PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 1 CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-PDD) Version 02 - in effect as of: 1 July 2004) CONTENTS A. General description of project activity B. Application of a baseline methodology C. Duration of the project activity / Crediting period D. Application of a monitoring methodology and plan E. Estimation of GHG emissions by sources F. Environmental impacts G. 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 Annex 5: Letter of Approval by Mexican DNA This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 2 SECTION A. General description of project activity A.1 Title of the project activity: Quimobásicos HFC Recovery and Decomposition Project Version 1.0 July 2005 A.2. Description of the project activity: The project activity primarily aims at reducing HFC 23 emissions by recovering this gas that currently is released to the atmosphere, funded through the sale of carbon credits in the context of the Clean Development Mechanism (CDM) of the Kyoto Protocol. HFC 23 (CHF3) is a by-product from HCFC 22 (CHClF2) production. It is of low toxicity but it is a powerful greenhouse gas (GHG), with a large global warming potential (GWP=11,700, as agreed on for the First Commitment Period of the Kyoto Protocol.1). Emissions of HFCs will be controlled under the Kyoto Protocol. There are however no national or regional regulations with restrictions on the emission of HFC 23 in Mexico. There are in fact no governmental regulations with quantified emission limitations in any non-Annex I country at this point. At present, most of the HFC 23 generated as a by-product of HCFC 22 production in Mexico is released to the atmosphere. Quimobásicos S.A. de C.V. will lead this project that involves the collection of the HFC 23 generated as a by-product of HCFC 22 production at its plant located in Monterrey, Mexico. The waste gas will be captured and condensed using liquid nitrogen as cooling media. Finally, it will be re-gasified and transported to an EPA regulated incineration facility located in the United States of America, in which the gas will be decomposed by thermal oxidation. Quimobásicos S.A. de C.V. is an affiliated company of Grupo Cydsa, a Mexican conglomerate, legally constituted in 1961. It produces gases for refrigeration, propellants, foaming agents, and other applications and commercializes them in the Mexican, Latin America, North American and Asian markets. Quimobásicos is a joint venture between Cydsa (51%) and Honeywell Inc. (49%) of the United States of America. Honeywell is a diversified technology and manufacturing leader of aerospace products and services; control technologies for buildings, homes and industry; automotive products; power generation systems; specialty chemicals; fibers; plastics and advanced materials. Currently, Quimobásicos S.A. de C.V. is the only one in Mexico that produces CFCs and HCFC 22. It also commercializes non-ozone-depleting refrigerants and blends. Article 5.3 of the Kyoto Protocol establishes: “The global warming potentials used to calculate the carbon dioxide equivalence of anthropogenic emissions by sources and removals by sinks of greenhouse gases listed in Annex A shall be those accepted by the Intergovernmental Panel on Climate Change and agreed upon by the Conference of the Parties at its third session. Based on the work of, inter alia, the Intergovernmental Panel on Climate Change and advice provided by the Subsidiary Body for Scientific and Technological Advice, the Conference of the Parties serving as the meeting of the Parties to this Protocol shall regularly review and, as appropriate, revise the global warming potential of each such greenhouse gas, taking fully into account any relevant decisions by the Conference of the Parties. Any revision to a global warming potential shall apply only to commitments under Article 3 in respect of any commitment period adopted subsequent to that revision.” 1 This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 3 HFC 23 is an inevitable by-product of the HCFC 22 manufacturing process. HFC 23 is typically generated at a very small mass ratio of the HCFC 22 production. A mass ratio of 2.44% is used for this project in order to have an ex-ante estimation of emission reductions. Actual HFC 23 decomposed along the crediting period will be measured within the monitoring plan. It is expected to generate 6,727 tonnes of HFC 23 at the plant of Quimobásicos in the whole crediting period. In the absence of the proposed CDM project this gas would be released to the atmosphere. By recovering and destroying the HFC 23, the project has the capacity to produce 78,700,127 tonnes of CO2-equivalent emission reductions over a 21-year time frame. In this project, Quimobásicos will install equipment for cryogenic condensation to the currently operating HCFC 22 manufacturing plant by transferring new technology that is not currently used by the refrigerant gas industry in Mexico. This technology transfer will contribute to the reduction of GHG emissions, which would otherwise be released to the atmosphere if the project were not implemented. The acquisition of this technology will contribute to sustainable development by giving economic benefits (CER related revenue) and technical benefits (technology transfer) to Mexico, beyond those related to climate change mitigation. It is in accordance with the State Development Plan of Nuevo León, which promotes the development and use of new technologies to preserve the environment. The project has the written approval of Mexican DNA (Comité Mexicano para Proyectos de Emisiones y de Captura de Gases de Efecto Invernadero) for voluntary participation, confirming that the project supports sustainable development (see Annex 5). A.3. Project participants: Table 1: Project participants Name of Party involved Private or public entity Project participant Mexico (Host) Quimobásicos S.A. de C.V.: Private Yes The Netherlands Honeywell Fluorine Products Europe B.V.: Private Yes To be confirmed See Contact Information 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): United Mexican States A.4.1.2. Region/State/Province etc.: State of Nuevo León This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board A.4.1.3. page 4 City/Town/Community etc: Municipality of Monterrey A.4.1.4. Detail of physical location, including information allowing the unique identification of this project activity (maximum one page): The project is going to be developed at the Quimobásicos plant, located in the Municipality of Monterrey, in the northeast of Mexico (Figure 1). Monterrey is the capital of the State of Nuevo León. Nuevo León has 3.8 million inhabitants (Census 2000), and has an area of 64,210 km2, representing the 3.3% of the national territory. Nuevo León includes 51 municipalities, and its limits are Coahuila in the North, San Luis Potosí and Tamaulipas in the South, Coahuila, San Luis Potosí, and Zacatecas in the West, and Tamaulipas in the East (Figure 2). Monterrey was founded in 1596, and is the third largest city in Mexico. It is considered the technological and industrial capital of the country (Figure 3). Figure 1: Map of Mexico This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 5 Figure 2: Map of Nuevo León State Figure 3: Map of Monterrey Municipality Quimobásicos Plant This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 6 A.4.2. Category(ies) of project activity: The project is mainly categorized in Category 11: “Fugitive emissions from production and consumption of halocarbons and sulphur hexafluoride” in the scope of the project activities listed in the Sectoral Scope for accreditation of operational entities. The methodology AM0001, applied to this project, is within this category 11. A.4.3. Technology to be employed by the project activity: The main reaction in the HCFC 22 production is: 6 HF + 3 CHCl3 CHCl2F (=HCFC 21) + CHClF2 (=HCFC 22) + CHF3 (=HFC 23) + 6 HCl In the HCFC 22 manufacturing process (Figure 4), HFC 23 is inevitably generated as a by-product.2 Water G 22 Plant NaOH NaOH H2SO4 Catalyst Separation Tower Tank HF Fog Tower HCl Absorption Tower Alkaline Towers Acid Tower REACTOR From G 21 Separation Column Tank CHCl3 Tank HCl 30% G-22 Vent G-22/ G23 To Fog Tower G-21/ G22 G-21/ CHCl3 To Reactor Distillation Towers Scavengers Figure 4: HCFC 22 production process at Quimobásicos’ plant 2 In Quimobásicos’ plant HCFC 22 and HFC 23 are called G 22 and G 23, respectively. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 7 There is no Mexican governmental regulation on the production of HCFC 22 allowed and on the quantities of HFC 23 that may be emitted to the atmosphere; so all of this HFC 23 has historically been emitted to the atmosphere. In this project, the waste gas containing HFC 23 will be captured and condensed to separate the fluorocarbon portion from the waste gas stream (other components being non-condensable gases from air). Then it will be re-gasified, and transported to an incineration plant in which HFC 23 will be completely decomposed by thermal oxidation. The reduction in GHG emissions will be verified through measuring the amounts of HFC 23 decomposed that would otherwise have been emitted to the atmosphere if this project were not implemented. Waste gas condensation In this project, the company Quimobásicos will install equipment for cryogenic condensation of the waste gas vent stream containing the HFC 23 to the currently operating HCFC 22 manufacturing plant. Figure 5 shows the liquid Nitrogen condensation system that will be installed at Quimobásicos’ plant to capture the waste gas containing HFC 23. Effluent Outlet Condenser Condenser Liquid Nitrogen Gas Nitrogen N2 Gas Precooler Effluent Inlet Recovered G23 and G22 Collection Tank Transfer Pump Heater Figure 5: Condensate operation This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 8 As a brief description of the process, the waste gas stream is first made to pass through a molecular sieve to eliminate the humidity of the gas. The sieve will need to be regenerated (heated to volatilize trapped water) so a second sieve is needed to achieve continuous operation (one is operating while the second is regenerating). It is important to eliminate humidity since, otherwise, it will deposit as ice on the heat exchange surfaces of the condenser, which eventually reduces condensation efficiency. Since it is not possible to avoid completely water slippage, two condensing units are provided. Then, when operating unit needs to be stopped for defrost, second unit becomes operational; the cycle repeats and plants switched as required in order to maintain process performance and availability. The dry waste gas is then pre-cooled with the non-condensed gas phase coming from the condenser (the non-condensable portion of the waste stream composed mainly of nitrogen and oxygen from air). The pre-cooled stream enters at the bottom of the condenser and, flowing upwards, is put into contact with a set of heat exchanging coils. Inside the coils, liquid nitrogen at 10 kg/cm2 is injected at the top of the condenser and is forced to flow downwards. The counter currently contacted streams exchange heat through the walls of the coil. The fluorocarbons stream cedes energy, becoming cold and changing from gas to liquid phase (condensation). The nitrogen stream accepts the energy lost by the fluorocarbons, and changes from liquid to gas phase. The liquefied fluorocarbon stream, approximately at –90 °C, is captured in a collection tank with a capacity of 625 liters for short-term storage. HFC 23 Transportation In order to deliver the waste fluorocarbon to the off-site incineration facility, an special type of containers design to hold gases at high pressure will be utilized; such containers are broadly used by the industrial-gas manufacturers to safely transport products such as helium, hydrogen, nitrogen, among others high pressure gases. Such containers are generally regarded as “tubes” of diverse specifications (materials of construction, holding pressure), and an array of several tubes for highway (car) transportation is called a “tube trailer”. The Communications and Transportation Secretary (Secretaría de Comunicaciones y Transportes –SCT) in México and the Department of Transportation (DOT) in the U.S.A. are responsible for regulating the type of tube, maximum pressure/density per tube, total payload, etc., permitted for highway transportation. The liquefied waste fluorocarbon (which is not flammable and non toxic) is first vaporized (changed from liquid to gas phase) through a heat exchanger (see Figure 5), before it is loaded to each tube (individually) using a positive displacing bomb. Figure 6: Tube trailer This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 9 HFC 23 Decomposition The HFC 23 waste destruction service is provided by Residuos Industriales Multiquim (RIMSA), a hazardous waste management company based in Monterrey, Mexico. The HFC 23 waste gas will be physically incinerated by Onyx Environmental Services LLC (Onyx), a U.S.A. based environmental service provider. Both, RIMSA and Onyx, are wholly owned by the multinational group Veolia Environment of France. Onyx owns two incineration facilities in U.S.A., one located in Port Arthur (Texas) and the other one in Sauget (Illinois). The HFC 23 from Quimobásicos will be transported to Port Arthur, where it will be almost completely destroyed.3 The hazardous waste incinerator located in the city of Port Arthur is operated under permit No. HW-50212-001, issued by the Texas Natural Resource Conservation Commission (TNRCC), and under authorization by the Environmental Protection Agency (USEPA) region 6, for Toxic Substance Control Act (TSCA) purposes. As per their permit, the Port Arthur facility is allowed to accept most hazardous and non-hazardous wastes. Onyx has extended experience on the destruction of fluorocarbons and other fluorine containing wastes generated both domestically (by local producers) and internationally (currently destroying CFCs under a Canadian Government program). During 2004, the Port Arthur facility destroyed 57,362 tonnes of wastes, of which 928 tonnes were Fluorocarbon based residues (1.62% of total). As shown in Figure 7, the Port Arthur destruction process begins at a large rotary kiln incinerator. The kiln is a refractory lined unit 18 m (60 ft) long with an effective inside diameter of 4.3 m (14 ft); it normally operates at temperatures above 700°C (1,300°F). Under regular operation, the kiln receives a mix of pumpable (liquids and sludge), solid (bulk solids, drums, shredable containers) and sometimes gaseous wastes through different feeding systems at the front (upper side) wall of the kiln. A centrally mounted girth gear powered by an electric motor rotating at 0.3-3.0 rpm drives the rotary kiln. Wastes are forced to travel the entire length of the kiln chamber before exiting; residence time of solids in the kiln is approximately 30 to 90 minutes and 5 to 10 seconds for gases. Solid ashes (non-combustible products) leave the kiln at the discharge (lower) end through a refractory lined transitional disengaging chamber; it drops into the ash removal system and then is conveyed into roll-off boxes for transport and disposal. The combustion gases pass through the disengaging chamber and into the Secondary Combustion Chamber (SCC) or “afterburner”. The SCC is a refractory lined vertical cylinder with overall inside dimension of approximately. 24 m (80 ft) high by 5.5 m (18 ft) in diameter which is equipped with eight 15 MMBtu/hr tangentially fired burners that feed energetic liquid wastes or auxiliary fuel to raise the gas temperature and to create a highly turbulent zone for gas mixing. Depending on the type of wastes being burned, the temperature at the SCC is maintained above 1015°C (1,864ºF) for RCRA4 (hazardous waste) and above 1,100°C (2,012ºF) for TSCA5 (toxic wastes such as PCBs); gas phase residence time in the SCC combustion chamber is 2 to 5 seconds. The hot gases leave the SCC through a refractory lined duct and enter the Air Pollution Control Train (APCT). Solids from the SCC (slag) drop into a water bath and are cooled prior to being conveyed to the slag roll-off box for transport and disposal. The APCT is a wet, multiple unit gas cleaning system specifically designed for removing acid gases and particulates. First, the gases are adiabatically quenched from above 1000°C to 85°C (185ºF) using water and recirculated scrubber liquid, thus eliminating the potential formation of Dioxins 3 Both Onyx incineration facilities are allowed to destroy fluorocarbons. If for any reason, destroying HFC 23 from Quimobásicos in Port Arthur is not possible, Onyx will send the HFC 23 to Sauget’s plant. 4 RCRA stands for Resource Conservation and Recovery Act. RCRA gave EPA the authority to control hazardous waste from “cradle-to-grave”. This includes the generation, transportation treatment, storage, and disposal of hazardous waste. RCRA also set forth a framework for the management of non-hazardous wastes. 5 TSCA stands for Toxic Substances Control Act. TSCA controls high-risk compounds such as PCBs, asbestos, vinyl chloride (among others) to prevent unreasonable risks of injury to health or the environment associated with the manufacture, processing, distribution in commerce, use, or disposal of chemical substances. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 10 (Dioxin/Furan emissions shall not exceed 0.40 ng toxicity equivalent/dscm corrected to 7% oxygen, according to the plant’s emissions permit). Quench tower solids are cooled in a water bath. The collected solids are conveyed to a roll-off box for transport and disposal. Secondly, the cooled gases are scrubbed for acid gases and larger particulates in two parallel packed bed absorbers, where acidic components are absorbed and neutralized with a recirculating water/caustic solution. Third, the gas is scrubbed for fine particulates in two parallel trains consisting in four stage ionizing wet scrubbers. Finally, the resulting cleaned flue gas exits the 40 m (130 ft) stack, after the gas passes through a demister. Aqueous effluents are first clarified and neutralized before being deep well injected into a sand formation at 2.2 km below the surface. Solid wastes are separated, filtered (when wet) and shipped to several disposal facilities for stabilization and landfilling. For the specific Quimobásicos operation, the tube trailer containing the HFC 23 waste gas will be received and weighted (at the plant gate). The tube trailer will be documented and stored until burning plan schedules its destruction. The complete unloading operation is performed under internal Standard Division Practice # 2761R6 “Direct Feed System Operation”. The practice describes the preparation of the DFSC (Direct Feed Safety Checklist), training on the DFSC, load receiving, sampling and staging, hook up, check of strainers, purge of feed and return lines, preparation of tanker/trailer for unloading, recirculation process, tanker/trailer raising, unloading/feeding process, system flushing, cleaning of strainers, and disconnecting and releasing of tanker/trailer. The Standard Practice assures a safe and leak-free feeding of the waste to the incinerator. As a broad description of the feeding process, the tube trailer is first placed in the fluorinated products injection port. The trailer is sited on calibrated load cells, so the injected material will be weighed during the unloading operation (without the car-truck). All connections to the tube trailer manifold are performed before the unloading operation begins; the pressure of the HFC 23 waste from the tubes is lowered to 7 atm (100 psi) with a regulating valve while leaving the tubes. An ambient vaporizer installed after the pressure-regulating valve avoids any mixed feed (liquid-gas) before entering the direct feed line. The mass flow entering the incinerator is controlled by a valve connected to the Distributed Control System (DCS) of the plant. The tip of the direct feed line injects the HFC 23 waste gas 2 m (7 ft) deep at the front wall of the rotary kiln. The HFC 23 will be transformed in the kiln and SCC to carbon dioxide and hydrofluoric acid, according to the following reaction: CHF3 (=HFC 23) + O2 CO2 + 3 HF A minimum of 99.99% (typically more than 99.9999%) Destruction Removal Efficiency (DRE). for RCRA and more than 99.9999% for TSCA wastes is achieved by the Onyx facility at Port Arthur. The expected destruction efficiency for the HFC 23 waste is higher than 99.999%. A specific Test Burn (considering EPA’s Comprehensive Performance Test protocol pursuant to 40 CFR part 63, subpart EEE) will be performed at the beginning of the Quimobásicos operation to define the actual specific DRE. Considering the scale and operating conditions (higher residence time) at the Onyx facility, it is expected that a more complete destruction of the waste will be attained, compared to a dedicated incinerator unit that could have being installed at Quimobásicos’ site. The capacity of the Port Arthur facility to process fluorinated wastes is by far greater than the amount of HFC 23 waste involved in the Quimobásicos operation. It is expected that a few days every other month will be enough for the destruction of the waste. The Quimobásicos destruction operation will not require any incremental fuel. Normally, heat from energetic wastes suffices the energy requirements to maintain temperatures both in the rotary kiln and the Secondary Combustion Chamber. The permanent minimal fuel (natural gas) feed to kiln and SCC serves safety purposes (to avoid a flame-out in case of an operation disruption, such as a major power outage) and is independent of the type or amount of fluorine containing waste being destroyed. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 11 Figure 7: HFC 23 decomposing operation A.4.4. Brief explanation of how the anthropogenic emissions of anthropogenic greenhouse gas (GHGs) by sources are to be reduced by the proposed CDM project activity, including why the emission reductions would not occur in the absence of the proposed project activity, taking into account national and/or sectoral policies and circumstances: The proposed CDM project would reduce the emissions of GHG by capturing and transporting to a decomposition facility the HFC 23 generated as a by-product of HCFC 22 production at Quimobásicos’ plant. If the proposed project activities were not implemented, all HFC 23 would be emitted to the atmosphere. Additionality is demonstrated using the procedures established in AM0001: At present, there are no quantified governmental effluent controls or obligations to reduce emission of HFC 23 in Mexico. (As far as we are aware, there are no quantitative limits in any non-Annex I country.) It is unlikely that any such limits on emissions would be imposed in the near future. In fact, given the cost and complexity of suitable abatement technologies, it is This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 12 unlikely that a quantitative limit is introduced until a country adopts a limitation/reduction commitment under the Kyoto Protocol. Considering the situation that some regulations to limit HFC 23 quantitatively are to be introduced in Mexico in the future, the methodology includes the discounting provision of the amount of HFC 23 consistent with the regulation to be adopted. Since installation of equipment for condensation of the waste gas, and the HFC 23 transportation to the decomposition facility require significant investment without additional economic benefits, there are no commercial incentives for Quimobásicos (or other companies in Mexico) to implement the activities mentioned in this project at present and in the future, so long as domestic regulation governing emission limits does not exist. It is reasonable therefore to set such a scenario as the baseline. As for the assumption that the effect of this project continues during the crediting period, this may be judged as appropriate from the following viewpoints: Referring to HCFC 22 manufacturing, the phase out program set by the Montreal Protocol for HCFCs in developing Countries, allows for its continued use until 2040; at that time, consumption as refrigerant and blowing agent should be banned. Nevertheless, HCFC 22 used as raw material (feedstock) for fluoropolymer production is not regulated by Montreal, and may continue indefinitely. Since the production of HCFC 22 can be continued, HFC 23 would be produced simultaneously as a by-product. Quimobásicos will have a second plant available for HCFC 22 production, since it will stop CFC production during 2005 (considering the agreement with the Montreal Protocol Multilateral Fund, decision UNEP/OzL.Pro/Excom/40/50 Annex V) and such facility has “swing” capability (can produce either CFC 11/12 or HCFC 22). Both plants at the site have more than 20 years operation history. In any above cases, the amount of gases actually decomposed will be measured directly. Other GHGs, such as CO2, which will be emitted through the transport of compressed HFC 23, together with direct/indirect CO2 emissions accrued from energy consumption necessary for operating the facilities will be counted as emissions corresponding to the project scenario. The amount of GHG emission reductions by this project is expected to be around 78,700,127 tonnes of CO2-equivalent over a 21-year time frame, as shown in section A.4.4.1. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board A.4.4.1. crediting period: page 13 Estimated amount of emission reductions over the chosen Table 2: Estimation of total emission reductions during the 21-year crediting period Year Annual estimation of emission reductions (tonnes of CO2 e) 2006 3,747,625 2007 3,747,625 2008 3,747,625 2009 3,747,625 2010 3,747,625 2011 3,747,625 2012 3,747,625 2013 3,747,625 2014 3,747,625 2015 3,747,625 2016 3,747,625 2017 3,747,625 2018 3,747,625 2019 3,747,625 2020 3,747,625 2021 3,747,625 2022 3,747,625 2023 3,747,625 2024 3,747,625 2025 3,747,625 2026 3,747,625 Total estimated reductions (tonnes of CO2e) Total number of crediting years Annual average over the crediting period of estimated reductions (tonnes of CO2e) 78,700,127 21 3,747,625 For more details please see spreadsheet MGM_BSL_QB_ER.xls. A.4.5. Public funding of the project activity: Quimobásicos will not receive any national or international public funding whatsoever for the development of this project. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 14 SECTION B. Application of a baseline methodology B.1. Title and reference of the approved baseline methodology applied to the project activity: There is an already approved methodology available in the UNFCCC website, namely AM0001, which is designated: “Incineration of HFC 23 Waste Streams”. For the current project, the revision to approved methodology AM0001 adopted by the CDM Executive Board in its nineteenth meeting of May 2005 is considered. B.1.1. Justification of the choice of the methodology and why it is applicable to the project activity: This methodology is applicable to HFC 23 (CHF3) waste streams from an existing HCFC 22 production facility with at least three years of operating history between beginning of the year 2000 and the end of the year 2004 where the project activity occurs and where no regulation requires the destruction of the total amount of HFC 23 waste. The proposed project activities are located at the fluorocarbon production facility of Quimobásicos, in Mexico, which has been in operation since 1963. Quantitative regulation of HFC 23 emissions does not currently exist in Mexico (nor is it planned). Referring to HCFC 22 manufacturing, the phase out program set by the Montreal Protocol for HCFCs in developing Countries, allows for its continued use until 2040; at that time, consumption as refrigerant and blowing agent should be banned. Nevertheless, HCFC 22 used as raw material (feedstock) for fluoropolymer production is not regulated by Montreal, and may continue indefinitely. Since the production of HCFC 22 can be continued, HFC 23 would be produced simultaneously as a by-product. The project therefore meets applicability criteria of the draft revision of AM0001. B.2. Description of how the methodology is applied in the context of the project activity: Waste HFC 23 is typically released into the atmosphere. Thus, under absent regulations to restrict HFC 23 emissions, any HFC 23 not recovered for sale is assumed to be released to the atmosphere. GHG emission reduction achieved by the project activity is the quantity of waste HFC 23 actually destroyed, less GHG emissions generated by the recovery-to-decomposition process6, less leakage due to the recovery-to-decomposition process. Specifically, GHG emission reduction achieved by the project activity during a given year is equal to the quantity of HFC 23 waste destroyed by the incineration facility less the baseline HFC 23 destruction during that year multiplied by the GWP of HFC 23, less GHG emissions generated by the recovery-to-decomposition process, less GHG leakage due to this process. 6 For this specific project, the recovery-to-decomposition process involves the collection and condensation of the waste gas, the vaporization of the liquefied waste fluorocarbon stream, the compression of the resulting gas, its transportation to the incineration plant, and the incineration process itself where HFC 23 is destroyed. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 15 The baseline quantity of HFC 23 destroyed is the quantity of the HFC 23 waste stream required to be destroyed by the applicable regulations, if any. In the absence of regulations requiring the destruction of HFC 23 waste the typical situation in non-Annex I Parties the HFC 23 waste is typically released to the atmosphere so the baseline corresponds to zero destruction. To date, domestic law of Mexico does not restrict HFC 23 emissions at all. This condition will be checked annually and will be modified as appropriate, as specified in the approved methodology AM0001, if some regulation were introduced in Mexico. The emissions due to the recovery-to-decomposition process include the emissions coming from fuel consumption during HFC 23 transportation and incineration process, the emissions of HFC 23 not destroyed by the incineration facility, and GHG emissions of the destruction process in the incineration plant. All GHG emissions from HFC 23 incineration process are not considered in this project since they occur in an Annex I country (United States of America). These emissions are consequence of the current practice as a part of routine operation of the incineration plant, which are controlled by the corresponding regulation authorities of US7. Such emissions are already accounted in the US GHG emission inventory. Therefore, project emissions only include emissions due to transportation. These emissions are calculated by multiplying the quantity of HFC 23 transported during the year by the specific emission factor, estimated below in Section D.2.1.2. Leakage corresponds to emissions of GHG due to the project activity that occur outside the project boundary. The sources of leakage due to the condensation, conditioning (vaporization and compression before trailer tubes load), and incineration processes are GHG emissions associated to the production of electricity purchased to the suppliers and CO2 emissions due to transport of solid waste (slag) to the final disposal. The leakage considered for this particular project are these related with purchased electricity for the condensation and conditioning processes, because the other leakage correspond to an Annex I country, and is disregarded in this project. In addition, emissions from electricity generation consumed by the producer of the liquid Nitrogen used during the condensation of the waste gas, are also considered as leakage for this project. To exclude the possibility of manipulating the production process to increase the quantity of waste, the quantity of HFC 23 waste is limited to a fraction (w) of the actual HCFC 22 production during the year at the plant. According to AM0001, the value of w shall be set at the lowest actual value of the three most recent years of operation up to 2004 to a maximum of 3% (0.03 tonnes of HFC 23 produced per tonne of HCFC 22 manufactured). If insufficient data is available, the default value shall be 1.5%. In this case, historical data from Quimobásicos plant is used to calculate the (HFC 23)/(HCFC 22) production ratio. The cut-off condition is to be checked against the actual situation on an ex post basis. AM0001 should apply only to existing production sites with the existing production capacity. 7 In addition, the facility must meet the requirements of the Texas Natural Resource Conservation Commission and the Environmental Protection Agency, which guarantees that the project will not have negative local environmental impacts. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 16 “Existing production facility” is defined as HCFC 22 production facilities with at least three years of operating history between beginning of the year 2000 and the end of the year 2004, and the “existing production capacity” at these facilities (in tonnes of HCFC 22) is defined as the maximum historical annual production level during any of the last three years between beginning of the year 2000 and the end of the year 2004, including CFC production at swing plants adjusted appropriately to account for the different production rates of HCFC 22 and CFCs. For this project, the “existing production capacity” is the maximum annual production value, obtained during the 2002 – 2004 period, of the existing HCFC 22 production facility plus the adjusted CFC production of the swing plant. In the calculation of emission reductions for this specific project activity, the actual production of HCFC 22 during a year will be limited to this “existing production capacity”. Nevertheless, actual production may be higher. According to the baseline methodology, the key data used to determine ex-post the baseline scenario is given in the following table. Table 3: Baseline data Parameters Data sources Global Warming Potential HFC 23 According to Article 5, Section 3 of the Kyoto Protocol, GWP is as agreed on at COP3 Cut-off condition fraction Quimobásicos Fraction of the waste stream required to be destroyed Local regulation Variables Data sources Quantity of HFC 23 supplied to the incineration plant Quimobásicos Purity of the HFC 23 supplied to the incineration plant Quimobásicos Quantity of HFC 23 supplied to the condensation facility Quimobásicos Purity of the HFC 23 supplied to the condensation facility Quimobásicos Quantity of HCFC 22 produced in the plant Quimobásicos HFC 23 sold by the facility Quimobásicos B.3. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the registered CDM project activity: Taking into account that there is a very small market for HFC 23 in Mexico, in the absence of regulations requiring HFC 23 destruction in this country, almost all HFC 23 generated during HCFC 22 production has been and will be released to the atmosphere. The condensation facility, and the HFC 23 transportation to the destruction facility entail significant capital and operating costs. The host company would not have direct economic incentive to incur these costs in the absence of CER revenues to implement the project activity. The economic/financial/investment barriers criteria are clearly demonstrated since the project represents substantial initial investment and recurring expense to Quimobásicos, in the form of capital and operating costs. In the absence of a regulatory requirement or some financial/economic incentive, there is no rationale for implementing the project. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 17 At present, as the baseline quantity of HFC 23 destroyed is zero, the quantity of HFC 23 destroyed through project implementation is much greater than the baseline quantity destroyed (even including a minor amount of GHG emissions in the project scenario). Therefore the project activity is additional. The baseline quantity of HFC 23 destroyed is the quantity, if any, required to be destroyed by host country’s regulations. It will be checked annually during monitoring in order to see whether regulations are established or not. Our estimate of emissions over a 21- year period would fall from 78,710,308 tonnes of CO2-equivalent in the baseline to 10,181 tonnes of CO2-equivalent in the project scenario. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 18 B.4. Description of how the definition of the project boundary related to the baseline methodology selected is applied to the project activity: The project boundary encompasses the physical, geographical site of the condensation facility and the conditioning equipment in Quimobásicos plant, the route over which the compressed HFC 23 will be transported, and the incineration plant. Schematically, Figure 8 shows the project boundary, indicating GHG emission sources and leakage. CO2 emissions from purchased electricity generation N2 production facility Power plants Production of HCFC 22 Existing facility Purchased electricity Waste gas Purchased N2 CO2 emissions from HFC 23 transport Condensation and conditioning equipment New equipment Transport of compressed HFC 23 Quimobásicos plant MEXICO Project boundary US GHG emissions from HFC 23 decomposition process These emissions are not considered since they occur in an Annex I country, and they are counted in the US GHG Emission Inventory. The capacity of the facility is by far larger than the quantity of HFC 23 received from Quimobásicos, in consequence, it is expected that the GHG emissions, from the HFC 23 decomposition process, be negligible, since there are many other residues to be treated. Decomposition of HFC 23 Onyx Figure 8: Project boundary for the Quimobásicos HFC Recovery and Decomposition Project showing GHG emission sources, and leakage. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 19 For the specific project, the methodology is applied through spreadsheet MGM_BSL_QB_ER.xls to determine ex-ante baseline and project emissions, and expected emissions reductions. Following project implementation, project emissions are determined from measurements. These same measurements are used to determine baseline emissions in a dynamic manner. Thus, ex post baseline and project emissions, and emission reductions are determined from monitored data, as showed in Section D. These calculations are incorporated into the spreadsheet MGM_MVP_QB_ER.xls. B.5. Details of baseline information, including the date of completion of the baseline study and the name of person (s)/entity (ies) determining the baseline: Date of completing the final draft of this baseline section: 19/10/2004 Name of person/entity determining the baseline: Marisa Zaragozi, Ivana Cepón, and Fabián Gaioli, MGM International. Junín 1655, 1º B C1113AAQ, Buenos Aires, Argentina Tel./Fax: (54 11) 5219-1230/32 e-mail: mzaragozi@mgminter.com icepon@mgminter,com fgaioli@mgminter.com Marisa Zaragozi, Ivana Cepón, and Fabián Gaioli are not project participants. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 20 SECTION C. Duration of the project activity / Crediting period C.1 Duration of the project activity: C.1.1. Starting date of the project activity: The project is expected to be operating in January 2006. C.1.2. Expected operational lifetime of the project activity: The expected operational lifetime is 35 years. C.2 Choice of the crediting period and related information: Renewable crediting period C.2.1. Renewable crediting period C.2.1.1. Starting date of the first crediting period: C.2.1.2. Length of the first crediting period: 01/01/2006 7 years C.2.2. Fixed crediting period: C.2.2.1. Starting date: C.2.2.2. Length: N/A N/A This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 21 SECTION D. Application of a monitoring methodology and plan D.1. Name and reference of approved monitoring methodology applied to the project activity: There is an already approved methodology available in the UNFCCC website, namely AM0001, which is designated: “Incineration of HFC 23 Waste Streams”. For the current project, the revision to approved methodology AM0001 adopted by the CDM Executive Board in its nineteenth meeting of May 2005 is considered. D.2. Justification of the choice of the methodology and why it is applicable to the project activity: This methodology is applicable to HFC 23 (CHF3) waste streams from an existing HCFC 22 production facility with at least three years of operating history between beginning of the year 2000 and the end of the year 2004 where the project activity occurs and where no regulation requires the destruction of the total amount of HFC 23 waste. The proposed project activities are located at the fluorocarbon production facility of Quimobásicos, in Mexico, which has been in operation since 1963. Quantitative regulation of HFC 23 emissions does not currently exist in Mexico (nor is it planned). Referring to HCFC 22 manufacturing, the phase out program set by the Montreal Protocol for HCFCs in developing Countries, allows for its continued use until 2040; at that time, consumption as refrigerant and blowing agent should be banned. Nevertheless, HCFC 22 used as raw material (feedstock) for fluoropolymer production is not regulated by Montreal, and may continue indefinitely. Since the production of HCFC 22 can be continued, HFC 23 would be produced simultaneously as a by-product. The project therefore meets applicability criteria of the draft revision of AM0001. The spreadsheet MGM_MVP_QB_ER.xls shows the application of this monitoring methodology. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 22 D.2. 1. Option 1: Monitoring of the emissions in the project scenario and the baseline scenario D.2.1.1. Data to be collected in order to monitor emissions from the project activity, and how this data will be archived: ID number (Please use numbers to ease crossreferencing to D.3) 1 2 3 4 5 Data variable Quantity of HFC 23 supplied to the condensation process (q_HFC23CPy) Purity of the HFC 23 supplied to the condensation process (P_HFC23CPy) Quantity of HFC 23 supplied to the condensation process after purity adjustments (Q_HFC23CPy) Purity of HFC 23 supplied to the incineration plant (P_HFC23y) Quantity of compressed HFC 23 loaded into the tube trailer (q_HFC23Ty) Source of data Data unit Measured (m), calculated (c) or estimated (e) Recording frequency Proportion of data to be monitored How will the data be archived? (electronic/ paper) Comment It will be measured by two flow meters located before entering into the condensation facility. It will be measured by gas chromatography before entering into the condensation facility. Quimobásicos tonnes M Monthly 100% Paper (field record) Electronic (spreadsheet) Quimobásicos % M Monthly Sampling Paper (field record) Electronic (spreadsheet) Quimobásicos tonnes C Monthly 100% Paper (field record) Electronic (spreadsheet) It will be calculated using data number 1 and 2, as is shown in section D.2.1.2. Quimobásicos % M Monthly Sampling Paper (field record) Electronic (spreadsheet) It will be obtained by sampling in the tube trailer using gas chromatography. Paper (field record) Electronic (spreadsheet) The weight of the tube trailer will be measured during the loading of HFC 23 by using certified (calibrated) load cells. Quimobásicos tonnes M Monthly 100% This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board 6 7 8 Quantity of HFC 23 supplied to the incineration plant (q_HFC23y) Quantity of HFC 23 supplied to the incineration process after purity adjustments (Q_HFC23y) Quantity of HFC 23 lost from its collection until reaching the incineration plant (L_HFC23y) page 23 Onyx tonnes M Monthly 100% Paper (field record) Electronic (spreadsheet) Quimobásicos tonnes C Monthly 100% Paper (field record) Electronic (spreadsheet) Quimobásicos tonnes C Yearly 100% Paper (field record) Electronic (spreadsheet) 9 CO2 emissions from HFC 23 transport (CO2_Transporty) Quimobásicos tonnes C Yearly 100% Paper (field record) Electronic (spreadsheet) 10 Destruction and Removal Efficiency of HFC 23 (DREHFC23) Onyx % M On the first year of operation 100% Paper (field record) Electronic (spreadsheet) This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. The weight of the tube trailer will be measured upon reception and during the unloading of HFC 23 by using certified (calibrated) load cells. It will be calculated using data number 4 and 6, as is shown in section D.2.1.2. It will be calculated using data numbers 3 and 7, as is shown in section D.2.1.2 It will be calculated using data number 5 and the specific emission factor of the trucks, as is shown in section D.2.1.2. On the first year of operation, Onyx will not treat any other fluoride waste than the HFC 23 from Quimobásicos, to perform a specific trial burn. The specific Destruction and Removal Efficiency of the plant towards the HFC 23 will be determined. It will not be used for calculation of emission reductions. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board 11 Project emissions inside of the boundary (PEy) page 24 Quimobásicos tonnes C Monthly 100% This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. Paper (field record) Electronic (spreadsheet) It will be calculated using data number 9, as is shown in section D.2.1.2. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 25 D.2.1.2. Description of formulae used to estimate project emissions (for each gas, source, formulae/algorithm, emissions units of CO2 equ.) The emissions due to the recovery-to-decomposition process include the emissions coming from fuel consumption during HFC 23 transportation and incineration process, the emissions of HFC 23 not destroyed by the incineration facility, and GHG emissions of the destruction process in the incineration plant. All GHG emissions from HFC 23 incineration process are not considered in this project since they occur in an Annex I country (United States of America). These emissions are consequence of the current practice as a part of routine operation of the incineration plant, which are controlled by the corresponding regulation authorities of US8. Such emissions are already counted in the US GHG emission inventory. Therefore, project emissions only include emissions due to transportation. These emissions are calculated by multiplying the quantity of HFC 23 transported during the year by the specific emission factor calculated below. Project emissions within the project boundary PEy (tCO2e/year) in a year y are expressed as: PEy = E_DPy = CO2_Transporty = q_HFC23Ty E_Transporty where E_DPy: emissions due to the destruction process that includes the condensation of the waste gas, the conditioning of the liquefied waste fluorocarbon stream containing about 90% of HFC 23, the transportation of the compressed HFC 23 to the incineration plant, and the incineration process itself (tCO2e/yr) CO2_Transporty: CO2 emissions from HFC 23 transport (tCO2e/yr) q_HFC23Ty: quantity of HFC 23 loaded into the tube trailer (tHFC23/yr) E_Transporty: specific emission factor of the trucks (tCO2e/tonne HFC23) The emission factor of HFC 23 transport is calculated in the following way: 8 In addition, the facility must meet the requirements of the Texas Natural Resource Conservation Commission and the Environmental Protection Agency, which guarantees that the project will not have negative local environmental impacts. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 26 Input data9: (1) Distance travelled by truck in Mexico: 966 km each way10 (2) Truck specific fuel consumption: 3 km/litre (3) HFC 23 transported per trip by the truck: 11.6 tonnes (4) Diesel density: 0.849 kg/litre (5) Lower Heating Value of diesel: 0.04333 GJ/kg (6) Emission factor of diesel: 74.07 kgCO2/GJ Output: (7) Fuel consumption per round trip: (1) 2/(2) = 966 2/3 = 644 litres of diesel (8) Fuel consumption: (7)/(3) = 644 / 11.6 = 55.52 litres diesel/tHFC23 Emission factor of HFC 23 transport: (4) (5) (6) (8) = 0.849 0.04333 74.07 55.52 = 151.27 kgCO2e/tHFC23 During the condensation of the waste gas, the conditioning process of the liquefied waste fluorocarbon stream, and the transportation of the compressed HFC 23 from Quimobásicos’ plant to the incineration facility in the United States of America, some HFC 23 looses could occur. The quantity of HFC 23 lost (L_HFC23y) is expressed as: L_HFC23y = Q_HFC23CPy Q_HFC23y where Q_HFC23CPy: quantity of HFC 23 supplied to the condensation process after purity adjustments (tHFC 23/yr) Q_HFC23y: quantity of HFC 23 supplied to the incineration process after purity adjustments (tHFC 23/yr) The quantity of HFC 23 waste supplied to the condensation process after purity adjustments (Q_HFC23CPy) is calculated in the following way: Q_HFC23CPy = q_HFC23CPy P_HFC23CPy 9 Data provided by Quimobásicos. The distance used for emissions calculation considers the existing kilometers between Quimobásicos and Onyx plants. Strictly, only the distance between Quimobásicos’ plant and US border should be considered. Nevertheless, since the actual kilometers travelled depend on the path followed by the trucks. In order to avoid uncertainties a conservative approach is used, in which the distance from Quimobásicos’ plant to Onyx’s plant is taken into account. It can be justified due to the low contribution of those emissions. 10 This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 27 where q_HFC23CPy: quantity of HFC 23 supplied to the condensation process (tHFC23/yr) P_HFC23CPy: purity of the HFC 23 supplied to the condensation process (%) The quantity of HFC 23 waste supplied to the incineration process after purity adjustments (Q_HFC23y) is calculated in the following way: Q_HFC23y = q_HFC23y P_HFC23y where q_HFC23y: quantity of HFC 23 supplied to the incineration plant (tHFC23/yr) P_HFC23y: purity of the HFC 23 supplied to the incineration plant (%) Losses are calculated to control the processes and are implicitly taken into account because in the calculation of baseline emissions it is considered the quantity of HFC 23 supplied to the incineration plant instead of the quantity of HFC 23 at the end of the HCFC 22 production process. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 28 D.2.1.3. Relevant data necessary for determining the baseline of anthropogenic emissions by sources of GHGs within the project boundary and how such data will be collected and archived: ID number (Please use numbers to ease crossreferencing to table D.3) 3 7 12 13 Data variable Quantity of HFC 23 supplied to the condensation process after purity adjustments (Q_HFC23CPy) Quantity of HFC 23 supplied to the incineration process after purity adjustments (Q_HFC23y) Quantity of HCFC 22 produced in the plant generating the HFC 23 waste (Q_HCFC22y) HFC 23 sold by the facility generating the HFC 23 waste (HFC23_soldy) Source of data Data unit Measured (m), calculated (c), or estimated (e), Recording Quimobásicos tonnes C Monthly Quimobásicos tonnes C frequency Monthly Proportion of data to be monitored How will the data be archived? (electronic/ paper) Comment 100% Paper (field record) Electronic (spreadsheet) It will be calculated using data number 1 and 2, as is shown in section D.2.1.2. 100% Paper (field record) Electronic (spreadsheet) Quimobásicos tonnes M Monthly 100% Paper (field record) Electronic (spreadsheet) Quimobásicos tonnes M Annually 100% Paper (field record) Electronic (spreadsheet) This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. It will be calculated using data number 4 and 6, as is shown in section D.2.1.2. It is reference data to check cut-off condition and rough estimation of HFC 23 generation. See section D.2.1.4. It is reference data to check cut-off condition and rough estimation of HFC 23 generation. See section D.2.1.4. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 29 14 Baseline quantity of HFC 23 destroyed (BQ_HFC23y) Quimobásicos tonnes C Annually 100% Paper (field record) Electronic (spreadsheet) 15 Baseline Emissions (BEy) Quimobásicos tonnes C Monthly 100% Paper (field record) Electronic (spreadsheet) This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. It will be estimated taking into account local regulations and using data number 3, as is shown in section D.2.1.4. It will be calculated using data number 7 and 14, as is shown in section D.2.1.4. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 30 D.2.1.4. Description of formulae used to estimate baseline emissions (for each gas, source, formulae/algorithm, emissions units of CO2 equ.) Baseline emissions involve the HFC 23 that would be released to the atmosphere in absence of the project. Baseline emissions is equal to the quantity of HFC 23 waste destroyed by the incineration facility less the baseline HFC 23 destruction during that year multiplied by the GWP of HFC 23. The baseline quantity of HFC 23 destroyed is the quantity of the HFC 23 waste stream required to be destroyed by the applicable regulations, if any. In the absence of regulations requiring the destruction of HFC 23 waste the typical situation in non-Annex I Parties the HFC 23 waste is typically released to the atmosphere so the baseline corresponds to zero destruction. To date, domestic law of Mexico does not restrict HFC 23 emissions at all. This condition will be checked annually and will be modified as appropriate, as specified in the approved methodology AM0001, if some regulation were introduced in Mexico. Baseline emissions BEy (tCO2e/year) in a year y are described as: BEy = (Q_HFC23y BQ_HFC23y) GWP_HFC23 where Q_HFC23y: quantity of HFC 23 supplied to the incineration process after purity adjustments (tHFC 23/yr) BQ_HFC23y: baseline quantity of HFC 23 destroyed during the year (tHFC 23/yr) GWP_HFC23: Global Warming Potential of HFC 23. The approved Global Warming Potential value for HFC 23 is 11,700 tonne CO2e/tonne HFC 23. The baseline quantity of HFC 23 destroyed is the quantity of the HFC 23 waste stream required to be destroyed by the applicable regulations. In this project, the entire HFC 23 waste stream will be supplied to the recovery-to-decomposition process; in consequence, Q_HFC23CPy is the total amount of HFC 23 waste generated. Thus, baseline quantity of HFC 23 destroyed is estimated as follows: BQ_HFC23y = Q_HFC23CPy ry where Q_HFC23CPy: quantity of HFC 23 waste supplied to the condensation process after purity adjustments (tHFC 23/yr) ry: fraction of the waste stream required to be destroyed by the regulations that apply during year y For the decomposition of HFC 23 without any regulation (current status), the baseline emissions are: BEy = Q_HFC23y 11,700 This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 31 To exclude the possibility of manipulating the production process to increase the quantity of waste, the quantity of HFC 23 waste (Q_HFC23CPy) is limited to a fraction (w) of the actual HCFC 22 production during the year at the originating plant. Q_HFC23CPy ≤ Q_HCFC22y w where Q_HCFC22y: actual production of HCFC 22 during the year at the plant where the HFC 23 waste originates (tHCFC 22/yr). This value is limited to the “Existing production capacity”. For Quimobásicos, it is considered the maximum annual production value, obtained during the 2002 – 2004 period, of the existing HCFC 22 production facility plus the adjusted CFC production of the swing plant. w: waste generation rate (HFC 23)/(HCFC 22) for the originating plant. The quantity of HFC 23 used to calculate this coefficient is the sum of HFC 23 recovered for sale plus the waste HFC 23 (kg HFC 23/kg HCFC 22). The cut-off condition is to be checked against the actual situation on an ex post basis. According to AM0001, the value of w shall be set at the lowest actual value of the three most recent years of operation up to 2004 to a maximum of 3% (0.03 tonnes of HFC 23 produced per tonne of HCFC 22 manufactured). If no historical data are available, the default value shall be 1.5%. In this case, historical data from Quimobásicos plant is used to calculate the (HFC 23)/(HCFC 22) production ratio, that is set as 2.44%, since it is the lowest annual value obtained during 2002 to 2004 at the Quimobásicos plant (for more details see Annex 3). In case of Q_HFC23CPy > Q_HCFC22y w, the quantity of HFC 23 supplied to the incineration plant should be recalculated in the following way: Q_HFC23y = (Q_HCFC22y w) (L_HFC23y Q_HCFC22y w / Q_HFC23CPy) where (Q_HCFC22y w): maximum quantity of HFC 23 waste that can be considered in this project, according to the cut off condition. (L_HFC23y Q_HCFC22y w / Q_HFC23CPy): quantity of HFC 23 lost corresponding to the maximum quantity of HFC 23 waste that can be considered in this project. In addition, the amount of HFC 23 generated from the HCFC 22 production plant will be checked yearly by comparing the amount of HCFC 22 produced to the sum of the HFC 23 recovered for sale and HFC 23 decomposed. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 32 D. 2.2. Option 2: Direct monitoring of emission reductions from the project activity (values should be consistent with those in section E). D.2.2.1. Data to be collected in order to monitor emissions from the project activity, and how this data will be archived: ID number (Please use numbers to ease crossreferencing to table D.3) Data variable Source of data Data unit Measured (m), calculated (c), estimated (e), Recording frequency Proportion of data to be monitored How will the data be archived? (electronic/ paper) Comment N/A D.2.2.2. Description of formulae used to calculate project emissions (for each gas, source, formulae/algorithm, emissions units of CO2 equ.): N/A This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 33 D.2.3. Treatment of leakage in the monitoring plan D.2.3.1. If applicable, please describe the data and information that will be collected in order to monitor leakage effects of the project activity ID number (Please use numbers to ease crossreferencing to table D.3) 16 Data variable N2 consumption during the condensation process Source of data Data unit Measured (m), calculated (c) or estimated (e) Recording Quimobásicos tonnes E Monthly frequency Proportion of data to be monitored How will the data be archived? (electronic/ paper) Comment 100% Paper (field record) Electronic (spreadsheet) The weight of the N2 tank will be measured using weigh cells. (Q_Ny) 17 Electricity consumption at the N2 production plant (Q_PowerNy) Quimobásicos kWh C Monthly 100% Paper (field record) Electronic (spreadsheet) It will be calculated using data number 16 and the specific electricity consumption of the N2 production plant, as is shown in section D.2.3.2. 18 Electricity consumption by the condensation and conditioning processes at Quimobásicos plant (Q_PowerQBy) Quimobásicos kWh M Monthly 100% Paper (field record) Electronic (spreadsheet) It will be measured using electricity meter. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board 19 20 21 22 CO2 emission factor from the grid supplying electricity to the N2 production plant (E_PowerNy) CO2 emission factor from the isolated power plant supplying electricity to Quimobásicos (E_PowerQBy) CO2 emissions from electricity generation (CO2_Powery) Leakage (LEy) page 34 Latest local statistics tCO2e/ kWh C Yearly 100% Paper (field record) Electronic (spreadsheet) The emission rate is computed from the most recent official information on the Mexican electric power sector. The emission rate is computed from the most recent official information of the local energy supplier of Quimobásicos. Isolated power plant tCO2e/ kWh C Yearly 100% Paper (field record) Electronic (spreadsheet) Quimobásicos tonnes C Yearly 100% Paper (field record) Electronic (spreadsheet) Quimobásicos tonnes C Monthly 100% Paper (field record) Electronic (spreadsheet) This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. It will be calculated using data number 17 to 20, as is shown in section D.2.3.2. It will be calculated using data number 21, as is shown in section D.2.3.2. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 35 D.2.3.2. Description of formulae used to estimate leakage (for each gas, source, formulae/algorithm, emissions units of CO2 equ.) Leakage corresponds to emissions of GHG due to the project activity that occur outside the project boundary. The sources of leakage due to the condensation, conditioning, and incineration processes are GHG emissions associated to the production of electricity purchased to the suppliers and CO 2 emissions due to transport of sludge to the final disposal. The leakage considered for this particular project are these related with purchased electricity for the condensation and conditioning processes, because the other leakage correspond to an Annex I country, and is disregarded in this project. In addition, emissions from electricity generation consumed by the producer of the N2 used during the condensation of the waste gas, are also considered as leakage of this project. Leakage LEy (tCO2e/year) in a year y are calculated in the following way: LEy = CO2_Powery = Q_PowerNy × E_PowerNy + Q_PowerQBy × E_PowerQBy where CO2_Powery: CO2 emissions from electricity generation (tCO2e) Q_PowerNy: electricity consumption at the N2 production plant (kWh) E_PowerNy: emission factor from the grid supplying electricity to the N2 production plant (tCO2e/kWh). It corresponds to the CO2 emission factor of the Mexican grid (Comisión Federal de Electricidad – CFE). Q_PowerQBy: electricity consumption by the condensation and conditioning processes at Quimobásicos plant (kWh) E_PowerQBy: emission factor from the isolated power plant supplying electricity to Quimobásicos (tCO2e/kWh) Electricity consumption at the N2 production plant results from multiplying the N2 consumption during the condensation process (Q_Ny) by the specific electricity consumption of the N2 production plant (EQ_PowerN), whose value is considered fixed and equal to 0.88 MWh/tN2. Thus LEy = Q_Ny × EQ_PowerN × E_PowerNy + Q_PowerQBy × E_PowerQBy D.2.4. Description of formulae used to estimate emission reductions for the project activity (for each gas, source, formulae/algorithm, emissions units of CO2 equ.) GHG emission reduction achieved by the project activity is the quantity of waste HFC 23 actually destroyed less GHG emissions generated by the recovery-to-decomposition process less leakage due to the recovery-to-decomposition process. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 36 Specifically, GHG emission reduction (ERy) achieved by the project activity during a given year (y) is equal to the quantity of HFC 23 waste from HCFC 22 production facility (Q_HFC23y) destroyed by the incineration facility less the baseline HFC 23 destruction (BQ_HFC23y) during that year multiplied by the GWP of HFC 23 (GWP_HFC23), less GHG emissions generated by the recovery-todecomposition process (E_DPy), less GHG leakage (Ly) due to this process. Emission reductions ERy (tCO2e/year) in a year y are calculated as ERy = BEy – (PEy+ LEy) = (Q_HFC23y BQ_HFC23y) × GWP_HFC23 (q_HFC23Ty × E_Transporty + + Q_Ny × EQ_PowerN × E_PowerNy + Q_PowerQBy × E_PowerQBy) This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board D.3. page 37 Quality control (QC) and quality assurance (QA) procedures are being undertaken for data monitored Data (Indicate table and ID number e.g. 3.-1.; 3.2.) Uncertainty level of data (High/Medium/Low) Explain QA/QC procedures planned for these data, or why such procedures are not necessary. Mass flow of HFC 23 waste gas produced will be measured by two Micro Motion flow meters placed in the entrance of the condensation system. The flow meters have an accuracy of +/- 0.35%. The flow meters will be connected to Distributed Control System (DCS) and their data will be archived in the database of the plant. 1 q_HFC23CPiy High Verification of the flow meters will be done by instrument personnel using the pattern flow meters. Calibration of the pattern flow meters will be done according to the calibration procedure of an external national or international company. The pattern flow meters will be recalibrated by an external company. The instrument supervisor shall ask the contract department for the calibration certificate from this external company. In order to have more accurate data, flow meter verification will be done weekly and, most of the time, under normal operation, both flow meters will measure the same amount of HFC 23 mass flow simultaneously. Where the flow meter readings differ by greater than 0.70%, the reason for the discrepancy will be investigated and the fault remedied. For the sake of conservativeness, the lower value of the two readings will always be used to estimate HFC 23 mass flow. 2 P_HFC23CPiy 4 P_HFC23y High It will be measured by sampling using gas chromatography before entering into the condensation facility. Verification of the equipment for gas chromatography will be carried out according to the instructive CCL-7.60201, using the HFC 23 standard. The analysis will be repeated in case of doubt regarding its veracity. High It will be obtained by sampling in each tube using gas chromatography. Verification of the equipment for gas chromatography will be carried out according to the instructive CCL-7.602-01, using the standard of HFC 23. The analysis will be repeated in case of doubt regarding its veracity. An average purity of HFC 23 will be considered as a conservative assumption, due to the similarity of the values measured in each tube. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 38 The weight of the tube trailer will be measured during the loading of HFC 23 by using load cells. Each tube will be loaded individually to avoid overloading. The tube trailer will be positioned in a truck scale that will close the loading system when reaching the specified weight. The net weight of HFC 23 contained in the tube trailer will be registered before it is transported to the incineration facility. The truck scale has a high accuracy (0.03%). Calibration of the scale will be done according to the calibration procedure set by a national or international standard. The mechanical integrity of the tube trailers to be used by Quimobásicos is assured through the tube trailer sealing verification tests. The tube trailer will be fabricated and inspected as per the Department of Transportation (DOT) Federal Rule CFR 49, paragraph 173.301, which requires for these metal containers to perform a non-destructive pressurization test prior to be issued for use. Each tube will be re-tested at least every 60 months, using the same pressurization test, as required by DOT. Each tube trailer will include at least: actual tube trailer specification, maintenance history, actual pipe and instrument diagram, specifications for each component, approved standard operating procedures. 5 q_HFC23Ty High The tube trailer will be carried by Transport Company permitted as per DOT under the “MX” nomenclature. It will be registered and approved by the FMCSA (Federal Motor Carrier Safety Administration). The truck driver will be trained and certified under HAZMAT, DOT (Office of Hazardous Materials Safety). Before loading of HFC 23, the tubes shall be visually inspected. A cylinder that has a crack or leak, is bulged, has a defective valve or a leaking or defective pressure relief device, or bears with evidence of physical abuse, fire or heat damage, or detrimental rusting or corrosion, will not be loaded and will be reported for repairs as required by DOT Rules and Regulations. The truck driver will receive and verify manifest denoting contents and “as charged” pressure, the driver will stop as required and verify container and pressure indicators to ensure that no leakage has occurred. The driver will be trained and will follow company procedures as to what to do and inspect during each mandated stop. Each tube has mechanisms to regulate the internal pressure. Most of the time, under normal conditions, internal pressure is much lower that maximum pressure admitted by the tube. However, in case of a greater internal pressure develops, first a safety flange ruptures, secondly, a relief valve opens until set point pressure returns to the tube, realising an small portion of the waste gas. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 39 The weight of the tube trailer will be measured during the un-loading of HFC 23 by using certified (calibrated) load cells. For the sake of conservativeness, the lower value between Quimobásicos scale and Onyx scale measurements will always be used to estimate the quantity of HFC 23 supplied to the incineration facility. The tube trailer will be documented and stored until burning plan schedules its destruction. 6 q_HFC23y High The complete unloading operation is performed under internal Standard Division Practice # 2761R6 “Direct Feed System Operation” of Onyx. The practice describes the preparation of the DFSC (Direct Feed Safety Checklist), training on the DFSC, load receiving, sampling and staging, hook up, check of strainers, purge of feed and return lines, preparation of tanker/trailer for unloading, recirculation process, tanker/trailer raising, unloading/feeding process, system flushing, cleaning of strainers, and disconnecting and releasing of tanker/trailer. The Standard Practice assures a safe and leak-free feeding of the waste to the incinerator. The tube trailer is first placed in the fluorinated products injection port. The trailer is sited on calibrated load cells, so the injected material will be weighed during the unloading operation (without the car-truck, giving a highly accurate measurement). All connections to the tube trailer manifold are performed before the unloading operation begins; the pressure of the HFC 23 waste from the tubes is lowered to 7 atm (100 psi) with a regulating valve while leaving the tubes. An ambient vaporizer installed after the pressure-regulating valve avoids any mixed feed (liquid-gas) before entering the direct feed line. The mass flow entering the incinerator is controlled by a valve connected to the Distributed Control System (DCS) of the plant. The tip of the direct feed line injects the HFC 23 waste gas 2 m (7 ft) deep at the front wall of the rotary kiln. 10 DREHFC23 High A specific Test Burn (considering EPA’s Comprehensive Performance Test protocol pursuant to 40 CFR part 63, subpart EEE) will be performed at the beginning of the Quimobásicos operation to define the actual specific Destruction and Removal Efficiency (DRE). Considering the scale and operating conditions (higher residence time) at the Onyx facility, it is expected that a more complete destruction of the waste will be attained, compared to a dedicated incinerator unit that could have being installed at Quimobásicos’ site. The expected destruction efficiency for the HFC 23 waste is higher than 99.999%. 12 Q_HCFC22y High It will be obtained from production records of the facility. It is reference data to check cut-off condition and rough estimation of HFC 23 generation. 13 HFC23_soldy High It will be obtained from production records of the facility. It is reference data to check cut-off condition and rough estimation of HFC 23 generation. 16 Q_Ny Medium The weight of the N2 tank will be measured using weigh cells. N2 consumption will be registered once an hour. 18 Q_PowerQBy High It will be measured using electricity meter. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 40 Quimobásicos has an operating manual according to the P-6.2.2-02 procedure and a Distributed Control System (DCS) to support the work of the condensation unit operator. All the electronic documents and archives related to DCS or I/A of processes for operating plants of Quimobásicos, are contained in the database ISO ARCHIVER Documents of the company. The control of the preventive maintenance of critical equipment that affects the process is carried out through the P-6.3-10 procedure, to guarantee the good condition of the equipment, as well as the continuity and security of the operation, apart from providing improvements. On the other hand, it is assured that control and measuring instruments are in optimal conditions according to the P-7.6-04. The scale of tube trailer, the flow meters placed in line, and the pattern flow meters have the identification numbers of the corresponding equipment and are registered in the Management System of Maintenance (MSM). This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 41 D.4 Please describe the operational and management structure that the project operator will implement in order to monitor emission reductions and any leakage effects, generated by the project activity The structure that the companies will implement for the monitoring process is showed through the following table. Table 4: Monitoring process Task name Measurement of HFC 23 waste gas production Responsible Condensation unit operator Frequency Mass flows: at the beginning of each turn and once an hour during the turn. Documentation These data will be registered in the Condensation Unit Operation Report. Weight of tube trailer: at the beginning of each turn and every two hours during the turn. Calibration of equipment to measure the production of HFC 23 waste gas Instruments Department Pattern flow meters calibration: every year Flow meters verification: every week. Cells calibration: every 6 months Measurements made in the internal calibration will be registered in the calibration registry. In case of external calibration of equipment, the external company will emit the corresponding registry of calibration. These registries will be archived during a year. Measurement of HFC 23 waste gas purity Quality Assurance Department Purity of HFC 23 supplied to condensation process: twice a week Purity of HFC 23 supplied to incineration process: when loading of the tube trailer is finished Calibration of equipment to measure the purity of HFC 23 waste gas Quality Assurance Department Calibration: every year The results will be registered in the laboratory analysis system according to instructive CCL-7.4.302-09. Registries will be archived during a year according to General Procedure of Quality Registry Control P-4.2.4-02. To be confirmed Verification: every 2 months This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board D.5 page 42 Name of person/entity determining the monitoring methodology: Marisa Zaragozi, Ivana Cepón, and Fabián Gaioli MGM International. Junín 1655, 1º B C1113AAQ, Buenos Aires, Argentina Tel./Fax: (54 11) 5219-1230/32 e-mail: mzaragozi@mgminter.com icepon@mgminter.com fgaioli@mgminter.com Marisa Zaragozi, Ivana Cepón, and Fabián Gaioli are not project participants. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 43 SECTION E. Estimation of GHG emissions by sources E.1. Estimate of GHG emissions by sources: As mentioned above, project emissions within the project boundary correspond to emissions from compressed HFC 23 transportation to the incineration plant. Project emissions within the project boundary PEy (tCO2e/year) are given by: PEy = E_DPy = CO2_Transporty = q_HFC23Ty E_Transporty = q_HFC23Ty 151.27/1000 tCO2e/tHCFC 23 For the ex-ante calculations, it have been made the following assumptions: The annual HCFC 22 production of Quimobásicos plant is 13,156 tonnes/year, the maximum annual production, obtained during the 2002 – 2004 period, of the existing HCFC 22 production facility plus the CFC production of the second unit, appropriately adjusted to HCFC 22 production equivalent (see Annex 3). The (HFC 23)/(HCFC 22) production ratio is 2.44%, the lowest actual value of the three most recent years of operation up to 2004 (see Annex 3). After the condensation process, the liquefied waste fluorocarbon stream will be composed by 90% of HFC 23 and 10% of HCFC 22. There are no looses of HFC 23 from its collection until reaching the incineration plant. There are no sales of HFC 23 from Quimobásicos plant. Thus the quantity of HFC 23 loaded into the tube trailer results to be: q_HFC23Ty =13,156 0.0244 / 0.90 tHFC23/year = 355.95 tHFC23/year In consequence, ex-ante project emissions within the project boundary are given by: PEy = 355.95 151.27/1000 tCO2e/year = 53.84 tCO2e/year This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 44 Thus, the amount of project GHG emission is expected to be around 1,131 tonnes of CO2-equivalent over a 21-year time frame. E.2. Estimated leakage: As mentioned above, the leakage considered for this particular project are these related with purchased electricity for the condensation and conditioning processes. In addition, emissions from electricity generation consumed by the producer of the N2 used during the condensation of the waste gas, are also considered as leakage of this project. Leakage LEy (tCO2e/year) in a year y are calculated in the following way: LEy = Q_Ny × EQ_PowerN × E_PowerNy + Q_PowerQBy × E_PowerQBy E_PowerNy will be updated annually and corresponds to the CO2 emission factor of the Mexican grid (Comisión Federal de Electricidad – CFE) from which the electricity is supplied. Its current value is 0.587 tCO2/MWh. 11 E_PowerQBy will also be updated annually and corresponds to the CO2 emission factor of the isolated power plant supplying electricity to Quimobásicos. Its current value is 0.3553 tCO 2/MWh, as is provided by the isolated power plant and verified by the Secretary of Energy. Electricity consumption at the N2 production plant results from multiplying the N2 consumption during the condensation process (Q_Ny) by the specific electricity consumption of the N2 production plant (EQ_PowerN), whose value is considered fixed and equal to 0.88 MWh/tN2. Thus LEy = Q_Ny × 0.88 × 0.587 tCO2/tN2 + Q_PowerQBy × 0.3553 tCO2/MWh For the ex-ante calculations, it is considered that 2 tonnes of N2 and 0,5 MWh are consumed per tonne of recovered fluorocarbons. Thus estimated annual consumption of N2 and electricity during the condensation and conditioning processes are: Q_Ny = q_HFC23Ty × 2 tN2/tHFC23 = 355.95 × 2 tN2/tHFC23 = 711.89 tN2/year For the ex-ante calculation of emission reductions, the emission factor calculated for “El Gallo Hydroelectric Project” is considered, since the N2 production plant is taking its electricity from the same grid and the emission factor computed for the year 2006 in this project was already accepted in the validation of the project. 11 This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board Q_PowerQBy page 45 = q_HFC23Ty × 0.5 Mwh/tHFC23 = 355.95 × 0.5 Mwh/tHFC23 = 177.97 Mwh/year In consequence, ex-ante leakage is given by: LEy = 711.89 × 0.88 × 0.587 tCO2/year+ 177.97 ×0.3553 tCO2/year = (367.73 + 63.23) tCO2/year = 430.97 tCO2/year Thus, the amount of leakage is expected to be around 9,050 tonnes of CO2-equivalent over a 21-year time frame. E.3. The sum of E.1 and E.2 representing the project activity emissions: The ex-ante estimations of total project GHG emission is expected to be around 10,181 tonnes of CO2equivalent over a 21-year time frame. E.4. Estimated anthropogenic emissions by sources of greenhouse gases of the baseline: Baseline emissions involve the HFC 23 that would be released to the atmosphere in absence of the project. Baseline emissions BEy (tCO2e/year) in a year y are described as: BEy = (Q_HFC23y BQ_HFC23y) GWP_HFC23 As mentioned above, the baseline quantity of HFC 23 destroyed (BQ_HFC23y) is the quantity of the HFC 23 waste stream required to be destroyed by the applicable regulations. In the absence of regulations requiring the destruction of HFC 23, the HFC 23 waste is typically released to the atmosphere so the baseline corresponds to zero destruction. To date, domestic law of Mexico does not restrict HFC 23 emissions at all. Thus baseline emissions are: BEy = Q_HFC23y 11,700 For the ex-ante calculations, it have been made the following assumptions: This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 46 The annual HCFC 22 production of Quimobásicos plant is 13,156 tonnes/year, the maximum annual production, obtained during the 2002 – 2004 period, of the existing HCFC 22 production facility plus the CFC production of the second unit, appropriately adjusted to HCFC 22 production equivalent (see Annex 3). The (HFC 23)/(HCFC 22) production ratio is 2.44%, the lowest actual value of the three most recent years of operation up to 2004 (see Annex 3). There are no looses of HFC 23 from its collection until reaching the incineration plant. There are no sales of HFC 23 from Quimobásicos plant. Thus the quantity of waste HFC 23 destroyed (Q_HFC23y) results to be: Q_HFC23y = 13,156 0.0244 tHFC23/year = 320.35 tHFC23/year In consequence, ex-ante baseline emissions are given by: BEy = 320.35 11,700 tCO2e/year = 3,748,110 tCO2e/year Thus, the amount of baseline GHG emission is expected to be around 78,710,308 tonnes of CO2equivalent over a 21-year time frame. E.5. Difference between E.4 and E.3 representing the emission reductions of the project activity: As mentioned above, GHG emission reduction achieved by the project activity is the quantity of waste HFC 23 actually destroyed less GHG emissions generated by the recovery-to-decomposition process less leakage due to the recovery-to-decomposition process. Emission reductions ERy (tCO2e/year) in a year y are calculated as ERy = BEy – (PEy+ LEy) = (Q_HFC23y BQ_HFC23y) × GWP_HFC23 (q_HFC23Ty × E_Transporty + + Q_Ny × EQ_PowerN × E_PowerNy + Q_PowerQBy × E_PowerQBy) = 320.35 11,700 tCO2e/year – (355.95 151.27/1000 + + 711.89 × 0.88 × 0.587 + 177.97 × 0.3553) tCO2/year = 3,748,110 tCO2e/year – (53.84 + 367.73 + 63.23) tCO2e/year = 3,747,625 tCO2e/year This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board E.6. page 47 Table providing values obtained when applying formulae above: Table 5: Ex-ante estimation of emission reductions during the 21-year crediting period (tCO2e) Year Baseline emissions Project emissions Leakage Emission reductions 2006 3,748,110 54 431 3,747,625 2007 3,748,110 54 431 3,747,625 2008 3,748,110 54 431 3,747,625 2009 3,748,110 54 431 3,747,625 2010 3,748,110 54 431 3,747,625 2011 3,748,110 54 431 3,747,625 2012 3,748,110 54 431 3,747,625 2013 3,748,110 54 431 3,747,625 2014 3,748,110 54 431 3,747,625 2015 3,748,110 54 431 3,747,625 2016 3,748,110 54 431 3,747,625 2017 3,748,110 54 431 3,747,625 2018 3,748,110 54 431 3,747,625 2019 3,748,110 54 431 3,747,625 2020 3,748,110 54 431 3,747,625 2021 3,748,110 54 431 3,747,625 2022 3,748,110 54 431 3,747,625 2023 3,748,110 54 431 3,747,625 2024 3,748,110 54 431 3,747,625 2025 3,748,110 54 431 3,747,625 2026 3,748,110 54 431 3,747,625 78,710,308 1,131 9,050 78,700,127 Total This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 48 SECTION F. Environmental impacts F.1. Documentation on the analysis of the environmental impacts, including transboundary impacts: The process of condensation of the waste gas containing HFC 23 and the conditioning process have not any negative environmental impact because it does not emit any gaseous pollutant or particulate compound. There is a very low negative impact mainly due to particulate matter emissions from transportation of HFC 23 by heavy-duty diesel trucks. Nevertheless pollutant emissions released by trucks are controlled by the transport regulation entity. Moreover, this low environmental impact is negligible in comparison to the large environmental global benefit due to HFC 23 destruction. F.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: No significant negative environmental impacts are expected from the implementation of the project activity. An environmental impact study is not required by Mexican authorities. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 49 SECTION G. Stakeholders’ comments G.1. Brief description how comments by local stakeholders have been invited and compiled: The process followed to collect stakeholder comments of the Quimobásicos HFC Recovery and Decomposition Project was implemented through a survey. The following set of questions was sent to stakeholders, during June 2005: 1) Do you know what “Greenhouse Effect” or “World Climate Change” means? 2) Do you know that there are actions we can take in order to prevent Climate Change? 3) What would you think of an industry that takes measures to reduce Climate Change? 4) Should the industries in Monterrey be national leaders for Greenhouse Gases reduction? Why? 5) Do you know that Quimobásicos has started a Greenhouse Gases Reduction Program and that it is one of the largest and most important programs in Latin America? 6) Do you agree with this type of programs? Should these efforts be known by the whole nation? 7) Should authorities incentive this type of actions in the Industry? 8) Do you agree with Quimobásicos development of this type of programs in their plant? 9) Is there any additional comment or suggestion that you would like to make in order to spread this action for the benefit of the Planet? The questionnaire was sent to judges and stakeholders from academic institutions and committees. G.2. Summary of the comments received: The following table shows a synthesis of the comments received at the moment: This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 50 Table 6: Comments received Question 1 Academic institutions (4) 4 Yes. Committees (6) 5 Yes. Judges (1) 1 Yes. 1 A little. 2 3 3 Yes. 6 Yes. 1 Not until now. Got to know by means of this survey It is necessary to know more. 2 It is a committed industry. 4 Those industries are committed to the planet and their environment. 1 All industries should do that. 1 Good impression. Working for economic development and taking care of the environment at the same time. 4 1 Yes. There are governments that still consider these actions as a threat to the industry and progress. 1 It cares about the planet. 2 It should be compulsory for all industries. 2 Yes. Because they are leading companies. 4 Yes. Because Monterrey is a leading company. 1 Yes. Because they are supposed to have an integral vision. 1 Yes. Because they care about human survival. They are leaders. 1 Yes. Because Monterrey is an industrial leader. 1 Not necessarily, the issues involves 1 Yes. us all 5 6 4 Not until now. We feel proud of them. Got to know by means of this survey 3 Yes. 4 Yes. General diffusion through the mass media is necessary. 3 Yes. General diffusion through the mass media is necessary. 1 No. 3 No. 1 Yes. 2 Yes. It would be the starting point to raise an excellent environmental conscience and would improve the life quality. 1 Yes. 7 4 Yes. 6 Yes. Though fiscal incentives for the company. Though economic resources. 1 It should be promoted and also compulsory. With an adequate regulation. Not only the authorities. Also the company owners. 8 4 Yes. It should be an example for other industries. 9 1 Yes. Provided the region, health, and life quality are not negatively affected. 1 Of course. 3 Yes. The Fracc should be notified. They are direct players. 2 Yes. 2 Increase of measures to reduce gas emissions. 1 To inform in educational sectors. 2 To inform about the use and risks of 1 Programs and diffusion in the mass products elaborated by industries. communication means. 3 To build an environment-friendly 1 To work in order to inherit a better culture in the region. environment. 1 To be massively spread and publicized. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board G.3. page 51 Report on how due account was taken of any comments received: Eleven comments have been received and they were very positive for project implementation. Quimobásicos invites comments from other stakeholders, once the PDD has been published at the DNV website during the validation process: http://www.dnv.com/certification/climatechange/Projects/ProjectList.asp Depending on the comments, proper account will be taken, if necessary. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 52 Annex 1 CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY Organization: Quimobásicos S.A. de C.V. Street/P.O.Box: Ave. Ruíz Cortínez Nº. 2333 Pte. Building: City: Monterrey State/Region: Province of Nuevo León Postfix/ZIP: 64400 Country: Republic of Mexico Telephone: (52) (81) 8158-2323 FAX: (52) (81) 8158-2688 E-Mail: URL: Represented by: Title: www.quimobasicos.com Salutation: Mr Last Name: Lozano-García General Manager Middle Name: First Name: Sergio Department: Mobile: Direct FAX: Direct tel: Personal E-Mail: slozano@cydsa.com This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board Organization: Honeywell Fluorine Products Europe B.V. Street/P.O.Box: Kempemweg 90 Building: P.O. Box 264 City: Weert State/Region: West Europe Postfix/ZIP: NL-6000 AG Country: The Netherlands Telephone: 3149 55 14251 FAX: 3149 55 18259 page 53 E-Mail: URL: Represented by: Title: www.honeywell.com Salutation: Mr. Last Name: Vinck Director of Regulatory Affairs Middle Name: First Name: Timothy Department: Mobile: Direct FAX: Direct tel: Personal E-Mail: tim.vinck@honeywell.com This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 54 Annex 2 INFORMATION REGARDING PUBLIC FUNDING No funds from public national or international sources were used in any aspect of the proposed project. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 55 Annex 3 BASELINE INFORMATION The key data used to determine ex-ante the baseline scenario is given in the following table. Table 7: Baseline data Item Value Source Global Warming Potential (HFC 23) 11,700 Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories: Reference Manual, page 2.45, table 2-26. Cut-off condition fraction 2.44% Quimobásicos Fraction of the waste stream required to be destroyed 0 Local regulation HCFC 22 production 13,156 tHCFC22/year Quimobásicos HFC 23 sold by the facility 0 Quimobásicos HFC 23 looses from its collection until reaching the incineration plant 0 Quimobásicos For the ex-ante calculations of baseline emissions, it have been made the following assumptions: The annual HCFC 22 production of Quimobásicos plant is 13,156 tonnes/year, the maximum annual production, obtained during the 2002 – 2004 period, of the existing HCFC 22 production facility plus the CFC production of the second unit, appropriately adjusted to HCFC 22 production equivalent. The (HFC 23)/(HCFC 22) production ratio is 2.44%, the lowest actual value of the three most recent years of operation up to 2004. Domestic law of Mexico does not restrict HFC 23 emissions at all. There are no looses of HFC 23 from its collection until reaching the incineration plant. There are no sales of HFC 23 from Quimobásicos plant. HCFC 22 production of Quimobásicos plant In order to calculate the maximum annual production that can be considered for this project activity, the following historical data of Quimobásicos plant have been used: This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 56 Table 8: Total equivalent HCFC 22 production Production (tonnes) Products 2002 2003 2004 CFC 11 757 1,291 1,177 CFC 12 4,894 7,402 6,867 Total CFCs 5,651 8,693 8,044 HCFC 22 4,947 5,117 7,570 Total equivalent HCFC 22 production12 8,871 11,154 13,156 According to AM0001, it is assumed a maximum annual HCFC 22 production capacity of 13,156 tonnes. It is the value used for the ex-ante calculation of emission reductions. (HFC 23)/(HCFC 22) production ratio The following historical data from Quimobásicos plant is used to calculate the (HFC 23)/(HCFC 22) production ratio13: Table 9: (HFC 23)/(HCFC 22) production ratio 2002 2003 2004 HCFC 22 produced (tonnes) 4,947.246 5,117.534 7,569.779 HFC 23 generated (tonnes) 121.4961 129.2177 184.3241 2.46 2.53 2.44 (HFC 23)/(HCFC 22) production ratio (%) According to AM0001, the value of w shall be set at 2.44 %. 12 According to information from Quimobásicos plant, while the CFC plant produce 36 tonnes of CFC per day, the HCFC 22 plant produce 25 tonnes of HCFC 22. It is expected that the CFC plant produce 25 tonnes of HCFC 22 per day when it start producing HCFC 22, since the current HCFC 22 plant and the current CFC plant have the same design. Thus, in calculation of HCFC 22 maximum annual production capacity, it is considered that 36 tonnes of CFC is equivalent to 25 tonnes of HCFC 22. 13 Data obtained from mass balances carried out by Quimobásicos. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 57 Annex 4 MONITORING PLAN The Monitoring and Verification Plan describes the procedures for data collection, and auditing required for the project, in order to determine and verify emissions reductions achieved by the project. This project will require only very straightforward collection of data, described above. The Monitoring and Verification Plan (MVP) document fulfills the CDM Executive Board requirement that CDM projects have a clear, credible, and accurate set of monitoring and verification procedures. The purpose of these procedures is to direct and support continuous monitoring of project performance and periodic auditing, verification and certification activities to determine project outcomes, in particular in terms of greenhouse gas (GHG) emission reductions. The MVP is a vital component of project design, and as such is subject to a formal third-party validation process —along with the project baseline and other project design features. Managers of the Project must maintain credible, transparent, and adequate data estimation, measurement, collection, and tracking systems to successfully develop and maintain the proper set of information to undergo an audit for a greenhouse gas (GHG) emission reduction investment. These records and monitoring systems are needed to subsequently allow an Operational Entity to verify project performance as part of the verification and certification process. In particular, this process reinforces the fact that GHG reductions are real and credible to the buyers of the Certified Emissions Reductions (CERs). This set of information will be needed to meet the evolving international reporting standards developed by the UNFCCC. The document must be used by the project implementers and operators of the Technical Departments of Quimobásicos plant. Strict adherence to the guidelines set out in this monitoring plan is necessary for the project managers and operators to successfully measure and track project impacts for audit purposes. MGM International will provide capacity building to the Technical Departments Quimobásicos plants, in order to meet the requirements presented in this MVP. The new methodology describes the procedure and equations for calculating project and baseline emissions from monitored data. For the specific project, the methodology is applied through a spreadsheet model. The staff responsible for Project monitoring must complete the electronic worksheets on a monthly basis. The spreadsheet automatically provide annual totals in terms of GHG reductions achieved through the project. The models contain a series of worksheets with different functions: Data entry sheets: HCFC 22 production Quantity and purity of HFC 23 supplied to de condensation process and to the incineration process Quantity of HFC 23 loaded into the tube trailer HFC 23 sold Fraction of HFC 23 required to be destroyed Destruction and Removal Efficiency of HFC 23 N2 and electricity consumption at Quimobásicos plant This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 58 Emission factor for electricity generation Calculation sheets: Baseline emissions Project emissions Leakage Result sheet: Emission reductions There are worksheets where the user is allowed to enter data. Even in these sheets, only those cells where the staff of each plant is required to enter data have been left unblocked. All other cells contain model fixed parameters or computed values that cannot be modified by the staff. A color-coded key is used to facilitate data input. The key for the code is as follows: Input Fields: Pale yellow fields indicate cells where project operators are required to supply data input, as is needed to run the model; Result Fields: Green fields display key result lines as calculated by the model. Other sheets are shown in subsequent pages. All fields in these sheets include fixed values, or values that are computed from data in the data entry sheets. The last sheet shows the results, comparing yearby-year GHG emissions with the project with baseline values in order to determine annual emissions reductions, shown in the last column. All electronic data will be backed up on a daily basis, and two electronic copies of each document will be kept in different locations: the plant and its Head Office. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.