilities in order to successfully implement the project activity.

Sub-step 3 b. Show that the identified barriers would not prevent the implementation of at least one of the alternatives (except the proposed project activity): It has been observed in Sub-step 3a that the project activity has its associated barriers to successful implementation. In a broader sense, these barriers can be categorised as below: Operational barrier related to collection, transportation and charging of Hot DRI Managerial Resources barrier

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 28

The baseline scenario i.e. Alternative-1: Continuation of the current situation i.e. Continued use of installed furnace technology and process has been evaluated with respect to the above barriers. So far as operational barriers are concerned, the project participant would not be required to make any structural modifications in the existing Direct Reduction furnaces with Alternative-1 in place. There would not be any requirement for designing a suitable transportation mechanism as the HBI would have been conveyed in the existing conveyor only. Furthermore, with Alternative-1 in place, the project participant would not have faced any barriers with the charging of the HBI into the EAFs. Therefore the operational barriers, associated with the project activity, are not applicable for Alternative-1. Moreover in case of continuation of the current situation (i.e. Alternative-1), the project participant would not be exposed to the risks associated with lack of experiences of its employees since they have already developed their expertise in the field of steel making by introducing HBI into the EAFs. From the above discussion it is established that the project activity related barriers (as explained above in Sub-step 3.a), do not exist for Alternative-1: Continuation of the current situation i.e. Continued use of installed furnace technology and process so as to prevent its wide spread implementation.

Step 4. Common practice analysis The project participant is further required to conduct the common practice analysis as a credibility check to complement the barrier analysis (Step 3). The project participant is required to identify and discuss the existing common practice through the following sub-steps: Sub-step 4a. Analyze other activities similar to the proposed project activity: Sub-step 4b. Discuss any similar options that are occurring: The common practice scenario discussed below further substantiates the fact that the project activity faces barriers to implementation and is therefore not a widespread proposition for steel manufacturing sectors under similar socio-economic environment in India. The project initiative, undertaken by Essar Steel Limited, is the first of its kind in the world. The project participant has already applied for a Patent in the titleof A method for the melting of hot direct reduced iron (DRI) in an electric arc furnace for the technology being developed for transportation of hot materials and consequent charging. The common practice scenario demonstrates that there is a poor penetration of the technology in the steel sector which can be attributed to the various barriers associated with the project activity implementation. Before the implementation of the project activity, the in-house technical team of Essar Steel Limited considered all the aspects of the project activity implementation. The initiative being the first of its kind in

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 29

the world, they could realize the complexities involved with the implementation of the project activity. The technical study primarily focused at the operational barriers related to collection, transportation and charging of Hot DRI. Furthermore, lack of expertise of the steel plant personnel itself is a major barrier for implementing such innovative operational features in the existing steel manufacturing circuit. However the technical team could also realize that the project activity has a potential to avail carbon credit under the Kyoto Protocol-CDM Mechanism. The technical feasibility study report was submitted to the Management of Essar Steel Limited for their consideration. The Management considered all the risks (operational and financial) associated with the implementation of the project activity. They also understood that a lot of research and development activities would require to be carried out on a continuous basis for conceptualization of the project activity as well as for improving the entire mechanism of Hot DRI collection, transportation and charging. They also considered the potential revenue that the project activity can avail through the CDM Mechanism. Considering all these aspects of the project activity, the Management of Essar Steel Limited finally took the decision for taking the project activity related risks and to invest in the project activity after computing the proposed carbon financing. The corporate decision to take the operational risks invest in overcoming the barriers facing project activity implementation and operation invest in additional transaction costs such as preparing documents, supporting CDM initiatives and developing and maintaining Monitoring methodology to fulfil CDM requirements is guided by the anthropogenic greenhouse gas emission reductions the project activity would result in and its associated carbon financing the project activity would receive through sale of CERs. In spite of having no precedence or technical expertise in this area worldwide, Essar Steel Limited took this initiative under CDM and focussed on the design of a suitable mechanism for collection, transportation and charging of Hot DRI. Registering the project activity under CDM would allow Essar Steel Limited to cover the associated risks and hence make the project activity successful. CDM fund will also provide additional coverage to the risk due to failure of project activity, shut down of plant, loss of production etc. The above steps have established that the initiative taken by Essar Steel Limited is additional and the anthropogenic emissions of GHG by sources will be reduced below those that would have occurred in absence of the registered CDM project activity. Furthermore, successful implementation of the project activity would also act as a precursor for easier fund tie-up for other similar industries willing to invest in Hot DRI charging projects, leading to further reduction in global anthropogenic GHG emissions.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 30

B.6.

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

As per the selection of the baseline scenario conducted in Section B.4 of this PDD, Alternative-1: Continuation of the current situation i.e. Continued use of installed furnace technology and process is found to be the baseline scenario. The emission reductions resulting from the project activity will be computed as a difference between the baseline emissions, the project emissions and the leakage emissions. The following section gives a step-wise approach for the computation of baseline emissions, project emissions, leakage emissions and hence the emission reductions.

Computation of Baseline Emissions The baseline emission will be computed ex-post as given below:

BE y =
m =1 h =1

12

i =1

BEFi ,m, y Qraw material( s ),i ,h ,m, y

(1)

Where: BEy BEFi,m,y Baseline Emissions in the year y (tCO2/annum) Monthly Baseline Emission Factor corresponding to the ithcategory of the raw material(s) mix introduced into the EAF in the month m of the year y (tCO2/ton of raw material(s) mix) Qraw material(s),i,h,m,y Quantity of ith raw material(s) mix introduced into the EAF in the hth heat

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 31

of the month m of the year y (ton of raw material(s) mix/month) This value is used in both the baseline and the project emission calculations. H i Total number of heats in the month m of the year y (h=1,2,3,.H) Category of raw material(s) mix introduced into the EAF (i=1,2,3.n) [The range of the raw material mix in the category i to be determined as per guidance provided below in Table-B.5] n m y Total number of categories of the raw material(s) mix introduced into the EAF Specific month in the year y Any year within the proposed crediting period of the project activity.

The crediting period has been decided as per guidance provided by the new proposed methodology (nameCarbon di-oxide emission reduction through use of raw material(s) input(s) with higher heat energy content in Electric Arc Furnace) /ver-01. The typical average technical lifetime of the Electric Arc Furnaces of Essar Steel Limited and the existing equipment replaced under the project activity have been determined based on the technical literature supplied by the manufacturers. The remaining lifetime of the Electric Arc Furnaces has been found to be more than the duration of the fixed crediting period i.e. 10years. Therefore the project proponent will claim for emission reduction credits for a fixed crediting period of 10 years.

Determination of BEFi,m,y The monthly baseline emission factor will be computed based on the following emission sources: Specific on-site baseline emissions from consumption of reductant(s) (coal/coke) Specific on-site baseline emissions from consumption of electrode and Specific off-site baseline emissions from consumption of electrical energy

Consumption of reductant(s), electrode and electrical energy will depend on raw material(s) mix introduced into the EAF. Therefore the Baseline Emission Factor will be determined as a function of the consumption of reductant(s), electrode and electrical energy corresponding to each category of the raw material(s) mix defined as per the guidance provided in Table-B.5 below:

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 32

Table-B.5: Guidance for setting up Category of raw material(s) mix The Category i raw material(s) mix will be defined as the range of share of individual raw materials in the raw materials mix of the EAF such that the Baseline Emission Factor (BEFi,m,y,) over that range does not vary significantly (maximum permissible variation of +10%). The same will be determined as per the following steps: Step-1: Determine categories based on share of individual raw material(s) in the raw materials mix project activity operational data on ranges of individual raw material(s) (i.e. HBI, Hot DRI and Scrap) in the raw materials mix will be used for such categorization. It is to be noted that the quantum of Hot DRI in the raw materials mix in the project scenario will be substituted by HBI in the baseline scenario. Step-2: Calculate the Baseline Emission Factor (BEFi,m,y) for each of the categories identified in Step1 above. At least three trial runs (heats) will be conducted monthly on an ex-post with the upper limit, lower limit and the mean values of individual raw material(s) in that category. For e.g., if the raw materials mix consists of (0-10)% of Scrap, then trial runs will be conducted for - 0% of Scrap and 100% of HBI in the raw materials mix - 5% of Scrap and 95% of HBI in the raw materials mix - 10% of Scrap and 90% of HBI in the raw materials mix The total quantity of raw materials mix and the consumption of reductant(s), electrode and electrical energy for these trial runs (heats) will be recorded. The Baseline Emission Factors (BEFi,m,y) for the above trial runs (heats) will be determined as per Equation (2) provided below. Step-3: Authenticate the selection of categories- The categorization will be authenticated if the Baseline Emission Factor (BEFi,m,y) for the three trial runs (heats), as determined above in Step-2, does not vary by more than +10% . The project participant will require substantiating the choice of the range of the categories to the DOE at the time of Validation. If the Baseline Emission Factor (BEFi,m,y) is found to vary by more than the maximum permissible limit of +10% over that range of the category defined by the project participant at the time of Validation, then the ranges will be redefined in order to reduce the variance in the data within the prescribed limit (i.e. +10%).

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 33

The Baseline Emission factor (BEFi,m,y) will be computed as,

BEFi , m , y = BEFon - site ,i ,m , y + BEFoff - site ,i ,m , y


Where: BEFi,m,y

(2)

Monthly Baseline Emission Factor corresponding to the ithcategory of the raw material(s) mix introduced into the EAF in the month m of the year y (tCO2/ton of raw material(s) mix)

BEFon-site,i,m,y

Monthly on-site baseline emission factor for consumption of reductant(s) and electrode corresponding to the ith category of raw material(s) mix introduced into the EAF in absence of the project activity in the month m of the year y (tCO2/ton of raw material(s) mix), determined as given below

BEFoff-site,i,m,y

Monthly off-site baseline emission factor for consumption of electrical energy corresponding to the ith category of raw material(s) mix introduced into the EAF in absence of the project activity in the month m of the year y (tCO2/ton of raw material(s) mix), determined as given below

Category of raw material(s) mix introduced into the EAF (i=1,2,3.n) [The range of the raw material mix in the category i to be determined as per guidance provided above in Table-B.5]

m y

Specific month in the year y Any year within the proposed crediting period of the project activity.

On-site baseline emission factor for consumption of reductant(s) and electrode (BEFon-site,i,m,y) The on-site baseline emission factor for consumption of reductant(s) and electrode will be computed as given below:

BEFon - site ,i ,m , y = (q reduc tan t _ baseline ,i ,m , y EFreduc tan t , m , y ) + (q electrode _ baseline ,i ,m , y EFelectrode ,m , y )
Where: BEFon-site,i,m,y

(3)

Monthly on-site baseline emission factor for consumption of reductant(s) and electrode corresponding to the ith category of raw material(s) mix introduced into the EAF in absence of the project activity in the month m of the year y

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 34

(tCO2/ton of raw material(s) mix) qreductant_baseline,i,m,y Specific reductant(s) consumption corresponding to the ith category of raw material(s) mix introduced into the EAF in absence of the project activity in the month m of the year y (ton of reductant(s)/ton of raw material(s) mix) EFreductant,m,y qelectrode_baseline,i,m,y CO2 emissions factor of the reductant(s) in the month m of the year y (tCO2/ton of reductant(s)) Specific electrode consumption corresponding to the ith category of raw material(s) mix introduced into the EAF in absence of the project activity in the month m of the year y (ton of electrode/ton of raw material(s) mix) EFelectrode,m,y i CO2 emissions factor of the electrode in the month m of the year y (tCO2/ton of electrode) Category of raw material(s) mix introduced into the EAF (i=1,2,3.n) [The range of the raw material mix in the category i to be determined as per guidance provided above in Table-B.5] m y Specific month in the year y Any year within the proposed crediting period of the project activity.

Off-site baseline emission factor for consumption of electrical energy (BEFoff-site,i,m,y) The off-site baseline emission factor for consumption of electrical energy will be computed as given below:
= (EG baseline

BEF

off - site , i , m , y

,i , m , y

EF electricit

y,y

(4)

Where: BEFoff-site,i,m,y Monthly off-site baseline emission factor for consumption of electrical energy corresponding to the ith category of raw material(s) mix introduced into the EAF in absence of the project activity in the month m of the year y (tCO2/ton of raw material(s) mix) EGbaseline,i,m,y Specific electrical energy consumption corresponding to the ith category of raw material(s) mix introduced into the EAF in absence of the project activity in the month m of the year y (MWh/ton of raw material(s) mix), EFelectricity,y CO2 emission factor for electricity generation in the year y (tCO2/MWh),

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 35

determined in accordance with the guidance provided in the latest version of the Approved Consolidated Methodology-ACM0002 i Category of raw material(s) mix introduced into the EAF (i=1,2,3.n) [The range of the raw material mix in the category i to be determined as per guidance provided above in Table-B.5] m y Specific month in the year y Any year within the proposed crediting period of the project activity.

Computation of Project Emissions The project emission will be computed ex-post as given below:

PEy =
m=1 h=1

12 H

PEF
i =1

i ,h,m, y

Qrawmaterials),i,h,m, y (

(5)

Where: PEy PEFi,h,m,y Project Emissions in the year y (tCO2/annum) Heatwise Project Emission Factor corresponding to the ith category of raw material(s) mix introduced into the EAF for the hth heat of the month m of the year y (tCO2/ton of raw material(s) mix) Qraw material(s),i,h,m,y Quantity of ith raw material(s) mix introduced into the EAF in the hth heat of the month m of the year y (ton of raw material(s) mix/month) This value is used in both the baseline and the project emission calculations. H i n m y Total number of heats in the month m of the year y (h=1,2,3,.H) Category of raw material(s) mix introduced into the EAF (i=1,2,3.n) Total number of categories of the raw material(s) mix introduced into the EAF Specific month in the year y Any year within the proposed crediting period of the project activity.

Determination of PEFi,h,m,y The heatwise project emission factor will be computed based on the following emission sources: Specific on-site project emissions from consumption of reductant(s) (coal/coke) Specific on-site project emissions from consumption of electrode and

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 36

Specific off-site project emissions from consumption of electrical energy

Consumption of reductant(s), electrode and electrical energy will depend on raw material(s) mix introduced into the EAF. Therefore the project emission factor will be determined as a function of the consumption of reductant(s), electrode and electrical energy corresponding to ith category raw material(s) mix for every heat as given below:

PEFi ,h ,m, y = PEFon-site,i , h, m, y + PEFoff - site,i , h, m, y


Where: PEFi,h,m,y

(6)

Heatwise Project Emission Factor corresponding to the ith category of raw material(s) mix introduced into the EAF for the hth heat of the month m of the year y (tCO2/ton of raw material(s) mix)

PEFon-site,i,h,m,y

Heatwise on-site project emission factor for consumption of reductant(s) and electrode corresponding to the ith category of raw material(s) mix introduced into the EAF for the hth heat of the month m of the year y (tCO2/ton of raw material(s) mix), determined as given below

PEFoff-site,i,h,m,y

Heatwise off-site project emission factor for consumption of electrical energy corresponding to the ith category of raw material(s) mix introduced into the EAF for the hth heat of the month m of the year y (tCO2/ton of raw material(s) mix), determined as given below

i m y

Category of raw material(s) mix introduced into the EAF (i=1,2,3.n) Specific month in the year y Any year within the proposed crediting period of the project activity.

On-site project emission factor for consumption of reductant(s) and electrode (PEFon-site,i,h,m,y) The on-site project emission factor for consumption of reductant(s) and electrode will be computed for every heat as given below:

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 37

PEF on - site ,i , h , m , y = (q reduc tan t _ project , i , h , m , y EF reduc tan t , m , y ) +

(q

electrode _ projecte , i , h , m , y

EF electrode

,i , m , y

(7)

Where: PEFon-site,i,h,m,y Heatwise on-site project emission factor for consumption of reductant(s) and electrode corresponding to the ith category of raw material(s) mix introduced into the EAF for the hth heat of the month m of the year y (tCO2/ton of raw material(s) mix) qreductant_project,i,h,m,y Specific reductant(s) consumption corresponding to the ith category of raw material(s) mix introduced into the EAF for the hth heat of the month m of the year y (ton of reductant(s)/ton of raw material(s) mix) EFreductant,m,y qelectrode_project,i,h,m,y CO2 emissions factor of the reductant(s) in the month m of the year y (tCO2/ton of reductant(s)) Specific electrode consumption corresponding to the ith category of raw material(s) mix introduced into the EAF for the hth heat of the month m of the year y (ton of electrode/ton of raw material(s) mix) EFelectrode,y i m y CO2 emissions factor of the electrode in the month m of the year y (tCO2/ton of electrode) Category of raw material(s) mix introduced into the EAF (i=1,2,3.n) Specific month in the year y Any year within the proposed crediting period of the project activity.

Off-site project emission factor for consumption electrical energy (PEFoff-site,i,h,m,y) The off-site project emission factor for consumption of electrical energy will be computed for every heat as given below:

PEFoff - site ,i ,h ,m , y = (EG project ,i ,h ,m , y EFelectricity , y )


Where:

(8)

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 38

PEFoff-site,i,h,m,y

Heatwise off-site project emission factor for consumption of electrical energy corresponding to the ith category of raw material(s) mix introduced into the EAF for the hth heat of the month m of the year y (tCO2/ton of raw material(s) mix)

EGproject,i,h,m,y

Specific electrical energy consumption corresponding to the ith category of raw material(s) mix introduced into the EAF for the hth heat of the month m of the year y (MWh/ton of raw material(s) mix)

EFelectricity,y

CO2 emission factor for electricity generation in the year y (tCO2/MWh), determined in accordance with the guidance provided in the latest version of the Approved Consolidated Methodology-ACM0002

i m y

Category of raw material(s) mix introduced into the EAF (i=1,2,3.n) Specific month in the year y Any year within the proposed crediting period of the project activity.

Computation of Leakage Emissions Leakage emissions associated with the raw material preparation and transportation to EAF will be applicable under the following condition: i) Emissions due to change in energy consumption outside the project boundary

ii) Emissions due to change in transportation of the input raw material(s) of the EAF iii) Emissions from production of other consumable(s) in the project activity Therefore leakage emissions resulting from the project activity will include:

L y = Lenergy, y + Ltransportation , y + Lconsumable, y


Where: Ly Lenergy,y Ltransportation,y Lconsumable,y Leakage Emissions in the year y (tCO2/annum)

(9)

Leakage emissions from change in energy consumption in the year y (tCO2/annum) Leakage emissions from change in transportation emissions in the year y (tCO2/annum) Leakage emissions from production of other consumable(s) in the year y (tCO2/annum)

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 39

Any year within the proposed crediting period of the project activity.

i) Leakage emissions from change in energy consumption The project activity may lead to a change in consumption of either electrical energy or chemical energy or a combination of both elsewhere outside the project boundary (for e.g., at source of the input raw material(s)). The leakage emissions under such circumstance will be determined as:

Lenergy, y = Lenergy _ electrical , y + Lenergy _ chemical , y


Where: Lenergy,y Lenergy_electrical,y Lenergy_chemical,y y

(9.1)

Leakage emissions from change in energy consumption in the year y (tCO2/annum) Leakage emissions from change in electrical energy consumption in the year y (tCO2/annum) Leakage emissions from change in chemical energy consumption in the year y (tCO2/annum) Any year within the proposed crediting period of the project activity.

However there will be no change in chemical energy consumption outside the project boundary that may be attributed to the project activity. Therefore,

Lenergy _ chemical , y =0
Hence,

Lenergy, y = Lenergy _ electrical , y


The Leakage emissions from change in electrical energy consumption will be determined as:

Lenergy _ electrical , y = EGenergy, y EFelectricity , y


Where: Lenergy_electrical,y EGenergy,y EFelectricity,y

(9.1.1)

Leakage emissions from change in electrical energy consumption in the year y (tCO2/annum) Net change in the electrical energy consumption outside the project boundary in the year y (MWh/annum) calculated as given below in Table-B.6 CO2 emission factor for electricity generation in the year y (tCO2/MWh),

determined in accordance with the guidance provided in the latest version of the

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 40

Approved Consolidated Methodology-ACM0002 y Any year within the proposed crediting period of the project activity. Table-B.6: Guidance for determination of EGenergy,y With the implementation of the project activity, there is a reduction in electrical energy consumption in the Briquetting Machines due to reduction in quantum of Hot Briquetted Iron (HBI) production. The net change in the electrical energy consumption outside the project boundary (i.e. EGenergy,y) will be determined as a difference between the electrical energy consumption in the project scenario and the electrical energy consumption in the baseline scenario (i.e. before the implementation of the project activity) at the respective leakage emission source i.e. Briquetting Machines. The electrical energy consumption at the leakage emission source in the project scenario will be monitored on an ex-post basis. However the same in the baseline scenario will be determined based on past records (at least 3years data will be used).

ii) Leakage emissions from change in transportation emissions The project activity may lead to a change in either electrical energy consumption (in conveyor system designed for transportation of input raw material(s) of the EAF) or fossil fuel consumption (in transporting vehicles for the input raw material(s) of the EAF) or a combination of both during transportation of the input raw material(s) of the EAF outside the project boundary. The leakage emissions under such circumstance will be determined as:

Ltransportation, y = Ltransportation _ electrical , y + Ltransportation _ fuel , y


Where: Ltransportation,y Ltransportation_electrical,y

(9.2)

Leakage emissions from change in transportation emissions in the year y (tCO2/annum) Leakage emissions from change in electrical energy consumption during transportation of input raw material(s) of the EAF outside the project boundary in the year y (tCO2/annum), calculated as described below

Ltransportation_fuel,y

Leakage emissions from change in fossil fuel consumption during transportation of input raw material(s) of the EAF outside the project boundary in the year y (tCO2/annum), calculated as described below

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 41

The Leakage emissions from change in electrical energy consumption during transportation of input raw material(s) of the EAF will be determined as:

Ltransportation _ electrical , y = EGtransportation , y EFelectricity , y


Where: Ltransportation_electrical,y

(9.2.1)

Leakage emissions from change in electrical energy consumption during transportation of input raw material(s) of the EAF in the year y (tCO2/annum)

EGtransportation,y

Net change in the electrical energy consumption during transportation of input raw material(s) of the EAF outside the project boundary in the year y (MWh/annum), calculated as given below in Table-B.7

EFelectricity,y

CO2 emission factor for electricity generation in the year y (tCO2/MWh), determined in accordance with the guidance provided in the latest version of the Approved Consolidated Methodology-ACM0002

Any year within the proposed crediting period of the project activity. Table-B.7: Guidance for determination of EGtransportation,y

With the implementation of the project activity, there is a reduction in electrical energy consumption in conveying Hot Briquetted Iron (HBI) from Direct reduction furnaces to EAF site due to reduction in HBI in the raw materials mix of EAF. The net change in the electrical energy consumption during transportation of input raw material(s) of the EAF (i.e. HBI) outside the project boundary (i.e. EGtransportation,y) will be determined as a difference between the electrical energy consumption for transport of input raw material(s) of the EAF (i.e. HBI) in the project scenario and the electrical energy consumption for transport of input raw material(s) of the EAF (i.e. HBI) in the baseline scenario (i.e. before the implementation of the project activity) at the respective leakage emission source. The electrical energy consumption for transport of input raw material(s) of the EAF (i.e. HBI) at the leakage emission source in the project scenario will be monitored on an ex-post basis. However the same in the baseline scenario will be determined based on past records (at least 3-years data will be used).

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 42

The Leakage emissions from change in fossil fuel consumption during transportation of input raw material(s) of the EAF outside the project boundary will be determined as:

Ltransportation _ fuel , y = FFi ,transportation , y NCVi EFi (44 / 12 ) OXIDi


i

(9.2.2)

Where: Ltransportation_fuel,y Leakage emissions from change in fossil fuel consumption during transportation of input raw material(s) of the EAF outside the project boundary in the year y tCO2/annum) FFi,transportation,y Net change in mass unit of fuel i consumed during transportation of input raw material(s) of the EAF outside the project boundary in the year y (tones/annum), calculated as given below in Table-B.8 NCVi EFi (44/12) OXIDi y Net calorific value per mass unit of fuel i (TJ/t) Carbon emissions factor per unit of energy of the fuel i (tC/TJ) Carbon to Carbon Dioxide conversion factor Oxidation factor of the fuel i (%) Any year within the proposed crediting period of the project activity. Table-B.8: Guidance for determination of FFi,transportation,y With the implementation of the project activity, there is a net increase in fossil fuel consumption in transportation of Hot Direct Reduction Iron (Hot DRI) from Direct Reduction furnaces to the EAF site. The Leakage emissions from change in fossil fuel consumption during transportation of input raw material(s) of the EAF (i.e. Hot DRI) outside the project boundary (i.e. Ltransportation_fuel,y) will be determined as a difference between the fossil fuel consumption for transport of input raw material(s) of the EAF (i.e. Hot DRI) in the project scenario and the fossil fuel consumption for transport of input raw material(s) of the EAF (i.e. Hot DRI) in the baseline scenario (i.e. before the implementation of the project activity) at the respective leakage emission source. The fossil fuel consumption for transport of input raw material(s) of the EAF (i.e. Hot DRI) at the leakage emission source in the project scenario will be monitored on an ex-post basis. There is no Hot DRI transportation in the baseline scenario.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 43

iii) Leakage emissions from production of other consumable(s) The project activity may lead to a change in consumption of other consumable(s) outside the project boundary (for e.g., consumption of nitrogen for transportation of the input raw material(s) of the EAF). This will lead to leakage emissions from production of those consumables at their respective sources. The same will be determined as:

Lconsumable, y = Lconsumable _ electrical , y + Lconsumable _ fuel , y


Where: Lconsumable,y Lconsumable_electrical,y

(9.3)

Leakage emissions from production of other consumable(s) in the year y (tCO2/annum) Leakage emissions from change in electrical energy consumption from production of other consumable(s) required for EAF operation outside the project boundary in the year y (tCO2/annum), calculated as described below

Lconsumable_fuel,y

Leakage emissions from change in fossil fuel consumption from production of other consumable(s) required for EAF operation outside the project boundary in the year y (tCO2/annum), calculated as described below

Any year within the proposed crediting period of the project activity.

The Leakage emissions from change in electrical energy consumption from production of other consumable(s) required for EAF operation outside the project boundary will be determined as:

Lconsumable _ electrical , y = EGconsumable, y EFelectricity , y


Where: Lconsumable_electrical,y

(9.3.1)

Leakage emissions from change in electrical energy consumption from production of other consumable(s) required for EAF operation outside the project boundary in the year y (tCO2/annum)

EGconsumable,y

Net

change

in

the

electrical

energy

consumption

from

production of other consumable(s) required for EAF operation outside the project boundary in the year y (MWh/annum), calculated as given below in Table-B.9 EFelectricity,y CO2 emission factor for electricity generation in the year y (tCO2/MWh), determined in accordance with the guidance provided in the latest version of

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 44

the Approved Consolidated Methodology-ACM0002 y Any year within the proposed crediting period of the project activity. Table-B.9: Guidance for determination of EGconsumable,y With the implementation of the project activity, there is an increase in nitrogen consumption in the containers transporting Hot Direct Reduction Iron (Hot DRI) from Direct Reduction furnaces to EAF site. The net change in the electrical energy consumption for production of other consumable (i.e. nitrogen) required for EAF operation outside the project boundary (i.e. EGconsumable,y) will be determined based on: a) Net change in consumption of the other consumable (i.e. nitrogen) in the project scenario than that in the baseline scenario- The same will be determined as a difference between the consumption of the consumable (i.e. nitrogen) in the project scenario and that in the baseline scenario. The consumption in the project scenario will be monitored on an ex-post basis and the consumption in the baseline scenario will be determined based on past records (at least 3-years data will be used). b) Specific electrical energy consumption for production of the other consumable (i.e. nitrogen)- The same will be monitored on an ex-post basis.

The Leakage emissions from change in fossil fuel consumption during production of other consumable(s) required for EAF operation outside the project boundary will be determined as:

Lconsumable _ fuel , y = FFi ,consumable, y NCVi EFi (44 / 12 ) OXIDi


i

(9.3.2)

Where: Lconsumable_fuel,y Leakage emissions from change in fossil fuel consumption from production of other consumable(s) required for EAF operation outside the project boundary in the year y (tCO2/annum), FFi,consumable,y Net change in mass unit of fuel i consumed for production of other consumable(s) required for EAF operation outside the project boundary in the year y (tones/annum or m3/annum), calculated as given below in Table-B.10 NCVi EFi (44/12) Net calorific value per mass unit of fuel i (TJ/t) Carbon emissions factor per unit of energy of the fuel i (tC/TJ) Carbon to Carbon Dioxide conversion factor

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 45

OXIDi y

Oxidation factor of the fuel i (%) Any year within the proposed crediting period of the project activity. Table-B.10: Guidance for determination of FFi,consumable,y

With the implementation of the project activity, there is an increase in nitrogen consumption in the containers transporting Hot Direct Reduction Iron (Hot DRI) from Direct Reduction furnaces to EAF site. The net change in mass unit of fuel i consumed for production of other consumable (i.e. nitrogen) required for EAF operation outside the project boundary (i.e. FFi,consumable,y) will be

determined based on: a) Net change in consumption of the other consumable (i.e. nitrogen) in the project scenario than that in the baseline scenario- The same will be determined as a difference between the consumption of the consumable (i.e. nitrogen) in the project scenario and that in the baseline scenario. The consumption in the project scenario will be monitored on an ex-post basis and the consumption in the baseline scenario will be determined based on past records (at least 3-years data will be used). b) Specific fossil fuel consumption for production of the other consumable (i.e. nitrogen)- The same will be monitored on an ex-post basis. However the increase in nitrogen consumption in the containers transporting Hot Direct Reduction Iron (Hot DRI) from Direct Reduction furnaces to EAF site is considered to be negligible at this stage. Therefore, Lconsumable_electrical,y = 0, Lconsumable_fuel,y = 0 and hence Lconsumable,y = 0. However the same will be monitored and the emissions from the same will be accounted for during validation of the project activity under consideration.

Computation of Emission Reductions The emission reductions resulting from the project activity will be calculated as:

ER y = BE y - PE y - L y
Where, ERy = Emission Reductions resulting from the project activity in the year y (tCO2/annum) BEy = Baseline Emissions in the year y (tCO2/annum) PEy = Project Emissions in the year y (tCO2/annum) Ly = Leakage Emissions in the year y (tCO2/annum)

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 46

B.6.2. Data and parameters that are available at validation: The following parameters, required for the computation of baseline emissions, project emissions and leakage emissions (and hence emission reductions resulting from the project activity), are standard parameters which will not be monitored throughout the crediting period and will remain fixed for the entire crediting period. The same will be provided to the Validator during validation of the project activity.

Fixed parameters required for the computation of Baseline Emissions All the parameters required for computation of baseline emissions will be monitored ex-post. Please refer to Section-B.7.1 of the PDD for further details.

Fixed parameters required for the computation of Project Emissions All the parameters required for computation of project emissions will be monitored ex-post. Please refer to Section-B.7.1 of the PDD for further details.

Fixed parameters required for the computation of Leakage Emissions

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 47

All the parameters required for computation of leakage emissions will be monitored ex-post. Please refer to Section-B.7.1 of the PDD for further details. Only the oxidation factor of fuel i consumed during transportation of input raw material(s) (i.e. Hot DRI) of the EAF or production of other consumable (i.e. nitrogen) required for EAF operation will be monitored at the start of the crediting period of the project activity, as explained below, and the same will remain fixed for the entire crediting period. Data / Parameter: Data unit: Description: Source of data used: Value applied Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: OXIDi % Oxidation factor of the fuel i 2006 IPCC Guidelines for National Greenhouse Gas Inventories 1.0 Using IPCC default value will ensure Lower level of uncertainty of the parameter. Therefore no QA/QC is required for the parameter.

The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period. Fixed parameters required for the computation of CO2 emission factor for electricity generation in the year y (EFelectricity,y) The project activity will lead to a net reduction in electrical energy consumption. At Essar Steel Limited, the electrical energy requirement is met from two sources: In-house power generation sources Gujarat Electricity Board (GEB) Grid

With the implementation of the project activity, there will be a corresponding reduction in electricity import from GEB Grid which is a part of the Western Regional Grid of India. This can be justified from the higher power tariff of the grid as compared to that of the in-house power generation source. Therefore the project participant is required to compute the emission factor for Western Regional Grid once before the start of the crediting period of the project activity and the same will remain fixed for the entire crediting period. The following parameters are required for the computation of the emission factor for Western Regional Grid: Data / Parameter: Data unit: Description: Source of data used: EFelectricity_grid,y tCO2/ MWh CO2 emission factor for electricity generation at the grid in the year y CO2 Baseline Database for the Indian Power Sector/ Version 4.0 published by Central Electricity Authority, Government of India

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 48

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

0.799 The parameter will be calculated as per the guidance provided in the latest version of the Approved Consolidated Methodology ACM0002 as a weighted sum of EFOM,y and EFBM,y (as given below). The uncertainty levels of both these parameters are low as explained below. This will ensure reliability and hence Low level of uncertainty of the parameter. Therefore no QA/QC procedure will be required for the parameter. The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period.

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

EFOM,,y tCO2/ MWh CO2 Operating Margin emission factor of the grid CO2 Baseline Database for the Indian Power Sector/ Version 4.0 published by Central Electricity Authority, Government of India 0.999 The parameter will be calculated as per the guidance provided in the latest version of the Approved Consolidated Methodology ACM0002. This will ensure reliability and hence Low level of uncertainty of the parameter. Therefore no QA/QC procedure will be required for the parameter.

The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period. EFBM,,y tCO2/ MWh CO2 Build Margin emission factor of the grid CO2 Baseline Database for the Indian Power Sector/ Version 4.0 published by Central Electricity Authority, Government of India

Data / Parameter: Data unit: Description: Source of data used:

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 49

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

0.597 The parameter will be calculated as per the guidance provided in the latest version of the Approved Consolidated Methodology ACM0002. This will ensure reliability and hence Low level of uncertainty of the parameter. Therefore no QA/QC procedure will be required for the parameter.

The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period.

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

Plant name Text Identification of power source/ plant for OM CO2 Baseline Database for the Indian Power Sector/ Version 4.0 published by Central Electricity Authority, Government of India The parameter will be obtained from reports published by Central Electricity Authority, Government of India. The uncertainty level of the parameter is considered to be Low since the same will be obtained from authentic reports published by Government of India. Therefore no QA/QC procedure will be required for the parameter. The parameter is required for the identification of plants for the computation of CO2 Operating Margin emission factor (EFOM,y) by Simple OM method. The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period. Plant name Text Identification of power source/ plant for BM

Data / Parameter: Data unit: Description:

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 50

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

CO2 Baseline Database for the Indian Power Sector/ Version 4.0 published by Central Electricity Authority, Government of India The parameter will be obtained from reports published by Central Electricity Authority, Government of India. The uncertainty level of the parameter is considered to be Low since the same will be obtained from authentic reports published by Government of India. Therefore no QA/QC procedure will be required for the parameter. The parameter is required for the identification of plants for the computation of CO2 Build Margin emission factor (EFBM,y). The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period.

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

Fi,j,y tonnes/ m3 Amount of fossil fuel i, consumed by each power source/ plant j in year y CO2 Baseline Database for the Indian Power Sector/ Version 4.0 published by Central Electricity Authority, Government of India The parameter will be obtained from reports published by Central Electricity Authority, Government of India. The uncertainty level of the parameter is considered to be Low since the same will be obtained from authentic reports published by Government of India. Therefore no QA/QC procedure will be required for the parameter. The parameter is required for the computation of CO2 Operating Margin emission factor (EFOM,y) by Simple OM method. The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period. GENj,y MWh/ annum Electricity delivered to the grid by each power source j in year y. CO2 Baseline Database for the Indian Power Sector/ Version 3.0

Data / Parameter: Data unit: Description: Source of data used:

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 51

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

published by Central Electricity Authority, Government of India The parameter will be obtained from reports published by Central Electricity Authority, Government of India. The uncertainty level of the parameter is considered to be Low since the same will be obtained from authentic reports published by Government of India. Therefore no QA/QC procedure will be required for the parameter. The parameter is required for the computation of CO2 Operating Margin emission factor (EFOM,y) by Simple OM method. The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period.

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

Fi,m,y tonnes/ m3 Amount of fossil fuel i, consumed by each power source/ plant of the sample group m, identified for BM computation, in year y CO2 Baseline Database for the Indian Power Sector/ Version 4.0 published by Central Electricity Authority, Government of India The parameter will be obtained from reports published by Central Electricity Authority, Government of India. The uncertainty level of the parameter is considered to be Low since the same will be obtained from authentic reports published by Government of India. Therefore no QA/QC procedure will be required for the parameter. The parameter is required for the computation of CO2 Build Margin emission factor (EFBM,y). The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period. GENm,y MWh/ annum Electricity delivered to the grid by each power source of the sample group

Data / Parameter: Data unit: Description:

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 52

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

m, identified for BM computation, in year y CO2 Baseline Database for the Indian Power Sector/ Version 4.0 published by Central Electricity Authority, Government of India The parameter will be obtained from reports published by Central Electricity Authority, Government of India. The uncertainty level of the parameter is considered to be Low since the same will be obtained from authentic reports published by Government of India. Therefore no QA/QC procedure will be required for the parameter. The parameter is required for the computation of CO2 Build Margin emission factor (EFBM,y). The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period.

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

COEFi t CO2 / ton or m3 of fuel CO2 emission coefficient of each fuel type i. CO2 Baseline Database for the Indian Power Sector/ Version 4.0 published by Central Electricity Authority, Government of India The parameter will be calculated following the guidance provided in the latest version of the Approved Consolidated Methodology ACM0002 which will ensure the reliability of the parameter. Therefore no QA/QC procedure will be required for the parameter.

The parameter is required for the computation of CO2 Operating Margin emission factor (EFOM,y) by Simple OM method and for the computation of CO2 Build Margin emission factor (EFBM,y). The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period. GENj/k/l,yIMPORTS MWh/ annum Electricity imports to the grid in year y.

Data / Parameter: Data unit: Description:

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 53

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

CO2 Baseline Database for the Indian Power Sector/ Version 4.0 published by Central Electricity Authority, Government of India The parameter will be obtained from reports published by Central Electricity Authority, Government of India. The uncertainty level of the parameter is considered to be Low since the same will be obtained from authentic reports published by Government of India. Therefore no QA/QC procedure will be required for the parameter. The parameter is required for the computation of CO2 Operating Margin emission factor (EFOM,y) by Simple OM method and for the computation of CO2 Build Margin emission factor (EFBM,y). The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period.

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

COEFi,j,yIMPORTS t CO2 / MWh CO2 emission coefficient of fuel i used in connected electricity systems (if imports occur) CO2 Baseline Database for the Indian Power Sector/ Version 4.0 published by Central Electricity Authority, Government of India The parameter will be calculated following the guidance provided in the latest version of the Approved Consolidated Methodology ACM0002 which will ensure the reliability of the parameter. Therefore no QA/QC procedure will be required for the parameter.

The parameter is required for the computation of CO2 Operating Margin emission factor (EFOM,y) by Simple OM method and for the computation of CO2 Build Margin emission factor (EFBM,y). The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 54

B.6.3

Ex-ante calculation of emission reductions:

Ex-ante Computation of Baseline Emissions The ex-ante computation of baseline emission for the project activity (please refer to Annex-3: Baseline Information for detail computation) is tabulated below: Sl. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Operating Year 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 20162017 20172018 20182019 Total Baseline Emissions (tonnes of CO2 e) 3315620 3315620 3315620 3315620 3315620 3315620 3315620 3315620 3315620 3315620 33156200

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 55

Ex-ante Computation of Project Emissions The ex-ante computation of project emission for the project activity (please refer to Annex-3: Baseline Information for detail computation) is tabulated as below: Sl. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Operating Year 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 20162017 20172018 20182019 Total Project Emissions (tonnes of CO2 e) 2594782 2594782 2594782 2594782 2594782 2594782 2594782 2594782 2594782 2594782 25947820

Ex-ante Computation of Leakage Emissions The ex-ante computation of leakage emission for the project activity (please refer to Annex-3: Baseline Information for detail computation) is tabulated as below: Sl. No. 1 2. 3. 4. 5. 6. 7. 8. 9. 10. Operating Year 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 20162017 20172018 20182019 Total Leakage Emissions (tonnes of CO2 e) -14191 -14191 -14191 -14191 -14191 -14191 -14191 -14191 -14191 -14191 -141910

Ex-ante Computation of Emission Reductions

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 56

The ex-ante computation of emission reductions resulting from the project activity (please refer to Annex3: Baseline Information for detail computation) is tabulated as below: Sl. No. 1 2. 3. 4. 5. 6. 7. 8. 9. 10. Operating Year 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 20162017 20172018 20182019 Total Emission Reductions (tonnes of CO2 e) 735029 735029 735029 735029 735029 735029 735029 735029 735029 735029 7350290

B.6.4

Summary of the ex-ante estimation of emission reductions: Estimation of baseline Emissions reductions (tonnes of CO2 e) 3315620 3315620 3315620 3315620 3315620 3315620 3315620 3315620 3315620 3315620 Estimation of leakage (tonnes of CO2 e) -14191 -14191 -14191 -14191 -14191 -14191 -14191 -14191 -14191 -14191 Estimation of emission reductions (tonnes of CO2 e) 735029 735029 735029 735029 735029 735029 735029 735029 735029 735029

Year

Estimation of Project activity Emission reductions (tonnes of CO2 e) 2594782 2594782 2594782 2594782 2594782 2594782 2594782 2594782 2594782 2594782

2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 20162017 20172018 20182019

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 57

Year

Estimation of Project activity Emission reductions (tonnes of CO2 e)

Estimation of baseline Emissions reductions (tonnes of CO2 e) 33156200

Estimation of leakage (tonnes of CO2 e)

Estimation of emission reductions (tonnes of CO2 e) 7350290

Total (tonnes of CO2 e)

25947820

-141910

B.7

Application of the monitoring methodology and description of the monitoring plan:

Title of Monitoring Methodology: Carbon di-oxide emission reduction through use of raw material(s) input(s) with higher heat energy content in Electric Arc Furnace. Reference of Monitoring Methodology: new proposed methodology (titled- Carbon di-oxide emission reduction through use of raw material(s) input(s) with higher heat energy content in Electric Arc Furnace) / Version 01

B.7.1

Data and parameters monitored:

The new proposed methodology (titled- Carbon di-oxide emission reduction through use of raw material(s) input(s) with higher heat energy content in Electric Arc Furnace) / Version 01 requires the project participant to monitor the following parameters for the computation of baseline emissions, project emissions, leakage emissions and hence the emission reductions resulting from the project activity. The parameters and the monitoring procedures are detailed below:

Parameters required to be monitored for the computation of Baseline Emissions i) On-site baseline emissions factor for consumption of reductant(s) and electrode Data / Parameter: Data unit: Category and Range to define raw material(s) input to the EAF -

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 58

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

Mass fraction of individual raw materials (Hot Briquetted Iron (HBI) and Scrap) in the raw materials mix of the EAF Plant Records Scrap-(0-10)% and Hot Briquetted Iron (HBI)-(90-100)%

The parameter will be monitored heat-wise with an appropriate weighing system following the standard procedure.

Any comment:

Reliability of the parameter will be ensured through its weighment following the standard procedure and regular maintenance and calibration of the weighing system. The parameter can also be audited by a third party statutory auditor which will ensure a lower uncertainty level of the parameter. Furthermore the range will be validated by the DOE based on actual plant data and it will be solely at the discretion of the DOE (i.e. DOE will have the authority to reduce the range in order to ensure higher precision level). The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 59

Data / Parameter: Data unit: Description:

Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied:

qreductant_baseline,i,m,y ton of reductant(s)/ton of raw material(s) mix Specific reductant(s) (i.e. coke) consumption corresponding to the ith category of raw material(s) mix introduced into the EAF in absence of the project activity in the month m of the year y Plant Records 0.003

QA/QC procedures to be applied:

Any comment:

The parameter will be determined based on: total quantity of raw materials mix introduced into EAF and consumption of reductant (i.e. coke) for at least three trial runs (heats) conducted in the month m of the year y for each of the ith category raw material(s) mix introduced into the EAF. The total quantity of raw materials mix and reductant (i.e. coke) consumption will be determined with appropriate weighing systems following standard procedures. An average of the specific consumption of reductant (i.e. coke) as derived from the trial runs (heats) will be considered. The parameter will be determined based on two parameters monitored with appropriate weighing systems following standard procedures. The weighing systems will be regularly maintained and calibrated. This will ensure the reliability of the parameter under consideration. Furthermore the parameter can also be audited by a third party statutory auditor which will ensure a lower uncertainty level of the parameter. The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 60

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

EFreductant,m,y tCO2/ton of reductant(s) CO2 emissions factor of the reductant(s) (i.e. coke) in the month m of the year y Plant Records/ Data from independent laboratory/ IPCC default value 3.043

The parameter will be determined on a monthly basis or with every change in the type of reductant based on the plant data or data from independent laboratory. In case of plants data or data from an independent laboratory, the same will be compared with the IPCC default values to ensure reliability of the parameter. If IPCC default values are used, the conservative end of the uncertainty range shall be applied. The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period.

Any comment:

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 61

Data / Parameter: Data unit: Description:

Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied:

qelectrode_baseline,i,m,y ton of electrode/ton of raw material(s) mix Specific electrode consumption corresponding to the ith category of raw material(s) mix introduced into the EAF in absence of the project activity in the month m of the year y Plant Records 0.031

The parameter will be determined based on: total quantity of raw materials mix introduced into EAF and consumption of electrode for at least three trial runs (heats) conducted in the month m of the year y for each of the ith category raw material(s) mix introduced into the EAF. The total quantity of input feed mix will be determined with appropriate weighing system following standard procedures. The consumption of electrode will be computed as the product of the electrode consumption per kWh of electricity consumed in EAF and the electricity consumption in the EAF during each trial run (heat). Electrode consumption per kWh in the EAF will be determined from total electrode consumption (in ton) and the kWh consumed in the EAF in the month of m. The total electrode consumption will be monitored with an appropriate weighing system following the standard procedure or by multiplying standard weight of electrode as provided by supplier and the no of electrode consumed. The parameter-total quantity of raw materials mix will be determined with appropriate weighing systems following standard procedures. The weighing systems will be regularly maintained and calibrated. This will ensure the reliability of the parameter-total quantity of raw materials mix . The electrode consumption will be estimated based on the standard weight of the electrode column which will ensure its reliability. Reliability of these two parameters (i.e. total quantity of raw materials mix and consumption of electrode) will ensure a lower uncertainty level of the parameter under consideration. The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period.

QA/QC procedures to be applied:

Any comment:

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 62

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

EFelectrode,m,y tCO2/ton of electrode CO2 emissions factor of the electrode in the month m of the year y Manufacturers Data/ Data from independent laboratory 3.043

The parameter will be determined on a monthly basis or with every change in the type of electrode based on the plant data or data from independent laboratory. In case of manufacturers data, the lower value of the uncertainty range provided by the manufacturer will require to be adopted to ensure reliability of the parameter. In both the cases (i.e. manufacturers data or data from independent laboratory), the same can be compared with alternative conservative emission factor to ensure reliability of the parameter. The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period.

Any comment:

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 63

ii) Off-site baseline emission factor for consumption of electrical energy Data / Parameter: Data unit: Description: EGbaseline,i,m,y MWh/ton of raw material(s) mix Specific electrical energy consumption corresponding to the ith category of raw material(s) mix introduced into the EAF in absence of the project activity in the month m of the year y Plant Records 0.600

Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied:

QA/QC procedures to be applied:

Any comment:

The parameter will be determined based on: total quantity of raw materials mix and consumption of electrical energy for at least three trial runs (heats) conducted in the month m of the year y for each of the ith category raw material(s) mix introduced into the EAF. The total quantity of raw materials mix will be determined with appropriate weighing systems following standard procedures. The electrical energy consumption will be monitored with an energy meter. An average of the specific consumption of electrical energy as derived from the trial runs (heats) will be considered. The parameter will be determined based on two parameters monitored with appropriate weighing system following standard procedures and an energy meter. The weighing system and the energy meter will be regularly maintained and calibrated. This will ensure the reliability of the parameter under consideration. Furthermore the parameter can also be audited by a third party statutory auditor which will ensure a lower uncertainty level of the parameter. The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period.

The CO2 emission factor for electricity generation in the year y (EFelectricity,y) for the Western Regional Grid is calculated at the start of crediting period and the same will remain fixed for the entire crediting period. Please refer to Section-B.6.2 of the PDD for further details.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 64

Determination of Qraw material(s),i,h,m,y Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Qraw material(s),i,h,m,y ton of raw material(s) mix/month Quantity of ith raw material(s) mix introduced into the EAF in the hth heat of the month m of the year y Plant Records 475000

The parameter will be monitored heat-wise with an appropriate weighing system following the standard procedure

Any comment:

Reliability of the parameter will be ensured through its weighment following the standard procedure and regular maintenance and calibration of the weighing system. Furthermore the parameter can also be audited by a third party statutory auditor which will ensure a lower uncertainty level of the parameter. The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 65

Parameters to be monitored for the computation of Project Emissions i) On-site project emission factor for consumption of redctant(s) and electrode Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Range to define raw material(s) input to the EAF Mass fraction of individual raw materials in the raw materials mix of the EAF Plant Records Scrap-(0-10)% Hot Direct reduction Iron (Hot DRI)-(30-50)% Hot Briquetted Iron (HBI)- (50-70)% (for Scrap of 0%) and (40-60)% (for Scrap of 10%) The parameter will be monitored heat-wise with an appropriate weighing system following the standard procedure.

Any comment:

Reliability of the parameter will be ensured through its weighment following the standard procedure and regular maintenance and calibration of the weighing system. The parameter can also be audited by a third party statutory auditor which will ensure a lower uncertainty level of the parameter. Furthermore the range will be validated by the DOE based on actual plant data and it will be solely at the discretion of the DOE (i.e. DOE will have the authority to reduce the range in order to ensure higher precision level). The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 66

Data / Parameter: Data unit: Description:

Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied:

qreductant_project,i,h,m,y ton of reductant(s)/ton of raw material(s) mix Specific reductant(s) (i.e. coke) consumption corresponding to the ith category of raw material(s) mix introduced into the EAF for the hth heat of the month m of the year y Plant Records 0.003

QA/QC procedures to be applied:

Any comment:

The parameter will be determined based on: total quantity of raw materials mix and consumption of reductant (i.e. coke) corresponding to the hth heat of the month m of the year y which corresponds to the ith category raw material(s) mix introduced into the EAF. The total quantity of raw materials mix and reductant (i.e. coke) consumption will be determined with appropriate weighing systems following standard procedures. The parameter will be determined based on two parameters monitored with appropriate weighing systems following standard procedures. The weighing systems will be regularly maintained and calibrated. This will ensure the reliability of the parameter under consideration. Furthermore the parameter can also be audited by a third party statutory auditor which will ensure a lower uncertainty level of the parameter. The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period.

The parameter CO2 emissions factor of the reductant(s) (i.e. coke) in the month m of the year y (EFreductant,m,y) will be monitored ex-post on a monthly basis or with every change in type of the reductant (i.e. coke). Please refer to Parameters required to be monitored for the computation of Baseline Emissions/ On-site baseline emission factor for consumption of reductant(s) and electrode in Section-B.7.1 of the PDD for further details.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 67

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 68

Data / Parameter: Data unit: Description:

Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied:

qelectrode_project,i,h,m,y ton of electrode/ton of raw material(s) mix Specific electrode consumption corresponding to the ith category of raw material(s) mix introduced into the EAF for the hth heat of the month m of the year y Plant Records 0.026

The parameter will be determined based on: total quantity of raw materials mix and consumption of electrode corresponding to the hth heat of the month m of the year y which corresponds to the ith category raw material(s) mix introduced into the EAF. The total quantity of input feed mix will be determined with appropriate weighing system following standard procedures. The consumption of electrode for hth heat will be computed as the product of electrode consumption per kWh of electricity consumed in EAF and the electricity consumption in the EAF for hth heat Electrode consumption per kWh in the EAF may be determined from total electrode consumption (in ton) and the kWh consumed in the EAF in the month of m. The total electrode consumption will be monitored with an appropriate weighing system following the standard procedure or by multiplying standard weight of electrode as provided by supplier and the no of electrode consumed. The parameter-total quantity of raw materials mix will be determined with appropriate weighing systems following standard procedures. The weighing systems will be regularly maintained and calibrated. This will ensure the reliability of the parameter-total quantity of raw materials mix . The electrode consumption will be estimated based on the standard weight of the electrode column which will ensure its reliability. Reliability of these two parameters (i.e. total quantity of raw materials mix and consumption of electrode) will ensure a lower uncertainty level of the parameter under consideration. The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period.

QA/QC procedures to be applied:

Any comment:

The parameter CO2 emissions factor of the electrode in the month m of the year y (EFelectrode,m,y) will be monitored ex-post on a monthly basis or with every change in type of the electrode. Please refer to

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 69

Parameters required to be monitored for the computation of Baseline Emissions/ On-site baseline emission factor for consumption of reductant(s) and electrode in Section-B.7.1 of the PDD for further details.

ii) Off-site project emission factor for consumption of electrical energy Data / Parameter: Data unit: Description: EGproject,i,h,m,y MWh/ton of raw material(s) mix Specific electrical energy consumption corresponding to the ith category of raw material(s) mix introduced into the EAF for the hth heat of the month m of the year y Plant Records 0.460

Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied:

QA/QC procedures to be applied:

Any comment:

The parameter will be determined based on: total quantity of raw materials mix and consumption of electrical energy corresponding to the hth heat of the month m of the year y which corresponds to the ith category raw material(s) mix introduced into the EAF. The total quantity of raw materials mix and electrical energy consumption will be determined respectively with appropriate weighing system following standard procedures and energy meter. The parameter will be determined based on two parameters monitored with appropriate weighing system following standard procedures and an energy meter. The weighing system and the energy meter will be regularly maintained and calibrated. This will ensure the reliability of the parameter under consideration. The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period.

The CO2 emission factor for electricity generation in the year y (EFelectricity,y) for the Western Regional Grid is calculated at the start of crediting period and the same will remain fixed for the entire crediting period. Please refer to Section-B.6.2 of the PDD for further details. The parameter Quantity of ith raw material(s) mix introduced into the EAF in the hth heat of the month m of the year y (Qraw
material(s),i,h,m,y)

will be determined heat-wise on an ex-post basis. Please refer to

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 70

Parameters required to be monitored for the computation of Baseline Emissions / Determination of Qraw
material(s),i,m,y

in Section-B.7.1 of the PDD for further details.

Parameters to be monitored for the computation of Leakage Emissions i) Leakage emissions from change in energy consumption Determination of Lenergy_electrical,y Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: EGenergy,y MWh/annum Net change in the electrical energy consumption outside the project boundary in the year y Plant Records -16313

QA/QC procedures to be applied:

Any comment:

The net change in the electrical energy consumption outside the project boundary (i.e. EGenergy,y) will be determined on a monthly basis as a difference between the electrical energy consumption in the project scenario and the electrical energy consumption in the baseline scenario (i.e. before the implementation of the project activity) at the respective leakage emission source (i.e. Briquetting Machines). The electrical energy consumption at the leakage emission source in the project scenario will be monitored on an ex-post basis with an energy meter. However the same in the baseline scenario will be determined based on past records (at least 3years average electrical energy consumption data will be used). Regular calibration of the energy meter will ensure the reliability of the electrical energy consumption in the project scenario. Historic calibration and maintenance reports of the energy meter may serve to demonstrate QA/QC procedures and access uncertainties of the electrical energy consumption in the baseline scenario. The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period.

The CO2 emission factor for electricity generation in the year y (EFelectricity,y) for the Western Regional Grid is calculated at the start of crediting period and the same will remain fixed for the entire crediting period. Please refer to Section-B.6.2 of the PDD for further details.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 71

ii) Leakage emissions from change in transportation emissions Determination of Ltransportation_electrical,y Data / Parameter: Data unit: Description: EGtransportation,y MWh/annum Net change in the electrical energy consumption during transportation of input raw material(s) of the EAF outside the project boundary in the year y Plant Records -2085

Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied:

QA/QC procedures to be applied:

Any comment:

The net change in the electrical energy consumption during transportation of input raw material(s) of the EAF outside the project boundary (i.e. EGtransportation,y) will be determined on a monthly basis as a difference between the electrical energy consumption for transport of input raw material(s) of the EAF (i.e. HBI) in the project scenario and the electrical energy consumption for transport of input raw material(s) of the EAF (i.e. HBI) in the baseline scenario (i.e. before the implementation of the project activity) at the respective leakage emission source. The electrical energy consumption for transport of input raw material(s) of the EAF (i.e. HBI) at the leakage emission source in the project scenario will be monitored on an ex-post basis with an energy meter. However the same in the baseline scenario will be determined based on past records (at least 3-years average electrical energy consumption data will be used). Regular calibration of the energy meter will ensure the reliability of the electrical energy consumption for transport of input raw material(s) of the EAF (i.e. HBI) in the project scenario. Historic calibration and maintenance reports of the energy meter may serve to demonstrate QA/QC procedures and access uncertainties of the electrical energy consumption for transport of input raw material(s) of the EAF (i.e. HBI) in the baseline scenario. The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period.

The CO2 emission factor for electricity generation in the year y (EFelectricity,y) for the Western Regional Grid is calculated at the start of crediting period and the same will remain fixed for the entire crediting period. Please refer to Section-B.6.2 of the PDD for further details.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 72

Determination of Ltransportation_fuel,y Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: FFi,transportation,y tonnes/annum Net change in mass unit of fuel i consumed during transportation of input raw material(s) of the EAF outside the project boundary in the year y Plant Records 158

QA/QC procedures to be applied:

Any comment:

The net change in mass unit of fuel i consumed during transportation of input raw material(s) of the EAF outside the project boundary (i.e. FFi,transportation,y) will be determined on a monthly basis as a difference between the fossil fuel consumption during transportation of input raw material(s) of the EAF (i.e. Hot DRI) in the project scenario and the fossil fuel consumption during transportation of input raw material(s) of the EAF (i.e. Hot DRI) in the baseline scenario (i.e. before the implementation of the project activity) at the respective leakage emission source. The fossil fuel consumption during transportation of input raw material(s) of the EAF (i.e. Hot DRI) at the leakage emission source in the project scenario will be monitored on an ex-post basis with an appropriate weighing system. However the same in the baseline scenario will be determined based on past records (at least 3-years average fossil fuel consumption data will be used). Regular calibration of the weighing system will ensure the reliability of the fossil fuel consumption during transportation of input raw material(s) of the EAF (i.e. Hot DRI) in the project scenario. Historic calibration and maintenance reports of the weighing system may serve to demonstrate QA/QC procedures and access uncertainties of the fossil fuel consumption during transportation of input raw material(s) of the EAF (i.e. Hot DRI) in the baseline scenario. The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 73

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

NCVi TJ/t Net calorific value per mass unit of fuel i Plant Records/ Data from independent laboratory/ Local or National Statistics/ 2006 IPCC Guidelines for National Greenhouse Gas Inventories 0.043

Any comment:

The net calorific value of the fuel (i.e. NCVi) will be monitored ex-post on a monthly basis following the standard testing procedure. In absence of plant specific values, relevant local/national statistics or IPCC default values may be adopted. Determination of the parameter following the standard testing procedure will ensure the reliability of the parameter. The plant specific value can be compared with relevant local or national statistics or IPCC default value to ensure a lower uncertainty level. The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period. EFi tC/TJ Carbon emissions factor per unit of energy of the fuel i Plant Records/ Data from independent laboratory/ Local or National Statistics/ 2006 IPCC Guidelines for National Greenhouse Gas Inventories 20.2

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

Any comment:

The carbon emission factor of the fuel (i.e. EFi) will be monitored expost on a monthly basis following the standard testing procedure. In absence of plant specific values, relevant local/national statistics or IPCC default values may be adopted. Determination of the parameter following the standard testing procedure will ensure the reliability of the parameter. The plant specific value can be compared with relevant local or national statistics or IPCC default value to ensure a lower uncertainty level. The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 74

The parameter OXIDi will be monitored at the start of the crediting period. Please refer to Section-B.6.2 of the PDD for further details. iii) Leakage emissions from production of other consumable Determination of Lconsumable_electrical,y Data / Parameter: Data unit: Description: EGconsumable,y MWh/annum Net change in the electrical energy consumption for production of other consumable(s) required for EAF operation outside the project boundary in the year y Plant Records 0

Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied:

QA/QC procedures to be applied:

Any comment:

The parameter will be monitored monthly based on: i) Consumption of the other consumable (i.e. nitrogen) in the project scenario at the respective leakage emission source- Measured on an expost basis with an appropriate weighing system ii) Consumption of the other consumable (i.e. nitrogen) in the baseline scenario at the respective leakage emission source- Determined ex-ante based on past records (at least 3-years) iii) Specific electrical energy consumption for production of the other consumable (i.e. nitrogen)- Monitored on an ex-post basis based on the production of the particular consumable (i.e. nitrogen) and the corresponding electrical energy consumption, measured respectively with an appropriate weighing system and an energy meter. Regular calibration of the weighing systems and the energy meter will ensure the reliability of the parameters which will be monitored on an expost basis (i.e. consumption of other consumable (i.e. nitrogen) in the project scenario, production of the particular consumable (i.e. nitrogen) and the corresponding electrical energy consumption). Historic calibration and maintenance reports of the weighing system may serve to demonstrate QA/QC procedures and access uncertainties of the parameter which will be monitored ex-ante (i.e. consumption of other consumable (i.e. nitrogen) in the baseline scenario). The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period.

The CO2 emission factor for electricity generation in the year y (EFelectricity,y) for the Western Regional Grid is calculated at the start of crediting period and the same will remain fixed for the entire crediting period. Please refer to Section-B.6.2 of the PDD for further details.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 75

Determination of Lconsumable_fuel,y Data / Parameter: Data unit: Description: FFi,consumable,y tonnes/annum Net change in mass unit of fuel i consumed for production of other consumable(s) required for EAF operation outside the project boundary in the year y Plant Records 0

Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied:

QA/QC procedures to be applied:

Any comment:

The parameter will be monitored monthly based on: i) Consumption of the other consumable (i.e. nitrogen) in the project scenario at the respective leakage emission source- Measured on an expost basis with an appropriate weighing system ii) Consumption of the other consumable (i.e. nitrogen) in the baseline scenario at the respective leakage emission source- Determined ex-ante based on past records (at least 3-years) iii) Specific fossil fuel consumption for production of the other consumable (i.e. nitrogen)- Monitored on an ex-post basis based on the production of the particular consumable (i.e. nitrogen) and the corresponding fossil fuel consumption, both of which will be measured with appropriate weighing systems. Regular calibration of the weighing systems will ensure the reliability of the parameters which will be monitored on an ex-post basis (i.e. consumption of other consumable (i.e. nitrogen) in the project scenario, production of the particular consumable (i.e. nitrogen) and the corresponding fossil fuel consumption). Historic calibration and maintenance reports of the weighing system may serve to demonstrate QA/QC procedures and access uncertainties of the parameter which will be monitored ex-ante (i.e. consumption of other consumable (i.e. nitrogen) in the baseline scenario). The parameter will be archived either in paper or electronically for the entire crediting period and two more years after the completion of the credit period.

The parameter NCVi and EFi will be monitored on an ex-post basis. Please refer to Parameters to be monitored for the computation of Leakage Emissions/Leakage emissions from change in transportation emissions/ Determination of Ltransportation_fuel,y in Section-B.7.1 of the PDD for further details.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 76

The parameter OXIDi will be monitored at the start of the crediting period. Please refer to Section-B.6.2 of the PDD for further details. B.7.2 Description of the monitoring plan:

Please refer to Annex-4: Monitoring Plan for detail description of the Monitoring Plan. 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) Parameter Date of completing the final draft of this baseline selection and monitoring plan Name of person/ entity determining the baseline and establishing the monitoring plan Details 03/09/2008 Essar Steel Limited

Note: The contact information for the project participant, Essar Steel Limited, is provided in Annex-1 of this Project Design Document.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 77

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: 27/10/2006

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


25y 0m C.2 Choice of the crediting period and related information: C.2.1. Renewable crediting period C.2.1.1. Starting date of the first crediting period: Not Applicable. C.2.1.2. Length of the first crediting period: Not Applicable.

C.2.2. Fixed crediting period: C.2.2.1. Starting date: 01/01/2009 or the date of registration of the project activity with UNFCCC, whichever is later. C.2.2.2. Length: 10y 0m

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 78

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

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:

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

E.2.

Summary of the comments received:

E.3.

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

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 79

Annex 1 CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY Organization: Street/P.O.Box: Building: City: State/Region: Postfix/ZIP: Country: Telephone: FAX: E-Mail: URL: Represented by: Title: Salutation: Last Name: Middle Name: First Name: Department: Mobile: Direct FAX: Direct tel: Personal E-Mail: Essar Steel Limited Hazira Hazira District- Surat, State-Gujarat 394270 India + 91 (261) 6682400 + 91 (261) 6682796 www.essar.com Mr. Sanjay Sarkar Head-Projects and Energy Management Mr. Sarkar Sanjay + 91 (261) 5583541 + 91 (261) 5583007 sanjay@essar.com

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 80

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

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 81

Annex 3 BASELINE INFORMATION

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 82

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 83

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 84

Annex 4 MONITORING INFORMATION The project activity entails a net reduction in energy consumption in the steel manufacturing process in Electric Arc Furnaces at Essar Steel Limited. In order to avail CDM revenue through sale of Certified Emission Reduction (CER) units accrued from the project activity, the project participant will require proper monitoring of all the relevant GHG performance parameters. Therefore the project participant has developed a robust monitoring protocol which will be followed throughout the proposed crediting period in order to ensure proper operation of the project activity resulting in generation of carbon credits. This includes a range of data measurement, estimation and collection options/techniques in each case indicating preferred options consistent with good practices to allow project managers and operational staff, auditors, and verifiers to apply the most practical measurement approaches for the project activity. The same is explained below: Table An-4.1: Monitoring Plan 1.0 Objective To ensure proper monitoring and recording of all the parameters required for the computation of emission reductions from the project activity To ensure proper evaluation of the project activity performance at regular intervals To identify the discrepancies in the data monitoring, recording and archiving system and to open up the opportunities for future improvement 2.0 Instrumentation and Control System The instrumentation and control system is the key aspect for salubrious functioning of any monitoring and verification system of a project activity. The project activity will employ the state of the art monitoring and control equipment that will measure, record, report, monitor and control various key parameters. The instrumentation and control system for the project activity will be designed with microprocessor-based instruments having adequate provisions to control and monitor the various operating parameters for safe and efficient operation.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 85

3.0 Roles and Responsibilities The project participant has developed a CDM Team who will be involved in monitoring, reporting and verification of all the GHG performance related parameters. The following schematic diagram will explain the individual roles and responsibilities of all the members of the CDM Team: CDM Team Responsibility

Shift Operator

Monitoring and reporting the GHG performance related parameters following the guidance provided in the Project Design Document.

Shift In-charge

- Reviewing the GHG performance related parameters as recorded by the Shift Operator in every shift. - Implementation of appropriate corrective measures in case any discrepancies are identified in the reported parameters. - Preparation of daily and monthly reports. - Reviewing the daily and monthly reports in consultation with the Shift In-charge. - Implementation of appropriate corrective measures in case any discrepancies are identified in the daily and monthly reports. - Ensuring calibration of the monitoring equipments as and when required. - Reviewing the monthly and annual generation statistics. - Evaluating the GHG performance of the project activity. - Identify opportunities for further improvement.

Head (EAF)

Management Representative(s)

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
page 86

4.0 Internal Audit Internal Audit will be conducted once in a year in order to assess the GHG performance of the project activity. Auditors will consist of people from different departments of Essar Steel Limited. The audit findings and the necessary corrective actions will be documented and reported to the Management Representative(s) for their immediate actions. The Plant Management will also be informed on the same. Compliance with the audit findings and evaluation of implementation of the corrective actions will be a part of the subsequent audit. 5.0 Experience and Training The Head (EAF) will be qualified engineer/ diploma holder with prior work experience. The Shift In-charge will be diploma holder. All the Shift Operators will be provided with extensive on-the-job trainings under the guidance of the Shift In-charge which will include training on plant operations, data monitoring and report generation.

-----

You might also like