PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 1 CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-PDD) Version 03 - in effect as of: 28 July 2006 CONTENTS A. General description of project activity B. Application of a baseline and monitoring methodology C. Duration of the project activity / crediting period D. Environmental impacts E. Stakeholders’ comments Annexes Annex 1: Contact information on participants in the project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring 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: >> Coal to Biomass Residues Fuel Switch Project in Heilongjiang Suibao Cogeneration Co. ,Ltd Version number of the document: 01 Date: 20/02/2009 A.2. Description of the project activity: >> Heilongjiang Suibao Cogeneration Co., Ltd is located in Acheng District, Harbin City of Heilongjiang Province, which now has 2 sets of 75t/h coal-fired circulating fluidized bed boiler and 2 sets of 35t/h coal-fired chain grate boiler and is the major source of heat supply for the eastern region of the city as well as of industrial steam supply for the enterprises nearby. Coal to Biomass Residues Fuel Switch Project in Heilongjiang Suibao Cogeneration Co. Ltd. (hereafter referred to as the Project) involves retrofitting 2 sets of 75 t/h coal-fired circulating fluidized bed boiler having a lifetime of 20 years which were put into operation in Nov. 2004 and Dec. 2004 respectively, and 2 sets of 35t/h coal-fired chain great boiler having a lifetime of 30 years which were put into operation in Dec. 1991. Biomass residues including rice straw, husk and so on will be mixed with coal for combustion in the Project, which will reduce the emission of greenhouse gases(GHG) while achieving the integrated utilization of agricultural waste materials. It is estimated that the project activity will consume 166,540 tons of biomass residues and reduce the consumption of 71,380 tons of standard coal equivalent, thus generating GHG emission reductions of about 146,882 tCO2e per year. Acheng District, Harbin City of Heilongjiang Province, listed one of the 500 major counties of marketable grain production, has 720.36km2 of arable land, and was once honored “Advanced Unit for Grain Production” and “Rice Hometown of China”. Within a radius of 30km around the Project, there are approximately 400,000 tons of rice straw and husk per year which have not been utilized and are left to decay or burnt in an uncontrolled manner, resulting in serious pollution to the local environment. The Project clearly fits into the development priority of China, and will not only supply electricity utilizing renewable energy, but also contribute to sustainable development of the local community, the host country and the world by means of: reducing 629 tons of SO2 emission and 150.13 tons of TSP discharge per year via an decrease of coal consumption1; mitigating the water pollution, air pollution and landscape pollution resulting from leaving the straw to decay or burning it in an uncontrolled manner; creating 60 long term positions for local residents required by the fragmenting and prilling processes of the Project. A.3. Project participants: >> Participants to the project activity are the following: 1 EIA approval of the Project PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 3 Kindly indicate if the Party Name of Party involved Private and/or public entity(ies) project involved wishes to be considered as (*) ((host) indicates a host participants (*) project participant Party) (as applicable) (Yes/No) Heilongjiang Suibao Cogeneration Co., Ltd. P.R.China (host) No (Project owner) Carbon Capital Management, Inc. (Japan). Japan No (Project buyer) More detailed contact information on the Participants is provided in Annex 1. A.4. Technical description of the project activity: A.4.1. Location of the project activity: A.4.1.1. Host Party(ies): >> The Host Country is the People’s Republic of China. A.4.1.2. Region/State/Province etc.: >> Heilongjiang Province A.4.1.3. City/Town/Community etc: >> Acheng District, Harbin City A.4.1.4. Detail of physical location, including information allowing the unique identification of this project activity (maximum one page): >> The Project, with the geographical coordinates of east longitude of 126°35′17″and north latitude of 45°19′ 22″, is located in the eastern region of Acheng District, Harbin City of Heilongjiang Province. Figure 1 is a map showing the location of the Project. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 4 The Project . Figure 1. Map showing the location of the Project A.4.2. Category(ies) of project activity: >> This category would fall within sectoral scope 1: energy industries (renewable energy) and sectoral scope 4: Manufacturing industries. A.4.3. Technology to be employed by the project activity: >> Within a radius of 30km surrounding the project site, biomass residues composed primarily of rice straw and husk amount to 400,000 tons, which are left to decay in the field or burnt in an uncontrolled manner. This not only pollutes the environment, but also wastes a great amount of renewable energy. Heilongjiang Suibao Cogeneration Co., Ltd. currently has 2 sets of 75t/h coal-fired circulating fluidized bed boiler and 2 sets of 35t/h coal-fired chain grate boiler which consume a great deal of coal each year. Consumption of coal will not only emit CO2, but also emit a great amount of SO2 and dust, resulting in serious environmental pollution to the area of the project site. The Project involves making retrofit to the 2 sets of 75t/h coal-fired circulating fluidized bed boiler and 2 sets of 35t/h coal-fired chain grate boiler, enabling the combustion of biomass residues (accounting for 80%) mixed with coal in the 4 boilers. In order to enhance the efficiency of biomass residues combustion, a set of biomass residues prilling PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 5 system will be added into the Project, which will prill the rice straw and then mix the rice straw pellet with rice husk and coal according to a certain mass ratio (50% for rice straw pellet, 30% for rice husk and 20% for coal) and delivers them into the boilers for combustion to produce steam. Major technical parameters of the key equipments employed by the Project are illustrated as follows: 75t/h coal-fired 75t/h coal-fired 35t/h chain grate 35t/h chain grate Boiler circulating fluidized circulating fluidized boiler boiler bed boiler bed boiler Type YG-75/3.82-M YG-75/3.82-M YG-35/3.82-M YG-35/3.82-M Nameplate 85% 85% 83% 83% efficiency Time when the boiler was put into Nov., 2004 Dec., 2004 Dec., 1991 Dec., 1991 operation Operational life of 20 years 20 years 30 years 30 years the boiler Remaining operational life of 16 years 16 years 13 years 13 years the boiler Manufacturer Jinan boiler Co. Ltd Jinan boiler Co. Ltd Jinan boiler Co. Ltd Jinan boiler Co. Ltd All the equipments employed by the Project are manufactured by domestic manufacturers, thus no technical transfer from abroad is involved. A.4.4 Estimated amount of emission reductions over the chosen crediting period: >> It is expected that the project activities will generate emission reductions of about 146,882 tCO2e per year over a 10-year fixed crediting period from 1st. Jan, 2010 to 31st. Dec, 2019. Annual estimation of emission Years reductions in tonnes of CO2e 2010 146,882 2011 146,882 2012 146,882 2013 146,882 2014 146,882 2015 146,882 2016 146,882 2017 146,882 2018 146,882 2019 146,882 Total estimated reductions (tonnes of CO2e) 1,468,820 Total number of crediting years 10 Annual average over the crediting period of 146,882 estimated reductions (tonnes of CO2e) A.4.5. Public funding of the project activity: PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 6 >> There is no public funding from Annex I Parties for this Project. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 7 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: >> Approved baseline and monitoring methodology AM0036 ver 02.1 – “Fuel switch from fossil fuels to biomass residues in boilers for heat generation” is adopted by the Project. According to methodology AM0036, the following tools are also adopted by the Project: “Tool for the Demonstration and Assessment of Additionality” ver 05.2 “Tool to determine methane emissions avoided from disposal of waste at a solid waste disposal site” ver 04 For more information about the methodology and tools, please refer to: http://cdm.unfccc.int/methodologies/PAmethodologies/approved.html B.2 Justification of the choice of the methodology and why it is applicable to the project activity: >> According to the Feasibility Study Report, the Project meets all the applicability conditions of the approved baseline and monitoring methodology AM0036, details of which are as follows: Scenario Applicability condition Explanation 1 The methodology is applicable to project activities that switch from use of The Project falls into (a) of Scenario 1 fossil fuels to biomass residues, in existing and, where applicable new, of project activities listed in Table 1 boilers. The methodology is applicable to project activities described in of methodology AM0036 – “Retrofit Table 1 of methodology AM0036.