Understanding CDM Methodologies - SuSanA

Experiences from
Use of ACM 0004
Expansion of
Applicability
Conditions
Contracts to avoid
double Counting
More detailed
Set of Baseline
Scenarios
Conservative
Choice among
Plausible
Alternatives
More Stringent
Default Values
as Difficulties in
Measurement is
realised
Challenges encountered in the application of the methodology
ACM 0012 has not been applied by any registered project or project
submitted for registration. Therefore, only the experience related to
application of elements of ACM 0004 in ACM 0012 can be used. The main
challenges encountered in the application of ACM0012/0004 and resulting
changes can be categorized into the following: (i) applicability conditions, (ii)
baseline scenario definition, iii) project boundary, (iv) baseline emissions and
(v) project emissions.
The applicability conditions of ACM 0004 were too narrow and it became
clear that there are other technologies than waste gas and heat use for
electricity generation. Therefore, cogeneration and direct heat use have been
added. Waste pressure use (e.g. through top recovery turbines) had already
been added in a revised version of ACM 0004 222 . Electricity export to the
grid and energy sales have been allowed, if contracts are signed that exclude
double counting 223 . The project can be done by an energy service company.
The concept of “recipient plant” was introduced to cover the plants to which
energy exports are made 224 .
Baseline scenario definition was seen as too coarse and the role of noneconomic
factors on decision making acknowledged. The original set of
6 baseline scenarios that looked at energy production and use within the
project boundary was substituted by a baseline scenario matrix with 21
entries in three columns, covering waste heat generation, energy production
and energy use. Instead of choosing the most economically attractive
alternative, the alternative with the lowest emissions among the “credible
and plausible” alternatives has to be chosen as baseline scenario. Proof of
pre-project flaring/venting is now required.
Additional items have to be included in baseline emissions and a more
conservative approach applied, as it became clear that measurement of
some parameters is difficult. Emissions from fossil fuel burning for gas flaring
have been added. Determination of boiler efficiency of captive power plants
has been made more stringent, by asking for optimal operating conditions,
the higher of two manufacturer’s nameplate efficiencies, establishment of
load-efficiency curves or use of a high default efficiency. Default efficiencies
such as 100% for a power plant boiler have been replaced by 60% for the
entire captive power plant 225 . A further element of conservativeness has
been introduced through the discount factor in case waste gas production
increases.
Waste gas can be used in power generating units supplied by other fuels 226 .
Shares of steam generation can be applied as proxies if the heat rate of the
waste gas cannot be measured 227 .
Project emissions: The item electricity generation for gas cleaning
equipment was added. The oxidation factor was deleted, increasing the level
of project emissions.
222
This was due to clarification request AM_CLA_0015.
223
Response to clarification request AM_CLA_0041.
224
This issue was first raised in clarification request AM_CLA_0005, but not fully resolved until introduction of
ACM 0012.
225
Response to clarification request AM_CLA_0040
226
The 7th request for deviation (Nov. 23, 2005) led to a corresponding revision of ACM 0004
227
AM_REV_033
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