CDM-SSC-PDD (version 02)
CDM – Executive Board
page 1
CLEAN DEVELOPMENT MECHANISM
SIMPLIFIED PROJECT DESIGN DOCUMENT
FOR SMALL-SCALE PROJECT ACTIVITIES (SSC-CDM-PDD)
Version 02
CONTENTS
A.
General description of the small-scale project activity
B.
Baseline methodology
C.
Duration of the project activity / Crediting period
D.
Monitoring methodology and plan
E.
Calculation of GHG emission reductions by sources
F.
Environmental impacts
G.
Stakeholders comments
Annexes
Annex 1: Information on participants in the project activity
Annex 2: Information regarding public funding
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Revision history of this document
Version
Number
01
02
Date
Description and reason of revision
21 January
2003
8 July 2005
Initial adoption


The Board agreed to revise the CDM SSC PDD to reflect
guidance and clarifications provided by the Board since version
01 of this document.
As a consequence, the guidelines for completing CDM SSC
PDD have been revised accordingly to version 2. The latest
version can be found at
<http://cdm.unfccc.int/Reference/Documents>.
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SECTION A. General description of the small-scale project activity
A.1. Title of the small-scale project activity:
Seguntor Bioenergy 11.5MW EFB Power Plant (the Project)
A.2. Description of the small-scale project activity:
The purpose of the project activity is to utilize empty fruit bunches (EFB), an abundant waste product of
the palm oil milling process, as the primary biomass fuel for power generation. Seguntor Bioenergy Sdn.
Bhd. (SBSB), which is jointly set up by Riang Jernih Sdn. Bhd., GOBIO Sdn. Bhd., Agritech Marketing
Company Limited and Agritech Marketing Company (Singapore) Private Limited, will construct a 100%
biomass based power plant with gross generation capacity of 11.5MW (10MW net) at Sandakan, Sabah in
Malaysia.
The majority of the electricity generated (87%) will be sold to the Sabah Electricity Sdn. Bhd. (SESB)
distribution grid by interconnecting to the 33/11kV substation at Mile 10, Seguntor industrial zone,
Sandakan under the Small Renewable Energy Programme1 (SREP) stipulated by the Government of
Malaysia, while the balance (13%) will be provided for the project plant’s in-house (parasitic)
consumption.
Four palm oil mills namely Nilai Tani Resources Sdn. Bhd., Monsok Palm Oil Mill Sdn. Bhd., Prolific
Yield Sdn. Bhd. and Tanjung Panjang Sdn. Bhd. will be the EFB suppliers. With the EFB production
capacity of 385,000tonnes/yr generated by these mills, the supply of primary fuel, EFB, alone is sufficient
to fuel the power plant, since the Project is expected to use approximately 153,125 tonnes of EFB per
annum. Other wastes like palm kernel shells and mesocarp fibres are also available abundantly and could
be considered as alternative fuels if necessary.
The project activity will produce approximately 92,681MWh annually for the electricity supplied to the
SESB grid and the plant’s in-house consumption. The expected amount of greenhouse gases (GHGs)
emissions reduction is approximately 251,750tonnes of CO2 equivalent per annum.
Contribution to Sustainable Development
The Project will contribute to sustainable development (SD) of Malaysia in two areas:(1)
Production of biomass generated renewable energy – the project activity conforms to the
Malaysian government policy and contributes to SD by providing electricity through biomass
power generation without depending on conventional fossil fuel combustion. The electricity
generated will be supplied to the SESB grid and displace part of its fossil fuel generated
electricity.
(2)
Utilization of disposed agricultural waste – By utilizing the EFB waste as primary fuel for
power generation, the project activity prevents EFB from being left to decay, which would lead to
1
The Government of Malaysia has approved a policy, called Small Renewable Energy Programme, to encourage
private entity which generates power with renewable fuels to sell part or all of its output to Tenaga Nasional Berhad
(TNB) and Sabah Electricity Sdn. Bhd (SESB).
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uncontrolled methane emission and putrid odor. In the absence of the Project, the likely fate of
the EFB at these mills is left to decay in open air resulting in emitting biogas containing methane,
a potential greenhouse gas and potential fire hazard.
A.3.
Project participants:
Name of Party involved (*)
((host) indicates a host Party)
Private and/or public
entity(ies) project participants
(*) (as applicable)
Malaysia (host)
Seguntor Bioenergy Sdn. Bhd.
(Private entity)
Japan
Agritech Marketing Co. Ltd.
(Private entity)
Japan
Clean Energy Finance
Committee, Mitsubishi
Securities
(Private entity)
(*) In accordance with the CDM at the stage of validation, a Party
modalities and procedures, at the involved may or may not have
time of making the CDM-PDD
provided its approval. At the
public
time of
See contact information at Annex-1 of this PDD
Kindly indicate if the Party
involved wishes to be
considered as project
participant (Yes/No)
No
No
No
requesting registration, the
approval by the Party(ies)
involved is required.
Seguntor Bioenergy Sdn. Bhd., which is jointly set up by Riang Jernth Sdn. Bhd., GOBIO Sdn. Bhd.,
Agritech Marketing Company Limited and Agritech Marketing Company (Singapore) Private Limited,
will build, own and operate the 11.5MW power plant.
A.4. Technical description of the small-scale project activity:
A.4.1. Location of the small-scale project activity:
A.4.1.1.
Host Party(ies):
Malaysia
A.4.1.2. Region/State/Province etc.:
Sabah
A.4.1.3. City/Town/Community etc:
Sandakan
A.4.1.4. Detail of physical location, including information allowing the unique identification of
this small-scale project activity(ies):
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SEGUNTOR
POWER PLANT
Figure 1. Location map of proposed biomass power plant and palm oil mills.
The Seguntor Bioenergy plant will be located at Batu 11, Jalan Seguntor, off Jalan Labuk, Sandakan, the
east coast of Sabah, in Malaysia. As shown in Figure 1, the power plant is located at an ideal area as it is
close, within 20-90km, to 15 palm oil mills and within radii of 10 km to the nearest SESB’s 11/33kV
substation for grid interconnection. The exact location map of the power station is shown in Figure 2.
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Figure 2. Location map of proposed biomass power plant.
A.4.2.
A.4.2.1.
Type and category(ies) and technology of the small-scale project activity:
Type and category(ies) of the small-scale project activity:
In accordance with Appendix B of the simplified modalities and procedures for small-scale CDM project
activities (“SSC M&P”), the proposed Project falls under the following types and categories:
Type I : Renewable energy projects
Category D : Renewable electricity generation for a grid
The power plant with 11.5MW generation capacity generates electricity utilizing renewable biomass
fuel – oil palm EFB. The net generated power (10MW) will be supplied to the SESB distribution grid
at Sandakan, Sabah. The project activity conforms to applicability condition of Type I.D. since the
electricity generation capacity is less than the eligibility limit of 15MW.

Type III : Other project activity
Category E : Avoidance of methane production from biomass decay through controlled
combustion
The proposed project activity prevents the production of methane from biomass decay through
controlled combustion of biomass and as a result, less methane is produced and emitted to the
atmosphere. The annual project emission is approximately 10 kilotonnes of CO2 equivalent, which is
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below the threshold of 15 kilotonnes of CO2 equivalent annually as stated under the Type III.E.
project activities.
A.4.2.2.
Technology of the small-scale project activity:
The Project involves the implementation of a biomass-based power generation plant with 11.5MW
generation capacity using a biomass boiler technology. This technology will allow the plant to be
operated solely on EFB. The technology utilized will be a standard thermal power plant cycle with a
water cooled step grate tail end type boiler supplied by Vyncke Energietechniek N.V of Belgium that is
well proven and reliable. The boiler is specially designed to operate for 8000 hours a year to avoid
fouling, slagging, erosion and corrosion.
A.4.3. Brief explanation of how the anthropogenic emissions of anthropogenic greenhouse gas
(GHGs) by sources are to be reduced by the proposed small-scale project activity, including why
the emission reductions would not occur in the absence of the proposed small-scale project activity,
taking into account national and/or sectoral policies and circumstances:
The EFB, which is a waste product of the palm oil milling process, will be used as fuel for power
generation. The proposed project activity will effectively displace the fossil fuel-based electricity
generation by supplying carbon-neutral electricity to the SESB distribution grid. In turn, the emissions of
GHGs by sources will eventually be reduced.
In utilizing the EFB waste, the Project will also reduce GHGs by avoiding methane emissions from the
waste which would be piled up to decay in the absence of the Project.
As delineated in Section B.3, these reductions would not occur in the absence of the CDM due mainly to
the low investment returns without the certified emission reductions (CERs) income.
A.4.3.1
Estimated amount of emission reductions over the chosen crediting period:
The total estimated amount of emission reductions over the chosen crediting period of 7 years is
1,762,248 tonnes of CO2 equivalent (251,750 tonnes of CO2 equivalent annually).
Years*
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Total estimated reductions (tonnes of CO2e)
Total number of crediting years
Annual average over the crediting period of
estimated reductions (tonnes of CO2e)
Annual estimation of emission reductions in
tonnes of CO2e
251,750
251,750
251,750
251,750
251,750
251,750
251,750
1,762,248
7
251,750
* The date of the first crediting period starts from 01/04/2008 through to 31/03/2015 (7 years).
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A.4.4. Public funding of the small-scale project activity:
The Project does not involve public funding from Annex 1 countries.
A.4.5. Confirmation that the small-scale project activity is not a debundled component of a larger
project activity:
This Project is not a debundled component of any larger project activity. As defined, a proposed
small-scale project activity shall be deemed to be a debundled component of a large project activity if
there is a registered small-scale CDM project activity or a request for registration by another small-scale
project activity:

By the same project participants;

In the same project category and technology/measure; and

Registered within the previous 2 years; and

Whose project boundary is within 1 km of the project boundary of the proposed small-scale activity
at the closest point.
SECTION B. Application of a baseline methodology:
B.1. Title and reference of the approved baseline methodology applied to the small-scale project
activity:
(1)
(2)
Type I.D. – Renewable electricity generation for a grid
Type III.E. – Avoidance of methane production from biomass decay through controlled
combustion
B.2 Project category applicable to the small-scale project activity:
As explained in Section A.4.2.1., the project activity is applicable to the project categories of Type I.D. –
Renewable electricity generation for a grid as well as Type III.E. – Avoidance of methane production
from biomass decay through controlled combustion under Appendix B of the SSC M&P.
With reference to the indicative simplified baseline and monitoring methodologies for Type I.D. and
Type III.E. stated in Appendix B of the SSC M&P, the baseline calculation methods are chosen as
follows:(1)
Electricity generation for a grid
Among two options for estimation of baseline emission, option (b) of item 7 for Type I.D. is
selected. The baseline is the kWh produced by the renewable generating unit multiplied by the
weighted average emissions (in kg CO2equ/kWh) of the current generation mix.
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Avoidance of methane production
The baseline calculation for methane avoidance is estimated based on item 3 of Type III.E, the
only method available. The baseline is the amount of methane from the decay of the biomass
treated in the project activity, calculated using the IPCC default emission factors.
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 small-scale CDM project activity:
The implementation of the project activity is hindered by the below barriers.
(1)
Investment barrier
The equipment cost for grid-connected biomass power plants are significantly higher than that for
GHG-intensive conventional fossil fuel power plants. Although the operating and maintenance
costs for biomass power plants are comparatively low, increasing their attractiveness in long
term, this is still insufficient to increase project returns to the level attained by conventional
plants. In developing countries, like Malaysia, where short-term cost minimization is important,
grid-connected biomass power projects do not represent an attractive course of action.
The additional revenue from the sale of CERs will increase the Project’s return to a more
acceptable level, enabling the implementation of the Project. Without this extra source of income,
the low return combined with the real and perceived risks involved make the Project unattractive
to investors.
(2)
Barriers due to prevailing practice
There are currently no regulations for the management of EFB waste except for the general ban
on open-air burning as stipulated in 1998 amendments to the Environmental Quality act of 1974.
As there is also no standard technology to manage EFB waste, it is obvious that without
incentives in the form of carbon credits, the most likely scenario for EFB waste at the palm oil
mills is left to decay in open-air, resulting in uncontrolled emission of GHGs.
Using biomass waste as fuel for electricity generation is not a standard waste management
practice in Malaysia, even though the SREP is highly promoted recently. The project activity,
therefore, is highly unlikely to be the natural choice.
B.4. Description of how the definition of the project boundary related to the baseline methodology
selected is applied to the small-scale project activity:
>>
Figure 3 shows the flowchart of the Project and its boundaries. The project boundary is identified based
on the definitions stated in Appendix B of the SSC M&P as below:(1)
Electricity generation for a grid – the project boundary encompasses the physical, geographical
site of the renewable generation source.
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Avoidance of methane production – the project boundary is the physical, geographical site
where the treatment of biomass takes place.
Biomass from
oil palm mills
Biomass
storage
Biomass fired
boiler
Electricity
generation
Electricity to
local grid
Electricity for
auxiliary
consumption
End user
Figure 3. The project boundary.
B.5. Details of the baseline and its development:
B.5.1. Specify the baseline for the proposed project activity using a methodology specified in the
applicable project category for small-scale CDM project activities contained in the SSC M&P:
(1)
Electricity generation for a grid
As stated in Section B.2., the method of option (b) of item 7 for Type I.D. is selected for baseline
calculation. As mentioned above, the electricity generation from the power plant will be supplied to SESB
distribution grid, therefore the weighted average emissions (in kg CO2equ/kWh) of current generation
mix of SESB grid is used for baseline estimation.
Baseline emission for
grid electricity
(tCO2/year)
(2)
=
Electricity generated by
the Project
(kWh/year)
x
Weighted average emission
of current generation mix
of SESB grid
(tCO2/kWh)
Avoidance of methane production
The baseline calculation for methane avoidance is estimated based on item 3 of Type III.E, the only
method available under this category. The baseline is IPCC CH4 emission factor for decaying biomass
multiplied by quantity of biomass and GWP for methane.
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The selected formula for calculation of the baseline emissions is provided in Section E.1.1.1.
B.5.2. Date of completing the final draft of this baseline section (DD/MM/YYYY):
06/03/2006
B.5.3. Name of person/entity determining the baseline:
Clean Energy Finance Committee, Mitsubishi UFJ Securities Co., Ltd.
Mitsubishi Building, 2-5-2 Marunouchi, Chiyoda-ku, Tokyo 100-0005, Japan
Tel: (81 3) 6213-6860 Fax: (81 3) 6213-6175
Email: hatano-junji@sc.mufg.jp
Mitsubishi UFJ Securities is the CDM advisor to the Project and is also a project participant. The contact
details of the above entity determining the baseline is listed in Annex I.
SECTION C. Duration of the project activity / Crediting period:
C.1. Duration of the small-scale project activity:
C.1.1. Starting date of the small-scale project activity:
01/07/2006
The starting date of the project activity is here defined as the earliest date on which construction work
may begin. Should construction be delayed, the starting date of the project activity will be delayed
accordingly.
C.1.2. Expected operational lifetime of the small-scale project activity:
Minimum 21 years.
C.2. Choice of crediting period and related information:
C.2.1. Renewable crediting period:
C.2.1.1. Starting date of the first crediting period:
01/04/2008
The starting date of the first crediting period is here defined as the earliest date on which the commercial
operation may begin. Should operation be delayed, the starting date of the first crediting period will be
delayed accordingly.
C.2.1.2. Length of the first crediting period:
7 years.
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C.2.2.
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Fixed crediting period:
C.2.2.1.
Starting date:
NA
C.2.2.2. Length:
NA
SECTION D. Application of a monitoring methodology and plan:
D.1. Name and reference of approved monitoring methodology applied to the small-scale project
activity:
The monitoring methodology as defined in Appendix B of the SSC M&P for Type I.D. and Type III.E. is
applied to this project activity. The monitoring methodologies for electricity generation for a grid and
avoidance of methane production are specified in item 9 of Type I.D. as well as items 5 & 6 of Type III.E.
under Appendix B respectively.
D.2. Justification of the choice of the methodology and why it is applicable to the small-scale
project activity:
The proposed project activity is eligible to apply the monitoring methodologies of Type I.D. and Type
III.E. since it is a biomass based power generation project that not only supplies electricity to SESB grid,
which is less than the electricity generation capacity of 15MW, but also avoids methane emission from
biomass that would have otherwise been left to decay within the project emission threshold of 15,000
tCO2e annually.
(1)
Electricity generation for a grid – monitoring consists metering the electricity generated by the
renewable technology.
(2)
Avoidance of methane production – the annual amount of biomass combusted by the project
activity is to be monitored. The annual project emissions are also to be monitored to ensure the
direct project emissions related to the methane avoidance does not exceed the threshold of 15,000
tCO2e annually.
D.3
Data to be monitored:
The amount of the electricity generated and delivered to SESB grid will be monitored by electricity
meters, which will be calibrated in accordance with the strict standards set by SESB. The actual sales to
SESB can also be easily verified through the invoice/receipts between SESB and SBSB.
The amount of biomass combusted in the boiler and the energy content of biomass will also be measured.
By using these monitored data, the project emission will be calculated ex post according to the
methodology listed in item 5 of Type III.E.
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Table 1 indicates the variables that will be monitored for the project activity.
page 13
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Table 1. Data to be monitored for the project activity.
ID
number
Data type
Data variable
1
Activity
level
(Baseline)
2
Activity
level
(Baseline
and Project)
Activity
level
(Baseline
and Project)
Emission
factor
(Project)
Emission
factor
(Baseline
and Project)
Electricity
generated and
delivered to
SESB grid
Amount of
biomass treated
in power plant
3
4
5
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)
Electronic
For how long is
archived data to
be kept?
Comment
Minimum 2 years
after last CER
issuance
Mandatory under
methodology I.D.
MWh
m
Monthly
(aggregate)
100%
tonnes
m
Monthly
(aggregate)
100%
Electronic
Minimum 2 years
after last CER
issuance
Mandatory under
methodology
III.E.
Energy content
of biomass
treated
TJ/tonne
m
Yearly
100%
Electronic
Minimum 2 years
after last CER
issuance
Measured in the
in-house
laboratory
CH4 and N2O
IPCC default
emission factors
CH4 and N2O
global warming
potentials
kgCH4/TJ,
kgN2O/TJ
(IPCC)
Yearly
100%
Electronic
Mandatory under
methodology
III.E.
tCO2e/tCH4
and
tCO2e/tN2O
(IPCC)
Yearly
100%
Electronic
Minimum 2 years
after last CER
issuance
Minimum 2 years
after last CER
issuance
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D.4. Qualitative explanation of how quality control (QC) and quality assurance (QA) procedures are undertaken:
Table 2. Quality control (QC) and quality assurance (QA) procedures are being undertaken for data monitored.
ID
number
D.3.1
D.3.2
D.3.3
D.3.4
D.3.5
Uncertainty level of data Explain QA/QC procedures planned for these data, or why such procedures are not necessary
(High/Medium/Low)
Low
The amount of the electricity generated and delivered to SESB grid will be monitored by electricity meters
(main meter and backup meter), which will be calibrated in accordance with the strict standards set by
SESB. The consistency of the data will be verified through the actual sale records between SESB and SBSB.
Low
The amount of biomass combusted in the boiler will be monitored by measuring equipments/balances.
Maintenance and calibration of the equipments will be carried out according to the standards set by SESB.
The consistency of the data will be verified through the actual sale records between SBSB and palm mill
suppliers.
Low
The energy content of biomass will be measured on a yearly basis according to the international approved
standards and procedures through a qualified laboratory.
Low
IPCC default values will be used where appropriate.
Low
IPCC default values will be used where appropriate.
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D.5. Please describe briefly the operational and management structure that the project
participant(s) will implement in order to monitor emission reductions and any leakage effects
generated by the project activity:
Figure 4 outlines the operational and management structure that SBSB will implement to monitor
emission reductions and any leakage effects generated by the project activity. SBSB will form an
operational and management team, which will be responsible for monitoring of all the parameters
aforementioned. This team composes of a general manager and a group of operators. A group of
operators, who are under the supervision of the general manager, will be assigned for monitoring of
different parameters on a timely basis as well as recording and archiving data in an orderly manner.
Monitoring reports will be forwarded to and reviewed by the general manager on a monthly basis in order
to ensure the Project follows the requirements of the monitoring plan.
Data archived will also be verified regularly by the DOE. The performance of the Project will be
reviewed and analyzed by the consultant on a regular basis.
General Manager
Operators
Data Archiving
Performance
Review by
Consultant
DOE Verification
Figure 4. Operational and management structure for monitoring the project activity.
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D.6. Name of person/entity determining the monitoring methodology:
Clean Energy Finance Committee, Mitsubishi UFJ Securities Co., Ltd.
Mitsubishi Building, 2-5-2 Marunouchi, Chiyoda-ku, Tokyo 100-0005, Japan
Tel: (81 3) 6213-6860 Fax: (81 3) 6213-6175
Email: hatano-junji@sc.mufg.jp
Mitsubishi UFJ Securities is the CDM advisor to the Project and is also a project participant. The contact
details of the above entity determining the baseline is listed in Annex I.
SECTION E.: Estimation of GHG emissions by sources:
E.1. Formulae used:
E.1.1
Selected formulae as provided in appendix B:
E.1.1.1. Baseline emissions:
(1)
Electricity generation for a grid
As prescribed in Section B.5.1., the method of option (b) of item 7 for Type I.D. is selected for
calculating grid electricity baseline emission for the Project. The formula is expressed as follows:
Baseline emission for
grid electricity
(tCO2/year)
=
Electricity generated by
the Project
(kWh/year)
x
Weighted average emission
of current generation mix
of SESB grid
(tCO2/kWh)
As mentioned above, the electricity generation from the power plant will be supplied to SESB distribution
grid, therefore the weighted average emissions (in kg CO2equ/kWh) of current generation mix of SESB
grid is used for baseline estimation. Table 2 shows the generation mix of SESB grid for the year of 2005.
Table 2. The generation mix of SESB grid in 20052.
Type of fuel
Hydroelectric
Natural Gas
Heavy Oil (MFO)
Diesel Oil
Lignite
Imported Coal
2
Fuel consumption
(kt/yr)
455
332
162
-
Electricity generated
(MWh/yr)
462,556
1,418,749
996,439
499,468
-
The generation mix and fuel mix shown in Table 2 includes both SESB and independent power productions
(IPPs).
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Renewable Energy
Total
27
977
14,004
3,391,217
Since no official Malaysia grid carbon emission factor (CEF) is publicly available, the emission factor is
derived from the above fuel consumption and electricity generation data using IPCC factors and
calculation methods:CO2 emission
factor for fuel
type i
(tCO2/kt)
=
Net calorific value
of fuel type i
x
(TJ/kt)
C emission
factor of the
fuel type i
(tC/TJ)
x
Oxidation
factor of the
fuel type i
x
Mass conversion
factor
(44tCO2/12tC)
The volume of CO2 emission is then calculated:CO2 emission
for fuel type i
(tCO2)
=
CO2 emission factor
for fuel type i
(tCO2/kt)
Amount of fuel i
x consumed by the grid
(kt)
Then:
CO2 emission
factor for the grid
(tCO2/MWh)
=
∑CO2 emission for all
fuel types in the grid
(tCO2)
÷
∑Electricity generated for
the entire grid
(MWh)
Taking natural gas as an example:
CO2 emission factor = 39.77 TJ/kt x 15.3 tC/TJ x 0.995 x 44 tCO2/12 tC
= 2,220.20 tCO2/kt
CO2 emission
= 2,220.20 tCO2/kt x 455.5 kt
= 1,011,285 tCO2
The CO2 emission for all other fuels is derived using the same calculation method. By weighting these
individual carbon emission factor (CEF) in accordance with their contribution in the grid electricity
generation, a weighted average emission for the current generation mix of SESB grid of 0.786tCO2/MWh
was obtained. Table 3 summaries the relevant input and resultant data for the calculation.
Table 3. SESB grid CO2 emission factor.
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Type of fuel
page 19
Fuel
consumptiona
(kt)
Hydroelectric
Natural Gas
Heavy Oil
(MFO)
Diesel Oil
Lignite
Imported Coal
Renewable
Energy
Total
Electricity
generateda
(MWh)
Net calorific
valuea
(TJ/kt)
Carbon
emission
factorb
(CEF;tC/TJ)
Oxidation
factorc
(OX)
CO2
emission
(tCO2)
Individual
CEF
(tCO2/MWh)
-
462,556
-
-
-
-
-
455
1,418,749
39.77
15.3
0.995
1,011,285
0.713
332
996,439
43.96
21.1
0.990
1,118,382
1.122
162
499,468
45.22
20.2
0.990
536,681
1.075
-
-
-
-
-
-
-
27
14,004
-
-
-
-
-
977
3,391,217
2,666,348
0.786
a
Actual data for the year of 2005 sourced from SESB grid.
IPCC reference manual, 1997, table 1.1.
c
IPCC reference manual, 1996, table 1.6.
b
According to the project plans, the maximum gross capacity of the power plant is 11.5MW and the net
electricity output to the SESB grid3 is 10MW. With the minimum annual operating hours of 8,059 hours,
the electricity generated by the Project is calculated as follows:Electricity generated by the Project
= 10 MW x 8,059 h/yr
= 80,592 MWh/yr
Applying the weighted average emissions for the current generation mix of SESB grid as shown in Table
3, the baseline emission for grid electricity is:Baseline emission for grid electricity = 80,592 MWh x 0.786 tCO2/MWh
= 63,366 tCO2/yr
(2)
Biomass decay
The baseline emission for methane avoidance is calculated based on item 3 of Type III.E, the formulae
are expressed as follows:
CH4_IPCCdecay = (MCF * DOC * DOCF * F * 16/12)
3
The actual amount of electricity generated by the Project will be monitored after project implementation. The
monitored amount of electricity will be used in the calculation of Certified Emission Reductions (CERs).
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page 20
Where,
CH4_IPCCdecay IPCC CH4emission factor for decaying biomass in the region of the project activity
(tonnes of CH4/tonne of biomass or organic waste)
MCF
methane correction factor (fraction) (default is 0.4)
DOC
degradable organic carbon (fraction) (default is 0.3)
DOCf
fraction DOC dissimilated to landfill gas (default is 0.77)
F
fraction of CH4in landfill gas (default is 0.5)
BEy = Qbiomass * CH4_IPCCdecay * GWP_CH4
Where,
BEy
Qbiomass
GWP_CH4
Baseline methane emissions from biomass decay (tonnes of CO2 equivalent)
Quantity of biomass treated under the project activity (tonnes)
GWP for CH4 (tonnes of CO2 equivalent/tonnes of CH4)
Therefore,
Baseline emission factor for methane avoidance, CH4_IPCCdecay
= 0.4 x 0.3 tC/t biomass x 0.77 x 0.5 x 16 tCH4/12 tC
= 0.0616 tCH4/t biomass
The amount of EFB, that would otherwise be dumped and left to decay in the absence of the Project, is
estimated to be 153,125 tonnes per year. Hence,
Baseline emission for biomass decay
= 153,125 t/yr x 0.0616 tCH4/t x 21 tCO2e/tCH4
= 198,083 tCO2e/yr
The sum of baseline emissions is estimated as below:Baseline emissions for
displacement of grid electricity
63,366
(tCO2/yr)
+
Baseline emissions for
methane avoidance
198,083
(tCO2/yr)
=
Total baseline
emissions
261,448
(tCO2/yr)
E.1.1.2. Project emissions:
(1)
Project emissions from combustion of biomass
The project activity leads to GHG emissions in the forms of CO2, CH4 and N2O within the project
boundary mainly from combustion of biomass for electricity generation.
In accordance with the IPCC guidelines4, it is assumed that the amount of CO2 produced by combusting
of EFB in the project activity is equivalent to the amount of CO2 absorbed by the palm plants,
representing a cyclic process of carbon sequestration. Therefore, there would be zero emissions of CO2
from the project activity.
4
Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories: Reference Manual (Volume 3).
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Apart from the emission of CO2, methane (CH4) and nitrous oxide (N2O) are also released from the
biomass combustion process. The emissions of CH4 and N2O are estimated based on item 3 of Type III.E
stated in Appendix B of the SSC M&P as follows:PEy = Qbiomass * Ebiomass (CH4bio_comb * CH4_GWP + N2Obio_comb *N2O_GWP) /106
Where,
PEy
Qbiomass
Ebiomas
CH4bio_comb
Project activity emissions (kilotonnes of CO2 equivalent)
Quantity of biomass treated under the project activity (tonnes)
Energy content of biomass (TJ/tonnes)
CH4 emission factor for biomass waste (which includes dung and agricultural,
municipal and industrial wastes) combustion (kg of CH4/TJ, default value is 300)
CH4_GWP
GWP for CH4 (tonnes of CO2 equivalent/tonnes of CH4)
N2Obio_comb N2O emission factor for biomass waste (which includes dung and agricultural,
municipal and industrial wastes) combustion (kg of N2O/TJ, default value is 4)
N2O_GWP
GWP for N2O (tonnes of CO2 equivalent/tonnes of N2O)
The quantity and the energy content of EFB treated under the project activity are 153,125t/yr and
0.0084TJ/t respectively. By using the IPCC default factors, the project emissions are calculated.
Project emissions from biomass combustion
= 153,125 t/yr x 0.0084 TJ/t x (0.3 tCH4/TJ x 21 tCO2e/tCH4 + 0.004 tCH4/TJ x 310 tCO2e/tN2O)
= 9,698 tCO2e/yr
(2)
Other project emissions
As prescribed in Appendix B of the SSC M&P, the GHG on-site emissions generated from ancillary
activities, such as start-up operation and ash transportation, within the project boundary are considered
negligible.
Therefore, the sum of project emissions is estimated as below:Project emissions from
combustion of biomass
9,698
(tCO2e/yr)
Other project emissions
+
0
(tCO2e/yr)
=
Total project
emissions
9,698
(tCO2e/yr)
E.1.1.3. Leakage:
In accordance with item 8 of Type I.D. stated in Appendix B of the SSC M&P, leakage estimation is only
required if the energy generating equipment is transferred from another activity. Since the Project does
not involve the use of such equipment, no leakage estimation is required.
Similarly, no leakage calculation is required for type III.E. project activity as mentioned in Appendix B.
Other source of leakage activity, which contributes off-site GHG emissions outside the project boundary,
includes the transportation of EFB from the palm oil mills to the power plant within 50-90km. However,
as the Project plans to use palm bio-diesel, a carbon-neutral fuel, for its transportation activities, the
CDM-SSC-PDD (version 02)
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page 22
emission due to transportation is considered negligible and need not be included as project emissions
under Appendix B.
E.1.2Description of formulae when not provided in appendix B:
NA
E.1.2.1 Describe the formulae used to estimate anthropogenic emissions by sources of GHGs due
to the project activity within the project boundary:
NA
E.1.2.2 Describe the formulae used to estimate leakage due to the project activity, where
required, for the applicable project category in appendix B of the simplified modalities and
procedures for small-scale CDM project activities
NA
E.1.2.3
The sum of E.1.2.1 and E.1.2.2 represents the small-scale project activity emissions:
NA
E.1.2.4 Describe the formulae used to estimate the anthropogenic emissions by sources of GHGs
in the baseline using the baseline methodology for the applicable project category in appendix B of
the simplified modalities and procedures for small-scale CDM project activities:
NA
E.1.2.5 Difference between E.1.2.4 and E.1.2.3 represents the emission reductions due to the
project activity during a given period:
NA
E.2 Table providing values obtained when applying formulae above:
Table 5. Values of baseline emissions, project emissions and emissions reduction in tonnes of CO2
equivalent.
CDM-SSC-PDD (version 02)
CDM – Executive Board
No
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
Item
Electricity
baseline
Methane
avoidance
baseline
Total
baseline
emissions
Biomass
combustion
emissions
Other
project
emissions
Total
project
emissions
Leakage
Total
emissions
reduction
page 23
Relevant
section of
the report
Year
Total
2008*
2009
2010
2011
2012
2013
2014
2015*
E.1.1.1
47,524
63,366
63,366
63,366
63,366
63,366
63,366
15,841
443,559
E.1.1.1
148,562
198,083
198,083
198,083
198,083
198,083
198,083
49,521
1,386,578
E.1.1.1
(1)+(2)
196,086
261,448
261,448
261,448
261,448
261,448
261,448
65,362
1,830,136
E.1.1.2
7,274
9,698
9,698
9,698
9,698
9,698
9,698
2,425
67,888
E.1.1.2
0
0
0
0
0
0
0
0
0
(4)+(5)
7,274
9,698
9,698
9,698
9,698
9,698
9,698
2,425
67,888
E.1.1.3
(3)-(6)-(7)
0
188,812
0
251,750
0
251,750
0
251,750
0
251,750
0
251,750
0
251,750
0
62,937
0
1,762,248
* The date of the first crediting period starts from 01/04/2008 through to 31/03/2015 (7 years).
SECTION F.: Environmental impacts:
F.1. If required by the host Party, documentation on the analysis of the environmental impacts of
the project activity:
The legislation related to Environmental Impact Assessment (EIA) in Malaysia is the Environmental
Quality Order of 1987 based on the Environment Quality Act of 1974. According to this Order5, the
implementation of EIA is required only for the following types of activities:
Construction of steam generated power stations burning fossil fuels and having a capacity of more
than 10 megawatts.

Dams and hydroelectric power schemes with either or both of the following:
 dams over 15 metres high and ancillary structures covering a total area in excess of 40 hectares.
 reservoirs with a surface area in excess of 400 hectares.

Construction of combined cycle power stations.

Construction of nuclear-fuelled stations.
Therefore, the power plant with 11.5MW generation capacity is not required to carry out an EIA under
Malaysia regulations.
5
Environmental Quality (Prescribed Activities) (Environmental Impact Assessment) Order 1987
CDM-SSC-PDD (version 02)
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SECTION G.
page 24
Stakeholders’ comments:
G.1. Brief description of how comments by local stakeholders have been invited and compiled:
A local public hearing meeting was held at Balai Laya, Sandakan, Sabah, Malaysia on Tuesday, January
31, 2006, with the support from the elected local representative of Elopura, YB Au Kam Wah.
Approximately 85 persons attended the meeting. The breakdown of the participants is as follows.
Organization / Participants
Number of participants
YB Au Kam Wah (the Elected Representative of Elopura)
Mr. Francis Tham (Representative of SBSB)
Miss Marietta Rachel Lukie (Representative Manager of SBSB)
Local village chiefs and residents
Total
1
1
1
~ 82
~ 85
In the meeting, the representative of SBSB provided an overview of the Project, as follows:
 Background of the Project;
 Benefits to the local community;
 Project implementation and parties;
 Description of the power plant and the technology used; and
 Compliance with government policy.
Following this, the local stakeholders were encouraged to raise comments and questions related to the
Project in the Q&A session.
G.2. Summary of the comments received:
During the meeting, local stakeholders requested for further explanation on various issues, most
importantly on both the negative and positive impacts on the environment, such as the impact of the
Project on air quality, water quality and noise levels, and the potential benefits to the community, such as
employment opportunities and local electricity and water suppliers. All questions were duly answered and
no negative comments were raised. At the end of the session, most of the attendants expressed their
support of the Project.
G.3. Report on how due account was taken of any comments received:
As there were no negative comments on the Project, no further action was taken.
CDM-SSC-PDD (version 02)
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page 25
Annex 1
CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY
Organization:
Street/P.O.Box:
Building:
City:
State/Region:
Postcode/ZIP:
Country:
Telephone:
FAX:
E-Mail:
URL:
Represented by:
Title:
Salutation:
Last Name:
Middle Name:
First Name:
Department:
Mobile:
Direct FAX:
Direct tel:
Personal E-Mail:
Seguntor Bioenergy Sdn. Bhd.
Jalan Lintas
1st Floor, Lot 8 (1-1-1), Kolam Centre Phase 3
Kota Kinabalu
Sabah
88300
Malaysia
+60 88 313 828
+60 88 313 829
fkktham@gmail.com / fkktham@streamyx.com
NA
Organization:
Street/P.O.Box:
Building:
City:
State/Region:
Postcode/ZIP:
Country:
Telephone:
FAX:
E-Mail:
URL:
Represented by:
Title:
Salutation:
Last Name:
Middle Name:
First Name:
Department:
Mobile:
Direct FAX:
Direct tel:
Agritech Marketing Co., Ltd.
2554-63 Hongyotoku
Managing Director
Mr.
Tham
‘Francis’ Kin Kong
NA
+60 12 828 3030
+60 88 313 828
+60 88 313 829
fkktham@gmail.com / fkktham@streamyx.com
Ichikawa-city
Chiba
272-0103
Japan
+81 47 307 4833
+81 47 307 5676
ito@imoplant.com
http://www.imoplant.com
Director & Vice President
Mr.
Ito
None
Hideyuki
NA
+80 903 501 6879
+81 47 307 5676
+81 47 307 4833
CDM-SSC-PDD (version 02)
CDM – Executive Board
Personal E-Mail:
ito@imoplant.com
Organization:
Street/P.O.Box:
Building:
City:
State/Region:
Postcode/ZIP:
Country:
Telephone:
FAX:
E-Mail:
URL:
Represented by:
Title:
Salutation:
Last Name:
Middle Name:
First Name:
Department:
Mobile:
Direct FAX:
Direct tel:
Personal E-Mail:
Mitsubishi UFJ Securities Co., Ltd.
2-5-2 Marunouchi
Mitsubishi Building
Chiyoda-ku,
Tokyo
100-0005
Japan
813 6213 6860
813 6213 6175
hatano-junji@sc.mufg.jp
http://www.mufg.jp
Chairman
Mr
Hatano
None
Junji
Clean Energy Finance Committee
NA
813 6213 6860
813 6213 6175
hatano-junji@sc.mufg.jp
page 26
CDM-SSC-PDD (version 02)
CDM – Executive Board
page 27
Annex 2
INFORMATION REGARDING PUBLIC FUNDING
-----