Understanding CDM Methodologies - SuSanA

Heat only Projects
Baseline Scenario
Greenfield Captive
Power Plant
Box 46: Calculation issues arising from proposed new baseline scenarios
A request for revision 298 enquired about the inclusion of a baseline scenario for
projects that only generate heat and no power. Though the proponent proposed
several modifications to the phrasing of the methodology to reflect its inquiry,
he failed to properly modify the emissions reductions equations accordingly
throughout the methodology. The MP rejected the proponent’s request for
modification primarily because calculation protocols were not revised adequately.
Additionally, the MP argued that ACM0006 was already a complex methodology
and therefore could not be altered significantly in order to include projects that
only generate heat. Rather, the MP invited the project proponent to submit a new
methodology based on elements of ACM0006 and ACM0009.
Another interesting request 299 sought the approval of a new baseline scenario
involving the construction of a greenfield biomass residue power cogeneration
plant and where electricity would be produced by a new fossil fuel power plant
in the absence of the project and part of the biomass residues would be left
to decay. The MP judged the proposed project to be in line with ACM0006 yet
it did not find adequate the approach to measure the CO 2
emissions arising
from displacement of electricity. A second request for revision was subsequently
submitted by the project proponent 300 , which lead to the approval of the project’s
baseline emissions calculations.
264265266
Project emissions
Methane
Emissions to be
calculated for
Project if covered
in Baseline
Project emissions stem from two main sources: (i) The CO 2
emissions
attributable to the operation of the project, whether the project is connected
to a stationary source of energy or to the grid; and (ii) the CO 2
emissions
arising from the transportation of biomass residues from the source to the
project’s power plant. CH 4
emissions released through the combustion of
biomass residues for energy production must also be accounted if CH 4
emissions were included in the baseline scenario. Project proponents should
also account for the CH 4
emissions arising from the anaerobic degradation of
the wastewater used in cases where the biomass residues are treated.
Leakage
The main potential source of leakage for activities under ACM0006 is the
increase in CO 2
emissions arising from the consumption of fossil fuel due
to the diversion of the biomass residues from other uses as a result of the
project.
Leakage to be
covered if Biomass
Residues not
used in Baseline
Scenario
If the most likely baseline scenario is that the biomass residues would have
been used for energy generation, then no leakage needs to be accounted
for. However, if the baseline scenario is the decay or uncontrolled burning
of the biomass residues without energy production, then proponents must
demonstrate that the use of the biomass residues does not lead to an
increase in fossil fuel consumption elsewhere. To do so, project proponents
must demonstrate that there is a sufficient regional supply of the biomass
residues type it proposes to use to avoid a shortage that could lead to a
switch to fossil-fuel fired processes outside the project boundary.
264
See AM_REV_0008
265
See AM_REV_0032
266
See AM_REV_0047 “Request to include biomass project supplying power and heat directly to the user instead
of electricity grid”
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