Waste Heat Project at LSIL PDD Date 05 Feb

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM – Executive Board
page 1
CLEAN DEVELOPMENT MECHANISM

PROJECT DESIGN DOCUMENT FORM (CDM-PDD)
Version 03 - in effect as of: 28 July 2006
CONTENTS
A. General description of 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 project activity
Annex 2: Information regarding public funding
Annex 3: Baseline information
Annex 4: Monitoring plan
Appendix: Screen shots of excel sheets.

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SECTION A. General description of project activity
A.1. Title of the project activity:

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(a) Title of project activity: Waste Heat project at LSIL
(b) The current version number of document: 1
(c) The date of the document was completed: 05/02/2010
A.2. Description of the project activity:

>>
Description of project activity
(1) Purpose of the project activity
The purpose of project activity is to replace fossil fuel being used in reheating furnace (RHF), Continuous
hot dip Galvanising Line (CGL) furnaces and Coiler furnace at Lloyds Steel Industries Limited (LSIL) by
waste coke oven gas. The details on waste coke oven gas provided in this section.
The Coke Oven Gas is sourced from joint facility of Uttam Galva Metallics Limited (UGML) and LSIL.
UGML is being put up with sole intention to supply LSIL their entire finished product Pig Iron. LSIL will
use the pig iron for manufacturing of their product steel. UGML is within the same industrial facility
adjoining to LSIL manufacturing area and creating joint facility as they use common utilities like water,
Nitrogen, Oxygen etc.
The agreement between UGML and LSIL for creating joint facility where in the entire product of UGML
is supplied to LSIL and having common utilities including use of coke oven gas by LSIL will be made
available to DOE during validation process.
(a) Scenario existing prior to start of the implementation of project activity.
LSIL is a steel manufacturing company equipped with DR-EAF-Continuous slab caster based steel
plant of capacity about 600000 tonnes/year of steel. The fossil fuels are presently being fired in the
following furnaces.
(a.1) The Reheating Furnace for heating of ladle, turn dish etc uses Furnace oil for firing.
(a.2) Continuous hot dip galvanising line (CGL) furnaces

NON OX furnace is direct LPG fired
RTF furnace is indirect LPG fired
(a.3) Stecker Mill Coiler furnace

Fuel fired is LPG
The project activity is to replace the fossil fuel being presently used with waste coke oven gas.
(b) The project scenario.

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(b.1) LSIL proposes to replace this Reheating furnace (RHF) of capacity of 150 tonnes/hr which uses
furnace oil as fuel with new Reheating furnace of capacity 300 tonnes/hr which can use Coke Oven Gas
as fuel. The proposed new facility will result in increased plant of capacity of 1000000 tonnes/year of
steel.
(b.2) Continuous hot dip galvanising (CGL) and coiler furnaces which presently use LPG as fuel will
be modified to use coke oven gas instead of LPG. The modification will involve changing burners and
control system including piping of coke oven gas.
LSIL proposes to use only waste coke oven gas in the furnaces thus replacing the furnace oil/LPG
consumption.
The waste coke oven gas will be sourced from UGML who are putting 450 m3 blast furnace to produce
472000 tonnes/month of hot metal and 200000 tonnes/month of metallurgical coke. The coke oven gas is
obtained as by product during manufacturing of metallurgical coke which is used in blast furnace for
making hot metal.
UGML do not have any use for excess coke oven gas after using the coke oven gas in the blast furnace
and would be letting out into atmosphere after burning.
LSIL has entered into agreement with UGML to create the joint facility where LSIL will source the
entire finished product Pig Iron of UGML and common utilities are being used. LSIL will use the waste
coke oven gas which has the following composition and calorific value as delivered to LSIL at receiving
point by UGML. The agreement will be made available to DOE during validation.
Flow rate 12250 Nm3/h

Temperature 100 deg C
Pressure 0.95 kg/cm2
Composition CO 7.5 -9 % CO2 2.0-3.0% H2 55-57 % N2 2-6% CH4 24-26% CnHn 5%
Calorific value 16720 kJ/Nm3
This coke oven gas is fired instead of furnace oil in reheating furnace and coke oven gas will be fired
instead of LPG in Coiler furnace and CGL furnaces.
Scope of activities include the following installations
1 New reheating furnace capable of using coke oven gas for firing.
2 Modification of Coiler furnace for using coke oven gas instead of LPG.
3 Modification of CGL furnaces for using coke oven gas instead of LPG.
4 Pipe line to carry gas from gas holder to utility points of approximate length of 3 km.
Current status of project activity
1 The new reheating furnace capable of using coke oven gas is received and being installed.
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2 Piping work from UGML to LSIL utility points will be completed by March 2010.
3 Commissioning expected by April-June 2010 after the continuous availability of coke oven gas.
(c)Base line Scenario
The baseline is the same scenario existing prior to the start of implementation of project activity.
The base line is fossil fuel i.e. Furnace oil for RHF and LPG for Coiler/CGL furnaces are being fired in
pre project scenario and the same scenario of using fossil fuel for firing in furnaces would have been
continued in the absence of project activity.
(2) How the project activity reduces GHG emissions
The project activity reduces CO2 emissions from replacement of fossil fuels used in the furnaces by waste
coke oven gas which would have been otherwise flared by UGML before letting into atmosphere in the
absence of the project activity and in the project activity LSIL uses this waste coke oven gas in their
furnaces to provide required heat which would have been otherwise provided by firing fossil fuels like
furnace oil in reheating furnace and LPG in coiler and CGL furnaces. CO2 emission due to burning of
fossil fuel is avoided and thus achieves reduction in CO2 emissions.
In B.3 section it is explained that CO2 emissions due to base line fossil fuel are mainly considered and
CH4 and N2O are not considered to be on conservative side in calculating baseline emissions. In A.4.3
It is also explained that the Furnace oil for RHF and LPG for Coiler/CGL furnaces are being fired in pre
project scenario and the same are being replaced by WECM coke oven gas.
.
The total CO2 emission reduction for the entire crediting period of 10 years has been calculated as
1170800 tonne CO2 equivalent.
(3)The project activity will lead to sustainable development and promote sustainable Industrial growth by
conserving natural resources and preventing the thermal pollution even though no such statutory
requirement exists.
Social benefit to state
The project activity increases the employment within LSIL for skilled manpower and Professionals.
Skilled and unskilled labour will gain temporary employment while executing the project.
India is very deficient in crude oil and major portion of its oil requirements are met by imports. Hence
saving in the use of fossil fuel like furnace oil and LPG enables the scarce petroleum products to be made
available to the society for some other uses.
Economical Benefits to State
The project involves investment of around 600 million rupees and will involve more than 400 million
rupees capital equipment purchase. Engineering industry will benefit and provide employment
opportunity for professionals, skilled and unskilled people.
The state will generate revenue out of the manufacturing activities supported by the energy generation
and due to purchase of equipment for execution of project by way of Sales Tax; Excise Duty; Entry Tax
etc.
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India is facing shortage of oil leading to import of major requirement of its oil needs which consumes
valuable foreign exchange leading to petroleum products starvation and hence the project activity enables
the country to bridge this gap by reduction in demand on petroleum products by company and save
valuable foreign exchange.
Environmental Benefit
The Project activity is waste heat recovery based Project by utilizing waste heat from coke oven gases
coming from process and thus effectively saving environment of thermal pollution. In the absence of
project activity coke oven gases would have been flared by UGML leading to thermal pollution. The
project activity displaces heat from fossil fuel and hence reduces CO2 emission
A.3. Project participants:

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Name of the Party Involved (host) Private and/or Public entity (ies) Kindly indicate if the party
indicates Host party) Project Participant involved wishes to be
( as applicable) Considered as project
participant
(Yes/ No)
India (host)
Ministry of Environment and Forest Lloyds Steel Industries Limited No
(Private Entity).
A.4. Technical description of the project activity:
A.4.1. Location of the project activity:

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India
A.4.1.1. Host Party(ies):
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India
A.4.1.2. Region/State/Province etc.:
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Maharashtra
A.4.1.3. City/Town/Community etc.:
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Bhugano, Taluk Wardha.
A.4.1.4. Details of physical location, including information allowing the
unique identification of this project activity (maximum one page):
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Physical location
The project activity located at Lloyds Steel Industries Limited, Bhugano, Wardha Taluka & District,
Maharashtra. Latitude 200 42’ 4.45”, Longitude 780 37’ 15.24”. Nearest Railway station is Bhugano.
The plant is located approximately at 6 km from Wardha on Bhugano link road.

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A.4.2. Category(ies) of project activity:

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The project activity may be principally categorised in category –04 Manufacturing Industries as per
Scope of Projects activities enlisted in the “list of sectoral scopes and approved base line and monitoring
“methodologies” on the website for accreditation of “Designated operational Entities”.
The CDM PDD is based on approved methodology ACM0012 version 03.2 and Sectoral scope; 01 & 04
EB 51 “Consolidated baseline methodology for GHG emission reductions from waste energy recovery
projects”
A.4.3. Technology to be employed by the project activity:
1) Description of how the project is environmentally safe and sound technology, and know how transfer.
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The Reheating Furnace is being imported from Jiangsu Sky run Corporation China which is of proven
technology and all the technical details for operation of the equipment safely are provided by Jiangsu Sky
run Corporation. The modifications for Continuous hot dip galvanising line (CGL) furnaces and Coiler
furnace are being carried out by LSIL with new burners from indigenous suppliers. The technology is
proven. The installation is under CCOE and hence all approvals will be got from CCOE which ensures
that the installation is safe and of sound technology.
2) Purpose of project activity
The purpose of project activity is to replace fossil fuel being used in reheating furnace (RHF),
Continuous hot dip Galvanising Line (CGL) furnaces and Coiler furnace at Lloyds Steel Industries
Limited (LSIL) by waste coke oven gas.
LSIL proposes to use only waste coke oven gas in the furnaces thus replacing the furnace oil/LPG
consumption.
The waste coke oven gas will be sourced from UGML who are putting 450 m3 blast furnace to produce
472000 tonnes/month of hot metal and 200000 tonnes/month of metallurgical coke. The coke oven gas is
obtained as by product during manufacturing of metallurgical coke which is used in blast furnace for
making hot metal.
UGML do not have any use for excess coke oven gas after using the coke oven gas in the plant and
would be letting out into atmosphere after flaring.
LSIL has entered into agreement with UGML to create the joint facility where LSIL will source the
entire finished product Pig Iron of UGML and common utilities are being used. LSIL will use the waste
coke oven gas which has the following composition and calorific value as delivered to LSIL at receiving
point by UGML. The agreement will be made available to DOE during validation.

This coke oven gas is fired instead of furnace oil in reheating furnace and coke oven gas will be fired
instead of LPG in Coiler furnace and CGL furnaces.
(a) The scenario existing before project activity.

In the present system of steel manufacturing in LSIL is based on DR-EAF-Continuous slab based steel
plant. The rolling and processing lines include steckel mill, cold rolling mill and galvanising lines. The
plant is operating with DRI and scrap as major metallic inputs to the EAF.
The following furnaces are existing presently using fossil fuel
(a.1) The Reheating Furnace (RHF) for heating of ladle, turn dish etc uses Furnace oil for firing.
Capacity: 600000 tonnes/year
Make: MDH
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Fuel used: furnace oil

Specific Fuel consumption: 1380 MJ/tonne based on 3 years average
Year of installation: 1994
(a.2) Continuous hot dip galvanising line (CGL) furnaces

NON OX furnace is direct LPG fired
RTF furnace is indirect LPG fired
Fuel used: LPG
Specific Fuel consumption: 1210 MJ/tonne based on 3 year average.
(a.3) Coiler furnace

Fuel fired is LPG
Make: MDH
Fuel used: LPG
Specific Fuel consumption: 254 MJ/tonne based on 3 years average.
(b) The project scenario
(b.1) LSIL proposes to replace this Reheating furnace (RHF) of capacity of 150 tonnes/hr with new
Reheating furnace of capacity of 300 tonnes/hr which can use both Furnace oil/Coke Oven Gas. The
proposed facility will result in increased plant of capacity of 100000 tonnes/year of steel from present
600000 tonnes/year.
(b.2) Existing Continuous hot dip galvanising (CGL) and coiler furnaces will be modified to use coke
oven gas instead of LPG. The capacity of each furnace remains unchanged.
The Coke Oven gas which is a by product during manufacturing of metallurgical coke from coal which is
used in blast furnace to produce pig iron and excess coke oven gas after the use in coke ovens is a waste
gas which has to be let out to atmosphere and the waste coke oven gas has the following composition and
flow rate as delivered to receiving point of LSIL by UGML

UGML does not have any use for this excess coke oven gas in their process after their requirements are
met in coke oven batteries and have to let out into atmosphere after burning in the absence of project
activity.
The project activity will comprise the following scope of activities
Main equipment
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1 The pipe line from this gas tank to utility points of approximately 3 km.
2 The new reheating furnace.
The new reheating furnace (RHF) has the following specifications:

Make: Jiangsu Sky run Corporation
Capacity: 1 Million tones/year
Charging: cold/hot
Fuel used: Coke Oven Gas
Specific Fuel consumption: 1.3 GJ/tonne based on manufacturer specifications for coke oven gas
1.35 GJ/tonne for furnace oil based on manufacturer specification for
Furnace oil.
Fuel consumed = 9000 Nm3/hr
3 Coiler furnace and CGL furnaces modification in burner system to make them suitable for coke oven
gas firing. Make of burners is M/S Continental Thermal Engineers, Chennai, India.
Coiler furnace:
Specific Fuel consumption: 1210 MJ/tonne based on 3 year average
Fuel Consumption: 500 Nm3/hr of coke oven gas.
CGL furnaces
Fuel Consumption: 2550 Nm3/hr of coke oven gas.
The fuel consumption being monitored by electronic meters.
(c) Base line Scenario
The base line is fossil fuel i.e. Furnace oil for RHF and LPG for Coiler/CGL are being been fired in pre
project scenario and the same scenario of using fossil fuel for firing in furnaces would have been
continued in the absence of project activity as it is business as usual scenario.
c. a) Age and average life time of equipment
LSIL is a steel manufacturing company equipped with DR-EAF-Continuous slab caster based steel plant
of capacity about 600000 tonnes/year of steel. The fossil fuels are presently being fired in the following
furnaces.
1 The Reheating Furnace (RHF) for heating of ladle, turn dish etc uses Furnace oil for firing.
2 Continuous hot dip galvanising line (CGL) furnaces fuel used is LPG. Capacity 250000 tonnes/year
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3 Coiler furnace, Fuel fired is LPG, Capacity: 400000 tonnes/year
Fuel consumption and production from furnace are monitored.
Normal life of steel mill equipment is 30 years as observed in industry. Reheating furnace is new. CGL
furnace and coiler furnace are approximately 16 years in operation. Expected balance life for these
furnaces is about 14 years.
c.b) how emission reductions are achieved.
The project activity reduces CO2 emissions from replacement of fossil fuels used in the furnaces by
Waste coke oven gas would have been otherwise flared by UGML before letting into atmosphere in the
fossil fuel is avoided and thus achieves reduction in CO2 emissions.
c.c) Heat energy generated in the project activity.
The Coke Oven gas which is a by product during manufacturing of metallurgical coke from coal which is
used in blast furnace to produce pig iron and excess coke oven gas after the use in coke ovens is a waste
gas which has to be let out to atmosphere and the waste coke oven gas has the following composition and
flow rate as delivered to receiving point of LSIL by UGML

UGML does not have any use for this excess coke oven gas in their process after their requirements are
met in coke oven batteries and have to let out into atmosphere after burning in the absence of project
activity.
The heat generated using coke oven gas is calculated as follows:
Heat from coke oven gas: 12250 x 4000 x 4.18 = 2.0482 x 10 8 kilojoules/hr
Heat produced by coke oven gas /year = 17942.2 x 10 8 kilojoules/year.
The use in furnaces expected as follows:
S No Description Reheating CGL Coiler Reference

Furnace furnaces Furnace document
1 Production 1000000 250000 400000 Manufacturer

capacity specifications
tonnes/year
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2 Base line Furnace LPG LPG

fuel oil
3 Specific 1350 1210 254 Manufacturer
heat specification
requirement for RHF and
MJ/tonne for CGL/Coiler
furnaces
3 years average
4 Heat 13.5 X 108 3.025X 1.016X
provided by 108 108
coke oven
gas MJ
5 ∑ ∑HG j y 17.541 X 10 8 MJ/Year
A.4.4. Estimated amount of emission reductions over the chosen crediting period:
Years Annual estimation of emission
reductions in tonnes of CO2eq
2010 117028
2011 117028
2012 117028
2013 117028
2014 117028
2015 117028
2016 117028
2017 117028
2018 117028
2019 117028
Total estimated reductions
1170280
(tonnes CO2 e)
Total number of crediting years 10
Annual average over the 117028
crediting period of estimated
reductions ( tonnes CO2 e)
A.4.5. Public funding of the project activity:
>> No public funding from parties included in Annex-I is available for the project activity. No ODA
funds are used in project activity.
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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
project activity:
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Title of approved methodology: “Consolidated baseline methodology for GHG emission reduction from
energy recovery projects”
Methodology No &Version : ACM 0012, Version 03.2, Sectoral Scope: 1&4 EB 51.
Other methodologies ACM 0012

draws upon : 1 “Tool for the demonstration and assessment of additionality”
(Version 05.2) EB 39.
B.2. Justification of the choice of the methodology and why it is applicable to the project
activity:
>>
The methodology sets out two types of project activity.
Type 1 All the waste energy in identified WECM stream, that will be utilized in the project activity, is, or
would be flared or released to atmosphere in the absence of project activity at the existing or new facility.
The waste energy is an energy source for
. Cogeneration or
. Generation of electricity or
. Direct use as process heat source or
.For generation of heat in element process (e.g. steam, hot water, hot oil, hot air) or
. For generation of mechanical energy
The project activity is for direct use as process heat source in furnaces and hence falls in type1 category
direct use as process heat source. The identified WECM is excess waste coke oven gas.
The methodology lists out following applicable conditions
Applicable conditions of Methodology How the project activity meets the conditions
If project activity is based on use of waste pressure Not applicable as project activity is for direct use as
to generate electricity, electricity generated using process heat source.
waste gas pressure should be measurable
Energy generated in the project activity may be The project activity generates heat for use in
used within the industrial facility or exported furnaces from WECM and the generated heat is
outside the industrial facility used within the industrial facility. UGML has no
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use for excess WECM after using in coke oven

batteries, WECM is being sourced to LSIL as an
energy source as per agreement to form joint
industrial facility.
The electricity generated in the project activity may Not applicable as the project activity is for direct
be exported to grid use of WECM as process heat source
Energy in the project activity can be generated by Energy in the form of heat is being generated and
the owner of the industrial facility producing waste used by LSIL within the same industrial facility.
gas/heat or by a third party (e.g.ESCO) within the UGML has no use for excess WECM after using in
industrial facility. coke oven batteries, WECM is being sourced to
LSIL as an energy source as per agreement to form
joint industrial facility.
Regulations do not constrain the industrial facility Regulations do not constrain UGML generating
generating waste energy from using the fossil fuels waste energy from using the fossil fuels being used
being used prior to the implementation of project prior to the implementation of project activity.
activity
The methodology covers both new and existing LSIL is existing plant. The production capacity of
facilities. For existing facilities, the methodology RHF is being expanded to 1 million tonne of
applies to existing capacity, as well as to planned steel/year from 0.6 million tonne of steel/year
increases in capacity during the crediting period. If before the project activity by replacing the old RHF
capacity expansion is planned, the added capacity which uses fossil fuel with new Chinese make
must be treated as a new facility. RHF. Hence it is treated as new facility. CGL
furnaces and coiler furnace are being modified and
hence they are existing facility.
The emission reductions are claimed by generator The CDM credits will be claimed only by LSIL
of energy using waste gas/heat who generate process heat using waste coke oven
gas.
In case the energy is exported to other facilities an Not applicable as process heat generated will be
agreement is signed by the energy generation plant used for captive consumption only.
with recipient plants that emission reductions
would not be claimed by recipient plants for using
a zero emission source
For those facilities and recipients included in the LSIL is replacing the present RHF with new RHF
project boundary, which prior to the with increased capacity and hence can be treated as
implementation of project activity generated energy new facility.
on site, the credits can be claimed for a minimum Normal life of steel mill equipment is 30 years as
of the following periods observed in industry. CGL furnace and coiler
. The remaining life time of equipments currently furnace are approximately 16 years in operation.
being used. Expected balance life for these furnaces is about 14
. Credit period years.
The PDD has been developed for fixed crediting

period of ten years.
Waste gas that is released under abnormal The PDD does not take into consideration any
operation of the plant shall not be accounted. waste gas released under abnormal conditions
Cogeneration is from combined heat and power and The project activity is for process heat generation
not Combined cycle mode of electricity generation only.
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The waste energy utilized in project activity was Coke oven Gas used in project activity is surplus
flared or released into the atmosphere in the after providing for internal use of UGML. UGML
absence of project activity. This shall be proven by has no further use in the process and would have
either one of the following flared through chimney in the absence of the
1 By direct measurements of energy content project activity. The same can be proven from site
2 Energy balance checks by DOE.
3 Energy bills
4 Process plant manufacturer’s original
specifications
5 On site checks by DOE
The project activity meets the applicability conditions set out in approved methodology
The other conditions of methodology are met by the following steps
1. The base line calculations for CO2 emission reduction are in line with approved methodology and
are calculated using CEA data provided in CO2 data base Version 5.0 November 2009 available in CEA
web site www.cea.nic.in.
2. By successful operation of project activity, the project activity will be able to displace/ substitute
electricity of grid with an emission reduction of 117028 tCO2/annum (Ref. Section- B 6.3).
3. The project activity adds no additional GHG emission.
Hence it is concluded that the project activity meets the conditions set out in selected approved
methodology.
B.3. Description of the sources and gases included in the project boundary:
>>
In line with methodology, the project activity is for the recovery of waste heat from coke oven gases for
generation of process heat for direct use as heat in furnaces.
In the base line scenario, the heat would have other wise been generated by fossil fuel like furnace oil and
LPG.
In line with methodology the project boundary comprises of the RHF, CGL and Coiler Furnaces, piping
for coke oven gas
As per the approved methodology the geographical extent project boundary shall include the following:
1 The industrial facility where waste energy is generated (coke oven gas), that is, UGML
Project activity has no control over waste gas quantity and quality like flow and temperature. , Gas holder
is provided by UGML for temporary storage.
2 The facility where process heat in element process/steam/electricity are generated (generator of process
heat/steam/electricity). Equipment providing auxiliary heat to the waste heat recovery process shall be
included within the project boundary:
That is the actual project activity comprises of burning coke oven gas in furnaces where project
participant has full Control.
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3 The facility/s where the process heat in element process/steam/electricity is used (the recipient plant(s)
and /or grid where electricity is exported. Not applicable as the project activity is for providing in house
requirement of direct heat to furnaces.
Schematic for project boundary is as below.
CGL 1 & 2
2550 m 3/hr
COILER FURNACE
500 m3/hr
RHF
9000 m3/hr
RECEIVING
POINT OF
LSIL
PROJECT ACTIVITY BOUNDARY

12250 Nm3/hr
0.95 kg/Cm 2
100°C
Approximate pipe line : 3 km
16720 Kj/Nm3
Table 1: Summary of gases and sources included in the project boundary, justification explanation where
gases and sources are not included.
Source Gas Included? Justification /

Explanation
Electricity generation, grid or captive source. CO2 Excluded Not
applicable.
CH4 Excluded Not
applicable.
N2O Excluded Not
applicable.
CO2 Included Main
emission
source
CH4 Excluded Excluded for
simplification.
Fossil fuel consumption in furnace for thermal energy This is
conservative.
N2O Excluded Excluded for
simplification.
This is
Baseline
conservative.
CO2 Excluded Not
Fossil fuel consumption in cogeneration plant
applicable.
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CH4 Excluded Not

applicable.
N2O Excluded Not
applicable.
CO2 Excluded Not
applicable.
Base line emissions from generation of steam used in the flaring CH4 Excluded Not
if any. applicable.
N2O Excluded Not
applicable.
Supplemental fossil fuel consumption CO2 Excluded Not
at project plant applicable as
No extra fuel
or support
fossil fuel
is fired.
N2O Excluded Not
applicable
Supplemental electricity consumption CO2 Excluded Not
at project plant applicable as
No
supplemental
electricity
consumed
CH4 Excluded Not
applicable
N2O Excluded Not
applicable
CO2 Excluded Not
applicable as
No captive
electricity is
Electricity import to replace captive electricity which was generated
consumed
e gas in absence of project activity
Project Activity
CH4 Excluded Not

applicable
N2O Excluded Not
applicable
Project emissions from cleaning of gas CO2 Excluded Not applicable
as waste gas
cleaning not
required
CH4 Excluded Not applicable
N2O Excluded Not applicable
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B.4. Description of how the baseline scenario is identified and description of the identified
baseline scenario:
>> Identification of baseline scenario.
The baseline scenario is identified as the most plausible scenario among all realistic and credible
alternatives.
Realistic and credible alternatives should be determined for:
. Waste energy use in the absence of the project activity.

. Heat generation in the absence of the project activity.
While determining the baseline scenario the project participant shall identify the realistic and
credible alternatives to the project activity, which would provide output equivalent to combined output of
all the sub systems in the project scenario. Therefore the alternatives should provide the same heat output
as in the project activity and should include the alternate use of the waste gas heat utilised in the project
activity.
The project Participant shall exclude baseline options that:

. do not comply with legal or regulatory requirements or
. depend on fuels that are not available on the site.
The project participant is required to provide evidence and supporting documents to exclude
baseline options that meet the above mentioned criteria. The methodology provides 4 steps to
to determine baseline.
Step 1: Define the most possible baseline scenario for the generation of heat and electricity using
baseline options and combinations.
The baseline candidates should be considered for following facilities.
. For the industrial facility where the waste energy (coke oven gas) is generated UGML and
. For the facility where the energy is produced and consumed i.e.LSIL; and
Hence Baseline study has been carried for project proponent LSIL and UGML.
Baseline Realistic and credible LSIL UGML

options alternative
W1 WECM is directly vented to Not applicable. Not applicable.
atmosphere without
incineration
W2 WECM is released after Not applicable. Applicable. UGML who
incineration or waste heat is generate waste gases
released to atmosphere or would have flared the
Waste gas pressure energy is waste gases before
not utilized. releasing to atmosphere in
the absence of project
activity as UGML does
not have any use of the
excess waste gases.
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W3 Waste energy is sold as an Not applicable. Not applicable. UGML

energy source. has no use for excess
WECM after using in
coke oven batteries,
WECM is being sourced
to LSIL as an energy
source as per agreement to
form joint industrial
facility.
W4 Waste energy is used for Not applicable as WECM Not applicable.

meeting energy demand. is not generated by LSIL. UGML does not have any
further use of WECM and
UGML will send waste
gases to atmosphere after
flaring in the absence of
project activity.
W5 A portion of waste gas Not applicable. Not applicable as no
produced at the facility is electricity is generated
captured and used for captive using waste gas.
electricity generation while UGML which generates
the rest of the waste gas WECM uses part of
produced at the facility is WECM to generate heat
vented/flared. in their facility. UGML
would have flared WECM
in the absence of project
activity at LSIL.
Surplus WECM is
sourced to LSIL which is
a part of joint industrial
facility as energy i.e heat
source for their furnaces
in the process. LSIL is the
project proponent as LSIL
is sourcing and using
WECM to generate heat
in the furnaces in steel
making process as per
agreement to form joint
industrial facility.
W6 All the waste gas produced at Not applicable. Not applicable as no
the industrial facility is electricity is generated
captured and used for export from waste gas.
electricity generation UGML which generates
WECM uses part of
in their facility. UGML
would have flared WECM
page 19

activity at LSIL.
Surplus WECM is
sourced to LSIL which is
a part of joint industrial
facility as energy i.e heat
source for their furnaces
in the process. LSIL is the
project proponent as LSIL
is sourcing and using
in the furnaces in steel
making process.
H1 Proposed project activity not LSIL has incurred losses Not applicable as UGML
undertaken as a CDM when the steel industry does not have any further
activity. faced acute recession a use of WECM.
few years back. The
company has accumulated
losses and is under BIFR
(Board of Industrial and
Financial Restructure)
with debt restructuring of
liabilities. Hence the
company faces the
financial barrier due to the
non availability of fresh
funds to carry out
expansion activities both
from financial institutes
and equity market.
Hence LSIL promoters
had to arrange privately
raised loans to undertake
the project activity. These
loans carry higher rate of
interests compared to
institutional loans. In the
absence of CDM benefits
the project activity could
not be implemented as
CDM benefits enable the
promoters to convince
private lenders on
viability of the project
activity.
H2 On –site or off-site Not applicable as Not applicable.
existing/new fossil fuel fired presently only fossil fuel
cogeneration plant is being used currently to
page 20
provide heat in the

process. LSIL does not
have any cogeneration
plant based on fossil fuel.
H3 On –site or off-site Not applicable as LSIL do Not applicable.
existing/new renewable not have any cogeneration
energy based cogeneration plant based renewable
plant energy.
H4 An existing or new fossil fuel Applicable. Presently Not applicable.
based furnaces. only fossil fuel is used to
provide heat in the
process. LSIL will
continue to use fossil fuel
activity.
H5 An existing or new Not applicable as Not applicable.
renewable or other waste presently only fossil fuel
energy based existing is used to provide heat in
furnaces the process.
H6 Any other source such as No such heat source is Not applicable.
district heat available
H7 Other heat generation No such alternative source Not applicable.
technologies (e.g heat pumps is available or feasible as
or solar energy) the steel making process is
energy intensive and direct
use of large amount of heat
is required in concentrated
fashion.
H8 Steam/process heat Not applicable as WECM Not applicable.
generation from waste available has to be used
energy, but with lower with maximum efficiency
efficiency. as WECM quantity is
limited.
H9 Cogeneration with waste Not applicable as the Not applicable.
energy but a lower project activity is not for
efficiency. cogeneration.
Step 2: Identify the fuel for the baseline choice of energy source taking into account the national
and/or sectoral policies as applicable
The base line is fossil fuel (Furnace oil for RHF furnace and LPG for Coiler and CGL furnaces) as the
fossil fuel being used as energy source from the inception of the manufacturing facilities. There is no
shortage of furnace oil or LPG as the same are available on demand from the refineries. The refineries use
both indigenous and imported crude oil to generate the fossil fuels.
STEP 3:
page 21
Step 2 and/or Step 3 of the latest approved version of the “ Tool for the demonstration and
assessment of additionality ’’ shall be used to identify the most plausible baseline scenarios by
eliminating non feasible options
Section B.5 covers the stepwise demonstration of additionality as per the “Tool for the demonstration
and assessment of additionality version 05.2 EB 39 ’’. We have demonstrated the additionality based on
step 3.
STEP 4: If more than one credible and plausible alternative scenario remain, the alternative with
the lowest base line emissions shall be considered as the most likely baseline scenario.
Project scenario: Generation of heat
Scenario Baseline option for LSIL

Waste gas Heat
energy
1 W2 H4
In step1 all the credible alternatives for waste gas and waste heat were considered. In the absence of
project activity UGML would have vented through chimney the excess waste coke oven gas as UGML do
not have further requirements in the process (W2) and LSIL would continue to use fossil fuel for
providing heat in their furnaces (H4).
Base line
The base line is fossil fuel i.e. Furnace oil for RHF and LPG for Coiler/CGL furnaces are being been fired
in pre project scenario and the same scenario of using fossil fuel for firing in furnaces would have been
continued if waste coke oven gas is not available.
The project activity reduces CO2emissions from replacement of fossil fuels used in the furnaces by waste
coke oven gas which would have been otherwise burnt by UGML before letting into atmosphere in the
fossil fuel is avoided and thus achieves reduction in GHG emissions.
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 CDM project activity (assessment
and demonstration of additionality):
It is required to describe how the anthropogenic emissions of GHG by sources are reduced below those
that would have occurred in the absence of registered CDM activity. The proposed CDM project activity
is designed to generate heat from the waste coke oven gases emitting out of an established industrial
manufacturing process i.e. coke oven complex which would have been let into atmosphere after burning
in the absence of project activity . The reduction in GHG emissions due to burning of fossil fuel is
page 22
achieved by using only the waste coke oven Gases to generate heat whereas in the absence of the
proposed project activity heat requirement would have been met by burning fossil fuel.
It is required to explain how and why the proposed project activity is additional and therefore not the
baseline scenario in accordance to the selected baseline methodology.
As per the decision 17 / CP.7 AND 18/CP.9 a CDM activity is additional, if anthropogenic emissions of
GHGs by sources are reduced below those that would have occurred in the absence of registered project
activity. The tool for the demonstrations and assessment of additionality (version 05.2) EB 39 requires the
project participant to demonstrate and assess additionality, as per the steps given below:
1) Identification of alternative to project activity.

2) Investment analysis to determine that the project activity is either 1) not the most economically or
financially attractive, or 2) not economically or financially feasible.
3) Barrier analysis.
4) Common practice analysis.
We have discussed realistic and credible alternatives available to project activity in B.4 and have come to
conclusion that fossil fuel is base line option as the fossil fuel is being replaced by using waste coke oven
gas as direct heat source. We hereby proceed to establish the additionality of proposed project activity
using “the tool for the demonstration and assessment of additionality” (version 05.2) EB 39.
As per the guidelines for PDD preparation it is needed to demonstrate the consideration of CDM
benefits were seriously considered if the starting date of project activity is before validation date.
LSIL board met on 25/10/2008 and discussed the feasibility of waste coke oven gas from UGML being
used instead of furnace oil in reheating furnace. The chairman informed the board about clean
development mechanism and CDM benefits will be available if company applies for this project. After
deliberations it was decided to and apply for CDM registration.
In line with requirement of CDM a letter Notification regarding CDM status dated 30/10/2008 was sent to
UNFCCC Secretariat by letter and by email to cdmregistration@unfccc.int on and acknowledgement
from UNFCCC received on 21/11/2008. A letter of notification regarding CDM status was delivered to
CDM Authority of India by hand delivery.
The extracts of the board discussions are as follows:
1 The chairman informed the board regarding the availibilty of waste coke oven gas from near by Uttam
Galva Metallics Limited (UGML) plant and proposal received from UGML for using such waste coke
oven gas reheating furnace of Lloyds Steel Industries Limited
2 He further informed the board that this waste coke oven Gas heat can be utilised to generate heat in
reheating furnace to heat the slabs instead of furnace oil for which Clean Development Mechanism
(CDM) benefits available and these benefits will make the project viable. The project will generate some
steam by more efficient use of waste heat in reheating furnace and this steam will be utilized in process
replacing coal based steam and hence will also be eligible for CDM benefits.
page 23
3 He further informed the board that to avail such CDM benefits it is desirable to apply to appropriate
authorities for CDM registration and CDM benefits would make project viable.
The extracts of the board meeting will be made available to DOE.
The tool for the demonstration and assessment of additionality version 05.2 outlines four steps to
demonstrate additionality.
Time line of activities
Time line of activities of Project Activity Time line of activities for CDM registration
Board Resolution 25/10/2008 Board resolution 25/10/2008
Agreement with Notification regarding 21/11/2009
UGML 15/01/2009 CDM project activity
to UNFCCC
Starting of pipe line 01/11/2009 Appointment of DOE 12/01/2009
laying work for validation
Expected receipt of 25/12/2009 Submission of PDD to 10/04/2009
Reheating Furnace DOE for pre
validation check
Expected date of 28/02/2010 DOE Comments 10/06/2009
completion of piping receipt after pre
and storage tank work validation check
Installation of 25/03/2010 DOE confirmation 10/01/2009
reheating furnace that PDD can be
resubmitted
Modification of Coiler 25/03/2010 PDD resubmission 23/01/2009
and CGL furnaces To DOE for
validation
Expected date of 14/04/2010 to
commissioning 15/6/2010.
STEP 1 - Identification of the alternatives to the project activity considered with current laws
and regulations
Sub-Step 1.a Define alternatives to the project activity:
Identify realistic and credible alternatives In section B.4 all the possible alternatives have been
Proposed activity not undertaken as CDM discussed for the alternatives recognised were:
project activity.
1 The methodology lists six realistic and credible
All other plausible and credible alternative alternatives for waste gas and the alternative to vent
continuation of current situation to atmosphere the waste coke oven gases after
flaring was the only option in the absence of project
activity for UGML.
2 The methodology lists nine realistic and credible

alternatives for heat generation. The only credible
alternative in base line is using fossil fuel which is
page 24
the continuation of current situation in the absence

of project activity for LSIL.
Step 1.b Consistency with mandatory laws and regulations:
1 Alternative shall be in compliance with All the alternatives are in compliance with current
legal and regularly requirements. legal and regulatory requirements.
Additionality tool provides the option of selecting Step 2 or Step 3. LSIL select step 3 and hence proceed
to Step 3.
STEP –3 Barrier analysis to show additionality.
Sub-Step 3.a Identification of barriers that would prevent the implementation of the type of the
project activity.
Investment
barriers
Debt funding is LSIL has incurred losses when the steel industry faced acute recession a
not available for few years back. The company has accumulated losses and is under BIFR
this type of (Board for Industrial and Financial Reconstruction, Government of India)
3.a.1 proposed project with debt restructuring of liabilities. Hence the company faces the financial
activity. barrier due to the non availability of fresh funds to carry out expansion
activities both from financial institutes and equity market. The company’s
finance demands go through close scrutiny of the concerned financial
institutions and have not been able to secure institutional loans for project
activity. The details of company financial are as follows
Details of company are as follows
Nature of company:
LSIL is a public limited having two divisions. Steel division manufactures

steel products in Wardha plant .Engineering division manufactures
specialised equipment for chemical,petrochemical,steel,defence ,power
plant etc
Financials of company
(Rs in Millions)
2008-09 2007-08
Sales 28415.644 24773.629
Profit (loss) after tax for the year(164.8545) (46.8921)
Profit(loss) brought from previous
year (12631.012 ) ( 12162.091)
payment made as per
debt restructuring 461.4 826.7
distribution of share holding

page 25
promoters 18.51 20.43

financial institutions/Banks 12.83 3.76
MFs/UTI 0.46 0.51
FII 0.20 0.22
Others 68.00 75.08
Paid up equity 2111.488 1911.462
Promoters: Mr Mukesh Gupta, Mr Rajesh Gupta, Mr B.L.Agarwal by

themselves and through their associate companies.
When LSIL approached for finance of project activity, the financial

lenders advised that the loans can not be sanctioned:
1 As the project activity is an in house project not involving any cost
benefits the loans can not be sanctioned.
2 The company has accumulated losses and is under debt restructuring
with BIFR.
The financial lenders refusal / advice letter will be made available to DOE.
As the debt funds were not available from banks for the project activity the
project proponent has to raise the debt funds from private investors at higher
interest than lending rates of banks.
No access to LSIL have not received any foreign assistance and they are not in a position
international to access the international capital markets.
capital markets
due to real or
perceived risks.
How CDM CDM revenues help to make the project activity more financially feasible
revenues help to and help convincing the private investors to lend funds for the project
alleviate the activity.
above barrier
Whether fossil This is business as usual situation with no investment required. Hence the
fuel based heat capital expenses are not involved and the economic barrier is not faced.
generation face
the barrier
3.a.b Technological
barrier
1 Skilled and or As Coke oven gas is highly poisonous gas the workers operating in the area
properly trained are to highly skilled. Project participant is not having such skilled workers
labour not and they have to be recruited. The skilled persons are not available in the
available area as steel plants are not located near by where coke oven gas is generated
and used. This can be supported by plant record of employment related
matters.
How CDM CDM revenues will enable the company to overcome the barrier partially by
revenues help to providing higher wages and other facilities to attract skilled people and also
alleviate the send existing staff for training and developing necessary skills. But as the
above barriers company has accumulated losses making available higher wages to certain
set of people can lead to internal worker problem on parity of wages and also
company fails to attract the best talent due to its reputation of loss making
page 26
organisation.
Lack of Present lay out of the plant does not have the infrastructure does not have
2 infrastructure for correct technology to handle coke oven gas as all jobs within a radius of 40
implementation m could be a source of fire/ignition . Un authorised persons can not be
of the technology allowed to work in the area without shutting down the gas system. As per
present lay out ,the material handling systems like EOT cranes work on
overhead and run by electric supply connected with DSL ;there are
continuous sparks . This is very dangerous the gas area has to be completely
modified with new infra structure layout. This can be proved by plant
records.
How CDM
revenues help to CDM revenues help to overcome the barrier by changing the lay out and
alleviate the shifting and carry out infra structure changes.
above barriers
Lack of previous Company has no previous experience of using coke oven gas. Hence
3 experience in having no previous experience acts as technical barrier. This can be
using coke oven supported by plant records.
gas.
How CDM CDM revenues enable company to appoint with previous experience by
revenues help to offering higher wages and other incentives. But as the company has
alleviate the accumulated losses making available higher wages to certain set of people
above barriers can lead to internal worker problem on parity of wages and also company
fails to attract the best talent due to its reputation of loss making
organisation.
Uncertainties of The coke oven gas is sourced from UGML and the operations of UGML
4
availability of Blast furnace is not under control of LSIL. Any planned or unplanned
coke oven gas. shutdowns which are in control of UGML will immediately affect coke oven
gas supply which will disrupt LSIL production. This is definite barrier which
can not be overcome by LSIL and hence has to carry alternative furnace oil
storage and burner system in addition to coke oven gas system. This can be
supported by the agreement with UGML and plant visit.
How CDM The CDM alleviate the barrier by allowing LSIL maintain the alternative
revenues help to existing system to eliminate disruption of production. But this is partial
alleviate the alleviation as the coke oven gas is sourced from UGML where LSIL do not
above barriers have control.
5 Regulatory and As the whole area will attract classification of highly hazardous area they
page 27
technological come under Chief Controller Of Explosives CCOE and permissions are to be
problem sought and got.
The following restrictions will be placed due to the poisonous and explosive
nature of coke oven gas
5.1 No personnel shall be allowed to work in or go to the area where fuel

gases are present if the carbon monoxide content is more than 25 ppm. On
line monitoring system with alarm for carbon monoxide concentrated will be
provided near gas handling areas.
5.2 The following precautions have to be ensured within 40 m of gas lines
a) No manual hammering which may give spark.

b) No use of sparking tool or instrument
c) No naked fire
d) All welding or cutting jobs to be done with written clearance from
competent authority. A minimum oxygen level of 20% is to be ensured.
This acts as regulatory/ technological barrier for coke oven gas based heat
generation. This can be supported by CCOE regulations.
How CDM CDM revenues will help the company to plan provide for instrumentation to
revenues help to detect any leakages and increase the safety provisions so that regulatory
alleviate the conditions are adhered strictly.
above barriers
No control over As coke oven gas is being sourced from UGML the project proponent does
6
coke oven gases not have control on quality and quantity of gas availability.
and Related
design problem. The coke oven gas produced by the pyrolysis process contains tar,
ammonia,napthlene,light oil and sulphur before the gas is used as fuel. The
cleaning process is responsibility of UGML as LSIL is getting the surplus
coke oven gas after UGML have used coke oven gas in their processes.
The furnace burner system is designed to use clean coke oven gas and due to
any reason the coke oven gas is not free of these impurities then furnace
working will be affected. The design of furnace burner is critical and hence
unclean coke oven gas will present design problem.
Water present in coke oven gas will also present design problems as the pipe
line might get clogged if the atmospheric temperature falls below 4 deg c.
The above can be supported by research article “coke manufacturing” in
pollution prevention and abatement hand book of world bank group,
research article “investigation of the hazards of using manufactured gas in
Baltimore ” by Shrader and other research articles.
page 28
How CDM The CDM alleviate the barrier by allowing LSIL maintain the alternative
revenues help to existing system to eliminate disruption of production. But this is partial as
alleviate the the coke oven gas is sourced from UGML where LSIL do not have control.
above barriers .
7 Production The composition of coke oven gas is critical as it decides the heat
related problem availability. As the composition of coke oven gas can not be fully
guaranteed the heat availability in the furnace can be subjected to variation
and this will directly affect LSIL production.
The problem of what to do with coke oven gases when LSIL furnaces are
shut down is a concern which has to be addressed. The following two
options are being considered.
Option 1 A boiler needs to be installed which will burn the coke oven gases
and produce steam. LSIL have presently no use for this steam and hence
have to find a consumer for steam. LSIL is considering installation of such
boiler so that waste heat is used and not wasted by burning while sending it
to atmosphere through chimney. This option needs extra investments to the
extent of approximately Rs 80 million.
Option 2 LSIL will send coke oven gases to chimney and flare them before
letting out into atmosphere. The energy is wasted and LSIL have to provide
flare system at an additional cost of approximately Rs 30 million.
How CDM CDM revenues will enable the company to overcome the problem by
revenues help to providing one of the above options or any other measure.
alleviate the
above barriers
8 Whether fossil 1 Barrier 1 : fossil fuel based system is very well established technology and
fuel based heat do not face skilled personnel problem as pool of trained people is large while
generation face waste heat recovery systems are developing technology which is why skilled
the barriers personnel problem is faced by project activity. As LSIL is operating the
fossil fuel based system from inception it is business as usual and hence this
barrier will not be faced.
2 Barrier 2 : fossil fuel based systems do not face this problem as it is

existing system. As LSIL is operating the fossil fuel based system from
inception it is business as usual and hence this barrier will not be faced.
3 Barrier 3 : Company has fossil fuel handling experience hence furnace oil
based systems will not face this barrier in . As LSIL is operating the fossil
page 29
fuel based system from inception it is business as usual and hence this
barrier will not be faced.
4 Barrier 5: fossil fuel based heat generation is steady and proper regulations
are in place. As LSIL is operating the fossil fuel based system from inception
it is business as usual and hence this barrier will not be faced.
5 Barrier 4,6,7 : These are specific coke oven gas related barriers not
applicable to fossil fuel based systems. As LSIL is operating the fossil fuel
based system from inception it is business as usual and hence this barrier
will not be faced.
Barriers due to
prevailing
practice.
Discuss the LSIL is a steel manufacturing company equipped with DR-EAF-

1 project activity in Continuous slab caster based steel plant of capacity about 600000
host country. tonnes/year of steel. There are 36 units in India who have similar process
and capacity as per Ministry of Steel Government of India site
www.steel.nic.in
None of these units are having furnaces using coke oven gas for heating in
furnaces. Coke oven gas is available only with blast furnace based
manufacturers as they use coke
How CDM CDM revenues help to make the project activity feasible and enable the
revenues help to company to put the project activity and cross the barrier of prevailing
alleviate the practice of not using the waste heat in sponge iron industry.
above barrier
Whether fossil Fossil fuel based heat generation does not face this barrier as it is common
fuel based heat practice to establish such units.
generation face
the barrier
Sub-Step –3.b. Show that the identified barriers would not prevent the implementation of at least
one of the alternatives (except the proposed project activity).
In section B.4 all the realistic and credible alternatives have been discussed in step 1 in line with
methodology and in the above section the barriers have been discussed and the concludes as follows:
The conclusion arrived was the continuation of use of fossil fuel as fuel in the furnaces was the only
viable and credible alternative( H4) as it is existing scenario and is business as usual scenario also.
As this is business as usual since the year1994 and faces no barrier.
STEP-4 Common practice analysis

page 30
Sub step -4a Analyse other activities similar to project activity
Analysis of LSIL is a steel manufacturing company equipped with DR-EAF-

activities similar Continuous slab caster based steel plant of capacity about 600000
to the project tonnes/year of steel. There are 36 units in India who have similar process
activity. and capacity as per Ministry of Steel Government of India site
www.steel.nic.in
None of these units are having furnaces using coke oven gas for heating
in furnaces.
The project activity is to generate heat from excess waste coke oven
gas generated in coke ovens after the use of gases in coke ovens. The
coke ovens produce coke and coke is used in steel industry where the
blast furnace is used for melting. Hence the steel unit which does not
have blast furnace do not have requirement of coke and hence coke oven
gas is not available as they do not have coke ovens.
Hence LSIL project activity is first of its kind in steel plants

using EAF route and using coke oven gas as heat source in furnaces.
This is possible as UGML who are in the same complex forming joint
facility with LSIL under which utilities are shared and all the product of
pig iron is sourced by LSIL as their input.
The industry followed the practice of letting the excess coke oven gases
out into atmosphere without utilising waste heat.
As per the ministry web site www.steel.nic.in the small steel mills split
up is as follows
1 EAF based units : 36

2 Induction furnace based units : 970
3 MBF,ETF based units:2
2 The following steel plants in private sector have blast furnaces.
1 Tata Steel Limited 5 million tonnes
2 Jindal steel limited 1.37 million tonnes
3 JSW Steel Limited 6.8 million tonnes
4 Ispat industries 3 million tonnes
5 kalyani steel 1 million tonne
Excess Coke oven gas in all the above industries is being used for
captive power generation and are under CDM project activities . If the
part of coke oven gases could have been used in furnace heating then
also 5 out of 36 units make less than 15% diffusion.
page 31
Sub-Step 4.b Discuss any similar options that are occurring
Activities LSIL is a steel manufacturing company equipped with DR-EAF-Continuous

in similar slab caster based steel plant of capacity about 600000 tonnes/year of steel.
scale. There are 36 units in India who have similar process and capacity as per
Ministry of Steel Government of India site www.steel.nic.in
None of these units are having furnaces using coke oven gas as heat source.
The industry followed the practice of letting the excess coke oven gases out
into atmosphere without utilising waste heat.
As per the ministry web site www.steel.nic.in the small steel mills split up is as
follows
1 EAF based units : 36

2 Induction furnace based units : 970
3 MBF,ETF based units:2
2 The following steel plants in private sector have blast furnaces.
1 Tata Steel Limited 5 million tonnes
2 Jindal steel limited 1.37 million tonnes
3 JSW Steel Limited 6.8 million tonnes
4 Ispat industries 3 million tonnes
5 Kalyani steel 1 million tonne
Excess Coke oven gas in all the above industries is being used for captive
power generation and are under CDM project activities .
3 The difference in the above project activities is
1 LSIL do not have blast furnace and coke oven batteries which generate coke
oven gas.
2 Excess coke oven gas is sourced from UGML after their consumption of
coke oven gas in coke ovens
3 Coke oven gas is used as heat source only and no power generation is done.
.
page 32
STEP 1. Identification of
alternatives to the project
activity consistent with
mandatory laws and
regulations.
STEP 2. Investment analysis STEP 3. Barrier analysis
Does sensitivity analysis conclude (1) Is there at least one barrier

that the proposed CDM project preventing the implementation of the
activity is unlikely to be the most project activity without the CDM
financially attractive or is And
unlikely to be financially Attractive? (2)Is at least one alternative
Scenario, other than proposed CDM
N CDM project activity, not prevented
by any of the identified barriers?
Optional
Y
STEP 4. Common practice Analysis
(1)No similar activities can be Observed,

or (2) if similar Activities are observed,
are the essential distinctions between the
proposed CDM project Activity and
similar activities can reasonably be
explained?
Y
Project is
Additional
page 33
B.6. Emission reductions:

B.6.1. Explanation of methodological choices:
>> Selected methodology is ACM 0012 Version 3.2 Sectoral Scope 1&4 EB 51
a) The methodology gives 4 steps to determine the baseline. All these 4 steps have been discussed in B.4
and arrived at baseline scenario of W2/H4 as the WECM would have been flared before letting into
atmosphere and the existing business as usual scenario where fossil fuel is used to provide heat in
furnaces of LSIL.
The methodology lists realistic and credible alternatives to project activity and arrives at conclusion of
continuation of current situation as the only plausible alternative in the absence of project activity.
b) The emission reductions are achieved by displacing fossil fuel used in furnaces with waste coke oven
gas which uses only waste heat and does not use any fuel.
c) The additionality has been proved using additionality tool “the tool for the demonstration and
assessment of additionality” (version 05.2) EB 39.
d) The baseline emissions have been calculated for scenario 1 using equations 1, 1a, 1a.2, 1h. The
methodology states that if the project activity is generation of heat only then one of the two sub sections
under scenario 1 shall be used for estimating the base line.
1 Base line emissions
As the project activity is for generation of heat only ,Base line emissions are calculated for Scenario 1 as
the heat is obtained from fossil fuel in baseline. The applicable equations is 1a.2
2 Calculation of energy generated (heat) in units supplied by waste heat
The heat generated is calculated by using gas analysis and calculate heating value and the flow of
WECM. As 100% heat is generated by WECM the metered values of flow will be used and heating value
is calculated using gas analyser data.
3 Capping of baseline emissions
The methodology requires capping for element of conservativeness. We have selected Method 2 using
manufacturer’s data and applicable equation 1g to calculate baseline cap f cap.
The baseline emissions for the year shall be determined as follows
BE y = BE En, y + BE fist y = BE En, y (equation 1)

Where,
page 34
BE y = Total baseline Emissions during a given year y.

BE En y =Baseline emissions from energy generated by the project activity during a given year y.
BE fist, y = Baseline emission from generation of steam, if any, using fossil fuel that would
have been used for flaring in the absence of the project activity =0 as no steam from fossil fuel is used for
flaring in baseline
BE y = BE Elec, y + BE Therm y = BE Therm, y (equation 1.a)

Where,
BE y = Total baseline Emissions during a given year y.
BE Elec y =Baseline emissions from electricity by the project activity during a given year y =0.
BE Therm, y = Baseline emission from generation of thermal energy
As the project activity is for generation of heat only, Base line emissions are calculated for Scenario 1 as
clarified by note under this scenario. The applicable equations is 1a.2
Baseline emissions from thermal energy (BE Therm y)
BE Ther.y = f cap*f wcm**∑ ∑( (HG j y *EF heat, y )+(MG/ ή mech,tur)) *EF heat, y (equation 1a-2)
MG/ ή mech,tur = 0 as no mechanical energy is generated in the project activity the equation becomes
BE Ther.y = f cap*f wcm**∑ ∑HG j y *EF heat, y (equation 1a-2)
BE Ther.y = Base line emissions from thermal energy during the year in tons of CO2
HG j y = Net quantity of heat supplied by the project activity in the year TJ
EF heat, y = CO2 emission factor t CO2/TJ
wcm = fraction of total heat generated by project activity using waste energy =1 as the heat generation
Is purely from waste energy
f cap= fraction of total energy produced using equation 1h
EF CO2,I,j
EF heat, y = ∑wsi,j ------------- ( 1a-22)
ή EP,I,y
EF CO2,I,j = CO2 Emission factor for base line fuel t CO2/TJ

ή EP,I,y =Maximum efficiency 100%
wsi,j = fraction of total heat that is used by the recipient =1 as total heat is used is purely waste energy.
Capping of baseline emissions
As UGML is a new plant and no historical data is available Method 3 Case 1 is selected and following
equations will be used to estimate f cap.,
Q OE,BL
f cap = ------------ (1h)
Q OE, y
page 35
Q OE,BL = Output energy that can be theoretically produced to be determined on the basis of maximum
recoverable energy from WECM which would have been released in the absence of project activity.
Q OE, y = quantity of actual out put energy during year y
The project emissions (PE y) are zero as no cleaning of gases is done in the project activity and no
electricity is used for any other purpose during handling of delivered coke oven gas. No auxiliary fuel is
used while using waste energy.
Leakage is zero as per methodology.
Emission Reductions
ER y = BE Therm, y - PE y = BE Therm, y
ER y = Total emission reductions during the year y in tons of CO2

PE y =0
BE Therm, y = Base line emissions for the project activity during the year y in tons of CO2
B.6.2. Data and parameters that are available at validation:

(Copy this table for each data and parameter)
Data / Parameter: ή EP,I,y
Data unit:
Description: Baseline efficiency.
Source of data used: Project participant has assumed 100% efficiency.
Value applied: 100%
Justification of the For conservativeness maximum efficiency is assumed.
choice of data or
description of
measurement methods
and procedures actually
applied :
Any comment: nil
Data / Parameter: Hwcm,BL

Data unit: KJ/m3
Description: Calorific value
Source of data used: UGML the waste coke oven gas supplier
Value applied: 4000x4.18 KJ/M3
Justification of the UGML the waste coke oven gas supplier has provided this data based on the
choice of data or coke oven gas composition of Composition
description of CO 7.5 -9 % CO2 2.0-3.0% H2 55-57 % N2 2-6% CH4 24-26% CnHn 5%
measurement methods
applied :
Any comment: nil
page 36
Data / Parameter: t wcm,BL

Data unit: Deg C
Description: Average temperature of WECM
Value applied: 100 deg C
choice of data or coke oven gas availability.
description of
measurement methods
applied :
Any comment: nil
Data / Parameter: Pwcm,BL

Data unit: Kg/cm2
Description: Pressure of WECM
Value applied:
choice of data or coke oven gas delivery.
description of
measurement methods
applied :
Any comment: Nil
Data / Parameter: Q OE,BL

Data unit: MJ
Description: Output energy that can be theoretically produced to be determined on the basis
of maximum recoverable energy from the WECM which would have been
flared in the absence of project activity.
Source of data used: UGML the waste coke oven gas generator
Value applied: 17.942 X 10 8 MJ/Year
Justification of the UGML have provided this data as excess coke oven gas that can be made
choice of data or available to LSIL after considering their internal consumption.
description of
measurement methods
applied :
Any comment: Nil
page 37
B.6.3. Ex-ante calculation of emission reductions:

>>
In step1 of B.4 all the credible alternatives for waste gas and waste heat were considered . in the absence
of project activity UGML would have vented through chimney the excess waste coke oven gas as UGML
do not have further requirements in the process(W2) and LSIL would continue to use fossil fuel for
providing heat in their furnaces(H4) .
Base line
The base line is Furnace oil/LPG which could have been fired if waste coke oven gas is not available. The
furnace oil is used in RHF and LPG is used in CGL and Coiler furnaces in current situation.
The project activity reduces GHG emissions as Waste coke oven gas would have been burnt by UGML
before letting into atmosphere in the absence of the project activity and LSIL uses this waste coke oven
gas in their reheating furnace to provide required heat which would have been otherwise provided by
firing Furnace oil/LPG. GHG emission due to burning of fossil fuel is avoided and thus achieves reduction
in GHG emissions.
MG/ ή mech,tur = 0 as no mechanical energy is generated in the project activity the equation becomes
fwcm = fraction of total heat generated by project activity using waste energy =1 as the heat generation
is purely from waste energy
f cap= fraction of total energy produced using equation 1g
EF CO2,I,j
EF heat, y = ∑wsi,j ------------- ( 1a-22)
ή EP,I,y
The step wise calculations are as follows

1 Calculation of f cap
Q OE,BL
f cap = ------------ (1h)
page 38
Q OE, y


tonnes/year
fuel oil
heat specification
requirement for RHF
MJ/tonne 3 years average
4 Heat 13.5 X 108 3.025X 1.016X
provided by 108 108
coke oven
gas MJ
Q OE,y
=Production
capacity
*specific
heat
required
5 Q OE,y MJ 17.541 X 10 8 MJ/Year
6 Quantity of 12250 NM3/hr
WECM
7 Calorific 16720 KJ/NM3
value =16.72 MJ/NM3
KJ/NM3
8 Q OE,BL MJ 12250 X 16.72 X 24 X365
= 17.942 X 10 8 MJ/Year
9 f cap = Q OE,BL/ Q OE,BL
= 17.942 X 10 8 / 17.541 X 10 8
= 1.023 But as per methodology consider f cap = 1
Calculation of f wcm
page 39
As only waste heat is used for heat generation f wcm =1
Calculation of ∑ ∑HG j y


tonnes/year
fuel oil
heat specification
requirement for RHF and
MJ/tonne for CGL/Coiler
furnaces
3 years average
4 Heat 13.5 X 108 3.025X 1.016X
provided by 108 108
coke oven
gas MJ
5 ∑ ∑HG j y 17.541 X 10 8 MJ/Year
Calculation of EF heat, y
EF CO2,I,j
EF heat, y = ∑wsi,j ------------- ( 1a-22)
ή EP,I,y

1 Baseline Furnace LPG LPG

Fuel used oil
2 ή EP,I,y 100% 100% 100% Considered
maximum for
conservativeness
3 wsi,j = 1 1 1
fraction of
total heat
that is used
by the
recipient
page 40
4 EF CO2,I,j 0.0719 0.0494 0.0494 As per CO2

Baseline data
Version 5
November 2009
Available on
www.cea.nic.in
5 EF heat, y 0.0719 0.0494 0.0494

kg of
CO2/MJ of
base line
fuel using
1a -22
Calculation of baseline emissions BE Ther.y


tonnes/year
fuel oil
heat specification
requirement for RHF
4 Heat 13.5 X 108 3.025X 1.016X

provided by 108 108
coke oven
gas MJ
HG j y
5 EF heat, y 0.0719 0.0494 0.0494 As per CO2
kg of Baseline data
CO2/MJ of Version 4
base line Available on
fuel www.cea.nic.in
6 f cap 1 1 1 Assumed.
Actual value to
be taken during
every year
calculations.
page 41
7 f wcm 1 1 1 All heat will be

supplied by
waste gas
8 wsig 1 1 1 Total heat will
be used by the
utility point.
9 Base line 97065 14943.5 5019.04
reductions
tonnes of
CO2/year
10 Total base 117027.54 rounded to 117028
line
reductions
Tonnes of
CO2/year
BE Ther.y
Project emissions
As no other fuel is used in the normal operation.
PE y =0
Leakage
No leakage is applicable under methodology
Calculation of emission reductions
ER y = BE Therm, y - PE y = 117028-0 = 117028 tons of CO2 per year

PE y =0
= 117028 tons of CO2.
The baseline reductions are ex ante based and fixed for entire crediting period
B.6.4 Summary of the ex-ante estimation of emission reductions:
Estimation of Estimation Estimation of

project activity Estimation of base of leakage overall emission
year emissions line emissions reductions
(tonnes of (tonnes of CO2
(tonnes of CO2 e) (tonnes of CO2 e) CO2 e) e)
2010 0 117028 0 117028
2011 0 117028 0 117028
2012 0 117028 0 117028
2013 0 117028 0 117028
page 42
2014 0 117028 0 117028

2015 0 117028 0 117028
2016 0 117028 0 117028
2017 0 117028 0 117028
2018 0 117028 0 117028
2019 0 117028 0 117028
Total 1170280
(tonnes
CO2e) 1170280
* Base line cap is assumed as 1 to arrive at Ex-ante fixed emission reductions. Baseline cap will be
calculated every year and calculated capping factor will be used for calculating actual emission reductions
achieved.
B.7. Application of the monitoring methodology and description of the monitoring plan:
B.7.1 Data and parameters monitored:

(Copy this table for each data and parameter)
Data / Parameter: Q wcm,y

Data unit: M3
Description: Quantity of WECM/Waste gas used for energy generation during the year y
Source of data to be Generator of gas UGML and user of gas LSIL
used:
Value of data applied Use actual Average of Total Metered value in a year (Indicative value 12250
for the purpose of Nm3/h Average value considered).
calculating expected
emission reductions in
section B.5
Description of Meter provided on waste gas line. Log book of hourly reading is signed by plant
measurement methods manager daily. The average hourly reading is calculated and this average reading
and procedures to be is multiplied by working hours to arrive at the day’s flow of flue gas. The total
applied: quantity per year is calculated using daily record.
Type of meter: Ultrasonic/Turbine Make: GE
QA/QC procedures to Meters calibrated once every year. During maintenance of meter alternate
be applied: metering equipment will be provided. Accuracy :+/- 2% Supportive document :
GE Specifications
Any comment: Records will be maintained for 12 years as per CDM requirement.
Data / Parameter: Q OE,y
Data unit: MJ
Description: Quantity of energy generated during the year y
Source of data to be Generation plant measurement records
used:
Value of data applied The calculated value using metered value of quantity of gas and calculated
for the purpose of heating value of coke oven gas by using composition monitored by gas analyzer.
section B.5
page 43
Description of Metered value for WECM/Waste gas and gas composition. Log book of hourly
measurement methods reading is signed by plant manager daily. The average hourly reading is
and procedures to be calculated and this average reading is multiplied by working hours to arrive at the
applied: day’s energy. Meters calibrated regularly. LSIL internal consumption meter and
export meter whose value can be cross checked with UGML meter.
QA/QC procedures to The meters will undergo maintenance/calibration once every year. Sale records
be applied: and purchase receipts will be used to ensure consistency.
Accuracy of Meter : 0.5%
Supportive Document: Technical specifications of meter
Any comment: Data will be measured and cross checked .sales receipts will be used for
verification. Records will be maintained for 12 years as per CDM requirement
Data / Parameter: EF CO2,is,j

Data unit: tonnes of CO2/TJ
Description: CO2 Emission factor per unit of energy of the fossil fuel Furnace oil used in the
base line
Source of data to be CEA CO2 Data base Version 5.0 November 2009.
used:
Value of data applied
for the purpose of
section B.5
Description of Government of India, Ministry of Power, and Central Electricity Authority in
measurement methods technical cooperation with Indo-German Energy Programme have issued “CO2
and procedures to be Baseline Data base for the Indian Power Sector’ User Guide Version 5.0
applied: November 2009. This document along with CO2 Data base excel calculations are
available on web site www.cea.nic.in
The objective is to facilitate adoption of authentic baseline emission data and also
to ensure uniformity in the calculation of CO2 emission reductions by CDM
Project developers, the Central Electric Authority in cooperation with GTZ
CDM-India has compiled a data base containing the necessary data on CO2
emissions for all grid connected power stations in India. The data base currently
covers the five fiscal years 2000-01 to 2007-08.CEA intends to update data base
at the end of each financial year.
The document gives the emission factor for fossil fuels considered. We have used
these values.
QA/QC procedures to nil
be applied:
Any comment: Most recent version of data base to be used.
Data / Parameter: EF CO2,is,j

Data unit: Tonnes of CO2/TJ
Description: CO2 Emission factor per unit of energy of the fossil fuel LPG used in the base
line
page 44
Source of data to be CEA CO2 Data base Version 5.0 November 2009.
used:
for the purpose of
section B.5
Description of Government of India, Ministry of Power, and Central Electricity Authority in
measurement methods technical cooperation with Indo-German Energy Programme have issued “CO2
and procedures to be Baseline Data base for the Indian Power Sector’ User Guide Version 5.0
applied: November 2009. This document along with CO2 Data base excel calculations are
available on web site www.cea.nic.in
The objective is to facilitate adoption of authentic baseline emission data and also
to ensure uniformity in the calculation of CO2 emission reductions by CDM
Project developers, the Central Electric Authority in cooperation with GTZ
CDM-India has compiled a data base containing the necessary data on CO2
emissions for all grid connected power stations in India. The data base currently
covers the five fiscal years 2000-01 to 2007-08.CEA intends to update data base
at the end of each financial year.
The document gives the emission factor for fossil fuels considered. we have used
these values.
QA/QC procedures to nil
be applied:
Any comment: Most recent version of data base to be used.
Calculated ex-ante value for EF CO2,is y = 117028 t CO2/TJ fixed for entire credit
period.
Data / Parameter: NCV wcm,y

Data unit: TJ/kg or KJ/NM3
Description: Net average value annual average of WECM
Source of data to be Gas continuously analysed by gas analyser and calorific value is calculated using
used: Standard chemical reaction values for exothermic reaction.
Value of data applied Indicative value 16720 KJ/NM3
for the purpose of
section B.5
Description of Will be determined by laboratory under control of LSIL or external recognised
measurement methods laboratory.
and procedures to be
applied:
QA/QC procedures to Instruments calibrated regularly if LSIL laboratory is used. Frequency of
be applied: measurement once a month.
page 45
Data / Parameter: twcm,y

Data unit: Deg C
Description: Average temperature of WECM
Source of data to be Temperature measuring instrument
used:
Value of data applied 100 deg C or measured value
for the purpose of
section B.5
Description of
measurement methods Thermocouple type temperature indicator is provided.
applied:
QA/QC procedures to Calibrated once a year.
be applied:
Data / Parameter: Pwcm,y

Data unit: mbar
Description: Average pressure of WECM
Source of data to be Pressure measuring instrument.
used:
for the purpose of
section B.5
Description of Bourdon type pressure indicator is provided.
measurement methods
applied:
QA/QC procedures to Instrument calibrated once a year
be applied:
Data / Parameter: HG j y
Data unit: MJ
Description: Net quantity of heat supplied to the recipient plant by project activity in the year
Source of data to be LSIL actual measurement of WECM used by actual flow measurement. Net heat
used: supplied is calculated by multiplying calorific value and flow of WECM.
Value of data applied The calculated value using metered value of quantity of gas and calculated
for the purpose of heating value of coke oven gas by using composition monitored by gas analyzer.
calculating expected Expected value is 17.942 MJ/year
section B.5
page 46
Description of Metered value for WECM/Waste gas and gas composition. Log book of hourly
measurement methods reading is signed by plant manager daily. The average hourly reading is
and procedures to be calculated and this average reading is multiplied by working hours to arrive at the
applied: day’s energy. Meters calibrated regularly. LSIL internal consumption meter and
export meter whose value can be cross checked with UGML meter.
QA/QC procedures to The meters will undergo maintenance/calibration once every year. Sale records
be applied: and purchase receipts will be used to ensure consistency.
Accuracy of Meter : 0.5%
Supportive Document: Technical specifications of meter
Any comment: Data will be measured and cross checked .sales receipts will be used for
verification. Records will be maintained for 12 years as per CDM requirement
B.7.2. Description of the monitoring plan:

>>(A) Purpose
To define the procedures and responsibilities for GHG Performance, monitoring, measurement
and reporting of data and dealing with uncertainties and covers the responsibilities regarding plant
operation and maintenance.
(B) Scope
This procedure is applicable to waste heat based project of LSIL.
(C) Responsibilities
We define below the responsibilities of the professionals involved in running the project activity.
Shift Engineer (Operations): Responsible for proper operation of the mechanical equipment and
reporting hourly and eight hourly data of quantity WECM consumed, temperature and pressure of
WECM and product output. The report is then sent to the Manager (O & M) for his review.
Shift Engineer (maintenance): Responsible for proper maintenance management. The report is
then sent to the Manager (plant) for his review on a daily basis
Manager (Plant): Responsible for operation, maintenance and management of plant will be
reviewing the monitored parameters shift-wise and presenting a daily executive summary report, duly
signed by himself, to the General Manager (Plant).
General Manager: Responsible and in charge of complete operation, maintenance and

management of all plant and CDM related matters
He will be in charge of all CDM related matters and CDM officer will be directly reporting to him
CDM officer: He will be reporting to General Manager and will be responsible for preparing required
documentation and reviewing the accuracy of various reports with counter checks along with project
developer. He will be responsible for internal audit every month regarding CDM project matter.
page 47
B.8. Date of completion of the application of the baseline study and monitoring methodology and
the name of the responsible person(s)/entity(ies):
>>
Preparation of this document has been done by “Lloyds Steel Industries Ltd, Engineering division.”
whose address is
Date of completion of baseline study: 03/01/2010
General Manager of LSIL will be responsible for execution of monitoring methodology.
Responsible person for baseline and monitoring methodology covered in this PDD.
Mr R.M.Alegavi
Vice President (Technology)
Lloyds Steel Industries Ltd
Engineering division
21-B Modern Centre
Sane Guruji Marg
Mahalaxmi
Mumbai 400011
Tel No 91-22-30418111, 30418221 Fax No 91-22-30418260
rmalegavi@lloyds.in, rmalegavi@hotmail.com
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:

>>
25/10/2008. The starting date is the board resolution date when the decision to put the project activity
with CDM registration was taken. Extracts of Board resolution of 25/10/2008 is the supporting document.
C.1.2. Expected operational lifetime of the project activity:

>>
30 years for Reheating furnace and 15 years for CGL and Coiler furnaces.
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:

>>
Not applicable.
C.2.1.2. Length of the first crediting period:
>>
Not applicable.
page 48
C.2.2. Fixed crediting period:
C.2.2.1. Starting date:

>>
15/06/2010 or from the date of registration
C.2.2.2. Length:
>>
10 years 0 months
SECTION D. Environmental impacts
>>
D.1. Documentation on the analysis of the environmental impacts, including transboundary

impacts:
>>
The project activity is involved modification of existing equipment which uses fossil fuels so that fossil
fuel is replaced by Waste gases.
The project activity reduces the environmental pollution by eliminating presently used fossil fuels.
The waste gases would any way have been let into atmosphere by waste gas generator UGML in the
absence of project activity.
LSIL have got consent to establish for the project activity and consent to operate will be got after
commissioning of modified system which is expected in April-June 2010.
Hence the project activity leads to direct reduction of GHG emissions

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:
>> As environmental impact is direct reduction of GHG emissions by eliminating use of fossil fuel, no
impact assessment is to be carried out.
SECTION E. Stakeholders’ comments

>>
E.1. Brief description how comments by local stakeholders have been invited and compiled:
>>
LSIL identifies as stake holder the following parties
1 Local authority of Village –Bhugano Gram Panchayat
The company officials personally met the representatives of Panchayat and appraised the details of
project activity. Then the meeting with village sarpanch was held approximately after a fortnight on
02/02/2010 to discuss and receive comments and clarify immediately
page 49
2 Maharshtra state pollution control board.
Application for consent to establish has been received. Consent to operate will be received after pre
commissioning activities.
3 Waste gas generator and supplier UGML.

An agreement has been signed between UGML and LSIL.
4 Equipment suppliers.
The equipment specifications provided, enquiries issued and orders released after consultations.
5 LSIL board of directors.
The board members considered the project on 25/10/2008 and appreciated environment friendly project.
E.2. Summary of the comments received:

>>
LSIL management apprised the representatives of village Panchayat of village Bhugaon about the project
activity personally by the officers of LSIL and called for a meeting of villagers. The Sarpanch who is the
head of local governing body panchayat with representative villagers attended the meeting on
02/02/2010. The members of Panchayat appreciated and had expressed their no objection for project
activity. Bhugaon Gram Panchayat has issued no objection certificate. We give below queries raised
during meeting held on 02/02/2010.
Persons attended from Bhugaon village Persons from LSIL

1 Mr Raju.N.Nakhale 1 Mr S.L.Baramaiya
2 MrDayanand.Kshastvakar. 2 Mr G.P.Kawale
3 Mr Ramakrishna Selcokar 3 Mr A.K.Banerjee
4 Mr Subhash Meshram
5 Mr Gajanan Ghool
6 Mr Sandeep Kamble
7 Mr Amol Darode
8 Mr Shabbeer Sheikh
Bhugaon village sarpanch is the elected head of Panchayat body created for looking after interests of the
village.
Question Reply by LSIL

1 What is the project LSIL uses furnace oil and LPG in the furnaces for
manufacturing. Waste coke oven gas which would
have been flared by Uttam Galva Metallics Limited
will be bought by LSIL and used in furnaces instead of
furnace oil and LPG.
There are no direct benefits to the company instead

LSIL will be investing approximately 600 million
rupees as it is environment benefiting project.
page 50
2 How the village is benefited 1 The pollution caused by furnace oil and LPG use will
be totally eliminated as waste gas from Uttam Galva
will now be used which would have been let into
atmosphere by Uttam Galva after flaring.
2 Direct and indirect jobs are created at many levels in

the plant as LSIL is carrying out this project as an
environment friendly project to reduce the air
pollution.
3 As this is environment friendly the company will try

for the project activity to be registered with UNFCCC
CDM .If the company is successful then the company
proposes to use part of the income derived from CDM
registration for the sustainable development of the
village which will benefit the society.
3 Criteria for local people employment Project will require qualified technicians,
professionals, skilled and unskilled labour. Local
people will be given preference if qualified technicians
who have required qualification and experience are
available.
In case of commercial jobs where specific professional
qualification is not required all efforts will be made to
employ only local people.
4 Plans for village development LSIL is making continuous efforts to involve in works
to provide social benefits to the society.
As already pointed out company is not directly

benefiting but investing rupees 600 million in an
environment friendly project.
As this is environment friendly the company will try

for the project activity to be registered with UNFCCC
CDM .If the company is successful then the company
proposes to use part of the income derived from CDM
registration for the sustainable development of the
village which will benefit the society.
Company informed that they will be pleased to

contribute to sustained development of the village.
The company will make efforts to coordinate with
gram panchayat in any manner that will help the
villagers.
page 51
Sarapanch, village Bhugaon raised the points of activities required to be carried out by company
for benefiting the village. The company will work with panchayat so that the progress of the village
people and facilities are addressed.
Permission have been sought from the State agencies like MSEDCL, MSPCB, etc. wherever required
legally and consent to establish have been received and required consent to operate will be received
before commissioning of power plant.
LSIL have got consent to establish for the project activity and consent to operate will be got after
commissioning of modified system which is expected in April – June 2010.
LSIL Board of directors which has external directors representing the financial institutions in the board
meeting of 25/10/2008 and their approval has been received. The board appreciated the project activity
and directed to apply for CDM registration
E.3. Report on how due account was taken of any comments received:
>>
The relevant comments and important clauses mentioned in the project documents/ Detailed project
report, clearance from MSPCB (Maharashtra State Pollution Control Board) were considered while
preparation of CDM Project Design Document. LSIL management representatives met various stake
holders for appraisal regarding project activity and sought the support.
LSIL management has decided to interact with village panchayat to make sustainable contribution to
village welfare. The proposed schemes will target problems of drinking water and education.
All the stake holders appreciated the energy efficient environment friendly project activity which has
sustainable contribution to the development.
LSIL received the comments from all stake holders and have taken care in specifying the new Reheating
furnace and modification of CGL and Coiler furnaces. LSIL have taken steps to get the project activity
registered with CDM EB.
page 52
Annex 1
CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY
Organization: Lloyds Steel Industries Limited

Street/P.O.Box: Bhugano link road
Building:
City: Bhugano
State/Region: Wardha Taluk & district, Maharashtra
Postcode/ZIP:
Country: India
Telephone: 00-91-7152-305000
FAX: 00-91-7152-305050
E-Mail:
URL: www.lloydsin.com
Represented by:
Title: Chairman
Salutation: Mr
Last name: Gupta
Middle name: Rajnarayan
First name: Mukesh
Department:
Mobile:
Direct FAX: 00-91-22-30418260
Direct tel: 00-91-22-30418111
Personal e-mail: mrgupta@lloyds.in
page 53
Annex 2
INFORMATION REGARDING PUBLIC FUNDING
The project activity does not use any ODA financial assistance and also public funding from Annexure 1
Countries.
page 54
Annex 3
BASELINE INFORMATION
a) The methodology lists realistic and credible alternatives to project activity and arrives at conclusion
of continuation of current situation as the only plausible alternative in the absence of project activity.
b) The emission reductions are achieved by displacing fossil fuel used in furnaces with waste coke oven
gas which uses only waste heat and does not use any fuel.
As the project activity is for generation of heat only, Base line emissions are calculated for Scenario 1 as
clarified by note under this scenario. The applicable equations is 1a.2
MG/ ή mech, tur = 0 as no mechanical energy is generated in the project activity the equation becomes
wcm = fraction of total heat generated by project activity using waste energy =1 as the heat generation
Is purely from waste energy
f cap= fraction of total energy produced using equation 1h
EF CO2,I,j
EF heat, y = ∑wsi,j ------------- ( 1a-22)
ή EP,I,y
The step wise calculations are as follows
1 Calculation of f cap
page 55
Q OE,BL
f cap = ------------ (1h)
Q OE, y


tonnes/year
fuel oil
heat specification
requirement for RHF
4 Heat 13.5 X 108 3.025X 1.016X
provided by 108 108
coke oven
gas MJ
Q OE,y
=Production
capacity
*specific
heat
required
5 Q OE,y MJ 17.541 X 10 8 MJ/Year
6 Quantity of 12250 NM3/hr
WECM
7 Calorific 16720 KJ/NM3
value =16.72 MJ/NM3
KJ/NM3
8 Q OE,BL MJ 12250 X 16.72 X 24 X365
= 17.942 X 10 8 MJ/Year
9 f cap = Q OE,BL/ Q OE,BL
= 17.942 X 10 8 / 17.541 X 10 8
= 1.023 But as per methodology consider f cap = 1
Calculation of f wcm
page 56
As only waste heat is used for heat generation f wcm =1
Calculation of ∑ ∑HG j y


tonnes/year
fuel oil
heat specification
requirement for RHF
4 Heat 13.5 X 108 3.025X 1.016X

provided by 108 108
coke oven
gas MJ
5 ∑ ∑HG j y 17.541 X 10 8 MJ/Year
Calculation of EF heat, y
EF CO2,I,j
EF heat, y = ∑wsi,j ------------- ( 1a-22)
ή EP,I,y

1 Baseline Furnace LPG LPG

Fuel used oil
2 ή EP,I,y 100% 100% 100% Considered
maximum for
conservativeness
3 wsi,j = 1 1 1
fraction of
total heat
that is used
by the
recipient
page 57
4 EF CO2,I,j 0.0719 0.0494 0.0494 As per CO2

Baseline data
Version 5
November 2009
Available on
www.cea.nic.in
5 EF heat, y 0.0719 0.0494 0.0494

kg of
CO2/MJ of
base line
fuel using
1a -22
Calculation of baseline emissions BE Ther.y


tonnes/year
fuel oil
heat specification
requirement for RHF
4 Heat 13.5 X 108 3.025X 1.016X

provided by 108 108
coke oven
gas MJ
HG j y
5 EF heat, y 0.0719 0.0494 0.0494 As per CO2
kg of Baseline data
CO2/MJ of Version 4
base line Available on
fuel www.cea.nic.in
6 f cap 1 1 1 Assumed.
Actual value to
be taken during
every year
calculations.
page 58
7 f wcm 1 1 1 All heat will be

supplied by
waste gas
8 wsig 1 1 1 Total heat will
be used by the
utility point.
9 Base line 97065 14943.5 5019.04
reductions
tonnes of
CO2/year
10 Total base 117027.54 rounded to 117028
line
reductions
Tonnes of
CO2/year
BE Ther.y
Project emissions
As no other fuel is used in the normal operation.
PE y =0
Leakage
No leakage is applicable under methodology
Calculation of emission reductions
ER y = BE Therm, y - PE y = 117028-0 = 117028 tons of CO2 per year

PE y =0
= 117028 tons of CO2.
The baseline reductions are ex ante based and fixed for entire crediting period.
page 59
Annex 4
MONITORING INFORMATION
Serial Activity
No.
1.0 GHG Performance Parameter
1.1 The following parameters will be monitored :
• Coke oven gas consumption.
• Temperature and pressure of coke oven gas .
• Net production from furnaces.
• Calorific value of WECM
• Waste gas WECM quantity
Plant operation and maintenance: plant manager will be responsible for total plant
operation and maintenance of all project equipment and monitoring equipment.
2.0 Metering System
2.1 The metering system for the waste heat based project activity of
• Flow meters for monitoring coke oven gas flow to each furnace.
• Gas analyser of waste gas WECM
Temperature gauge for WECM
• Pressure gauge for WECM
3.0 Calibration of the Metering System once a year

3.1 All the metering devices shall be calibrated at regular intervals so that the accuracy of
measurement is ensured.
4.0 Reporting of the Monitored Parameters/ Authority and Responsibility of monitoring

and reporting
4.1 In-house Metering System LSIL
The Shift Engineer shall monitor hourly and eight hourly data on total production from,
WECM consumption, and net heat available. The hourly data shall be recorded in the
generation log book and the eight hourly data shall be recorded in the plant log book. The
complete and accurate records in the plant log book shall be signed by the Shift Engineer.
Both of these reports shall be sent to the Manager (Plant)
5. Uncertainties and Adjustments: procedure for identifying and dealing with

uncertainties
5.1 The hourly, eight hourly, daily and monthly data shall be recorded at various points as stated
above. Any observations (like inconsistencies of report parameters) and/or discrepancies in
the operation of the plant will be documented as “History” in the daily report prepared by
the General Manager (Plant) along with its time of occurrence, duration and possible reasons
behind such operational disruptions. Necessary corrective actions will be undertaken at the
earliest.
Furthermore, as a safety measure, the total gas consumption meter system shall be equipped
page 60
t with alarming System which gives a prior indication of any fluctuations in the operating
of the consumption thereby enabling the operators to take necessary preventive measures.
These measures will be undertaken in order to detect and minimize the uncertainty levels in
data monitoring.
6.0 Experience and Training
6.1 All the Shift Engineers (operation and Instrumentation) shall be qualified engineers/
technologists. The technical staff will also be trained by OEM representatives.
6.2 Emergency Preparedness Plan
The total heat generating system will be equipped with an “Automatic Alarming System”
which helps the operators to take necessary preventive actions before any kind of non-
functioning of the gas system which may results. LSIL shall have a fire fighting system in
place.
In addition to the above the following standard procedures for tackling emergencies arising
from,
• No coke oven gas flow
Internal audit
CDM officer will carry out internal audit every month as per internal audit plan and
prepare all necessary CDM related documentation. He will be reporting to General Manager
Project Performance Review
The company has in place “Audit Plan” which envisages regular monitoring and audit of
CDM project . The project performance review will be carried out under this audit plan by
CDM officer of the company who will be directly reporting to General Manager.
Reference
Project Design Document, maintenance manuals, standard OEM procedures and CDM
documentation.
page 61
Appendix
page 62
page 63
page 64
page 65
page 66
page 67
page 68
-----

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03

CDM – Executive Board

CLEAN DEVELOPMENT MECHANISM

A. General description of project activity

B. Application of a baseline and monitoring methodology

C. Duration of the project activity / crediting period

Annex 1: Contact information on participants in the project activity

Annex 2: Information regarding public funding

Annex 3: Baseline information

Annex 4: Monitoring plan

Appendix: Screen shots of excel sheets.

CDM – Executive Board

SECTION A. General description of project activity

A.1. Title of the project activity:

A.2. Description of the project activity:

(1) Purpose of the project activity

(a) Scenario existing prior to start of the implementation of project activity.

(a.2) Continuous hot dip galvanising line (CGL) furnaces

(a.3) Stecker Mill Coiler furnace

(b) The project scenario.

CDM – Executive Board

Flow rate 12250 Nm3/h

Scope of activities include the following installations

Current status of project activity

CDM – Executive Board

(c)Base line Scenario

(2) How the project activity reduces GHG emissions

CDM – Executive Board

A.3. Project participants:

A.4. Technical description of the project activity:

A.4.1. Location of the project activity:

The plant is located approximately at 6 km from Wardha on Bhugano link road.

CDM – Executive Board

A.4.2. Category(ies) of project activity:

CDM – Executive Board

2) Purpose of project activity

Flow rate 12250 Nm3/h

(a) The scenario existing before project activity.

The following furnaces are existing presently using fossil fuel

CDM – Executive Board

Fuel used: furnace oil

(a.2) Continuous hot dip galvanising line (CGL) furnaces

(a.3) Coiler furnace

(b) The project scenario

Flow rate 12250 Nm3/h

The project activity will comprise the following scope of activities

CDM – Executive Board

2 The new reheating furnace.

The new reheating furnace (RHF) has the following specifications:

The fuel consumption being monitored by electronic meters.

(c) Base line Scenario

c. a) Age and average life time of equipment

CDM – Executive Board

3 Coiler furnace, Fuel fired is LPG, Capacity: 400000 tonnes/year

Fuel consumption and production from furnace are monitored.

c.b) how emission reductions are achieved.

c.c) Heat energy generated in the project activity.

Flow rate 12250 Nm3/h

The heat generated using coke oven gas is calculated as follows:

The use in furnaces expected as follows:

S No Description Reheating CGL Coiler Reference

1 Production 1000000 250000 400000 Manufacturer

CDM – Executive Board