UNFCCC/CCNUCC CDM – Executive Board Page 1 PROJECT DESIGN DOCUMENT FORM FOR SMALL-SCALE CDM PROJECT ACTIVITIES (F-CDM-SSC-PDD) Version 04.1 PROJECT DESIGN DOCUMENT (PDD) Title of the project activity ACP Thermal Harvesting™ Project Version number of the PDD 01 Completion date of the PDD 26/03/2014 Project participant(s) - Vuselela Energy (Pty) Ltd. - Eternity Power RF (Pty) Ltd. Host Party(ies) South Africa Sectoral scope(s) and selected methodology(ies) Sectoral scope 04: Manufacturing industries AMS-III.Q version 5 “Waste energy recovery (gas/heat/pressure) projects”. Estimated amount of annual average GHG emission reductions 20,608 tons CO2 UNFCCC/CCNUCC CDM – Executive Board Page 2 SECTION A. Description of project activity A.1. Purpose and general description of project activity >> The project activity is the ACP Thermal Harvesting™ Project, hereafter referred to as Thermal Harvesting Project. Definitions as provided in AMS III.Q and how they apply to the Thermal Harvesting Project Recipient facility. The facility that receives useful energy generated using waste energy under the project activity in the waste energy generation facility. It may be the same waste energy generation facility. • The recipient facility is Rustenburg Platinum Mines Limited – Waterval Smelter (hereafter referred to as Waterval), which will receive electricity. Waste energy generation facility (“project facility”). The facility where the waste energy which is utilized by the CDM project activity is available. The project activity can be implemented by the owner of the facility or by a third party (e.g. ESCO). If the waste energy is recovered by another facility, i.e. a third party in a separate facility, the “project facility” will encompass both the waste energy generation facility and the waste energy recovery facility. In a situation where waste gas is exported instead of supplying useful energy to a recipient plant, then the project facility shall include the recipient facility. • A third party, independent power producer (IPP), special purpose vehicle (SPV), Eternity Power (Pty) Ltd (hereafter referred to as Eternity Power) is proposing to implement the project activity in a separate power generation facility. Therefore, the ‘project facility’ includes (1) Waterval where the waste energy is produced; and (2) the waste energy recovery plant and power generation plant owned and operated by Eternity Power. Waste energy. Energy contained in residual streams from industrial processes in the form of heat or pressure, for which it can be demonstrated that it would not have been recovered in the absence of the project activity. Examples of waste energy include the energy contained in gases flared or released into the atmosphere, the heat or pressure from a residual stream is not recovered and therefore is wasted. Gases that have an intrinsic value in a spot market as an energy carrier or chemical (e.g. natural gas, hydrogen, liquefied petroleum gas, or their substitutes) are not eligible under this category. • The waste energy is in the form of heat dissipated to atmosphere in the baseline scenario, which is also the historic scenario. List of Acronyms applied in the PDD ACP: Anglo Platinum Converting Process HPCW: High Pressure Cooling Water System IPP: Independent Power Producer ORC: Organic Rankine Cycle SPV: Special Purpose Vehicle Purpose of the project activity The Thermal Harvesting Project is an initiative to recover waste heat from a High Pressure Cooling Water System (HPCW) in the Anglo Platinum Converting Process (ACP) and divert the waste heat to an UNFCCC/CCNUCC CDM – Executive Board Page 3 Organic Rankine Cycle (ORC) facility, which will convert heat into usable electrical energy, with a maximum rated output capacity (MRC) of 4.29MW1. The project will generate an expected net total of 21,369 MWh of electricity per annum. The electrical power generated in the power plant will be exported back to Waterval. The implementation of the Thermal Harvesting Project will have no impact on the existing production operations at Waterval. Construction of the project started in 22 August 2013. The crediting period selected is a fixed 10 years and the amount of emission reductions that will be generated during the crediting period is estimated at 20,608 tons per annum. Scenario prior to the implementation of the project activity Current scenario and baseline for electricity Waterval currently purchases all the electricity needed for its production activities directly from Eskom, the national power utility2. The electricity is delivered via the South Africa power grid. Current scenario and baseline for waste heat The waste heat captured by the platinum converter cooling system is dissipated to atmosphere through air cooled heat exchangers. Currently the following conditions apply for the Waterval site − No waste heat was or is currently recovered for the generation of electricity or any other purpose at the site. − No electricity generation equipment is installed on site that converts waste heat to electricity. National grid information for South Africa The national utility, Eskom, is a government-owned entity and generates approximately 95 per cent of South Africa’s electricity 3 . Private generators produce approximately 3% of national electricity requirements and municipalities produce less than 1%. Approximately 90% of electricity in South Africa is derived from coal-fired power stations4. Note: The “Tool to calculate the emission factor for an electricity system” is applied, i.e. the combined margin emission factor of the electricity system is used. The Republic of South Africa is a member of the Southern African Power Pool and therefore the published combined margin emission figure in the Standardized baseline “Grid emission factor for the Southern African power pool” is applied to determine the emission reductions. Waterval Background 1 Design parameters in “ACP Thermal Harvesting Project Signed Design Base_20130409.pdf” 2 Refer to electricity bills examples. 3 4 Electricity Supply Industry of South Africa Report.pdf, page 6 Electricity Generation Statistics in South Africa.pdf, http://www.geni.org/globalenergy/library/energy-issues/south africa/index_chart.html UNFCCC/CCNUCC CDM – Executive Board Page 4 Anglo Platinum Ltd is the largest primary platinum producer in the world and operates three smelters in South Africa, one of which is Waterval Smelter. Each processing step at Waterval is designed to increase the grade (concentration) of the valuable components of the original ore, by reducing the bulk of the products. The mined ore undergoes comminution, and a gravity concentrate is extracted. The sulphides are concentrated by flotation. The flotation concentrates undergo smelting and the matte containing the valuable platinum group metals (pgm5) is transferred to converters where air is blown through it to remove iron and sulphur. This is known as the converting process, which produces a PGM-containing nickel-copper matte. The converting process is an exothermic process that produces a high temperature off-gas of approximately 1200oC. High Pressure Cooling process6 The high pressure cooling system maintains the circulation of cooling water through membranes in order to remove the heat from the hot converter off gas. The heat that is extracted by water is then rejected in the fin fan coolers by passing cooling air among the finned tubes that contain hot water. In normal operation circulation water temperature is kept at a high temperature (minimum 240°C) in order to keep tube surface (off gas-side) at a higher temperature than acid dew point which would result in corrosion on tube surfaces. One of the main energy losses in the platinum production process is heat dissipated in the cooling system. General description of the proposed project activity (Project Scenario) Project scenario for the electricity Electricity generated from the Thermal Harvesting Project will be replacing electricity imported by Waterval from the national utility (Eskom) via the national grid. Greenhouse gas emissions associated with the electricity generation in the national grid will be reduced as a result. Project scenario for the waste energy The power plant consists of a purpose designed Thermal Harvesting™ and integrated ORC system capable of converting the thermal energy (heat) generated in the exothermic ACP into electrical energy. The primary new equipment components of the Thermal Harvesting Project include the following main equipment: - Organic Rankine Cycle (ORC) The primary unit process is the Organic Rankine Cycle unit that utilises waste heat to produce electrical energy. ORC technology involves passing a heat source through a heat exchanger, transferring its energy to a working medium in a closed cycle that creates high vapor pressure, even at low temperatures. This pressure is used to drive a turbine connected to a generator. The vapor is returned to its fluid state in a forced-air heat exchanger, cooled and then fed back into the vaporisation cycle. More detail information regarding the equipment and the proposed process is provided in Section A.3. 5 Platinum group metal is a family of six grayish to sliver-white metals with close chemical and physical affinities; platinum (Pt), iridium (Ir), and osmium (Os), palladium (Pd), rhodium (Rh) and ruthenium (Ru). “Energy Technology 2011: Carbon Dioxide and Other Greenhouse Gas Reduction”, page 13, edited by Neale R. Neelameggham, Cynthia K. Belt, Mark Jolly, Ramana G. Reddy, James A. Yurko 6 Refer to “HP Cooling Functional Specification.pdf” UNFCCC/CCNUCC CDM – Executive Board Page 5 In the Waterval smelter, the heat generating plant's waste cooling water will be used to heat pentane, which has a boiling point of only 36°C. - Backup equipment No backup electricity generation equipment will be installed as part of the project in the case that the proposed power plant experiences outages or abnormal conditions. Also, the Organic Rankine Cycle system is not designed to run on fuels other than the waste energy from the ACP cooling circuit (refer to “ORC Fuel Source Confirmation Letter.pdf”). Therefore, no fossil fuel will be used for backup purposes of any kind in the power plant to generate electricity. Sustainable Development The project will contribute to sustainable development in South Africa in the following ways: Environment Benefits The project will displace some coal-dominated power generation in South Africa with power generated from waste gas, thereby reducing the carbon footprint of South Africa. Social Benefits The proposed development also represents an investment in waste energy to power generation, which, given the challenges created by climate change, represents positive social benefit for society as a whole. The key social issues associated with the construction phase include the creation of employment and the opportunity for skills development and training. The construction phase will employ approximately 150 people over the construction period. The proposed power plant is envisaged to employ 2 full time employees and, as such, will create potential employment opportunities in the province. Economic Benefits Given the highly technical nature of the power plant, the opportunity for South African production and local content is likely to increase over time, however will be lower for the first number of waste energy to power projects. Local economies in the Rustenburg and Waterval area are likely to benefit where already established industries can be utilised by the project, such as civil engineering skills, construction skills and low skilled labour, however for the equipment manufacture industry, this is likely to be introduced and increased over time. Technology Transfer • Significant benefits exist in transfer of technology to South Africa since this type of technology has not been applied anywhere in South Africa in any industrial facility as yet. • The power plant will use only local manpower for operation. The technology supplier, as part of its supply, will train these local operators in the required skills for reliable independent operation. It is further envisaged that as the population of this type of technology in SA grows, local teams will be trained up to maintain the equipment. • Because of the significant number of Smelter plants operational in South Africa, in conjunction with the modularity of the technology, there is potential to replicate the same configuration at every one of these plants, even if capacity differs between plants. Vuselela has set itself the goal of using this approach to enable an industry transformation throughout the Smelting Industry. UNFCCC/CCNUCC CDM – Executive Board Page 6 A.2. Location of project activity A.2.1. Host Party(ies) Republic of South Africa A.2.2. Region/State/Province etc. >> North-West Province, Bojanala Platinum District Municipality A.2.3. City/Town/Community etc. >> Near Rustenburg A.2.4. Physical/ Geographical location >> GPS coordinates for the site: ACP Thermal Harvesting™ Co-ordinates Latitude Longitude -25.675312° 27.329109° 25°40'31.12"S 27°19'44.79"E 25° 40.519'S 27° 19.747'E UNFCCC/CCNUCC CDM – Executive Board Page 7 A.3. Technologies and/or measures >> The scenario existing prior to the start of the implementation of the project activity, with a list of the equipment and systems in operation In the existing design, the latent heat in the cooling circuit is dissipated unused as waste heat to the environment through a bank of closed circuit fin-fan coolers. The existing equipment that is relevant to the Thermal Harvesting Project includes the following: 1. Anglo Platinum Converters – where the heat is produced from the exothermic converting process; and 2. Cooling circuit The figure below provides a layout of the existing heat generation and cooling system and shows that the process is designed to dissipate all heat energy produced in the converters. UNFCCC/CCNUCC CDM – Executive Board Page 8 Figure 1: Layout of the historic converters and cooling configuration !"#$%&'()&'*+(,*-%&./(0+&123423$( 4#'$&9/):&;/) ,5') <+(8/$) ) 2"$3/'1/'):&;/) *)+),#-./01) 2"$3/'1/'-) ="1)>&1/') *?@"2) 40">)'&1/)A)BC*DD)1E F"#') 2"0%)>&1/') **D"2) 45$67&$)&5')2""05$8) -(-1/.) =/&1)%5--5G&1/%)1")&1."-GF/'/) H)A)I/1>//$)@:J)&$%)?@):J) !"#$%&'() UNFCCC/CCNUCC CDM – Executive Board Page 9 Design Information for the converter and associated cooling system Table 1: Equipment information for the current scenario at Waterval Converter and Cooling system i. Age of the converters based on manufacturer’s specifications Ausmelt converters Converter 1 commissioned in early 2003 Converter 2 commissioned in 2006 ii. iii. Age of the cooling system based on manufacturer’s specifications Function of the cooling system Air cooling system commissioned in 2003 The purpose of the high pressure cooling system is to maintain the circulation of cooling water through the Freeboard and Uptake membranes in order to remove the heat from the hot converter off gas. The heat that is extracted by water is then rejected in the fin fan coolers by passing cooling air among the finned tubes that contain hot water. Refer to “HP Cooling Functional Specification.pdf” iv. Existing and forecast installed capacities for the existing converters Converter design specifications7 are provided by the technology supplier. v. The monitoring equipment and their location in the system Existing meters and analysers that are installed on the existing cooling system and can be seen on the P&ID of the system. Refer to P&ID.pdf vi. The types and levels of services (normally in terms of mass or energy flows) provided by the systems and equipment that are being installed under the project activity and their relation, if any, to other manufacturing/productio n equipment and systems outside the project boundary. - The type of service delivered by the Thermal Harvesting Project is electricity. The net level of service is 21,369 MWh per year (refer to the CER calculations Version 01_Vusulela.xlsx). The primary new equipment components of the Thermal Harvesting Project are provided in “ACP Equipment list.pdf, page 2 of 3”. The main equipment are: - 1 Vaporizer-Superheater; 1 Preheater; 1 Recuperator; 12 Condenser coil bundles; 1 Turbine; 1 Generator There is no relation between the type and level of service or the equipment installed with other manufacturing or production outside the project boundary. 7 Detailed Specifications for the converters are confidential and will be submitted to the validator for view only UNFCCC/CCNUCC CDM – Executive Board Page 10 Converter and Cooling system vii. Explain how the same types and levels of services provided by the project activity would have been provided in the baseline scenario. The 21,369 MWh electricity will be provided by Eskom via the national grid in the baseline scenario. The scope of measures that are being implemented within the project activity, with a list of the equipment and systems that will be installed Figure 2: Proposed power generation system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igure 2 provides a layout of the proposed power generation system and shows the integration with the existing cooling system of the converters. The ACP cooling system will be operating in the same fashion as previously but the cooling will take place by means of a heat exchanger and the energy transferred to the Organic Rankine Cycle (ORC) driver fluid and not via the historic air coolers to the environment. UNFCCC/CCNUCC CDM – Executive Board Page 11 The hot pressurised cooling water returned from the converter hoods bypasses the existing fin fan coolers to the ERP heat exchanger where it is cooled and returned to the existing coolers discharge header. The hot water from the converter hood heats and vaporises an organic driver fluid which then expands through a turbine to generate electricity. Thereafter the organic driver fluid is condensed and pumped back to the heat exchanger in a closed circuit process. The ERP ties into the existing cooling water manifolds and is viewed as a cooling system similar to the existing fin-fan coolers. The ERP is selected as the primary cooling system and the existing fin-fan coolers as standby equipment to allow for instances where the ERP cannot manage with increased cooling loads or during ERP shutdowns. Description of the ORC power plant The ORC is based on a thermodynamic process in which an organic fluid (pentane) is pumped from condensers into a vaporizer where it absorbs heat from a heat source (hot water) until it reaches the boiling point, causing the motive fluid (pentane) to vaporize. The pentane then expands in the turbine producing rotational shaft power by transforming kinetic energy gained by the vapor’s expansion process. The ORC proposed for the energy recovery plant is a modular power unit comprised of all the equipment and controls required to convert the hot cooling process water into useful electric power. In the existing design, the latent heat is dissipated unused as waste heat to the environment through a bank of closed circuit fin-fan coolers. In order to harvest the energy in usable form, the converter cooling water needs to be diverted to a pressurized heat exchanger capable of transferring the latent energy from the cooling water to the ORC motive fluid that drives a turbine to generate electricity. Specifically, the pressurised converter cooling water will be piped from the existing hot side (converter return) header to the ORC evaporate where the thermal energy is extracted. The cooled water will be returned to the cold side (converter supply) header bypassing the existing fin-fan coolers. The low-pressure vapour flows to the air-cooled condensers, condense and is pumped back into the preheater and vaporizer in its liquid state. The exhaust vapors from the turbine flow to the Recuperator, where heat is recuperated to the liquid working fluid pumped from the condenser. After passing through the Recuperator, the working fluid vapors flow to the air-cooled condenser, where it is condensed. UNFCCC/CCNUCC CDM – Executive Board Page 12 Figure 3: Schematic layout of Ormat Energy Converter, Heat and mass balance diagram Note 1: Source of diagram is the “Heat&Mass balance - 23-Feb-12.pdf” The ORMAT® Energy Converter (OEC) unit consists of: • Turbine-generator - one organic vapour turbine driving one generator, mounted on a skid • Lube and seal oil system • Air-cooled condensers • Vaporizer • Recuperator • Pre-heater • Motive fluid pumps and motors • Internal valves, controls, motive fluid piping (pre-fabricated sections for final field fit-up, welding and assembly), hardware and auxiliaries within the OEC Table 2: Design Parameters for the ORC Plant Item Value Source document Available Thermal Energy in hot water Up to 37 MW thermal - ACP Thermal Harvesting Project Signed Design Base_20130409.pdf, Page 5 of 7; - ACP data evaluation UNFCCC/CCNUCC CDM – Executive Board Page 13 Thermal energy design point (100%) 23.36 MW thermal ACP Thermal Harvesting Project Signed Design Base_20130409.pdf, Page 5 of 7; Electricity Production Design Point 3.85 MWe - ACP Thermal Harvesting Project Signed Design Base_20130409.pdf, Page 5 of 7; - Ormat Contract Capacity The electrical subsystem consists of the mechanical-electrical energy transfer equipment and includes a generator, power and control boards. The ORC generators are supplied complete with synchronization and control equipment for HT connection. The control subsystem is based on a programmable logic controller (PLC) which can accept all discrete and analog signals coming from the system components, process them according to a dedicated program, and send back logic or analog output signals. The unit includes a personal computer with dedicated application used by the operator to operate the ORC and monitor its functions locally and remotely - Backup equipment No backup electricity generation equipment will be installed as part of the project in the case that the proposed power plant experiences outages or abnormal conditions. Also, the ORC are not designed to run on fuels other than the waste energy (refer to “ORC Fuel Source Confirmation Letter.pdf”). Therefore, no fossil fuel will be used for backup purposes of any kind in the power plant to generate electricity. - Design parameters The main focus on the process design is to maximise the electrical production potential with the lowest possible capital while maintaining a low risk profile. This requires converting as much as possible thermal energy to electrical energy through the cyclical operation of the ACP while being non-intrusive to the process. This was done by evaluating the heat profiles of the ACP over a two year period (2 December 2008 to 1 January 2011) and completing both a statistical evaluation and recovery estimation on the data. Based on this evaluation and review of the optimum ORC performance point, the following operational point was selected as the project design point: The operational limitations of the Thermal Harvesting Project include the following: UNFCCC/CCNUCC CDM – Executive Board Page 14 The project’s operational efficiency is based on (1) thermal heat load from the ACP, (2) ambient environmental temperature influencing the ORC temperature approach and heat exchange efficiency, (3) the ACP hot water inlet temperature, outlet temperature and subsequent temperature differential. The Thermal Harvesting Project will not retain its full operational efficiency throughout the operational envelope but will still produce electrical power. The correction curves in Annexure C, Appendix 1.2 and 1.3 will be utilised to calculate and predict plant performance. The plant design criteria are based on the plant design philosophy that supports a nonintrusive plant operation and interaction. The full plant design criteria (ACP Thermal Harvesting Project Signed Design Base_20130409.pdf) is available and in conjunction with the Site Information datasheets (EPSC-E125P201-001 Site Information Data sheet.pdf) highlights current site conditions on which the plant is based, these are highlighted as follows: The new plant control philosophy is to a large extent the same as the current operational regime with the following two exceptions: The existing plant cooler bypass line will be substituted by a new bypass line that is also the feed line to the Thermal Harvesting Project. The new bypass line will be an extension of the manifold to incorporate the ORC as an additional cooler to the circuit. The ORC will act as the primary cooler but due to design limitation of thermal cooling capacity the existing coolers will be used in high thermal load conditions. As per the Operating and Control Philosophy (“Operating and Control Phil Rev D_Final.pdf”) the outlet temperature of the ORC will be controlled to a minimum of 220°C. If the thermal load in the system increases the unit will increase power production until it reaches its maximum production capacity of 25MW thermal (this is dependent on site and environmental conditions – see correction curves). The temperature in the cooling system will be allowed to rise until 230°C when the first air cooler will be activated to assist in the cooling and thereafter every 5°C for the next cooler. - Lifetime of equipment Average lifetime of the organic rankine equipment based on manufacturer’s specifications is over 20 years (Refer to “Ormat Equipment Lifetime Letter.pdf”). UNFCCC/CCNUCC CDM – Executive Board Page 15 A.4. Parties and project participants Party involved (host) indicates a host Party Private and/or public entity(ies) project participants (as applicable) Indicate if the Party involved wishes to be considered as project participant (Yes/No) South Africa (host) Private Entity: Vuselela Energy (Pty) Ltd. No South Africa (host) Private Entity: Eternity Power RF (Pty) Ltd. No The project is housed in a special-purpose vehicle, Eternity Power (Pty) Ltd, in which Investec and alternative energy project specialist Vuselela have stakes of 80% and 20% respectively. Eternity Power RF (Pty) Ltd Eternity Power is a privately owned Independent Power Producer (IPP) registered in South Africa. It is focussed on utilising wasted energy sources as input for the generation of electricity utilising the most appropriate technologies. Vuselela Energy (Pty) Ltd Vuselela was conceived in 2009 to originate and develop clean energy projects based on capturing and utilisation of waste heat sources in the Metallurgical industry. Rustenburg Platinum Mines Limited – Waterval Smelter Anglo American Platinum is the world’s leading primary producer of platinum group metals and accounts for approximately 40% of the world’s newly mined platinum. The Company is listed on the JSE Limited and has its headquarters in Johannesburg, South Africa. The Group’s smelting and refining operations are wholly owned through Rustenburg Platinum Mines Limited and are situated in South Africa. Anglo American Platinum operates three smelting complexes, namely the Mortimer, Waterval and Polokwane smelters. Concentrate received from the concentrators operated by the Company, joint-venture partners and third parties is smelted at the smelters, producing furnace matte. The matte is then treated using the Anglo American Platinum Converting Process (ACP), which is carried out at the Waterval Smelter complex in Rustenburg. Source of information: Anglo Platinum website http://www.angloplatinum.com/business/operations/smelters.asp, accessed on 11 June 20138. 8 Preview of “Anglo American Platinum > Our Business > Smelters”.pdf UNFCCC/CCNUCC CDM – Executive Board Page 16 A.5. Public funding of project activity >> No public funding is involved in the development of the proposed project activity. All funds will be contributed either by equity providers and/or as debt in a project finance structure (refer to “Eternity Power Structure.pdf”). A.6. Debundling for project activity >> The following table summarises the requirements as specified in Annex 13, EB54, Guidelines on assessment of de-bundling for SSC project activities, (Version 03) of the simplified modalities and procedures for small-scale CDM project activities of the simplified modalities and procedures for smallscale CDM project activities. Table 3: Summary of the simplified modalities for small scale projects Appendix C, paragraph 2 requirements The proposed project Consider whether another small-scale CDM project activity with the same project participants have been registered. Eternity Power has not registered another smallscale project activity. Consider whether another small-scale CDM project activity in the same project category and technology/measure has been registered by the project participant. The proposed project activity is a small-scale project activity implemented using III.Q. Whether the project participant has registered a smallscale CDM project activity within the previous 2 years. Eternity Power has not registered any project activity in the previous 2 years. Whether there is another registered small-scale CDM project activity whose project boundary is within 1km of the project boundary of the proposed small-scale activity at the closest point. Eternity Power has not registered any project activity in the same project category with or using the same technology. There was no registered or application for registration small scale CDM project activity in the past two years within 1km of the project boundary related to the proposed project. It is confirmed that the proposed small-scale project activity is not a debundled component of a large project activity. UNFCCC/CCNUCC CDM – Executive Board Page 17 SECTION B. Application of selected approved baseline and monitoring methodology B.1. Reference of methodology >> Other project activities Category Q: “Waste energy recovery (gas/heat/pressure) projects” Sectoral Scope 04: Manufacturing industries AMS-III.Q Waste energy recovery (gas/heat/pressure) projects, Version 5 Tools applied: • Tool to calculate the emission factor for an electricity system, Version 04; • • Tool for the demonstration and assessment of additionality, Version 07; Tool to determine the remaining lifetime of equipment, Version 01. • Standardized baseline: Grid Emission Factor for the Southern African Power pool, Version 01. Note: The “Tool to calculate the emission factor for an electricity system” is applied, i.e. the combined margin emission factor of the electricity system is used. The Republic of South Africa is a member of the SAPP and therefore the published combined margin emission figure in the Standardized baseline can be applied. For the purpose of this PoA, the grid emission factor as published in the Standardized baseline “Grid emission factor for the Southern African power pool” is applied. B.2. Project activity eligibility >> The following table summarises the applicability criteria for projects using AMS-III.Q. Applicability criteria from the various Tools that are applied in the project activity are also provided. This project activity meets all of the criteria – this is justified in the table below. UNFCCC/CCNUCC CDM – Executive Board Page 18 Table 4: Assessment of the Applicability Criteria from AMS-IIIQ Applicability Condition from AMS-IIIQ 1. The methodology is for project activities that utilize waste gas and/or waste heat at existing facilities and convert the waste energy carried in the identified WECM stream(s) into useful energy. The WECM stream may be an energy source for: (a) Cogeneration; or (b) Generation of electricity; or (c) Direct use as process heat; or (d) Generation of heat in an element process; or (e) Generation of mechanical energy. Comment on whether the Applicability Criteria applies to the Thermal Harvesting Project. If it applies, a discussion is provided to demonstrate how the Thermal Harvesting Project complies with the criteria. The waste energy will be utilised for the generation of electricity only. Reference documentation: The Technical Feasibility study confirms that the scope of the Thermal Harvesting Project is the generation of electricity only and this is again supported by the scope of the project design, equipment list, quotes obtained etc. Refer to the following supporting documents: 2. The recovery of waste energy should be a new initiative (no waste energy was recovered from the project activity source prior to the implementation of the project activity).10 9 • • • Summary of Applicability of the Thermal Harvesting Project to the criteria This criterion applies to the Thermal Harvesting Project. Thermal Harvesting Project complies with the criterion. “ACP Equipment list.pdf”, that demonstrates that only electricity generation equipment is included in the project activity; “Technical Feasibility Study Report”, describing the scope of the Thermal Harvesting Project as being the generation of electricity only from the waste heat available. “Supply Agreement between Eternity Power and Waterval.pdf9” defining that electricity generation only is the scope of the Thermal Harvesting Project. The recovery of the waste heat is a new initiative at the site. No waste heat is currently recovered at the site. This criterion applies to the Thermal Harvesting Project. This document is confidential and will be viewed by the DOE. 10 Project activities that recover a small amount of waste energy in the baseline may apply this methodology provided that the current practice of recovering small amounts of waste energy continues during the crediting period and that there is no diversion of the baseline waste energy use, i.e. only energy that was otherwise wasted through venting to UNFCCC/CCNUCC CDM – Executive Board Applicability Condition from AMS-IIIQ Page 19 Comment on whether the Applicability Criteria applies to the Thermal Harvesting Project. If it applies, a discussion is provided to demonstrate how the Thermal Harvesting Project complies with the criteria. The following supporting documentation is provided to substantiate the statement that no energy is or has been recovered on site. • Summary of Applicability of the Thermal Harvesting Project to the criteria Thermal Harvesting Project complies with the criterion. An independent expert assessment was conducted (Refer to Waste energy assessment report.pdf). The report confirms that the waste energy that will be used to generate electricity in the Thermal Harvesting Project is currently dissipated and that it is not used for any other purpose in the industrial facility. The DOE will confirm that no energy is recovered in the existing process during the site visit. 3. Measures are limited to those that result in emission reductions of less than or equal to 60 kt CO2 equivalent annually. The electricity generation is limited by the design capacity of the generator. The potential net electricity generation has been determined based on the capacity of the generator, taking into account the parasitic load of the plant. Therefore, the CERs will not exceed 60kt CO2 equivalent per year. This criterion applies to the Thermal Harvesting Project. Thermal Harvesting Project complies with the criterion. atmosphere is utilized in the project activity. The project proponents may demonstrate this condition following annex 3 “Conservative baseline emissions if multiple waste gas stream(s) with potential for interchangeable application exist in the project facility” of the most recent ACM0012 “Consolidated baseline methodology for GHG emission reductions from waste energy recovery projects “. UNFCCC/CCNUCC CDM – Executive Board Applicability Condition from AMS-IIIQ 4a. Regulations do not require the project facility to recover and/or utilize the waste energy prior to the implementation of the project activity; 4b. Energy generated in the project activity may be used within the industrial facility or exported to other industrial facilities (included in the project boundary); 4c. A WECM stream that is released under abnormal operations (for example: emergencies, shutdown etc.) of the project facility shall not be included in the emission reduction calculations; Page 20 Comment on whether the Applicability Criteria applies to the Thermal Harvesting Project. If it applies, a discussion is provided to demonstrate how the Thermal Harvesting Project complies with the criteria. Summary of Applicability of the Thermal Harvesting Project to the criteria There are no regulations in South Africa that require Waterval to recover and/or utilize the waste heat prior to the implementation of the Thermal Harvesting Project. This criterion applies to the Thermal Harvesting Project. Supporting documentation: “Operating licence for Waterval.pdf” Thermal Harvesting Project complies with the criterion. The electricity generated in the Thermal Harvesting Project will be exported to Waterval, which is included in the project boundary. This criterion applies to the Thermal Harvesting Project. Supporting documentation: “Supply agreement between Eternity Power and Waterval_CONFIDENTIAL.pdf” - - In the case of abnormal conditions or emergencies at the ACP such as total power supply outage, the power plant is tripped immediately and the isolation valves providing hot water to the power plant is shut at the same time. The ACP diesel backup circulation pumps kick in and cool the water through existing fin fan coolers with natural convection. Since no waste energy can be supplied to the power plant under these conditions and the power plant is physically isolated from the ACP cooling circuit, no electricity can be produced under abnormal conditions and will therefore not be included in the emission reduction calculations Abnormal conditions of the ORC plant: Thermal Harvesting Project complies with the criterion. This criterion applies to the Thermal Harvesting Project. Thermal Harvesting Project complies with the criterion. UNFCCC/CCNUCC CDM – Executive Board Applicability Condition from AMS-IIIQ Page 21 Comment on whether the Applicability Criteria applies to the Thermal Harvesting Project. If it applies, a discussion is provided to demonstrate how the Thermal Harvesting Project complies with the criteria. Summary of Applicability of the Thermal Harvesting Project to the criteria Abnormal and upset conditions at the power plant will be as a result of failure of heat extraction and transfer equipment (heat exchangers and working fluid circuit), failure of heat to electricity conversion equipment (ORC turbine and generator), or electricity transfer (cables and switchgear). Under any of these abnormal conditions, the ERP is tripped immediately and the isolation valves linking the ERP to the ACP is shut at the same time. Electricity cannot be produced under these conditions and will therefore not be included in the emission reduction calculations. 4d. Electricity generated in the project activity may be exported to the grid or used for captive purposes. However, the methodology is not applicable to projects where the waste gas/heat/pressure recovery project is implemented in a single-cycle power plant (e.g. gas turbine or diesel generator) where heat (energy) generated on-site is not utilizable for any other purposes on-site except to generate power. Such project activities shall consider AMSIII.AL “Conversion from single cycle to combined cycle power generation”. Projects recovering waste energy from such power plants for the purpose of generation of heat only can apply this methodology. 4e. For a project activity that recovers waste energy for power generation from multiple sources (e.g. a kiln and a single-cycle power plant), this methodology can be used in The electricity generated in the Thermal Harvesting Project will be utilised by Waterval, i.e. it will not be exported to the grid or used for captive purposes at Eternity Power. This criterion does not apply to the Thermal Harvesting Project. The project is not the implementation of a waste energy recovery unit within a single-cycle power plant. Supporting documentation: “Supply agreement between Eternity Power and Waterval_CONFIDENTIAL.pdf” The project activity is the recovery of waste heat from one source only, the cooling water circuit on the ACP. Therefore, AMS-III.AL will not be applied and the requirements listed in 4(e) do not apply to the project activity. This criterion does not apply to the Thermal Harvesting Project. UNFCCC/CCNUCC CDM – Executive Board Applicability Condition from AMS-IIIQ combination with AMS-III.AL provided that: (i) Within the project activity it is possible to distinguish two distinct waste energy sources such that: • Waste energy source-I (e.g. the kiln) belongs to such waste heat sources which are eligible under AMSIII.Q; • Waste energy source-II (e.g. the single-cycle power unit) belongs to such waste heat sources which are eligible under AMS-III.AL; (ii) For waste energy source-II eligible under AMS-III.AL, all requirements that relate to baseline, project emissions and monitoring shall apply; (iii) It is possible to determine the baseline for each waste energy source, according to the specific methodology being used; (iv) It is possible to objectively allocate the electricity produced in the project activity to each waste energy source, by means of one of the following methods: • Through separate measurements of the electricity produced by utilizing waste energy from each waste energy source; or • Through separate measurements of the energy content of the WECM streams used for electricity production; Page 22 Comment on whether the Applicability Criteria applies to the Thermal Harvesting Project. If it applies, a discussion is provided to demonstrate how the Thermal Harvesting Project complies with the criteria. Summary of Applicability of the Thermal Harvesting Project to the criteria UNFCCC/CCNUCC CDM – Executive Board Applicability Condition from AMS-IIIQ or • Through separate measurements of the energy content of the WECM streams that are associated with each waste energy source and used for electricity production or for the WECM generation in a common waste heat recovery system (e.g. if steam is generated by waste heat from a kiln and waste heat from an internal combustion engine in a common waste heat recovery boiler); Page 23 Comment on whether the Applicability Criteria applies to the Thermal Harvesting Project. If it applies, a discussion is provided to demonstrate how the Thermal Harvesting Project complies with the criteria. Summary of Applicability of the Thermal Harvesting Project to the criteria UNFCCC/CCNUCC CDM – Executive Board Applicability Condition from AMS-IIIQ f. In cases where the energy is exported to other facilities included in the project boundary, a contractual agreement exists between the owners of the project facility and the recipient plant(s) to avoid the potential double counting of emission reductions by involved parties. These procedures shall be described in the Project Design Document. g. For those facilities and recipients which are included in the project boundary, that prior to implementation of the project activity (current situation) generated energy onsite (sources of energy in the baseline), the credits can be claimed for minimum of the following time periods: Page 24 Comment on whether the Applicability Criteria applies to the Thermal Harvesting Project. If it applies, a discussion is provided to demonstrate how the Thermal Harvesting Project complies with the criteria. Summary of Applicability of the Thermal Harvesting Project to the criteria Electricity will not be exported to other facilities included in the project boundary. This criterion does not apply to the project activity. This criteria applies to the Thermal Harvesting Project. This criterion applies to the Thermal Harvesting Project. The remaining lifetime of the platinum converters and the cooling plant is determined by applying the “Tool to determine the remaining lifetime of equipment”, version 01. Option (b) as defined in the Tool is applied, i.e. the project participants obtained an expert evaluation for the lifetime of the existing heat production and cooling plants11. Thermal Harvesting Project complies with the criterion. (i)The remaining lifetime of equipment currently being used; and (ii) h. Crediting period; The category is also applicable to project activities that use waste pressure to generate electricity only and the electricity produced from waste pressure is measurable; 11 Lifetime of equipment.pdf The project activity does not utilize waste pressure. Supporting documents • Technical Feasibility Study Report, describing the scope of the project activity as being the generation of electricity only from the waste heat available. • “Supply Agreement between Eternity Power and Waterval_CONFIDENTIAL.pfd” defining that electricity generation only is the scope of the project activity. This criterion does not apply to the Thermal Harvesting Project. UNFCCC/CCNUCC CDM – Executive Board Applicability Condition from AMS-IIIQ i. It shall be demonstrated by using one of the following options that the waste energy utilized in the project activity would have been flared or released into the atmosphere in the absence of the project activity: this shall be proven by one of the following options: (i) By direct measurements of energy content and amount of the waste gas/heat/pressure for at least three years prior to the start of the project activity; (ii) Energy balance of relevant sections of the plant to prove that the waste gas/heat/pressure was not a source of energy before the implementation of the project activity. For the energy balance representative process parameters are required. The energy balance shall demonstrate that the waste gas/heat/pressure was not used and also provide conservative estimations of the energy content and amount of waste gas/heat/pressure released; (iii) Energy bills (electricity, fossil fuel) to demonstrate that all the energy required for the process (e.g. based on specific energy consumption specified by the manufacturer) has been procured commercially. Project participants are required to demonstrate through the financial documents (e.g. balance sheets, profit and loss statement) that no energy was generated by waste gas/heat/pressure and sold to other facilities and/or the grid. The bills and Page 25 Comment on whether the Applicability Criteria applies to the Thermal Harvesting Project. If it applies, a discussion is provided to demonstrate how the Thermal Harvesting Project complies with the criteria. On-site checks prior to project implementation by the DOE to confirm that no equipment for waste energy recovery and utilisation had been installed on the specific WECM stream prior to the implementation of the CDM project activity. Summary of Applicability of the Thermal Harvesting Project to the criteria UNFCCC/CCNUCC CDM – Executive Board Applicability Condition from AMS-IIIQ financial statements should be audited by competent authorities; (iv) Process plant manufacturer’s original specification/information, schemes and diagrams from the construction of the facility could be used as an estimate of quantity and energy content of waste gas/heat/pressure produced for rated plant capacity per unit of product produced; (v) On-site checks prior to project implementation by the DOE to confirm that no equipment for waste energy recovery and utilisation had been installed on the specific WECM stream prior to the implementation of the CDM project activity. Page 26 Comment on whether the Applicability Criteria applies to the Thermal Harvesting Project. If it applies, a discussion is provided to demonstrate how the Thermal Harvesting Project complies with the criteria. Summary of Applicability of the Thermal Harvesting Project to the criteria UNFCCC/CCNUCC CDM – Executive Board Page 27 Table 5: Assessment of the Applicability Criteria from the Tools applied in the project activity Applicability Conditions from the Tools “Tool to calculate the emission factor for an electricity system” Comment on whether the Applicability Criteria applies to the project activity. If it applies, a discussion is provided to demonstrate how the project activity complies with the criteria. The project activity substitutes grid electricity. This tool may be applied to estimate the OM, BM and/or CM when calculating baseline emissions for a project activity that substitutes grid electricity, i.e. where a project activity supplies electricity to a grid or a project activity that results in savings of electricity that would have been provided by the grid (e.g. demand-side energy efficiency projects). (Refer to page 2 of the Tool under “Scope and applicability”) In case of CDM projects the tool is not applicable if the project electricity system is located partially or totally in an Annex I country. (Refer to page 2 of the Tool under “Scope and applicability”) Summary of Applicability of the project activity to the criteria This criterion applies to the Thermal Harvesting Project. Thermal Harvesting Project complies with the criterion. The project electricity system is located in South Africa, which is not an Annex I country. Also, none of the neighbouring countries around South Africa are Annex I countries. This criterion applies to the Thermal Harvesting Project. Thermal Harvesting Project complies with the criterion. Applicability criteria for the “Standardized baseline Grid emission factor for the Southern African power pool, Version 01.0”. This standardized baseline is applicable to the CDM projects in the following countries, which are the SAPP member countries: (a) The Republic of Botswana; (b) The Democratic Republic of the Congo (DRC); The Project Activity is implemented in The Republic of South Africa. This criterion applies to the Thermal Harvesting Project. Thermal Harvesting Project complies with the criterion. UNFCCC/CCNUCC CDM – Executive Board Page 28 (c) The Kingdom of Lesotho; (d) The Republic of Mozambique; (e) The Republic of Namibia; (f) The Republic of South Africa; (g) The Kingdom of Swaziland; (h) The Republic of Zambia; (i) Zimbabwe. The CDM project activities can apply this standardized baseline under the following conditions: (a) The project activity is connected to the project electricity system; (b) The CDM approved methodology that is applied to the project activities, requires to determine CO2 emission factor(s) for the project electricity system through the application of the tool, for the determination of baseline emissions, project emissions and leakage emissions; and (c) When applying the values of this standardized baseline to CDM projects, the requirements below are to be followed: (i) In the case that the project activity uses the ex ante option of data vintage, as per the tool, the latest approved values of this standardized baseline shall be used for calculation of emission reduction for the entire first, or entire second or entire third crediting period; (ii) In the case that the project activity uses the ex post option of data vintage as per the tool, the latest approved values of this standardized baseline valid at the end of the monitoring period shall be used for calculation of emission - The project activity substitutes grid electricity. Version 05 of the Small Scale methodology IIIQ: “Waste energy recovery (gas/heat/pressure) projects” applies the “Tool to calculate the emission factor for an electricity system”. The Project Activity uses the ex ante option of data vintage, and the latest approved values of this standardized baseline shall be used for calculation of emission reduction for the entire crediting period. This criterion applies to the Thermal Harvesting Project. Thermal Harvesting Project complies with the criterion. UNFCCC/CCNUCC CDM – Executive Board Page 29 reduction for that monitoring period. The latest approved and valid values of this standardized baseline are the only values of the CO2 emission factor(s) that shall be applied for the project electricity system in the SAPP member countries listed in this section. The latest approved and valid value of the standardized baseline is the only value of the CO2 emission factor that shall be applied for the project electricity system in the Republic of South Africa. This criterion applies to the Thermal Harvesting Project. Thermal Harvesting Project complies with the criterion. “Tool to determine the remaining lifetime of equipment” Methodologies referring to this tool should clearly specify for which equipment the remaining lifetime should be determined. The remaining lifetime of relevant equipment shall be determined prior to the implementation of the project activity. - This criterion applies to methodologies and not to PDDs. - The remaining lifetime of the existing ACP and cooling system has been confirmed by an independent expert. Refer to “Remaining lifetime of equipment.pdf” Does not apply to the project activity Project activity complies with the criteria. Project participants using this tool shall document transparently in the CDM-PDD how the remaining lifetime of applicable equipment has been determined, including (references to) all documentation used. (Source: Page 1 of the Tool) Under this tool, impacts on the lifetime of the equipment due to policies and regulations (e.g. environmental regulations) or changes in the services needed (e.g. increased energy demand) are not considered. Methodologies referring to this tool shall, where applicable, provide specific guidance on how regulations that warrant the replacement of the There are no regulations or policies in South Africa that impact the lifetime of ACP or cooling equipment. Also, any increase or decrease in the platinum demand impacts on the production from the ACP, but has no impact on the remaining lifetime of the ACP. The lifetime of ACP and the cooling system depends only on the quality of maintenance that is conducted. This criterion applies to the Thermal Harvesting Project. Thermal Harvesting Project complies with the UNFCCC/CCNUCC CDM – Executive Board equipment before it has reached the end of its technical lifetime should be addressed. (Source: Page 1 of the Tool) Page 30 criterion. UNFCCC/CCNUCC CDM – Executive Board Page 31 B.3. Project boundary >> According to the methodology III.Q the boundary is defined as: The geographical extent of the project boundary shall include the relevant WECM stream(s), equipment and energy distribution system in following facilities: (a) Project facility; (b) Recipient facility(ies), which may be the same as the “project facility”. The project facility where waste energy is generated is Waterval, therefore the Waterval industrial facility is included in the boundary. The electricity produced by the project activity will be used for own consumption. The relevant equipment and energy distribution system covers: • The power generation system at the project facility (Eternity Power), the waste energy streams from the ACP cooling system. • In the recipient facility (Waterval), the transformers or busbars where the electricity is fed into. In particular, the following are included: The Anglo Platinum Converters that produces the heat that is removed by the fin-fan air cooling system; • The proposed electricity generation plant; • The facility using the electricity (Waterval), which in this case is the same as the facility generating the heat; and • The national electricity grid, to the extent of determining the grid emission factor. Multiple waste gas streams are not available in the project facility, and cannot be used interchangeably for various applications as part of energy sources in the facility. This is demonstrated during the site visit and reference is made to design drawings. • The project boundary is illustrated in Figure 3 below: UNFCCC/CCNUCC CDM Executive Figure–4: SchematicBoard layout of the project boundary Page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he greenhouse gases included in or excluded from the project boundary are shown in Table 6. UNFCCC/CCNUCC CDM – Executive Board Page 33 Table 6: Summary of gases and sources included in the project boundary and justification explanation where gases and sources are not included Source Electricity generation, grid or captive source Fossil fuel consumption in element process for thermal energy Baseline Fossil fuel consumption in cogeneration plant Baseline emissions from generation of steam used in the flaring process, if any Fossil fuel consumption for supply of process heat and/or reaction heat Project Activity Supplemental fossil fuel consumption at the project plant Supplemental Gas Included? Justification / Explanation CO2 Included Main emission source. CH4 Excluded Excluded for simplification. This is conservative. N 2O Excluded Excluded for simplification. This is conservative. CO2 Excluded Not applicable. The project activity does not involve the generation of thermal energy from waste gas. CH4 Excluded Not applicable. The project activity does not involve the generation of thermal energy from waste gas. N 2O Excluded Not applicable. The project activity does not involve the generation of thermal energy from waste gas. CO2 Excluded Not applicable. The project activity does not involve cogeneration. CH4 Excluded Not applicable. The project activity does not involve cogeneration. N 2O Excluded Not applicable. The project activity does not involve cogeneration. CO2 Excluded Not applicable. Steam is not used in the flaring process. CH4 Excluded Not applicable. Steam is not used in the flaring process. N 2O Excluded Not applicable. Steam is not used in the flaring process. CO2 Excluded Not applicable to the project activity. CH4 Excluded Not applicable to the project activity. N 2O Excluded CO2 Excluded No supplemental fossil fuel is used at the project plant. CH4 Excluded No supplemental fossil fuel is used at the project plant. N 2O Excluded No supplemental fossil fuel is used at the project plant. CO2 Included Main emission source. Not applicable to the project activity. UNFCCC/CCNUCC CDM – Executive Board Page 34 Source Gas Included? electricity consumption CH4 Excluded Excluded for simplification. N 2O Excluded Excluded for simplification. Excluded Not applicable. The baseline does not involve captive electricity and no electricity is generated from waste gas in the absence of the project activity. Excluded Not applicable. The baseline does not involve captive electricity and no electricity is generated from waste gas in the absence of the project activity. N 2O Excluded Not applicable. The baseline does not involve captive electricity and no electricity is generated from waste gas in the absence of the project activity. CO2 Excluded Excluded as the gas cleaning equipment remains as it is in the baseline scenario. CH4 Excluded Excluded for simplification as per the methodology. N 2O Excluded Excluded for simplification as per the methodology. Electricity import to replace captive electricity, which was generated using waste gas in absence of project activity Energy consumption for gas cleaning CO2 CH4 Justification / Explanation B.4. Establishment and description of baseline scenario >> The baseline determination is based on relevant operational data from Waterval immediately prior three years to the start date of the project activity, i.e. 22 November 2012. Waterval has imported all its electricity from Eskom for the three years prior to the start of the project activity. Refer to “Electricity bill example.pdf”. Therefore, the baseline scenario for electricity is defined as the electricity from the national grid. The waste heat utilized by the Thermal Harvesting Project was dissipated to atmosphere. The baseline scenario for the Thermal Harvesting Project is therefore the historical scenario based on three years historical information. The baseline emissions are calculated according to AMS-III.Q. Determination of fcap fcap is estimated according to the corresponding section of ACM0012 version 4.0.0, Method-3, as required by AMS-III.Q. According to ACM0012 version 4.0.0, the section under “Baseline emissions, 1.1 No recovery on the WECM stream(s) in the absence of CDM project activity” the following procedure will be applied as described in: (a) Baseline emissions from electricity (BEElec,y) generation, “Case 1: Waste energy is used to generate electricity”. UNFCCC/CCNUCC CDM – Executive Board Page 35 Energy baseline for the project activity In summary: In the absence of the project activity, the waste heat would continue to be dissipated and the electricity would have been generated by grid-connected power plants. Emission baseline for the project activity The electricity produced by the power plant is used to displace grid electricity, accordingly, the grid emission coefficient determined in accordance with provisions of “Tool to calculate the emission factor for an electricity system” is considered for baseline emission. The “Tool to calculate the emission factor for an electricity system” is applied, i.e. the combined margin emission factor of the electricity system is used. The Republic of South Africa is a member of the SAPP and therefore the published combined margin emission figure in the Standardized baseline can be applied. For the purpose of this project activity, the grid emission factor as published in the Standardized baseline “Grid emission factor for the Southern African power pool” is applied. B.5. Demonstration of additionality >> The additionality of the project activity shall be demonstrated and assessed using the GUIDELINES ON THE DEMONSTRATION OF ADDITIONALITY OF SMALL-SCALE PROJECT ACTIVITIES, Version 09.0. Eternity Power demonstrates that the project activity is a first of its kind. The latest version of the “Guidelines on additionality of first-of-its-kind project activities” available on the UNFCCC is applied to demonstrate that the project activity is the first-of-its-kind. The project activity is the first of its kind in that it applies a technology in the platinum industry that has not been implemented in South Africa on or before 24 February 2014. Refer to Ormat Letter_ORC in platinum industy.pdf. As of 25 February 2014, no heat recovery on platinum converters and associated cooling systems are implemented with an Organic Rankine Cycle technology of any size or capacity to generate electricity in South Africa as is confirmed in the letter from Ormat. Within the geographical area of South Africa the prevailing practice in the platinum sector is to dissipate waste heat to atmosphere from the cooling system after the converters. There are no installations that utilise waste heat for electricity generation in the platinum industry in South Africa (refer to the “Letter from Industry Association.pdf”) and the prevailing practice remains to vent waste heat to atmosphere after cooling. A non-renewable, 10 year crediting period has been selected. From paragraph 4 in the “Tool for the demonstration and assessment of additionality”, Version 07, ‘different technologies” are defined as (section below copied from the Guideline): “4. Different technologies are technologies that deliver the same output and differ by at least one of the following (as appropriate in the context of the measure applied in the proposed clean development mechanism (CDM) project activity and applicable geographical area): (a) Energy source/fuel (example: energy generation by different energy sources such as wind and hydro and different types of fuels such as biomass and natural gas); UNFCCC/CCNUCC CDM – Executive Board Page 36 (b) Feed stock (example: production of fuel ethanol from different feed stocks such as sugar cane and starch, production of cement with varying percentage of alternative fuels or less carbon-intensive fuels); (c) Size of installation (power capacity)/energy savings: (i) Micro (as defined in paragraph 24 of decision 2/CMP.5 and paragraph 39 of decision 3/CMP.6); (ii) Small (as defined in paragraph 28 of decision 1/CMP.2); (iii) Large.” In the context of the Thermal Harvesting Project, different technologies are technologies that generate electricity as output from energy sources other than waste heat (such as combustible waste gas) or differ in the size of installation, i.e. micro or large scale, because the project activity is a small scale installation. The letter from Industry Association confirms that no electricity generation CDM project has been done in the platinum industry in South Africa. Describe how the CDM alleviates the barriers identified Carbon finance through the CDM will provide an additional source of revenue that will assist the project activity to overcome the challenges posed to a first-of-kind project. Conclusion The project activity is additional. Prior Consideration The project start date is 22 November 2012. UNFCCC/CCNUCC CDM – Executive Board Page 37 The milestones in the project development are provided in the timeline below: Table 7: Description of relevant dates to demonstrate prior consideration Date Activity Supporting Document(s) 30 November 2011 Notice of prior consideration submitted to the UNFCCC and to the South African DNA ACP Thermal Harvesting Prior Consideration (Signed).pdf 1 December 2011 Acknowledgement from the UNFCCC or receipt of prior consideration UNFCCC Prior Consideration Acknowledgement.pdf 05 June 2012 Agreement with CDM Africa Climate Solutions (Pty) Ltd for managing the CDM component CDM Africa Agreement.pdf 09 January 2012 PIN submitted to South African DNA SADNA PIN Submission Acknowledgement.pdf 08 February 2012 Letter of no objection received from the South African DNA SADNA Letter of No Objection.pdf August 2013 Invitation to Stakeholders inviting public comment - 16 August 2013, Kwevoel Newspaper, refer to “Kwevoel advertisement_Public comment.pdf”; - 9 August 2013, Rustenburg Herald, refer to “Rustenburg Herald_Advertisement.pdf” - 8 August 2013, Daily Sun, refer to “Daily Sun_ Advertisement.pdf” 22 November 2012 Start Date of the Project Activity Equipment Supply Contract.pdf October 2013 Construction started Detail Schedule Jan 2014.pdf UNFCCC/CCNUCC CDM – Executive Board Page 38 B.6. Emission reductions B.6.1. Explanation of methodological choices >> Baseline emissions for electricity Electricity is obtained from an identified existing plant or from the grid. The baseline emissions can be calculated as follows: BEelec , y = f cap * f wcm * ∑∑ ( EGi , j , y * EFElec ,i , j , y ) j (1) i Where: BEelec , y Baseline emissions due to displacement of electricity during the year y in tons of CO2 f cap Factor that determines the energy that would have been produced in project year y using waste energy generated at a historical level, expressed as a fraction of the total energy produced using waste source in year y. The ratio is 1 if the waste energy generated in project year y is the same or less than that generated at a historical level Capping factor is to exclude increased waste energy utilization in the project year y due to increased level of activity of the plant, relative to the level of activity in the base years before project start The value of f cap shall be estimated using one of the applicable methods that applies to the situation of the project activity prescribed in the most recent version of ACM0012. Where the method requires historical data, the project proponents shall follow the requirement stipulated in paragraph 9 above, i.e. “Baseline determination shall be based on relevant operational data from immediately prior three years to the start date of the project activity (or the start date of validation with due justification). For existing facilities, which has three years of operation history but do not have sufficient operational data for the purpose of determining baseline, all historic information shall be available (a minimum of one year operational data is required).” f wcm Fraction of total electricity generated by the project activity using waste energy. This fraction is 1 if the electricity generation is purely from use of waste energy The value of f wcm shall be estimated using applicable procedures that applies to the situation of the project activity prescribed in the most recent version of ACM0012. Where the method requires historical information, the project proponents shall follow the requirement stipulated in paragraph 9 above In cases where auxiliary fossil fuel is used to supplement the waste energy directly in the waste heat recovery combustion systems and the energy output cannot be demonstrably apportioned due to technical constraints (e.g. waste gas measurement and its quality) between fossil fuels and the waste energy, a value of 1 for fwcm can be used and consider the emissions resulting from the combustion of fossil fuel as project emissions Note: for a project activity using waste pressure to generate electricity this fraction UNFCCC/CCNUCC CDM – Executive Board Page 39 is 1 EGi , j , y The quantity of electricity supplied to the recipient j by generator, that in the absence of the project activity would have been sourced from ith source (i can be either grid or identified existing source) during the year y in MWh EFElec ,i , j , y The CO2 emission factor for the electricity source i (i=gr (grid) or i=is (identified existing source)), displaced due to the project activity, during the year y in tons CO2/MWh Determination of EFelec,i,j,y In the case where the recipient of the electricity produced by the project activity is solely the grid or if the displaced electricity for the recipient facility is solely supplied by a connected grid system, and the grid is demonstrated to be the electricity baseline; then, the CO2 emission factor EFelec,gr,j,y shall be determined as per the “Tool to calculate the emission factor for an electricity system”. Capping factors ACM0012 requires the baseline emissions to be capped irrespective of planned or unplanned or actual increase in output of plant, change in operational parameters and practices, change in fuel type and quantity resulting in an increase in generation of waste energy. The cap can be estimated using the three methods described below, following this hierarchy: (i) Method-1 can be used to estimate the capping factor if required data is available The amount of information to apply Method-1 over a 3-year period is not available. (ii) If the project activities implemented in a Greenfield facility, or in existing facilities where the required data is unavailable Method-2 shall be used. Determination of fcap applying Method-3 Motivation for applying Method-3 It is not possible to determine the specific amount of waste energy produced historically per unit of production (Method-2 requirement), because of waste energy quality variability (refer to the information provided in the Box 1 below). According to ACM0012, in these cases, fcap is calculated based on indirect information about specific parameters allowing an estimate of the amount of waste energy available (Method-3). Box 1: Waste heat variability The raw materials used in the converters at Waterval vary (Refer to Design Point Selection_Waste heat variability.pdf). Therefore, the amount of heat released per unit of product varies. UNFCCC/CCNUCC CDM – Executive Board Page 40 Case 1 as described in ACM0012 applies. Case 1: The energy is recovered from waste heat and converted into electricity. fcap is the ratio of maximum energy that could be recovered (MER) by the ORC implemented under the CDM project activity and the actual energy recovered under the project activity (using direct measurement of the electricity generated). The MER should be based on information on the characteristics of the key product, platinum matte produced in the converters. fcap is estimated by: fcap = QOE,BL QOE,y (2) Where: QOE,BL = Electricity that can be produced (TJ), to be determined on the basis of maximum energy that could be recovered from the waste heat, which would have been unutilized in the absence of CDM project activity. QOE,y = Quantity of actual electricity generated during year y (TJ) Determination of QOE,BL ACM0012 describes QOE,BL as the “electricity that can be produced (GJ or TJ), to be determined on the basis of maximum energy that could be recovered from the waste gas, which would have vented in the absence of CDM project activity”. The maximum energy that could be recovered from the cooling system off the converters is limited by the installed capacity of the power plant. The amount of electricity that can be produced (MWh) from the converter cooling system over a year is determined by multiplying maximum electricity that can be generated by the generator (4.29 MW) by the planned availability of the ORC (96%)12 by energy harvesting time (66%)13 over a year. QOE,BL = 4.29 MW x 0.96 x 0.66 x 365 x 24 x 3.6 85,719.4 GJ Project emissions Project emissions due to the project activity (PEy) include emissions due to: (i) combustion of auxiliary fuel to supplement waste gas/heat (PEAF,y); and (ii) emissions due to consumption of electricity for cleaning of gas before being used for generation of electricity or other supplementary electricity consumption by the project activity (PEEL,y). PE y = PE AF , y + PEEL, y 12 ACP Thermal Harvesting Project Signed Design Base_20130409.pdf 13 ACP Thermal Harvesting Project Signed Design Base_20130409.pdf (3) UNFCCC/CCNUCC CDM – Executive Board Page 41 PEAF,y and PEEL,y shall be estimated following the procedure provided in the relevant section of the most recent version of ACM0012. If the waste gas contains carbon monoxide or hydrocarbons, other than methane, and the waste gas is vented to the atmosphere in the baseline situation, project emissions have to include CO2 emissions due to the combustion of the waste gas. Leakage If the energy generating equipment introduced by the project activity is transferred from outside the boundary to the project activity, leakage is to be considered. Emission reductions Emission reductions are calculated as follows: ER y = BE y − PE y Where: ER y Emission reductions in year y (tCO2e/yr) BE y Baseline emissions in year y (tCO2e/yr) PE y Project emissions in year y (tCO2/yr) (4) UNFCCC/CCNUCC CDM – Executive Board Page 42 B.6.2. Data and parameters fixed ex ante (Copy this table for each piece of data and parameter.) Data / Parameter QOE,BL Unit GJ Description Electricity that can be produced, to be determined on the basis of maximum energy that could be recovered from the waste stream, which would have been vented in the absence of CDM project activity Source of data Vuselela process information and ACP process information Value(s) applied 85,719.4 Choice of data Electricity that can be produced to be determined on the basis of maximum energy that could be recovered from the waste heat, which would have vented in the absence of CDM project activity. or Measurement methods and procedures The maximum energy that could be recovered from the waste heat is limited by the installed capacity of the power plant. The amount of electricity that can be produced (MWh) over a year is determined by Gross installed capacity of the plant (4.29 MW) x OCR planned availability (96%) x Energy harvesting time (66%) x 365 (days per year) x 24 (hours per day) x 3.6 (conversion factor) Purpose of data Calculation of baseline emissions Additional comment - Data / Parameter fwcm Unit Unitless Description Fraction of total electricity generated by the project activity using waste energy. Source of data PP Value(s) applied 1 Choice of data This fraction is 1 because the electricity generation is purely from use of waste gas. or Measurement methods and procedures Purpose of data Calculation of baseline emissions Additional comment - UNFCCC/CCNUCC CDM – Executive Board Page 43 Data / Parameter EFgrid,CM,y Unit tCO2/MWh Description Combined margin CO2 emission factor for the project electricity system applicable to the solar power generation Source of data The Standardized baseline “Grid emission factor for the Southern African power pool”, Version 01.0 Value(s) applied 0.9644 Choice of data As per Standardized baseline “Grid emission factor for the Southern African power pool”. or Measurement methods and procedures The information is not metered by Eternity Power, i.e. there are no measurement methods applied. Purpose of data Calculation of baseline emissions Additional comment The purpose of this data is to determine the combined margin emission factor. B.6.3. Ex-ante calculation of emission reductions >> The baseline emissions (BE! ) were calculated using equation (1): BE! = BE!",! + BE!"#$,! where BEflst,y = 0 The baseline emissions from the energy generated by the project activity BEEN,y were calculated using the following equation: BE!",! = BE!"#$,! + BE!"#$,! where BETher,y = 0 For the purpose of demonstration, it is assumed that fcap is 1. f!"# = Q !"#,!" Q !"#,! !"!"#$,!!"!" = !!"# ! !!"# ! !"#$%&"' !"#$ !"!"#$,!"#$%&"' ! !"!"#$,!"#$,!" UNFCCC/CCNUCC CDM – Executive Board Page 44 EFElec,grid,EP,y is published in Table 1 of the “Standardized baseline for the Grid emission factor for the Southern African power pool”. The figure is 0.9644 tCO2 per MWh. !"!"#$,!!"!" = 1 ! 1 ! 21,368.8 ! 0.9644 !"!"#$,!!"!" = 20,608 !"# !"2 !"!"#$,!!"!" = !!",! = !"! = 20,608 !"# !"2 Project emissions were calculated using equation (8): PE y = PE AF , y + PEEL , y where PEAF,y = 0 as described previously and PEEL,y is zero because it is already accounted for in the net generation of electricity to Waterval. PEy is therefore zero. B.6.4. Summary of ex-ante estimates of emission reductions Baseline emissions (tCO2 e) Project emissions (tCO2 e) Leakage (tCO2 e) Emission reductions (tCO2 e) 1 20,608 0 0 20,608 2 20,608 0 0 20,608 3 20,608 0 0 20,608 4 20,608 0 0 20,608 5 20,608 0 0 20,608 6 20,608 0 0 20,608 7 20,608 0 0 20,608 8 20,608 0 0 20,608 9 20,608 0 0 20,608 10 20,608 0 0 20,608 Year UNFCCC/CCNUCC CDM – Executive Board Total Page 45 206,080 0 Total number of crediting years Annual average over the crediting period 0 206,080 0 20,608 10 20,608 0 UNFCCC/CCNUCC CDM – Executive Board Page 46 B.7. Monitoring plan B.7.1. Data and parameters to be monitored (Copy this table for each data and parameter.) Data / Parameter 1.EGi,j,y (EGgrid,Waterval,y) Unit MWh/y Description Electricity generated by the project activity displacing electricity in the national grid. This is the nett electricity delivered to Waterval. This electricity excludes the parasitic load and the electricity used from the grid during startup. Source of data Plant records provided by Eternity Power Value(s) applied 21,368.8 (Calculated from design data for the purpose of estimating the CERs.) EGi,j,y = Maximum net installed capacity considering parasitic load (3.85 MW) x Energy Harvesting time (66%) x ORC planned availability (96%) x 365 (days per year) x 24 (hours per day) Measurement methods and procedures Continuous monitoring will be done and the data will be logged monthly. Location of electricity meters: See figure Figure 7. Electricity meters will be installed to measure the electricity produced by the generator as well as the electricity consumed by the auxiliary equipment of the facility allowing the net produced electricity exported to Waterval to be metered and reported. The electricity produced by the generator (not accounting for parasitic load, i.e. EGgross,y) is used to determine QOE,y Monitoring frequency Continuous monitoring will be done and the data will be logged monthly. QA/QC procedures • The electricity meters will be calibrated and maintained in accordance with manufacturer’s specifications. Records of calibrations and maintenance procedures will be kept by the Eternity Power. The monitoring process and equipment for this procedure is standard. The above data will be kept for a minimum of two years after the end of the crediting period or the last issuance of CERs for this project activity, whichever occurs later. Purpose of data Calculation of baseline emissions Additional comment - UNFCCC/CCNUCC CDM – Executive Board Page 47 Data / Parameter 2. QOE,y Unit GJ Description Quantity of actual energy output generated during year y, i.e. the gross electricity generated by the power plat from waste energy not taking into account the parasitic load of the power plant. Source of data Power plant process data provided by Eternity Power Value(s) applied 85,719.4 For the purpose of calculating the expected emission reductions, it is assumed that the project activity delivers the total amount of electricity output by design that can be delivered by the ORC with the available amount of waste heat. The electricity produced by the generator (not accounting for parasitic load) will be used to determine QOE,y. This will be called EGgross,y. Measurement methods and procedures Continuous monitoring will be done and the data will be logged monthly. Monitoring frequency Continuous monitoring will be done and the data will be logged monthly. QA/QC procedures The meter will be calibrated in accordance with manufacturer’s specifications. See Figure 7 for a layout of the monitors. The above data will be kept for a minimum of two years after the end of the crediting period or the last issuance of CERs for this project activity, whichever occurs later. Purpose of data Calculation of baseline emissions Additional comment - UNFCCC/CCNUCC CDM – Executive Board Page 48 Data / Parameter 3. fcap Unit Unitless Description Energy that would have been produced in project year y using waste heat generated in base year expressed as a fraction of total energy produced using waste heat in year y. Source of data Calculated Value(s) applied 1.0 Measurement methods and procedures The relevant fcap will be determined prior to each verification according to the calculation procedure described by ACM0012. Monitoring frequency Once a year QA/QC procedures The above data will be kept for a minimum of two years after the end of the crediting period or the last issuance of CERs for this project activity, whichever occurs later. Purpose of data Calculation of baseline emissions Additional comment - UNFCCC/CCNUCC CDM – Executive Board Page 49 Data / Parameter 4. Abnormal operation of the project facility including emergencies and shut down Unit Hours Description The hours of abnormal operation of parts of project facility that can have an impact on waste energy generation and recovery Source of data Eternity plant records Value(s) applied The project facility process control system will have an archive capability where all process data, including alarms and operator actions (like set point changes), will be continuously stored for later retrieval into plant reports. Abnormal and emergency events and corrective actions will also be manually recorded in an operator’s log. Measurement methods and procedures Abnormal events can be cross-checked with electricity generation. Alarm lists will be generated automatically for weekly and monthly analysis and the information will be incorporated into the Monthly Operations Report compiled by the Operation and Maintenance Manager. The loss of power generation associated with the abnormal events will also be captured in the Monthly Operations Report. Monitoring frequency Continuous monitoring and manual logging every time it occurs QA/QC procedures Abnormal events can be cross checked with electricity generation, i.e. the DOE will be able to confirm that no electricity is generated during abnormal events by cross checking the times and duration of abnormal events with electricity generation data. Purpose of data Calculation of baseline emissions Additional comment Abnormal and upset conditions at the power plant will be as a result of failure of heat extraction and transfer equipment (heat exchangers and thermal oil circuit), failure of heat to electricity conversion equipment (ORC plant), or electricity transfer and switch gear. During abnormal conditions the waste heat is diverted to pass through the coolers for cooling as is done in the historic scenario. The waste heat will not be routed to the power plant during these conditions and therefore electricity will not be produced during abnormal conditions and emissions reductions will not be claimed. B.7.2. Sampling plan >> Not applicable in the case of this project activity as no sampling is done for monitoring purposes. UNFCCC/CCNUCC CDM – Executive Board Page 50 B.7.3. Other elements of monitoring plan >> a) Management structure for the facility during construction is provided in the figure below. The ultimate responsibility for the construction of the waste gas to electricity plant lies with EPCM Project Manager. Figure 5: Management structure during construction of the proposed project activity !"#$%"&'()*+% $,-,.)&% /),0%"&'*)11% !-.2-))&% $)*6,-2*,7%8% "252-.%/),0% !-.2-))&% #2927%8%3+&4*+4&,7% /),0%!-.2-))&% !7)*+&2*,7%8% :-1+&4;)-+,<'-% /),0%!-.2-))&% =4>)&?%!@5)02+'&%8% 34A*'-+&,*+B#'1+% #'-+&'77)&%8% 3*6)047)&% #'-1+&4*<'-% $,-,.)&% #';;2112'-2-.% $,-,.)&% 3455'&+% 3455'&+% 3455'&+% 3455'&+% 3455'&+% 3455'&+% 3455'&+% b) Management structure for the facility during operation is provided in the figure below. After commissioning of the project, Vuselela Operation and Maintenance Manager is responsible for the operation and maintenance of the site. UNFCCC/CCNUCC CDM – Executive Board Page 51 Figure 6: Management and Reporting structure of the Thermal Harvesting Plant after commissioning Eternity Power Board Vuselela Energy Director Vuselela Operation & Maintenance Manager Vuselela Plant Operator Vuselela Plant Maintenance c) Monitoring Equipment Electricity meters will measure the quantity of electricity supplied to Waterval. These meters are 4quadrant billable class meters that are bi-directional – this means that they subtract any electricity used by the plant during start up, or when the plant is not producing electricity. (i) Data to be monitored during the crediting period The following data will be monitored by Eternity Power: • Gross quantity of electricity from the generator terminals; • Electricity consumption of auxiliary equipment in use by the project activity during start-up and operation. • Net electricity supplied to Waterval being the difference between the above gross output from generator terminals and the usage of auxiliary equipment of the project activity. (ii) Equipment Two electricity meters will be installed on the electrical feeds to Waterval – one main meter and one check meter. The metering configuration is illustrated in the figure below. Insert a figure that shows the layout of the electricity meters. UNFCCC/CCNUCC CDM –7: Figure Executive ElectricityBoard meters layout for the power plant supplying electricity to Waterval Page 52 47+$%9+$+',:";&$<$=,()&,')(3$+,)(&1$ %0)12(3$4(3.,$+./2(56$7,(8"'&"'1$ N4(50&%"S0T%" ?)(" UR*I%5" " !"#$%&"'()&*$+,#"'$-,#"'$-./(&$ @-51%('%("S0T%" ?42+%$'" @-51%('%(2" N05" +-'-(2" ?)(" @*&$%" ,4+," ?4R)$)0(*"S@@"'-" @-524+%(2" Z=0(02)V&"[-07\" X-'"P0'%(" KDG-@" N$-P"(0'%"C"YEKHH"'WQ-4(" M4(B)5%" !898:;"#<=" >%5%(0'-(" X-'"/0'%(" M%+,%(0'4(%" S%024(%+%5'"(°C)" N)53.05"0)("@--$)5I" 2*2'%+" 898:;W"GKG;" '(052.-(+%(" /0'%("N$-P"<0'%" S%024(%+%5'"Z+DWQ\" /0'%(10$" 898:;" 24B2'0V-5" #$%&'()&)'*" %R,-('%7"'-" /0'%(10$" <%'4(5"/0'%(" M%+,%(0'4(%" S%024(%+%5'"(°C)" @Q%&:"6)37)(%&V-50$"=-P%(" S%024(%+%5'"ZS/Q\" !!"#$%&'()&)'*")+,-('".(-+"/0'%(10$".-("2'0('34,",4(,-2%2"-5$*" (iii) S0)5"6)37)(%&V-50$"=-P%(" S%024(%+%5'"ZS/Q\" 6-4570(*" 898:;"#<=" OP)'&QI%0(" !A%'"-4',4'"010)$0B$%"'-"&$)%5'"C"DEFGH":/" A%'"-4',4'"0'"I%5%(0'-("'%(+)50$2"C"JEKLH":/" Monitoring accuracy The electricity meters will be fitted with a telemetry system, and the data will be fed into the plant control system on a daily basis. The main and backup meters will be reconciled monthly to check if their readings are within 2% from each other. The main meter will be used for billing and CDM monitoring purposes. If the main meter is out of commission for whatever reason the check meter will be used for billing and CDM monitoring purposes. Once a deviation of more than 2 % exists between the two meters the meters will be checked for possible malfunction which will be corrected. Meters will be calibrated against a calibrated standard meter once every year. (iv) Data collection and storage On a monthly basis, the Operation and Maintenance manager (or other designated employee) and a representative from Waterval will read the main and check electricity meters to determine the quantity of electricity produced by the plant. The electricity readings will be logged electronically for the purposes of billing and calculating emission reductions. UNFCCC/CCNUCC CDM – Executive Board Page 53 The information will be saved onto the power plant Supervisory Control and Data Acquisition (SCADA) system, as well as Eternity Power’s financial systems. Backups will be kept both on- and off-site, and all of the data will be available for CDM verification. (v) Readings and inaccuracy The Vuselela O&M Manager shall be responsible for retrieving and analysing data from the main and check electricity meters. Should either of the meters fail to register or, upon testing, be found to have a level of inaccuracy falling outside the maximum tolerance level, then the meter shall be recalibrated against a standard meter or if necessary, replaced with a new meter, and the other meter will be used to measure the quantity of electricity supplied to Waterval. Should both the meters fail to register or, upon testing, be found to have a level of inaccuracy falling outside the maximum tolerance level, then both meters shall be recalibrated against a standard meter or if necessary, replaced with new meters before electricity measurement resumes. (vi) Quality Assurance /Quality Control Procedures The following quality assurance/quality control procedure will be applied in order to increase the reliability of the monitored data: • • • • The operator will be trained on CDM procedures. The operator will be trained on data recording procedures. Any abnormal events will be recorded in a logbook. The Operation and Maintenance manager will check the recorded data and sign off on the logbook on a daily basis. • The Operation and Maintenance manager will ensure that an audit is carried out of the electricity main and check meter information at least once during the monitoring period. The audit may verify the data on electricity generation by cross checking monthly electricity invoices to Waterval or spot-checking the electricity reading of electricity meter/s. Physical inspections of monitoring equipment and calibration frequencies will be logged onto the shift inspection report sheets when performed, and stored. Audit o Monthly net electricity supply data will be approved and signed off by the Operation and Maintenance manager before it is accepted and stored. o The Operation and Maintenance manager cross-checks main and check meter readings to the sales receipts o The Operation and Maintenance manager also checks the validity of the calibration certificates of the electricity meters. If the data is correct and the meters calibrated, the data is approved, signed off and stored. If any errors are identified, such errors will be described and corrected, prior to approval, sign off and storage of the corrected data and • • UNFCCC/CCNUCC CDM – Executive Board Page 54 error descriptions. This internal audit will also identify potential improvements to procedures to improve monitoring and reporting in future years. As per methodology ACM0012, all data collected as part of the monitoring plan will be archived electronically, and will be kept for a minimum if two years at the end of the crediting period. SECTION C. Duration and crediting period C.1. Duration of project activity C.1.1. Start date of project activity >> 22/11/2012 The supplier agreement with Ormat was signed on this date. C.1.2. Expected operational lifetime of project activity >> 20 Years 0 months This is the minimum operational lifetime of the project activity and is based on the expected lifespan of the furnaces. C.2. Crediting period of project activity C.2.1. Type of crediting period >> Fixed crediting period C.2.2. Start date of crediting period >> 01/09/2014 C.2.3. Length of crediting period >> 10 Years 0 Months UNFCCC/CCNUCC CDM – Executive Board Page 55 SECTION D. Environmental impacts D.1. Analysis of environmental impacts >> Anglo Platinum notified the Department of Mineral Resources and the North West Department of Agriculture, Environment and Rural Development that the plant will be within the footprint of the existing ACP plant and that it is not a listed activity in terms of EIA regulations. No basic assessment or EIA is required in terms of the National Environmental Management Act (NEMA). The legal liability for the EMPR will remain with Anglo Platinum - Waterval Smelter. Refer to “Thermal Harvesting Project ACP, Letter to NW DACERD & DMRpdf.” SECTION E. Local stakeholder consultation E.1. Solicitation of comments from local stakeholders >> -Advertisements were placed in local newspapers: - 16 August 2013, Kwevoel Newspaper, refer to “Kwevoel advertisement_Public comment.pdf”; 9 August 2013, Rustenburg Herald, refer to “Rustenburg Herald_Advertisement.pdf” 8 August 2013, Daily Sun, refer to “Daily Sun_ Advertisement.pdf” E.2. Summary of comments received >> No comments were received in response to the invitation to participate in a public comment exercise. E.3. Report on consideration of comments received >> No comments were received in response to the invitation to participate in a public comment exercise and therefore no report is available. SECTION F. Approval and authorization >> At the time that validation was initiated, the Letter of Approval has not been received from the South African DNA. ----- UNFCCC/CCNUCC CDM – Executive Board Page 56 Appendix 1: Contact information of project participants Organization Vuselela Energy (Pty) Ltd Street/P.O. Box 48 Sovereign Drive, Route 21 Corporate Park Building 1st Floor, Building A City Irene X30, Centurion State/Region Gauteng Postcode 0157 Country South Africa Telephone +27 (12) 345 3147 Fax +27 (12) 345 5296 E-mail [email protected] Website www.vuselela-energy.com Contact person Jacques Malan Title Mr. Salutation Last name Malan Middle name First name Jacques Department Mobile +27 (82) 568 6295 Direct fax +27 (86) 527 0066 Direct tel. +27 (82) 568 6295 Personal e-mail [email protected] UNFCCC/CCNUCC CDM – Executive Board Page 57 Organization Eternity Power RF (Pty) Ltd. Street/P.O. Box 48 Sovereign Drive, Route 21 Corporate Park Building 1st Floor, Building A City Irene X30, Centurion State/Region Gauteng Postcode 0157 Country South Africa Telephone +27 (12) 345 3147 Fax +27 (12) 345 5296 E-mail [email protected] Website www.vuselela-energy.com Contact person Jacques Malan Title Mr Salutation Last name Malan Middle name First name Jacques Department Mobile +27 (82) 568 6295 Direct fax +27 (86) 527 0066 Direct tel. +27 (82) 568 6295 Personal e-mail [email protected] UNFCCC/CCNUCC CDM – Executive Board Page 58 Appendix 2: Affirmation regarding public funding No public funding is involved in the development of this project. No public funding is involved in the development of the proposed project activity. All funds will be contributed either by equity providers and/or as debt in a project finance structure (refer to “Eternity Power Structure.pdf”). Appendix 3: Applicability of selected methodology No further information supplied in this section. Appendix 4: Further background information on ex ante calculation of emission reductions No further information supplied in this section. Appendix 5: Further background information on monitoring plan No further information supplied in this section. Appendix 6: Summary of post registration changes Not relevant to the project activity. ----- UNFCCC/CCNUCC CDM – Executive Board Page 59 History of the document Version Date Nature of revision 04.1 11 April 2012 Editorial revision to change history box by adding EB meeting and annex numbers in the Date column. 04.0 EB 66 Revision required to ensure consistency with the “Guidelines for completing the project design document form for small-scale CDM project activities” (EB 66, Annex 9). 13 March 2012 03 EB 28, Annex 34 15 December 2006 • The Board agreed to revise the CDM project design document for small-scale activities (CDM-SSC-PDD), taking into account CDM-PDD and CDM-NM. 02 EB 20, Annex 14 08 July 2005 • The Board agreed to revise the CDM SSC PDD to reflect guidance and clarifications provided by the Board since version 01 of this document. • As a consequence, the guidelines for completing CDM SSC PDD have been revised accordingly to version 2. The latest version can be found at <http://cdm.unfccc.int/Reference/Documents>. 01 EB 07, Annex 05 21 January 2003 Decision Class: Regulatory Document Type: Form Business Function: Registration Initial adoption.
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