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Reports of CDM/JI Feasibility Studies: FY2007

Title of Feasibility Study (FS)Biomass-based Grid-Connected Electricity Generation Project in China
FYFY 2007
Main Implementing EntityThe Japan Research Institute, Limited
FS Partner(s)Tepia Corporation Japan Co.,Ltd, Shandong Environmental Protection Bureau, Tsinghua University
Location of Project ActivityChina (Shandong province)
Summary of FS ReportPDF (173KB)
Description of Project ActivityThe Shandong Guanxian Biomass Power Plant Project developed by China Guodian Corporation is a biomass collection and utilization project to be constructed at the site of a demolished brick factory located at Guanxian, Liaocheng city, Shandong Province, P.R.China. The proposed project will generate electrical power using a 2x15MW generator unit by directly combusting biomass fuels such as wheat stalks and corn straws etc.
The electricity produced by the proposed project shall be supplied to the public North China Power Grid (NCPG) system through Shandong provincial power grid. The project will replace the power generated by coal-fired power plants connect to the grid. The proposed project will reduce the greenhouse gas emissions from biomass caused by natural decay and uncontrolled burning and emissions related to the burning of fossil fuel for power production as well.
The annual power net output to the grid is 139GWh and the annual estimated amount of greenhouse gas emissions reduction is 151,717 tonnes of CO2e.
Targeted GHGCO2, CH4
Category of Project ActivityBiomass Utilisation
Duration of Project Activity/ Crediting Period2008- / 2008-2015
Baseline Methodology/ AdditionalityStep 1: Identification of alternatives scenarios for CDM project activities
    This Guanxian Biomass power plant project obviously belongs to the Greenfield Power Projects, which listed in the first of the four activities on the methodology ACM0006. Also, the proposed project can meet the applicability criteria of the baseline methodology ACM0002, therefore, the methodology is applicable to the proposed project.
    The most realistic and credible alternative for power generation is the generation of power in the grid. For the use of biomass, the most realistic and credible is the biomass residues are dumped or left to decay under mainly aerobic conditions.
Step 2: Identification of alternatives to the project activity consistent with current laws and regulations
    The proposed project is clearly consistent with the prevailing laws and regulations, since there in the North China Grid is a demand for new power addition to ensure the growing industrial and commercial purposes in this area. As for biomass use, related policies and regulations have been issued, such as Renewable Energy Promotion Law and Renewable Energy.
Step 3: Investment analyses
    The financial indicators (FIRR) without revenues from CERs are 6.97% is lower than the benchmark rate 8%.
Step 4: Common practice analyses
    There are seven similar projects in Shandong Province and all of them are supported by CDM except Boxing, Binzhou City, which is an only one under construction without any CDM support. However, Boxing, Binzhou City is a foreign –owned enterprise and nor permitted to implemented as CDM project by the regulations of Chinese DNA. It can be easily known that the proposed project is NOT an activity of business as usual (BAU).
Estimation of GHG Emission Reductions
  • The annual total baseline emissions are: 154,854tCO2
  • The annual total project emissions are: 3,137tCO2
  • The annual net emission reductions are: 151,717tCO2
Monitoring MethodologyApproved consolidated monitoring methodology ACM0006, "Consolidated monitoring methodology for grid-connected electricity generation from biomass residues" is selected as the monitoring methodology in UNFCCC EB website.
All the data collected for monitoring purpose are consist of generated power billing records, baseline emission parameters, and project emissions etc will be archived electronically and be kept at least 2 years after the end of the last crediting period of time.
Environmental Impact AnalysisThe main sources of pollution are waste gas, waste water, solid wastes including fly ash and noise. The proposed project has been approved by Shandong Environmental Protection Bureau on 31/8/2006. The basic conclusions on environmental impact assessment of the proposed project are implement of the proposed project will comply with Chinese environmental rules and laws and give out a co-benefit effect for both power plant and farmers.
Issues and Tasks for Project RealisationThe proposed project implements as CDM project. After the final decision for the project implementation, we shall determine the respective responsibilities for the emission trading immediately.

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