PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) Version 03 - in effect as of: 22 December 2006 CONTENTS A. General description of the small scale project activity B. Application of a baseline and monitoring methodology C. Duration of the project activity / crediting period D. Environmental impacts E. Stakeholders’ comments Annexes Annex 1: Contact information on participants in the proposed small scale project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring Information Annex 5: Stakeholder Consultation Annex 6: Plant Availability Calculations Annex 7: Biomass Availability in Port Dickson 1 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board Revision history of this document Version Date Description and reason of revision Number 01 21 January Initial adoption 2003 02 8 July 2005 • The Board agreed to revise the CDM SSC PDD to reflect guidance and clarifications provided by the Board since version 01 of this document. • As a consequence, the guidelines for completing CDM SSC PDD have been revised accordingly to version 2. The latest version can be found at <http://cdm.unfccc.int/Reference/Documents>. 03 22 December • The Board agreed to revise the CDM project design 2006 document for small-scale activities (CDM-SSC-PDD), taking into account CDM-PDD and CDM-NM. 2 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board SECTION A. General description of small-scale project activity A.1 Title of the small-scale project activity: Sunquest Biomass Project Version 1 28th March 2008 A.2. Description of the small-scale project activity: The Sunquest Biomass Project (the “Project”) developed by Sunquest Sdn Bhd (the “Project Developer”) is a biomass fired electricity generation project located in Port Dickson, Negeri Sembilan, Malaysia (the Host Country) that will supply electricity to the Malaysian grid. The project will have a total installed capacity of 6.5 MW, of which 1.5 MW will be utilised for captive consumption, and 5 MW will be supplied to the grid. The project will use Empty Fruit Bunches (EFB), a waste-product in the production of palm oil, to generate electricity. The project will collect 120,765 tonnes of EFB per annum from several nearby local palm oil mills purchased through a local supplier. All EFB are sourced from various mills within a 50 km radius of the plant. Currently EFB poses a waste disposal problem for many mills. There is a ban on open air burning in Malaysia and sites built after 19921 are not allowed by law to use incineration as a waste management option. Many mills do not own plantations where they can use the EFB for mulching or composting, therefore EFB is usually disposed of in mills’ undersized dumping sites, then degrades anaerobically, releasing methane emissions into the atmosphere. Current waste management options for the mills supplying EFB to the project are limited; hence the EFB is dumped in unmanaged shallow solid waste disposal sites, and left to decay under the present conditions. Therefore in addition to its attendant benefits, this project presents a unique option for EFB waste management in the project area. The project will reduce emissions through (1) the displacement of more carbon intensive grid connected electricity, and (2) avoidance of methane production from biomass decay through controlled combustion. By utilizing biomass to displace fossil fuel in power generation, the Project will greatly contribute to the development of Malaysia’s renewable energy sources. The controlled combustion of EFB in the plant’s boiler offers a more environmentally sound manner of disposal of biomass waste residues. In addition, the use of domestically available biomass as an energy resource helps conserve foreign exchange by reducing the reliance on imported fossil fuels to meet the country’s expanding energy requirements. The sustainable development benefits of the project include: The multiplier effect of this investment is likely to bring additional benefits such as increased employment opportunities in the area where the project is located. Approximately 28 new jobs will be created for the operation of the plant and approximately 20 (2 drivers in each truck, 10 trucks used) others for EFB transportation ; It increases diversity and security of electricity supply; It contributes towards a decrease in fossil fuel consumption; 1 Subsidiary Regulation under the Environmental Quality Act, 1974 3 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board The project will act as a clean technology demonstration project, encouraging development of biomass facilities throughout Malaysia which could be replicated across the region; It contributes towards meeting the Government’s fifth fuel policy, renewable energy target of 5% of power output in Malaysia to be from renewable sources. A.3. Project participants: Please list project participants and Party(ies) involved and provide contact information in Annex 1. Information shall be indicated using the following tabular format. Kindly indicate if the Name of Party involved Private and/or public entity(ies) Party involved wished (*) ((host) indicates a host Project participants (*) to be considers as Party) (as applicable) project participant Malaysia (host) Sunquest Sdn. Bhd. No United Kingdom of Great EcoSecurities Group PLC. No Britain and Northern Ireland (*) In accordance with the CDM modalities and procedures, at the time of making the CDM-PDD public at the stage of validation, a Party involved may or may not have provided its approval. At the time of requesting registration, the approval by the Party(ies) involved is required. Note: When the PDD is filled in support of a proposed new methodology (forms CDM-NBM and CDM- NMM), at least the host Party(ies) and any known project participant (e.g. those proposing a new methodology) shall be identified. 4 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board A.4. Technical description of the small-scale project activity: The project consists of the installation of the following equipment to generate a net capacity of 5 MW of electricity that will be sold to the TNB (Tenaga Nasional Berhad, Peninsular Malaysia's national electricity utility company) grid under a Power Purchase Agreement. The diagram below illustrates the process: EFB From Supplier / Palm Oil Mills EFB Receiving Station Threshing EFB Station Processing Plant EFB Breaker /Press EFB Fibre (25mm to 100mm long) In discrete pieces @ EFB Shredder 52% moisture Fuel Storage BOILER STEAM TURBINE TNB SUBSTATION 5 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board After delivery from the suppliers, the EFB is first received in the yard and subsequently moved into the EFB Receiving Station. From the receiving station it is channelled into the EFB Processing Plant. In the Processing Plant, EFB is channelled into a drum separator where sand, stone, and other foreign material are separated from it. The EFB is then processed through the Fibre Shredder and Agitator Breaker where its moisture content will be reduced to accommodate combustion in the boiler. After being pressed and shredded, the EFB (in discreet strips of 20 to 100mm long, and with a 52% moisture content) is briefly stored in a storage yard, prior to combustion in the single boiler unit The single boiler unit is of a water tube type using reciprocating travel grate combustion technology. It is reliable and highly efficient and has been designed to meet the Biomass Power Plant requirements and specifications. It has also been designed and constructed in accordance with ASME or JIS standards. The boiler has an efficiency rate of 84% for low calorific value fuel. The steam pressure at the boiler outlet valve is 45 bar, with a corresponding temperature of 440oC, and the boiler is capable of producing 35 tonnes per hour of steam. The boiler will consume approximately 16 tonnes/hr of EFB, operating at approximately 8,060 hours/year (92% availability) to fulfil Sunquest’s Power Purchase Agreement (PPA). CSM-Takuma of Japan is the Boiler provider. The technology will be transferred from Japan and the fabrication of minor parts will take place in Malaysia through the equipment supplier Kematek Sdn Bhd. Steam produced from the boiler is subsequently fed to the steam turbine via a steam pipe. The steam turbine is of a multistage, nozzle governed, horizontal spindle, two bearings, impulse bleed cum condensing type. The rated power of the steam turbine is 6.5MW complete with auxiliaries and accessories such as lubrication system, governing system, safety devices, gearbox, condensing system, A/C generator, auxiliaries for generator protection and control, and control & instrumentations. The steam turbine requires 45 bars steam pressure, 440oC of steam temperature and approximately 30.85 tonnes per hour of steam flow, at the steam turbine inlet valve to generate 6.5MW of electricity. Subsequently, the AC generator converts the shaft horsepower of the steam turbine into electrical energy at a voltage of 11kV. The electrical power generated from the steam turbine generator will be transmitted from the plant via an underground transmission cable which will be connected to TNB’s substation and existing switchyard. 5MW of electricity will be transmitted to the grid, and the remaining 1.5MW will be used for captive consumption. The Power