Bataan PDD v06

PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03
CDM – Executive Board
CLEAN DEVELOPMENT MECHANISM

PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD)
Version 03 - in effect as of: 22 December 2006
CONTENTS
A. General description of the small scale project activity
B. Application of a baseline and monitoring methodology
C. Duration of the project activity / crediting period
D. Environmental impacts
E. Stakeholders‟ comments
Annexes
Annex 1: Contact information on participants in the proposed small scale project activity
Annex 2: Information regarding public funding
Annex 3: Project Timeline
Annex 4: Grid Emission Factor Information
Annex 5: Monitoring Information
Annex 6: Philippines National CDM Criteria for Sustainable Development
Annex 7: Stakeholders‟ Consultation Meeting – Attendance Sheet
1
Revision history of this document
Version Date Description and reason of revision

Number
01 21 January Initial adoption
2003
02 8 July 2005  The Board agreed to revise the CDM SSC PDD to reflect
guidance and clarifications provided by the Board since
version 01 of this document.
 As a consequence, the guidelines for completing CDM SSC
PDD have been revised accordingly to version 2. The latest
version can be found at
<http://cdm.unfccc.int/Reference/Documents>.
03 22 December  The Board agreed to revise the CDM project design
2006 document for small-scale activities (CDM-SSC-PDD), taking
into account CDM-PDD and CDM-NM.
2
SECTION A. General description of small-scale project activity
A.1 Title of the small-scale project activity:

>>
Bataan 2020 12.5 MW Power Rice Hull Cogeneration Project
Version 6
17/12/2010
A.2. Description of the small-scale project activity:

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The Bataan 2020 Inc. 12.5 MW Rice Hull Power Cogeneration Project (hereafter, the “Project”)
developed by Bataan 2020 Inc. (hereinafter referred to as “Project Developer”) is a cogeneration project
for a paper mill located in Barangay Gugo, Municipality of Samal in the province of Bataan, Philippines
thereafter referred to as the “Host Country”.
Bataan 2020, Inc. is a leading manufacturer of newsprint, printing and writing paper and tissue in
Philippines. The paper mill uses electricity supplied from the grid for its plant operation. The process
steam requirement in the baseline would have been met by existing two (2) units of 15 tonnes per hour
rice hull-fuelled boilers at the paper manufacturing facility. The paper unit also has three (3) fuel oil fired
boilers with a total capacity of 26 tonnes per hour as backup for the baseline rice hulls fired low-pressure
boilers.
The purpose of the project activity is to generate steam and electricity using rice hulls as fuel in the 12.5
MW cogeneration plant. The project activity involves Atmospheric Fluidized Bed Combustion (AFBC)
technology for steam generation coupled with an extraction cum condensing steam turbine system for
electricity generation. The cogeneration plant will be fuelled with rice hulls and will directly reduce
greenhouse gas (GHG) emissions with the displacement of fossil fuel based grid electricity that otherwise
would have been imported from the grid, in absence of the project activity. Emission reductions are not
accounted for baseline emissions from the generation of steam.
The project will help the Philippines fulfil its goals of promoting sustainable development in terms of
economic, environmental and social benefits by generating renewable energy and reducing GHG
emissions as detailed under Annex 6. The following summarises the project‟s sustainable benefits:
 Generates employment and other economic opportunities and benefits to the local community
during the project construction period;
 Creates job to rice hull suppliers and transporters and additional income to farmers;
 Diversifies the sources of electricity generation;
 Uses clean and efficient technologies to improve local environmental quality and promotes
sustainable use of natural resources;
 Acts as a clean technology demonstration project;
 Optimises the use of natural resources, whereby uncontrolled waste management is avoided;
 Improves the overall management of landfills;
 Builds the capabilities of stakeholders through education and training; and
 Promotes local participation in the project.
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A.3. Project participants:

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Kindly indicate if the party
Private and/or public
involved wishes to be
Name of party involved (*) entity(ies)
considered as project
((host) indicates a host party) Project participants (*)
participant
(as applicable)
(Yes/No)
Philippines (host) Bataan 2020, Inc. No
United Kingdom of Great Britain EcoSecurities International

No
and Northern Ireland Limited
(*) In accordance with the CDM modalities and procedures, at the time of making the CDM-PDD public
at the stage of validation, a Party involved may or may not have provided its approval. At the time
requesting registration, the approval by the Party(ies) involved is required.
A.4. Technical description of the small-scale project activity
A.4.1. Location of the small-scale project activity:
A.4.1.1. Host Party(ies):

Philippines
A.4.1.2. Region/State/Province etc.:

Province of Bataan
A.4.1.3. City/Town/Community etc

Barangay Gugo, Municipality of Samal
A.4.1.4. Details of physical location, including information allowing the unique identification of this
small-scale project activity :
>>
The project is located in a rural town of Samal, in the province of Bataan in Region III (Central Luzon) in
the Philippines. The project site address is: Bataan 2020, Roman Superhighway, Samal, Bataan ZIP 2113.
The GPS coordinates are: N 14° 45.995‟, E 120° 30.038‟
4
A.4.2. Type and category(ies) and technology/measure of the small-scale project activity:
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According to Appendix B of the UNFCCC‟s published simplified procedures for small scale activities the
proposed project falls under
Type I: Renewable Energy Projects
Category C: Thermal Energy Production with or without Electricity, Version 16, Sectoral Scope 01, EB
51.
Technology
In the project activity, rice hulls is combusted in boiler to generate heat (steam) which runs a steam
turbine to provide thermal and electrical energy to the paper mill. The project is a rice hulls based
cogeneration technology. The rice hulls will be sourced from rice millers within Bataan and in nearby
provinces.
From the covered rice hulls storage, rice hulls will be fed to the belt conveyor going to the rice hulls silo,
then to the boiler by a booster fan or primary air fan. The boiler applies an atmospheric fluidised bed
combustion (AFBC) technology and the biomass fuel is fed via an overbed feeding system. The boiler
produces 78 tonnes per hour (66 kg/cm2, 490ºC) of high-pressure steam, which is directly fed to the steam
turbine. The turbine is a single unit controlled extraction sum condensing steam turbine that provides
process steam at 30 tonnes per hour (9.5 kg/cm2) and generates 12.5 MW of electricity (gross output) for
use by the whole paper mill. The auxiliary power requirements are approximately 1.75MW, resulting in a
nett electricity generation of approximately 10.75MW. Based on a 3-year historical electricity billing
5
records, the power requirements for the Bataan 2020 manufacturing facility is approximately 10.4 MW.
Excess electricity, if any, may be exported to the grid.
The equipment and technology is supplied and commissioned by Thermax Limited. The project will be
equipped with appropriate mechanical and electrical auxiliaries, an electrostatic precipitator and a dense
phase handling system to handle emissions. Specifically, an ash handling system will deal with both bed
and fly ashes.
The project activity will displace three (3) units of residual fuel oil fired backup boilers with a total steam
generation capacity of 26 tonnes per hour at 9.5 bar, and two (2) low-pressure rice hull fired boilers a
steam generation capacity 15 tonnes per hour at 9.5 bar, each, with a total capacity of 30 tonnes per hour.
The process steam requirements are approximately 30 tonnes per hour.
The design efficiency at optimal operating conditions of the rice hull low-pressure boilers is 80%, as
specified by the manufacturer. The baseline rice hull boilers were commissioned in March 2006 while the
fuel oil boilers serves as standby units to the baseline low pressure rice hull boilers during maintenance or
shutdowns. The baseline rice husk boilers have sufficient technical lifetime remaining that extends
beyond the crediting period. In the project activity, the existing rice hulls fired low pressure boilers will
be used as standby boilers, while the fuel oil boilers will be kept as backup and gradually scrapped subject
to the performance of the cogeneration system and security of biomass supplies.
Small amounts of coal might be used for boiler start-ups and during the rainy season due to wetting of
rice hulls. The use of coal as a co-fired fuel is not envisaged in the project activity. In the event coal is
used, it will be monitored, and accounted for as project emissions.
The proposed project is environmentally safe, as this will employ a new, modern and sound boiler
technology that would ensure complete combustion of carbon and volatile matters. To ensure its
compliance with national government‟s environmental standards, mitigation and enhancement measures
will be undertaken at the power plant. These measures are summarized under Section D, Environmental
Impacts.
A.4.3 Estimated amount of emission reductions over the chosen crediting period:
>>
Years Annual estimation of emission reductions over
the chosen crediting period
2011 38,652
2012 38,652
2013 38,652
2014 38,652
2015 38,652
2016 38,652
2017 38,652
Total estimated reductions (tonnes of CO2) 270,564
Total number of crediting years 7
Annual average over the crediting period of
38,652
estimated reductions (tonnes of CO2)
6
A.4.4. Public funding of the small-scale project activity:

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The project will not receive any public funding from Parties included in Annex I of the UNFCCC.
A.4.5. Confirmation that the small-scale project activity is not a debundled component of a
large scale project activity:
>>
Based on the information provided in Appendix C of the Simplified Modalities and Procedures for Small-
Scale CDM project activities1, the Project is not a part of any large-scale project or program and is not a
debundled component of a large project activity.
The project participants have not registered or are not applying to register any other small-scale CDM
project activity
 With the same project participants;
 In the same project category and technology/measure; and
 Registered within the previous 2 years; and
 Whose project boundary is within 1 km of the project boundary of the Project at the closest
point.
1
http://cdm.unfccc.int/Projects/pac/howto/SmallScalePA/sscdebund.pdf
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SECTION B. Application of a baseline and monitoring methodology
B.1. Title and reference of the approved baseline and monitoring methodology applied to the
small-scale project activity:
>>
According to Appendix B of the UNFCCC‟s published simplified procedures for small-scale activities,
the project applies the following methodology:
Approved small scale methodology AMS.I.C. “Thermal energy production with or without electricity”,
Version 16, EB 51.
The methodology also refers to the following:
“Tool to calculate project or leakage CO2 emissions from fossil fuel combustion” version 2, EB 41.
„Tool to calculate the emission factor for an electricity system‟, version 2, EB 50.
AMS I.D. “Grid connected renewable electricity generation”, version 15, EB 50.
B.2 Justification of the choice of the project category:

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The project activity meets the following measures of AMS I.C. Version 16 :
2. Biomass-based co-generating systems that produce heat and electricity are included in this
category. For, purpose of this methodology “cogeneration” shall mean the simultaneous
generation of thermal and electrical and/or mechanical energy in one process. Cogeneration
system may supply one of the following:
a) Electricity to a grid
b) Electricity and/or thermal (steam of heat) for on-site consumption of for consumption by
other facilities.
c) Combination of a) and b)
The project activity is a renewable biomass based cogeneration system. The cogeneration system in the
project activity supplies electricity and steam to the paper mill to meets its captive thermal and power
requirements. Excess electricity, if any, may possibly be supplied to the grid.
3. The following capacity limits apply for biomass cogeneration units:
c) If the emission reduction of the cogeneration project activity are solely on account of
electrical energy production (i.e. no emission reduction from thermal energy component),
the total installed electrical energy generation capacity of the project equipment of the
cogeneration unit shall not exceed 15 MW.
The project activity includes emission reductions solely for electrical energy production. Emission
reductions from the thermal energy component are not accounted in the project activity. The total
installed electrical generation capacity of the project equipment is 12.5 MW, which is less than the
stipulated limit of 15 MW.
4. In case electricity and/or steam/heat produced by the project activity is delivered to another
facility or facilities within the project boundary, a contract between the supplier and the
consumer(s) of the energy will have to be entered into specifying that only the facility generating
the energy can claim emission reductions from the energy displaced.
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The electricity and steam/heat produced by the project activity will be used by the paper mill itself to
meet its captive thermal and electricity requirements. A contract between supplier and consumer,
therefore, is not applicable. In case of export of electricity by the grid, it will be governed by a power
purchase agreement between the supplier and the receiver.
5. The capacity limits specified in the above paragraphs apply to both new facilities and retrofit
projects. In the case of project activities that involve the addition of renewable energy units at an
existing renewable energy facility, the total capacity of the units added by the project should
comply with the capacity limits in paragraphs 2 to 4 and should be physically distinct from the
existing units.
The project activity does not involve addition of renewable energy generating units at an existing
renewable energy facility. The project activity replaces the existing rice hulls based boilers, which would
be kept as standby in the project activity.
All other measures in the methodology are not relevant to the project activity. The project activity,
therefore, meets all the conditions above and is therefore applicable to the project category.
B.3. Description of the project boundary:

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According to AMS I.C. version 16, the physical geographical boundary site of the project equipment
producing the renewable energy delineates project boundary. The boundary also extends to the industrial,
commercial or residential facility, or facilities consuming energy generated by the system and the
processes or equipment that is affected by the project activity. In this case, the project boundary is the
cogeneration plant consisting of the rice hulls storage area and cogeneration unit.
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12.5 MW Rice Hull based Cogeneration Plant

(Project Activity)
Rice Rice Hull

Hulls 12.5 MW
fired Cogeneration unit Project Boundary
Storage Boiler
Area
30 TPH Steam Electricity
Paper Mill
Common Steam Header

Electricity
Grid Oil Rice

fired Hulls
3 units - Total 2 units -

of 26 TPH, 9.5 Total of 30 TPH,
bar 9.5 bar
Baseline Units
Low-Pressure Boilers (standby)
Figure 1: Baseline and Project boundary
B.4. Description of baseline and its development:

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In the absence of the project activity, electricity is imported from the electricity grid, which is served by
fossil fuel sources. The thermal energy or steam requirements for the paper mill is met by low-pressure
rice hulls fired boilers and supplemented by residual fuel oil fired boilers.34
The baseline scenario defined in paragraph 12 (e) of the methodology is applicable to the project activity.
12. Projects activities producing both heat and electricity including cogeneration shall use one of the
following baseline scenarios:
(e) Electricity is imported from the grid and/or produced in an on-site captive power plant (with a
possibility of export to the grid); steam/heat is produced from biomass.
Baseline emissions are determined according to paragraph 14, 16 and 20 of the methodology that state:
14. Baseline emissions for supply of electricity to and/or displacement of electricity from a grid shall be
calculated as per the procedures detailed in AMS I.D..
20. For case 12 (e) baseline emissions from the production of electricity shall be calculated as per
paragraph 16. Emission reductions from heat generation are not eligible.
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16. For project activities that do not displace captive electricity generated by existing plant but displace
grid electricity import and/or supply electricity to grid, the emission factor of the grid shall be calculated
as per procedures detailed in AMS I.D.
This refers to paragraph 10 and 11 of AMS I.D. version 15, which state:
10. For all other systems, the baseline emissions are the product of electrical energy baseline EG BL, y
expressed in kWh of electricity produced by the renewable generating unit multiplied by an emission
factor.
BE y  EG BL, y * EFCO2
11. The Emission Factor can be calculated in a transparent and conservative manner as follows
(a) A combined margin (CM), consisting of the combination of operating margin (OM) and build margin
(BM) according to the procedures prescribed in the „Tool to calculate the emission factor for an
electricity system‟.
OR
(b) The weighted average emissions (in kg CO2e/kWh) of the current generation mix. The data of the year
in which project generation occurs must be used.
Option (a) is selected in the project activity for determination of grid emission factor for electricity
imported from and/or supplied to the grid.
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B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below
those that would have occurred in the absence of the registered small-scale CDM project activity:
CDM CONSIDERATION
Bataan 2020, Inc and EcoSecurities Group Plc entered into an Emission Reduction Purchase Agreement
(ERPA) on 10 August 2007. This is before the date of Bataan 2020 signed a contract with Thermax on 04
September 2007 to implement the project activity. Subsequently, the first Purchase Order was issued to
Thermax on 08 September 2007, of which this date is considered the start date of the project activity. The
ERPA demonstrates that CDM was seriously considered prior to the project start date. Please refer to
Annex 3 for a full project timeline that shows continuous real actions taken to secure CDM status.
OVERVIEW OF PHILIPPINE RICE & RICE HULL PRODUCTION

The Philippines is largely an agricultural country with the agriculture contributing about 18 percent of the
GDP (2007)2. The total land area is about 0.30 million square km and approximately 32% is devoted to
agricultural production. Rice, corn and coconut are the most abundant crops planted with contribution of
rice being the highest at 34% of the total gross value added by crops in year 2007 3. Areas planted to rice
totalled about 4.273 million hectares4.
The Filipinos are among the world‟s biggest rice consumers. Rice consumption is increasing at an
average of two percent per year. With the population of the Philippines already about to reach the 90
million-mark5, rice will continue to be grown and should match production with corresponding increase
in population. Rice production increased from 6.38 million tonnes in 19756 to 16.24 million tonnes in
20077.
Rice hulls are processed by-products of rice milling and account for about 20 to 228 percent of the rice
production. The country has about 9,577 rice mills. Besides large mills, it includes many small mills,
2
Facts and Figures on the Philippine Agricultural Economy, 2007, CountryStat, Bureau of Agricultural Statistics,
http://countrystat.bas.gov.ph/index.asp?cont=ShowItems&catid=4&type=doc
http://countrystat.bas.gov.ph/documents/factsfigures2007.pdf refer page 2
3
Facts and Figures on the Philippine Agricultural Economy, 2007, CountryStat, Bureau of Agricultural Statistics,
http://countrystat.bas.gov.ph/index.asp?cont=ShowItems&catid=4&type=doc ,
http://countrystat.bas.gov.ph/documents/factsfigures2007.pdf refer page 1 and 2
4
Selected Statistics on Agriculture 2008, CountryStat, Bureau of Agricultural Statistics,
http://countrystat.bas.gov.ph/index.asp?cont=ShowItems&catid=4&type=doc
http://countrystat.bas.gov.ph/documents/selected_stat2008.pdf refer page 19
5
Philippines in Figures, National Statistics Office, http://www.census.gov.ph,
http://www.census.gov.ph/data/census2007/index.html
6
Cororaton, Caesar B., Rice Reform and Poverty in the Philippines: A CGE Analysis, ADB Institute Research
Paper Series, June 2004, http://www.adbi.org/research%20paper/2005/01/14/875.rice.reform.philippines,
http://www.adbi.org/files/2005.01.14.rp57.rice.reforms.philippines.pdf , refer page 15
7
Selected Statistics on Agriculture 2008, CountryStat, Bureau of Agricultural Statistics,
http://countrystat.bas.gov.ph/index.asp?cont=ShowItems&catid=4&type=doc,
http://countrystat.bas.gov.ph/documents/selected_stat2008.pdf, refer page 23
8
http://www.ricehuskash.com/details.htm
12
home mills and medium capacity mills spread throughout the country9. Rice hulls are normally
considered waste, and left to decay or burned in open dumpsites. The common practice for rice hulls
disposals are dumping and open burning as stated in agricultural literatures10. A study conducted by the
Philippine Rice Research Institute elaborates the common practice of rice millers is the disposal of rice
hulls11. Also, rice hulls are used as soil conditioners by vegetable farmers in the provinces. They are also
used to burn wood to make charcoals, which is a form of livelihood in the rural areas12. Avoidance of
methane emissions from decay of biomass or uncontrolled combustion of biomass is not included as part
of the project activity.
ADDITIONALITY
According to Attachment A to Appendix B of the simplified modalities and procedures for CDM small-
scale project activities, evidence as to why the proposed project is additional is offered under the
following categories of barriers (a) investment barrier (b) technological barrier, (c) barriers due to
prevailing practice and (d) other barriers.
The project activity faces barriers in the technological and prevailing practice aspects, which would have
prohibited the implementation of the project activity.
Barriers due to Prevailing Practice (‘First of its kind’)
Prevailing Practice in terms of Technology
Power generation from biomass residues is not the common practice in Philippines. As per the statistics
by Philippines‟ Department of Energy (DOE), the total installed generating capacity of the grid-connected
power plants as of December 2007 was 15,937 MW. Coal-fired power plants accounted the largest share
in terms of installed capacity, contributing 4,213 MW or 26.44 percent of the mix. The majority of these
coal plants are located in Luzon grid. Oil-based power plants accounted for 3,616 MW or 22.69 percent
of the total capacity. Hydroelectric power plants, which is the main source of electricity in Mindanao grid
accounted for 3,289 MW or 20.64 percent. Natural gas fired power plants in Luzon grid amounted to
2,834 MW or 17.78 percent; geothermal power plants, which are mostly located in Visayas grid,
accounted for 1,958 MW or 12.29 percent to the total installed capacity. Other renewable energy such as
wind and solar accounted for only 0.16 percent of the capacity mix. (See figure below)13
9
Licensed/Registered Grains Businessmen... National Food Authority,, http://www.nfa.gov.ph/index.php?lt=3.
http://www.nfa.gov.ph/files/licensed.pdf
10
Burning of Agricultural Wastes more Hazardous than Vehicle Emissions. UMAsenso, Department of Agriculture
RFU 5, Vol. 6 No. 1, 1Qtr 2007, http://bicol.da.gov.ph/News/2007news/1qtr2007/burning.html,
http://cdmdna.emb.gov.ph/cdm/public/cdm-ph-potential.php?main=cdmph&sub=potential
11
Philippine Rice Research Institute, Rice Technology Bulletin 2004 No.49, Integrated Farm and Household Waste
Management, page 2.
12
http://ricenetwork.com/talk/messages/2/891.html?1162600477
13
http://www.doe.gov.ph/EP/Powerstat.htm
13
The Department of Energy is mandated by RA 7638 (Department of Energy Act of 1992) to prepare,
integrate, coordinate, supervise and control all plans, programs, projects and activities of the Government
relative to energy exploration, development, utilization, distribution and conservation. It has several
Divisions and Bureaus catering to different sectors, regions etc. spanning multiple functions, roles and
responsibilities. Besides many, the major divisions of the Department of Energy14 are as follows:
1. Investment Promotion Office - Implements the policies, plans and programs relative to
promotion of investments in the energy resource exploration, technology and infrastructure.
2. Energy Resource Development Bureau – Formulates and implements Government Policies,
programs and regulations relating to exploration, development and production of indigenous
petroleum, coal and geothermal, energy resources and related products and markets thereof.
3. Energy Utilization and Management Bureau – Formulates and implements policies, plans,
programs and regulations on new Energy Technologies, alternate fuels and the efficient,
economical transformation, distribution of conventional and renewable energy resources and
ensures efficient and judicious utilization of conventional and renewable energy resources.
A Department of Energy Certificate of Endorsement (CoE) is a requirement under the Amended

Guidelines for the issuance of Certificate of Compliance (COC) by Energy Regulatory Commission
(ERC) promulgated on March 7, 2003 for grid-connected power plants. It specifies that “No person may
engage in the Generation of Electricity as a new Generation Company unless such person has received a
COC from the ERC to operate facilities used in the Generation of Electricity”.15
The Department of Energy provides a list of all grid-connected power generating entities that have been
issued with a COE for generation of power. As per the most recent list currently made available on public
domain by DOE (till 31st March 2008), there were no grid connected rice hull based power generating
unit in the region and in the pulp and paper industry.16
The government of Philippines through DOE provides certain fiscal and non-fiscal incentives to the
enterprises investing in preferred areas of investments enumerated in the Investment Priorities Plan (IPP).
This plan is issued annually by the Board of Investments (BOI) and contains the list of areas of
14
http://www.doe.gov.ph/About%20DOE/Org%20Functions.htm
15
http://www.doe.gov.ph/EP/CertofEndorsement.htm
16
List of Generating Companies Issued with Certificate of Endorsement (CoE) as of March 31, 2008
http://www.doe.gov.ph/EP/GenCompanies.htm
14
investments eligible for government incentives. Only after registration with BOI, a qualified enterprise is
entitled to the allowable fiscal and non-fiscal incentives.17 As per the IPP pertaining to the energy sector,
power generation using renewable and other energy sources using environmentally-friendly technologies
(Those utilizing indigenous and renewable energy such as biomass, waste to energy, conversion, solar,
wind, hydro and tidal; ) may qualify for registration with BOI.18 Thus, the preliminary step for any
biomass-based project is to register with BOI to get the government incentives. Prior to the start date of
the project activity, there was only one rice husk based cogeneration project registered with BOI, which is
the La Suerte 1MW Rice Husk Cogeneration Project in Isabela, Philippines. This project was the first full
scale demonstration project under the "EC-ASEAN COGEN 3" programme in the Philippines, and a
CDM project activity in validation.19 Essential distinctions can be made as the project is of a much
smaller scale of 1MW, was the first full scale demonstration project in the region, and the activity exists
in different industry; the rice milling industry where biomass is available internally. As this project is a
CDM project, it is excluded for further analysis. Based on the database of projects registered with the
BOI, there are only three rice hulls based cogeneration units that registered with BOI from 2000 - 200820.
These projects are being implemented taking into consideration the revenues from CDM.21
The Investment Promotion Office, Department of Energy, (IPO) which is concerned with the promotion
of energy infrastructure, issues an annual investment portfolio that identifies business opportunities
geared towards the Department's goal of attaining energy independence. The portfolio is prepared
annually and forms part of the Philippine Energy Plan. The portfolio is designed specifically to provide
potential investors in the energy sector a list of energy investment opportunities in the country. Areas with
investment prospects are segregated geographically according to resource with the corresponding
estimated cost requirements for easy reference.22
As per the IPO, for the period 2007-2014, there are only four (4) rice hulls based cogeneration projects
planned in the project region.23 It can be noted that these are prospected for investment only in the period
of 2007 to 2014 and were not implemented /operational at the time of the start of the project activity.
Earlier attempts of similar nature have also been not so successful. Biomass power projects such as the
1,920-kW Southern Philippines Grains Complex Power Plant, the 2.1-MW NFA Rice Hull Fired Steam
Power Plant in Iloilo, and PNOC‟s 22-kW Pilot Power Plant, have not been successful.24 This further
substantiates that the project activity is not the common practice in the region and faces prevailing
practice barrier.
17
http://www.doe.gov.ph/IPO%20Web/Incentives.htm
18
http://www.doe.gov.ph/IPO%20Web/ipp_IPPGuidelines_07.htm
19
http://cdm.unfccc.int/Projects/Validation/DB/CX1586XLYJ8B0VFFV48YJWBYF3QY7S/view.html
20
List of BOI Registered Energy Projects for the period March 2000 to July 2009, submitted to DOE in hardcopy.
21
CDM: “La Suerte 1MW Rice Husk Cogeneration Project”
CDM: “Family Choice & Golden Season 2MW Rice Husk Projects” (2 project activities bundled)
22
http://www.doe.gov.ph/IPO%20Web/PorRegional.htm
23
http://www.doe.gov.ph/IPO%20Web/PorRegional_2007.htm, refer Region III
24
Philippines Climate Change Mitigation Program, Terminal Report - Technical Assistance to DOE for Enhancing
Private Sector Participation in New and Renewable Energy Investments for Off-Grid Rural Electrification (TASK 6
– Collection, Analysis and Packaging of Critical Investment Information), section 2.5.4
15
Prevailing Practice in the Industry

The Philippine pulp and paper industry consists of 34 paper mills and one integrated pulp and paper
mill25. The largest of these are UPCC, TIPCO, CCP, Bataan 2020 and PICOP. These mills contribute
towards 65% of the total paper production capacity of the paper industry in Philippines. For their
electricity requirements, the large paper mills operate coal-fired power plants, or source electricity from
the grid. TIPCO and UPPC, two of the largest paper manufacturers have installed a 50 MW and 30 MW
coal fired power plants, respectively. Another paper mill, CCP has a coal-fired steam boiler with a
capacity of 15 tonnes/hour for process steam. PICOP has coal and bark-fuelled boilers26. The rest of the
paper mills are comparatively much smaller as compared to Bataan 2020 and are not comparable to the
project activity. Thus, the project activity is not a common practice in the industry and faces barriers due
to prevailing practice.
The utilisation of rice hulls as fuel in cogeneration power plant represents a deviation from the prevailing
business practices. The common practice of paper mills is to use electricity from the grid or use boilers
that fuels either bunker/fuel oil or coal. This technology is a simpler alternative and does not face barriers
in the continuation of practice. In the absence of CDM revenues, the project proponent would not have
installed the project activity keeping in view the historical failures of rice hulls based power projects and
the requirement for funding for these projects as taken by various other rice hulls based power plant as
described in the table above.
Thus, prior to the start of the project activity, it can be substantiated that there were no rice hulls based
power generation units in paper industry of Philippines, and the project activity can be considered the first
of its kind in the region and in the pulp and paper industry.
Technological Barriers
The predominant technology to generate heat and steam in pulp and paper industries is the use of fossil
fuels based boilers. As described in the „barriers due to prevailing practice‟ above, there are no paper
mills in the region that use rice hull in cogeneration power plants other than those that have been
implemented with CDM. The incineration of rice hulls as fuel demonstrates a new source of fuel with a
technology that is primarily unexplored in the region. The project activity faces following technological
barriers.
 The technology application of a biomass steam boiler with a steam generation capacity of 78 tonnes
per hour at 66 bar and 450 deg C, combined with a 12.MW turbine is not readily available in the
Philippines; hence, the technology and equipment for the project activity are imported from the
Indian manufacturer (Thermax). There is a risk associated with the new technology given that this is
the first paper mill in the Philippines to construct a rice hull-fired cogeneration power plant. The
project activity therefore carries a risk of under performance by adopting this technology and it may
not be able to sustain its output or perform as well as designed. No such problems would have been
encountered in case of electricity import from the grid.
 As the technology is not prevalent, there is lack of skilled and certified workers in the region to
operate and maintain the plant. The cogeneration operation are much more complex and have higher
levels of automation than low pressure boilers therefore, will require adequate training and skilled
building exercise, which is more specialised than a conventional power plant operation. In the Host
25
Pulp and Paper Industry: an Overview. 28th Federation of ASEAN Pulp & Paper Industry Conference, Nov. 2007
26
Pulp and Paper Industry: an Overview. 28th Federation of ASEAN Pulp & Paper Industry Conference, Nov. 2007
16
Country, Philippines, 63% of local businesses cited the lack of skilled employees as a major barrier. 27
To ensure knowledge transfer for capacity building and security of operations due to a lack of local
specialists, Bataan 2020 signed a two-year contract with Thermax on 31st March 2009, after CDM
initiatives had started, to provide expatriate engineers to supervise, manage and assist operations and
maintenance (O&M) of the cogeneration plant, as well as to provide training to local personnel.
Nevertheless, this training does not confer professional qualifications or expertise to the local staff,
but assists in providing a reasonable level of experience in O&M. After the two-year training period,
the local personnel‟s capability to operate and maintain the cogeneration plant will be assessed. The
contract does not define performance guarantees or liabilities in case of failures within the two-year
period, while the training does not mitigate the risk of unavailability of local skilled manpower with
certainty over project lifetime of 25 years
 The use of biomass in high-pressure based power generation carries certain risks. Rice hulls ash
contains a high silica content approximately 91 percent28 which leads to abrasion of the boiler tubes29.
Furthermore, for a biomass system there is a higher level of slagging and fouling in the super heater
and economizer coils. This will also lead to import and high inventory of spares, which are not
readily available locally. Lack of equipment in case of emergency failures could lead to unacceptably
high risk of equipment disrepair and malfunctioning or underperformance, due to unavailability of
parts and time taken for import such equipment. Foreign technical specialists or consultants may also
be required at site to address some failures. Furthermore, during rainy season that is significantly
long30 in Philippines, there would be problems of wetting of rice hulls as the hulls are stored in a large
open area. The use of rice hulls with high moisture content in project boiler causes fluctuations in
pressure and temperature, which affects a cogeneration system significantly. This also results in a risk
of underperformance, operational problems related to incomplete combustion of husks, high ash
formation and high slagging. The above risks cannot be reflected in monetary terms with reasonable
certainty over the entire 25 years of lifetime of the project activity, but is related to technological
failure, which can lead to negative effects on financial performance.
The project activity therefore faces technological barriers that would not have been encountered in the
baseline. The import of electricity from the regional grid would not have posed abovementioned
problems, however it would have led to equivalent GHG emissions due to fossil fuel based electricity
generation.
Summary
In the absence of project activity, Bataan 2020 will continue to operate its existing two (2) units of low-
pressure rice hull fired boilers / three (3) oil fired boilers and purchase electricity from the grid. These
practices do not present any particular obstacle as these have been used effectively in the past with good
results, and the continued operation of existing facilities and actual practices presents no real barriers.
27
Grant Thornton, „Focus on: Philippines‟ in International Business Report 2009 – Country Focus Series, page 5
http://www.internationalbusinessreport.com/files/gti%20ibr%20philippines%20focus%2009%20final.pdf
28
D. Njie, “Energy generation from rice residues – a review of technological options, opportunities and challenges”
International Riced Commission Newsletter Vol. 56, 2007, FAO-UN, http://www4.fao.org/cgi-
bin/faobib.exe?vq_query=A%3DNjie,%20D.&database=faobib&search_type=view_query_search&table=mona&pa
ge_header=ephmon&lang=eng
29
Commercial Rice Milling Systems: By-products & their Utilization, International Rice Research Institute,
30
Republic of the Philippines: General Information.
http://www.gov.ph/index.php?option=com_content&task=view&id=200020&Itemid=26
17
There are no technical/technological issues as this simply represents a continuation of current practices
and does not involve any new technology or innovation.
Moreover, the rice hull fired boilers were operational in March 2006, are very new and are in excellent
condition. The installation of a new rice hull cogeneration system, for the purpose of captive electricity
generation, does not become attractive unless it is undertaken with CDM due to the barriers involved, in
addition to the significant investment required.
In conclusion, the barriers substantiate the project additionality. Despite the project activity not being a
common practice and precedence of technical failure of similar nature of projects, Bataan 2020 Inc has
gone ahead with the implementation of the project activity to reduce GHG emissions that would have
occurred due to import of electricity from the grid in absence of the project activity.
The impact of the project activity with CDM would also raise the profile of manufacturing industries as
socially and environmentally responsible entities among the residents surrounding the project activity
area, and provide invaluable recognition to the project activity. The project activity also helps promote
sustainability, and therefore is eligible under the CDM. This is based on full consideration of CDM from
an early stage in project planning. Bataan 2020 is the first manufacturing industry and first paper
manufacturer to install a rice hull-fired cogeneration power plant in the Philippines.
B.6 Emission reductions:
B.6.1. Explanation of methodological choices:

>>
The methodology AMS I.C is applicable to the proposed project activity, as it is applicable to measure the
GHG emissions from electricity imported from the grid.
The proposed project activity involves displacement of electricity from, and supply of electricity to the
grid with a cogeneration power plant that uses rice hulls to produce steam and electricity.
Since steam/heat is also produced from renewable biomass in the baseline, and since the baseline heat
generation includes biomass and occasionally fossil fuel (fuel oil), no emission reduction has been
accounted for heat generation. Therefore, emission reductions from the displacement of heat/steam are
not being claimed.
Baseline Emissions
The baseline is the MWh of net electricity generated by the project plant multiplied by the emission factor
of the grid. The grid emission factor (measured in kg CO2e/kWh) is calculated ex-ante as combined
margin (CM) as per procedures detailed in AMS I.D. The contribution of low cost must run resources
constitute less than 50% of the total generation. Further, an ex ante approach has been selected for
computation of the emission factor. The CM is the average of the operating margin (OM) and the build
margin (BM) as calculated and described under Annex 4.
18
BEy = EGBL,y * EFCO2

Where:
BEy Baseline emissions in year y (tCO2)
EGBL,y Electrical energy baseline, of electricity produced by renewable generating unit in year y
(MWh)
EFCO2 CO2 emission factor of the grid (tCO2 / MWh)
Project Emissions
The project emissions attributable to the project activity are CO2 emissions from on-site consumption of
fossil fuels calculated according to the “Tool to calculate project or leakage CO2 emissions from fossil
fuel combustion”. CO2 emissions from electricity consumption by the project activity are excluded as the
net amount of renewable energy generated, excluding auxiliary power, is measured.
Project Emissions from on-site use of fossil fuels
CO2 emissions from on-site consumption of fossil fuels due to the project activity is the amount of coal
consumed multiplied by the carbon emission factor of the coal. Coal may be used in the project activity
for start-ups of boiler, or during rainy season, due to wetting of rice hulls. The project emissions due to
use of coal in the project activity is calculated according to “Tool to calculate project or leakage CO2
emissions from fossil fuel combustion” and „Option 2‟ of the tool is applied for the CO2 emission
coefficient of coal.
PEFC,j,y = FCcoal,j,y * COEFi,y ;
COEFcoal,y = NCVcoal,y * EFCO2,coal,y

Where:
PEFC,j,y CO2 emissions from fossil fuel combustion in process j during the year y (tCO2/yr);
FCcoal,j,y Quantity of coal consumed in process j during the year y (mass or volume unit/yr);
COEFcoal,y CO2 emission coefficient of coal in year y (tCO2/mass or volume unit);
NCVcoal,y Net calorific value of coal in year y (GJ/mass or volume unit);
EFCO2,coal,y CO2 emission factor of coal in the year y (tCO2/GJ)
Leakage
For biomass residues, leakage from competing use of biomass is considered. The Leakage guidelines in
“Attachment C to Appendix B - Indicative simplified baseline and monitoring methodologies for selected
small-scale CDM project activity categories” is applied. CO2 emissions from transportation of biomass
residues to the project site are considered as a leakage source as transportation of biomass residues is
outside the project boundary.
19
Leakage due to competing use of biomass residues
The Central Luzon where the Bataan province is part of is the largest rice-producing region in the
Philippines, with a production of 2,942,113 metric tonnes of harvested rice in the year 200731. Based on
estimated rice hulls composition of 20 percent, there is 588,427 tonnes of rice hulls available per year.
Rice hulls are commonly used as charcoal bricks, stove fuels and soil conditioners but are insignificant as
there is no substantial use of rice hulls in the region. There are also no competing uses for rice hulls. A
published study on abandoned biomass resources statistics in the Philippines reported that there were
368,531 tonnes of available rice hulls in the Central Luzon Region in 200632.
The Bataan 2020 project will consume a maximum of 18.57 tonnes per hour or 146,377 tonnes per year
of rice hulls. Using the published study as reference and deducting Bataan 2020‟s estimated consumption
from the tonnes of available rice hulls, the excess quantity available is 152 percent, which still constitute a
significant surplus. Since the availability of biomass is more than 25 percent the quantity utilised, leakage
emission due to competent use of biomass residues can be neglected.
Parameter Value Unit Source/Comment

Quantity of Rice Hulls Used 146,377 tonnes/yr Estimated consumption
by the Power Plant (QPP)
Quantity of Abandoned Rice 368,831 tonnes/yr Published Literature
Hulls in the Region(QR)
Surplus Rice hulls in the 152% tonnes/yr Calculated
region
Leakage due to transportation of biomass residues to the project site

CO2 emissions from transportation of biomass residues to the project site are considered if the biomass is
transported over a distance of more than 200km. CO2 emissions from transport of rice hulls to the project
site is calculated based on the distance and the number of truck trips made and average emissions per unit
run:
LEtransp,y = Σ BFPJy / TLy * AVDy * EFCO2,transp
Where:
LEtransp,y CO2 emissions during the year y due to transport of the rice hulls to the project plant
(tCO2/yr);
BFPJy Incremental quantity of rice hulls as a result of project activity during the year y,
cogeneration consumption against baseline biomass boiler ;
AVDy Average round trip distance (km);
TLy Average truck load/capacity of the trucks used (tons or liters) during the year y;
EFCO2,transp Average CO2 emission factor per unit run of transportation (tCO2/ km)
Since rice hulls have been used in the baseline, the incremental quantity of rice hulls transported will be
considered in the calculation of leakage.
31
Bureau of Agricultural Statistics, Department of Agriculture Philippines,
http://countrystat.bas.gov.ph/index.asp?cont=selection&pageid=pxweb/dialog/varval.asp&ma=PNVCP101&path=p
xweb/database/main/DETAILS/A_PRODUCTION/A%20CROPS/&lang=1
32
Baconguis, Santiago R., Abandoned Biomass Resource Statistics in the Philippines, October 2007, table 1
http://www.nscb.gov.ph/ncs/10thNCS/papers/invited%20papers/ips-20/ips20-03.pdf
20
BFPJy = BFy - Qproject plant, y / ( ε boiler * GCV )

Where:
BFy Quantity of rice hulls consumed in the project plant during the year y;
Qproject plant, y Net quantity of heat generated in the cogeneration project plant from firing rice hulls
(GJ);
ε boiler Energy efficiency of the boiler that would be used in the absence of project activity;
GCV Calorific value of the rice hulls
Emission reductions
The greenhouse gas emission reductions achieved by the project activity during a given year y (ERy) is
the difference between the net baseline emission and the sum of project activity emission and leakage.
ERy = BEy – PEFC,j,y –LEtransp,y

Where:
ERy The project emission reduction in the year y (tCO2e);
BEy The baseline emissions in the year y (tCO2e);
PEFC,j,y The project activity emissions in the year y due to combustion of fossil fuels (tCO2e);
LEtransp,y The leakage in the year y due to transportation of biomass (tCO2e)
21
B.6.2. Data and parameters that are available at validation:
Data / Parameter: EFCO2

Data unit: tCO2e/MWh
Description: Grid Emission Factor for the Luzon-Visayas Grid
Source of data used: Philippines‟ Department of Energy
Value applied: 0.474
Justification of the The data is calculated based on latest energy generation data available from the
choice of data or Philippines‟ Department of Energy. Please refer to Annex 4 for details.
description of
measurement methods
and procedures actually
applied :
Any comment: The Grid emission factor has been determined ex-ante is fixed for entire
crediting period.
Data / Parameter: SECRH

Data unit: GJ/MWh
Description: Specific Energy Consumption of rice hulls in the project activity
Source of data used: Heat and Mass Balance Diagram
Justification of the Specific energy consumption or Plant Heat Rate:
choice of data or 4604.46 kcal/kWh x 4.18468 J/cal = 19.2780 GJ/MWh
description of Specific fuel consumption:
measurement methods Plant Heat Rate divided by GCV of fuel (rice hulls)
and procedures actually 4604.46 kcal/kWh / 3100 kcal/kg = 1.4853 ton/MWh.
applied :
Any comment:
Data / Parameter: SECCoal

Data unit: GJ/MWh
Description: Specific Energy Consumption of coal in the project activity
Source of data used: Heat and Mass Balance Diagram
Justification of the Specific energy consumption or Plant Heat Rate:
choice of data or 4604.46 kcal/kWh x 4.18468 J/cal = 19.2780 GJ/MWh
description of Specific fuel consumption:
measurement methods Plant Heat Rate divided by NCV of fuel (coal)
and procedures actually 4604.46 kcal/kWh / (30.5 TJ/Gg / 4.1868∙10-3 ) kcal/kg = 0.6321 ton/MWh.
applied :
Any comment:
22
Data / Parameter: EFCO2 transp

Data unit: tCO2/km
Description: Average CO2 emission factor per unit run of transportation
Source of data used: IPCC 1996
Justification of the IPCC 1996 default CO2 Emission Factors for “US Heavy Duty Diesel
choice of data or Vehicles”, with moderate emissions controlled technology, as provided in Table
description of 1-32, Chaper 1 (Energy) of the 1996 IPCC Guidelines on National GHG
measurement methods Inventories.
applied :
Any comment: IPCC 1996 values are applied as IPCC 2006 values are unavailable.
Data / Parameter: ε boiler

Data unit: %
Description: Thermal efficiency of the baseline rice hull boilers
Source of data used: Manufacturers specifications
Value applied: 80
Justification of the Efficiency is retrieved from different manufacturers‟ boiler specifications for
choice of data or similar units using baseline fuel (rice hulls).
description of The values are: 80%, 75%, 78%, 78%
measurement methods Highest thermal efficiency value of 80% „on GCV‟ is used to be conservative.
applied :
Any comment: Based on guidelines in Option (b) of methodology.
23
B.6.3 Ex-ante calculation of emission reductions:

Ex-ante calculation of Emissions reductions is calculated as follows:
Emission Reductions
ERy = BEy – PEFC,j,y – LEtransp,y
ERy 38,652 tCO2e Calculated
BEy 40,173 tCO2e Calculated
PEFC,j,y 0 tCO2e Calculated
LEtransp,y 1,521 tCO2e Calculated
Baseline Emissions
BEy = EGBL,y * EFCO2
BEy 40,173 tCO2e Calculated
EG BL,y 84,753 MWh Calculated (see table below)
EFCO2 0.474 tCO2e /MWh Refer to Annex 4
Where EGBL,y = (Capacity – Auxiliary Power) * Capacity Factor * Hours in a year
EGBL,y 84,753 MWh Calculated
Designed Capacity 12.5 MW Plant Design
(Gross)
Auxiliary Consumption 1.75 MW Project Developer
Hours in a year 8,760 hr/yr 365 days x 24 hours
Capacity Factor 90 % Project Developer - Expected
availability of the plant excluding
non-programmed maintenance.
Project Emissions, from on-site use of fossil fuels
PEFC,j,y = FCcoal,j,y * COEFi,y , where COEFcoal,y = NCVcoal,y * EFCO2,coal,y

PEFC,j,y 0 tCO2e Calculated
FCcoal,j,y 0 ton Estimated as zero ex-ante
COEFi,y 3.04 tCO2/ ton Calculated
NCVcoal 30.5 GJ/ton IPCC 2006, upper 95% CI
EFCO2,coal,y 0.099700 tCO2/GJ IPCC 2006, upper 95% CI
24
Leakage, due to transportation of biomass to the project site
LEtransp,y = Σ BFPJ,y/TLy * AVDy * EFCO2,transp

LEtransp,y 1,521 tCO2e Calculated
BFPJ,y 82,761 tonnes Calculated (see table below)
TLy 22 tonnes Average truck capacity at project
site
AVDy 400 km Estimated average transport
distance, (return)
EFCO2, transp 0.001011 tCO2e/km IPCC 1996
Incremental quantity of rice hulls used

BFPJ,y = BFy - Qproject plant, y / ( ε boiler * GCV)
BFPJ,y 82,761 tonnes Calculated
BFy 146,377 tonnes Calculated based on Plant Heat
and Mass Balance Diagram
Qproject plant, y 660,554 GJ Calculated based on Plant Heat
and Mass Balance Diagram
ε boiler 80 % Option (b) of methodology
GCV 12.9791 GJ/ton Rice hull lab analysis
B.6.4 Summary of the ex-ante estimation of emission reductions:
Estimation of Estimation of
Estimation of Estimation of
project activity leakage
Years baseline emissions emission reductions
emissions (tonnes of (tonnes of
(tonnes of CO2 e) (tonnes of CO2 e)
CO2e) CO2 e)
2011 40,173 0 1,521 38,652

2012 40,173 0 1,521 38,652
2013 40,173 0 1,521 38,652
2014 40,173 0 1,521 38,652
2015 40,173 0 1,521 38,652
2016 40,173 0 1,521 38,652
2017 40,173 0 1,521 38,652
Total (tonnes of CO2) 281,211 0 10,674 270,564
25
B.7 Application of a monitoring methodology and description of the monitoring plan:
B.7.1 Data and parameters monitored:
Data / Parameter: BF,y

Data unit: tonnes/yr
Description: Quantity of biomass fuel (rice hulls) consumed in the project activity
cogeneration system in the year y
Source of data to be Mass/energy balance
used:
Value of data: 146,377
Description of The amount of rice hulls consumed in the project activity is estimated using
measurement annual mass/ energy balance based on rice hulls purchased quantities and
methods and stock. The amount of rice hulls purchased for use in the project activity will
procedures to be be measured via a calibrated weighbridge system and supported by invoices.
applied:
QA/QC procedures to Measurement equipment will be calibrated regularly in accordance with
be applied: manufacturer‟s recommendation, and the calibration frequency will not be
less than once in three years.
Any comment:
Data / Parameter: EG BL,y

Data unit: MWh/yr
Description: Net power generation by the project activity in the year y
Source of data to be On-site measurements
used:
Description of The amount of net electricity generated; excluding the auxiliary power
measurement consumption; will be measured with calibrated electricity meter(s) and
methods and recorded daily.
procedures to be
applied:
QA/QC procedures to Measurement equipment will be maintained and calibrated regularly in
be applied: accordance with manufacturer‟s recommendation, and the calibration
frequency will not be less than once in three years.
Any comment:
Data / Parameter: Qproject plant, y

Data unit: GJ/yr
Description: Quantity of heat generated in the project activity plant in the year y
used:
Description of Quantity of heat (steam) generated in the project activity plant is determined
measurement based on steam mass (or volume) flows, the temperatures and, in case of
methods and superheated steam, the pressure. Steam tables or appropriate thermodynamic
procedures to be equations will be used to calculate the enthalpy. Measurement will be done
26
applied: with calibrated equipment and recorded daily.

Any comment: This parameter is used to calculate project emissions due to incremental
transport of biomass
Data / Parameter: FCcoal,j,y

Data unit: tonnes/yr
Description: Quantity of coal used in the project activity in the year y
used:
Value of data: 0
Description of The amount of coal used in the project activity will be measured via a
measurement calibrated weighbridge system.
methods and
procedures to be
applied:
Any comment: Coal will only be used for start up purposes or in case of emergencies.
Data / Parameter: EFCO2,coal,y

Data unit: t CO2/GJ
Description: CO2 emission factor for coal
Source of data to be IPCC default values at the upper limit of the uncertainty at a 95% confidence
used: interval as provided in table 1.4 of Chapter1 of Vol. 2 (Energy) of the 2006
IPCC Guidelines on National GHG Inventories
Value of data: 99700 x 10-6
Description of A default value is applied as values from the fuel supplier in not available.
measurement Any future revisions of the IPCC Guidelines will be taken into account.
methods and
procedures to be
applied:
QA/QC procedures to
be applied:
Any comment:
Data / Parameter: NCVcoal,y

Data unit: GJ/tonne
Description: Net calorific value of coal
Source of data to be IPCC default values at the upper limit of the uncertainty at a 95% confidence
used: interval as provided in Table 1.2 of Chapter 1 of Vol. 2 (Energy) of the 2006
IPCC Guidelines on National GHG Inventories
Value of data: 30.5
Description of A default value is applied as values from the fuel supplier in not available.
measurement Any future revisions of the IPCC Guidelines will be taken into account.
27
methods and
procedures to be
applied:
QA/QC procedures to
be applied:
Any comment:
Data / Parameter: TLy

Data unit: Tonnes
Description: Average truck load of the trucks used in the year y
Source of data to be Delivery records
used:
Value of data: 22
Description of The average truck load for the transport of rice hulls to the project site will be
measurement determined by averaging the weights of trucks carrying biomass to the
methods and project plant. Average truck load will be aggregated annually.
procedures to be
applied:
QA/QC procedures to Consistency checks of the actual transported weight will be carried out
be applied: against information from weighbridge data.
Any comment: Leakage would be considered if biomass residues are transported over an
average distance of more than 200 kilometres to the project site, (or a round
trip distance of over 400 kilometres) due to the implementation of the project
activity, otherwise it would be neglected.
Data / Parameter: AVDy

Data unit: km/yr
Description: Average round trip distance (from and to) between the biomass residue fuel
supply sites and the site of the project plant during the year y (km)
Source of data to be Delivery records
used:
Value of data: 400
Description of The average round trip distance from the transport of rice hulls to the project
measurement plant will be determined based on actual average distances from the project
methods and activity site to the transport source. Average round trip distance will be
procedures to be aggregated annually.
applied:
QA/QC procedures to Consistency checks of the distance records provided by transporters will be
be applied: carried out against information from other sources (e.g. maps)
Any comment: Leakage would be considered if biomass residues are transported over an
average distance of more than 200 kilometres to the project site, (or a round
trip distance of over 400 kilometres), due to the implementation of the project
activity, otherwise it would be neglected.
28
B.7.2 Description of the monitoring plan:

>>
This section details the steps to be taken to monitor on a regular basis the GHG emissions reductions from
the project. The Monitoring Plan for this project has been developed to ensure that from the start, the
project is well organized in terms of collecting and archiving complete and reliable data.
CDM monitoring organization and management

Before the start of the crediting period, the organization of the monitoring team will be created. All
involved in the CDM project will be assigned with clear roles and responsibilities. The Project Developer
will have a designated person-in-charge on site that will be responsible for monitoring emissions
reductions of the project activity. All staff involved in the collection of data and records will be
coordinated by him.
Data recording and records keeping arrangements

Data monitored for CDM purposes will be recorded at the appropriate frequency. The CDM monitoring
manager will be responsible for managing the collection, storage and archiving of all data and records.
All relevant data will be archived electronically, and backed up regularly. All data required for
verification and issuance will be kept for at least two years after the end of the crediting period or the last
issuance of CERs of this project, whichever occurs later.
Data Quality Control and Quality Assurance

Data and records will be cross-checked by the project developer before it is stored and archived to
identify possible errors or omissions. Thus, data will have to be checked for anomalies and other
monitoring issues before it will be forwarded to the CDM consultant. The latter will perform regular final
check of the data and analyze project performance before any verification. Moreover, regular internal
audits will be conducted to assure that the project is in compliance with operational and CDM
requirements. Procedures will be developed to deal with possible monitoring data adjustments and
uncertainties, as well as emergencies.
Maintenance and Calibration of monitoring equipment

All equipment will be calibrated and maintained in accordance with the manufacturer‟s recommendations
to ensure accuracy of measurements. Records of calibration and maintenance will be retained as part of
the CDM monitoring system.
Staff training
Training is conducted on site to ensure that staff is capable to perform their designated tasks at high
standards. This will include specific training before the start of commissioning and further as necessary to
warrant that they understand the importance of complete and accurate data and records for CDM
monitoring.
Comprehensive on-the-job training on aspects on operations and maintenance will be provided by the
technology provider for a period of 24 months from the date of commissioning to the local engineers and
staff to ensure knowledge transfer. In addition to this, qualified personnel will be designated to handle
and operate equipment and machinery at the project site.
29
Project Activity Emissions Reductions

Baseline emissions reductions will be calculated based on the net electricity generated by the renewable
energy generating unit multiplied by the grid emission factor. The amount of electricity generated by the
project activity using rice hulls will be cross-checked with the calculated amount of electricity generated
based on specific fuel consumption determined ex-ante in the PDD and amount of rice hulls used.
Deductions will be made for project emissions due to consumption of coal, if any, and leakage due to
transportation of biomass, if applicable.
B.8 Date of completion of the application of the baseline and monitoring methodology and the
name of the responsible person(s)/entity(ies)
>>
The baseline study and the monitoring methodology were completed on 25/10/10. The entity determining
the baseline study and monitoring methodology as the Carbon Advisor is EcoSecurities, listed in Annex 1
of this document.
Personnel responsible for the baseline and monitoring of this project:
Name Entity Responsibility E-mail

Ms. Emma Olay EcoSecurities Project Manager Emma.olay@ecosecurties.com
Mr. Oman Singh EcoSecurities Project Manager Oman.singh@ecosecurities.com
Mr. Rohit Lohia EcoSecurities Technical Reviewer Rohit.lohia@ecosecurities.com
Mr. Pablo Fernandez EcoSecurities Team Leader Pablo@ecosecurities.com
30
SECTION C. Duration of the project activity / crediting period
C.1 Duration of the project activity:
C.1.1. Starting date of the project activity:

08/09/2007 – Date of first Purchase Order from Bataan 2020 to Thermax Limited, India.
C.1.2. Expected operational lifetime of the project activity:
25 years 0 months
C.2 Choice of the crediting period and related information:
C.2.1. Renewable crediting period
C.2.1.1. Starting date of the first crediting period:
01/01/2011 or the date of registration of the project activity, whichever is later.
C.2.1.2. Length of the first crediting period:
7 years 0 months
C.2.2. Fixed crediting period:
Not Applicable
C.2.2.1. Starting date
Not Applicable
C.2.2.2. Length:
Not Applicable
31
SECTION D. Environmental impacts
D.1. If required by the host Party, documentation on the analysis of the environmental impacts
of the project activity:
>>
An Environmental Impact Statement (EIS) submitted by Bataan 2020 to the local environmental office
(Environmental Management Bureau – Region III) served as an application for an Environmental
Compliance Certificate (ECC). The EIS is a comprehensive study of the significant impacts of the Bataan
2020 cogeneration power plant project to the environment. Part of the EIS discusses in detail the
mitigation and enhancement measures relating to land, water and air protection during and after
construction and operational periods. It also includes an environmental management and monitoring
plan/program which summarizes the proposed mitigation and enhancement measures; and the estimated
cost that Bataan 2020 will fund and implement to protect the environment. It also provides a schedule and
responsibilities of institutions identified to implement the said environmental management/monitoring
plan.
The most significant environmental impact that needs to be monitored and complied with for a power
plant project that utilises rice hulls are the stack emissions. According to specifications of the equipment,
the project will meet the local air quality standards of the Philippines. To handle fly ash, bag filters will
be provided for all the silos. Carbon monoxide emission will also comply with the emission standards.
Water quality impacts are considered minimal, as there is no significant amount of wastewater that will be
generated. To ensure its compliance with national government‟s environmental standards, the power plant
will be equipped with the following items to mitigate the hereunder environmental impacts.
Environmental Impacts Mitigating Measures/Equipment

Gaseous Emissions Fluidised Bed
Electrostatic Precipitator
Ash Handling System
Wastewater/Effluent Effluent Pit
On-Site Treatment
Solid Waste Generation Ash disposal System
Convert to liquid sodium silicate
The foregoing impacts are addressed in the project‟s EIS. Based on Department of Environment and
Natural Resources (DENR‟s) evaluation, an ECC was issued on 29 May 2007.
D.2. If environmental impacts are considered significant by the project participants or the host
Party, please provide conclusions and all references to support documentation of an environmental
impact assessment undertaken in accordance with the procedures as required by the host Party:
>>
With mitigation controls planned as part of the project design, construction and operation according to the
recommendations of the EIS, and the contributions made by the project to sustainable development at
local and national scale, the project is expected to have an overall positive impact on the local and global
environment. All negative environmental impacts are subject to mitigation measures as described above.
32
SECTION E. Stakeholders’ comments
E.1. Brief description how comments by local stakeholders have been invited and compiled:
>>
A stakeholders‟ consultation meeting was held on 03 March 2008 in the municipality of Abucay,
province of Bataan. Invitations were sent to concerned stakeholder groups and individuals prior to the
consultation meeting. The consultation meeting was attended by a broad spectrum of the locality, i.e.,
principally the barangay (village) and the municipality where the proposed project will be located. The
attendees are listed under Annex 7.
The proposed project was described in the context of the CDM framework, particularly the need to reduce
carbon emission thereby responding the problem of global warming. The potentials of the project to the
locality were likewise discussed.
After the presentation, participants were invited to present their views and to voice their concerns. The
stakeholders that made comments were Gugo Barangay Captain Rodolfo Garcia, SB Council Members
Mike Bugay and Ramon Poblete and Gugo Barangay Kagawad Bong Daniel. Their comments were
recorded and the minutes of the same are available.
E.2. Summary of the comments received:

>>
The open forum raised the following major concerns:
a) The barangay (lowest level of local government) officials were curious as to why the project
developer‟s Environmental Clearance Certificate (ECC) has been issued by the DENR regional office
without a barangay consultation first. According to the barangay captain, previous practice required an
initial consultation from the barangay government.
b) The stakeholders inquired whether the proposed project‟s technology has already been applied or use
in the country;
c) The emissions that will be generated from the proposed power plant; and
d) The benefits that will accrue to the host community (barangay, municipality, and province).
The first concern clarifies current operating procedures with respect to the issuance of the ECC. The
second issue refers to the experience, preferably local, regarding the application of the technology of the
proposed project. The third one is an assurance that there will be no dangerous emissions from the plant.
The last issue refers to what the host communities stand to gain from the proposed project.
Bataan 2020 representatives emphasised that the ECC was obtained following the law and approved rules
and regulations of the DENR. It was agreed that the necessary permits, including the ECC, will be
presented and made known to the concerned stakeholders, such as the barangay government. The project
developer cited that a cogeneration power plant project fired with rice hulls has been in operation in the
Northeastern Luzon region. This is the La Suerte Rice Mill 1MW Rice Husk Cogeneration Project located
in Isabela, Philippines. However, the Bataan and La Suerte project activities differ in industry, scale,
boiler design and technology.
The participants were assured that there will be no dangerous emissions, including ash. Ash as by-product
will be captured without being emitted to the air. Furthermore, ash from the power plant could be sold to
interested buyers.
33
The principal benefit to the host communities will be the continued operation of the paper mill resulting
from the operating savings that will be derived from its installation of a cogeneration power plant since
Bataan 2020 will no longer import electricity from grid. The continued operation will help maintain
present employment levels instead of lay-offs that may caused by cessation of business operations. Other
benefits include a market for rice hulls and a more efficient, less costly and environment-friendly manner
of disposing rice hulls.
E.3. Report on how due account was taken of any comments received:
>>
No negative comments were received during the consultation meeting and the local villages committed
that they will support the project in all possible ways.
34
Annex 1
CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY
Organization: Bataan 2020, Inc.
Street/P.O.Box: 226 Quirino Highway
Building: Baesa
City: Quezon City
State/Region: Metro Manila
Postfix/ZIP:
Country: Philippines
Telephone: +632 334 2960 to 67
FAX: +632 334 2921
E-Mail:
URL: http://www.bataan2020.net
Represented by:
Title: President
Salutation: Mr.
Last Name: Alfred
Middle Name: Y.
First Name: Huang
Department:
Mobile: +63917 8415808
Direct FAX: +632 813 5902
Direct tel: +632 813 5913 to 14
Personal E-Mail: ayh@bataan2020.net
Organization: EcoSecurities International Limited

Street/P.O.Box: 40 Dawson Street
Building:
City: Dublin
State/Region: Dublin
Postfix/ZIP: 02
Country: Ireland
Telephone: +353 1613 9814
FAX: +353 1672 4716
E-Mail: info@ecosecurities.com
URL: www.ecosecurities.com
Represented by:
Title: Director
Salutation: Mr.
Last Name: Browne
Middle Name:
First Name: Patrick James
Direct FAX:
Direct tel:
Personal E-Mail: cdm@ecosecurities.com
35
Annex 2
INFORMATION REGARDING PUBLIC FUNDING
This project will not receive any public funding from Annex 1 parties.
36
Annex 3
PROJECT TIMELINE
Date Event
15 February 2005 Confirmation by email to attend to CDM – DNA Multi-stakeholders
Consultation scheduled on 16 February 2005 in response to invitation from
Klima Team of the Manila Observatory on 14 February 2005
11 April 2005 CDM Proposal by a third party (PEI) to Bataan 2020 for its low-pressure
biomass rice hull boilers
26 February 2007 Proposal from EcoSecurities to Bataan 2020 that defines the CDM potential and
revenues of two different possible projects that could be undertaken by Bataan
2020, before the project activity plant was implemented.
23 March 2007 Completion/Submission of Environmental Impact Statement to the Department
of Environment and Natural Resources (DENR) – Region III office for the
application of Environmental Compliance Certificate
29 May 2007 Approval of Environmental Impact Statement. Issuance of Environmental
Compliance Certificate by DENR-Region III office
05 July 2007 Site Visit of EcoSecurities to Bataan 2020
10 August 2007 Signing of Emission Reduction Purchase Agreement (ERPA) between Bataan
2020 and EcoSecurities Group Plc.33
04 September 2007 Supply Agreement signed between Bataan 2020 and Thermax – the technology
provider for the cogeneration project
08 September 2007 Date of First Purchase Order of Bataan 2020 in favour of Thermax. This is
considered the project start date.
06 November 2007 Query submitted by EcoSecurities to UNFCCC on 06 November 2007,
Clarification on AMS I.C applicability (SSC_144)34
17 November 2008 Query submitted by Bataan 2020 to UNFCCC on 17 November 2008,
Clarification on thermal energy production capacity of cogeneration project
activity (SSC_247)35.
31 March 2009 Bataan 2020 and Thermax sign a two-year contract for Thermax to provide
expatriate engineers to supervise, manage and assist in O&M of the project
activity.
06 May 2009 Application for Host Country Letter of Approval (LoA)
20 May 2009 Validation Services Contract between EcoSecurities and Bureau Veritas
Certification Holding SAS
16 June 2009 Project posted for Global Stakeholder Process.
33
EcoSecurities Group Plc transferred all of its trading activities to EcoSecurities International Limited, effective 31
January 2009.
34
SSC-WG response F-CDM-SSCwg ver 01 SSC_144
35
SSC-WG response F-CDM-SSCwg ver 01 SSC_247
37
Annex 4
GRID EMISSION FACTOR INFORMATION
The Grid Emission Factor applied in this project activity is assessed according to the “Tool to calculate
the emission factor for an electricity system” version 2 with most recent official data made available for
conservativeness.
A. Calculation of Grid Emission Factor for Luzon-Visayas Electricity Grid 2006-2008.
1. Calculation of grid carbon emission factor EFCO2 for electricity from public supply
The grid emission factor EFCO2 is calculated based on the “Tool to calculate the emission factor for an
electricity system” version 2, (EB 50).
The EFCO2 is calculated as a combined margin (CM), consisting of the combination of operating margin
(OM) and build margin (BM) factors. Calculations for the combined margin were based on data available
after request from the Philippines Department of Energy (PDOE), for the years 2003 to 2008.36 The
Philippine Grid Code (2001) defines three national grid systems in the Philippines, which are the Luzon,
Visayas and Mindanao grids. The Luzon and Visayas grid are interconnected via a 440MW HVDC
transmission line at Leyte, and hydropower is transferred from Visayas to Luzon. While Visayas is
dominated by low-cost must-run plants, its total capacity is much lower than that of Luzon which is
fossil-fuel intensive. Thus, the Luzon-Visayas grid is reflective of the grid baseline. The data will be
made available for validation.
The calculation consists of seven steps, presented below.
Step 1. Identification of the relevant electric power system
The scope of this calculation includes the Luzon-Visayas electricity grid system.
Step 2. Choose whether to include off-grid power plants in the project electricity system
Option 1 of the tool has been selected to include only the grid power plants in the calculation. Isolated
“small-power utilities groups” (SPUG) and “embedded generators” that are not connected to the grid are
excluded in this assessment. This result in a more conservative calculation compared to the previously
published study.
Step 3. Selection of an operating margin (OM) method
The calculation is based on option (a) Simple OM, as the low-cost and must run (includes any hydro,
geothermal, wind, low-cost biomass, and solar generation) resources constitute 29% of total generation,
which is less than 50% of total grid generation in average of the five most recent years that data are
available (Table 6.2).
36
Latest grid data was made available by e-mail from PDOE dated 9th September 2009.
38
Fuel Type 2006 2007 2008 2006-20008 Percentage Cumulative

Average
Coal 14,658,617 14,976,159 13,928,566 14,521,114 29.0%
71%
Oil 1,966,356 2,862,288 2,968,176 2,598,940 5.2%
Natural Gas 16,365,960 18,789,414 19,575,855 18,243,743 36.4%
Geothermal 9,619,620 9,347,381 9,929,080 9,632,027 19.2%
Hydro 5,419,682 4,564,314 5,182,854 5,055,617 10.1% 29%
Wind 53,160 57,772 61,316 57,416 0.1%
Total 48,083,394 50,597,328 51,645,847 50,108,856 100.0% 100%
Table 6.2 - Grid Generation Statistics Of The Luzon-Visayas Grid (2006-2008).
The Simple OM was calculated using the full generation-weighted (ex-ante) average for the most recent 3
years (2006, 2007 and 2008) for which data is available.
Step 4. Calculation of the operating margin emission factor according to the selected method
The Simple OM emission factor (EFOM,simple,y) is calculated as the net electricity supplied to the grid by all
power plants serving the system, not including low-cost / must-run power plants / units, and based on data
on net electricity generation, the average efficiency of each power unit and the fuel type(s) used in each
power unit (Option A), as follows:
Where:
EFgrid,OMsimple,y = Simple operating margin CO2 emission factor in year y (tCO2/MWh)
EGm,y = Net quantity of electricity generated and delivered to the grid by power unit m in
year y (MWh)
EFEL,m,y = CO2 emission factor of power unit m in year y (tCO2/MWh)
m = All power units serving the grid in year y except low-cost / must-run power units
y = Three most recent years for which data is available at the time of submission of the
CDM-PDD to the DOE for validation (ex ante option).
Option A2 is applied where a power unit m only data on electricity generation and the fuel types used is
available, the emission factor should be determined based on the CO2 emission factor of the fuel type used
and the efficiency of the power unit, as follows:
Where:
EFCO2,m,i,y = Average CO2 emission factor of fuel type i used in power unit m in year y (tCO2/GJ)
ηm,y = Average nett energy conversion efficiency of power unit m in year y (%)
y = Three most recent years for which data is available at the time of submission of the
CDM-PDD to the DOE for validation (ex ante option)
39
The PDOE specifies the quantity of electricity supplied to the grid by each power unit, the fuel type used
and specifies the efficiency of the power plants serving the grid as the “full load heat rate”. Data on fuel
consumption is not available. Heat rate is the reciprocal of efficiency. The full load heat rate represents
the highest efficiency of the power plants, and it is therefore much more conservative than the average
efficiency of the power unit „m‟.
The relevant values for the types of fuels used in the electricity generation system of the Host Country are
summarised in Table 6.3. IPCC default values at the lower limit of the uncertainty at a 95% confidence
interval as provided in table 1.4 of Chapter1 of Vol. 2 (Energy) of the 2006 IPCC Guidelines on National
GHG Inventories are applied for the CO2 Emission Factor of fuels.
CO2 Emission Factor

Fuel
(kgCO2/GJ) (IPCC 2006)
Residual Fuel Oil 75500.00
Natural Gas (dry) 54300.00
Diesel 72600.00
Coal (Other Bituminous Coal) 89500.00
Table 6.3 - Summary Of Values For The Types Of Fuels Used In The Generation Plants Of The Host
Country37
Average MWh Emission factor OM Emission Factor

Years
Generation EFm,OM,y EFgrid,OM,y
2006-2008 35,363,797 21187824.14 0.599
Table 6.4 - Summary Of Operating Margin Emission Factor
Following the OM equations, EFgrid,OM,y = 0.599 tCO2e/MWh.
Step 5. Identification of the cohort of power units to be included in the build margin
The sample group of power units m used to calculate the build margin consists of either:
(a) The set of five power units that have been built most recently, or
(b) The set of power capacity additions in the electricity system that comprise 20% of the system
generation (in MWh) and that have been built most recently.
In this calculation, in accordance with the methodology, power plants registered as CDM project
activities should be excluded from the sample. „Northwind Power‟ is a CDM project activity, and is
excluded. The most recent power plants are shown in Table 6.5.
For 2008, the total electricity generated was 51,645 GWh. 20% of this could be satisfied with 9 most
recently built power stations, therefore the option (b) is selected with a total of nine power stations being
included (this results in a total generation of 13,135 GWh, or 25.43% of the total generation for 2007).
37
As country specific data are not available for the Host Country, the calculations are based on IPCC 2006 Guidelines for
National GHG inventories. Please refer to Volume 2: Energy, Chapter 1 – Introduction. http://www.ipcc-
nggip.iges.or.jp/public/2006gl/vol2.html
40
Plant Name Rated Plant Type 2008 (MWh) Original Year

Cap Commissioned
(MW)
Sevilla Hydroelectric Plant - Hydro 1,330 Nov 2008
Northern Negro Geothermal Plant 49 Geothermal on shutdown January 2007
20 MW Bunker (GBPC) 20 Fuel Oil 22,606 Feb 2006
12.5 MW Bunker (GBPC) 12.5 Fuel Oil - Aug 2006
5 MW Bunker (GBPC) 5 Fuel Oil 6,457 Sep 2006
PDPP III 100 Fuel Oil 130,995 transferred last 2005
Northwind Power*38 33 Wind 61,316 June 2005
Guimaras Power Project 3.4 Fuel Oil 6,955 April 2005
San Roque HE 345 Hydro 1,090,597 May 2003
San Lorenzo Nat Gas 500 Nat Gas 3,908,704 September 2002
Ilijan 1,200 Nat Gas 7,967,714 June 2002
Table 6.5 - Most Recently Built Power Stations In The Luzon-Visayas Grid.
In terms of vintage of data, Option 1 is selected. As a result, for the first crediting period, the build margin
emission factor is calculated ex-ante based on the most recent information available on units already built
for sample group m at the time of CDM-PDD submission to the DOE for validation. For the second
crediting period, the build margin emission factor will be updated based on the most recent information
available on units already built at the time of submission of the request for renewal of the crediting period
to the DOE. For the third crediting period, the build margin emission factor calculated for the second
crediting period should be used. This option does not require monitoring the emission factor during the
crediting period.
Step 6. Calculation of the build margin emission factor
The build margin emissions factor is the generation-weighted average emission factor (tCO2/MWh) of all
power units m during the most recent year y for which power generation data is available, calculated as
follows:
Where:
EFgrid,BM,y = Build margin CO2 emission factor in year y (tCO2/MWh)
EGm,y = Nett quantity of electricity generated and delivered to the grid by power unit m in year y
(MWh)
m = Power units included in the build margin
y = Most recent historical year for which power generation data is available
38
CDM Project Activity http://cdm.unfccc.int/Projects/DB/DNV-CUK1149535405.35/view
41
The CO2 emission factor of each power unit m (EFEL,m,y) is be determined as per step 4(a) for the simple
OM, using option A2.
Average
EFCO2 of EFCO2
CO2 Emission
Plant Name 2008 (MW) Fuel Type Fuel Efficiency (tCO2/
emission factor
(tCO2/TJ) MWh)
factor
Parameter EGm,y i EFCO2,i EFCO2,m,i,y ηm,y EFEL,m,y EFm,BM,y
Sevilla Hydroelectric
1,330 Hydro 0 0 - 0 0.0
Plant
20 MW Bunker
22,606 Fuel Oil 0.075500 0.075500 39.96% 0.6802 15376.0
(GBPC)
12.5 MW Bunker
0.0 Fuel Oil 0 0 0.0
(GBPC)
5 MW Bunker
6,457 Fuel Oil 0.075500 0.075500 39.96% 0.6802 4392.2
(GBPC)
PDPP III 130,995 Fuel Oil 0.075500 0.075500 41.88% 0.6490 85021.3
Guimaras Power
6,955 Fuel Oil 0.075500 0.075500 39.96% 0.6802 4730.6
Project
San Roque HE 1,090,597 Hydro 0 0 - 0 0.0
San Lorenzo Nat Gas 3,908,704 Nat Gas 0.054300 0.054300 52.09% 0.3752 1466727.6
Ilijan 7,967,714 Nat Gas 0.054300 0.054300 52.09% 0.3752 2989856.8
Total 13,135,358 4566104.5
Based on the table above, EFgrid,BM,y = 0.348 tCO2e/MWh.
Step 7. Calculation of the combined margin emissions factor
Finally, the combined margin grid emission factor (EFgrid,CM,y) is expressed as the weighted average of the
Operating Margin emission factor (EFgrid,OM,y) and the Build Margin emission factor (EFgrid,BM,y):
Where:
EFgrid,BM,y Build margin CO2 emission factor in year y (tCO2/MWh)
EFgrid,OM,y Operating margin CO2 emission factor in year y (tCO2/MWh)
wOM Weighting of operating margin emissions factor (%)
wBM Weighting of build margin emissions factor (%)
Where the weights wOM and wBM, by default, are 50% (i.e., wOM = wBM = 0.5) for the first crediting period,
and EFgrid,BM,y and EFgrid,OM,y are calculated as described in Steps 3 and 5 above and are expressed in
tCO2/MWh.
Therefore, the emission factor of the Luzon-Visayas grid, EFgrid,CM,y = 0.474 tCO2e/MWh.
This value is applied for estimation of baseline emissions from displacing grid electricity. EFgrid,CM,y =
EFCO2
42
Annex 5
MONITORING INFORMATION
Please refer to Section B.7
43
Annex 6
PHILIPPINES NATIONAL CDM CRITERIA ON SUSTAINABLE DEVELOPMENT
I. ECONOMIC DIMENSION
A.1 Provides livelihood and other economic opportunities in the community
 Job Creation. During the construction phase, the project is estimated to hire about 100 to 400
construction workers and labourers for a period of one (1) year during the construction period
Bataan 2020 paid about PhP25 million for the labour cost.
 New and substantial investment. The project will bring investment to the Bataan area. The
investment will trickle down to business establishments in the area through the contracts for
supply of construction materials, rental, and purchase of fabrication equipment during the
construction stage. Bataan 2020 have disbursed about PhP45 million from these activities.
 Provides new financial resources. The intent of the project to qualify under the CDM will bring
fresh capital of an average of PhP17.88 million per year for 10 years into the country which again
can be channelled to more productive activities by the project developer.
 Other benefits to the local community. About 12% of the CDM revenues will be given back to the
community annually in the form of (i) livelihood project and programs, (ii) medical missions, (iii)
support in agriculture by subsidizing their fertilizer requirements, (iv) educational support for
schools adjacent to the paper mill.
A.2 Provides proper safety nets and compensatory measures for the affected stakeholder
 The project activity provides numerous positive economic benefits and there are no foreseen
issues that require compensatory measures to affected stakeholders.
 The project activity will result in the decrease of use of 12.5 MW of electricity from the grid.
This will result to an extra 12.5 MW of electricity to be available for utilization by other users in
the area. This will help curb power fluctuations and outages that are commonly faced in the
province.
 Rice hulls are traditionally burned by vegetable farmers as the ash from these burning can be used
as soil conditioners. It is said that the ash also helps kill microorganisms and prevent grass growth
in vegetable farms. Based on tests and experience at a 1MW rice husk based cogeneration plant
and a CDM project in the province of Isabela (La Suerte Rice Mill), a portion of ash can are used
by local farmers as soil conditioner to improve plant growth which gives similar results as burned
rice husk. Nevertheless, there will still be significant quantities of rice hulls available in the
region for use.
 In addition, ash is used to produce sodium silicate. With the many uses of sodium silicate such as
cement uses, tiles manufacturing, welding rods, food preservation, metal repairs, automotive
repairs, aquaculture, timber treatment, concrete and masonry treatment, passive fire protection
(PFP) and refractory use; additional livelihood/employment could be generated for the local
community.
44
A.3 Promotes the use of cleaner, more efficient and environment-friendly technology in the
sector (e.g. renewable energy, waste management, reforestation, etc.)
 Rice hull is a carbon neutral fuel and the use of rice hull as fuel for generating heat energy and
power is therefore environment friendly. Also, the use of rice hull which is normally considered a
waste product and thrown in open dumpsites will allow for the avoidance of methane which
otherwise will simply go into the atmosphere if left to decay in open fields. Hence, the project
activity is considered both a renewable energy and a waste management solution. The use of rice
hull as a renewable energy resource will reduce carbon emissions from displaced bunker fuel oil
and grid electricity consumption, thus improving air quality and contributing to global climate
change initiatives. Moreover, the project will avoid open field dumping of waste and will be a
model for other manufacturing industries a new way of managing rice hulls and other solid waste
by using them for productive purposes.
A.4 Provides new financial resources
 Market expansion for farmers. The project will improve rice farmers‟ productivity with the new
market for rice hull that is usually a waste product of rice milling. The purchase of rice hull will
translate into additional income for farmers and creates job to rice hull suppliers and transporters,
as well. Rice hulls delivered from Nueva Ecija cost PhP1,400 per ton or PhP1.40 per kg. With a
total of 8 to 10 trips per day for 20 to 22 tonner trucks would translate to an additional income of
PhP246,400 per day.
 Aside from this, the project would displace energy consumption from the grid and diesel
generators, which in effect will be beneficial due to reduced electricity and diesel cost.
II. ENVIRONMENTAL DIMENSION
B.1 Complies with environmental policies and standards
 The project activity complies with environmental policies and standards set by the government. It
has been issued an Environmental Clearance Certificate (ECC) by the Department of
Environment and Natural Resources (DENR) on May 29, 2007. With regard to the operation of
the cogeneration plant, Bataan 2020 is awaiting the issuance of Permit to Operate it applied with
the DENR on 08 June 2009.

B.2 Improves local environmental (e.g. air, water, soil) quality
 As mentioned earlier, the project activity will improve local environment, particularly air quality.
As rice hull is used for fuel, dumping of same in open field will be reduced. This avoidance will
reduce emissions reduction from the escape of methane gas into the atmosphere. With the project
activity as model, other manufacturing industries could follow suit.
 The proposed project is environmentally safe as this will employ an atmospheric fluidized bed
combustion (AFBC) boiler technology that would ensure complete combustion of rice hulls. The
power plant will be equipped with the following items to mitigate the hereunder environmental
impacts to ensure its compliance with national government‟s environmental standards.
45
Environmental Impacts Mitigating Measures/Equipment

Gaseous Emissions Fluidized Bed
Electrostatic Precipitator
Ash Handling System
Wastewater/Effluent Effluent Pit
On-Site Treatment
Solid Waste Generation Ash disposal System
Convert to liquid sodium silicate
Fluidised beds will suspend solid fuels on upward-blowing jets of air during the combustion
process that will cause the turbulent mixing of gas and solids that will provide more effective
chemical reaction and heat transfer. The high temperature furnace would result to low ash/dust
quantities and remove chemical irritants. The AFBC will reduce the amount of sulphur emitted in
the form of SOx emission. The boiler will also be equipped with an electrostatic precipitator to
ensure that flue gas dust emission is within the existing allowable limits of the Clean Air Act. A
dense phase ash handling system will also be installed to facilitate dust free collection and
handling of ash residues from rice hulls. The ash handling system consists of 2 schemes: The bed-
ash handling system consists of bed ash removal from the bed ash coolers of the boilers. The bed
ash will then be fed to the bed ash silo. On the other hand, the fly-ash handling system consists of
fly-ash removal from the air heater, the boiler economizer bank and electrostatic precipitator
hoppers. Fly ash from the boiler will be brought to the fly ash silo. TSP content during burning of
rice hulls will comply with the maximum allowable TSP emission of 150 mg/Nm3. Bag filters for
all the silos will be provided to handle fly ash. Also, a stack height of 70 meters will be
constructed to ensure proper dispersion of gaseous emissions. Hence, particulates, SOx and NOx
release into the atmosphere through the chimney will be very low, below the regulation
thresholds for stack emissions. Carbon monoxide emission will comply with the emission
standard of 500 mg/Nm3.
Part of the liquid effluent will be used for power plant internal consumption such as dust
suppressor, ash conditioner, road cleaning and gardening, etc. An effluent pit will be provided in
the power plant area with effluent transfer pumps. The system design is done such that the
hardness does not increase to an extent that would cause heavily scaling in the system. The
effluent water quality will be analysed on site to ensure that all discharges conform to DENR
Administrative Order 35.
The solid waste or ash generated from the project amount is estimated at 0.5 tonnes per hour. The
wastes will be transported to the existing sludge/ash disposal area of the paper mill via dump
trucks. The sludge/ash disposal area has an area of 37,000 square meters. The ash can be
beneficially used as soil conditioners by vegetable farmers. It can also be turned into bricks or
sold to cement or glass plants for their silica requirements. Currently, excess ash are dumped 8
km away from the paper mill and is used as filling materials to restore a land that was quarried to
be re-used for agricultural purposes.
B.3 Promotes sustainable use of natural resources
 While the project is necessarily a natural resource, it promotes “green technology” and
sustainable development in the agriculture and energy sectors, thru increasing productivity of
farmers and enhancing energy self-sufficiency of the country by using rice hulls which otherwise
is considered agricultural waste as fuel for energy production.
46
III. SOCIAL DIMENSION
C.1 Provides education and training which build the capacities of local stakeholders
 The local stakeholders will benefit from the project activity thru:
a. Training by Thermax of about 80 to 90 employees of Bataan 2020 in operating the facility

thus introducing new skills to local constituents. Training cost is estimated at PhP2 to 3
million per month.
b. Educating over 26 stakeholders who attended the stakeholders‟ consultation regarding rice
hull cogeneration as environmentally friendly technology. Later, the project will be a
showcase where students from local schools can go for field trips and learn about how
potential waste materials such as rice hull can be utilized in a productive and environmentally
sound manner especially by a manufacturing industry that do not produce its own rice hull.
c. Enhancing local knowledge and awareness about the issues of climate change and ways by
which local stakeholders can contribute to reducing carbon emissions. Local leaders would
become more aware about the need for waste management within their locality and may be
encouraged to find better means of dealing with their waste products.
C.2 Provides vulnerable groups access to local resources and services
 Hiring up to 400 construction workers and laborers sourced from the local community will
provide transfer of technological know-how on the construction of rice hull cogen power plant.
The experience gained by these workers will in effect provide them with more job opportunities
as this technology becomes more popular in the future.
 The project activity will ensue that the use of 12.5MW of electricity will be decreased in the grid
which will then be freed for use by other users. In effect, preventions of common occurrences of
voltage drops, brownouts and blackouts in the area will be seen.
 Part of the ash generated can also be given to local folk for use as soil conditioner. In addition,
ash is used to produce sodium silicate. With the many uses of sodium silicate as mentioned
earlier, additional livelihood/employment could be generated from the ash to benefit the local
community.
C.3 Promotes local participation in the project
 100 to 400 local workers had been employed for plant construction
 About 80 new local employees will be hired for plant operations.
 The community‟s interest will be piqued and will create more knowledge by having interested
groups visit the plant.
 The community involved will gain the distinction for having an advanced biomass power plant
which is considered as the first of its kind.
47
Annex 7
STAKEHOLDER’S CONSULTATION MEETING

Abucay Café & Garden Restaurant, Abucay, Bataan
03 March 2008
Attendance Sheet
NAME DESIGNATION OFFICE

1. Rodolfo R. Garcia Barangay Captain Brgy. Gugo, Samal, Bataan
2. Jaime Manguiat Barangay Councilman Brgy. Gugo, Samal, Bataan
3. Bong Daniel Barangay Councilman Brgy. Gugo, Samal, Bataan
4. Conrado B. Apostol, Jr. Barangay Treasurer Brgy. Gugo, Samal, Bataan
5. Mellani M. Austria Daycare Worker Adamson Daycare Center
6. Ludivina A. Lazo Daycare Worker Gugo Proper Daycare Center
7. Ma. Victoria D. Abrique Daycare Worker Hacienda Daycare Center
8. Violeta M. Bugay Rural Health Midwife Adamson Health Center
9. Day Hazel G. Rodis Rural Health Midwife Gugo Proper Health Center
10. Rhea Tess Ramos Nurse Samal Rural Health Unit
11. Wilma B. Coprada Rural Service Intern Samal Rural Health Unit
12. Nora A. Medina Municipal Agricultural Officer Samal, Bataan
13. Onofre Olegario Barangay Councilman Brgy. Gugo, Samal, Bataan
14. Ma. Luisa Magtanong School Head Gugo Elementary School
15. Loreta C. Rosario KABAKA President Brgy. Adamson, Gugo, Bataan
16. Lorinda R. Poblete Head Teacher III - OIC Gugo Proper, Samal, Bataan
17. Crisalda C. Palad Head Teacher III Adamson Elementary School
18. Michael T. Bugay SB Council Member Committee on Environment
19. Romeo Poblete SB Member Committee on Environment
20. Ricardo Arligue Iglesia ni Kristo Gugo, Samal, Bataan
21. Danilo Z. Manzano Pastor Assemblies of God, Samal
22. Daisy M. Manzano Church Worker Assemblies of God, Samal
23. Zosimo Anace Senior Citizen Gugo, Bataan
24. Melanie E. Ozaeta Team Leader, TSD Bataan 2020
25. Robert S. Quezon Safety Officer Bataan 2020
26. Malou B. Sibolboro HRD Head Bataan 2020
48

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PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

CLEAN DEVELOPMENT MECHANISM

A. General description of the small scale project activity

B. Application of a baseline and monitoring methodology

C. Duration of the project activity / crediting period

Annex 2: Information regarding public funding

Annex 3: Project Timeline

Annex 4: Grid Emission Factor Information

Annex 5: Monitoring Information

Annex 6: Philippines National CDM Criteria for Sustainable Development

Annex 7: Stakeholders‟ Consultation Meeting – Attendance Sheet

CDM – Executive Board

Revision history of this document

Version Date Description and reason of revision

CDM – Executive Board

SECTION A. General description of small-scale project activity

A.1 Title of the small-scale project activity:

A.2. Description of the small-scale project activity:

CDM – Executive Board

A.3. Project participants:

United Kingdom of Great Britain EcoSecurities International

A.4. Technical description of the small-scale project activity

A.4.1. Location of the small-scale project activity:

A.4.1.1. Host Party(ies):

A.4.1.2. Region/State/Province etc.:

A.4.1.3. City/Town/Community etc

CDM – Executive Board

CDM – Executive Board

CDM – Executive Board

A.4.4. Public funding of the small-scale project activity:

CDM – Executive Board

SECTION B. Application of a baseline and monitoring methodology

B.2 Justification of the choice of the project category:

CDM – Executive Board

B.3. Description of the project boundary:

CDM – Executive Board

12.5 MW Rice Hull based Cogeneration Plant

Rice Rice Hull

30 TPH Steam Electricity

Common Steam Header

Grid Oil Rice

3 units - Total 2 units -

Figure 1: Baseline and Project boundary

B.4. Description of baseline and its development:

CDM – Executive Board

CDM – Executive Board

OVERVIEW OF PHILIPPINE RICE & RICE HULL PRODUCTION

CDM – Executive Board

Barriers due to Prevailing Practice (‘First of its kind’)

Prevailing Practice in terms of Technology

CDM – Executive Board

A Department of Energy Certificate of Endorsement (CoE) is a requirement under the Amended

CDM – Executive Board

CDM – Executive Board

Prevailing Practice in the Industry

CDM – Executive Board

CDM – Executive Board

B.6 Emission reductions:

B.6.1. Explanation of methodological choices:

CDM – Executive Board

BEy = EGBL,y * EFCO2

Project Emissions from on-site use of fossil fuels