Panoli PDD
Panoli PDD
Panoli PDD
CONTENTS
D. Environmental impacts
E. Stakeholders’ comments
Annexes
Annex 1: Contact information on participants in the proposed small scale project activity
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Utilisation of Waste Heat for Chilled Water & Fuel Switch to Natural Gas (NG) for power generation at
Panoli Intermediates India Private Limited
Panoli Intermediates India Private Limited is one of the leading producers of chemicals and chemical
intermediates in the country. As part of its manufacturing process it uses chilled water for process
cooling applications. Like other users of chilled water in industry, the chilled water was being generated
using vapour compression chillers. The electric power needed for the operations was being taken from
the electricity grid of the western region. Any shortfall in the availability of power from the grid was met
by way of captive generation in diesel oil based captive generators.
In order to meet its electricity needs in a more sustainable manner Panoli Intermediates installed a
captive Natural Gas (NG) fired internal combustion engine based generator. The rated capacity of the gas
based power plant installed by it is 1.4 MW. Prior to this the power requirements were being met by way
of supplies from electricity grid of the western region. The power plants supplying power to the western
region electricity grid are primarily based on coal / lignite. Power generation using coal / lignite as fuel
leads to emission of more carbon dioxide when compared to power generation using natural gas as fuel.
Thus establishment of gas based captive power generation facilities leads to reduction in emission of
GHG. Establishment of captive power plant required significant capital investment. Further to this the
cost of power generation using natural gas is higher when compared to the cost of procurement of power
from the state electricity grid. The situation gets further complicated due to uncertainties regarding future
price of natural gas. Realising that due to mitigation in the emission of GHG some benefits will be
available under CDM a decision to go for captive generation of power was taken in-spite of significant
capital investment and consequent higher cost of power generation.
As a normal practise in India, hot exhaust gases from the engine of the power generator is vented to the
atmosphere. Panoli Intermediates realised that there is a potential to recover the waste heat contained in
the exhaust of the engine. However, the heat contained in the exhaust of the engine is of low grade
(having lower temperatures). In addition to this the energy intensity (energy content of the gases is low
due to lower specific heat of the gases) of the flue gases is quite low. Further to this the cost of recovery
of waste heat in a gas stream is comparatively higher (due to lower heat transfer coefficient and lower
specific heat, when compared to liquids at same temperatures). The problem gets further complicated due
to dirt (including particulate matter) in the exhaust gas stream. Due to its low grade there is not much
potential use of this heat in the processes being used by Panoli Intermediates. One of the options was to
use the waste heat contained in the exhaust of the IC engine for generation of chilled water, but this
required scrapping of the existing chillers and installation of new chillers based on vapour absorption
technology. The system for generation of chilled water based on vapour absorption technology is capital
intensive when compared to the capital cost of conventional chillers based on vapour compression
technology. The capital cost of chillers based on vapour absorption technology was acting as a barrier
towards recovery of the waste heat contained in the exhaust of the engine and putting the recovered heat
to a gainful utilisation. Shifting from vapour compression technology to vapour absorption technology
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leads to reduction in the consumption of electricity for generation of chilled water and this in turn leads
to mitigation of emission of Green House Gases (GHG). Keeping this in mind, it was realised that some
monetary benefits will be available for the project under Clean Development Mechanism (CDM). These
monetary benefits were expected to overcome to some extent the barrier of high capital cost of vapour
absorption chillers. Thus it was decided to undertake the activity of replacing existing chillers with
vapour absorption chillers using waste heat of the exhaust gas from the engine of the power generators as
a CDM project activity. Accordingly, Panoli Intermediates has replaced its existing chillers based on
vapour compression technology with new chillers based on vapour absorption technology.
As discussed in the above paragraphs Panoli Intermediates has undertaken following two specific
measures as CDM project activity:
Switching from grid power supply to captive generation of power using NG as fuel
Switch over from vapour compression chillers to vapour absorption chillers using waste heat of the
exhaust of the IC engine of the power plant. Switching from vapour compression chillers to vapour
absorption chillers will lead to reduction in consumption of energy. Reduction in the consumption of
energy in turn leads to reduction in emission of GHG.
The two initiatives mentioned above lead to reduction in the emission of GHG. These initiatives were
taken up as CDM project activity as the capital investment involved and the perceived risks with these
initiatives was prohibitive. In the absence of the proposed CDM project activity, Panoli Intermediates
would have continued to:
Draw power from state electricity grid or generate power in captive diesel oil based generators
Use vapour compression chillers (VCC) for meeting its chilled water requirements
The proposed CDM project has been implemented and is owned by Panoli Intermediates India Private
Limited (Panoli Intermediates). Panoli Intermediates is a Non - Annex B (of Kyoto Protocol) country
entity having its registered office and works in India. Panoli Intermediates will be the beneficiary of the
proposed small scale CDM project activity. There is no Annex B country entity participating in the
project for the time being.
The proposed small scale CDM project activity has following two specific components:
Switching from grid power supply to captive generation of power using Natural Gas as fuel
Switch over from vapour compression chillers to vapour absorption chillers using waste heat
contained in the exhaust of the engine of the captive generator
A brief description of these two components of the proposed small scale CDM project activity is
provided in the following paragraphs.
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Panoli Intermediates is one of the leading producers of dye intermediates and chemicals in the country.
The power requirements for operation of the plant for producing dye intermediates and other chemicals
were earlier met by way of supplies from the power distribution grid of the western region. The power
distribution grid of the western region is subdivided into power distribution grids of different state of the
region. Power distribution grid of the western region caters to the needs of the states of Maharashtra,
Madhya Pradesh, Chhattisgarh, Daman & Diu, Dadar & Nagar Haveli, and Goa apart from that of
Gujarat. The power to the western grid in turn is supplied by the power plants of the states which are part
of the western grid. The power to the western grid is also supplied by central sector power plants
connected to the western grid. Some of the power plants in private sector in the western region also feed
power to the western grid.
As in other parts of the country the technology used by the coal / lignite based thermal power plants of
the western region is sub critical (with the designed thermal efficiency of 35% and auxiliary power
consumption level of 8%), though thermal efficiency of some of the older power plants is lesser then
35%. A typical sub-critical single reheating of steam based power plant (operating at 180bar,
540°C/540°C cycle, and single reheat) currently exhibits a net efficiency of 32.5% (after accounting for
auxiliary power consumption). However, many of the coal / lignite based thermal power plants of the
state are quite old and operate at lower thermal efficiency than the designed levels. Further the auxiliary
power consumption in such thermal power plants is much higher than 8%. As a consequence the coal
consumption and hence emission of carbon dioxide in such power plants is much higher than the design
levels.
The power to the western grid is also supplied by a number of gas turbines. Such gas turbines use either
Naphtha or Natural Gas as fuel. Some of these plants operate in combined cycle while the rest of them
operate in open cycle.
As an alternative to drawing power from the state electricity grid, Panoli Intermediates has established its
captive power generation facilities. The need to establish captive facilities for power generation largely
originated due to unreliable power supply from the grid. Earlier in order to take care of unreliable power
supply Panoli Intermediates used to operate captive diesel oil based power plants. The new captive
generation facilities created comprises of an internal combustion engine (using natural gas as fuel)
coupled with a generator. The rated capacity of the power plant is 1.416 MW. The waste heat contained
in the exhaust of the engine will be utilised to run a vapour absorption technology based chillers (details
of the chiller system is provided in subsequent paragraphs). Technical specifications and the operating
parameters of the captive power generation system are given in Table 1 below.
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Table 1
echnical Specifications and Operating Parameters of Captive Power Generator
Unit At Full At 75% At 50%
Load Load Load
Fuel Natural Gas Natural Gas Natural Gas
Fuel Gas LHV kWh / Nm3 9.5 9.5 9.5
Energy Input kW 3334 2573 1811
Gas volume Nm3/ h 351 271 191
Mechanical output kW 1451 1088 726
Electrical out put kW 1416 1062 706
Recoverable thermal
output
Intercooler 1st stage kW 210 117 32
Lube oil kW 158 136 120
Jacket water kW 380 345 290
Total recoverable thermal
output kW 748 598 442
Specific fuel consumption of kWh / kWh of
engine mechanical output 2.30 2.36 2.49
Specific fuel consumption kWh / kWh of
electrical output 2.35 2.42 2,57
Lube oil consumption Kg / h 0.44 0.44 0.44
Electrical Efficiency 42.5% 41.3% 39.0%
Thermal Efficiency 22.4% 23.2% 24.4%
Total Efficiency 64.9% 64.5% 63.4%
Switching from grid supplied power to the power generated in the captive power plant leads to reduction
in the emission of carbon dioxide due to following two reasons:
The efficiency of the system installed is higher than the efficiency of the fossil fuel based power
plants supplying power to the western grid. The designed efficiency of the sub-critical technology
based power plant using coal / lignite is considered to be about 35 to 36 percent. On top of it the
auxiliary power consumption in such power plants is 8 percent, thereby reducing the designed net
efficiency levels to about 33 Percent. It is important to note that in actual practise the coal / lignite
based power plants operate at efficiency levels which are much lower than the designed levels.
Against this the energy efficiency of the captive power plant (considering only the power as output)
installed by Panoli Intermediates is 42.5 percent.
Lower carbon intensity of natural gas when compared to that of coal / lignite. The carbon emission
intensity of coal is considered to be 27.6 Kg C / GJ1. Against this the carbon emission intensity of
Natural Gas is considered to be 15.3 Kg C / GJ.
Apart from the two reasons mentioned above the emission of carbon dioxide also reduces due to recovery
of waste heat contained in the exhaust of the engine. This waste heat recovered is used for running a
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Revised IPCC Guidelines for National Greenhouse Gas Inventories: Reference Manual
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vapour absorption technology based chiller unit. Mitigation due to recovery of waste heat in the exhaust
of the engine has been accounted for separately.
As can be seen from Table 1 above the input energy in the form of fossil fuel (natural gas) used for
generation of one unit of power is 2.35 kWh (at full load). In actual practise the power generator is not
expected to run at full load at all times. Average load on the power generator is expected to be about 75
Percent of the full load. Keeping this in mind and in order to determine GHG mitigation potential due to
the proposed CDM project in a conservative manner the fossil fuel energy input for generation of one
unit of power (one kWh of power) has been considered at 2.42 kWh. Accordingly emission of carbon
dioxide for generation of one unit of power has been estimated to be 0.49 Kg2. Against this the carbon
dioxide emission for generation of one unit of power in a conventional coal based power plant (sub-
critical technology single reheating and 510 degree C temperature) is estimated to be 1.10 Kg
(considering 33 percent net efficiency, carbon intensity of coal as 27.6 kg C/ GJ). It is important to note
that in the process of transmission of power from the power plants to the premises of the user there will
be transmission and distribution losses. Due to transmission and distribution losses the carbon dioxide
emission for every unit of power (generated in a conventional coal based thermal power plant) delivered
will be higher than 1.10 Kg. Further to this the thermal power plants in actual practise operates at the
efficiency levels which is lower than the design levels.
The electricity grid of the western region is supplied with the power generated in a number of power
plants. These power plants are based on different technologies / fuels and each one of them operates at
different levels of efficiency. Based on the contribution of each of the power plants, the type of fuel used
in such plants and actual efficiency of such power plants, the emission of carbon dioxide for every unit of
power supplied to the grid will vary from time to time. More details regarding emission of carbon dioxide
due to generation of power for supplying to the western grid are provided in subsequent sections.
Panoli Intermediates uses chilled water for process cooling applications. Till recently the chilled water
needed for the cooling application was produced using a heat pump based on vapour compression
technology. With the establishment of captive power generation facilities as discussed in the above
paragraphs, additional waste heat streams (exhaust of the engine and hot water used for cooling of the
engine) became available. One of the ways to put the waste heat to gainful utilisation was to generate
chilled water in a heat pump using the vapour absorption technology. However, this required that the
existing chilled water generation facilities based on vapour compression technology be scrapped and new
facilities based on vapour absorption technology be established. High capital cost of vapour absorption
based system was acting as a barrier towards such an act. Realising that shifting from vapour
compression technology to vapour absorption technology will lead to mitigation in the emission of GHG
and some benefits will be available under CDM, Panoli Intermediates replaced the existing chilled water
generation system with the energy efficient vapour absorption system.
Heat pumps transfer the heat from a colder location to the location at a relatively higher temperature.
Heat pumps are commonly used for the cooling applications. Heat pumps are based on repetitive
condensation and evaporation cycle of a liquid (refrigerant) carried out in a controlled manner for
generation of cooling effect at one end and the heating effect at the other end. The cooling in turn is used
2
Energy input = 2.42 kWh of natural gas = 0.008715 GJ * Carbon intensity of natural Gas (15.3 Kg C / GJ) *44/12
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for cooling an enclosed space either for air conditioning or refrigeration. Vapour compression using
compressors run by electrical motors is the predominantly used technology for condensing the vapours of
the refrigerant in a refrigeration / air conditioning cycle.
One of the other technology options to generate cooling effect for refrigeration / air conditioning cycle is
the vapour absorption cycle. In the vapour absorption cycle a low grade heat source is used as the
external energy source for running the refrigeration cycle (against electrical energy used in case of
vapour compression cycle). The selection of a technology for a given refrigeration / air conditioning
application is governed by the initial capital cost, the operating cost and other external factors (like
availability of power / low grade heat source). Out of these two technologies for refrigeration, vapour
absorption technology is comparatively newer and is characterised by high initial capital cost. The capital
cost of a vapour absorption system is significantly higher (about four to five times) when compared to the
system based on vapour compression. The vapour absorption based systems are required to be
customised to a large extent based on the quality, type and quantity of low grade heat source. Due to the
need for customisation in case of vapour absorption based refrigeration systems and due to comparatively
higher initial investment, the risks involved while adopting a vapour absorption based system are
significantly higher.
Like in most parts of the world, vapour compression systems are predominantly used in India as well for
refrigeration/ air conditioning and chilled water requirements. A comparatively lower initial cost, reliable
and easy-to-use technology and availability in the wide range of sizes makes vapour compression based
refrigeration systems a natural choice in most of the cases. Majority of chillers around the world also use
vapour compression systems for cooling needs. Due to the widespread use, and hence standardization, of
this technology, users can choose from a wide variety of sizes and manufacturers. The three most
common types of compressors used in vapour compression chillers are centrifugal, reciprocating and
screw compressors. Out of the three types of compressors the most commonly used the world over and in
India is the reciprocating type, again primarily due to its lower capital cost and wide range of sizes.
As stipulated before the refrigeration systems are based on the physical property of a liquid wherein the
liquid absorbs heat from its surrounding while boiling (latent heat of vaporization). Conversely, it gives
up heat when it condenses. In a commercial refrigeration system the boiling of a liquid (refrigerant) and
its condensing is carried out in a manner that the heat is pumped from an area required to be cooled to an
area at comparatively higher temperature.
In vapour compression chillers, the refrigerant evaporates at low pressure, creating the cooling effect.
The vapour is compressed to a high pressure and gives up all of the heat collected during evaporation
while condensing. When compared to the conventional vapour compression systems, in vapour
absorption chillers, the condenser and evaporator are exactly the same, while an absorber and generator
replace the compressor in raising the refrigerant pressure.
Vapour compression chiller machines use electricity for running of the refrigeration cycle, wherein
compressors are used to convert refrigerant vapours to liquid and dissipate the heat gained by the vapours
in the earlier operation of the process. Further to this, vapour compression refrigeration technology use
CFC (Chloro Fluoro Carbons) based refrigerant (Freon R-11, R-12, R-123 etc.) as refrigerants. CFCs
cause harm to the environment, owing to ozone layer depletion.
The chillers based on vapour absorption technology use heat, instead of mechanical energy, to provide
cooling. The refrigerant vapour from the evaporator is absorbed by a solution mixture in the absorber.
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This solution is then pumped to the generator where the refrigerant is re-vaporized using a waste heat
source. The refrigerant-depleted solution is then returned to the absorber. The rich refrigerant solution
will then pass through the evaporator where refrigerants evaporate by exchanging heat, return chilled
water and refrigerate vapour goes to absorber.
Vapour absorption chillers use strong affinity for each other in some pairs of chemicals. This affinity
allows rapid dissolution in one another and is the critical factor in absorption cooling. Lithium bromide-
water (Li-Br) and ammonia-water are the two most widely used chemical pairs in absorption cooling. In
water-ammonia systems, ammonia (refrigerant) is drawn from a conventional evaporator into the
absorber that contains water. This weak solution is pumped into a generator where high-pressure
ammonia is released to a conventional condenser by applying heat. Li-Br (in solution) and water
(refrigerant) systems also work in a similar fashion.
Absorption plants are divided into different categories based on the type of heat supply, the number of
effects and the chemicals used. Heat may be supplied in the form of hot water, steam, direct firing or
direct exhaust from an engine or turbine. To improve efficiency, some of the heat may be recycled
internally by dividing the generator into high and low temperature sections. The refrigerant vapour from
the high temperature generator gives up heat in the low temperature/pressure generator. This double
effect arrangement reduces the heat requirement to half for the same cooling effect. High temperatures
are required for this arrangement (140°C or above).
As water is the refrigerant in the Li-Br-H2O combination, the attainable cooling effect is restricted to
5°C and above. On the other hand, ammonia chillers can maintain +5°C to –40°C using normal cooling
water as a coolant. Better cooling can be achieved using chilled coolant water.
The working of a vapour absorption based chilling system as against that based on vapour compression
system is depicted schematically in the following figure:
Figure 1
Schematic of Vapour Compression Chiller System
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Like other industries in the country Panoli Intermediates was using a vapour compression refrigeration
system for generating chilled water for process cooling needs. The system which was being used by it
used anhydrous ammonia as the refrigerant. Two chillers were being used by it. The two chillers were
connected to a common chilled water circulation system. Specifications of the chillers based on vapour
compression technology which was being used by it are as follows:
Table 1
Specifications of Old Chilled Water System
Chilled water Chilled water
System I System II
Make Kirloskar Kirloskar
Serial Number KC 6 KC 3
Refrigeration Capacity 52.2 Tons of ice 26.1 Tons of ice
equivalent / day equivalent / day
Compressor motor rating 111.7 kW 58.2 kW
Chilled water temperature 2 to 5 degree C 2 to 5 degree C
Number of compressors One One
Type of compressor Reciprocating Reciprocating
For generation of chilled water, Panoli Intermediates has installed environment friendly Vapour
Absorption Refrigeration (VAR) system in place of Vapour Compression Refrigeration (VCR) machine.
The aggregate capacity of the earlier vapour compression based system was 85 TR. The earlier system
comprised of two compressors of 50 and 30 TR capacities respectively. Against this the capacity of the
vapour absorption based system installed now is a single unit of 280 TR. The increased capacity of the
chillers’ will take care of the expansion of production capacity for chemicals. For circulation of the
chilled water the old circulation system is being used.
Waste heat contained in the exhaust of the engine and the cooling water of the engine of the captive gas
based power generator is used as a heat source for operation of the vapour absorption chilling system.
Details of the recoverable waste heat from the exhaust, hot water and lubricating oil have already been
provided in Table 1. Overall heat balance of the system is given in Figure 2 below:
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Figure 2
Waste Heat Recovery in Vapour Absorption Chillers
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Technical Specifications of the Vapour Absorption Chillers are provided in Table 2 below:
Table 2
Technical Specifications and Operating Parameters of Vapour Absorption Chillers
Unit Value
A. Chilled Water Circuit
1 Capacity TR 280
2 Chilled water flow Cum / hr. 169
3 Chilled water temperature
Inlet Deg C 10
Outlet Deg C 5
B Cooling / Hot Water Circuit
1 Cooling / Hot water flow rate Cum / hr. 280
2 Cooling water temperature
Inlet Deg C 32.0
Outlet Deg C 37.7
C Heat input circuits
C1 Engine Exhaust
1 Flue gas flow Kg / hr. 7627
2 Flue gas inlet temperature Deg C 420
3 Flue gas outlet temperature Deg C 180
4 Pressure drop in VAM Mm WC 660
C2 Engine hot jacket water
1 Hot water flow Cum / hr. 32.2
2 Hot water inlet temperature Deg C 90
3 Hot water outlet temperature Deg C 80
D Electrical circuit
1 Power supply 3 ph, 415V, 50 Hz
2 Control supply 110 V & 230 V, 1 ph
3 Absorbent pump rating kW 3.7+3
4 Refrigerant pump rating kW 0.3
5 Vacuum pump rating kW 0.75
6 Electrical load KVA 11.4
As can be seen the waste heat from the water of the engine jacket and the exhaust gases from the engine
is being utilised for the operation of the vapour compression based chillers. The connected load of the
system is only 11.4 KVA. Based on the ratings of the pumps in the system the power consumption is
estimated to be about 7 kWh (apart from power consumption for circulation of the chilled water) for
generation of 280 TR of chilling. Against this specific power consumption in vapour compression
technology based chillers is much more. Shifting from vapour compression technology to vapour
absorption technology for generation of chilled water leads to reduction in power consumption, which in
turn leads to reduction in the emission of carbon dioxide (which is a GHG) due to power generation. This
intervention leads to reduction in the emission of GHG due to avoidance of the need to generate power.
Installing VAR chillers based on the waste heat from the engine exhaust is not a common practice due to
following reasons:
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India
Gujarat
Plot no. 778/1 and 756/1, GIDC Industrial Area, Jhagadia, Dist. Bharuch, Gujarat, India
A.4.2. Type and category(ies) and technology/measure of the small-scale project activity:
Type II D: Energy efficiency and fuel switching measures for industrial facilities
A.4.3 Estimated amount of emission reductions over the chosen crediting period:
The project has been implemented using internal cash accruals. There is no external funding for the
project. No public funding is sought for the project activity.
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A.4.5. Confirmation that the small-scale project activity is not a debundled component of a
large scale project activity:
In accordance with Appendix C of the simplified Modalities and Procedure for Small-Scale CDM project
Activities, “ A proposed small-scale project activity shall be deemed to be a de-bundled component of a
large project activity if there is a registered small-scale CDM project activity or an application to register
another small-scale CDM project activity:
None of the above conditions is applicable in case of the proposed CDM project being promoted by
Panoli Intermediates India Private Limited. Thus the proposed CDM project is not a de-bundled
component of a larger CDM project.
B.1. Title and reference of the approved baseline and monitoring methodology applied to the
small-scale project activity:
Type II D: Energy efficiency and fuel switching measures for industrial facilities
Reference: AMS IID, Version 8, 23rd December 2006
The proposed CDM project is an outcome of specific energy conservation programmes initiated at
production facilities of Panoli Intermediates, located at Jhagadia with the objective of reducing demand
side energy consumption. In accordance with Appendix B of the simplified modalities and procedures for
small – scale CDM project activities / version 06, the project activity is categorized as - Type II D:
Energy efficiency and fuel switching measures for industrial facilities
Category II D is applicable to the projects which comprise of any energy efficiency and fuel switching
measure implemented at a single industrial facility. This category covers project activities aimed
primarily at energy efficiency.
The proposed CDM project is leading to reduction in the emission of GHG due to switching of fuel for
power generation (substitution of grid power which is primarily generated in coal based power plant with
power generated in captive gas based power plants) and improvement of energy efficiency due to
replacement of vapour compression chillers with vapour absorption chillers. Establishment of captive
facilities for generation of power using gas as fuel is proving the opportunity for using waste heat in the
exhaust of the power plant and effective utilisation of this waste heat in vapour absorption chillers is
leading to improvement in energy efficiency.
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The applicability criteria in the context of the proposed CDM project are as follows:
Project involves energy efficiency measure through installation of vapour absorption chillers at
single site i.e. Production facilities of Panoli Intermediates located at Jhagadia
The project activity is an energy efficiency measure which involves fuel switch as well
The project involves installation of new equipments (Vapour Absorption Chillers and captive power
plant) for energy efficiency
The aggregate energy saving achieved by this programme is about 1less than 15 GWh of electricity
per annum.
As is evident the proposed CDM project meets all the applicability criteria set out under the selected
small-scale methodology and hence the project category is applicable to the project.
In accordance with the approved small scale baseline methodology II D, the boundary of the proposed
CDM project will be the physical boundary of the production unit of Panoli Intermediates located at
Jhagadia.
The project category applicable to the proposed CDM project is II D. Accordingly the energy baseline
being considered consists of the energy use of the vapour compression technology based chillers, being
replaced by the vapour compression based chillers.
For the other component of the proposed CDM project, namely switching to power generation in natural
gas based generators; the baseline considered is the power supply from the grid of the western region on
the country.
Approved small scale methodology II D stipulates that for the electricity displaced, the emission
coefficient be calculated in accordance with provisions in paragraphs 6 or 7 for category I.D projects.
Paragraphs 6 & 7 for category I D projects have the following provision for determination of the
emission coefficient (measured in kg CO2equ/kWh) in the baseline scenario:
(a) The average of the “approximate operating margin” and the “build margin”, where:
(i) The “approximate operating margin” is the weighted average emissions (in kg
CO2equ/kWh) of all generating sources serving the system, excluding hydro,
geothermal, wind, low-cost biomass, nuclear and solar generation;
(ii) The “build margin” is the weighted average emissions (in kg CO2equ/kWh) of recent
capacity additions to the system, which capacity additions are defined as the greater
(in MWh) of most recent 20% of existing plants or the 5 most recent plants.”;
OR
(b) The weighted average emissions (in kg CO2equ/kWh) of the current generation mix.
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With the purpose of providing a ready reference for the emission coefficients to be used in CDM
projects, Central Electricity Authority (CEA), Government of India, has published, ‘CO2 Baseline
Database for the Indian Power Sector3’. This database is an official publication of the Government of
India for the purpose of CDM baselines. It is based on the most recent data available to the Central
Electricity Authority. As per the data base the weighted average emission factor of Western Regional
Grid for the financial year 2004-05 (April 2004 to March 2005) (not adjusted for inter-regional and
cross-country electricity transfers) is as follows:
Average 0.92 tCO2/MWh The weighted average emission factor describes the average CO2
emitted per unit of electricity generated in the grid. It is calculated by
dividing the absolute CO2 emissions of all power stations in the region
by the region’s total net generation. Net generation from so-called low-
cost/must-run sources (hydro and nuclear) is included in the
denominator.
Simple 1.01 tCO2/MWh The operating margin describes the average CO2 intensity of existing
OM stations in the grid which are most likely to reduce their output if a
CDM project supplies electricity to the grid (or reduces consumption
of grid electricity). “Simple” denotes one out of four possible variants
listed in ACM0002 for calculating the operating margin. The simple
operating margin is obtained by dividing the region’s total CO2
emissions by the net generation of the stations serving the region
excluding low-cost/must-run sources. In other words, the total
emissions are divided by the total net generation of all thermal power
stations. Hydro and nuclear qualify as low-cost/must-run sources, and
their net generation is therefore excluded from the denominator.
BM 0.77 tCO2/MWh The build margin reflects the average CO2 intensity of newly built
power stations that will be (partially) replaced by a CDM project. In
accordance with ACM0002, the build margin is calculated in this
database as the average emissions intensity of the 20% most recent
capacity additions in the grid based on net generation.
CM 0.89 tCO2/MWh The combined margin is a weighted average of the simple operating
margin and the build margin. By default, both margins have equal
weights (50%). The combined margins shown in the database are
calculated based on equal weights.
In accordance with the provision in paragraphs 6 & 7 of approved small scale methodology ID average of
the emission factor (considering the emission due to current generation mix) has been considered for
determining the emission in the baseline. Accordingly the emission factor considered is 0.92 tCO2/MWh
(0.92 Kg CO2/kWh). In order to determine GHG mitigation in a conservative manner no transmission
and distribution losses has been considered. In order to determine the emission in the baseline scenario,
the emission factor is multiplied by the net power generated in captive natural gas based power plant.
The emission in the CDM project is determined using IPCC default values for emission due to
combustion of natural gas. Accordingly, the emission factor considered to determine emission of GHG
3
‘CO2 Baseline Database for the Indian Power Sector’, User Guide, Version 1.0, CEA, Government of India, 4th
October, 2006
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due to the CDM project has been considered at 15.3 Kg C / GJ4. Thus emission of carbon dioxide for
generation of one unit of power in the CDM project has been estimated to be 0.49 Kg5.
In case of vapour absorption chillers component of the CDM project the project proponent would have
continued to use vapour compression technology based chillers (using reciprocating type compressors).
Thus the energy baseline is the displaced fossil fuel, which would have been used to generate power
needed by the vapour compression based chillers. The power consumption in the baseline scenario to
generate equal amount of refrigeration can be estimated either based on the designed power consumption
of vapour compression technology based chillers or based on the figures provided in standard reference
literature. For vapour compression based refrigeration cycle (operating at above zero degree C
temperatures) using reciprocating compressors the standard literature6 provides the energy to TR ratio in
the range of 0.7 to 0.9 kW/TR. In order to estimate the GHG mitigation due to the project in a
conservative manner, the specific power consumption in the baseline scenario has been considered as 0.7
kWh /TR.
The baseline power consumption is specific power consumption (kWh/TR) of the vapour compression
based chillers multiplied by refrigeration generation (TR/yr). The GHG emission in the baseline scenario
is calculated based on emission coefficient for the western grid (discussed in the above paragraphs)
multiplied by the power which would have been consumed in vapour compression based chillers. The
GHG emission after implementation of the CDM project is the actual power consumption multiplied by
the emission coefficient of natural gas based captive power plant.
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 small-scale CDM project activity:
The new capital equipment installed in the proposed CDM projects not only reduces the consumption of
energy but also substitutes the existing more carbon intensive fuel with a lesser carbon intensive fuel. A
combination of these two reasons is leading to the reduction in the emission of GHG. The proposed
CDM project was not considered as a lucrative business proposition in the absence of CDM. It is so as
from business prospective it is more lucrative to have a reliable technology, which will give a smooth and
safe operation scenario with less manpower & trouble free maintenance even if it consumes marginally
more energy. It is considered that the monetary savings achieved due to energy savings gets negated due
to production loss due to equipment down time.
The incentive of CDM in terms of additional revenue as well as the recognition which Panoli
Intermediates will get when the project activity is registered as CDM project played a major role in going
ahead with the project.
Switching from grid power supply to captive generation of power using Natural Gas as fuel
Switch over from vapour compression chillers to vapour absorption chillers using waste heat
4
Revised IPCC Guidelines for National Greenhouse Gas Inventories: Reference Manual
5
Energy input = 2.42 kWh of natural gas = 0.008715 GJ * Carbon intensity of natural Gas (15.3 Kg C / GJ) *44/12
6
Bureau of Energy Efficiency, Government of India
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In the absence of implementation of the CDM project Panoli Intermediates would have continued to draw
power from the electricity and would have continued to use vapour compression technology for meeting
its chilled water requirements. Thus the higher level of emission of GHG would have continued.
There were a number of barriers towards implementation of the proposed CDM project. Implementation
of the project as CDM project helped in overcoming these barriers. An outline of the barriers towards
implementation of these two components of the project which has been overcome by implementing them
as CDM project has been provided in the following paragraphs.
In case of the component involving replacement of vapour compression chillers with vapour absorption
chillers, the most appropriate alternative to the project activity was to install more of Vapour
Compression Chillers to take care of the increase in the capacity of the production plant, as Panoli
Intermediates had earlier installed Vapour compression machines and it would have been comfortable to
continue the same technology considering the reliability, less cost towards maintenance of inventory and
availability of trained manpower to operate the chillers. Installing vapour compression chillers is a
normal practice due to its established know-how, reliability, maintenance / service availability, low cost
and ready availability. Thus if this component of the proposed CDM project would not have been
implemented, electrical power would have been needed for Vapour compression Chillers. Thus the
proposed CDM project activity has reduced the emission of GHG which would have been generated due
to the need to generate more fossil fuel based power. Some of the barriers towards replacement of the
vapour compression chillers with vapour absorption chillers are as follows:
Replacement of existing chillers with the new vapour absorption chillers required that the existing
chillers be scrapped and capital investment be made to buy the new chillers
The capital cost of chillers based on vapour absorption chillers is about three times the capital cost of
chillers based on vapour compression chillers
In comparison to vapour compressor chillers, the vapour absorption chillers are less reliable and
require more maintenance
Prior to implementation of the proposed CDM project Panoli Intermediates used to draw electrical power
from the grid of the western region. As an alternative to drawing power from the state electricity grid
Panoli Intermediates, has established its captive power generation facilities.
The need to establish captive facilities for power generation largely originated due to unreliable power
supply from the grid. Earlier in order to take care of unreliable power supply, Panoli Intermediates used
to operate captive diesel oil based power plants. While deciding to establish captive facilities for
generation of power, the choice of fuel and technology comprised of coal, diesel oil and natural gas. Due
to the size of the power plant, the coal was not preferred. Thus the choice was restricted to use either
diesel oil or natural gas as fuel. Panoli Intermediates would have continued to use existing diesel oil
based power generators to take care of the unreliable power supply from the grid. This is so as this did
not require any additional capital investment. Instead it installed new captive power generators using
natural gas as fuel. Some of the barriers towards such an act which has been overcome by implementing
the project as CDM project are as follows:
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The cost of power generation using natural gas as fuel is much higher due to the higher cost of
natural gas
Perceived risk of non availability of natural gas in future
Perceived risk of rise in the price of natural gas in future
Capital investment required to create new facilities for power generation
Scrapping of existing diesel oil based power generation facilities which still had the residual life and
was functional
In the absence of creation of natural gas based captive power generation facilities, Panoli Intermediates
would have continued to either draw power from the grid or would have generated power in captive
diesel oil based facilities. In the absence of the regulations the natural choice of the fuel for captive
power generation would have been diesel oil.
The emission of GHG for generation of power in diesel oil based power plants or coal based power
plants, is higher than the emission in case of power generation in gas based power plants. This is partly
due to lower carbon intensity of natural gas and partly due to higher efficiency of the power plant
established by Panoli Intermediates. Thus switching from grid supplied power to the power generated in
the captive power plant leads to reduction in the emission of carbon dioxide.
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The monitoring is the part of baseline methodology. As explained earlier, the baseline methodology is
applicable to the project activity and hence the monitoring protocol given in the methodology is
applicable to the project activity.
In case of new natural gas based power plant, the emission saved will be determined by metering the
power generated and monitoring the consumption of natural gas used. The calorific value of natural gas
will also be monitored to arrive at the value of emission coefficient (in terms of CO2 equivalent / NM3,
the IPCC emission coefficient is in terms of C / GJ, thus it is required to monitor the calorific value of
natural gas to arrive at the emission coefficient in terms of CO2 equiv. / NM3).
In case of replacement of vapour compression based chillers with the vapour absorption based chillers,
the emission saved will be determined by monitoring the refrigeration generated and the power consumed
for generation of the refrigeration. The parameters required for monitoring as per methodology are
included in the monitoring plan.
Data / Parameter: P (Net Power generated in natural gas based captive generator)
Data unit: Thousand kWh
Description: Power generated in the captive natural gas based power plant (net of auxiliary
power consumption within the power plant)
Source of data used: Electricity meter installed on the power plant and the additional electricity
meter installed at the HT / LT distribution point supplying power to the
manufacturing plant
Value applied: 8972 Per Year
Justification of the GHG mitigation is directly proportional to the power generated using captive
choice of data or power plant based on natural gas as fuel. The measurement of power generated
description of using an electronic meter as installed on the power plant is considered to be a
measurement methods reliable method for measurement of power. The meter at the HT / LT panel will
and procedures act as a cross check. The least of the two values will be used.
actually applied :
Any comment:
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Data / Parameter: PC,CDM (Power Consumption in vapour absorption chillers after the CDM
project)
Data unit: kWh
Description: Actual power used for generation of chilled water after implementation of the
CDM project
Source of data used: Dedicated meter on the line supplying power to the vapour absorption chillers
Value applied: 75 Thousand kWh Per year
Justification of the Direct measurement of the power consumed by the vapour absorption chillers
choice of data or take into account the variations in the efficiency of the chillers. Measurement
description of of power consumed by using an online meter is a standard industry procedure
measurement methods which will be used in this case.
and procedures
actually applied :
Any comment: The proposed method of direct measurement of power consumption by the
vapour absorption chillers will take into account any variation which may take
place in actual practice in the efficiency of the chilling units. It is because of
this reason that instead of using the designed specific energy consumption in
the chillers, a method to directly measure the power consumption has been
proposed. Variation in the efficiency of the chillers in actual practice can take
place due to a variety of reasons which include the chillers operating on part
load and the quality of power supply to the chillers.
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Data / Parameter: P (Net Power generated in natural gas based captive generator)
Data unit: Thousand kWh
Description: Power generated in the captive natural gas based power plant (net of auxiliary
power consumption within the power plant)
Source of data to be Electricity meter installed on the power plant and the additional electricity
used: meter installed at the HT / LT distribution point supplying power to the
manufacturing plant
Value of data: Will vary and will be obtained from monitoring
Description of Net power generated in the power plant will be determined using an electronic
measuring methods and energy meter installed at the outlet of the power plant. The meter used will be
procedures to be of integrator type. The reading of the meter will be noted in the beginning of
applied every shift and at the end of the shift. The difference of the two readings will be
taken as the power generated during the shift.
QA / QC procedures to The measurement of power generated using an electronic meter as installed on
be applied: the power plant is considered to be a reliable method for measurement of
power. The additional meters at the HT / LT panel will act as a cross check. In
case of difference in the two readings, the least of the two values will be used.
Calibration of the energy meters being used will be carried out regularly as per
the standard practice.
Any comment:
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Data / Parameter: PC,CDM (Power Consumption in vapour absorption chillers after the CDM
project)
Data unit: Thousand kWh
Description: Actual power used for generation of chilled water after implementation of the
CDM project
Source of data to be Dedicated meter on the line supplying power to the vapour absorption chillers
used:
Value of data: Will vary and will be obtained from monitoring
Description of Direct measurement of the power consumed by the vapour absorption chillers
measuring methods and By using a dedicated meter purpose. An electronic energy meter will be used
procedures to be for the purpose.
applied
QA / QC procedures to Calibration of the energy meter will be carried out from time to time as per the
be applied: recommendations of the supplier of the meter.
Any comment: The proposed method of direct measurement of power consumption by the
vapour absorption chillers will take into account any variation which may take
place in actual practice in the efficiency of the chilling units. It is because of
this reason that instead of using the designed specific energy consumption in
the chillers, a method to directly measure the power consumption has been
proposed. Variation in the efficiency of the chillers in actual practice can take
place due to a variety of reasons which include the chillers operating on part
load and the quality of power supply to the chillers.
The use of electronic energy meter instead of an electro mechanical type of
meter is being suggested as with time the accuracy level of electro mechanical
meters goes down.
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Data / Parameter: SB
Data unit: kWh/TR
Description: Specific power consumption in the baseline scenario (in vapour compression
technology based chillers)
Source of data to be Equipment standards by ‘Bureau of Energy Efficiency’, Government of India,
used: for vapour compression technology based chillers
Value of data: 0.7
Description of Not Applicable, as fixed reference value is being used
measuring methods and
procedures to be
applied
QA / QC procedures to Not applicable
be applied:
Any comment:
The proposed CDM project leads to mitigation of GHG due to following two specific measures:
Replacement of grid power with power generated in captive natural gas based power generator
Replacement of vapour compression based chilled water generation facilities with the chilled water
generation facilities based on vapour absorption technology.
The monitoring of the emission reduction will be carried out by measuring the actual power generation
and actual refrigeration generation and the corresponding natural gas / power consumption. For
determining the refrigeration generated flow rate of the chilled water and the temperature loss across the
chilling unit is measured. There will be fluctuations both in the volumetric flow rate of water and
temperature loss across the chilling unit. In order to take care of the fluctuations online recorders with
integrators will be used.
The fuel consumption for power generation can vary either because of variation in the efficiency of the
power plant or because of the variation in the calorific value of the natural gas. Variation in the calorific
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value of the natural gas does not lead to variation in the emission coefficient (in terms of GHG emission
per unit of power generated). However variation in the thermal efficiency of the power plant leads to
variation in the emission coefficient. To account for the variations in the GHG emissions due to variation
in thermal efficiency of the power plant, combination of the natural gas consumption and the computed
value of emission coefficient of natural gas will be used. The value of the emission coefficient (in terms
of emissions per NM3) will be determined using emission coefficient for natural gas and the actual
calorific value of natural gas.
The proposed CDM project activity has been implemented by Panoli Intermediates India Private Limited
at its existing production facilities located at Jhagadia, in the state of Gujarat. The CDM project will be
looked after by the manager responsible for operation of the production facilities. Day to day operations
of the power generator will be carried out by the staff responsible for the operation of the captive power
plant within the production facilities. The water flow rate and the inlet and outlet temperature of the
chilled water will be measured just outside the battery limited of the chilling unit.
The meters used for recording the power generation and chilled water flow rate will be of integrator type.
The records of the quantity of power generated and the refrigeration produced will be recorded on a daily
basis. The data will be captured and stored electronically. As a separate measure, the quantity of power
produced, natural gas consumed and the ratio of the power produced to the quantity of natural gas
consumed will be entered in the logbook on every shift basis.
Measuring instruments of all the parameters covered under monitoring plan which are required to be
monitored regularly will be calibrated as per maintenance schedule.
B.8 Date of completion of the application of the baseline and monitoring methodology and the
name of the responsible person(s)/entity(ies)
Date of completion of the application of the baseline and monitoring methodology: 20th January 2007
Dinesh Aggarwal
Manager
Deloitte Touche Tohmatsu India Private Limited
MCT House, One Okhla Centre, Block A
Okhla Institutional Area
New Delhi – 1100025
Phone: 91-11-66622087
Fax: 91-11-66622011
Email: daggrawal@deloitte.com
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The duration of the proposed small scale CDM project activity is 10 years
Start date of the proposed small scale project activity is February 2006.
15 years
Not Applicable.
The crediting period will start from the date of registration of the project with CDM Executive Board.
The expected start date of the crediting period is July 2007.
C.2.2.2. Length:
10 years.
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D.1. If required by the host Party, documentation on the analysis of the environmental impacts
of the project activity:
Not applicable
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:
Not applicable
E.1. Brief description how comments by local stakeholders have been invited and compiled:
The stake holders in the present context were defined as the parties and individuals who are either
affected or are perceived to be affected by the proposed CDM project activity. The proposed activity
pertains to replacement of vapour compression chillers with vapour absorption technology based chillers
and creation of captive facilities for generation of power using natural gas as fuel. The proposed activity
is not likely to have any adverse impact on any of stake holders.
A list of stake holders was prepared and for inviting the comments by the stake holders, a joint meeting
of the stake holders was organised. Presentation regarding climate change, Kyoto Protocol and CDM was
made to the stake holders in order to familiarise them regarding the concept. Information regarding other
global environmental issues like ozone depletion and Montreal Protocol was also provided during the
meeting. This was followed by a presentation on the proposed CDM project. The presentations were
made in local language (Gujarati and Hindi). The list of the stake holders who attended the meeting is
provided as Appendix to this document. After the briefing / presentations, the stake holders were asked to
provide their comments / suggestions for the proposed project.
The stake holders present during the meeting appreciated the initiatives taken by Panoli Intermediates to
address the local and global environmental issues. Some of the representatives on the neighbouring
industries present during the meeting expressed interest in taking up similar initiatives in their units as
well and asked for the guidance and support from Panoli Intermediates.
E.3. Report on how due account was taken of any comments received:
The management representatives of Panoli Intermediates promised to provide the required support and
guidance to the neighbouring industries to undertake CDM projects. Apart from this there are no
comments for which any action is required to be taken by the project proponent.
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Annex 1
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Annex 2
No public funding of the project is involved. The entire cost of the project will be borne by the project
proponent (Panoli Intermediates India Private Limited).
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Annex 3
BASELINE INFORMATION
The proposed small scale CDM project activity has following two specific components:
• Switching from grid power supply to captive generation of power using Natural Gas as fuel
• Switch over from vapour compression chillers to vapour absorption chillers using waste heat
Explanation of how the above two components of the proposed project lead to reduction of emission of
GHG and the baseline consideration for the two components of the proposed CDM project is being
provided in the following paragraphs.
Earlier, the power requirements for operation of the plant for producing dye intermediates and other
chemicals in the production facilities of Panoli Intermediates located at Jhagadia were met by way of
supplies from the power distribution grid of the western region. The power distribution grid of the
western region is subdivided into power distribution grids of different state of the region. The power to
the western grid in turn is supplied by the power plants of the states which are part of the western grid.
The power to the western grid is also supplied by central sector power plants connected to the western
grid. Some of the power plants in private sector in the western region also feed power to the western grid.
As in other parts of the country, the technology used by the coal / lignite based thermal power plants of
the western region is sub critical (with the designed thermal efficiency of 35% and auxiliary power
consumption level of 8%). Though thermal efficiency of some of the older power plants is lesser than
35%. A typical sub-critical single reheat steam plant (operating at 180bar, 540°C/540°C cycle, and
single reheat) currently exhibits a net efficiency of 32.5% (after accounting for auxiliary power
consumption). However, many of the coal / lignite based thermal power plants of the state are quite old
and operate at lower thermal efficiency than the designed levels. Further the auxiliary power
consumption in such thermal power plants is much higher than 8%. As a consequence, the coal
consumption and hence emission of carbon dioxide in such power plants is much higher than the design
levels.
The power to the western grid is also supplied by a number of gas turbines. Such gas turbines use either
Naphtha or Natural Gas as fuel. Some of these gas turbine based power plants operate in combined cycle
while the rest of them operate in open cycle.
As an alternative to drawing power from the state electricity grid, Panoli Intermediates has established its
captive power generation facilities. The need to establish captive facilities for power generation largely
originated due to unreliable power supply from the grid. Earlier in order to take care of unreliable power
supply, Panoli Intermediates used to operate captive diesel oil based power plants.
While deciding to establish captive facilities for generation of power, the choice of fuel and technology
comprised of coal, diesel oil and natural gas. Due to the size of the power plant coal was not preferred.
Thus the choice was restricted to use either diesel oil or natural gas as fuel. The cost of power generation
using natural gas as fuel is much higher due to higher cost of natural gas. However, considering that the
benefits available under CDM will partly take care of the higher cost of fuel in case of selection of
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natural gas as fuel, it was decided to go for natural gas based captive power generation. The new captive
generation facilities created comprises of an internal combustion engine (using natural gas as fuel)
coupled with a generator.
In the absence of creation of natural gas based captive power generation facilities, Panoli Intermediates
would have continued to either draw power from the grid or would have generated power in captive
diesel oil based facilities. Thus the two possible baseline scenarios in this case are as follows:
This is largely due to the fact, that there are no regulations in the country regarding use of type of fossil
fuel for generation of power in captive power plants. In the absence of the regulations the natural choice
of the fuel for captive power generation would have been diesel oil due to the following reasons:
Diesel oil was being used earlier for captive power generation and it is the most widely available
fossil fuels. Captive power generation facilities based on diesel oil were already available with
Panoli Intermediates and it would have continued to use these facilities.
It is possible to store diesel oil at site to take care of fluctuations in the availability of fuel due to
disturbances along the supply chain
The cost of power generation using diesel oil is comparatively lower
There is higher perceived risk regarding fluctuations in the prices and availability of natural gas in
future
Of the two possible baseline scenarios discussed above the most probable scenario would have been
withdrawal of power from the grid. This is because of the following reasons:
This was an existing practise and the project proponents were comfortable with this arrangement as
far as operational convenience and cost of power are concerned.
It did not involve any additional capital investment. Non availability of capital is one of the barriers
to industry in the country. The problem gets further compounded due to the high interest rate on the
capital borrowed.
Thus in order to determine GHG mitigation due to the proposed CDM project the baseline considered is
the withdrawal of power from the grid. The GHG emission in the baseline scenario has been estimated
accordingly.
The electricity grid of the western region is supplied with the power generated in a number of power
plants. These power plants are based on different technologies / fuels and each one of them operates at
different levels of efficiency. Based on the contribution of each of the power plants, the type of fuel used
in such plants and actual efficiency of such power plants, the emission of carbon dioxide for every unit of
power supplied to the grid will vary from time to time. In this context it is important to note that
generation mix of the western region largely comprises of thermal power. These thermal power plants
use coal / lignite as fuel. The carbon dioxide emission for generation of one unit of power in a
conventional coal based power plant (sub-critical technology single reheating and 510 degree C
temperature) is estimated to be 1.10 Kg (considering 33 percent net efficiency, carbon intensity of coal as
27.6 kg C/ GJ). It is important to note that in the process of transmission of power from the power plants
to the premises of the user there will be transmission and distribution losses. Due to transmission and
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distribution losses the carbon dioxide emission for every unit of power (generated in a conventional coal
based thermal power plant) delivered will be higher than 1.10 Kg. Further to this the thermal power
plants in actual practise operate at the efficiency levels which are lower than the design levels.
The proposed project uses the approved small scale methodology II D. Approved small scale
methodology II D stipulates that for the electricity displaced, the emission coefficient be calculated in
accordance with provisions in paragraphs 6 or 7 for category I.D projects. Paragraphs 6 & 7 for category
I D projects have the following provision for determination of the emission coefficient (measured in kg
CO2equ/kWh) in the baseline scenario:
(c) The average of the “approximate operating margin” and the “build margin”, where:
(i) The “approximate operating margin” is the weighted average emissions (in kg
CO2equ/kWh) of all generating sources serving the system, excluding hydro,
geothermal, wind, low-cost biomass, nuclear and solar generation;
(ii) The “build margin” is the weighted average emissions (in kg CO2equ/kWh) of recent
capacity additions to the system, which capacity additions are defined as the greater
(in MWh) of most recent 20% of existing plants or the 5 most recent plants.”;
OR
(d) The weighted average emissions (in kg CO2equ/kWh) of the current generation mix.
With the purpose of providing a ready reference for the emission coefficients to be used in CDM
projects, Central Electricity Authority (CEA), Government of India, has published, ‘CO2 Baseline
Database for the Indian Power Sector7’. This database is an official publication of the Government of
India for the purpose of CDM baselines. It is based on the most recent data available to the Central
Electricity Authority. As per this data base the weighted average emission factor of Western Regional
Grid for the financial year 2004-05 (April 2004 to March 2005) (not adjusted for inter-regional and
cross-country electricity transfers) is as follows:
7
‘CO2 Baseline Database for the Indian Power Sector’, User Guide, Version 1.0, CEA, Government of India, 4th
October, 2006
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In accordance with the provision in paragraphs 6 & 7 of approved small scale methodology ID average of
the emission factor (considering the emission due to current generation mix) has been considered for
determining the emission in the baseline. Accordingly, the emission factor considered is 0.92 tCO2/MWh
(0.92 Kg CO2/kWh). In order to determine GHG mitigation in a conservative manner, no transmission
and distribution losses have been considered.
Panoli Intermediates uses chilled water for process cooling applications. Till recently the chilled water
needed for the cooling application was produced using chillers based on vapour compression technology.
With the establishment of captive power generation facilities as discussed in the above paragraphs,
additional waste heat streams (exhaust of the engine and hot water used for cooling of the engine)
became available. In order to gainfully utilise this additional waste heat, Panoli Intermediates replaced
its existing vapour compression based chillers with the chillers based on vapour absorption technology.
This required that the existing chilled water generation facilities based on vapour compression
technology be scrapped and new facilities based on vapour absorption technology be established. High
capital cost of vapour absorption based system was acting as a barrier towards such an act. Realising that
shifting from vapour compression technology to vapour absorption technology will lead to mitigation in
the emission of GHG and some benefits will be available under CDM, Panoli Intermediates replaced the
existing chilled water generation system with the energy efficient vapour absorption system. In the
absence of the proposed CDM project, Panoli Intermediates would have continued to use the existing
vapour compression based chillers. In order to increase the availability of chilled water to match the
increase in demand for chilled water, due to increase in the production capacity, Panoli Intermediates
would have added more chillers based on vapour compression technology. The selection of technology
for generation of chilled water would have been the vapour compression technology because of following
specific reasons:
The vapour compression technology which uses the compressors run by electrical motors is the
predominantly used technology for condensing the vapours of the refrigerant in a refrigeration /
air conditioning cycle. Against this, in the vapour absorption cycle a low grade heat source is
used as the external energy source for running the refrigeration cycle (against electrical energy
used in case of vapour compression cycle). In this case, this low grade heat source is the exhaust
from the engine of the power generator.
Due to its very nature (presence of particulate matter etc.) there are risks associated with the use
of engine exhaust as the source of heat. Such risks include higher maintenance cost, lower
operational performance of the equipment (due to higher dirt factor), reduced life of the tubes of
heat exchangers (due to deposition of particulate matter and creation of hot spots)
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The selection of a technology for a given refrigeration / air conditioning application is governed
by the initial capital cost, the operating cost and other external factors (like availability of power
/ low grade heat source). Out of these two technologies for refrigeration, vapour absorption
technology is comparatively newer and is characterised by high initial capital cost.
The vapour absorption based systems are required to be customised to a large extent based on the
quality, type and quantity of low grade heat source. Due to the need for customisation in case of
vapour absorption based refrigeration systems and due to comparatively higher initial
investment, the risk involved while adopting a vapour absorption based system are significantly
higher
There is no statutory policy or programme that would have prevented Panoli Intermediates, to
establish more chillers based on vapour compression technology. The project is the outcome of
the voluntary initiative of the management, would not have been possible in the absence of
management decision of Panoli Intermediates to save energy and reduce GHG emissions
associated with the saving of electric power.
Thus the baseline considered for this component of the proposed CDM project is the chilled water
generation using vapour compression technology. The energy baseline is the displaced fossil fuel, which
would have been used to generate power needed by the vapour compression based chillers. The power
consumption in the baseline scenario to generate equal amount of refrigeration can be estimated either
based on the designed power consumption of vapour compression technology based chillers or based on
the figures provided in standard reference literature.
For vapour compression based refrigeration cycle (operating at above zero degree C temperatures) using
reciprocating compressors, the standard literature8 provides the energy to TR ratio in the range of 0.7 to
0.9 kW/TR. In order to estimate the GHG mitigation due to the project in a conservative manner, the
specific power consumption in the baseline scenario has been considered as 0.7 kWh /TR.
The baseline power consumption is specific power consumption (kWh/TR) of the vapour compression
based chillers multiplied by refrigeration generation (TR/yr). The GHG emission in the baseline scenario
is calculated based on emission coefficient for the western grid (discussed in the above paragraphs)
multiplied by the power which would have been consumed in vapour compression based chillers.
8
Bureau of Energy Efficiency, Government of India
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Annex 4
MONITORING INFORMATION
The proposed CDM project leads to mitigation of GHG due to following two specific measures:
Replacement of grid power with captive power generated in captive natural gas based power
generator
Replacement of vapour compression based chilled water generation facilities with the chilled water
generation facilities based on vapour absorption technology.
The monitoring of the emission reduction will be carried out by measuring the actual power generation,
actual refrigeration generation and the corresponding consumption of natural gas / power. Thus both the
sources of emission of GHG and the energy out put streams will be monitored. All these parameters will
be monitored by direct on line measurements using high accuracy measuring instruments. As
measurement of refrigeration apart from measurement of volumetric flow rate requires measurement of
temperatures as well, separate temperature measuring instruments will be used. The temperature
measuring instruments used will have the facility to record the temperatures. The measuring instruments
used will be integrator type.
The CDM project will be looked after by the manager responsible for operation of the production
facilities. Day to day operations of the power generator will be carried out by the staff responsible for the
operation of the captive power plant within the production facilities. The water flow rate and the inlet
and outlet temperature of the chilled water will be measured just outside the battery limits of the chilling
unit.
The meters used for recording the power generation and chilled water flow rate will be of integrator type.
The records of the quantity of power generated and the refrigeration produced will be recorded on a daily
basis. The data will be captured and stored electronically. As a separate measure, the quantity of power
produced, natural gas consumed and the ratio of the power produced to the quantity of natural gas
consumed will be entered in the logbook on per shift basis. Measuring instruments of all the parameters
covered under monitoring plan which are required to be monitored regularly will be calibrated as per
maintenance schedule.
The monitoring methodology being used is the part of baseline methodology. The baseline methodology
II D is applicable to the project activity and hence the monitoring protocol given in the methodology is
applicable to the project activity.
In the case of a new facility, the monitoring methodology requires monitoring of:
(a) Metering the energy use of the equipment installed;
(b) Calculating the energy savings due to the equipment installed.
In case of new natural gas based power plant, the emission saved will be determined by metering the
power generated and monitoring the consumption of natural gas used. In case of replacement of vapour
compression based chillers with the vapour absorption based chillers the emission saved will be
determined by monitoring the refrigeration generated and the power consumed for generation of the
refrigeration. The parameters required for monitoring as per methodology are included in the monitoring
plan.
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Appendix
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Appendix
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