PORTFOLIO OF COGENERATION UNITS IN UKRAINEcogeneration.com.ua/img/zstored/final-pdd-sinapse.pdf · Detailed Description of Medical Glass project..... 16 1.7. Detailed description

PORTFOLIO OF COGENERATION UNITS IN UKRAINE

JOINT IMPLEMENTATION PROJECT PROJECT DESIGN DOCUMENT

ERUPT 5 Kyiv/Berlin, 25 February 2005

PDD – Portfolio of cogeneration units in Ukraine

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CONTENTS

1. PROJECT CHARACTERISTICS............................................................................ 4

1.1. Project data ............................................................................................... 4 1.2. Project Abstract ........................................................................................ 6 1.3. Background and justification.................................................................... 8 1.4. Description of Cogeneration concept ..................................................... 10 1.5. Detailed Description of HekroPET......................................................... 12 1.6. Detailed Description of Medical Glass project....................................... 16 1.7. Detailed description of Demitex............................................................. 19 1.8. Detailed description Tornado ................................................................. 22 1.9. Detailed description of NORD ............................................................... 25 1.10. The project’s crediting time, projected lifetime ................................ 27

2. CURRENT SITUATION ....................................................................................... 28 2.1. HekroPET ............................................................................................... 28 2.2. Medical Glass ......................................................................................... 31 2.3. Demitex .................................................................................................. 32 2.4. Tornado................................................................................................... 33 2.5. NORD..................................................................................................... 33

3. GHG SOURCES AND BOUNDARIES ................................................................ 35 3.1. HekroPET ............................................................................................... 35 3.2. Medical Glass ......................................................................................... 38 3.3. Demitex .................................................................................................. 42 3.4. Tornado................................................................................................... 45 3.5. NORD..................................................................................................... 48 3.6. Direct and indirect emissions ................................................................. 51

4. KEY FACTORS..................................................................................................... 52 4.1. External key factors ................................................................................ 52 4.2. Internal key factors ................................................................................. 53

5. ADDITIONALITY................................................................................................. 54 5.1. Step 1: Identification of alternatives to the project activity ................... 54 5.2. Step 2: Investment analysis .................................................................... 55 5.3. Step 3: Barrier analysis........................................................................... 57 5.4. Step 4: Common practice analysis ......................................................... 58 5.5. Step 5: Impact of JI registration ............................................................. 59 5.6. Conclusion.............................................................................................. 60

6. IDENTIFICATION OF THE MOST LIKELY BASELINE ................................. 62 6.1. Construction of the baseline scenario..................................................... 62 6.2. Estimation of the baseline emissions...................................................... 62

7. ESTIMATION OF PROJECT EMISSIONS.......................................................... 70 7.1. Estimation of the activity level of the cogeneration unit........................ 70 7.2. Emissions of the Cogeneration plant ...................................................... 73 7.3. Emissions of electricity consumption of compressor-refrigerators........ 73 7.4. Emission of electricity consumption of remain power needs................. 73 7.5. Emissions of boilers ............................................................................... 74 7.6. Total CO2 emissions after project implementation................................. 74

8. ESTIMATION OF EMISSION REDUCTIONS ................................................... 79 8.1. HekroPET ............................................................................................... 79 8.2. Medical Glass ......................................................................................... 79


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8.3. Demitex .................................................................................................. 80 8.4. Tornado................................................................................................... 80 8.5. NORD..................................................................................................... 80 8.6. Total estimated Emission Reductions .................................................... 81 8.7. Influence of uncertainty level of the single parameter ........................... 81

9. MONITORING PLAN........................................................................................... 82 9.1. Monitoring methodology........................................................................ 82 9.2. Potential strong and weak points of this methodology........................... 82 9.3. Action plan in case of measuring device failure..................................... 83 9.4. Monitoring plan of HekroPET................................................................ 83 9.5. Monitoring plan of Medical Glass, Nord ............................................... 88 9.6. Monitoring plan of Demitex, Tornado ................................................... 93

10. ENVIRONMENTAL IMPACT ......................................................................... 98 Annex I Specifications of JMS-620 GS-N.L cogeneration unit............................... 99 Annex II Power consumption of JMS-620 GS-N.L cogeneration unit...................... 99 Annex III Scheme of JMS-620 GS-N.L cogeneration unit......................................... 99 Annex IV Specifications of LT60s Absorption-Refrigerating Machine ..................... 99 Annex V Scheme of LT60s Absorption-Refrigerating Machine ............................... 99 Annex VI Specification of Ukrainian natural gas ....................................................... 99 Annex VII Energy law in Ukraine............................................................................ 99 Annex VIII Monitoring model for HekroPET ........................................................... 99 Annex IX Monitoring model for Medical Glass & NORD......................................... 99 Annex X Monitoring model for Demitex&Tornado.................................................. 99 Annex XI Boiler’s efficiency ...................................................................................... 99


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1. PROJECT CHARACTERISTICS

1.1. Project data

1.1.1. Supplier data Company: Private Scientific and Industrial Company “Sinapse” Address: Vanda Vasilevska Street 7, 03055, Kyiv, Ukraine Website URL: http://sinapse.ua No. of Employees: 159 Registration number: 24267073, Kyiv Date of registration: 29.02.1996 Bank account number: 260062732 Bank name: JSPPB “Aval”, Kiev, MFO 300335 Company’s core business: Assembly and design works, equipment delivery Contact person: Name: Mrs Tetyana Vyacheslavivna Lobanova Job title: Lawyer Telephone number: +380 (44) 2380965 Fax number: +380 (44) 2380970 E-mail: [email protected]

1.1.2. Correspondent’s data Name: Global Carbon BV Visiting address: Senefelderstraße 7, 10437 Berlin, Germany Postal address: Muzenplein 145, 2511 GK Den Haag, the Netherlands Website URL: www.global-carbon.com Contact person: Name: Mr Lennard de Klerk Job title: Director Telephone number: +49 (30) 40056286 Fax number: +49 (30) 40056287 E-mail: [email protected]

1.1.3. Project partners Company: HekroPET LTD Address: Podolska Street 124, 28000, Khmelnitskiy Website URL: www.hekropet.com No. of Employees: 236 Registration number: 30960327, Khmelnitskiy Date of registration: April 20, 2000 Bank account number: 2600101706643 Bank name: OJSC “State Export-Import Bank of Ukraine” Company’s core business: Production of pet-forms and sketch-film Contact person: Name: Mr Anatoliy Zinovievich Kipish Job title: Director


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Telephone number: +380 (382) 72-00-26 Fax number: +380 (382) 702-127 E-mail: [email protected] Name: OJSC Poltavskiy Plant of Medical Glass Address: 158, Frunze Street, Poltava, 36000, Ukraine Website URL: www.medicalglass.poltava.ua Trade Register: 00480945, Poltava Bank account number: 26001957 Bank name: JSB “Poltava-bank, MFO 331489 Company’s core business: Medical glass production Contact person: Name: Mr Olexandr Mykolayovych Kudatskiy Job title: Head of Direction Telephone number: +380 (5322) 31449 Fax number: +380 (5322) 31405 E-mail: [email protected] Name: OJSC Demitex Address: M.Biryusov Str. 26/1, Poltava, 36007 Ukraine Website URL: www.demitex.chat.ru Company’s core business: open end yarn spinning, ring spinning production Contact person: Name: Ludmila Leonidovna Karban Job title: Vice-chairman of board Telephone number: +380 (5322) 73456 Fax number: +380 (532) 509057 E-mail: [email protected] Name: JSC Tornado Address: Kobilanskogo street 136, Krivij Rih, 50002 Ukraine Company’s core business: Shopping & Business Centre Contact person: Name: Sergey Vasiljevich Rodin Job title: Director Telephone number: +380 (564) 261624 Fax number: +380 (564) 261624 E-mail: [email protected] Name: JSC NORD Address: Zhukovskiy Street 2, Donetsk, 83112, Ukraine Website URL: www.nord.ua Registration number: 13533086, Donetsk Bank account number: 26008301745010 Bank name: Region Direction of “Prominvestbank”, MFO 334635 Company’s core business: Refrigerating equipment Contact person: Name: Mr Aleksandr Aleksandrovich Samsonenko Job title: General Director Telephone number: +380 (62) 3850980 Fax number: +380 (62) 3850970


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1.2. Project Abstract

1.2.1. Project title Portfolio of Cogeneration units in Ukraine

1.2.2. Abstract The project “Portfolio of Cogeneration units in Ukraine” comprises five separate projects at four cities throughout Ukraine. Cogeneration units will be installed:

- At HekroPET, a producer of PET forms; - At Poltavskiy Plant of Medical Glass; - At Demitex, a producer of yarn; - At Business Centre Tornado; - And at NORD producing refrigerators.

The portfolio project will consists of 14 cogeneration units with a nominal capacity of 25 MWel. The two cogeneration units will displace grid electricity leading to an annual emission reduction of approximately 126,000 tonne CO2. Срок эксплуатации когенерационного оборудования, предполагаемого к установке, более 22 лет при принятом условии наработки 8 200 моточасов в год. По 50 летнему опыту производства и эксплуатации завода изготовителя CHP установок (GE), реальный life time оборудования значительно выше. Срок жизни проекта принят равным 20 годам, с учетом возможного морального устаревания CHP оборудования и концепции.

1.2.3. Project location The five projects are located at four different cities in Ukraine as can be seen in the map given below.


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HekroPET is located in the town of Khmelnitskiy with is the regional centre of Khmelnitskiy Oblast (Province). The oblast is characterized by favourable natural conditions, variety of landscapes, the wealth of vegetable and animal worlds, mineral water, fertile chernozem and a broad network of rivers. The region borders on Zhytomyr, Rivne, Ternopil, Chernivtsi and Vinnytsa oblast, its north to south size is 256.2 km., from east to west - 192.5 km. The region consists of 20 districts and 6 larger towns: Khmelnytskiy, Kamyanets-Podilskiy, Shepetivka, Slavuta, Starokostyantiniv and Netishin. The largest towns of the region are the regional centre Khmelnytskiy and district centre Kamyanets-Podilskiy. Khmelnytskiy region is the 12th biggest amongst the regions of Ukraine by population. On 01.01.2003 the population was 1.4 million inhabitants. The volumes of industrial manufacture have grown in the past three years with an annual average by 7.8 %. Poltavskiy Plant of Medical Glass and Demitex are located in the town of Poltava with is the regional centre of Poltava Oblast. Poltava oblast is situated in the central part of Ukraine. The area is 20 thousand sq. km and the oblast borders upon Chernihiv, Sumy, Kharkiv, Dnopropetrovs’k, Kirovohrad, Cherkasy and Kyiv regions. Total number of the population is 1693 thousand people. In the structure of industry production the most important are food, fuel industries, mechanical engineering and ferrous metallurgy. The Business Centre Tornado is located in the town of Kryviy Rih, the second biggest town in Dnipropetrovs’k Oblast. Dnipropetrovs’k oblast’ is situated in the eastern Ukraine. Its territory is 31.9 thousand sq. km. The Oblast borders upon Donets’k, Zaporizhya, Kirovohrad, Mykolayiv, Poltava, Kharkiv and Kherson regions. Administrative centre is the city of Dnipropetrovs’k. Dnipropetrovs’k oblast’ has a powerful industry potential. It is characterised by high heavy industry development level. The town of Kryviy Rih is situated in the steppe area of Ukraine on the junction of the river Ingulets and the river Saxagan coming to the basin of the Dnieper River. It occupies the total area of 407.3 km2 with the length of 126 km and the width of 20 km. The economic potential of the town is represented by about 6 thousand enterprises. The industry of the town includes 87 large enterprises of various branches: ferrous metallurgy, machinery construction, building materials, chemical, printing, woodworking, light and food industry, etc. NORD is located in the town of Donets’k with is the regional centre of Donets’k Oblast. Donets’k oblast’ is a large industrial region, situated in steppe zone of the southeast part of Ukraine. On the east the oblast’ borders upon the Russian Federation on the south it has an outlet to the Mediterranean basin. Donets’k oblast’ is the largest in Ukraine according on a population. On 01.01.2001 its population is 5 million people (10% of the Ukrainian population). Donetsk oblast covers more than a half of coal production, finished steel, coke, cast iron and steel production and practically all yield of rolling-mill machinery in Ukraine. Ferrous metallurgy, fuel industry and power industry are much in demand in the structure of industry production.

1.2.4. Date of starting the project implementation The implementation schedule of each sub-project is as follows: Sub-project Date go/no-go Starting Date Finishing Date HekroPET 1 May 2005 1 August 2005 1 January 2007 Medical Glass 1 May 2005 1 August 2005 1 January 2006


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Demitex 1 May 2005 1 August 2005 1 January 2006 Tornado 1 May 2005 1 August 2005 1 January 2006 NORD 1 May 2005 1 August 2005 1 January 2006 Note: The final date of go/no-go decision will also be influenced by the possibility to obtain an Emission Reduction Purchasing Agreement.

1.3. Background and justification

1.3.1. The Supplier

Private Scientific and Industrial Company Sinapse was founded in 1996. From that time Sinapse has been successfully working throughout Ukraine. The core business of Sinapse is uninterruptible power supply and cogeneration. The company supplies UPS, diesel power plants, cogeneration sets, rectifiers, inverters, batteries, voltage stabilizers, other electro technical equipment, cogeneration equipment of such world producers as Jenbacher (Austria), Newave (Switzerland),

Broadcrown (Great Britain), Powerware (USA), Yuasa (Japan), Himoinsa (Spain), Gamatronic (Israel), Salicru Electronics (Spain), АС Power and Delta Electronics (Taiwan), Сoslight (China), Wattpower (France). Uninterruptible power supply The company has its own manufacture of power supply systems and control panel equipment. It executes design, construction, assembly and commissioning works. It guarantees servicing all around Ukraine. Among projects executed by it there are lots of companies of different directions and industries. The customers of PSIC “Sinapse” are for example such conglomerates as all regional administrations of National Bank of Ukraine, Ministry of Transport and Communication of Ukraine, Ministry of Statistics of Ukraine, the First Ukrainian International Bank and its branches, “AVAL” Bank, “АGІО” Bank, Prominvestbank, Pension Fund of Ukraine, Chief Administration of State Communication of Ukraine, Headquarters of Military Force of Ukraine, etc.

Cogeneration In June 2004, SINAPSE started the first stage of delivery of 22 gas engine cogeneration systems produced by GE Jenbacher for the Ukrainian Sasyadko mine with a total thermal and electrical capacity of 131 MW. Sinapse is the engineering company responsible for the entire project, and will provide the engine service. The office of Sinapse in Donetsk will ensure rapid response and replacement parts availability. The equipment is being manufactured at GE Jenbacher’s facilities in Jenbach, Austria and will be delivered to Sasyadko in 10 stages, beginning in June 2004. The facilities are expected to begin commercial operation no later than the end of 2005.


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(project at Zasyadko Mine)

1.3.2. Project partner JSC “HekroPET” JSC HekroPET is an enterprise with foreign investments founded in April 2000. HekroPET is a modern enterprise which is quickly developing. The enterprise has a dominating position in the production volume of pet-preforms and sketch-film. The manufacturing arsenal of the firm consists of injection machines of the Canadian firm “HUSKY” that is one of the largest world manufacturers of the equipment of this type. The world accepted manufacturer of extrusion equipment the German company “REIFENHAUSER” is the supplier of sketch-film production line. The high quality equipment “Highlight”, “Mitutoyo”, “Sartorius” have the quality control of the manufactured products. The customers of “HekroPET LTD” are leading enterprises of Ukraine that produce beer and soft drinks: Obolon, Slavutych, Myrgorodska, Morshynska, Sun Interbrew Ukraine, Orlan and others.

1.3.3. Project partner OJSC “Poltavskiy Plant of Medical Glass” In 1996 the Poltavskiy factory of Medical Glass was privatised into the Open Joint Stock Company "Poltavskiy Medical Glass Plant". The Plant is a modern enterprise with high medical tubing glass, type UPG-1 (Ukraine-Poltava-Glass-1) of the first hydrolytic class. The enterprise specialises on the production of tubing glass and derived items: ampoule medical for injections, ampoule medical coupled, ampoule medical vacuum filling, vials for antibiotics, vials insulin, and laboratory measuring glassware. The products of Poltava Medical Glass Factory are widely used in medical and microbiological industry, at industrial and medical laboratories. After privatisation a mayor overhaul of the furnace was conducted, that has entailed the augmentation of the productivity of the furnace up to 360 tonne of tubing glass per month. The reconstruction of the second electrical furnace was successfully conducted with an output of finish products of 150 ton of tubing glass per month. The introduction in the operation the second furnace has increased the production of the glass tube with 50%.

1.3.4. Project Partner OJSC “Demitex” Opened Joint Stock Company with foreign investments “Demitex” was established in 1992 by two founders: group of mill leaseholders (from Ukrainian side) and International Holding and Financial Company, Ltd, Great Britain (from the side of foreign founder). The factory includes two mills: an open end yarn spinning mill and a ring spinning mill. Ring-spinning is used in combed system. Ring-spinning and Open End Spinning are used in carded system. Demitex is modern mill of the light industry with great possibilities. The high efficiency equipment of the leading Western European companies such as "Trūtzchler", "Rieter", "Hollingsworth", "Grossenhainer", "Muratec" is used in the production process. Quality parameters of producing yarn correspond to the world standards according to Uster-statistics.


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1.3.5. Project Partner JSC “Tornado-Kom” JSC “Tornado-Kom” is a special purpose company for a new Business Centre with the name Tornado. This Centre is currently being constructed in the city of Kriviy Rih. The Centre will have several purposes including shopping area, offices and parking places and will consists of three stories. The total area of the Centre will total to 20,000 sq. meter of which 12,482 sq. meter will need to heated or air-conditioned. More information about the Centre, including pictures, can be found in the Business Plan.

1.3.6. Project Partner JSC “NORD” The Joint Stock Company “NORD” is the largest enterprise in the "NORD Group". NORD is the leading manufacturer of the household refrigerating equipment (refrigerators, freezers and motor compressors for them) in Ukraine. The company was founded on basis of the Donetsk Plant of Refrigerators, which had been put into operation in 1963 and had produced 71 000 single-chamber refrigerators with the capacity of 165 dm3 a year. The implementation of the state-of-the-art technologies and equipment made the output grow from 71,000 to 500,000 units a year, including both single-chamber and multi-chamber refrigerators, as well as freezers. A major renovation was carried out during the following years 1993-1999. Consequently, a number of efficient automated production lines, manufactured abroad, another standard equipment, including production lines for refrigerator door panels production, magnetic units insertion, door seal for refrigerators and freezers, plates from granulated polystyrene, etc. were implemented. The products manufactured by the enterprises of the "NORD Group" are sold in Ukraine, Russia, CIS countries as well as to Western and Central European Countries.

1.3.7. Relation between Suppliers and the Project Partners The Supplier Sinapse will have the overall responsibility for the JI aspect of the project. Furthermore the Supplier will be responsible for the overall project management, general and detailed designing of each cogeneration unit, and the equipment delivery by GE Jenbacher. The financial set-up of each sub-project will be tailored to the needs and possibilities of each project partner. Some project partners will purchase the equipment directly while other project partners will obtain the equipment through a financial leasing schme. In the latter case Sinapse will be actively involved in developing the project with the financiers.

1.4. Description of Cogeneration concept The use of cogeneration plants based on gas and reciprocating engines is profitable for nominal power up to 3.0 MW. In comparison with the costs for the construction of new power plants, which are 1000-1500 USD per 1 kW of power, the cogeneration plant cost is in the range of 500-800 USD. Taking into consideration the cost price difference of produced power and heat and tariffs of monopoly power companies at the power market, the use of cogeneration plants is reasonable and profitable. Therefore cogeneration sets are economically attractive for an industrial consumer. The expenses for projecting, purchasing, commissioning and wear of such sets are repaid already in


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the 3rd-5th year of its operation with the technical lifetime of the equipment of 25-30 years.


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The Austrian company GE Jenbacher, with headquarters and manufacturing facilities in the town of Jenbach, is a world leader of mini heat power plants based on specialized gas and reciprocating engines. Gas and reciprocating engines of GE Jenbacher are efficient and multi-purpose.

Gas and reciprocating engines, which are the basis of power plants of GE Jenbacher, are high quality and time-proven engines. All functions of regulating, servicing and control are simple and convenient in operation. The guarantor of their high quality servicing is PSIC “Sinapse” as a service partner of GE Jenbacher. The power range of gas and reciprocating engines of GE Jenbacher is from 330 kW to 3,047 kW both as a complex heat and power plant but also come in the form of a container. Due to the high efficiency they have the lowest emissions of СО2 in comparison with the analogous equipment of other manufacturers. A cogeneration Plant profitable for the envisaged factories both from the purely economic point of view and from the point of view of technical improvement:

• A cogeneration Plant (with an absorption-refrigerating machine) is a long-term source of cheap electric power and cold power;

• The absorption-refrigerating machine is extremely reliable equipment without movable (rubbing) surfaces. Unlike traditional compressor refrigerating machines the absorption-refrigerating machine has the least specific cost for maintenance and operation;

• The gas reciprocating cogeneration set produced by GE Jenbacher is well known at the world market as a reliable, durable and effective producer of electric power in this power range;

• The reliability of energy supply increases considerable. Due to the 24/7 operation mode of the factories, interruption of the energy supply leads to considerable damage and financial losses;

• At the same time while implementing the project the common environmental situation in this area will become better. In case of the operation of the Cogeneration Plant the detrimental emission of CO, NOx, NMHC are within the allowed limits in accordance with the current local regulations.

1.5. Detailed Description of HekroPET

1.5.1. Description of equipment Two cogeneration units with two absorption-refrigerating machine will be installed at HekroPET to supply electrical energy and cold for process needs. Детальное описание оборудования CHP смотрите в приложениях 1-3.


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Gas reciprocating cogeneration module JMS-620 The cogeneration unit core is a gas fuel reciprocating cogeneration set JMS-620 produced by GE Jenbacher with the following characteristics: No. Parameter Unit Value Note 1 Electric power at cosφ=1

kW 3,041 On the generator

terminals 10 kV 2 Thermal power under the

schedule 96/70°С kW 3,018 On the cogeneration

module manifold outlet 3 Electrical efficiency % 43.0 4 Thermal efficiency % 42.6 5 Fuel gas consumption nm3 745 (calorific value 9.5 kWh/

nm3) 6 Emission NOx mg/nm3 <500 The hydraulic and electrical schemes of the cogeneration plant are given in Annex III. A gas reciprocating cogeneration module is an internal combustion engine with spark ignition, on the shaft of which there is an electric current generator. It uses natural gas as fuel. Thermal energy is selected from the engine water jacket, from oil, and also by means of exhaust gas cooling. Absorption-refrigerating machine LT 60s An absorption-refrigerating machine is designed to produce cold in the form of cold water with the temperature of +7°С for technological needs of HekroPET Plant. Absorption-refrigerating machines produce cold due to refrigerant boiling and its further condensation. Instead of compressor mechanical energy (as in traditional compressor refrigerators) an absorption-refrigerating machine uses thermal energy to make the refrigerant boil. The characteristics of one absorption-refrigerating machine are given below: No. Parameter Unit Value Note 1 Refrigerating power

kW 2,000

2 Parameters of cooled water °С 7/12 3 Parameters of cooling water °С 35.2/28.0 4 Parameters of heating water °С 96/70 5 Thermal energy consumption kW 2,739 From the cogeneration

plant 13.8 For internal needs of the

machine 6 Power consumption kWеl

240 For auxiliaries (pumps, coolers)

The hydraulic and electrical schemes of the cogeneration plant are given in Annex V.


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The integration method of the cogeneration plant into the existing infra structure of HekroPET Plant is given in the scheme below:

1.5.2. Anticipated Date of Commissioning The implementation schedule is given below. The project is split into two phase. The first cogeneration unit plus absorption- refrigerating machine will be installed during 2005. The second unit will be installed with one year delay.

Term of fulfilment No. Stage description Beginning date

End date

1 Conclude the contract on credit extension and leasing agreement

01.05.2005 30.05.2005

2 Contract implementation as per the delivery of GE Jenbacher equipment

01.05.2005 31.08.2005

3 Development of the project documents and detailed specifications

01.05.2005 01.06.2005

4 Execution of instrumental checks of the quality of supporting constructions of the Cogeneration Plant building

01.05.2005 15.05.2005

5 Development of the working project 01.05.2005 31.07.2005 6 Coordination of the working project in all concerned

authorities (legalization of the working project) 01.08.2005 30.08.2005

7 Development of the schedule of construction and 15.08.2005 30.08.2005

CHP moduleJMS-620 GS

Abs. chillerLT 60s


Abs. chillerLT 60s

BoilersVitoplex300

Plant HekroPETsite boundary

CHP+abs.chillersproject boundary

For CHP & abs.chillers consumers

NG supply from"Gas Ukraine"P=0,3 MPaDN=300mm

Electricity from"Hmelnitskoblenergo",10kV

Compr. chillersRPNxx, RPWxx

for plant'scool consumers

for plant'sheat consumers

heat 96/70 gr.C

cool 7/10 gr.C

Natural Gas

el.power(apr.631 kW)

for plant el.power consumers

3031 kW kV, 10

3031 kW kV, 10


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assembly works 8 Execution of construction and preparation works 01.08.2005 30.08.2005 9 Delivery of the Cogeneration Plant equipment 01.05.2005 01.09.2005 10 Assembly of the Cogeneration Plant equipment 01.09.2005 30.10.2005 11 Start and adjusting works at the plant 01.11.2005 30.11.2005 12 Acceptance test of the plant (72 operating hours) 01.12.2005 31.12.2005 13 Beginning of the first Cogeneration Plant operation 01.01.2006 14 Contract implementation as per the equipment

delivery of the second stage: - 1 CHP module JMS-620 of GE Jenbacher - 1 absorption chiller LT-60s of Thermax

01.05.2006 01.09.2006

15 Assembly of the second Cogeneration Plant equipment

01.09.2006 30.10.2006

16 Start and adjusting works at the plant 01.11.2006 30.11.2006 17 Acceptance test of the plant (72 operating hours) 01.12.2006 31.12.2006 18 Beginning of the second Cogeneration Plant

operation 01.01.2007

1.5.3. Anticipated Plant Operating Time and Annual Load Based on 50 years of experience of producing and operating of gas reciprocating engines the manufacturer GE Jenbacher and its service partners are able to guarantee the plant owner the availability ratio of the gas reciprocating cogeneration module for a year up to 96% or during 8,410 hours. However, to be on the safe side in estimating the economic benefits and the amount of emission reduction the Plant Operating time has been set at 8,200 hours/year or 93.6%. The capacity of the cogeneration equipment was chosen in order to ensure that the cogeneration unit will be operating 7 days a week, 24 hours a day. Given the growth in production both cogeneration units will be operating at full load. Electric power In the table below it can be seen that the electric power consumption per day and per year is growing quickly. The main electric power consumers of the plant are electric furnaces that fuse granulated plastic from which the pet-forms are cast. The nature of the furnace work is characterized by continuity and strict requirements of uninterruptible power supply. Consequently the total volume of electric power produced at the Cogeneration Plant will be consumed for the own needs of HekroPET Plant. The lacking quantity of electric power will be purchase and supplied by the public grid “Khmelnitskoblenergo”. Heat HekroPET Plant consumes an insignificant quantity of heat for the heating needs of offices in winter. The heat is produced at the plant boiler house by gas water heating boilers. The project plans to keep the existing scheme of water supply thus providing the possibility of heat supply from the cogeneration set in the case of emergency in the boiler house. Cold Cold in the form of ice-cold water with the temperature of +70 C is used for the technological needs, i.e. for quick cooling of the produced pet-forms. Since the


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technological line of the plant operates the whole year round, the cold requirement is accordingly constant during the year. Thus the cold produced at the absorption-refrigerating machine LT 60s due to heat of the cogeneration module will be used in its full volume for the own technological needs of the plant. The lacking quantity of cold will be produced at the existing traditional compressor refrigerating machines. The historic and expected annual production and the associated use of electric power and cold at HekroPET Plant is given below.

Cold consumption for process needs

Power consumption on-site except for electricity used for cold generation

Electricity consumption for total cold generation by compressor chillers Years Production

volumes Total per year

Average power

Total per year

Average power

Total per year

Average power

mln.UAH MWh MW MWh MW MWh MW 2003 165.8 22,300 2.546 18,250 2.083 11,373 1.298 2004 215.6 26,800 3.059 23,818 2.719 13,668 1.560 2005 290.0 28,350 3.236 45,231 5.163 14,459 1.651 2006 345.0 35,373 4.038 46,460 5.304 18,040 2.059 2007 345.0 41,239 4.708 52,388 5.980 21,032 2.401 2008 345.0 41,239 4.708 52,388 5.980 21,032 2.401 2009 345.0 41,239 4.708 52,388 5.980 21,032 2.401 2010 345.0 41,239 4.708 52,388 5.980 21,032 2.401 2011 345.0 41,239 4.708 52,388 5.980 21,032 2.401 2012 345.0 41,239 4.708 52,388 5.980 21,032 2.401

1.5.4. Менеджмент проекта Менеджмент проекта на этапе проектирования, монтажа и запуска оборудования выполняет генеральный подрядчик и генеральный проектировщик – компания ЧНПП «СИНАПС». Компания «СИНАПС» является официальным дилерским и сервисным центром поставщика оборудования CHP – GE Jenbacher. Первичное обучение персонала происходит в момент выполнения пусконаладочных работ персоналом компании поставщика – GE Jenbacher, это обучение обязательно входит в комплектность и стоимость поставки. Как показывает практика (в т.ч. и по територии Украины), этого обучения вполне достаточно для нормальной эксплуатации оборудования местным персоналом. Плановое обслуживание выполняется местным персоналом, за исключением регламентных работ каждые 10 000 моточасов, которые выполняются специализированным сервисным центром (НПП «СИНАПС»). Ответственный за эксплуатацию оборудования со стороны ХекроПЕТ – гл.инженер Горелик Альберт Петрович.

1.6. Detailed Description of Medical Glass project


Page 17

1.6.1. Description of equipment Gas reciprocating cogeneration module JMS-320 The cogeneration plant core will be three gas fuel reciprocating cogeneration sets JMS-320 produced by GE Jenbacher. One set has the following characteristics: No Parameter Unit Value Notes 1 Electric power at cosφ=1 kW 1,053 On the generator

terminals 2 Thermal power under the

schedule 90/70°С kW 1,200 On the cogeneration

module manifold outlet 3 Electric output % 40.4 4 Thermal output % 46.0

at 100% load

5 Fuel gas consumption nm3 274 (calorific value 9.5 kWh/ Nm3)

6 Emission NOx mg/nm3 <500 at 5%O2 Детальное описание оборудования CHP смотрите в приложениях 1-3. The integration method of the cogeneration plant into the existing infra structure of Medical Glass is given in the scheme below.

1.6.2. Anticipated date of commissioning

CHP moduleJMC-320 GS


B.BoilersVX10100

Plant “Medical Glass”site boundary

CHPproject boundary

For CHP'auxiliariesconsumers


Electricity from"Poltavaoblenergo",10&6kV


heat 90/70 gr.C

Natural Gas



1053 kW 10kV,

1053 kW 10kV,

1053 kW 10kV,

6 kV10 kV

T /6 kV10

T /0.4 kV10


Page 18

Taking into consideration the delivery terms of the major equipment of GE Jenbacher of five months, the date of commissioning of the two Cogeneration Plants is planned for 01.01.2006. In the table below there is a timetable of execution of the major stages of the project implementation.

Term of fulfilment No. Stage description Beginning

date End date

1 Signing of the contract on CHP equipment delivery: Three CHP modules JMS-320 of GE Jenbacher

01.05.2005 31.08.2005

3 Development of the fore project documents and detailed specifications

01.05.2005 01.05.2005

5 Development of the working project 01.05.2005 31.07.2005 6 Coordination of the working project in all concerned

authorities (legalization of the working project) 01.08.2005 30.08.2005

7 Development of the schedule of construction and assembly works

15.08.2005 30.08.2005

8 Execution of construction and preparation works 01.08.2005 30.08.2005 9 Delivery of the Cogeneration Plant equipment 01.05.2005 01.09.2005 10 Assembly of the Cogeneration Plant equipment 01.09.2005 30.10.2005 11 Start and adjusting works at the plants 01.11.2005 30.11.2005 12 Acceptance test of the plant (72 operating hours) 01.12.2005 31.12.2005 13 Beginning of the Cogeneration Plants operation 01.01.2006

1.6.3. Anticipated plant operating time and annual project load The availability ratio of the gas reciprocating cogeneration module is up to 96% or 8,410 hours per year. However, to be conservative in estimating the economic benefits and the amount of СО2 emission reduction the annual operating time of the Cogeneration Plant in the mode of electricity generation has been set at 8,200 hours/year or 93.6%.

Electric power The main electricity consumers are electric furnaces for glass melting with extremely strict demands as per the power supply quality. And in this case the total volume of electric power produced at the Cogeneration Plant will be consumed for the own needs of Medical Glass. The lacking quantity of electric power will be purchased and supplied by the traditional scheme from the public grid “Poltavaoblenergo”. Heat The heat supply scheme of Medical Glass is planned in order to provide heat supply from the CHP sets totally, and in the case of emergency or scheduled stops of the CHP, the heat supply will be provided by the boiler SX10100.


Page 19

The historic and expected annual production and the associated use of electric power and cold of the Medical Glass is given below.

Electricity consumption for PZ "Medical Glass"

Thermal energy consumption for PZ "Medical Glass"

Years Product volume Total per

year Average power

Gas consumption for heat production Total per

year Average power

ton MWh MW тис.м3 MWh MW 2003 7 800 28 874 3,296 377,7 3 193 0,365 2004 9 000 29 991 3,424 343,7 2 906 0,332 2005 9 450 31 490 3,595 331,9 2 964 0,338 2006 9 450 31 490 3,595 331,9 2 964 0,338 2007 9 450 31 490 3,595 331,9 2 964 0,338 2008 9 450 31 490 3,595 331,9 2 964 0,338 2009 9 450 31 490 3,595 331,9 2 964 0,338 2010 9 450 31 490 3,595 331,9 2 964 0,338 2011 9 450 31 490 3,595 331,9 2 964 0,338 2012 9 450 31 490 3,595 331,9 2 964 0,338

1.6.4. Менеджмент проекта Менеджмент проекта на этапе проектирования, монтажа и запуска оборудования выполняет генеральный подрядчик и генеральный проектировщик – компания ЧНПП «СИНАПС». Компания «СИНАПС» является официальным дилерским и сервисным центром поставщика оборудования CHP – GE Jenbacher. Оборудование CHP является собственностью компании ЧНПП «СИНАПС», весь объем работ по плановому серисному обслуживанию будет осушествлять персоналом компании «СИНАПС». Местный персонал компании Medical Glass будет осуществлять управление и наблюдение за работой CHP. Первичное обучение персонала Medical Glass происходит в момент выполнения пусконаладочных работ персоналом компании поставщика – GE Jenbacher. Ответственный за эксплуатацию оборудования со стороны Medical Glass – гл.энергетик Кадыров Асан Хафизович.

1.7. Detailed description of Demitex

1.7.1. Detailed description of equipment Two cogeneration units with an absorption-refrigerating machine will be installed at Demitex to supply electrical energy and cold for air-conditioning. The cogeneration plant will consists of two units of type JMS-612. Детальное описание оборудования CHP смотрите в приложениях 1-3. One unit has the following characteristics: No Parameter Unit Value Notes 1 Electric power at cosφ=1 kW 1,811 On the generator terminals


Page 20

2 Thermal power under the schedule 96/70°С

kW 1,808 On the cogeneration module manifold outlet

3 Electric output % 43.2 4 Thermal output % 43.0

at 100% load

5 Fuel gas consumption nm3 442 (calorific value 9.5 kWh/ Nm3) 6 Emission NOx mg/nm3 <500 at 5%O2

Absorption-refrigerating machine LT 60s (produced by Thermax) One refrigerating machines will be installed to provide cold for air-conditioning. Please refer to HekroPET paragraph 1.5.1 for a detailed description of the equipment. The integration of the equipment into the existing infrastructure of Demitex is as follows:

1.7.2. Anticipated date of commissioning The planning for the project is identical to the Medical Glass project. Please refer to paragraph 1.6.2.

1.7.3. Anticipated plant operating time and annual load The availability ratio of the gas reciprocating cogeneration module is up to 96% or 8,410 hours per year. However, to be conservative in estimating the economic benefits and the amount of СО2 emission reduction the annual operating time of the Cogeneration Plant in the mode of electricity generation has been set at 8,200 hours/year or 93.6%.


Abs. chillerLT 60s


B.Boilers3xDKVR-4

Plant “Demitex”site boundary




Electricity from"Poltavaoblenergo",6kV

Compr. chillerRTAC300



heat 96/70 gr.C

cool 7/10 gr.C

Natural Gas



1811 kW kV, 6

1811 kW kV, 6


Page 21

Electric power The main electric power consumers of the plant are spinning machines. The nature of the spinning machine work is characterized by continuity and strict requirements of uninterruptible power supply. Consequently the total volume of electric power produced at the Cogeneration Plant will be consumed for the own needs of Demitex Plant. The lacking quantity of electric power will be purchased and supplied by the traditional scheme from the public grid “Poltavaoblenergo”. Heat Demitex Plant consumes a certain quantity of heat for the heating needs of its offices in winter. The heat is produced at the plant boiler house by gas water heating boilers. The project plans to keep the existing scheme of heat supply but providing the possibility of heat supply from the cogeneration set. Cold Cold in the form of ice-cold water with the temperature of +70 C is used for air conditioning and also for certain process needs of the latter. Thus the cold produced at the absorption-refrigerating machine LT 60s due to heat of the cogeneration module will be used in its full volume for the own needs of the sites. In the case of stops of the CHP and/or absorption-refrigerating machines, the lacking quantity of cold will be produced at the traditional compressor refrigerating machines RTAC 300. The historic and expected annual production and the associated use of electric power and cold at Demitex is given below.

1.7.4. Менеджмент проекта Общим менеджментом строительства CHP на Demitex, как и на Tornado Kom занимается уполномоченная инвестором компания Tehservice LTD, директор Matorin Александр Авенирович. Менеджмент проекта CHP на этапе проектирования, монтажа и запуска оборудования выполняет генеральный подрядчик и генеральный проектировщик

operating hours per year: 8760 used cold 3600 hours/y; heating 4200

Total peryear

Average power

Total peryear

Average power Total per year Average

power Total per year Average power

MWh MW MWh MW MWh MW MWh MW2003 3 780 1,050 15 192 1,734 5 336 1,2702004 4 140 1,150 20 018 2,285 5 042 1,2002005 4 347 1,208 27 625 3,154 5 294 1,2612006 4 347 1,208 27 625 3,154 1 608 0,447 5 294 1,2612007 4 347 1,208 27 625 3,154 1 608 0,447 5 294 1,2612008 4 347 1,208 27 625 3,154 1 608 0,447 5 294 1,2612009 4 347 1,208 27 625 3,154 1 608 0,447 5 294 1,2612010 4 347 1,208 27 625 3,154 1 608 0,447 5 294 1,2612011 4 347 1,208 27 625 3,154 1 608 0,447 5 294 1,2612012 4 347 1,208 27 625 3,154 1 608 0,447 5 294 1,261

Years

Cold consumption forprocess needs

Heat consumption ofDemitex

Electricity consumption fortotal cold generation bycompressor chillers

Electricity consumptionfor the needs of Demitexexcept for electricity forcold production


Page 22

CHP – компания ЧНПП «СИНАПС». По желанию заказчика проекта, не планируется нанимать дополнительный персонал. Обучение местного персонала навыкам эксплуатации оборудования GE Jenbacher будет происходить в момент выполнения пусконаладочных работ персоналом компании поставщика – GE Jenbacher, это обучение обязательно входит в комплектность и стоимость поставки. Данный персонал будет выполнять весь объем работ по эксплуатации и обслуживанию CHP, за исключением регламентных работ каждые 10 000 моточасов, которые выполняются специализированным сервисным центром (НПП «СИНАПС»). Ответственный за эксплуатацию оборудования со стороны Demitex – гл.энергетиком – Козуб Александр Ивановичем.

1.8. Detailed description Tornado

1.8.1. Detailed description of equipment for Tornado The business complex Tornado needs electricity to be consumed by the shops and offices in the building, heating in winter and cold in summer for air conditioning. Детальное описание оборудования CHP смотрите в приложениях 1-3. Gas reciprocating cogeneration module JMS-316 The cogeneration plant will comprise of three units JMS-316 produced by GE Jenbacher.


Page 23

One unit has the following characteristics: No Parameter Unit Value Notes 1 Electric power at cosφ=1 kW 835 On the generator terminals 2 Thermal power under the

schedule 96/70°С kW 985 On the cogeneration module

manifold outlet 3 Electric output % 39.9 4 Thermal output % 47.1

at 100% load

5 Fuel gas consumption nm3 220 (calorific value 9.5 kWh/ Nm3) 6 Emission NOx mg/nm3 <250 at 5%O2

Absorption-refrigerating machine LT 60s (produced by Thermax) One absorption-refrigerating machine will be installed for air conditioning the Tornado complex and is identical to the one used at HekroPET. Please refer to 1.5.1 for a description of this equipment. Heat, gas consumption, and electricity measurement The measurement equipment is similar to Demitex set-up. Please refer to paragraph 1.7.1 for a detailed description. The integration of the equipment into the infra structure of Tornado is as follows:

1.8.2. Anticipated date of commissioning The planning for the project is identical to the Medical Glass project. Please refer to paragraph 1.6.2.


Abs. chillerLT 60s


Boiler1xSX10100

TK “TORNADO”site boundary

CHP+abs.chillerproject boundary


NG supply from"Gas Ukraine"P=0,3 MPaDN=150 mm

Electricity from"Dneproenergo",0.4kV


for TK “Tornado” ’scool consumers

for TK “Tornado” ’sheat consumers

heat 96/70 gr.C

cool 7/10 gr.C

Natural Gas


for TK “Tornado” ’sel.power consumers

835 kW kV, 0.4

835 kW kV, 0.4


835 , 0.4 kW kV


Page 24

1.8.3. Anticipated plant operating time and annual load The availability ratio of the gas reciprocating cogeneration module is up to 96% or 8,410 hours per year. However, to be conservative in estimating the economic benefits and the amount of СО2 emission reduction the annual operating time of the Cogeneration Plant in the mode of electricity generation has been set at 8,200 hours/year or 93.6%. The capacity of the cogeneration equipment was chosen in order to ensure that the cogeneration unit is operated to its full electric load. The remaining electric energy will be consumed from the public grid. Electric power The total volume of electric power produced at the Cogeneration Plant will be consumed for the own needs of Tornado. The lacking quantity of electric power will be purchased and supplied by the traditional scheme from the public grid “Dniprenergo”. Heat The heat supply scheme of Tornado is planned in order to provide heat supply form the CHP sets totally, and in the case of emergency or scheduled stops of the CHP, the heat supply will be provided by the boiler VX10100. Cold Cold in the form of ice-cold water with the temperature of +7 0C is used for air conditioning of Tornado. Thus the cold produced at the absorption-refrigerating machine LT 60s due to heat of the cogeneration module will be used in its full volume for the own needs of the sites. In the case of stops of the CHP and/or absorption-refrigerating machines, the lacking quantity of cold will be produced at the traditional compressor refrigerating machines RTAC 300.

1.8.4. Менеджмент проекта Менеджментом строительства торгового комплекса Tornado, в том числе и CHP занимается уполномоченная инвестором компания Tehservice LTD, директор Matorin Александр Авенирович. Генеральный проектировщик здания торгового комплекса Торнадо – компания Bosco, директор Чуканов Сергей.

operating hours per year: 8760 used cold 3600 hours/y heating 4200

Total peryear

Average power

Total peryear Average power Total per

year Average power Total peryear

Average power

sq.m. MWh MW MWh MW MWh MW MWh MW2003200420052006 9500 2 504 0,695 7 923 0,904 926 0,257 1 590 0,3782007 12482 5 007 1,391 15 846 1,809 1 853 0,515 3 179 0,7572008 12482 5 007 1,391 15 846 1,809 1 853 0,515 3 179 0,7572009 12482 5 007 1,391 15 846 1,809 1 853 0,515 3 179 0,7572010 12482 5 007 1,391 15 846 1,809 1 853 0,515 3 179 0,7572011 12482 5 007 1,391 15 846 1,809 1 853 0,515 3 179 0,7572012 12482 5 007 1,391 15 846 1,809 1 853 0,515 3 179 0,757

Cold consumption forprocess needs

Usable area of the Trade Center


Electricity consumption forthe needs of TC "Tornado"except for electricity for coldproduction

Heat consumption ofTC "Tornado"

Years


Page 25

Менеджмент проекта CHP на этапе проектирования, монтажа и запуска оборудования выполняет генеральный подрядчик и генеральный проектировщик CHP – компания ЧНПП «СИНАПС». По желанию заказчика проекта – Tornado Kom LTD, планируется нанять персонал в кол-ве 5 человек, который будет обслуживать как саму CHP, так и остальное энергетическое оборудование торгового комплекса. Обучение персонала навыкам эксплуатации оборудования GE Jenbacher будет происходить в момент выполнения пусконаладочных работ персоналом компании поставщика – GE Jenbacher, это обучение обязательно входит в комплектность и стоимость поставки. Данный персонал будет выполнять весь объем работ по эксплуатации и обслуживанию CHP, за исключением регламентных работ каждые 10 000 моточасов, которые выполняются специализированным сервисным центром (НПП «СИНАПС»). Ответственный за эксплуатацию оборудования со стороны Tornado на данный момент не определен, общий контроль будет осуществляться директором – Родиным Сергеем.

1.9. Detailed description of NORD

1.9.1. Description of the technology Gas reciprocating cogeneration module JMS-620 The cogeneration plant core is four gas fuel reciprocating cogeneration sets JMS-620 produced by GE Jenbacher. Please refer to the HekroPET project, paragraph 1.5.1 for a description of the equipment. Heat, Gas and Electricity measurement The measurement system is identical to the Medical Glass project. Please refer to paragraph 1.6.1. The integration method of the cogeneration plant into the existing infra structure of NORD is given in the scheme below.


Page 26

1.9.2. Anticipated date of commissioning The implementation schedule is identical to Medical Glass. Please refer to paragraph 1.6.2.

1.9.3. Anticipated plant operating time and annual project load The availability ratio of the gas reciprocating cogeneration module is up to 96% or 8,410 hours per year. However, to be conservative in estimating the economic benefits and the amount of СО2 emission reduction the annual operating time of the Cogeneration Plant in the mode of electricity generation has been set at 8,200 hours/year or 93.6%. The capacity of the cogeneration equipment was chosen in order to ensure that the cogeneration unit is operated to its full electric load. The capacity of the cogeneration equipment was chosen in order to ensure that the cogeneration unit is operated to its full electric load. The missing electric energy will be consumed from the public grid. The CHP load of heat is provided in its complete volume in winter and in summer the thermal load is provided only for process needs of around 2,5 MW. Electric power NORD obtains electricity by the first class at high voltage 110kV from two independent inputs. As shown in the table the electric power consumption by NORD Plant per day and per year is quite stable, it fluctuates in the range of 12.5 – 15.5 MW. Consequently the total volume of electric power produced at the Cogeneration Plant will be consumed for the own needs of NORD Plant. The lacking quantity of electric power will be purchased and supplied by the traditional scheme from the public grid “Donetskoblenergo”.



B.Boilers4xDKVR-10

Plant “NORD”site boundary

CHPproject boundary



Electricity from"Donetskoblenergo",110kV


heat 115/70 gr.C

Natural Gas




3035 kW kV, 6

3035 kW kV, 6

3035 kW kV, 6

3035 kW kV, 6

110kV

6kV

0.4kV

6kV


Page 27

Heat NORD Plant consumes a certain quantity of heat for the heating needs of its offices in winter (the calculated load is 20.9 MW), and also for the process needs (around 2.8 MW). The heat is currently produced at the plant boiler house by gas water heating boilers DKVR-10. The project plans to keep the existing scheme of heat supply but providing the possibility of heat supply from the cogeneration set.

1.9.4. Менеджмент проекта Менеджмент проекта CHP на этапе проектирования, монтажа и запуска оборудования выполняет генеральный подрядчик и генеральный проектировщик CHP – компания ЧНПП «СИНАПС». По желанию заказчика проекта, не планируется нанимать дополнительный персонал. Обучение местного персонала навыкам эксплуатации оборудования GE Jenbacher будет происходить в момент выполнения пусконаладочных работ персоналом компании поставщика – GE Jenbacher, это обучение обязательно входит в комплектность и стоимость поставки. Данный персонал будет выполнять весь объем работ по эксплуатации и обслуживанию CHP, за исключением регламентных работ каждые 10 000 моточасов, которые выполняются специализированным сервисным центром (НПП «СИНАПС»). Ответственный за эксплуатацию оборудования со стороны NORD – гл.энергетик – Калинин Владимир Васильевич.

1.10. The project’s crediting time, projected lifetime Срок эксплуатации когенерационного оборудования, предполагаемого к установке, более 22 лет при принятом условии наработки 8 200 моточасов в год. По 50 летнему опыту производства и эксплуатации завода изготовителя CHP установок (GE), реальный life time оборудования значительно выше. Срок жизни проекта принят равным 20 годам, с учетом возможного морального устаревания CHP оборудования и концепции.

Total per year Average power Total peryear Average power

mln.UAH MWh MW тис.м3 MWh MW2003 3 540 59 144 6,752 2 945 24 900 2,8422004 3 540 62 547 7,140 4 528 38 284 4,3702005 3 540 68 802 7,854 4 871 42 113 4,8072006 3 540 68 802 7,854 4 871 50 855 5,8052007 3 540 68 802 7,854 4 871 50 855 5,8052008 3 540 68 802 7,854 4 871 50 855 5,8052009 3 540 68 802 7,854 4 871 50 855 5,8052010 3 540 68 802 7,854 4 871 50 855 5,8052011 3 540 68 802 7,854 4 871 50 855 5,8052012 3 540 68 802 7,854 4 871 50 855 5,805

Electricity consumption for the needs of "NORD"

Calculated consumption of heat by "NORD"

Years Product volume

Gas consumption for heat

production


Page 28

2. CURRENT SITUATION

2.1. HekroPET At present the necessary power resources for the normal operation of HekroPET Plant, namely electric power, gas, heat and cold are provided in the following way: Electric power Electric power consumers of HekroPET Plant are mainly referred to the first category of reliability, which according to Ukrainian regulations means its power supply minimum from two independent sources. The plant power supply is provided from the grid „Khmelnitskoblenergo” 110kV and transformer substation 110/10kV with two transformers 110/10kV through two inputs 10kV. Each transformer has a nominal capacity of 25 MVA and consequently is able to provide the total power supply of the plant after the stop of the other one for preventive or emergency maintenance. Irregardless of the fact that power supply is obtained from two sources, there have been repeated cases when the power supply was stopped as a result of strong wind. In such cases HekroPET Plant has to bear high damage due to the losses of half-finished products, damage of electric furnaces due to the raw material coagulation. Natural gas, heat Natural gas is used to heat offices in winter. The plant technological equipment during its operation extracts heat that should be constantly discharged. So as a rule, facilities do not need additional heating. Thermal energy for office heating is produced at their own boiler house. Установлен в 2003 году котел Viessman, Vitoplex 100 мощностью 895 кВт, КПД 96%. HekroPET Plant is supplied through the gas pipeline of medium pressure 0.3MPa with the passage diameter of 300mm. The estimated carrying capacity of the gas pipeline is about 7,000nm3 of natural gas. The peak demand of the plant boiler house is approximately from 120 to 170 nm3/h. The gas supply is reliable. There have been no emergency stops of gas supply except for preventive works and maintenance. It is evident that the allowed carrying capacity of the gas pipeline is absolutely adequate for the reliable supply of the new Cogeneration Plant and also for the planned future plant enlargement. It is one of the key factors for the decision to install the Cogeneration Plant. Cold Cold in the form of ice-cold water with the temperature +7/+9 0С is used for the process purposes of HekroPET Plant in the pre-form workshop (where pet-forms are produced) and stretch-film workshop. With the help of cold water the pet-forms that are just cast are constantly cooled. After passing through the process cycle the cold water is heated to +9 0С and comes to compressor-refrigerating machines where it is cooled to +70С.


Page 29

The annual electric power consumption for the needs of water-cooling and cold consumption is calculated on the basis of specific indices of consumption of the correspondent energy carriers per unit of the released product and is given below. In order to produce cold, they use traditional compressor-refrigerating machines with cooling by means of wet coolers. The list of equipment to produce cold in the peak operation is given in the table below: Compressor refrigerating machines Type Q-ty,

pc Power by cold, kW

Total power by cold of this machine type, kW

Electric power, kW

Total electric power of this machine type, kW

RPW 3200 6 273 1,638 127 762 RPN 2700 2 210 410 117 234 RPN 3600 1 290 290 133 133 Total: 2,338 1,129 Roofed coolers LSWA87B 4 1,200 4,800 7 28 LU-VE SHLDN 966B

3 600 1,800 24 72

AT-6000 1 600 600 15 15 Total: 7,200 115 Pump station FNE 65- 250/300

8 30 240

FNE 65- 250/370

13 37 296

Total: 536 Consequently to produce cold in the form of cold water the Cooling Workshop of HekroPET Plant uses a certain amount of electric power, in particular at the compressor-refrigerating machine, pump station and roofed coolers. Характеристики холодильной компресионной машины RPW 320 в приложении 13. After summarizing the specific consumption of electric power to produce 1 kWh of cold in various equipment types, also after applying turn-on ration (it is 0.5 for pumps, i.e. one pump is the main, the other is reserve) and load ratio 0.8, the specific consumption of electric energy is:

- At compressor-refrigerating machines: (1129/2338) * 0.9=0.38 kWhеl/1 kWhcold;

- At pump stations: (536/2338)* 0.8 * 0.5=0.09 kWhеl/1 kWhcold; - At roofed coolers: (115/2338)* 0.8=0.04 kWhеl/1 kWhcold.

Consequently for production of 1 kWh of cold HekroPET Plant consumes 0.51 kWh of electricity (taking into consideration auxiliaries involved in cold production). The nature of the technological process allows no stops, the plant is operated in three shifts the whole year round without days off or any stops. The defined power of


Page 30

auxiliary technological equipment is higher than necessary in order to allow periodic stops of some aggregates for maintenance without the necessity to stop the plant operation in the whole. За прошлые периоды информация недоступна, т.к. завод работал на дргой площадке. Доступная информация приведена ниже.

2004 год 2005 год потребление Электроэн

ергия, тыс.кВт⋅ч

Холод, тыс. кВт⋅ч

Электроэнергия, тыс.кВт⋅ч

Холод, тыс. кВт⋅ч

Январь 1239 1000 2218 1500 Февраль 1765 1000 2403 1500 Март 2045 1000 2584 1500 Апрель 2068 1000 Май 1964 1200 Июнь 2145 1200 Июль 2190 1200 Август 2134 1200 Сентябрь 2207 1500 Октябрь 1917 1500 Ноябрь 1948 1500 Декабрь 2197 1500 всего 23 819 14 800 В связи с установкой в первой половине 2005 года нового технологического оборудования, среднемесячное электропотребление возрастет до 6200 тыс.кВт⋅ч, а потребление холода до 2500 кВт⋅ч. Потребление газа для нужд отопления составляет 10-22 тыс.м3 за месяц в течении отопительного сезона. Прогнозные значения энергопотребления приведены ниже:

Total per year

Average power

Total peryear Average power Total per

year Average power

mln.UAH MWh MW MWh MW MWh MW

2004 215,6 14 800 1,689 16 271 1,857 7 548 0,8622005 290,0 18 000 2,055 21 828 2,492 9 180 1,0482006 345,0 30 000 3,425 59 100 6,747 15 300 1,7472007 345,0 30 000 3,425 59 100 6,747 15 300 1,7472008 345,0 30 000 3,425 59 100 6,747 15 300 1,7472009 345,0 30 000 3,425 59 100 6,747 15 300 1,7472010 345,0 30 000 3,425 59 100 6,747 15 300 1,7472011 345,0 30 000 3,425 59 100 6,747 15 300 1,7472012 345,0 30 000 3,425 59 100 6,747 15 300 1,747

Years

Cold consumption forprocess needsProduction

volumes


Power consumption on-siteexcept for electricity used forcold generation


Page 31

2.2. Medical Glass At present the necessary power resources for the normal operation of Medical Glass namely electric power, gas and heat are provided in the following way: Electric power Medical Glass is mainly referred to the first and second category of reliability, which according to Ukrainian regulations means its power supply minimum from two independent sources. The plant power supply is provided from the grid „Poltavaoblenergo” through 2 cable lines 10kV and 2 cable lines 6kV. The main plant consumers are smelting furnaces that consume electricity with the voltage of 10kV. Natural gas and heat Natural gas is used to produce thermal energy in boilers, а также на технологические нужды для разогрева стеклозаготовок и придания им пластичности. На данный момент в котельной установлено 3 котла типа Братск-1, тепловой мощностью 3х1 МВт, 1978 года выпуска. На сегодня они уже отработали свой ресурс, и поэтому руководство решило переоснастить котельную 2-мя современными котлами пр-ва Viessmann, типа Vitoplex 100, мощностью 985 кВт (см. приложение 11). До начала отопительного периода 2005 года 1 котел уже будет установлен. № п/п

Цех, служба

Jan

Feb

Mar

ch

Apr

May

June

July

Aug

Sep

Oct

Nov

Dec

Sum

Расход природного газа за 2004 год по заводу, м3 1 Печь №1 109

00 13100

9400

8750

7800

13440

10000

13400

13947

15427

33100

32600

181867

2 Печь №2 35700

31900

34200

32400

32600

27700

36330

30400

30050

28497

30200

35800

385777

3 Шихто-составной участок

4000

4800

4700

3700

3020

3460

3400

3600

3290

34600

4000

5300

46730

4 Цех №2 111400

118526

128702

136626

145644

128829

138071

128597

133166

133645

96554

146205

1545965

5 Котельная 76057

68310

38000

15456

0 0 0 0 0 23460

53460

69000

343743

6 Стадион 804 756 664 457 192 109 75 65 85 470 719 902 5298 Расход электроэнергии за 2003 год по заводу, кВтч 1 всего 252

0671

2495871

2659316

2537802

2596564

2650370

2777411

1470155

1921422

2636445

2496437

2111816

28874280

Расход электроэнергии за 2004 год по заводу, кВтч 2 всего 244

7658

2513653

2391546

2559731

2504098

2603963

2616535

2572356

2545281

2473984

2034545

2727346

29990696

Учет тепловой энергии, произведенной на котльной завода, не производится, поэтому значения потребляемой тепловой энергии брались, из расчета КПД котлов 89% и теплоты сгорания газа 9,5 кВт⋅ч/м3. The boilers after the project implementation will supply heat in cases of emergency or scheduled stops of the cogeneration sets, and also to provide peak thermal loads of the sites.


Page 32

2.3. Demitex At present the necessary power resources for the normal operation of Demitex Plant are electric power and gas. Electricity Electric power consumers of Demitex Plant are mainly referred to the first and second category of reliability, which according to Ukrainian regulations means its power supply minimum from two independent sources. The plant power supply is provided from the grid „Poltavaoblenergo” 110kV and transformer substation 110/6kV with two transformers 110/6kV through two inputs 6kV. Irregardless of the significant power of the installed transformers (25MW), the further increase of the plant power consumption according to the development programs as stated in is problematic due to the overload of the local grid. Irregardless of the fact that power supply is obtained from two sources, there have been repeated cases when the power supply was stopped as a result of strong wind and cable damage due to their wear. In such cases Demitex Plant has to bear high damage due to the losses of half-finished products. Natural gas and heat Natural gas is used exclusively to heat offices in winter. The thermal energy for heating of Demitex Plant is produced by its own boiler house with the boilers 3хDKVR-10/13, 1xE-2,5 and 1xE-25. Характеристики котлов находятся во вложении 11. The plant is supplied through the gas pipeline of medium pressure 0.3MPa with the passage diameter of 300mm. The estimated carrying capacity of the gas pipeline is about 7,000nm3 of natural gas. At Demitex Plant there are currently two steam boilers DKVR-10/13 installed that operate in water-heating mode. Thermal efficiency of boilers by the results of adjusting works was 89%. Все котлы уже выработали проектный ресурс (около 20 лет), однако находятся в состоянии, пригодном к эксплуатации. The peak demand of the plant boiler house is approximately from 190 to 230 nm3/h. The gas supply is reliable. There have been no emergency stops of gas supply except for preventive works and maintenance. It is evident that the allowed carrying capacity of the gas pipeline is absolutely adequate for the reliable supply of the new Cogeneration Plant and also for the planned future plant enlargement. It is one of the key factors for the decision to install the Cogeneration Plant. Cold Холод На сегодняшний день производственные цеха (в зимний, и летний периоды) охлаждаются с помощью 27 кондиционеров, запитанных проточной холодной водой городской системы водоснабжения. При этом из-за слишком высокой температуры холодной воды на входе в кондиционеры (летом 12-15°С), производственные помещения охлаждаются недостаточно, вследствии чего


Page 33

приходилось останавливать производство. Такие остановки происходили последние 3 года (с тех пор как были демонтированы выработавшие ресурс компресионные чилеры) в летние месяцы (июль, август 2003г., июль, часть августа 2004г.). Из-за растущего спроса на продукцию руководством Demitex (они же собственники ТК “Tornado”) было принято однозначное решение об установке холодильной машины (компресионной или абсорбционной) с целью: исключить остановы предприятия из-за высокой температуры в цехах (до 37°С), довести микроклимат на рабочих местах до требуемого, обеспечить возможность ввода и эксплуатации вводимого оборудования, а также исключения затрат на потери проточной холодной воды для кондиционирования, превратив разомкнутый контур в замкнутый. Это решение будет реализовано не зависимо результата тендера ERUPT 5.

2.4. Tornado The Business Complex Tornado is being constructed at the moment. A description of the original planned power supply system (baseline scenario) is described in paragraph 3.4.1.

2.5. NORD At present the necessary power resources for the normal operation of NORD are provided in the following way: Electric power Electric power consumers of NORD are mainly referred to the first and second category of reliability, which according to Ukrainian regulations means its power supply minimum from two independent sources. The one-line power supply diagram of NORD Plant consumers is supplied from the municipal substation 110kV at the high voltage through two inputs 110kV. The further voltage transformation to 6kV is supplied below at own transformer substations (2 transformers 110/6 kV). Natural gas and heat Natural gas is used exclusively to produce thermal energy in boilers and тепловентиляторах фирмы Kroll. At NORD Plant the gas is burned in four steam boilers DKVR-10 to produce steam for the process needs (2 котла 1977 года и 2 котла 1985 года), и 2 котла DE-16/14 (1990 года). Концепция развития системы теплоснабжения такова, чтобы после установки CHP оставить два котла DE и тепловые вентиляторы как резервные. Остальное котельное оборудование будет демонтировано. Характеристики отопительного оборудования в приложении 11.


Page 34

Потребление газа за последние годы приведено ниже месяц Потребление

электроэнергии, 2003, тыс.кВт⋅ч

Потребление газа, 2003, тыс.м3

Потребление электроэнергии, 2004, тыс.кВт⋅ч

Потребление газа, 2004 тыс.м3

январь 4100 560 4170 500 февраль 4690 530 6092 648 март 4967 375 6214 477 апрель 4260 250 5535 300 май 4259 5400 275 июнь 5098 5184 361 июль 5900 5036 239 август 5021 4600 220 сентябрь 5452 5244 219 октябрь 5460 75 4927 251 ноябрь 5339 464 4844 481 декабрь 4594 691 5301 555 всего 59 144 2 945 62547 4528


Page 35

3. GHG SOURCES AND BOUNDARIES

В дальнейшем описаны все источники GHG, которые включены в границы проекта. При этом в дальнейшем были исключены из границ следующие источники GHG, имеющие отношение к проекту:

Источник Причина, по которой он не был включен

Эмисии метана (CH4), возникающие при добыче, транспортировке, распределении топлива – NG, которое используется в boilers (Base Line) и в CHP.

as they are outside control and measuring capacity of the project developer

Эмисси метана (CH4), N2O, возникающие при выполнении монтажных работ (сварочных работ) при инсталяции оборудования CHP

Emissions that are non-significant, this is account yearly for less than 1% of the yearly CO2eq. emissions in the baseline situation.

Потребление электроэнергии от public grid и связанные с ней эмисии CO2e, которое потребуется для инсталляции оборудования CHP по проекту


Эмисси метана (CH4), N2O, возникающие при выполнении испытательных работ на вновь смонтированных газопроводах и газоиспользующем оборудовании при испытаниях


3.1. HekroPET

3.1.1. Scheme of the current power supply system The scheme of power supply of HekroPET Plant with their basic components and interconnections is given below:

Where: 1 – СО2 emissions (gas burning in boilers); 2 – СО2 emissions (electric power generation in the grid).

Natural gas supply

1x water boiler VITOPLEX300 efficiency = 91%

heat

HekroPET Plant

(production area and offices)

Heating network

1

Electric power from

the grid

2 Refrigerating workshop cold

Cold conductor

HekroPET Plant boundaries


Page 36

Description of natural gas consumers in this situation: One water boiler of Viessman Vitoplex300 with thermal power of 0.895 MW with a temperature schedule 90/700С is currently in operation. The boilers are used to heat the offices. The nominal thermal efficiency is 92%. Description of electric power consumers: The production line is working are 24 hours a day the whole year round. Electricity is consumed by the Refrigerating Workshop for cold production plus other electricity needs.

3.1.2. Scheme of power supply after project implementation The following aspects are taken into consideration while constructing the scheme of power supply: • A cogeneration unit for combined production of thermal and electric energy will be

installed. The thermal energy will be directed to the absorption-refrigerating machine for cold production;

• Electric energy production at the CHP in its total volume will go to the demands of HekroPET Plant; remain demand in electricity will be provided from the public grid “Khmelnitskoblenergo”;

• Thermal energy production at the CHP in its total volume will go to the demands of cold production in the absorption-refrigerating machine. The scheme provides connection of the CHP and existing water heating boiler house into one heat collector for increased reliability in case of malfunctions or scheduled maintance;

• Cold production at the absorption-refrigerating machine in its total volume will go to the process demands of HekroPET Plant, the other demands of the plant in cold will be provided from the existing compressor-refrigerating machines;

• Two water heating boiler will be added to meet the increased heating demand of the offices in winter. However, the potential increase of gas consumption is not influence by the project and has been excluded from the calculations.

The project system scheme of power supply of HekroPET Plant with its basic components and their interconnections is shown below:


Page 37

3.1.3. Project boundaries The scheme of project boundaries with their basic components and their interconnections is given below:

where: 1 – direct on-site СО2 emissions (gas burning at the CHP); 2 – direct off-site СО2 emissions (gas burning at the boiler house);

Natural gas supply

3x water heating boilers VITOPLEX 300 efficiency = 91%

heat

HekroPET Plant

(production and offices)

Heating network

Electric power from

the grid

Refrigerating workshop cold

Cold conductor


Natural gas supply 2x CHP

JMS620 heat

2x Absorption chillers LT60-s

Electric power

Project boundaries

Natural gas supply

3x Water heating boilers VITOPLEX 300 efficiency = 91%

heat

HekroPET Plant

(production area and offices)

Heating network

2

Electric power from

the grid


Cold conductor



JMS620 heat

1 2x Absorption chiller LT60-s

Electric power

Project boundaries


Page 38

3 – direct off-site СО2 emissions (electric energy from the grid). The project boundaries include the installation of the CHP and absorption-refrigerating machines with natural gas from the gas pipeline at the input and with electric energy and cold at the output of the product project boundaries. Irregardless of the fact that the project will be installed at an industrial site, the project boundary is strictly the CHP, absorption-refrigerating machines, and also heat, cold, and electric grid for the communication with HekroPET Plant. That is why CO2 emissions caused by natural gas burning at the CHP are referred to direct on-site emissions. Before the project implementation HekroPET Plant provided its demands in electric energy from the grid “Khmelnitskoblenergo” and in thermal energy for office heating in winter from its own boiler house working on natural gas. The production line needs in the form of cold water with the temperature of 7/12°С was provided from electric-driven compressor-refrigerating machines. After the project commissioning the plant will start receiving electric energy and cold from the Cogeneration Plant in order to meet a certain part of his demands. Other demands in electric energy will be provided to the Plant from the grid “Khmelnitskoblenergo” and from the existing refrigerating workshop with compressor-refrigerating machines. СО2 emissions by electric energy from the electric grid are referred to direct off-site emissions. After the project realization the plant will continue operating the water heating boiler house for office heating. But since the project has no influence on the boiler house operation, on its efficiency and СО2 emission volume during a year, these emissions take no part in further calculations. The project realization will result in the formation of the single additional source of СО2 emissions in the form of natural gas combustion at the Cogeneration Plant. One more result of the project realization is cold supply to HekroPET Plant; this cold will be generated by the absorption chiller at the Cogeneration Plant. This will lead to the replacement of a certain amount of cold production at the plant by electric-driven compressor-refrigerating machines. Due to this the electric energy consumption by HekroPET Plant for the demands of the refrigerating workshop will decrease. As stated in paragraph 2.1 HekroPET Plant spends 0.51 kWhеl for the production of 1kWhcold at the existing compressor-refrigerating machines. Consequently baseline scenario emissions are defined exclusively by electric energy consumption by HekroPET Plant from the grid “Khmelnitskoblenergo”. After the project realization СО2 emissions are defined by natural gas consumption for the CHP needs, and СО2 emission reductions are defined by the electric energy volume supplied to the plant from the CHP, and also by the cold volume supplied to the plant from the CHP.

3.2. Medical Glass

3.2.1. Scheme of the current power supply system


Page 39

The scheme of the current power supply system of Medical Glass with their basic components and interconnections is given below: where: 1 – СО2 emissions (gas combustion in boilers); 2 – СО2 emissions (electricity from the grid). Description of natural gas consumers: The water-heating boilers are two water-heating boilers VITOPLEX VX10100 with thermal power 2 х 1.4MW, temperature chart 110/70 0С. The boilers are designed to heat offices and supply hot water. The nominal efficiency is 91%. Characteristics of the water-heating boilers VITOPLEX VX10100 are given below: No. Parameter Unit Value Note 1 Thermal power

kW 1,400

2 Hot water parameters °С 110/70 3 Thermal efficiency % 91 By the temperature chart

110/70°С 4 Natural gas consumption nm3 162 (calorific value 9.5

kWh/nm3) The function of these boilers after the project implementation is to increase the heat supply reliability of the sites in cases of emergency or scheduled stops of the cogeneration sets Electricity supply description:

Electricity will be supplied from the public grid Poltavaoblenergo Description of electricity consumers: The electricity needs of Medical Glass are mainly determined by the glass smelting furnaces which are in the constant operation.

3.2.2. Scheme of power supply after the project realization The following aspects are taken into consideration while constructing the scheme of power supply:

• A CHP for combined production of thermal and electric energy will be installed. The thermal energy will be directed to the existing general heat collector for parallel operation with the existing boiler house;

Natural gas supply

2x Water boilers VX10100

efficiency = 91%heat

Factory Heating network

1

Electricity from the grid

2

Medical Glass boundaries


Page 40

• Electric energy production at the CHP in its total volume will go to the demands the factory (24 hours the whole year); remaining demand in electricity will be provided from the public grid;

• Thermal energy production at the CHP in its total volume will go to the heat demands of the factory. The technology provides connection of the CHP and existing water heating boilers into one heat collector from the consideration of safety and inter backup.

After project implementation the basic components and their interconnections is shown

below:

Natural gas supply

2x Water boilers VX10100,

efficiency = 91%heat

Factory

Heating network

Electric power from

the gridMedical Glass boundaries


JMS-320 heat

Electricity

Project boundaries


Page 41

3.2.3. Project boundaries The scheme of project boundaries with basic components and their interconnections is shown below:

where: 1 – direct on-site СО2 emission (gas burning at the CHP); 2 – direct off-site СО2 emissions (gas burning at the boiler house); 3 – direct off-site СО2 emissions (electric power from the grid). The project boundaries include only the installation of the CHP with natural gas from the gas pipeline at the input and with electricity and thermal energy at the output of the product project boundaries. Irregardless of the fact that the project will be installed at an industrial site, the project boundary is strictly the CHP, and also heat and electric grids for the communication with the factory. That is why CO2 emissions caused by natural gas burning at the CHP are referred to direct on-site emissions. Medical Glass is current supplied with electricity energy from the grid “Poltavaoblenergo” and in thermal energy for office heating in winter from its own boiler house working on natural gas. After the project commissioning Medical Glass will start receiving electric energy and heat from the Cogeneration Plant in order to meet a certain part of its demands. Other demands in electric energy will be provided by the public grid, other demands in heat will be provided by water-heating boilers. That is why СО2 emissions by electric energy from the electric grid are referred to direct off-site emissions. After the project realization Medical Glass will be able to operate its water-heating boiler house for process needs and heating; these are direct off-site СО2 emissions during gas burning at the water heating boilers. The project realization will result in the formation of the single additional source of СО2 emissions in the form of natural gas combustion at the

Natural gas supply


Efficiency = 91%heat

Factory Heating

network

2

Electric power from

the grid

3

Medical Glass boundaries


JMS320 heat

1

Electricity

Project boundaries


Page 42

Cogeneration Plant. Consequently baseline scenario emissions are defined exclusively by electric energy consumption by Medical Glass from the public grid and natural gas combustion at water-heating boilers for heating. After the project realization СО2 emissions are defined by natural gas consumption for the CHP needs, and СО2 emission reductions are defined by the electric energy volume supplied to the plant from the CHP, and also by the heat volume supplied to Medical Glass from the CHP.

3.3. Demitex

3.3.1. Scheme of the current power supply system The scheme of power supply of Demitex Plant with their basic components and interconnections is given below:

where: 1 – СО2 emissions (gas burning in boilers); 2 – СО2 emissions (electric power from the grid). Description of natural gas consumers: The water-heating boilers are three water-heating boilers DKVR-4. The boilers are designed to heat offices. The nominal thermal efficiency is 90%, and by the results of start and adjusting works on the flare operation adjustment the efficiency was 89%. Power supply description: Electricity is supplied by the public grid Poltavaoblenergo. Compressor-refrigerating machines One compressor-refrigerating machine is currently operating to produce cold in the form of cold water with the temperature of +7°С for process needs of Demitex Plant. Compressor-refrigerating machines produce cold due to refrigerant boiling and its further condensation. At that a sufficient quantity of electric power is used for compressor electric drive. Description of heat consumers: Heat is needed for manufacturing, heating offices in winter and for hot water supply.

Description of electricity consumers: Process needs of Demitex Plant are 24 hours a day the whole year round with almost constant load due to operation in three shifts.

Natural gas supply

3x Water boilers DKVR-4


Demitex Plant Heating network

1

Electric power from

the grid


Cold conductor

Demitex boundaries


Page 43

3.3.2. Scheme of power supply after the project realization The following aspects are taken into consideration while constructing the scheme of power supply: • A CHP for combined production of thermal and electric energy will be installed.

The thermal energy will be directed to the absorption-refrigerating machine for cold production in summer and for heating needs in winter;

• Electric energy production at the CHP in its total volume will go to the demands of Demitex Plant (24 hours the whole year); remaining demand in electricity will be provided from the public grid;

• Thermal energy production at the CHP in its total volume will go to the heat demands of the sites, and cold production by the absorption chillers will go to the cold needs of the sites. The technology provides connection of the CHP and existing water heating boilers into one heat collector from the consideration of safety and inter backup;

• Cold production at the absorption-refrigerating machine in its total volume will go to the demands of air conditioning of Demitex Plant the other demands in cold will be provided from the existing compressor-refrigerating machines;

The project system scheme of power supply of Demitex Plant with its basic components and their interconnections is shown below:

Natural gas supply


Efficiency = 89%Heat

Demitex Plant

Heating network

Electric power from

the grid

Refrigerating workshop cold

Cold conductor

Demitex Plant boundaries


JMS612 heat 1x Absorption

chillers LT60-s

Electricity

Project boundaries


Page 44


where: 1 – direct on-site СО2 emissions (gas burning at the CHP); 2 – direct off-site СО2 emissions (gas burning at the boiler house); 3 – direct off-site СО2 emissions (electric power from the grid). The project boundaries include the installation of the CHP and absorption-refrigerating machines with natural gas from the gas pipeline at the input and with electric energy, thermal energy and cold at the output of the product project boundaries. Irregardless of the fact that the project will be installed at an industrial site, the project boundary is strictly the CHP, absorption-refrigerating machines, and also heat, cold, and electric grid for the communication with Demitex Plant. That is why CO2 emissions caused by natural gas burning at the CHP are referred to direct on-site emissions. Before the project implementation Demitex Plant provided its demands in electric energy from the grid “Poltavaoblenergo”, and in thermal energy for office heating in winter from its own boiler house working on natural gas. Process needs in cold in the form of cold water with the temperature of 7/12°С were provided from electric-driven compressor-refrigerating machines. After the project commissioning Demitex Plant will start receiving electric energy, heat and cold from the Cogeneration Plant in order to meet a certain part of its demands. Other demands in electric energy will be provided by the public grid, other demands in cold will be provided by its own refrigerating workshop with compressor-refrigerating

Natural gas supply



Demitex Plant Heating

network

2

Electric power from

the grid


Cold conductor

Demitex Plant boundaries


JMS612 heat

1 1x Absorption chiller LT60s

electricity

Project boundaries


Page 45

machines, and demands in heat will be provided by water-heating boilers. That is why СО2 emissions by electric energy from the electric grid are referred to direct off-site emissions. After the project realization Demitex Plant will be able to operate its water-heating boiler house for heating; these are direct off-site СО2 emissions during gas burning at the water heating boilers. The project realization will result in the formation of the single additional source of СО2 emissions in the form of natural gas combustion at the Cogeneration Plant. One more result of the project realization is cold supply to Demitex Plant; this cold will be generated by the absorption chiller at the Cogeneration Plant. This will lead to the replacement of a certain amount of cold production by electric-driven compressor-refrigerating machines. Due to this the electric energy consumption by Demitex Plant for the demands of the refrigerating workshop will decrease. As stated in paragraph 2.3 Demitex Plant spends 0.37 kWhе for the production of 1kWhcold. Consequently baseline scenario emissions are defined exclusively by electric energy consumption by Demitex Plant from the public grid and natural gas combustion at water-heating boilers for heating. After the project realization СО2 emissions are defined by natural gas consumption for the CHP needs, and СО2 emission reductions are defined by the electric energy volume supplied to the plant from the CHP, and also by the heat and cold volume supplied to Demitex Plant from the CHP.

3.4. Tornado

3.4.1. Scheme of the current (planned) power supply system The scheme of power supply of Tornado with their basic components and interconnections is given below. This scheme would reflect the equipment that would have installed in the baseline scenario (traditional set-up).

where: 1 – СО2 emissions (gas burning in boilers); 2 – СО2 emissions (electric power from the grid). Description of natural gas consumers: The water-heating boilers are three water-heating boilers VX10100 with thermal power 3 х 1.4MW. The boilers are designed for heating and hot water supply. The nominal thermal efficiency is 91%. Please refer to paragraph 3.2.1 for the characteristics.

Natural gas supply



Tornado complex Heating network

1

Electric power from

the grid

2 3x Compressor chillers RTAC-300 cold

Cold conductor

Tornado boundaries


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Power supply description: Electricity will be supplied from the public grid Dniproenergo. Description of heat consumers: Heating is used for the shop and offices plus for hot water supply.

Description of electricity consumers: The electricity needs of Tornado are at 10.00 – 22.00, they are almost stable; at night the consumption is slightly less. Three compressor-refrigerator RTAC-300 stations will be installed to supply cold to the air-condition system. Please refer to paragraph 2.3 for a technical description of the stations.

3.4.2. Scheme of power supply after the project realization The following aspects are taken into consideration while constructing the scheme of power supply: • A CHP for combined production of thermal and electric energy will be installed.

The thermal energy will be directed to the absorption-refrigerating machine for cold production in summer and for heating needs in winter;

• Electric energy production at the CHP in its total volume will go to the demands of Tornado (24 hours the whole year); remain demand in electricity will be provided from the public grid;

• Thermal energy production at the CHP in its total volume will go to the heat demands of the site and cold production by the absorption chillers will go to the cold needs of the sites.

• Instead of three boilers in the baseline scenario, only one boiler will be installed for backup;

• Instead of three compressor-refrigerating machine in the baseline scenario, only one compressor-refrigerating machine will be installed for backup;

The project system scheme of power supply of Tornado with its basic components and their interconnections is shown below:

Natural gas supply



Tornado

Heating network

Electric power from

the grid

1x Compressor chiller RTAC-300 cold

Cold conductor

Tornado boundaries


JMS316 heat 1x Absorption

chiller LT60-s

Electricity

Project boundaries


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where: 1 – direct on-site СО2 emissions (gas burning at the CHP); 2 – direct off-site СО2 emissions (gas burning at the boiler house); 3 – direct off-site СО2 emissions (electric power from the grid). The project boundaries include the installation of the CHP and absorption-refrigerating machines with natural gas from the gas pipeline at the input and with electric energy, thermal energy and cold at the output of the product project boundaries. Irregardless of the fact that the project will be installed at an industrial site, the project boundary is strictly the CHP, absorption-refrigerating machines, and also heat, cold, and electric grid for the communication with Tornado. That is why CO2 emissions caused by natural gas burning at the CHP are referred to direct on-site emissions. The project of traditional power supply of Tornado projected to provide its demands in electric energy from the grid “Dniproenergo”, in thermal energy for office heating in winter from its own boiler house working on natural gas, and the needs in cold in the form of cold water with the temperature of 7/12°С to provide from electric-driven compressor-refrigerating machines RTAC 300. After the project commissioning Tornado will start receiving electric energy, heat and cold from the Cogeneration Plant in order to meet a certain part of its demands. Other demands in electric energy will be provided by the public grid, other demands in cold will be provided by its own refrigerating workshop with compressor-refrigerating machines, and demands in heat will be provided by water-heating boilers. That is why

Natural gas supply



Tornado Heating

network

2

Electric power from

the grid

3 1x Compressor chiller RTAC300 cold

Cold conductor

Tornado boundaries


JMS316 heat

1 1x Absorption chiller LT60s

Electricity

Project boundaries


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СО2 emissions by electric energy from the electric grid are referred to direct off-site emissions. The project realization will result in the formation of the single additional source of СО2 emissions in the form of natural gas combustion at the Cogeneration Plant. One more result of the project realization is cold supply to Tornado; this cold will be generated by the absorption chiller at the Cogeneration Plant. This will lead to the replacement of a certain amount of cold production by electric-driven compressor-refrigerating machines. Due to this the electric energy consumption by Tornado for the demands of the refrigerating workshop will decrease. As stated in 2.3 Tornado spends 0.37 kWhе for the production of 1kWhcold. Consequently baseline scenario emissions are defined exclusively by electric energy consumption by Tornado from the public grid and NG combustion at water-heating boilers for heating. After the project realization СО2 emissions are defined by natural gas consumption for the CHP needs, and СО2 emission reductions are defined by the electric energy volume supplied to the plant from the CHP, and also by the heat and cold volume supplied to Tornado from the CHP.

3.5. NORD

3.5.1. Scheme of the current power supply system The scheme of the current power supply system of NORD with their basic components and interconnections is given below:

where: 1 – СО2 emissions (gas combustion in boilers); 2 – СО2 emissions (electricity from the grid). Description of natural gas consumers in this situation: The water-heating boilers are four water-heating boilers DKVR-10 with steam power 10t/h. The boilers are designed to produce steam for technological needs and to heat offices in winter. The nominal thermal efficiency is 91% and by the results of start and adjusting works on the flare operation adjustment the actual efficiency is 89%. Power supply description: Electricity is supplied from the public grid Donetskoblenergo.

Natural gas supply



NORD Plant Heating

network

1

Electric power from

the grid

2

NORD Plant boundaries


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Description of electricity consumers: Process needs of NORD Plant are 24 hours a day the whole year round with almost constant load due to operation in three shifts.

3.5.2. Scheme of power supply after the project realization The following aspects are taken into consideration while constructing the scheme of power supply:

• Four CHPs for combined production of thermal and electric energy will be installed. The thermal energy will be directed to the existing general heat collector for parallel operation with the existing boiler house;

• Electric energy production at the CHP in its total volume will go to the demands of NORD Plant (24 hours the whole year); remaining demand in electricity will be provided from the public grid;

• Thermal energy production at the CHP in its total volume will go to the heat demands of NORD in the periods of peak loads the additional needs in thermal energy will be covered by boilers DKVR-10. The technology provides connection of the CHP and existing water heating boilers into one heat collector from the consideration of safety and inter backup.

The project system scheme of power supply of NORD with its basic components and their interconnections is shown below:

Natural gas supply



NORD Plant

Heating network

Electric power from

the grid

NORD boundaries


JMS620heat

Electricity

Project boundaries


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where: 1 – direct on-site СО2 emission (gas burning at the CHP); 2 – direct off-site СО2 emissions (gas burning at the boiler house); 3 – direct off-site СО2 emissions (electric power from the grid). The project boundaries include only the installation of the CHP with natural gas from the gas pipeline at the input and with electric and thermal energy at the output of the product project boundaries. Irregardless of the fact that the project will be installed at an industrial site, the project boundary is strictly the CHP, and also heat and electric grids for the communication with NORD. That is why CO2 emissions caused by natural gas burning at the CHP are referred to direct on-site emissions. Before the project implementation NORD Plant provided its demands in electric energy from the grid “Donetskoblenergo”, and in thermal energy for process needs and office heating in winter from its own boiler house working on natural gas. Process needs in cold in the form of cold water with the temperature of 7/12°С were provided from electric-driven compressor-refrigerating machines. After the project commissioning NORD Plant will start receiving electric energy and heat from the Cogeneration Plant in order to meet a certain part of its demands. Other demands in electric energy will be provided by the public grid, other demands in heat will be provided by water-heating boilers. That is why СО2 emissions by electric energy from the electric grid are referred to direct off-site emissions.

Natural gas supply



NORD Plant Heating

network

2

Electric power from

the grid

3

NORD Plant boundaries


JMS620 heat

1

Electricity

Project boundaries


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After the project realization NORD Plant will be able to operate its water-heating boiler house for process needs and heating; these are direct off-site СО2 emissions during gas burning at the water heating boilers. The project realization will result in the formation of the single additional source of СО2 emissions in the form of natural gas combustion at the Cogeneration Plant. Consequently baseline scenario emissions are defined exclusively by electric energy consumption by NORD from the public grid and NG combustion at water-heating boilers for heating. After the project realization СО2 emissions are defined by natural gas consumption for the CHP needs, and СО2 emission reductions are defined by the electric energy volume supplied to the plant from the CHP, and also by the heat volume supplied to NORD from the CHP.

3.6. Direct and indirect emissions According to the project boundaries, direct and indirect, on-site and off-site emissions are given in the table below: On-site emissions Project Baseline scenario Direct or indirect Included or excluded СО2 emissions from natural gas combustion at the CHP

direct included

Off-site emissions Project Baseline scenario Direct or indirect Included or excluded СО2 emissions from natural gas combustion at the plant boiler house

СО2 emissions from natural gas combustion at the plant boiler house

direct Included (except for HekroPET)

СО2 emissions - electric energy consumption from the grid

СО2 emissions - electric energy consumption from the grid

direct included


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4. KEY FACTORS

4.1. External key factors

4.1.1. Social and Economic development According to “The forecast of economic and social development of Ukraine for 2002-2006” the following indices are expected:

- Annual Gross Domestic Product (GDP) increase not less than 6%; - Inflation rate maximum 4.3 per cent; - Number of employees aged 15-70 will increase to 1.8 million people in

comparison with 2001; the number of the unemployed will decrease more than to 500,000 people;

The constant growth and low inflation rate will have a positive effect on the production level of the factories (see below).

4.1.2. Capital availability The climate at the Ukrainian credit market is increasing every year in the result of country’s economy stabilizing but it still remains volatile and risky. This undoubtedly influences the interest rate for credits, its terms and conditions. The normal interest rates for credits provided in foreign currency in Ukraine (EUR or USD) vary in the range from 12 % to 16 % depending on the credit amount, payback terms and debtor’s risk estimation. The table below shows interest rates for long-term credits (except for bank’s single commissions for lending) provided by Ukrainian banks in Ukraine. Years Annual interest rate for long-term credits to corporate clients [%] Credit currency UAH USD EUR 2000 24 17 17 2001 22 16 16 2002 22 16 16 2003 21 15 15 2004 21 14 14 2005 21 14 13.5

4.1.3. Fuel Prices and availability One of the main drivers to implement the project is the price of natural gas price in the long term. The only official forecast on fluctuations of gas prices till 2015 was issued in “REVIEW OF THE ENERGY SECTOR AND ENVIRONMENT” in November 2001 by the World Bank. According to this forecast the price fluctuations should be expected according to the main and pessimistic scenarios as shown in the table below: Scenario Actual prices, USD/1000Nm3 Expected Years 1999 2000 2003 2004 2000 2005 2010 2015 Base case 68 74 79 84 130 80 74.6 74.6 Pessimistic 68 74 79 84 147 139 142 150 The analysis of gas prices shows that the forecast of their possible fluctuations is difficult. In 2002, 2003 and 2004 the prices remained relatively constant with a one time increase of 12% in 2004. The gas market is determined by the two gas suppliers Russia


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and Turkmenistan. In their pricing policy, politics plays and important role. On the other

4.2. Internal key factors

4.2.1. Activity level The Ukrainian economy has been constantly growing since the recovery of the rouble crises of August 1998. The overall living standard in Ukraine is increasing resulting in an increase in demand of light industrial products. The project partners are mostly oriented on the domestic market and hence have been increasing their productions levels significantly. For example HekroPET, which was in 2000, increased its production in 2002 with 45% and in 2003 with 35%. The overall economic outlook of Ukraine is positive, also given the recent political developments. The potential for growth is abundant and Ukraine will catch up with the living standard in surrounding countries. With all sub-projects an estimation of the production output and the resulting energy needs have been estimated. Long term predictions are difficult to make so for the sake of conservatism the activity levels have been kept contact in 2006-2012.

4.2.2. Availability of liquid capital means Due to the increase in production the plants have a continuous need to improve and expand the production facilities. These improvements can be minor upgrades, but also include mayor overhauls of the production facility. An increased production also requires more working capital to finance work-in-hand. This leads to a constant lack to liquid capital within the companies.


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5. ADDITIONALITY

Note: Demonstration of additionality has been based on EB 16 guidance “Tool for the demonstration and assessment of additionality” Step 0: Preliminary screening

a) The sub-projects have not yet been implemented and therefore the starting date of the JI project activity falls after 1 January 2000. The start of the each JI project activity is projected to be not earlier than the 1st of May 2005. In absence of a JI Supervisory Committee the project(s) cannot be forwarded for registration yet;

b) The incentive of JI has been and is being considered by all project participants. This is demonstrated in the submitted Expression in Interest to ERUPT 5 in which project participants stated its interest to obtain the JI incentive for their envisaged project activity. The Expression of Interest was submitted October 2004 to the Dutch agency SenterNovem.

5.1. Step 1: Identification of alternatives to the project activity

5.1.1. Sub-step 1a. Alternatives to the project activity Alternative I (Cogeneration without JI): The first alternative is identical to the proposed JI project activity but is excluding the JI incentive. Alternative II (Renovation): The second alternative would entail a rehabilitation of the compressor-refrigerators and/or boilers plus other small repair works to reduce losses in the electricity consumption (e.g. renovating the existing transformers). Alternative III (Continuation): The third alternative is a continuation of the current situation. In this alternative the factory would continue to purchase electricity from the regional grid. The electricity would be used for the cooling purposes (were applicable) and for the remaining electricity needs of the factory. The boilers will remain in operation. Maintenance costs are made to keep the equipment in operation until 2012.

5.1.2. Sub-step 1b: Enforcement of applicable laws and regulations Alternative I (CHP without JI): Ukraine has developed several instruments to improve the efficiency of the Ukrainian economy. One of the instruments is to promote cogeneration. The Ukrainian government has draft a law called: “About the combined production of thermal and electric energy co-generation and use of up cast power potential”. This draft law has been approved by the Ukrainian parliament on the 29th of June 2004. The President returned the law on the 22nd of July 2004 with a request for changes to the draft law. It is up to the responsible committee of the Parliament to process the required changes before it will be resubmitted to the parliament for a revote. During the presidential


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elections that followed, the legislative process was stalled but expected that the draft will be adopted very soon. The absence of a cogeneration law does not prevent cogeneration units to be installed. As for each energy project, the necessary permits and approvals should be obtained. The project developer is not aware of any law or regulation that would prevent the implementation of a cogeneration unit. Circumstantial evidence is the fact that a few similar cogeneration units are operational which is discussed in paragraph 5.4.1. Alternative II (Renovation): Renovating the existing equipment would improve the efficiency and hence the consumption of electricity. The project developer is not aware of any policy or legislation that would prevent a renovation. Alternative III (Continuation): The plants have all necessary licences to operate the existing equipment. There are no laws under development that neither prevent operating the existing equipment nor purchasing electricity from the grid.

5.2. Step 2: Investment analysis

5.2.1. Sub-step 2a: Determination of analysis method The project, besides a JI incentive, would generate financial benefits by reducing the energy costs. Therefore the simple cost analysis (Option I) cannot be used. In the comparison analysis (Option II) the different alternatives should be financially compared. The alternative II is however not seriously considered by the project partners as it would not be a long-term solution for the factories as energy prices are expected to increase over the long term. For the investment analysis obtaining financial means is the main bottleneck and therefore the benchmark analysis (Option III) has been used for the purpose of showing the additionality of the project.

5.2.2. Sub-step 2b: Application of benchmark analysis The general investment climate is Ukraine, compared to neighbouring countries, is rather poor. For example Standard & Poor’s ratings are:

- Ukraine B+ - Poland A- - Hungary A - Czech republic A

The political climate in Ukraine has not been very stable in the past years although the recent developments indicate that Ukraine is proceeding with further integration with the European Union.


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The opportunities and bottlenecks of small-scale cogeneration have been recognized by several national and international institutions. The EBRD participates in UkrESCO and “Energy Alliance”1. Both companies finance cogeneration projects. Despite the fact that Ukraine has abundant profitable investment opportunities, the investment level is rather low due to the perceived risks, particular for long term investments. Therefore one of the most critical indicators for a project is the payback time. Financial institutions have a limited period in which they are willing to be exposed to a credit risk for a Ukrainian project. To define the benchmark value for the payback time, the easiest way would be to check the average statistics on investment projects parameters in the Ukrainian energy sector, including payback time, project IRR, company financial ratios. Some energy investment projects were analyzed to compare the different economic indicators. However, various methods are used to calculate the indicators (e.g. with or without discounting) making it rather difficult to compare the figures. Therefore it is more reasonable to define project benchmark payback time by indirect method, via the terms reasonable to obtain bank financing in Ukraine. To consider commercial bank loans financing possibilities, we can regard commercial banks loans. According to public information of local commercial banks, the long-term loans for investment projects financing can be provided for a period up to 3 years (e.g. KreditPromBank (www.kreditprombank.com), PrivatBank (www.privatbank.com.ua), UkrSotsBank (www.ukrsotsbank.com). The interest rates are in average 14-20%. Some local commercial banks provide financing by EBRD credit lines, and the EBRD terms are usually more favourable than those of commercial banks for the terms up to 5 years. Since in major cases, it is hardly possible to obtain bank loan financing for a period of over three years, the most reasonable benchmark value for this project would be the project discounted payback time of 3 to 3.5 years.

5.2.3. Sub-step 2c: Calculation and comparison of financial indicators The financial calculations included in the Business Plan show that the discounted payback time for the projects are as follows: Project Discounted payback time (years) HekroPET 3.8 Medical Glass 4.03 Demitex 3.35 Tornado 5.52 NORD 4.94

5.2.4. Sub-step 2d: Sensitivity analysis

Selection of variables The most important variables of this project are the costs of natural gas and the price of electricity within the first four years. Both variables, and in particular the difference in costs of both energy carriers, have an important impact on the financial performance of 1 See for a description: http://www.ebrd.com/projects/psd/psd2003/32108.htm


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the project. Both variable are not independent and are correlated: An increase of the natural gas price results also an increase of the electricity price.

Project stability The objective of the sensitivity analysis is to determine the influence on discounted pay-back time values in case of an increase of the gas prices and/or electricity tariffs. To determine the sensibility of the cogeneration projects the HekroPET project is taken as an example. The base project is the project without CO2 revenues, with payback time 3.69 years. We assume that in the year 2005 (so before the commissioning date 1st of January 2006) the gas and or electricity would be increased one time and recalculated the discounted payback time. The calculation results are shown in the diagram below:

14 3,13 3,15 3,16 3,18 3,20 3,21 3,23 3,25

12 3,19 3,21 3,23 3,24 3,26 3,28 3,30 3,31

10 3,26 3,28 3,29 3,31 3,33 3,35 3,37 3,39

8 3,33 3,35 3,36 3,38 3,4 3,42 3,44 3,46

6 3,40 3,42 3,44 3,46 3,48 3,5 3,53 3,56

4 3,48 3,50 3,52 3,55 3,58 3,61 3,64 3,67

2 3,57 3,6 3,63 3,66 3,69 3,72 3,76 3,79

Cha

nge

in e

lect

ricity

pric

e

0 3,69 3,72 3,75 3,78 3,81 3,85 3,88 3,92

% 0 2 4 6 8 10 12 14 Change in gas price

As one can see from the table the payback time is not much influenced by a change in energy prices. Only in case the electricity price would increase significantly and the gas price remains stable, the payback time comes close to three years. However it is unlikely that such an increase with stable gas prices would occur. Hence the project remains above the benchmark value for realistic scenarios.

5.3. Step 3: Barrier analysis

5.3.1. Sub-step 3a: Identification of barriers preventing the implementation of the proposed project

The following barriers could be identified: • Equity is not available for larger investment projects; • Uncertainty in energy price development; • Legislative uncertainty in Cogeneration Promotion Law;

Equity In paragraph 5.2.2 the general (in)possibilities to obtain debt financing have been described in relation to a maximum acceptable payback time. Under any circumstance each factory will have to finance part of the investment cost with equity.


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The available equity is scares. Fast growing companies like HekroPET are expanding their production facility to keep pace with the growing demand. A more established company like NORD has been and will need to invest in its existing production facilities to rehabilitate the often out-dated equipment. To keep the energy supply the easiest (short-term) option for the company is to purchase electricity from the grid. Hence equity finance is not available to the required amount or the cogeneration project has not the priority it needs to have. Energy price development The grid electricity price and the natural gas price are the two determining factors for the energy costs of the factories. Both energy carriers are determined by political circumstance:

• The price of natural gas is determined by the pricing policy of the main suppliers Russia and Turkmenistan. A change in whole sale price influences the gas price (and consequently the electricity price) the factories are paying. The gas is distributed by NaftoHaz Ukrainiy which is owned by the Ukrainian state.

• The price of grid electricity is determined by either independent supplier or the National Energy Regulatory Committee which is under direct governmental control. See Annex VII for a more detailed description of the structure of the electricity sector of Ukraine;

• The electricity sector is in an ongoing restructuring and privatization process. On the long-term the energy prices will increase in Ukraine, but given the above mentioned factors it is difficult to predict the short- and mid-term developments. The associated uncertainty is a barrier for the factories to make an investment decision in the near term. Legislation As described in paragraph 5.1.2 the Ukrainian government is currently discussing a draft law to promote cogeneration in Ukraine. One of the benefits of this law would be the privilege to purchase natural gas for a lower price. However this law has not been adopted and it is unclear how such a privilege would be implemented in practise.

5.3.2. Sub-step 3b: Explanation that barrier would not prevent implementation of the other alternatives

Equity The other alternatives would not involve a large one-time investment. Energy price developments The uncertainty of energy prices developments also applies to the other projects, but they do not involve a large one-time investment. Legislation The alternatives other than the proposed project activity are not eligible for the Cogeneration Law.

5.4. Step 4: Common practice analysis


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5.4.1. Sub-step 4a: Analysis of other activities similar to the proposed project activity

The energy infrastructure of Ukraine is based on the philosophy of the Soviet era. This means that generation of heat and electricity is heavily centralized. In dense populated areas electricity and heat are centrally generated and distributed through the national and regional grid and the regional District Heating system. In Ukraine only 8% of the electricity is generated using large CHP plants, which is relatively low compared to other CEE countries. As a result the (carbon) efficiency of electricity generation is fairly low2. Larger factories would have CHP units up to 50 MWel to supply large quantities of electricity and heat. Often, the abundant heat is fed into the DH-system. Smaller factories that need steam for their production facility have often on-site heat-only boilers. As a result of the centralize philosophy of the Soviet era, small scale cogeneration (up to 3 MWel), is hardly observed in Ukraine. However, due to the inefficiencies in the electricity production, the potential for energy savings is large. The Ukrainian government would like to promote small scale cogeneration and the parliament is currently discussing a draft law as described earlier in paragraph 5.1.2. The main bottleneck for small-scale cogeneration is the Ukrainian investment climate and the often weak financial basis of these smaller factories. To our knowledge only a couple of small scale cogeneration plants have been installed in the past five years with an installed capacity of less than 20 MW. Small scale cogeneration based on gas turbine technology therefore can not be considered common practise in Ukraine.

5.4.2. Sub-step 4b: Discussion of similar options that are occurring Since similar project activities are not widely observed, this sub-step is not applicable.

5.5. Step 5: Impact of JI registration The incentive of the JI project active will be in the form of an Emission Reduction Purchasing Agreement (ERPA) under the ERUPT 5 programme. An ERPA under ERUPT 5 will fix the amount of emission reductions, the price for one emission reductions and the payments conditions and are as follows:

• A pre-payment of 50% of the value of the Emission Reductions generated in 2008-2012.;

• The remaining 50% will be annually paid upon generation of the Emission Reductions generated in 2008-2012;

• 100% of the value of Emission Reductions generated up to 2007 upon transfer of the corresponding AAUs. Payment of these Emission Reductions are expected in the course of 2008;

2 Further information about DH-system and CHP plants can be obtained from the study: “Ukraine: Market Potential for District Heating Projects in the Ukraine and their Modernization with Austrian Technology” of the Austrian Energy Agency, dated October 2004).


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For the purpose of demonstrating the impact of JI revenue, a price of 5 Euro has been taken. The JI revenue will have the following impact on the project:

Project Indicator Unit Without JI With JI +/- Discounted

payback time Years 3.8 3.3 - 0.5 HekroPET Equity capital

required Euro 2,558,000 2,239,051 - 318,949

Discounted payback time Years 4.03 3.52 - 0.51 Medical

Glass Equity capital required Euro 960,000 835,000 -125,000

Discounted payback time Years 3.35 2.96 -0.39

Demitex Equity capital required Euro 902,295 765,295 -137,000

Discounted Payback time Years 5.52 4.45 -1.07

Tornado Equity capital required Euro 899,237 799,737 -99,500

Discounted Payback time Years 4.94 3.42 -1.52

NORD Equity capital required Euro 2,970,600 2,398,100 -572,500

5.5.1. Step 5a: Impact on the payback time

Thanks to the JI revenue, the project discounted payback time has been reduced and brings the project within reach of obtaining financing.

5.5.2. Step 5b: Impact on the identified barrier Equity Financing Thanks to the JI revenues partial pre-payment during the first two project years, the project now needs less equity financing.

Price uncertainty Fluctuations in the price of the main energy carriers will have its impact on the project, but thanks to the JI incentive the project is less dependent on price fluctuations.

5.6. Conclusion The JI incentive leads to a reduction of the pay back time, reduces the required equity capital, and reduces the sensitivity of the project to energy price fluctuations. These three factors have a significant impact on the decision making process. The JI incentive has in addition the following effects:


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- The involvement of the Netherlands’ government as an off-taker of the JI credits gives additional comfort to both the project partner and the financier;

- The international character of the JI transaction gives the project a higher priority compared to other investments, both within the factories as with financiers;

- The application process of ERUPT has a strict timeline disciplining the decision making process in a positive way;

The above mentioned impact of JI leads to the conclusion the proposed project JI activity is additional.


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6. IDENTIFICATION OF THE MOST LIKELY BASELINE

6.1. Construction of the baseline scenario The previous two chapters (Key Factor analysis and Additionality test) describe alternatives for the different projects and the barriers the project faces. From the analysis it can be concluded that continuation of the current situation is the most likely scenario. To calculate the emissions of the baseline scenario the electricity consumption will be split into the compressor-refrigerating component and the remaining electrical needs. Hence the baseline emissions are determined by:

1. Electricity consumption of the compressor-refrigerating machines; 2. The remaining electrical power consumption; 3. The emissions of the on-site boilers;

The quantity of CO2 emissions resulting from electricity consumption can be defined by multiplying the amount of consumed electrical power with the corresponding carbon emission factor of that year. In the baseline study the standardised Carbon Emission Factors of the Operation Guidelines for PDDs have been selected3. The Carbon Emission Factors of electricity consumption reduction has been selected as they include transportation losses. В случае продажи (передачи) избытков электроэнергии, произведенной на CHP, использовался Carbon Emission Factors для генерации электроэнергии.

Years Ukraine Unit 2005 2006 2007 2008 2009 2010 2011 2012

Carbon emission factor for reducing

el. consumption gCO2/kWh 896 876 856 836 816 796 776 756

Carbon emission factor for

generating el. gCO2/kWh 740 725 710 695 680 666 651 636

Table 1: CO2 emission factors of electricity consumption in Ukraine

6.2. Estimation of the baseline emissions The estimation of the annual CO2 emissions by the electric power production in the grid for the plant compressor-refrigerating machine operation BEl1 is defined as follows:

BEl1= ABEC1 * BEFel /1*106 [tCO2 /y] (1)

Where:

- ABEC1 [MWh/y] is the annual electric power consumption for the operation of the compressor-refrigerating machines at the plant;

- BEFel [gCO2/kWh] is the annual baseline emission factor conditioned by electric power that is supplied through the grid.

3 Operational Guidelines for Project Design Documents of Joint implementation Projects, May 2004


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The estimation of the annual CO2 emissions by electric power production in grid for the remaining electrical power needs BEl2 is defined as follows:

BEl2 = ABEC2 * BEFel /1*106 [t CO2 /y] (2) Where:

- ABEC2 [MWh/y] is the annual basic consumption of electric power for the operation of the rest of the equipment;

- BEFel [gCO2/kWh] is the annual baseline emission factor conditioned by electric power that is supplied through the grid.

The estimation of the annual emissions of the boilers BEth [tCO2/y] is defined as follows:

ABNG = ABHEC/eb [TJ/y] (3) BEth = ABNG⋅EFNG [tCO2/y] (4)

Where:

- ABNG [TJ/y] is the annual NG consumption in boilers; ABNG is defined on the basis of thermal energy consumption volume;

- ABHEC [TJ/y] is the annual baseline heat energy consumption; - eb – thermal efficiency of the boiler; - EFNG [tCO2/TJ] is the carbon emission factor of natural gas.

Total baseline emissions:

BEtotal = BEl1 + BEl2 + BEth (5)

The results for each individual project are shown in the following tables. Индивидуальные особенности в конструировании базового сценирия приведены ниже.

6.2.1. HekroPET При конструкции базового сценария для завода HekroPET делались следующие предпосылки: Электроэнергия Потребление электроэнергии заводом HekroPET вследствии реализации проекта не изменится. Объем потребления электроэнергии принят на основании данных по месячному потреблению за последние два года. В 2005 году завод уже закупил дополнительную технологическую линию по производству пэт форм, установленная мощность этой новой линии 5,1 МВт. Предполагаемый режим работы – круглосуточный. Поэтому в расчет базового сценария делалось предположение о увеличении потребляемой мощности на 868 кВт (примерно 50% от установленной мощности) в 2006 году и далее по сравнению с 2004, когда это оборудование еще не работало. Также в конструкции базового сценария в предсказываемом потреблении электроэнергия отдельно выделен тот объем электроэнергии, который будет замещен благодаря производству холода на абсорбционных чилерах (из расчета 0,51 кВтэ/кВтх, см. обоснование в п.2.1).


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Холод Потребность в холоде завода HekroPET вследствии реализации проекта не изменится. Объемы предполагаемого потребления холода в будущем основаны на данных за 2003-2004 годы, плюс поправка на увеличение потребления холода из-за установки дополнительного оборудования по производству пэт-форм. В 2005 году завод уже закупил дополнительную технологическую линию по производству пэт форм, установленная мощность компресионных чилеров по холоду, входящих в комплект этой новой линии 5,1 МВт. Предполагаемый режим работы – круглосуточный. Поэтому в расчет базового сценария делалось предположение о увеличении потребляемой мощности по холоду на 868 кВт (примерно 50% от установленной мощности) в 2006 году и далее по сравнению с 2004, когда это оборудование еще не работало. Table B - Baseline СО2 emissions B

Unit 2006 2007 2008 2009 2010 2011 2012 2008-

2012 Emission factor – EF B1 CO2 EF from gas combustion kton/TJ 0.056 0.0561 0.0561 0.0561 0.0561 0.0561 0.0561 0.0561 B2 CO2 EF from electricity grid in UA gCO2/kWh 876 856 836 816 796 776 756 796

On site energy carrier consumption by HekroPET Plant

B3 Power consumption for the needs of HekroPET Plant, total MWh 64,500 73,420 73,420 73,420 73,420 73,420 73,420 367,100

B4

including power consumption for cold production at compressor-refrigerating machines MWh 18,040 21,032 21,032 21,032 21,032 21,032 21,032 105,160

B5 including power consumption for the rest of power consumers MWh 46,460 52,388 52,388 52,388 52,388 52,388 52,388 261,940

B6 Cool power consumption for the needs of HekroPET Plant, total MWh 35,373 41,239 41,239 41,239 41,239 41,239 41,239 206,196

Emission quantity

B7 Off-site emissions of electric energy from the grid for cold production kton 15.8 18.0 17.6 17.2 16.7 16.3 15.9 83.7

B8

Off-site emissions of elelctric energy consumption from the grid for the rest of consumers kton 40.7 44.8 43.8 42.7 41.7 40.7 39.6 208.5

B9 Total СО2 emissions, baseline scenarios kton 56.5 62.8 61.4 59.9 58.4 57.0 55.5 292.2 B10 Total СО2 emission - monitoring kton 119.3 292.2


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6.2.2. Medical Glass При конструкции базового сценария для завода Medical Glass делались следующие предпосылки: Электроэнергия Потребление электроэнергии заводом Medical Glass вследствии реализации проекта не изменится. Объем потребления электроэнергии принят на основании данных по месячному потреблению за последние два года, с учетом разового роста на 2% в 2005 году по отношению к 2004 (аналогично по теплоэнергии). Это предположение принято на основании стабильного роста объемов выпускаемой продукции и енергопотребления за последние годы, а также запланированного в будущем ввода новых линий по производству ампул из медицинского стекла. Тепловая энергия Потребление тепловой энергии заводом Medical Glass вследствии реализации проекта не изменится, прогнозное потребление тепла для нужд отопления принято на базе данных за потребление газа существующей котельной за 2003-2004 годы. Это вызвано тем, что учет тепла, произведенного собственной котельной, не велся. При пересчете объемов потребленного газа в тепло принимался КПД котельной 89%, теплоемкость газа 9,5 кВтч/нм3. Вследствии запланированной в 2005 году замены устаревшего котла «Братск-1Г» на котел высокоэффективный котел Viessmann Vitoplex 100 с паспортным КПД 94%, в расчете Base Line это учтено (стр.B3). Baseline scenario CO2 emissions "M.Glass" B

Unit 2006 2007 2008 2009 2010 2011 2012 2008-

2012 Emission factor – EF B1 CO2 EF from gas combustion kton/TJ 0.0561 0.0561 0.0561 0.0561 0.0561 0.0561 0.0561 0.0561 B2 CO2 EF from electricity grid in UA gCO2/kWh 876 856 836 816 796 776 756 796 Additional data B3 Boiler efficiency 0.91 0.91 0.91 0.91 0.91 0.91 0.91 0.91

Energy carrier consumption (on site) "Sinapse-Glass"

B4 Electricity consumption MWh 28,032 28,032 28,032 28,032 28,032 28,032 28,032 140,160 B5 Thermal energy consumption MWh 13,500 13,500 13,500 13,500 13,500 13,500 13,500 67,500 Emission quantity

B6 Off-site emissions of electric energy from the grid kton 24.6 24.0 23.4 22.9 22.3 21.8 21.2 111.6

B7 C02 combustion in boilers kton 3.0 3.0 3.0 3.0 3.0 3.0 3.0 15.0 B8 Total СО2 emissions, baseline scenarios kton 27.6 27.0 26.4 25.9 25.3 24.7 24.2 126.5 B9 Total СО2 emission - monitoring kton 54.5 126.5

6.2.3. Demitex При конструкции базового сценария для завода Demitex делались следующие предпосылки: Электроэнергия Потребление электроэнергии заводом Demitex вследствии реализации проекта не изменится. Объем потребления электроэнергии принят на основании данных по месячному потреблению за последние два года. В 2004-2005 году завод уже установил дополнительную технологическую линию по производству пряжи, установленная мощность этой новой линии 1,6 МВт. Предполагаемый режим работы – круглосуточный. Поэтому в расчет базового сценария делалось предположение о увеличении потребляемой мощности на 868 кВт (примерно 50% от установленной мощности) в 2005 году и далее по сравнению с 2004, когда эта линия еще не работала. Тепловая энергия


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Потребление тепловой энергии заводом Demitex вследствии реализации проекта не изменится, прогнозное потребление тепла для нужд отопления принято на базе данных за производство теплоэнергии существующей котельной за 2003-2004 годы. Учитывалось одноразовый рост потребления тепловой энергии на 5% в 2005 году относительно данных 2004 года из-за ввода новых технологических линий и необходимости отапливать дополнительно 2 этажа производственного корпуса. Холод Потребность в холоде завода Demitex вследствии реализации проекта не изменится. На сегодняшний день производственные цеха охлаждаются с помощью 27 кондиционеров, запитанных проточной холодной водой городской системы водоснабжения. При этом из-за слишком высокой температуры холодной воды на входе в кондиционеры (летом 12-15°С), производственные помещения охлаждаются недостаточно, вследствии чего приходилось останавливать производство. Такие остановки происходили последние 3 года (с тех пор как были демонтированы выработавшие ресурс компресионные чилеры) в летние месяцы (июль, август 2003г., июль, часть августа 2004г.). Из-за растущего спроса на продукцию руководством Demitex (они же собственники ТК “Tornado”) было принято однозначное решение об установке холодильной машины (компресионной или абсорбционной) с целью: исключить остановы предприятия из-за высокой температуры в цехах (до 37°С), довести микроклимат на рабочих местах до требуемого, обеспечить возможность ввода и эксплуатации вводимого оборудования, а также исключения затрат на потери проточной холодной воды для кондиционирования, превратив разомкнутый контур в замкнутый. Таким образом, в качестве базового сценария брался вариант использования наиболее энергоэффективного оборудования производства холода на сегодняшнем этапе развития холодильной техники. Технологически этот вариант оказался похожим на проектное решение Торнадо – с помощью компрессиных чилеров типа RTAC-300, пр-ва TRANE. In order to estimate the electricity consumption per 1 kWcold the compressor-refrigerating machine TRANE TRAC 300 has been taken for this purpose. As this machine is the most modern and efficient compressor-refrigerating machine the calculated electricity consumption will be lower than the actual figures. The characteristics of the compressor-refrigerating machine TRANE TRAC 300 are given below: No. Parameter Unit Value Note 1 Refrigerating power kW 1 000 2 Parameters of

cooled water °С 7/12

3 Parameters of cooling water

°С 35.0/28.0

4 Power consumption kWel 370.7 For the compressor drive 5 Specific

consumption of electric power to produce 1kWhcold

kWе/kWhcold 0.37 Excluding auxiliaries, like dry coolers, pumps, etc.

The ratio of electricity specific consumption is 0.37 kWel/kWcold based on the modern energy efficient chiller RTAC 300 by TRANE.


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Объем потребления холода 2003-2004 года был рассчитан исходя из данных о расходе холодной воды за соответсвующие периоды и перепада температур на входе и выходе из кондиционеров. CO2 baseline scenario emissions Demitex B

Unit 2006 2007 2008 2009 2010 2011 2012 2008-


Energy carrier consumption (on site) DEMITEX

B4 Total electricity consumption MWh 42,932 42,932 42,932 42,932 42,932 42,932 42,932 214,659

B5



B7 Cold energy consumption for the process needs of DEMITEX MWh 5,940 5,940 5,940 5,940 5,940 5,940 5,940 29,700

B8 Heat energy consumption for DEMITEX MWh 8,424 8,424 8,424 8,424 8,424 8,424 8,424 42,120

Emission quantity


B10




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6.2.4. Tornado При конструкции базового сценария для TK Tornado делались следующие предпосылки: Электроэнергия Потребление электроэнергии TK Tornado вследствии реализации проекта не изменится, за исключением уменьшения потребления электроэнергии на производство холода компрессионными чилерами (после реализации проекта холод будет производиться абсорбционными чилерами без дополнительных затрат электроэнергии). Объем потребления электроэнергии принят на основании данных, предоставленных компанией BOSCO – генеральным проектировщиком TK Tornado. Как было указано в (п.6.2.3), для производства 1 кВтх·ч на запроектированных компресионных чилерах необходимо затратить 0,37 кВтэ·ч электроэнергии. Таким образом в конструкции базового сценария в проектном потребленииэлектроэнергия отдельно выделен тот объем электроэнергии, который будет замещен благодаря производству холода на абсорбционном чилере (из расчета 0,37 кВтэ/кВтх). В течении первого квартала 2006 года ожидается окончание отделочных работ по TK Tornado, полноценная эксплуатация запланирована с мая 2006 года (в течении этих работ необходимо отопленее, кондиционирование и электроэнергия). Для расчетов принято 50% потребление электроэнергии, тепла и холода в течении 2006 года от проектных величин. Тепловая энергия Потребление тепловой энергии принято на базе данных проекта строительства ТК Торнадо, предоставленного генеральным проектировщиком BOSCO. Холод Потребление холода принято на базе данных проекта строительства ТК Торнадо, предоставленного генеральным проектировщиком BOSCO (Приложение 12). Холод (в соответствии с проектом) будет производиться компрессионными чилерами пр-ва TRANE CO2 baseline scenario emissions TC "TORNADO" B

Unit 2006 2007 2008 2009 2010 2011 2012 2008-


Energy carrier consumption (on site) TC "TORNADO"

B4 Total electricity consumption MWh 18,748 19,617 19,617 19,617 19,617 19,617 19,617 98,087

B5



B7 Cold energy consumption for the process needs of TC "TORNADO" MWh 6,480 7,020 7,020 7,020 7,020 7,020 7,020 35,100

B8 Heat energy consumption for TC "TORNADO" MWh 8,878 9,137 9,137 9,137 9,137 9,137 9,137 45,684

Emission quantity


B10



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6.2.5. NORD При конструкции базового сценария для завода NORD делались следующие предпосылки: Электроэнергия Потребление электроэнергии заводом NORD вследствии реализации проекта не изменится. Объем потребления электроэнергии принят на основании данных по месячному потреблению за последние два года. Тепловая энергия Потребление тепловой энергии заводом NORD вследствии реализации проекта не изменится, прогнозное потребление тепла для нужд отопления принято на базе данных за потребление газа существующей котельной за 2003-2004 годы. Это вызвано тем, что учет тепла, произведенного собственной котельной, не велся. При пересчете объемов потребленного газа в тепло принимался КПД котельной 89%, теплоемкость газа 9,5 кВтч/нм3. Учитывалось одноразовый рост потребления тепловой энергии на 10% в 2005 году относительно данных 2004 года из-за ввода новой линии по производству компрессоров для холодильников и необходимости отапливать дополнительный сборочный цех. За последние 5 лет завод демонстрирует резкий рост объемов производства (15-30% за год), и это предположение не является не консервативным. Baseline scenario CO2 emissions - "NORD" B

Unit 2006 2007 2008 2009 2010 2011 2012 2008-


Energy carrier consumption (on site) "NORD"

B4 Electricity consumption MWh 124,830 124,830 124,830 124,830 124,830 124,830 124,830 624,150 B5 Thermal energy consumption MWh 84,480 84,480 84,480 84,480 84,480 84,480 84,480 422,400 Emission quantity

B6 Off-site emissions of electric energy from the grid kton 109.4 106.9 104.4 101.9 99.4 96.9 94.4 496.8



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7. ESTIMATION OF PROJECT EMISSIONS

In order to estimate the CO2 emissions after project implementation (the project emissions) first the estimate activity level of the cogeneration units and absorption-refrigerating machines should be determined. After the activity level has been defined the emissions of the cogeneration unit and of the remaining electricity consumption can be calculated.

7.1. Estimation of the activity level of the cogeneration unit Since the operation of the Cogeneration Plant and absorption-refrigerator requires certain auxiliaries (pumps, coolers, ventilation) that are also power consumers, the proper correction of further calculations has been done regarding the amount of the produced power at the cogeneration plant influenced by the amount of power consumption for its own needs. The following markings are used in further calculations:

- Qf – thermal power of fuel natural gas, kWth; - Qel – electric power of the cogeneration set supplied to HekroPET Plant; it

equals the amount of generated power minus losses for its own needs, kWel; - Qth – cold power provided by the cogeneration set and absorption-refrigerating

machines to HekroPET Plant, kWth. - Qcool – cold power provided by the cogeneration sets and absorption-

refrigerating machines to the factory (where applicable), kWth.

7.1.1. HekroPET The detailed estimation and specification of consumption of the cogeneration plant own needs are given in Annex I. Parameter Unit Value Nominal electric power from the generator terminals of the total CHP

kW 6,082

Calculated electric power of consumers of the plant own needs kW 621 Electric power supplied to HekroPET Plant (Qel) kW 5,461 Nominal thermal power from the heat collector of the total CHP

kW 6,036

Cold energy flow supplied to HekroPET Plant from absorption-refrigerating machines (Qth)

kW 4,000

Natural gas consumption of the total CHP (Qf) kW 14,155 - the same converted in nm3 calorific value 9.5 kWh/nm3 nm3 1,490 The average annual values of the indices are given provided that the operation is 8,200 hours/year. The following equations were applied:

Qfa = Qf * 3.6 * 8,200 / 106, TJ/y

Qela = Qel * 8,200 / 103, MWh

Qtha = Qth * 3.6 * 8,200 / 106, TJ/y


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Qfa , TJ/y Qel

a, MWh/y Qtha, TJ/y

417.86 44,777.5 118.08

7.1.2. Medical Glass Parameter Unit Value

Nominal electric power from the generator terminals of the total CHP

kW 3,159

Calculated electric power of consumers of the plant own needs

kW 107

Electric power supplied to Medical Glass (Qel)

kW 3,052

Nominal thermal power from the heat collector of the total CHP

kW 3,600

Natural gas consumption of the total CHP (Qf)

kW 7,809

- the same converted in nm3 calorific value 9.5 kWh/nm3

nm3 822

We applied the following equations:

Qfa = Qf * 3,6 * 8,200/ 106, TJ/y

Qela = Qel * 8,200/ 103, MWh

Qtha, Qth * 4,500/ 106, TJ/y.

Qf

a , TJ/y Qela, MWh/y Qth

a, TJ/y 1,066,2 123,276 253.9

7.1.3. Demitex

Parameter Unit Value


kW 3,622


kW 212

Electric power supplied to Demitex Plan) (Qel)

kW 3,410

Nominal thermal power from the heat collector of the total CHP

kW 3,616

Cold energy flow supplied to Demitex Plant from absorption-refrigerating machines (Qth)

kW 2,000


kW 8,398

- the same converted in nm3 calorific value 9.5 kWh/Nm3

nm3 884


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The average annual values of the indices are given provided that the operation is 7,200 hours/year. We applied the following equations:

Qfa = Qf * 3,6 * 7 200 / 106, TJ/y

Qela = Qel * 7 200 / 103, MWh

Qfa , TJ/y Qel

a, MWh/y Qtha, TJ/y Qcool

a, TJ/y 380,2 40 858,9 63,2 46,7

7.1.4. Tornado

Parameter Unit Value


kW 2,505


kW 240

Electric power supplied to Tornado (Qel) kW 2,265 Nominal thermal power from the heat collector of the total CHP

kW 2,955

Cold energy flow supplied to Tornado from absorption-refrigerating machines (Qth)

kW 2,000


kW 6,270

- the same converted in nm3 calorific value 9.5 kWh/Nm3

nm3 660

The average annual values of the indices are given provided that the operation is 7,200 hours/year. We applied the following equations:

Qfa = Qf * 3,6 * 7 200 / 106, TJ/y

Qela = Qel * 7 200 / 103, MWh

Qf


a, TJ/y Qcoola, TJ/y

380,2 40 858,9 63,2 46,7

7.1.5. Nord Parameter Unit Value


kW 12,164


kW 183

Electric power supplied to NORD (Qel) kW 11,981 Nominal thermal power from the heat kW 12,072


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collector of the total CHP Natural gas consumption of the total CHP (Qf)

kW 28,310

- the same converted in nm3 calorific value 9.5 kWh/nm3

nm3 2,980

We applied the following equations:

Qfa = Qf * 3,6 * 8,200/ 106, TJ/y

Qela = Qel * 8,200/ 103, MWh

Qtha, Qth * 4,500/ 106, TJ/y.

Qf


a, TJ/y 1,066,2 123,276 253.9

7.2. Emissions of the Cogeneration plant The annual gas energy consumption by the cogeneration set, AECng, is:

AECng = EIRCHP * AOH * 3.6 /106 [TJ/y] (4) Where:

- EIRCHP [GJ/h] is the energy of natural gas consumed by the cogeneration set;

- AOH [h/y] is the annual operation hours.

CO2 emissions produced on site and caused by natural gas application in the cogeneration set (PECHP) are:

PECHP = AECng * EFng (5)

7.3. Emissions of electricity consumption of compressor-refrigerators

CO2 emissions produced off site and caused by electric power consumption from the grid for the operation of compressor-refrigerating machines PE grid CCM are:

PE grid CCM = Ael1 * BEFел (6)

Where: - Ael1 [MWh/y] is the annual basic consumption of electric power for the

compressor-refrigerating machine operation that cover additional demand of cold energy;

- BEFel [gCO2/kWh] is the annual baseline emission factor conditioned by electric power that is supplied through the grid;

7.4. Emission of electricity consumption of remain power needs

CO2 emissions produced off site and conditioned by electric power consumption from the grid for the operation of the rest of the plant equipment – PEgridEq:


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PEgridEq = Ael2 * BEFеl (7)

Where: - Ael2 [MWh/y] is the annual basic consumption of electric power for the

operation of the rest of the plant equipment that cover additional demand of electric power;

- BEFel [gCO2/kWh] is the annual emission factor conditioned by electric power that is supplied through the grid.

7.5. Emissions of boilers CO2 emissions produced on-site according to the project boundaries and caused by natural gas combustion in boilers (PEbb).

PEbb = BBEC * EFng (8)

where: - BBEC [TJ/y] back up boilers energy consumption; - BBEC [TJ/y] = BBH/eb,; - BBH [TJ/y] thermal energy production in boilers,

7.6. Total CO2 emissions after project implementation The total emissions after project implementation are determined by the following equation:

PEtotal = PECHP + PE gridCCM + PEgridEq + PEBB [t CO2/y] (8) The resulting emissions after project implementation are given in the following tables below:


Page 75

7.6.1. HekroPET Table P - expected project СО2 emissions P

Unit 2006 2007 2008 2009 2010 2011 2012 2008-

12 Emission factor – EF P1 CO2 EF from gas combustion kton/TJ 0.0561 0.0561 0.0561 0.0561 0.0561 0.0561 0.0561 0.0561 P2 CO2 EF from electricity grid in UA gCO2/kWh 876 856 836 816 796 776 756 796

NG fuel consumption in the project boundaries

P3 NG combustion at the CHP TJ 208.9 417.9 417.9 417.9 417.9 417.9 417.9 2,089.3 Power generation

P4 Electric power quantity supplied to the plant from the CHP MWh 22,388 44,777 44,777 44,777 44,777 44,777 44,777 223,883

Cold production

P5

Cold energy quantity supplied to HekroPET Plant from the CHP and absorption-refrigerating machines MWh 16,400 32,800 32,800 32,800 32,800 32,800 32,800 164,000

P6

Electric power quantity the consumption from the grid by HekroPET Plant of which is replaced due to the cold supply from absorption chillers MWh 8,364 16,728 16,728 16,728 16,728 16,728 16,728 83,640

Electric power consumption from the grid

P7

Electric power consumption from the grid by compressor-refrigerating machines in order to cover the rest of cold demand of HekroPET Plant MWh 9,676 4,304 4,304 4,304 4,304 4,304 4,304 21,520

P8

Electric energy consumption from the grid in order to cover the rest of power demand of HekroPET Plant MWh 24,072 7,611 7,611 7,611 7,611 7,611 7,611 38,057

Direct on-site СО2 emissions

P9 Direct on-site СО2 emission from natural gas combustion at the CHP kton 11.7 23.4 23.4 23.4 23.4 23.4 23.4 117.2

Direct off-site СО2 emissions

P10

Direct off-site СО2 emissions from electric energy consumption from the grid for the needs of compressor-refrigerating machines kton 8.5 3.7 3.6 3.5 3.4 3.3 3.3 17.1

P11

Direct off-site СО2 emissions from the elelctric energy consumption from the grid for the demand of the rest of HekroPET Plant equipment kton 21.1 6.5 6.4 6.2 6.1 5.9 5.8 30.3

P12 Total СО2 emission reductions kton 41.3 33.6 33.4 33.2 32.9 32.7 32.4 164.6 P13 Total СО2 emissions - monitoring kton 74.9 164.6

7.6.2. Medical Glass Anticipated project СО2 emissions "M.Glass" P

Unit 2006 2007 2008 2009 2010 2011 2012 2008-

12 Emission factor – EF P1 CO2 EF from gas combustion

kton/TJ 0.056

1 0.056

1 0.056

1 0.056

1 0.056

1 0.056

1 0.056

1 0.0561

P2 CO2 EF from electricity grid in UA

gCO2/kWh 876 856 836 816 796 776 756 796


P3 NG combustion at the CHP TJ 230.5 230.5 230.5 230.5 230.5 230.5 230.5 1,153 P4 NG combustion in back up boilers TJ 0 0 0 0 0 0 0 0

Power and heat production by the CHP

P5 Power supplied from the CHP

MWh 25,02

8 25,02

8 25,02

8 25,02

8 25,02

8 25,02

8 25,02

8 125,14

2

P6 Heat supplied from the CHP

MWh 13,50

0 13,50

0 13,50

0 13,50

0 13,50

0 13,50

0 13,50

0 67,500

Heat production in the back up boilers

P7 Heat supplied from the back up boilers MWh 0 0 0 0 0 0 0 0


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P8 Back up boiler efficiency 0.91 0.91 0.91 0.91 0.91 0.91 0.91 0.91

Electricity consumption from the grid

P9

Electricity consumtpion from the grid to cover the rest of electricity needs of "Medical Glass" MWh 3,004 3,004 3,004 3,004 3,004 3,004 3,004 15,018

Direct on-site СО2 emissions P10

Direct on-site СО2 emission from natural gas combustion at the CHP kton 12.9 12.9 12.9 12.9 12.9 12.9 12.9 64.7

P12

Direct on-site СО2 emissions from NG combustion in back up boilers kton 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


P14

Direct off-site СО2 emissions from electricity consumption from the grid for the needs of PZ "Medical Glass" kton 2.6 2.6 2.5 2.5 2.4 2.3 2.3 12.0

P15 Total СО2 emission reductions kton 15.6 15.5 15.4 15.4 15.3 15.3 15.2 76.6 P16

Total СО2 emissions - monitoring kton 31.1 76.6

7.6.3. Demitex Anticipated project СО2 emissions "Demitex" P

Unit 2006 2007 2008 2009 2010 2011 2012 2008-



P3 NG combustion at the CHP TJ 217.7 217.7 217.7 217.7 217.7 217.7 217.7 1,088.4 P4 NG combustion at back up boilers TJ 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Electricity and heat generation by the CHP

P5 Electricity supplied from the CHP MWh 24,554 24,554 24,554 24,554 24,554 24,554 24,554 122,769 P6 Heat supplied from the CHP MWh 8,424 8,424 8,424 8,424 8,424 8,424 8,424 42,120 Cold production

P7 Cold energy supplied to DEMITEX from the CHP and absorption chillers MWh 5,940 5,940 5,940 5,940 5,940 5,940 5,940 29,700

P8 Electricity replaced due to the cold generation by the absorption chillers MWh 2,198 2,198 2,198 2,198 2,198 2,198 2,198 10,989


P9

Electricity consumption from the grid by compressor refrigerating machines to cover the rest of cold needs of DEMITEX MWh 0 0 0 0 0 0 0 12,987

P10

Electricity consumption from the grid to cover the rest of electricity needs of DEMITEX MWh 16,180 16,180 16,180 16,180 16,180 16,180 16,180 166,001



P12 Direct on-site СО2 emissions from the NG combustion at back up boilers kton 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


P13


P14

Direct off-site СО2 emissions from electricity consumption from the grid for the rest of needs of DEMITEX equipment kton 14.2 13.9 13.5 13.2 12.9 12.6 12.2 132.1



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7.6.4. Tornado Anticipated project СО2 emissions TC "TORNADO" P

Unit 2006 2007 2008 2009 2010 2011 2012 2008-



P3 NG combustion at the CHP TJ 162.5 162.5 162.5 162.5 162.5 162.5 162.5 812.6 P4 NG combustion at back up boilers TJ 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Electricity and heat generation by the CHP P5 Electricity supplied from the CHP MWh 16,305 16,305 16,305 16,305 16,305 16,305 16,305 81,526 P6 Heat supplied from the CHP MWh 8,878 9,137 9,137 9,137 9,137 9,137 9,137 45,684 Cold production

P7 Cold energy supplied to TC "TORNADO" from the CHP and absorption chillers MWh 6,480 7,020 7,020 7,020 7,020 7,020 7,020 35,100

P8 Electricity replaced due to the cold generation by the absorption chillers MWh 2,398 2,597 2,597 2,597 2,597 2,597 2,597 12,987


P9

Electricity consumption from the grid by compressor refrigerating machines to cover the rest of cold needs of TC "TORNADO" MWh 0 0 0 0 0 0 0 10,989

P10

Electricity consumption from the grid to cover the rest of electricity needs of TC "TORNADO" MWh 45 715 715 715 715 715 715 207,244



P12 Direct on-site СО2 emissions from the NG combustion at back up boilers kton 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


P13


P14

Direct off-site СО2 emissions from electricity consumption from the grid for the rest of needs of TC "TORNADO" equipment kton 0.0 0.6 0.6 0.6 0.6 0.6 0.5 165.0



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7.6.5. NORD Anticipated project СО2 emissions "NORD" P

Unit 2006 2007 2008 2009 2010 2011 2012 2008-



P3 NG combustion at the CHP TJ 835.7 835.7 835.7 835.7 835.7 835.7 835.7 4,179 P4 NG combustion in back up boilers TJ 38 38 38 38 38 38 38 191

Power and heat production by the CHP

P5 Power supplied from the CHP MWh 98,247 98,247 98,247 98,247 98,247 98,247 98,247 491,237 P6 Heat supplied from the CHP MWh 74,846 74,846 74,846 74,846 74,846 74,846 74,846 374,232

Heat production in the back up boilers

P7 Heat supplied from the back up boilers MWh 9,634 9,634 9,634 9,634 9,634 9,634 9,634 48,168 P8 Back up boiler efficiency 0.91 0.91 0.91 0.91 0.91 0.91 0.91 0.91


P9

Electricity consumtpion from the grid to cover the rest of electricity needs of "NORD" MWh 26,583 26,583 26,583 26,583 26,583 26,583 26,583 132,913



P12 Direct on-site СО2 emissions from NG combustion in back up boilers kton 2.1 2.1 2.1 2.1 2.1 2.1 2.1 10.7


P14

Direct off-site СО2 emissions from electricity consumption from the grid for the needs of "NORD" kton 23.3 22.8 22.2 21.7 21.2 20.6 20.1 105.8

P15 Total СО2 emission kton 72.3 71.8 71.2 70.7 70.2 69.6 69.1 350.9 P16 Total СО2 emissions - monitoring kton 144.1 350.9


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8. ESTIMATION OF EMISSION REDUCTIONS

The emission reductions are calculated by taking the difference between the total level of CO2 emissions of the baseline and the total quantity of CO2 emissions after project implementation:

ER = BEtotal - PEtotal [tCO2/y] (9) The CO2 emission reduction from the project activity is given in the tables below.

8.1. HekroPET Expected СО2 emission reduction R

Unit 2006 2007 2008 2009 2010 2011 2012 2008-

2012 R1 Electric energy and cold production

at the CHP and absorption chillers kton 11.7 23.4 23.4 23.4 23.4 23.4 23.4 117.2

R2 Electric energy replacement from the grid due to cold supply kton 7.3 14.3 14.0 13.7 13.3 13.0 12.6 66.6

R3

Electric energy replacement from the grid due to power supply from the CHP kton 19.6 38.3 37.4 36.5 35.6 34.7 33.9 178.2

R4 Total СО2 emission reductions kton 15.2 29.2 28.0 26.7 25.5 24.3 23.1 127.6 R5 Total СО2 emissions - monitoring kton 44.4 127.6

8.2. Medical Glass Expected СО2 emission reduction "M.Glass" R

Unit 2006 2007 2008 2009 2010 2011 2012 2008-

2012 R1 NG combustion for power and heat

production at the CHP kton 12.9 12.9 12.9 12.9 12.9 12.9 12.9 64.7 R2 NG combustion for heat production at

the boilers kton 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

R3

Electricity replacement from the grid due to the electricity supply from the CHP kton 21.9 21.4 20.9 20.4 19.9 19.4 18.9 99.6

R4 Boiler heat energy production replacement by heat from the CHP kton 3.0 3.0 3.0 3.0 3.0 3.0 3.0 15.0



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8.3. Demitex Expected СО2 emission reduction "Demitex" R

Unit 2006 2007 2008 2009 2010 2011 2012 2008-

2012 R1 NG combustion for electricity and cold

generation at the CHP and absorption chillers kton 12.2 12.2 12.2 12.2 12.2 12.2 12.2 106.6

R2 NG combustion for heat production by boilers kton 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

R3 Electricity replacement from the grid due to cold supply kton 1.9 1.9 1.8 1.8 1.7 1.7 1.7 19.1

R4 Electricity replacement from the grid due to electricity supply from the CHP kton 21.5 21.0 20.5 20.0 19.5 19.1 18.6 162.6

R5 Boiler heat production replacement by the heat from the CHP kton 1.9 1.9 1.9 1.9 1.9 1.9 1.9 19.5


8.4. Tornado Expected СО2 emission reduction TC "Tornado" R

Unit 2006 2007 2008 2009 2010 2011 2012 2008-

2012 R1 NG combustion for electricity and cold

generation at the CHP and absorption chillers kton 9.1 9.1 9.1 9.1 9.1 9.1 9.1 106.6

R2 NG combustion for heat production by boilers kton 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

R3 Electricity replacement from the grid due to cold supply kton 2.1 2.2 2.2 2.1 2.1 2.0 2.0 19.1

R4 Electricity replacement from the grid due to electricity supply from the CHP kton 14.3 14.0 13.6 13.3 13.0 12.7 12.3 162.6

R5 Boiler heat production replacement by the heat from the CHP kton 2.0 2.0 2.0 2.0 2.0 2.0 2.0 19.5


8.5. NORD Expected СО2 emission reduction "NORD" R

Unit 2006 2007 2008 2009 2010 2011 2012 2008-

2012 R1 NG combustion for power and heat

production at the CHP kton 46.9 46.9 46.9 46.9 46.9 46.9 46.9 234.4 R2 NG combustion for heat production at

the boilers kton 2.1 2.1 2.1 2.1 2.1 2.1 2.1 10.7

R3

Electricity replacement from the grid due to the electricity supply from the CHP kton 86.1 84.1 82.1 80.2 78.2 76.2 74.3 391.0

R4 Boiler heat energy production replacement by heat from the CHP kton 16.6 16.6 16.6 16.6 16.6 16.6 16.6 83.1



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8.6. Total estimated Emission Reductions The total estimated amount of Emission Reductions of the portfolio project is:

- 217,100 AAUs - 501,100 ERUs

8.7. Influence of uncertainty level of the single parameter Во-первых, проект включает портфолио из 5 отдельных объектов, и ошибка в оценке одного параметра в одном из объектов окажет не столь сильное влияние на весь проект. Так, самый большой по экономии выбросов объект – NORD, составляет около 40% от всей экономии выбросов СО2 – т.о. воздействие отклонения одного параметра на общий результат будет ослаблено более, чем в два раза. Во-вторых, наиболее подверженные флуктациям параметры – это объемы потребления электроэнергии, тепла и холода объектами. При этом наиболее опасны флуктации объемов потребления электроэнергии – экономия выбросов СО2 по электроэнергии занимает около 2/3 от всей экономии выбросов. В таком случае, если уменьшение внутреннего потребления электроэнергии произойдет, избытки генерации электроэнергии будут проданы в сеть. В данной методологии мониторинга такой вариант предусмотрен. Это позволяет сделать вывод о еще большем ослаблении флуктуации параметров энергопотребления на общий результат. Т.о. наиболее опасна флуктуация изменения объема потребления электроэнергии на самом крупном объекте – NORD. При этом уменьшение потребления электроэнергии на 10% приведет к сокращению экономии СО2 на объекте NORD на 0,8 тыс. т.СО2 за 1 год (2010) либо около 0,83% в год по всему портфолио.


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9. MONITORING PLAN

9.1. Monitoring methodology

9.1.1. Brief description of the methodology This project covers the system operating due to natural gas combustion at the cogeneration set for an industrial enterprise where electric, heat, and (or) cold energy were produced separately. The Monitoring and Verification Plans are based on the registration of natural gas used at cogeneration sets in order to produce electric energy for the enterprise and to produce thermal energy coming into the absorption refrigerating machine for cold energy production and (or) for heating in winter period. The data will be collected monthly on the basis of the project validity period and crediting period 2006-2012. CO2 emissions after the project commissioning are defined according to the verified parameters stated above. The monitoring plan describes the procedure of data collection and project requirement revisions in order to define and check emission reductions achieved due to the project. For the specific consideration of the project a monitoring model has been developed in this Project Design Documentation (PDD). It is prepared in excel format in the form of spreadsheets as shown in Annex VIII-X. The monitoring model takes checked input data and automatically calculates project and basic emissions per each year after the project implementation in a dynamic manner. As stated before basic emissions are emissions substituted due to the electric and heat (cold) energy production by the cogeneration system. The model executes the electronic monitoring of CO2 and the calculation of worksheets for the package of cogeneration projects. Electronic worksheets serve as control data and analysis systems for the project managers and operators and they can be used everywhere during the project validity. The personnel responsible for the project monitoring are to execute electronic worksheets monthly. The model automatically provides annual quantitative summarizing in the terms of GHG reductions achieved due to the cogeneration system application.

9.1.2. Assumptions used during the methodology preparation: The monitoring methodology and its application are compatible with the basic methodology and basic scenario of development for this project type. The assumption as per the heating value and fuel emission factors are the same in each case and constant during the whole project. These factors are country specific and included into the list of the project design documentation (PDD).

9.2. Potential strong and weak points of this methodology Based on the fact that at present there is no methodology approved by the UNFCCC that is designed for this project type, the weak and strong points of the methodology should be estimated on their own advantages. The strong point of the methodology is:


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- Simplicity and convenience, basis on the data collected at the construction site in order to measure and bill electric, heat and(or) cold energy from the cogeneration system and electric power form the grid;

- The total compatibility with the calculation of basic emissions. Basic emissions are automatically defined in the model in the spreadsheet based on continuous control of electric, heat and(or) cold energy from the cogeneration system and periodic measurements of compressor-refrigerating machine and boilers efficiency.

- The model allows calculating CO2 emission reductions taking into consideration the above-mentioned assumptions.

There aren’t any known weak points of the methodology. The monitoring model is given in Annex VIII-X.

9.3. Action plan in case of measuring device failure In order to fulfill correct calculations of СО2 reduction, this methodology requires correct data by all measuring devices; otherwise there will be no possibility to execute a correct calculation of the baseline and project scenario. The only exception is the data used for efficiency computation of the existing equipment (back up boilers and compressor chillers). In case of temporary fails of measuring devices applied to measure the efficiency of back up boilers (gas and heat meter) or compression chillers (heat and electricity meter), during the failure removal they will use the efficiency of back up boilers on the level of 94%; and also minimal factor of electricity specific consumption, which is fixed in the previous periods for HekroPET. In case of absence of the data on NG heating value (LHV), which are to be presented by the gas supplier’s laboratory every month, they use the LHV for the previous month. In case of temporary impossibility to execute measurements of other values, it is offered to subtract the values of daily measurements of all fixed monthly values for the days when any measuring device was faulty. Electronic computing units of heat, gas and electricity meters have archives of measured values in days that allows executing such correction manually. In case of execution of such correction the monthly reports should be enclosed with a printout of values of all measuring devices indicating the day and period of the monitoring system failure.

9.4. Monitoring plan of HekroPET

9.4.1. Monitored values Considering the project boundary, the following data need to be monitored in order to estimate project and baseline emissions, and emissions reductions:

• Natural gas used by the cogeneration plant, nm3; • Low heating value of gas, kkal / nm3

• Electric power production by the CHP, MWh • Electric power consumption by the CHP’s auxiliaries, MWh • Exchanged electricity with the power grid (‘+’ consumption; ‘-‘ export) , MWh

• Cold energy produced by the cogeneration system & abs. chillers, MWh • Cold energy produced by the compressor-refrigerating machines, MWh


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• Electric power consumption by compressor-refrigerating machines, MWh


Page 85

No. Data type Data variable Unit

Measured (m), calculated (c), estimated (e)

Record frequency

Selection for control

Archive method

(electronic/paper)

Term of archive keeping

1 Consumed gas volume VNG Nm3 m month 100% paper

electronic

paper 1 year

electronic 7 years

2

Electric power production by

the cogeneration system

ECHP MWh m month 100% paper electronic

paper 1 year

electronic 7 years

3

Electric power consumption by

the CHP’s auxiliaries

EAUX MWh m month 100% paper electronic

paper 1 year

electronic 7 years

4

Cold energy produced by the

cogeneration system & abs.

chillers

QABS.CHILLED MWh m month 100% paper electronic

electronic 7 years

5


compressor-refrigerating

machines

QCOM.CHILLED MWh m month 100% paper electronic

paper 1 year

electronic 7 years

6


compressor-refrigerating

machines

ECOM MWh m month 100% paper electronic

paper 1 year

electronic 7 years

7 Low heating value of gas LVH Kkal /

Nm3

m (by supplier’s labaratory)

month 100% paper electronic

paper 1 year

electronic 7 years

8 Exchange

electric power with grid

Eg MWh m month 100% paper electronic

paper 1 year

electronic 7 years

Table 1: Data to be collected


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The diagram below shows the location of measuring devices, which will collect necessary data.

9.4.2. Measuring devices Responsibility boundaries The general designer SIC “Sinapse” is responsible for the proper projecting of measurement execution by the monitoring plan at the stage of working document completion. This PDD states only types of meters and places of their installation; the selection of primary measuring devices (current and voltage transformers, diameters of flow-measuring sections) is executed at the stage of working document completion. The following persons are responsible for the proper operation of measuring devices applied in the monitoring plan for this project partner (of heat, gas and electricity meters), and also for the execution of timely checks and regular measuring of values: from side of the HekroPET Plant Chief Power Engineer Yukhnovskiy Mikhail Yurievich, from side of SIC “Sinapse” Head of Service Department of Gas Reciprocating Sets Tregub Evgeniy Petrovich. Heat measurement Heat is measured using a two channel ultrasonic heat and water meter Sempal SVTU-10M (Web: www.sempal.com). Heat and water meter SVTU-10M is designed to measure supplied or consumed heat, heat carrier volume, heat carrier temperature in forward and return pipelines, and also to measure heat carrier mass (mass consumption). The accuracy class during heat measurement (in calculation variation interval of water consumption) is 2.5.


Abs. chillerLT 60s


Abs. chillerLT 60s

BoilersVitoplex300

Plant HekroPETsite boundary




Electricity from"Hmelnitskoblenergo",10kV

Compr. chillersRPNxx, RPWxx



heat 96/70 gr.C

cool 7/10 gr.C

Natural Gas



3031 kW kV, 10

3031 kW kV, 10

Watt-hour meters, type CTK3

Existing watt-hour meters, for commercial calculation

Heat meters, type SVTU-10M

Natural gas meter,type Junior Sonic


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The meter standard size (diameter of the flow-measuring section) is defined at the projecting stage. This project applies 3 heat and water meters, i.e. one measures heat supplied from the cogeneration plant manifold with the parameters of 96/70°С (only for chillers operation control), the other measures cold at the outlet of the absorption-refrigerating machines with the parameters of 7/12°С, and the third measures cold produced by compressor-refrigerating machines. The verification periodicity of heat meters (according to Ukrainian regulations for commercial accounting of heat carriers) is 2 years. This meter type has 2-year archive with an hourly measurement of values of heat power, heat energy, forward and return temperature, water consumption. The electronic unit of the meter allow remote measuring of values via the dial-up connection. Gas consumption measurement Natural gas consumption is measured using an ultrasonic gas flow meter JuniorSonic produced by Emerson (http://www.daniel.com/products/gas/usonic/juniorsonic/productdetail.htm). The gas flow meter is installed on the section of the plant gas main to the cogeneration module and is designed for the technical record of gas. This type of flow meters is characterized by high reliability, absence of movable parts, low air resistance. The electronic measuring unit allows performing automatic correction of the measurement results of temperature, pressure, and also recording the measurements and integrating into the unified system of the plant control. The accuracy class during the gas flow measurement in the range of 370…1500 m3 (possible range of gas flow at the operation of 2 CHP modules JMS-620) is 1.0. The meter standard size (diameter of the flow-measuring section) is defined at the projecting stage. The verification periodicity of gas meters (according to Ukrainian regulations for gas commercial accounting) is 2 years. This meter type has an archive with an hourly measurement of gas flow values. Power measurement In this project the power produced at the cogeneration plant is consumed exclusively for the needs of HekroPET Plant. Thus it is technologically possible to sell the electricity surplus produced at the CHP via the public grid to other enterprises. The quantity of active electric power supplied from the generator buses 6 (10) kV is measured by the СТК3 electronic meter of active energy produced by LLC “TELEKART-PRYLAD”. In order to calculate the useful electricity produced at the CHP, they use electricity consumption for the auxiliaries of the CHP. The quantity of active and reactive energy consumed for the own need of the Cogeneration Plant including the absorption-refrigerating machine is measured by the same meter (CTK3). The meter is installed on the line 0.4 kV that is built for the own needs of the Cogeneration Plant. The same counter is installed in the refrigerating workshop to measure active electric power consumed by compressor-refrigerating machines. The type of measuring current and voltage transformers for electricity meter is defined at the projecting stage; the accuracy class of the electricity meter is no less than 1.0. The periodicity of metrological checks is accepted as for commercial accounting meters (no less than once in 3 years).


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In order to measure electricity overflows between the HekroPET Plant and public grid (both consumption from the grid and transfer of power surplus to the grid are possible), they use devices of commercial accounting that are on the balance of electricity supplier enterprise “Hmelnitskoblenergo”. During the project execution due to the significant character change of energy overflow between the plant and public grid, there may arise the necessity to replace this measuring device, the type of which will be defined at the projecting stage. According to requirements of the Ukrainian legislation the devices of electricity commercial accounting should have the accuracy class no less than 1.0 and be verified no less than once in 5 years.

9.4.3. Determining procedure of baseline and project emissions Baseline scenario for cold The baseline states that cold is produced by compression chillers due to electricity consumption; the project line provides its production by compression and absorption chillers (without consumption of additional electricity). Consequently due to cold production by absorption chillers one substitutes the electricity consumption for cold production. On the basis of measurements of monthly volumes of cold produced by absorption chillers one calculates the quantity of electricity, which would have been consumed for production of the same quantity of cold only by compression chillers. For this they calculate actual specific consumption of electricity for cold production by compression chillers – conversion factor of electricity to cold energy (according to actual measurement data of electricity monthly consumption by compression chillers and according to cold production volume at them). In case if this factor is more than 0.51 kWel/kWcold (that can be caused by not optimal operating mode of the chiller due to its operation in the peaking mode), calculations use the calculation value of the existing electricity consumption for cold production 0.51 kWel/kWcold (see Section 2.1). Consequently one calculates the quantity of substituted electricity due to cold production by absorption chillers. Baseline and project scenario for electricity On the basis of the sum of the electricity produced at the CHP and consumed from the public grid, except for the electricity consumed for auxiliaries of the CHP, one defines the base level of electricity consumption by the HekroPET Plant. This value is added by the quantity of electricity substituted due to cold production by absorption chillers (see passage above). In case if there was the transfer of electricity surplus to the grid, on the basis of the measured value of exported electricity one calculates СО2 emission reductions by multiplying by the correspondent EF (emission factor) for electricity generation. The algorithm (formulae) of the correspondent calculations is given in computation tables of baseline scenario, project scenario and resulting emission reductions given in Annex VIII.

9.5. Monitoring plan of Medical Glass, Nord Projects Nord and Medical Glass from the point of view of their monitoring plan are practically identical, so if not mentioned separately, these instructions are applied for both projects.


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• Heat energy produced by the cogeneration system, MWh • Heat energy produced by the back up boilers, MWh • Natural gas used by the back up boilers, nm3;



Record frequency


Archive method

(electronic/paper)


1 Consumed gas volume by CHP VCHP_NG Nm3 m month 100% paper

electronic

paper 1 year

electronic 7 years

Consumed gas

volume by back up boilers

VBB_NG Nm3 m month 100% paper electronic

paper 1 year

electronic 7 years

2




paper 1 year

electronic 7 years

3




paper 1 year

electronic 7 years

5 Heat energy

produced by the CHP

QCHP MWh m month 100% paper electronic

paper 1 year

electronic 7 years

6 Heat energy

produced by the back up boilers

QBB MWh m month 100% paper electronic

paper 1 year

electronic 7 years


Nm3


3 month 100% paper electronic

paper 1 year

electronic 7 years

8 Exchange



paper 1 year

electronic 7 years



Page 90

The diagrams below show the location of measuring devices, which will collect necessary data. Medical Glass



B.BoilersVX10100

Plant “Medical Glass”site boundary

CHPproject boundary



Electricity from"Poltavaoblenergo",10&6kV


heat 90/70 gr.C

Natural Gas



1053 kW 10kV,

1053 kW 10kV,

1053 kW 10kV,

6 kV10 kV

T /6 kV10

T /0.4 kV10

existing watt-hour meter's(for commercial calc.)

watt-hour meter'stype CTK3

Heat meterstype STVU-10M

Natural gas meterstype Junior Sonic


Page 91

NORD

9.5.2. Measuring devices Responsibility boundaries The general designer SIC “Sinapse” is responsible for the proper projecting of measurement execution by the monitoring plan at the stage of working document completion. This PDD states only types of meters and places of their installation; the selection of primary measuring devices (current and voltage transformers, diameters of flow-measuring sections) is executed at the stage of working document completion. The following persons are responsible for the proper operation of measuring devices applied in the monitoring plan for this project partner (of heat, gas and electricity meters), and also for the execution of timely checks and regular measuring of values: from side of the NORD Plant Chief Power Engineer Kalinin Vladimir Vasilievich, from side of the Medical Glass Plant Chief Power Engineer Asan H. Kadirov, from side of SIC “Sinapse” Head of Service Department of Gas Reciprocating Sets Tregub Evgeniy Petrovich. Heat measurement Heat is measured using a two channel ultrasonic heat and water meter Sempal SVTU-10M (characteristics, checking intervals are given in p.9.4.2).



B.Boilers4xDKVR-10

Plant “NORD”site boundary

CHPproject boundary



Electricity from"Donetskoblenergo",35kV


heat 115/70 gr.C

Natural Gas





3035 kW kV, 6

3035 kW kV, 6

3035 kW kV, 6

3035 kW kV, 6

35kV

6kV

0.4kV

6kV

T1 35/610MW

T 35/610MW

2




existing watt-hour meter's(for commercial calc.)


Page 92

This project applies 2 heat and water meters, i.e. one measures heat supplied from the cogeneration plant manifold with the parameters of 96/70°С, the other measures heat at the outlet of the back up boilers with the same parameters. Gas consumption measurement Natural gas consumption is measured using two ultrasonic gas flow meters JuniorSonic produced by Emerson (characteristics, checking intervals are given in p.9.4.2). The gas flow meters are installed on the section of the plant gas main to the cogeneration modules and to the back up boilers; and are designed for the technical record of gas. Power measurement In this project the power produced at the cogeneration plant is consumed exclusively for the needs of NORD (Medical Glass) Plant. Thus it is technologically possible to sell the electricity surplus produced at the CHP via the public grid to other enterprises. The quantity of active electric power supplied from the generator buses 10 kV is measured by the СТК3 electronic meter of active energy produced by LLC “TELEKART-PRYLAD” (characteristics, checking intervals are given in p.9.4.2). In order to calculate the useful energy produced at the CHP, one measures electricity consumption for the auxiliaries of the CHP. The quantity of active and reactive energy consumed for the own need of the Cogeneration Plant including the absorption-refrigerating machine is measured by the same meter (CTK3). The meter is installed on the line 0.4 kV that is built for the own needs of the Cogeneration Plant. In order to measure electricity overflows between the NORD (Medical Glass) Plant and public grid (both consumption from the grid and transfer of power surplus to the grid are possible), one uses devices of commercial accounting that are on balance of electricity supplier enterprise “Donetskoblenergo” (“Poltavaoblenergo”). During the project execution due to the significant character change of energy overflows between the plant and public grid there may arise the necessity to replace this measuring device, the type of which will be defined at the projecting stage.

9.5.3. Determining procedure of baseline and project emissions Baseline scenario for heat Heat consumption by the NORD (Medical Glass) Plant due to the project realization is not changed and can be calculated as the sum of heat energy produced by back up boilers and CHP. It is also true in the case if the CHP produces surplus heat energy, since the surplus heat energy will be obligatorily removed via the emergency cooling system (dry coolers) and will not be accounted by the heat energy meter. Baseline and project scenario for electricity On the basis of the sum of the electricity produced at the CHP and consumed from the public grid, except for electricity consumed for auxiliaries of the CHP, one can define the base level of electricity consumption by the NORD (“Medical Glass”) Plant. In case if the energy surplus was given to the grid, on the basis of the measured value of exported energy one calculates СО2 emission reductions by multiplying by the correspondent EF (emission factor) for electricity generation.


Page 93

The algorithm (formulae) of correspondent calculations is given in the computation tables of baseline scenario, project scenario and resulting emission reductions given in Annex IX.

9.6. Monitoring plan of Demitex, Tornado Projects Demitex and Tornado from the point of view of their monitoring plan are practically identical, so if not mentioned separately, these instructions are applied to both projects.




• Heat energy produced by the cogeneration system, MWh • Heat energy produced by the back up boilers, MWh • Natural gas used by the back up boilers, nm3 • Cold energy produced by the cogeneration system & abs. chillers



Record frequency


Archive method

(electronic/paper)


1 Consumed gas volume by CHP VCHP_NG Nm3 m month 100% paper

electronic

paper 1 year

electronic 7 years

Consumed gas

volume by back up boilers

VBB_NG Nm3 m month 100% paper electronic

paper 1 year

electronic 7 years

2




paper 1 year

electronic 7 years

3




paper 1 year

electronic 7 years

4


cogeneration system & abs.

QABS.CHILLED MWh m month 100% paper electronic

electronic 7 years


Page 94

chillers

5 Heat energy

produced by the CHP

QCHP MWh m month 100% paper electronic

paper 1 year

electronic 7 years

6 Heat energy

produced by the back up boilers

QBB MWh m month 100% paper electronic

paper 1 year

electronic 7 years


Nm3


3 month 100% paper electronic

paper 1 year

electronic 7 years

8 Exchange



paper 1 year

electronic 7 years


The diagrams below show the location of measuring devices, which will collect necessary data.


Page 95

Demitex

Tornado


Abs. chillerLT 60s


B.Boilers3xDKVR-4

Plant “Demitex”site boundary




Electricity from"Poltavaoblenergo",6kV




heat 96/70 gr.C

cool 7/10 gr.C

Natural Gas



1811 kW kV, 6

1811 kW kV, 6




Existing watt-hour meter's(for commercial calc.)



Abs. chillerLT 60s


Boiler1xSX10100

TK “TORNADO”site boundary

CHP+abs.chillerproject boundary


NG supply from"Gas Ukraine"P=0,3 MPaDN=150 mm

Electricity from"Dneproenergo",0.4kV


for TK “Tornado” ’scool consumers

for TK “Tornado” ’sheat consumers

heat 96/70 gr.C

cool 7/10 gr.C

Natural Gas


835 kW kV, 0.4

835 kW kV, 0.4


835 , 0.4 kW kV






Page 96

9.6.2. Measuring devices Responsibility boundaries The general designer SIC “Sinapse” is responsible for the proper projecting of measurement execution by the monitoring plan at the stage of working document completion. This PDD states only types of meters and places of their installation; the selection of primary measuring devices (current and voltage transformers, diameters of flow-measuring sections) is executed at the stage of working document completion. The following persons are responsible for the proper operation of measuring devices applied in the monitoring plan for this project partner (of heat, gas and electricity meters), and also for the execution of timely checks and regular measuring of values: from side of the Demitex Plant Chief Power Engineer Kozub Alexandr Ivanovich, from side of TC “Tornado” the person will be determined later, from side of SIC “Sinapse” Head of Service Department of Gas Reciprocating Sets Tregub Evgeniy Petrovich. Heat measurement Heat is measured using a two channel ultrasonic heat and water meter Sempal SVTU-10M (characteristics, checking intervals are given in p.9.4.2). This project applies 3 heat and water meters, i.e. one measures heat supplied from the cogeneration plant manifold with the parameters of 96/70°С, the other measures heat at the outlet of the back up boilers with the same parameters, and the third measures cold produced by the absorption-refrigerating machine with the parameters of 7/12°С. Gas consumption measurement Natural gas consumption is measured using two ultrasonic gas flow meters JuniorSonic produced by Emerson (characteristics, checking intervals are given in p.9.4.2). The gas flow meters are installed on the section of the plant gas main to the cogeneration modules and to the back up boilers; and are designed for the technical record of gas. Power measurement In this project the power produced at the cogeneration plant is consumed exclusively for the needs of Demitex (Tornado). Thus it is technologically possible to sell the electricity surplus produced at the CHP via the public grid to other enterprises. The quantity of active electric power supplied from the generator buses 0.4 (6) kV is measured by the СТК3 electronic meter of active energy produced by LLC “TELEKART-PRYLAD” (characteristics, checking intervals are given in p.9.4.2). In order to calculate the useful energy produced at the CHP, one measures electricity consumption for auxiliaries of the CHP. The quantity of active and reactive energy consumed for the own need of the Cogeneration Plant including the absorption-refrigerating machine is measured by the same meter (CTK3). The meter is installed on the line 0.4 kV that is built for the own needs of the Cogeneration Plant. In order to measure electricity overflows between the Demitex Plant (TC Tornado) and public grid (both consumption from the grid and transfer of power surplus to the grid are possible), one uses devices of commercial accounting that are on balance of electricity supplier enterprise “Poltavaoblenergo” (“Zaporogjeoblenergo”). During the project execution due to the significant character change of energy overflows between the Demitex plant and public grid there may arise the necessity to replace this measuring device, the type of which will be defined at the projecting stage.


Page 97

9.6.3. Determining procedure of baseline and project emissions Baseline scenario for heat Heat consumption by the Demitex Plant due to the project realization is not changed and can be calculated as the sum of heat energy produced by back up boilers and CHP. It is also true in the case if the CHP produces surplus heat energy, since the surplus heat energy will be obligatorily removed via the emergency cooling system (dry coolers) and will not be accounted by the heat energy meter. As for the projected TC Tornado the calculated heat consumption does not depend on the project realization of the CHP and can also be defined as the sum of heat energy produced by back up boilers and CHP. Baseline scenario for cold The baseline project decision of Тrade Center Tornado construction provided cold production by compression chillers due to electricity consumption. The project line states that cold will produced by absorption chillers (without additional electricity consumption). Thus due to cold production by absorption chillers the electricity consumption for cold production is substituted. On the basis of measurement of monthly volumes of cold produced by absorption chillers one calculates the electricity, which would have been consumed for production of the same quantity of cold by only compression chillers. Since there are no actual compression chillers installed, they adopted the calculated specific consumption of electricity for cold production on the level of 0.37 kWel/kWcold, which corresponds to the projected latest model of compression refrigerating devices /compression chillers RTAC300, TRANE/ (see p.2.3). At the Demitex Plant now cooling is executed via passing of running cold water through the existing system of centralized cooling; due to the end of their working life the compression-refrigerating machines are dismantled. At present this situation does not provide proper cooling and moreover leads to large flow of running water. Consequently like TC Tornado, there is no possibility to measure the actual electricity consumption for cold production, and they adopt the calculated specific consumption of electricity for cold production on the level of 0.37 kWel/kWcold. Consequently they calculate the quantity of substituted electricity due to cold production by absorption chillers. Baseline and project scenario for electricity On the basis of the sum of the electricity produced at the CHP and consumed from the public grid, except for the electricity consumed for auxiliaries of the CHP, one can define the base level of electricity consumption by Demitex (“Tornado”). This value is added by the quantity of substituted electricity due to cold production by absorption chillers. In case if the energy surplus was given to the grid, on the basis of the measured value of exported energy one calculates СО2 emission reductions by multiplying by the correspondent EF (emission factor) for electricity generation. The algorithm (formulae) of correspondent calculations is given in the computation tables of baseline scenario, project scenario and resulting emission reductions given in Annex X.


Page 98

10. ENVIRONMENTAL IMPACT

CHP is a very efficient technology for generating electricity and heat together. A CHP plant is an installation where there is simultaneous generation of usable heat and power (usually electricity) in a single process. CHP can provide a secure and highly efficient method of generating electricity and heat at the point of use. Due to the utilisation of heat from electricity generation and the avoidance of transmission losses because electricity is generated on site, CHP typically achieves a 35 per cent reduction in primary energy usage compared with power stations and heat only boilers. This allows for economic savings where there is a suitable balance between the heat and power loads. Another important factor that witness for benefits of cogeneration and CHP is its high environmental purity. CHP have lower ranges of pollutant emissions and allow to reducing heat pollution of atmosphere. The current mix of CHP installations achieves a reduction of over 10 per cent in CO2 emissions in comparison with gas fired combined cycle gas turbines. As we know, all combustion engines pollute the environment with noxious components of exhaust gas. But different producers use different technologies to reduce the emission level. In order to reduce the emission level, two technologies are mainly used. The primary technology is the level reduction of nitric oxide formation in the engine due to the lean mixture combustion. The secondary technology is the exhaust gas treatment and the reduction of the level of detrimental substances that is executed outside the engine. During project implementation Sinapse will install cogeneration units produced by the world leader on cogeneration market – GE Jenbacher. Jenbacher engines also apply the LEANOX technology that is the concept of lean mixture combustion. Thus possible high levels of СО are reduced in the oxidation catalyst. There is a direct dependence between the emission level and air level in the mixture (rated as the air ratio λ). In order to reduce emission levels, the "lean" engines should receive the mixture with the optimum air proportion, i.e. with a certain value of λ. The patent LEANOX regulation system is based on the fact that the values of λ, discharge pressure and mixture temperature are linear interdependent. The adjustment on this basis has huge advantages in comparison with other methods since the mentioned values can be measured easily and accurately and consequently the value of λ can be defined accurately. The cogeneration units will be located in existing buildings causing no damage to the environment. All different projects will not need the special licenses from the government nor will need to undertake an Environmental Impact Assessment. The projects will have to pass a so-called ecological examination. According to the Law of Ukraine “About the ecological examination” projects of legislative and other legal normative acts, pre-project, project materials, documents, after the introduction of a new technique, technologies, materials, matters, products, realization of which can result in violation of ecological norms, negative influence on the state of natural environment, are subject to ecological examination.


Page 99

Note: The Annexes have been included in a separate document. Annex I Specifications of JMS-620 GS-N.L cogeneration

unit

Annex II Power consumption of JMS-620 GS-N.L cogeneration unit

Annex III Scheme of JMS-620 GS-N.L cogeneration unit

Annex IV Specifications of LT60s Absorption-Refrigerating Machine

Annex V Scheme of LT60s Absorption-Refrigerating Machine

Annex VI Specification of Ukrainian natural gas

Annex VII Energy law in Ukraine

Annex VIII Monitoring model for HekroPET

Annex IX Monitoring model for Medical Glass & NORD

Annex X Monitoring model for Demitex&Tornado

Annex XI Boiler’s efficiency

Monitoring model for Medical Glass & NORD