GIKIL PDD - Federalno ministarstvo okoliša i turizma - … engelska verzija.doc · Web viewCLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM PDD) Version 03 - in effect

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.

CDM – Executive Board page 1

CLEAN DEVELOPMENT MECHANISMPROJECT 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 Information

Annex 5: The project activity’s effect on the promotion of Sustainable Development

Annex 6: Further Documental and Photographic evidence



SECTION A. General description of project activity

A.1 Title of the project activity: N2O reduction project at the nitric acid plant of Global Ispat Koksna Industrija d.o.o. Lukavac (“Gikil”), Bosnia.PDD Version 1.0Date of completion: 11th October 2011

A.2. Description of the project activity:The sole purpose of the proposed project activity is to significantly reduce current levels of N 2O emissions from the production of nitric acid at Gikil’s nitric acid plant (“the Plant”) at Lukavac (near Tuzla), Bosnia & Herzegovina.The nitric acid plant was designed by Montecatini S.A.. Commercial nitric acid production started in June 1962. It is a 3 bars medium pressure plant with a design production capacity of around 178 metric tonnes of HNO3 (100% conc.) per day1. To produce nitric acid, ammonia (NH3) is reacted with air over precious metal – normally a platinum-rhodium (Pt-Rh) alloy – catalyst gauze pack in the ammonia oxidation reactor of nitric acid plants. The main product of this reaction is NO, which is metastable at the conditions present in the ammonia oxidation reactor and therefore reacts with the available oxygen to form NO2, which is later absorbed in water to form HNO3 – nitric acid. Simultaneously, undesired side reactions yield nitrous oxide (N2O), nitrogen and water. N2O is a potent greenhouse gas with a Global Warming Potential (GWP) of 3102. Scenario prior to the start of the project activity: The plant is not operated with any kind of N2O abatement technology and emits an estimated average of 7.0 kgN2O/tHNO3. The continued operation of the plant without any N2O abatement technology installed would entail emissions of approximately 115,585 tCO2e annually. Please note that the baseline scenario and the scenario prior to the start of the project activity are the same. The project activity involves the installation of a new N2O abatement technology: a pelletised catalyst that will be installed inside the ammonia oxidation reactor, underneath the precious metal gauzes. It is expected that this catalyst will reduce approximately 85% of current N2O emissions.For monitoring the N2O emission levels, Gikil operates an Automated Monitoring System (AMS). The procedures for monitoring, regular calibrations and quality assurance are embedded into the in-ternal procedures of the plant management.The financial benefits from the sale of Certified Emission Reductions (“CERs”) will be used to off-set the capital and operating costs of the project to provide for its continued operation throughout the crediting period.The project will contribute to the sustainable development of the area. Through this CDM project, Gikil will employ state of the art reduction and monitoring technology and be among the leading companies in N2O emissions abatement worldwide. Thus, this project supports Gikil in improving the environmental performance of the company. Furthermore, global and national environmental benefits are realized through the reduction of a considerable amount of N2O that would otherwise

1 All nitric acid amounts are provided in metric tonnes of 100% concentrated HNO3, unless otherwise indic-ated.2 IPCC Second Assessment Report (1995); as specified by decision 2/CP.3, paragraph 3.



contribute to global climate change. The additional revenues through the sale of CERs will strengthen the company’s position in the market. As a result, the project is likely to have a positive impact on existing economic activity in the area.

A.3. Project participants:

Name of Party involved (*) ((host) indicates a host Party)

Private and/or public entity(ies) project participants (*) (as applicable)

Kindly indicate if the Party involved wishes to be considered as project participant (Yes/No)

Bosnia & Herzegovina (host) Global Ispat Koksna Industrija d.o.o. Lukavac (“Gikil”): Gikil

No

United Kingdom N.serve Environmental Services GmbH, Germany (“N.serve”)

No

United Kingdom Johnson Matthey plc, UK (“Johnson Matthey”)

No

(*) In accordance with the CDM modalities and procedures, at the time of making the CDM-PDD public at the stage of validation, a Party involved may or may not have provided its approval. At the time of requesting registration, the approval by the Party(ies) involved is required.

A.4. Technical description of the project activity:

A.4.1. Location of the project activity:

A.4.1.1. Host Party(ies): Bosnia & Herzegovina

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

A.4.1.3. City/Town/Community etc:Lukavac

A.4.1.4. Detail of physical location, including information al-lowing the unique identification of this project activity (maximum one page):



Gikil operates its nitric acid plant on an industrial complex south of Lukavac City. Gikil, Zeljeznicka 1, 75300 Lukavac, Bosnia & Herzegovina.

Satellite perspective snap-shot: Gikil’s nitric acid plant at Lukavac (near Tuzla), Bosnia & Herzegovina; the exact plant location is marked

This satellite perspective snapshot displays the exact location of the Gikil nitric acid plant (44°32’42.21’’ N, 18°30’21.73’’ E)3.

A.4.2. Category(ies) of project activity:Sectoral Scope 5: Chemical Industry

A.4.3. Technology to be employed by the project activity:

The main parts of the plant as currently set up are the ammonia burner inside which the ammonia oxidation reaction takes place, the absorption tower where the gas mix from the burner is led through water in order to form nitric acid and the stack through which the off-gasses are vented into the atmosphere. Prior to the start of the implementation of the project activity, no N2O abatement technology is operated in the plant (please note that this is also the baseline scenario).

3 Coordinates according to Google Earth©, version 4.2.0205.5730



The project activity entails the implementation of:- N2O abatement technology that is inserted into the ammonia oxidation reactor; and- Specialised monitoring equipment to be installed at the stack (see monitoring part for more

details)

Catalyst Technology

A secondary catalyst will be installed and will reduce N2O levels in the gas mix resulting from the primary ammonia oxidation reaction. A wide range of metals (e.g. Cu, Fe, Mn, Co and Ni) have shown to be of varied effectiveness in N2O abatement catalysts. The abatement catalyst is made of multicored cylindrical pellets containing Cobalt as an active ingredient, the bulk material being Cerium dioxide (CeO2). The catalyst has been tried and tested in a number of nitric acid plants in Europe. The abatement efficiency has been shown to be around 85% in the following reaction:

2N2O 2N2 + O2

If operated properly, the secondary catalyst system may significantly reduce N2O emissions for up to three years, before the catalyst material needs to be replaced.

Basket modifications and Heat Shield design

Most nitric acid plants have some sort of basket structure that gives structural support to the pre -cious metal gauzes. The ammonia oxidation reaction in Gikil’s nitric acid plant normally operates at temperatures between 810 and 840ºC, which causes basket assembly to expand compared to when the plant is not operational (i.e. during installation of the catalyst).

To counter this occurrence, the baskets which support the gauze pack will have to be modified. An additional heat shield will have to be installed inside the existing baskets of both plants to provide containment of the pelleted bed in a manner which prevents preferential gas flow at the perimeter.

N2O abatement catalyst installation

The secondary catalyst itself is normally installed during a routine plant shut-down and gauze change. The pellets are poured into the existing basket and levelled. The gauze pack is then in-stalled above the levelled catalyst pellets.

After the end of its useful life, the catalyst will be refined, recycled or disposed, fulfilling sustain-ability standards.

Technology operation and safety issuesAs mentioned before, the secondary abatement technology has been tested in several industrial tri-als and has proven to be a reliable and environmentally safe method of reducing N2O.The catalyst and the AMS (once installed) will be operated, maintained and supervised by the em-ployees of Gikil according to standards that are normally used in the European industry. Gikil is currently demonstrating that the effective operation of the catalyst technology can be managed and is confident that the operation of the monitoring system and the data collection, storage and pro-cessing will be managed in accordance with the CDM requirements. Adherence to the applicable standards will be ensured by thorough and regularly repeated training sessions for the Gikil’s em-ployees involved.



A.4.4 Estimated amount of emission reductions over the chosen crediting period:

For the calculation of the estimated emission reductions it was taken into account:

The capacity of 178 tHNO3/day for 300 operating days per year, a preliminary and estimated baseline emissions factor (EFBL) of 7.00 kg/tHNO3

4 and a reduction efficiency of 85%.

Based on these assumptions, the CERs generated by the project activity over the chosen 10 year crediting period are projected in the table below:

Years

Annual Estimated Emission

Reductions (tCO2e)

2012 98,2472013 98,2472014 98,2472015 98,2472016 98,2472017 98,2472018 98,2472019 98,2472020 98,2472021 98,247

Total number of crediting years 10Total estimated Emission Reductions (tonnes of CO2e) 982,473Annual average over the crediting period estimated reductions (tonnes of CO2e) 98,247Table: Estimation annual emission reductions during crediting period

A.4.5. Public funding of the project activity:No public funding has been or will be received in the development, implementation or operation of this project. The complete financing of the project will be borne by the project participants.

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: This project is based on the Approved Baseline and Monitoring Methodology AM0034 (Version 5.1.0): “Catalytic reduction of N2O inside the ammonia burner of nitric acid plants”.

The version 5.1.0 of the methodology AM0034 requires:

4 See section B.6.2 and Annex 3 of this PDD (specifically table B.8).



the use of the version 5.2.1 of the “Tool for the demonstration and assessment of addition-ality” in order to prove the additionality and

the procedure for identification of the baseline scenario described in version 5.1.0. of the methodology AM0028 “Catalytic N2O destruction in the tail gas of nitric acid Plants” for identifying the baseline scenario.

However, in this project, the version 3.0.1 of the “Combined tool to identify the baseline scenario and demonstrate additionality”5 is used for both aspects. Please see B.4 for a detailed explanation for the applicability of the combined tool in order to identify the baseline scenario and to demon-strate the additionality of this project.

B.2 Justification of the choice of the methodology and why it is applicable to the project activity:

The chosen baseline methodology AM0034 is applicable to project activities that install a second-ary abatement catalyst inside the ammonia burner of a nitric acid plant, underneath the precious metal gauze pack. This corresponds with the proposed project activity.Furthermore, the additional applicability criteria of the chosen methodology are met by the pro-posed project activity. These are:1. The proposed project activity will be applied to production facility that was operated for com-

mercial nitric acid production before the 31st December 2005 (based on design capacity in-stalled).The plant has been commissioned in 1962 and has been used for on-site commercial nitric acid production since then.

2. Presently, no N2O abatement technology is installed in the plant.3. The project activity has no influence on the plant’s nitric acid production levels.4. The host country does not have any legal requirements to reduce N2O emissions from nitric

acid plants.5. The project activity will not increase NOX emissions and there is no NSCR DeNOx-unit in-

stalled in the plant.6. The installation of the secondary N2O abatement catalyst will not lead to any additional direct

or indirect GHG emissions within the project boundary.7. Gas volume flow measurement in the stack during the plant’s operation throughout the credit-

ing period of the project activity.B.3. Description of the sources and gases included in the project boundary

The following flow chart displays the Gikil nitric acid plant that is subject to the project activity. The boundary of the project activity includes the complete process equipment of the nitric acid plants:

5 Source: http://cdm.unfccc.int/Reference/tools/index.html

http://cdm.unfccc.int/Reference/tools/index.html



Figure: Flow chart for Gikil’s nitric acid plant

Source Gas Included? Justification / Explanation

Bas

e-lin

e

Nitric Acid Plant (Burner Inlet to Stack)

CO2 No The process does not lead to any CO2 or CH4 emissionsCH4 No

N2O Yes

P r o Nitric Acid Plant CO2 No



ject

Act

ivity

(Burner Inlet to Stack)The process does not lead to any CO2 or CH4 emissions

CH4 No

N2O Yes

Leakage emissions

CO2 No No leakage emissions are ex-pected. CH4 No

N2O NoTable: Overview of all emission sources within the project boundary

Design parameter

Plant capacity 178 tHNO3/day

Operating temperature (min/max) 810-840 °C

Operating pressure (min/max) 3.8-9 bars

Ammonia to air ratio (max) 10.5 %

Table: Design parameter of the plant

B.4. Description of how the baseline scenario is identified and description of the identified baseline scenario:

In this project, the version 3.0.1 of the “Combined tool to identify the baseline scenario and demon-strate additionality”6 is used for demonstration and assessment of additionality and for identifying the baseline scenario of this project. According to the 27th meeting of the EB7, the Board agreed to the Methodological Tool “Com-bined tool to identify the baseline scenario and demonstrate additionality” (Combined Tool) applic-able only to project activities where all identified alternative baseline scenarios are under the con-trol of project participants, as contained in annex 98 of the report. In the combined tool it is stated that: “It is only applicable if the potential alternative scenarios to the proposed project activity available to project participants cannot be implemented in parallel to the proposed project activity, such as for a CDM project activity related to the destruction of a greenhouse gas in one site where the identified potential alternative scenarios are: (a) installation of a thermal destruction unit, or (b) installation of a catalytic destruction system, or (c) no abatement of the greenhouse gas. In these cases, the project proponents could not implement the three alternat-ives in parallel but they could only implement one of them9.” The alternative scenarios for the CDM project at Gikil’s plant as provided under step 1a. could not be implemented in parallel and are under control of the project participants. Therefore, it is applic-able to use the combined tool.

Step 1: Identification of alternative scenarios6 Source: http://cdm.unfccc.int/Reference/tools/index.html 7 Source: http://cdm.unfccc.int/EB/027/eb27rep.pdf 8 Source: http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-02-v3.0.1.pdf/history_view 9 See page 1 and footnote 1 of Version 3.0.1 of the Combined tool to identify the baseline scenario and demonstrate additionality (http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-02-v3.0.1.pdf )

http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-02-v3.0.1.pdf

http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-02-v3.0.1.pdf

http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-02-v3.0.1.pdf/history_view

http://cdm.unfccc.int/EB/027/eb27rep.pdf




This Step serves to identify all alternative scenarios to the proposed CDM project activity(s) which can be the baseline scenario via the following Sub-steps:

Step 1a – Define alternative scenarios to the proposed CDM project activity

1.1 Assessment of the present situationThere has been no N2O abatement technology installed in the plant prior to the implementation of the project activity.

1.2 Most realistic scenario in the absence of CER revenues for N2O reductions achieved The realistically feasible scenario alternatives are:

Continuation of the status quo without installing any N2O abatement technology in the plant,

Switch to alternative production method not involving ammonia oxidation process; Alternative use of N2O such as:

o Recycling of N2O as a feedstock for the plant;o The use of N2O for external purposes

Installation of Non-Selective Catalytic Reduction (NSCR) De-NOx system Installation of an N2O destruction or abatement technology instead of the project activity

(i.e. taking N2O abatement measures without participating in the CDM):o Tertiary measure for N2O destructiono Primary or secondary measures for maximum N2O destruction or abatement

The baseline scenario alternative “switch to alternative production method not involving ammonia oxidation process” is not an option, because there is no other commercially viable alternative for producing nitric acid. In history, there have been other methods for producing nitric acid, such as the Birkland & Eyde method or the Glauber method. However, these methods did not prevail due to much higher production costs compared to today’s applied Ostwald process10 which uses ammo-nia instead of nitrogen from the air.Consequently, this baseline scenario alternative was regarded as technically unfeasible. The use of N2O as a feedstock for the production of nitric acid is technically not feasible, because it is not possible to produce nitric acid from N2O. The use of N2O for external purposes is technically and economically not feasible as the quantity of gas to be used as a source would be enormous compared to the amount of nitrous oxide that could be recovered. For the reasons above, the scenarios

Switch to alternative production method not involving ammonia oxidation process; Alternative use of N2O such as:

o Recycling of N2O as a feedstock for the plant;o The use of N2O for external purposes

are excluded from further assessment.

10 Source: http://www.physicsdaily.com/physics/Ostwald_process

http://www.physicsdaily.com/physics/Ostwald_process



In principle, none of the other scenario alternatives are ex ante unrealistic or technically unfeasible.

Step 1b – Consistency with mandatory applicable laws and regulation

There are currently no national regulations constraining N2O emissions throughout the period in which the CDM project is conducted on the federal level of Bosnia and Herzegovina. Neither do any N2O regulations exist at state level of the Republic of Srpska.

Current NOx emission levels of Gikil are high, because no NOX-abatement technology is installed at the plant. Although this is not in line with the targets established by Bosnian Environmental Law, this does not prohibit the continuation of nitric acid production at the plant. Gikil may have to invest in specific NOX-abatement technology. The two main options are

Selective Catalytic Reduction (SCR) technology and Non Selective Catalytic Reduction (NSCR) technology.

SCR technology could be installed for about 0.5 million €. The installation of an SCR-unit would take a few days. This technology will reduce NOX-emissions without effecting the N2O concentra-tion in the off-gas. The employment of NSCR-technology would reduce both NOX and N2O emission levels. But choosing NSCR technology could not be conceived as a viable alternative to state-of-the-art SCR units. A NSCR requires the consumption of additional natural gas to reheat the tail gas to the right temperature and/or the consumption of an additional reduction agent, such as ammonia, for achiev-ing the right reduction environment inside the catalyst. Thus, comparably high operational costs have to be taken into account compared to an SCR unit11.Therefore, NSCR technology would not be chosen.

In consequence, the following scenarios are in compliance with all applicable laws and regulatory requirements.

Continuation of the status quo without installing any N2O abatement technology in the plant;

Installation of Non-Selective Catalytic Reduction (NSCR) De-NOx system with N2O re-duction unit;

Installation of a N2O destruction or abatement technology instead of the project activity (i.e. taking N2O abatement measures without participating in the CDM):

o Tertiary measure for N2O destruction,o Primary and secondary measures for maximum N2O destruction or abatement.

Step 2 – Barrier Analysis

Application of the following Sub-steps:

11 For other disadvantages of NSCR technology see an EFMA-booklet published in the internet under http://www.efma.org/PRODUCT-STEWARDSHIP-PROGRAM-10/images/EFMABATNIT.pdf (page 18 therein).

http://www.efma.org/PRODUCT-STEWARDSHIP-PROGRAM-10/images/EFMABATNIT.pdf



Step 2a - Identify barriers that would prevent the implementation of alternative scenarios

Investment barriers

The investment barriers analysis asks which of the remaining scenario alternatives is likely to be prevented by the costs associated with it becoming reality.

None of the N2O destruction technology options (including NSCR) are expected to generate any financial or economic benefits other than CDM-related income. Their operation does not create any marketable products or by-products. Plant operators would face significant investment requirements if they decided to install N2O abatement (including NSCR) technology. Unless there is a legal ob-ligation to reduce N2O or NOX emission levels, there is no need to overcome these barriers.

Therefore, all scenarios involving the installation of N2O abatement technology do face investment barriers. The only alternative that does not face significant investment barriers is the “continuation of the status quo” scenario.

Technological barriersAll of the available N2O abatement technologies have to be integrated in the nitric acid plant (for detailed technical information, please see: Mineral Fertilizer Production and the Environment. Part 1. The Fertilizer Industry's Manufacturing Processes and Environmental Issues12 and the Integrated Pollution Prevention and Control (IPPC) reference document on Best available techniques for the manufacture of large volume inorganic chemicals ammonia, acids and fertilizers13). Primary and secondary abatement technologies are installed inside the ammonia oxidation reactor where they may, if not correctly designed and installed, interfere with the nitric acid production process by causing a deterioration of product quality or a loss of production output. Tertiary measures require the installation of a complete reactor between the absorption column and the stack, as well as a re-heating system, which may cause significant downtime of the plant during construction and com-missioning. Accordingly, all scenarios involving the installation of N2O reducing technology – be it primary, secondary or tertiary – are facing technological barriers.

It is therefore unlikely that any plant operator would install such technologies on a voluntary basis without the incentive of any regulatory requirements (emissions caps) or financial benefits (such as revenues from the sale of CERs).

Barriers due to prevailing practiceThis test reconfirms the previous assessments: If the steps taken so far have led to the conclusion that one or more baseline scenario alternatives meet investment related or technological barriers, these scenarios should usually not be found to happen in reality.

So far, secondary catalyst technology has only been operated voluntarily in the context of Joint Im-plementation and Clean Development Mechanism projects. In Bosnia & Herzegovina, there is so far no other nitric acid plant that is operated with any N2O destruction technology.

As a result, all alternatives mentioned under Step 1.b except the continuation of the status quo face:

Investment barriers

12 Source: http://www.fertilizer.org/HomePage/LIBRARY/Our-selection2/Fertilizer-production-techno-logy.html/Mineral-Fertilizer-Production-and-the-Environment.-Part-1.-The-Fertilizer-Industry-s-Manufac-turing-Processes-and-Environmental-Issues.html 13 Source: http://eippcb.jrc.es/reference/

http://eippcb.jrc.es/reference/

http://www.fertilizer.org/HomePage/LIBRARY/Our-selection2/Fertilizer-production-technology.html/Mineral-Fertilizer-Production-and-the-Environment.-Part-1.-The-Fertilizer-Industry-s-Manufacturing-Processes-and-Environmental-Issues.html





Technical barriers as well as

Barriers due to prevailing practice.

Step 2b – Eliminate alternative scenarios which are prevented by the identified barriers

All scenarios mentioned under Step 1.b, with the exception of the “continuation of the status quo”, have to be excluded from further analysis. As a result, there is only one alternative scenario, which is not prevented by any barrier. This alternative is not the proposed project activity undertaken without being registered as a CDM project activity but the “continuation of the status quo”. Therefore, the “continuation of the status quo” represents the baseline scenario. CDM alleviates the investment and technology barriers that prevent the instal-lation of N2O abatement technology. Revenues from the sale of CERs are the only income that would be generated by the project activity. In consequence, no income other than CER rev-enues could be used to pay back the investment costs and to cope with any technical problems re-lated to the installation of N2O abatement technology in the fertilizer production process.

Step 3 – Investment Analysis

Step 3 is not neccessary according to the version 3.0.1 of the “Combined tool to identify the baseline scenario and demonstrate additionality since only one alternative is remaining which is not the project without CDM. However, in order to complete the overview of the project the Invest-ment Analysis has been included.

In this step, the CDM project’s additionality is ascertained. Project proponents need to demonstrate that the intended CDM activity could only be realized if CER sales revenues were available to off-set the investments to be made. Because the project has no revenues other than CDM-related rev-enues, a simple cost analysis is sufficient for demonstrating additionality14.

The proposed project activity includes: the installation of secondary catalyst technology, the installation and maintenance of an Automated Monitoring System (AMS) and project management cost (e.g. training for catalyst and AMS operation, CDM-related au-

dits) .

All these measures entail significant investment requirements. Gikil will pay a regular lease fee for the continued operation and regular replacement of the secondary N2O abatement catalyst of around 1.7 Mio €. The investment and operating costs for the AMS amount to approximately 80 T€ (pur-chasing price and maintenance costs) throughout the crediting period.The total investment and operating costs of the project activity (excluding capital costs) are estim-ated to be approximately 1.8 million € over the course of the whole crediting period15.

14 See the “Tool for the demonstration and assessment of additionality” (Version 05.2); CDM EB 39 th Meet-ing Report, Annex 10; published under http://cdm.unfccc.int/Reference/tools/index.html. The simple cost analysis was provided to the AIE but is not published due to confidentiality reasons. 15 More detailed, confidential information on investment and operation costs can be disclosed to the DOE and the CDM EB upon request.




Revenues from the sale of CERs are the only income that would be generated by the project activ-ity. In consequence, no income other than CER sales revenues could be used to pay back the invest-ment costs. The registration of the project activity as a CDM project and the resulting expected CER revenues are the single source of project revenues. CDM registration is therefore the decisive factor for the realization of the proposed project activity.

Step 4 - Common practise analysis

The previous Steps shall be complemented with an analysis of the extent to which the proposed project type (e.g. technology or practice) has already diffused in the relevant sector and geographical area.

So far, there is no other nitric acid plant in the country of Bosnia and Herzegovina that has installed any N2O abatement technology. Therefore, similar activities cannot be observed.Conclusion of the analysis of the identification of the baseline scenario and demonstrate addition-ality

The proposed CDM project activity passes all the steps of the additionality assessment and is there-fore additional.

B.5. Description of how the anthropogenic emissions of GHG by sources are reduced be-low those that would have occurred in the absence of the registered CDM project activity (as-sessment and demonstration of additionality):

Please note that this section and Section B.4 are complementary. According to version 07 of the PDD guidelines, the same information need not be replicated in both sections, if the “Combined tool to identify the baseline scenario and demonstrate additionality” is used16.

B.6. Emission reductions:

B.6.1. Explanation of methodological choices:

The AM0034, Version 05.1.0., was chosen due to the purpose of the methodology:

It refers to the installation of secondary N2O abatement system in the ammonia oxidation burner of a nitric acid plant to destroy the N2O generated in the ammonia burner.

16 Source: Guidelines for completing the Project Design Document (CDM-PDD), page 11: http://cdm.unfc-cc.int/Reference/Guidclarif/pdd/PDD_guid04.pdf

http://cdm.unfccc.int/Reference/Guidclarif/pdd/PDD_guid04.pdf

http://cdm.unfccc.int/Reference/Guidclarif/pdd/PDD_guid04.pdf



Since the project aims to install such N2O abatement system, AM0034 is the right methodology for conducting this project.

B.6.2. Data and parameters that are available at validation:

Data / Parameter: B.1 / NCSGBC

Data unit: mg/Nm3

Description: N2O concentration in the stack gas during the baseline campaign.Source of data used: N2O concentration analyser Value applied: Will be third party audited during first verificationJustification of the choice of data or de-scription of measure-ment methods and pro-cedures actually ap-plied :

The N2O concentration analyser is QAL1 tested and approved as required by AM0034. NCSG is continuously monitored with the gas analyser and monitor-ing results are taken by the data acquisition and evaluation system for every second of plant operation. Hourly means for NCSG are derived from the collec-ted data. NCSG data that are taken during times when the respective plant is operating outside the permitted operating range will be eliminated.

The resulting hourly average NCSG values are expressed in mg/Nm3 as re-quired by AM0034 and are subject to the following statistical analysis:

a) Calculate the sample mean (x)b) Calculate the sample standard deviation (s)c) Calculate the 95% confidence interval (equal to 1.96 times the standard devi-ation)d) Eliminate all data that lie outside the 95% confidence intervale) Calculate the new sample mean from the remaining NCSG values

Any comment: None

Data / Parameter: B.2 VSGBC

Data unit: Nm3/hDescription: Normal gas volume flow rate of the stack gas during the baseline campaign.Source of data used: Gas volume flow meterValue applied: Will be third party audited during first verificationJustification of the choice of data or de-scription of measure-ment methods and pro-cedures actually ap-plied :

The gas volume flow meter is QAL1 tested and approved as required by AM0034. VSG is continuously monitored with the flow meter and monitoring results are taken by the data acquisition and evaluation system for every second of plant operation. The VSG data are continuously corrected to standard condi-tions (1013 hPa, 273.15 K). Hourly means for VSG are derived from the collec-ted data. VSG data that are taken during times when the respective plant is op-erating outside the permitted operating range will be eliminated.The resulting hourly average VSG values are expressed in Nm3/h as required by AM0034 and are subject to the following statistical analysis:



a) Calculate the sample mean (x)b) Calculate the sample standard deviation (s)c) Calculate the 95% confidence interval (equal to 1.96 times the standard

deviation)d) Eliminate all data that lie outside the 95% confidence intervale) Calculate the new sample mean from the remaining VSG values

Any comment: None

Data / Parameter: B.3 BEBC

Data unit: tN2ODescription: Total N2O gas flow for baseline campaignSource of data used: Calculation from measured dataValue applied: Will be third party audited during first verificationJustification of the choice of data or de-scription of measure-ment methods and pro-cedures actually ap-plied :

N2O emissions during the baseline campaign are determined as per the follow-ing formula:BEBC = VSGBC * NCSGBC * 10-9 * OHBC

Any comment: None

Data / Parameter: B.4 OHBC

Data unit: HoursDescription: Operating hours during baseline campaignSource of data used: Production log and continuous monitoring according to operational parametersValue applied: Will be third party audited during first verificationJustification of the choice of data or de-scription of measure-ment methods and pro-cedures actually ap-plied :

The total operating hours are continuously logged for each campaign.

Any comment: None

Data / Parameter: B.5 NAPBC

Data unit: tHNO3

Description: Metric tonnes of 100% concentrated nitric acid produced during the baseline campaign.

Source of data used: Nitric acid flow: Flow meterNitric acid concentration: Laboratory and flow meter



Value applied: Will be third party audited during first verificationJustification of the choice of data or de-scription of measure-ment methods and pro-cedures actually ap-plied :

It is required by AM0034 to calculate the average baseline emissions factor (EFBL) per tonne of 100% concentrated nitric acid produced during that baseline campaign. NAP is determined by flow measurements HNO3 production and by manual laboratory analysis of HNO3 concentration.

Any comment: None

Data / Parameter: B.6 TSGData unit: °CDescription: Temperature in the stack gasSource of data used: Stack temperature probe Value applied: Not applicableJustification of the choice of data or de-scription of measure-ment methods and pro-cedures actually ap-plied :

In order to adjust VSG to normal conditions, the actual temperature and pres-sure in the stack is used.

Any comment: None

Data / Parameter: B.7 PSGData unit: mbar (absolute)Description: Pressure in the stackSource of data used: Stack pressure probe as part of the flow meter.Value applied: Not applicableJustification of the choice of data or de-scription of measure-ment methods and pro-cedures actually ap-plied :

In order to adjust VSG to normal conditions, the actual temperature and pres-sure in the stack is used.

Any comment: None

Data / Parameter: B.8 EFBL

Data unit: tN2O / tHNO3

Description: Emissions factor for baseline periodSource of data used: Calculated from measured dataValue applied: Will be third party audited during first verificationJustification of the choice of data or de-

EFBL is calculated as per following formula:



scription of measure-ment methods and pro-cedures actually ap-plied :

EFBL = (BEBC / NAPBC) (1 – UNC/100) (tN2O/tHNO3)

Any comment: None

Data / Parameter: B.9 UNCData unit: %

Description: Calculated uncertainty of the overall Automated Monitoring System (AMS)Source of data used: Will be assessed by conducting reference measurements by an independent test-

ing laboratory with EN ISO/IEC 17025 accreditation. Value applied: Will be third party audited during first verificationJustification of the choice of data or de-scription of measure-ment methods and pro-cedures actually ap-plied :

In accordance with AM0034, the overall measurement uncertainty of the AMS is applied in the calculation of the baseline emissions factor (EFBL).

Any comment: None.

Data / Parameter: B.10 AFRData unit: kgNH3/hDescription: Mean Ammonia gas flow rate to the ammonia oxidation reactorSource of data used: Differential pressure measurement Value applied: Not applicable, monitored data of AFR will be used to determine if plant was

operating outside of AFRmax.Justification of the choice of data or de-scription of measure-ment methods and pro-cedures actually ap-plied :

The monitoring of AFR is required by AM0034 in order to determine AFRmax. AFR data from the applicable historic campaigns is used to derive the respect-ive operating parameter.

Any comment: None

Data / Parameter: B.11 AFRmax

Data unit: kgNH3/hDescription: Maximum Ammonia gas flow rate to the ammonia oxidation reactorSource of data used: AFR dataValue applied: Will be third party audited during first verificationJustification of the choice of data or de-

AFRmax is used to determine those periods where the plant may be operating outside of the permitted operating conditions.



scription of measure-ment methods and pro-cedures actually ap-plied :Any comment: None

Data / Parameter: B.12 AIFRData unit: % v/vDescription: Mean Ammonia to air ratio into the ammonia oxidation reactorSource of data used: Measurements of AFR and primary air flow rates Value applied: Not applicable as AIFR will be used to determine AIFRmax.Justification of the choice of data or de-scription of measure-ment methods and pro-cedures actually ap-plied :

The monitoring of AIFR is required by AM0034 in order to determine AIFRmax. The allowable AIFR NH3 to Air ratio for the plant is calculated from the histor-ical data.

Any comment: None

Data / Parameter: B.13 CLBL

Data unit: tHNO3

Description: Length of the baseline campaign measured in metric tonnes of 100% concen-trated nitric acid produced during that baseline campaign

Source of data used: NAPBC

Value applied: Will be third party audited during first verificationJustification of the choice of data or de-scription of measure-ment methods and pro-cedures actually ap-plied :

In accordance with AM0034, the respective baseline campaign length for each plant (CLBL) has to be compared to the established average historic campaign length (CLnormal).

Any comment: None

Data / Parameter: B.14 CLnormal

Data unit: tHNO3

Description: Average length of the historic campaigns measured in metric tonnes of 100% concentrated nitric acid produced during that baseline campaign.

Source of data used: As described for parameter NAP.Value applied: Will be third party audited during first verificationJustification of the choice of data or de-

In accordance with AM0034, the average historic campaign length (CLnormal) is defined as the average campaign length for the historic campaigns that are used



scription of measure-ment methods and pro-cedures actually ap-plied :

to define operating condition.

Any comment: None.

Data / Parameter: B.15 AIFRmax

Data unit: % v/vDescription: Maximum Ammonia to air ratio into the ammonia oxidation reactor.Source of data used: AIFR DataValue applied: Will be third party audited during first verificationJustification of the choice of data or de-scription of measure-ment methods and pro-cedures actually ap-plied :

In accordance with AM0034, AIFRmax is used to determine those periods where the plant may be operating outside of the permitted operating conditions.

Any comment: None

Data / Parameter: B.16 OTh

Data unit: °CDescription: Oxidation temperature in the ammonia oxidation reactor (AOR).Source of data used: Thermocouples inside the AOR.Value applied: Not applicableJustification of the choice of data or de-scription of measure-ment methods and pro-cedures actually ap-plied :

In accordance with AM0034, the oxidation temperature in the ammonia oxida-tion reactor (OTh) has to be monitored and compared to the normal range for oxidation temperature (OTnormal).VSG and NCSG data obtained when OTh was above or below OTnormal has to be eliminated from the calculation of EFBL.

Any comment: None

Data / Parameter: B.17 OTnormal

Data unit: °C – min and maxDescription: Normal range operating temperatureSource of data used: Thermocouples inside the AOR.Value applied: Will be third party audited during first verificationJustification of the choice of data or de-scription of measure-ment methods and pro-

AM0034 requires the establishment of the normal range of operating temperat-ures in the ammonia oxidation reactor.



cedures actually ap-plied :Any comment: None

Data / Parameter: B.18 OPh

Data unit: bar (gauge)Description: Oxidation Pressure for each hourSource of data used: Pressure probe at ammonia to air mixer.Value applied: Not applicable.Justification of the choice of data or de-scription of measure-ment methods and pro-cedures actually ap-plied :

In accordance with AM0034, the oxidation pressure in the ammonia oxidation reactor (OPh) has to be monitored and compared to the normal range for oxida-tion temperature (OPnormal). VSG and NCSG data obtained during times when OPh was above or below OPnormal has to be eliminated from the calculation of EFBL.

Any comment: None

Data / Parameter: B.19 OPnormal

Data unit: bar (gauge) – min and maxDescription: Normal operating pressure of the ammonia oxidation reactor.Source of data used: Manual readings from gauges according to plant log Value applied: Will be third party audited during first verificationJustification of the choice of data or de-scription of measure-ment methods and pro-cedures actually ap-plied :

AM0034 requires the establishment of the normal range of operating pressure in the ammonia oxidation reactor.

Any comment: None

Data / Parameter: B.20 GSnormal

Data unit: Name of Supplier Description: Gauze supplier for the operating condition (i.e. historic) campaigns for the plantSource of data used: Documents from supplierValue applied: Will be third party audited during first verificationJustification of the choice of data or de-scription of measure-ment methods and pro-cedures actually ap-plied :

AM0034 requires the monitoring of the supplier of the ammonia oxidation cata-lyst gauze.



Any comment: None

Data / Parameter: B.21 GSBL

Data unit: Name of SupplierDescription: Gauze supplier for the baseline campaign for the plantSource of data used: Documents from supplierValue applied: Will be third party audited during first verificationJustification of the choice of data or de-scription of measure-ment methods and pro-cedures actually ap-plied :

AM0034 requires the monitoring of the supplier of the ammonia oxidation cata-lyst gauze. The recorded information is not further processed in the methodo-logy but it is used as a plausibility check against the information for GC.

Any comment: None

Data / Parameter: B.22 GCnormal

Data unit: %Description: Gauze composition during the historic operating campaigns expressed as per-

centage by weight of the precious metals Platinum, Rhodium and, if applicable, Palladium comprising the Ammonia Oxidation Catalyst gauzes.

Source of data used: Documents from supplierValue applied: Will be third party audited during first verificationJustification of the choice of data or de-scription of measure-ment methods and pro-cedures actually ap-plied :

In accordance with AM0034, if the composition of the ammonia oxidation cata-lyst used for the baseline campaign and after the implementation of the project are identical to that used in the campaign for setting the operating conditions (previous five campaigns), then there shall be no limitations on N2O baseline emissions.

Any comment: None

Data / Parameter: B.23 GCBL

Data unit: %Description: Gauze composition during the baseline campaign expressed as percentage by

weight of the precious metals Platinum, Rhodium and, if applicable, Palladium comprising the Ammonia Oxidation Catalyst gauzes.

Source of data used: Documents from supplierValue applied: Will be third party audited during first verificationJustification of the choice of data or de-scription of measure-ment methods and pro-

A change in the composition of the ammonia oxidation catalyst in the baseline campaign to a composition other than that used in the previous five campaigns, is permissible without any limitation on the N2O baseline emissions if the fol-lowing conditions are met



cedures actually ap-plied :

(i) The baseline catalyst composition is considered as common practice in the industry, or(ii) The change in catalyst composition is justified by its availability, perform-ance, relevant literature etc.

Any comment: None

Data / Parameter: B.24 EFreg


Description: Emissions cap for N2O from nitric acid production set by government regula-tion

Source of data used: Bosnian LegislationValue applied: NoneJustification of the choice of data or de-scription of measure-ment methods and pro-cedures actually ap-plied :

There is currently no regulation in Bosnia that limits the emissions of N2O from nitric acid production.

Any comment: None.

B.6.3 Ex-ante calculation of emission reductions:

Please note, that the baseline has not been established in the course of the validation and will be third party audited during first verification. Thus only estimations for baseline and project emis-sions are taken into account for calculating the emission reductions.

Ex-ante calculation of emission reductions applied in the PDD

For the calculation of the estimated emission reductions it was taken into account: The capacity of 178 tHNO3/day for 330 operating days per year, A preliminary and estimated baseline emissions factor (EFBL) of 7.00 kgN2O/tHNO3

17,. A reduction efficiency of 85%

Estimated baseline emissions factor

EFBL 7.00 kgN2O/tHNO3

Estimated Project emissions factor at an emission abatement efficiency of 85%

EFP 7.00 kgN2O/tHNO3* (1-0.85) = 1.05 kgN2O/tHNO3

Emission reductions of one crediting period year:

17 See section B.6.2 of this PDD (specifically table B.8).



ER (7.00 kgN2O/tHNO3- 1.05 kgN2O/tHNO3)*178 tHNO3/day*330 operating days/year*310 GWPN2O /1000

= 98,247 tCO2e

Crediting period year

Forecasted nitric acid production

(tHNO3)

Baseline emissions (tCO2e)

Project emissions (tCO2e)

Emission reductions (tCO2e)

2012 53,265 115,585 17,338 98,247 2013 53,265 115,585 17,338 98,247 2014 53,265 115,585 17,338 98,247 2015 53,265 115,585 17,338 98,247 2016 53,265 115,585 17,338 98,247 2017 53,265 115,585 17,338 98,247 2018 53,265 115,585 17,338 98,247 2019 53,265 115,585 17,338 98,247 2020 53,265 115,585 17,338 98,247 2021 53,265 115,585 17,338 98,247 Total 532,650 1,155,851 173,378 982,473

Table: Estimated baseline / project emissions and resulting estimate for emission reductions

Calculation of emission reductions as per AM0034 Version 5.1.0.

Please note that this calculation will be used as soon as the baseline values are measured.

1. Determination of the permitted operating conditions of the nitric acid plant to avoidoverestimation of baseline emissionsIn order to avoid the possibility that the operating conditions of the nitric acid production plant are modified in such a way that increases N2O generation during the baseline campaign, the normal ranges for operating conditions shall be determined for the following parameters: (i) Oxidation tem-perature; (ii) Oxidation pressure; (iii) Ammonia gas flow rate, and (iv) Air input flow rates. The permitted range shall be established using the procedures described below. Note that data for these parameters is routinely logged in the process control systems of the plant.

The “permitted range” for oxidation temperature and pressure is to be determined using one of thefollowing sources:



(a) Historical data for the operating range of temperature and pressure from the immediatelyprevious five campaigns. (or fewer, if the plant has not been operating for five campaigns).In case there are abnormal campaigns identified by the project participants among these fivecampaigns, a request for deviation from this methodology should be submitted; or,

(b)If no data on historical temperatures and pressures is available, the range of temperature and pressure stipulated in the operating manual for the existing equipment; or

(c) If no operating manual is available or the operating manual gives insufficient information, from an appropriate technical literature source18.

If option (a) is selected, the permitted range is determined through a statistical analysis of the historical data in which the time series data is to be interpreted as a sample for a stochastic variable. All data that falls within the upper and lower 2.5% percentiles of the sample distribution is defined as abnormal and shall be eliminated. The permitted range of operating temperature and pres-sure is then assigned as the historical minimum (value of parameter below which 2.5% of the observation lie) and maximum operating conditions (value of parameter exceeded by 2.5% of observations).

The upper limits for ammonia flow and ammonia to air ratio shall be determined using one of the following three options, in preferential order:(a) Historical maximum operating data for hourly ammonia gas and ammonia to air ratio for the

immediately previous five campaigns. (or fewer, if the plant has not been operating for five campaigns); in case there are abnormal campaigns identified by the project participants among these five campaigns, a request for deviation from this methodology; should be submitted; or

(b) If no data is available, calculation of the maximum permitted ammonia gas flow rates and ammonia to air ratio as specified by the ammonia oxidation catalyst manufacturer or for typical catalyst loadings; or

(c) If information for (b) above is not available, based on a relevant technical literature source.

18 For example from Ullmann.s Encyclopedia of Industrial Chemistry, Fifth, completely revised edition, Vo lume A 17, VCH, 1991, P. 298, Table 3 or other standard refer-ence work or literature source.



Once the permitted ranges for pressure, temperature, ammonia flow rate and ammonia to air ratio are determined, it must also be demonstrated that these ranges are within the specifications of the facility. If not, the baseline campaign must be reassessed.

2. Determination of baseline emission factor: measurement procedure for N2O concentration and gas volume flowN2O concentration and gas volume flow are to be monitored throughout the baseline campaign. The monitoring system is to be installed using the European Norm 141812 (2004) (Please refer Annex 1 for Monitoring practices and performance standards to be followed). This monitoring system provides separate readings for N2O concentration and gas flow volume for a defined period of time (e.g., every hour of operation, it provides an average of the measured values for the previous 60 minutes). Error readings (e.g., downtime or malfunction) and extreme values are to be automatic-ally eliminated from the output data series by the monitoring system.Measurement results can be distorted before and after periods of downtime or malfunction of the monitoring system and can lead to mavericks. To eliminate such extremes and to ensure a conser-vative approach, the following statistical evaluation is to be applied to the complete data series of N2O concentration as well as to the data series for gas volume flow. The following statistical pro-cedure will be applied to data obtained after eliminating data measured for periods where the plant operated outside the permitted ranges:

(a) Calculate the sample mean (x);(b) Calculate the sample standard deviation(s);(c) Calculate the 95% confidence interval (equal to 1.96 times the standard deviation);(d) Eliminate all data that lie outside the 95% confidence interval;(e) Calculate the new sample mean from the remaining values (volume of stack gas (VSG) and N2O concentration of stack gas (NCSG).

Use the mean value of VSG for baseline campaign (VSGBC) in equation 1, however for the calcula-tion of mean value of NCSG (NCSGBC) use equation 3, by placing the result of the hourly measure-ment (NCSGBCx and VSGBCx), corrected by the above statistical procedure.



The average mass of N2O emissions per hour is estimated as product of the NCSG and VSG1920. The N2O emissions per campaign are estimated as product of N2O emission per hour and the total number of complete hours of operation of the campaign using the following equation:

(1) BEBC = VSGBC * NCSGBC * 10-9 * OHBC (tN2O)

The plant specific baseline emissions factor representing the average N2O emissions per tonne of nitric acid over one full campaign is derived by dividing the total mass of N2O emissions by the total output of 100% concentrated nitric acid for that period. The overall uncertainty of the monitor-ing system shall also be determined and the measurement error will be expressed as a percentage (UNC). The N2O emission factor per tonne of nitric acid produced in the baseline period (EFBL) shall then be reduced by the estimated percentage error as follows:

(2) EFBL= (tN2O/tHNO3)

where:EFBL Baseline N2O emissions factor (tN2O/tHNO3)BEBC Total N2O emissions during the baseline campaign (tN2O)NCSGBC Mean concentration of N2O in the stack gas during the baseline campaign

(mgN2O/m3) (To be calculated using equation 3)

19 The baseline emission factor for N2O per unit nitric acid production is estimated as estimated N2O produced during the campaign divided by the total nitric acid pro-duced during that campaign. The total N2O produced is estimated and not mea-sured, as N2O production during the periods when the plant is operating outside the

normal operating parameters can be greater than when it is operating within the normal operating period. N2O produced in a campaign is estimated as product of average N2O concentration in the stack gas, volume of stack gas for the campaign, and total operating hours of the campaign. To ensure that N2O is conserva tively estimated, all the values of N2O concentration in the stack gas and hourly flow rate of stack gas rec orded when the plant is operating outside the normal parameters are excluded from estimating the average N2O concentration and hourly flow rate val-ues for the campaign. As the N2O emission factor is calculated as estimated N2O produced during the campaign divided by the actual nitric acid produced during the cam paign, the estimated N2O for campaign reflects the N2O that would have been produced had the operating parameters of plant been within the normal operat-ing range. Therefore, the total operating hours of the cam paign are used in equation (1).20 VSG and NCSGC should be measured simultaneously, and values should be expressed on the same basis

(wet or dry) and should be corrected to normal conditions (101.325 kPa, 0 deg C). If the instrument (or measurement system) uses an algorithm to convert actual conditions to normal conditions, the proper

source of such an algorithm should be used (e.g., based on procedures of EN14181). For all the cases, either man ual or algorithm-based conversion of actual conditions to normal conditions, the temperat-ure and pressure of actual conditions of stack gas should be recorded as per monitoring plan of this methodology.



OHBC Total operating hours of the baseline campaign (h)VSGBC Mean gas volume flow rate at the stack in the total baseline campaign

(m3/h)NAPBC Total nitric acid production during the baseline campaign, corresponding to

the operating hours of the total baseline campaign length (OHBC) (tHNO3)UNC Overall uncertainty of the monitoring system (%), calculated as the com-

bined uncertainty of the applied monitoring equipment

In the absence of any national or regional regulations for N2O emissions, the resulting EFBL will be used as the baseline emission factor.Note: Under certain circumstances, the operating conditions during the measurement period used to determine baseline N2O emission factor may be outside the permitted range or limit corresponding to normal operating conditions. For instance, temperature, pressure, ammonia flow rate or ammonia to air ratio may be outside the permitted condition. Any N2O baseline data that is measured during hours where the operating conditions are outside the permitted range, except OHBC and NAPBC, must be eliminated from the calculation of the baseline emissions factor. If historical data and baseline data for each minute are available, values could be eliminated on a minute-by-minute basis.

NCSGBC shall be calculated as follows:

(3) NCSGBC =

Where:x Each measurement interval of 1 hour or less (for which AMS calculates the average

values based on 2-second measurements )bmp Baseline measurement period.

bmp corresponds to period of CLnormal , if BL normal CL > CL , orbmp corresponds to the period of CLBL , if BL normal CL ≤ CL , orbmp corresponds to the period of CLn , if normal CLn < CL

NCSGBCx Concentration of N2O in the stack gas in each measurement time interval of 1hour or less (as calculated by AMS, based on 2-second measurements) during the base-line measurement period (bmp), excluding the outliers as determined using the sta-tistical procedure (mgN2O/m3)

VSGBCx Stack Gas volume flow rate in each measurement time interval of 1 hour or less (as calculated by AMS, based on 2-second measurements) in the stack during the base-line measurement period (bmp) excluding the outliers as determined using the statistical procedure (m3/h)



The baseline campaign is not valid and must be repeated if the plant operates outside of the per-mitted range for more than 50% of the duration of the baseline campaign. In order to further ensure that operating conditions during the baseline campaign are representative of normal operating conditions, statistical tests should be performed to compare the average values of the permitted operating conditions with the average values obtained during the baseline determi-nation period. If it can be concluded with 95% confidence level, in any of the tests, that the two values are different, then the baseline determination should be repeated.

Impact of regulationsShould N2O emissions regulations that apply to nitric acid plants be introduced in the host country or jurisdiction covering the location of the project activity, such regulations shall be compared to the calculated baseline factor for the project (EFBL), regardless of whether the regulatory level is ex-pressed as:

An absolute cap on the total volume of N2O emissions for a set period; A relative limit on N2O emissions expressed as a quantity per unit of output; or A threshold value for specific N2O mass flow in the stack.

In this case, a corresponding plant-specific emissions factor cap (max. allowed tN2O/tHNO3) is to be derived from the regulatory level. If the regulatory limit is lower than the baseline factor deter-mined for the project, the regulatory limit shall serve as the new baseline factor, that is:

(4) If EFBL > EFreg

Then the baseline N2O emission factor shall be EFreg for all calculations.

Where:EFBL Baseline emissions factor (tN2O/tHNO3)EFreg Emissions level set by newly introduced policies or regulations (tN2O/

tHNO3). Such EFreg shall be determined according to the nature of the regu-lation (e.g., in terms of absolute emission, by-product rate, concentration in stack gas), as described in the approved methodology AM0028

Composition of the ammonia oxidation catalystIf the composition of the ammonia oxidation catalyst used for the baseline campaign and after the implementation of the project are identical to that used in the campaign for setting the operating conditions (previous five campaigns), then there shall be no limitations on N2O baseline emissions. A change in the composition of the ammonia oxidation catalyst in the baseline campaign to a com-position other than that used in the previous five campaigns is permissible without any limitation on the N2O baseline emissions if the following conditions are met:

(i) The baseline catalyst composition is considered as common practice in the industry; or



(ii)The change in catalyst composition is justified by its availability, performance, relevant literature etc.

Otherwise, the baseline emission factor shall be set to the conservative IPCC default emission fac-tor for N2O from nitric acid plants which have not installed N2O destruction measures (4.5 kg-N2O/t HNO3).

If the nitric acid plant operator has changed the composition of the ammonia oxidation catalyst in a project campaign to a composition not used in the baseline campaign, the project proponent could:(i) Repeat the baseline campaign to determine a new baseline emissions factor (tN2O/tHNO3);

compare it to the previous baseline emissions factor and adopt the lower figure as EFBL; or(ii)Set the baseline emissions factor to the conservative IPCC default emission factor for N2O from

nitric acid plants which have not installed N2O destruction measures (4.5 kg-N2O/t HNO3).

Parameters to be monitored for composition of the catalyst are as follows:

GSnormal Gauze supplier for the operating condition campaigns;GSBL Gauze supplier for baseline campaign;GSproject Gauze supplier for the project campaign;GCnormal Gauze composition for the operating condition campaigns;GCBL Gauze composition for baseline campaign;GCproject Gauze composition for the project campaign.

Campaign LengthIn order to take into account the variations in campaign length and its influence on N2O emission levels, the historical campaign lengths and the baseline campaign length are to be determined and compared to the project campaign length. Campaign length is defined as the total number of metric tonnes of nitric acid at 100% concentration produced with one set of gauzes.

Historical Campaign LengthThe average historical campaign length (CLnormal) defined as the average campaign length for the historical campaigns used to define operating condition (the immediately previous five campaigns) (or fewer, if the plant has not been operating for five campaigns), will be used as a cap on the length of the baseline campaign. In case there are abnormal campaigns identified by the project par-ticipants among these five campaigns, a request for deviation from this methodology should be submitted.Baseline Campaign Length (CLBL)

If , NCSGBC and VSGBC values measured during the baseline campaign can be used for the calculation of EFBL (subject to the elimination of data that was monitored during times where the plant was operating outside of the permitted range).



If , the values for concentration of N2O in the stack gas and gas volume flow rate to derive NCSGBC and VSGBC that were measured beyond the length of CLnormal are to be eliminated from the calculation of NCSGBC. However all the values of stack gas volume in baseline campaign should be used in the calculation of mean value of VSGBC. NCSGBC and VSGBC are further used in the calculation of EFBL.

Project EmissionsOver the duration of the project activity, N2O concentration and gas volume flow in the stack of the nitric acid plant as well as the temperature and pressure of ammonia gas flow and ammonia-to-air ratio, will be measured continuously.

Estimation of campaign-specific project emissionsThe monitoring system is to be installed using the guidance document EN 14181 and will provide separate readings for N2O concentration and gas flow volume for a defined period of time (e.g., ev-ery hour of operation, i.e., an average of the measuring values of the past 60 minutes). Error read-ings (e.g. downtime or malfunction) and extreme values are automatically eliminated from the out-put data series by the monitoring system. Next, the same statistical procedure that was applied to the baseline data series is to be applied to the project data series, as given below:

(a) Calculate the sample mean (x);(b) Calculate the sample standard deviation(s);(c) Calculate the 95% confidence interval (equal to 1.96 times the standard deviation);(d) Eliminate all data that lie outside the 95% confidence interval;(e) Calculate the new sample mean from the remaining values (volume of stack gas (VSG) and N2O concentration of stack gas (NCSG).

Use the mean value of VSG for project campaign (VSGPC) in equation 5, however for the calcula-tion of mean value of NCSG (NCSGPC) use equation 6, by placing the result of the hourly measure-ment (NCSGxp and VSGxp), corrected by the above statistical procedure.

(5) PEn = VSGPC * NCSGPC * 10-9 * OHPC (tN2O)

where:PEn Total N2O emissions of the nth project campaign (tN2O)VSGPC Mean stack gas volume flow rate for the project campaign (m3/h)21

21 VSG and NCSG should be measured simultaneously, and values should be expressed on the same basis (wet or dry) and should be corrected to normal conditions (101.325 kPa, 0 deg C). If the instrument (or measure ment system) uses the algorithm to convert actual conditions to normal conditions, the proper source of such algorithm should be used (e.g. based on procedures of EN14181). For all the cases, either manual or algo rithm-based conversion of actual conditions to normal conditions, the temperature and pressure of actual conditions of stack gas should be recorded as per monitoring plan of this methodology.



NCSGPC Mean concentration of N2O in the stack gas for the project campaign (mgN2O/m3)

OHPC Is the number of hours of operation in the specific monitoring campaign (h)

NSCGpc shall be calculated using the following equation:

(6) NCSGPC =

where:xp Each measurement interval of 1 hour or less (for which AMS calculates the average

values based on 2-second measurements )pcp Project campaign periodNCSGxp Concentration of N2O in the stack gas in each measurement time interval of 1 hour

or less (as calculated by AMS, based on 2-second measurements) during the project campaign (pcp), excluding the outliers as determined using the statistical procedure above (mgN2O/m3)

VSGxp Stack Gas volume flow rate in each measurement time interval of 1 hour or less (as calculated by AMS, based on 2-second measurements) in the stack during the pro-ject campaign (pcp), excluding the outliers as determined using the statistical pro-cedure above (m3/h)

Derivation of a moving average emission factorIn order to take into account possible long-term emissions trends over the duration of the project activity and to take a conservative approach a moving average emission factor shall be estimated as follows:Step 1: Estimate campaign specific emissions factor for each campaign during the project.s credit-ing period by dividing the total mass of N2O emissions during that campaign by the total produc-tion of 100% concentrated nitric acid during that same campaignFor example, for campaign n the campaign specific emission factor would be:

(7) EFn = PEn / NAPn (tN2O/tHNO3)

Step 2: Estimate a moving average emissions factor to be calculated at the end of a campaign ‘n’ as follows:

(8) EFma,n = (EF1 + EF2 + … + EFn) / n



where:EFn Emission factor calculated for a specific project campaign (tN2O/tHNO3) PEn Total N2O emissions of the nth project campaign (tN2O)NAPPC Nitric acid production for the project campaign (tHNO3). The maximum

value of NAP shall not exceed the design capacity.

This process is repeated for each campaign such that a moving average, EFma,n, is established overt ime, becoming more representative and precise with each additional campaign.To calculate the total emission reductions achieved in a campaign in formula (7) below, the higher of the two values EFma,n and EFn shall be applied as the emission factor relevant for the particular campaign to be used to calculate emissions reduction s (EFp). Thus:

(9a) If EFma,n > EFn then EFp = EFma,n (9b) If EFma,n < EFn then EFp = EFn

Where:EFn Emission factor calculated for a specific project campaign (tN2O/tHNO3) EFn,ma Moving average (ma) emission factor of after nth campaigns, including the

current campaign (tN2O/tHNO3) n Number of campaigns to date EFp Emissions factor that will be applied to calculate the emissions reduction

from this specific campaign (i.e., the higher of EFx and EFn) (N2O/tHNO3)

Minimum project emission factorA campaign-specific emissions factor shall be used to cap any potential long-term trend towards decreasing N2O emissions that may result from a potential built up of platinum deposits. After the first ten campaigns of the crediting period of the project, the lowest EFn observed during those cam-paigns will be adopted as a minimum (EFmin). If any of the later project campaigns results in a EFn

that is lower than EFmin, the calculation of the emission reductions for that particular campaign shall used EFmin and not EFn.22

Where:EFmin Is equal to the lowest EFn observed during the first 10 campaigns of the

project crediting period (N2O/tHNO3)

Project Campaign Length(a) Longer Project Campaign

22 In practice this will mean that, if the assumption that platinum deposits do have a re-ducing effect on N2O emissions is correct, then an increasing adoption of EFmin instead of EFn should be experienced as the project progresses through its crediting period



If CLn> CLnormal then all values of concentration of N2O in stack gas and stack gas volume meas-ured during the project campaign can be used for the calculation of mean value of concentration of N2O in stack gas (NCSGPC), and mean gas volume flow rate (VSGPC) respectively, which is further used in the calculation of EFn.

(b) Shorter Project CampaignIf CLn < CLnormal and CLBL > CLn, recalculate EFBL by eliminating those values of concen-tration in N2O of stack gas N2O values and values of volume of stack gas that were obtained from baseline campaign beyond the CLn for calculation of the mean values of concentration in N2O of stack gas (NCSGBC). However all the values of stack gas volume in baseline campaign should be used in the calculation of mean value of VSGBC. NCSGBC and VSGBC are further used in the calculation of EFBL. The value of NCSGPC and VSGPC for project campaign should be cal-culated using all the values of N2O concentration in stack gas, and all the values of stack volume respectively for the purpose of calculation of EFn.

LeakageNo leakage calculation is required.

Emission ReductionsThe emission reductions for the project activity over a specific campaign are determined by deduct-ing the campaign-specific emission factor from the baseline emission factor and multiplying the result by the production output of 100% concentrated nitric acid over the campaign period and the GWP of N2O:

(10) ER = (EFBL – EFP) * NAPPC *GWPN2O (tCO2e)

Where:ER Emission reductions of the project for the specific campaign (tCO2e)EFBL Baseline emissions factor (tN2O/tHNO3)EFP Emissions factor used to calculate the emissions from this particular cam-

paign (i.e. the higher of EFma,n and EFn)NAPPC Nitric acid production for the project campaign (tHNO3). The maximum

value of NAP shall not exceed the design capacity.GWPN2O Global warming potential for the N2O as per IPCC default value

By nameplate (design) implies the total yearly capacity (considering 365 days of operation per year) as per the documentation of the plant technology provider (such as the Operation Manual). If the plant has been modified to in-crease production, and such de-bottleneck or expansion projects were docu-mentation of the projects is available (such as, but not limited to: properly



dated engineering plans or blueprints, engineering, materials and/or equip-ment expenses, or third party construction services, etc.).

Changes required for methodology implementation in 2nd and 3rd cred-iting periodsNo changes are required

B.6.4 Summary of the ex-ante estimation of emission reductions:

Year

Estimation of project activity emissions (tonnes of CO2e)

Estimation of baseline emissions (tonnes of CO2e)

Estimation of leakage (tonnes of CO2e)

Estimation of overall emission reductions (tonnes of CO2e)

2012 17,338 115,585 none 98,247 2013 17,338 115,585 none 98,247 2014 17,338 115,585 none 98,247 2015 17,338 115,585 none 98,247 2016 17,338 115,585 none 98,247 2017 17,338 115,585 none 98,247 2018 17,338 115,585 none 98,247 2019 17,338 115,585 none 98,247 2020 17,338 115,585 none 98,247 2021 17,338 115,585 none 98,247

Total 173,378 1,155,851 none 982,473 Table: Estimated baseline / project emissions and resulting estimate for emission reductions

B.7 Application of the monitoring methodology and description of the monitoring plan:

B.7.1 Data and parameters monitored:

Data / Parameter: B.25 NCSGData unit: mg/Nm3

Description: N2O concentration in the stack gas during each project campaignSource of data to be used:

N2O concentration analyser

Value of data applied for the purpose of cal-culating expected emission reductions in

Not applicable (see B.6.3)



section B.5 Description of meas-urement methods and procedures to be ap-plied:

The N2O concentration analyser is QAL1 tested and approved as required by AM0034. NCSG is continuously monitored with the gas analyser and monitor-ing results are taken by the data acquisition and evaluation system for every second of plant operation. Hourly means for NCSG are derived from the collec-ted data. NCSG data that are taken during times when the respective plant is op-erating outside the permitted operating range will be eliminated. The resulting hourly average NCSG values are now expressed in mg/Nm3 as re-quired by AM0034 and where subsequently subjected to the following statistical analysis:

a) Calculate the sample mean (x)b) Calculate the sample standard deviation (s)c) Calculate the 95% confidence interval (equal to 1.96 times the standard devi-ation)d) Eliminate all data that lie outside the 95% confidence intervale) Calculate the new sample mean from the remaining NCSG values

QA/QC procedures to be applied:

According to EN 14181, the AMS will be tested and calibrated by an external laboratory with EN ISO IEC 17025 Accreditation. The QAL223 test is conducted once every 5 years, the AST test is conducted once per year. Every 5 years the AST test is part of the QAL2 test.

Any comment: None.

Data / Parameter: B.26 VSGData unit: Nm3/hDescription: Normal gas volume flow rate of the stack gas during each project campaignSource of data to be used:

Gas volume flow meter

Value of data applied for the purpose of cal-culating expected emission reductions in section B.5


Description of meas-urement methods and procedures to be ap-plied:

The gas volume flow meter is QAL1 tested and approved as required by AM0034. VSG is continuously monitored with the flow meter and monitoring results are taken by the data acquisition and evaluation system for every second of plant operation. The VSG data are continuously corrected to standard condi-

23 Due to the fact that conducting the QAL2 and AST both require the plant being in operation some flexibility in re -gard to actual date of conduction is required. Events such as plant shut-down along with the aspects of availability and required planning time (the test is to be carried out by an independent 3 rd party holding respective accreditation, which usually comes from overseas) as well as customs check of the equipment, etc. can easily delay execution of the test. This means that although once every year either QAL2 or AST shall be conducted the actual time period between 2 consecutive performances is not mandatorily bound to strictly one year (365 days) but allows for some tolerance. Nev-ertheless, under consideration of operating conditions and practical reasons it is generally aimed on performing the tests one to another as close to one year as possible.



tions (1013 hPa, 273.15 K). Hourly means for VSG are derived from the collec-ted data. VSG data that are taken during times when the respective plant is oper-ating outside the permitted operating range will be eliminated. The resulting hourly average VSG values are expressed in Nm3/h as required by AM0034 and are subject to the following statistical analysis:

f) Calculate the sample mean (x)g) Calculate the sample standard deviation (s)h) Calculate the 95% confidence interval (equal to 1.96 times the standard

deviation)i) Eliminate all data that lie outside the 95% confidence interval

Calculate the new sample mean from the remaining VSG valuesQA/QC procedures to be applied:

According to EN 14181 the AMS will be tested and calibrated by an external laboratory with EN ISO IEC 17025 Accreditation. The QAL224 test is conducted once every 5 years; the AST test is conducted once per year. Every 5 years the AST test is part of the QAL2 test.

Any comment: None.

Data / Parameter: B.27 PEn

Data unit: tN2ODescription: Total mass N2O emissions in each project campaignSource of data to be used:

Calculated from the measurements




Not applicable, calculated value as per the following formula:PEn = VSG * NCSG * 10-9 * OH


Not applicable. Calculated value.

Any comment: None.

Data / Parameter: B.28 OHn

Data unit: HoursDescription: Total operating hours during each project campaignSource of data to be used:

Production log and continuous monitoring according to operational parameters

24 See footnote 23




330 days = 7920 hours


The total operating hours are logged continuously in the production log.

QA/QC procedures to be applied:Any comment: None.

Data / Parameter: B.29 NAPData unit: tHNO3

Description: Metric tonnes of 100% concentrated nitric acid during each project Source of data to be used:

Volume of HNO3 is continuously measured by a flow meter. Density & acid concentration are determined by laboratory analysis


53,265 tHNO3/crediting year


Volume of HNO3 is continuously measured by a flow meter. Density & acid concentration are determined by laboratory analysis.

100 % HNO3 is calculated by the available dataQA/QC procedures to be applied:

Maintenance and calibration of the mass flow meter and density meter are ap-plied under the internal QA/QC procedures.

Any comment: None

Data / Parameter: B.30 TSGData unit: °CDescription: Temperature in the stack gasSource of data to be used:

Stack temperature probe



Description of meas- In order to adjust VSG to normal conditions, the actual temperature and pressure



urement methods and procedures to be ap-plied:

in the stack is used.



Any comment: None.

Data / Parameter: B.31 PSGData unit: mbar (absolute)Description: Pressure in the stackSource of data to be used:

Stack pressure probe




In order to adjust VSG to normal conditions, the actual temperature and pressure in the stack is used.



Any comment: None.

Data / Parameter: B.32 EFn


Description: Emissions factor for campaign n.Source of data to be used:

Calculated from measured data



Description of meas-urement methods and

Calculated as per following formula:

25See footnote 23



procedures to be ap-plied:

EFn = PEn / NAPn


Not applicable.

Any comment: None

Data / Parameter: B.33 EFma,n


Description: Moving average emissions factor derived over time from campaign specific emissions factors.

Source of data to be used:

Calculated from measured data




Calculated as per following formula:(5) EFma,n = (EF1 + EF2 + … + EFn) / n(5a) If EFma,n > EFn then EFp = EFma,n (5b) If EFma,n < EFn then EFp = EFn


Not applicable.

Any comment: None

Data / Parameter: B.34 AFRData unit: kgNH3/hDescription: Mean Ammonia gas flow rate to the ammonia oxidation reactorSource of data to be used:

Differential pressure measurement


Not applicable, monitored data of AFR will be used to determine if plant was op-erating outside of AFRmax.


The ammonia flow is continuously measured by individual instrument in each plant.


Part of internal procedures



Any comment: None.

Data / Parameter: B.35 AIFRData unit: % v/vDescription: Mean Ammonia to air ratio into the ammonia oxidation reactorSource of data to be used:

Measurements of AFR and primary air flow rates


Not applicable


The monitoring of AIFR is required by AM0034 in order to determine whether the plant was operating within the permitted operating range during the baseline campaign. During project campaigns AIFR values are not applied



Any comment: None.

Data / Parameter: B.36 CLn

Data unit: tHNO3

Description: Length of each project campaign measured in metric tonnes of 100% concen-trated nitric acid produced during that campaign for the plant.


See NAP parameter


Not available


See comments for NAP


See comments for NAP

Any comment: None.

Data / Parameter: B. 37 EFp



Data unit: tN2O/tHNO3

Description: Emissions factor used for the specific campaign n to determine the emission re-ductions of that campaign.


Calculation of EFn and EFma,n.


1.05 kgN2O/tHNO3


Calculated as per following formular:If EFma,n > EFn then EFP = EFma,n

If EFma,n < EFn then EFP = EFn


Not applicable.

Any comment: None

Data / Parameter: B.38 EFmin

Data unit: tN2O/tHNO3

Description: EFmin is equal to the lowest EFn observed during the first 10 campaigns of the project crediting period.


EFn-values observed during the first ten campaigns.


Not available


A campaign-specific emissions factor will be used to cap any potential long-term trend towards decreasing N2O emissions that may result from a potential built up of platinum deposits. After the first ten campaigns of the crediting period of the project, the lowest EFn observed during those campaigns will be adopted as a minimum (EFmin). If any of the later project campaigns results in an EFn-value that is lower than EFmin, the calculation of the emission reductions for that partic-ular campaign shall used EFmin and not EFn.


Not applicable.

Any comment: None.



Data / Parameter: B. 39 OTh

Data unit: °CDescription: Oxidation temperature in the ammonia oxidation reactor (AOR).Source of data to be used:

Thermocouples inside the AOR.


Not applicable. Used to determine when plant is operating outside of permitted range during baseline campaign or if the plant is out of operation


Oxidation temperature is controlled during operation.



Any comment: None.

Data / Parameter: B.40 OPh

Data unit: bar (gauge)Description: Oxidation Pressure for each hourSource of data to be used:

Pressure probe at ammonia to air mixer.


Not applicable. Used to determine when plant is operating outside of permitted range during baseline campaign or if the plant is out of operation.


Measurements from pressure probe at ammonia to air mixer.


Part of internal procedures.

Any comment: None.

Data / Parameter: B.41 GSn



Data unit: Name of Supplier

Description: Gauze supplier for the project campaign for the plantSource of data used: Documents from suppliersValue applied: Not available Justification of the choice of data or de-scription of measure-ment methods and pro-cedures actually ap-plied :

AM0034 requires the monitoring of the supplier of the ammonia oxidation cata-lyst gauze.

Any comment: None

Data / Parameter: B.42 GCn

Data unit: %Description: Gauze composition during the project campaigns expressed as percentage by

weight of the precious metals Platinum, Rhodium and, if applicable, Palladium Source of data used: Documents from supplierValue applied: Not available yet.Justification of the choice of data or de-scription of measure-ment methods and pro-cedures actually ap-plied :

In accordance with AM0034, if the composition of the ammonia oxidation cata-lyst used for the baseline campaign and after the implementation of the project is identical to that used in the campaign for setting the operating conditions, then there shall be no limitations on N2O baseline emissions.

Any comment: None

Data / Parameter: B.43 EFreg


Description: Emissions cap for N2O from nitric acid production set by government regula-tion

Source of data used: Bosnian LegislationValue applied: NoneJustification of the choice of data or de-scription of measure-ment methods and pro-cedures actually ap-plied :

Future Bosnian environmental legislation

Any comment: None.



B.7.2 Description of the monitoring plan:

The emission reductions achieved by the project activity will be monitored using the approved monitoring methodology AM0034 as prepared by N.serve Environmental Services GmbH, Ger-many. It is the appropriate monitoring methodology to be used in conjunction with the baseline methodology AM0034. Its applicability depends on the same prerequisites as the mentioned baseline methodology.AM0034 requires the use of the European Norm EN14181 (2004) “Stationary source emissions - Quality assurance of automated measuring systems”26 as a guidance for installing and operating the Automated Monitoring System (AMS) in the nitric acid plants for the monitoring of N2O emis-sions.The plant has been equipped with complete Automated Monitoring Systems (AMS) to monitor the mass emissions of N2O at the stack. The AMS has been installed in June 2008. As an operator of nitric acid plants since many decades, Gikil’s staff in general and its instrument department in particular is accustomed to operating technical equipment adhering to high quality standards. An adequate staff training plan is in place that ensures that the operational standards required for the appropriate handling of the AMS will be maintained throughout the crediting period. The AMS consists of:

N2O concentration analyzerThe N2O concentration analyzer is capable of analysing N2O concentration in gas mixtures.

Flow MeterThe flow meter measuring system allows continuous determination of the flow rate of stack gas.

The data acquisition systemThe Gikil nitric acid plant is equipped with a data communication unit that collects and stores all the raw values for NCSG, VSG, Ts, Ps, OTh, OPh, AFR, AIFR and NAP, as well as different status signals from the AMS.

Gikil’s process engineer will be responsible for the ongoing operation and maintenance of the N2O monitoring system installed at the plant. Operation, maintenance, calibration and service intervals are being carried out by staff from the instrument department according to the vendor’s specifica-tions and under the guidance of internationally relevant environmental standards, in particular EN 14181. In the following, it is described how the procedures given in EN14181 for QAL3 have been adap-ted and are practically applied at Gikil’s plant.

QAL 1In accordance with EN14181, the monitoring system shall have been proven suitable for its meas-uring task (parameter and composition of the flue gas) by use of the QAL1 procedure as specified by EN ISO 15267. This standard’s objective is to prove that the total uncertainty of the results ob-tained from the AMS meets the specification for uncertainty stated in the applicable regulations. Such suitability testing has to be carried out under specific conditions by an independent third party on a specific testing site.

26 This standard describes the quality assurance procedures needed to assure that an Automated Measuring System (AMS) installed to measure emissions to air are capable of meeting the uncertainty requirements on measured values given by legislation, e.g. EU Directives, or national legislation, and more generally by competent authorities.



A test institute shall perform all relevant tests on the monitoring system. The AMS has to be tested in the laboratory and field.The gas analyser has fulfilled the requirements of the QAL1 and was successfully tested by TÜV SÜD Industry Service, Germany27. The stack gas flow meter has fulfilled the requirements of the QAL1 and was successfully tested by TÜV Rheinland Sicherheit und Umweltschutz GmbH, Köln, Germany28

QAL2QAL2 is a procedure for the determination of the calibration function and its variability. According to EN14181, the QAL2 test including the SRM need to be conducted by an independent “testing house” or laboratory which has to be accredited to EN ISO/IEC 17025. The QAL2 tests are per-formed on suitable AMS that have been correctly installed and commissioned on-site (as opposed to QAL 1 which is conducted off-site). A calibration function is established from the results of a number of parallel measurements per-formed with a Standard Reference Method (SRM). The variability of the measured values obtained with the AMS is then evaluated by the independent qualified “testing house”.QAL2 tests are to be performed at least every 5 years, according to EN 14181.

ASTIn addition, Annual Surveillance Tests (AST) should be conducted in accordance with EN 14181; these are a series of measurements with independent measurement equipment in parallel to the ex-isting AMS. The AST tests are performed annually. If a full QAL 2 test is performed (at least every 5 years), an additional AST test is not necessary in that same year.

QAL 3 QAL3 describes the ongoing quality assurance and maintenance procedures and documentation for the AMS conducted by the plant operator. With this documentation it can be demonstrated that the AMS is in control during its operation so that it continues to function within the required specifica-tions.

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)

Please note that the baseline campaign had not been completed at the time this PDD version was written. The baseline will be verified during the first verification. Completion of analysis whether or not the AM0034 methodology is applicable to the project activity: 01/08/2011

Responsible persons:Gikil d.o.o. (project participant)N.serve Environmental Services GmbH (project participant)

27 TÜV Süd Industrie Service GmbH, München (Report number 821029), June 200628 TÜV Rheinland Sicherheit und Umweltschutz GmbH, Köln (report number 936/808 005/C vom 18. Februar 2000) and TÜV Immissionsschutz und Energiesysteme GmbH, Köln (report number 936/rö vom 15. Oktober 2003)



SECTION C. Duration of the project activity / crediting period

C.1 Duration of the project activity:10 years

C.1.1. Starting date of the project activity: 22/02/2008 (signing CDM project agreement between project participants)

C.1.2. Expected operational lifetime of the project activity:Gikil’s nitric acid plant has a remaining operational lifetime of at least 15 years and is not expected to be decommissioned before that time.

C.2 Choice of the crediting period and related information: 10 years (fixed)

C.2.1. Renewable crediting periodNot applicable.

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.

C.2.2. Fixed crediting period:

C.2.2.1. Starting date:01/05/2012 (or on the day following the registration with the CDM EB if it occurs later than origin-ally planned by the project participants).

C.2.2.2. Length: 10 years



SECTION D. Environmental impacts

D.1. Documentation on the analysis of the environmental impacts, including transbound-ary impacts: The project will reduce gaseous emissions of nitrous oxide (N2O) from the plant tail gas and will therefore contribute to international efforts to reduce greenhouse gas emissions. The project will have no effects on local air quality.The project will have no impact on water pollution. No additional water is required for the project activity’s implementation or operation. Therefore, there is no impact on the sustainable use of wa-ter.Also, the project does not impact on the community’s access to other natural resources as it will not require any additional resources. Also, there is no impact on the efficiency of resource utilization.The N2O abatement catalyst will be leased from an overseas supplier. The catalyst will be replaced from time to time and the spent catalyst returned to the supplier for recycling, if possible.There are no other positive or negative impacts on the environment.

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 en-vironmental impact assessment undertaken in accordance with the procedures as required by the host Party:An Environmental Impact Assessment (EIA) is not required for implementing the planned CDM project activity.

SECTION E. Stakeholders’ comments

E.1. Brief description how comments by local stakeholders have been invited and com-piled:

Gikil has published several press releases in the local and regional public media. A list of the local media is provided in Annex 5. In the press release, the public was informed about the project. Mail fax services were also used. Several posters were posted in publically accessible places at the plant. Stakeholders were encouraged to contact the plant and to participate in a stakeholder meeting.

Information was sent to the Designated National Authorities, at State level, Federal authorities and authorities of Republic of Srpska. Furthermore, Environmental authorities in all larger cities, certi-fied companies for pollution control, and other enterprise were contacted.Information shown on television was provided by Project realization team member. Gikil’s Executive Director Mr Ahmed Zonić held a presentation about the CDM-project to Tuzla University.The NGOs active in the region were also contacted.Please see further documentation of the local stakeholder process in Annex 5.



E.2. Summary of the comments received:

Report on meeting with Local Communities of Municipality of Lukavac Agenda of the meeting was: Information of the new project was given by GIKIL (Fertilizer Plant)

Totally 33 Local Communities were called for a meeting.Response gave 11 Local Communities with totally 14 representatives. After the introduction of the CDM project by Mr. Zuhdija Aganovic, Mrs. Hana Bilbija informed the assembly about the topic global warming, Kyoto protocol, CDM and what the project means for GIKIL and environment. The representative of Local Community Sikulje-Prline Mr. Fahrudin Turkic announced thanking words for the start up of the project. It was clear to him that this project has positive effects for the local region. He was interested in knowing what will happen with other emissions that are polluting the environment. Mr. Aganovic replied that due to the new environmental permit, all emissions will be covered by suitable activities which will be part of the revenues that are achieved by the sale of CERs from the CDM project. Other questions were raised:

How long will the project last? Does the Fertilizer Plant have a valid permit for operation? Will the yellow smoke (NOx emissions) despair after the implementation of this project? Is the N2O gas harmful in greater concentration? Will Gikil conduct further meetings to inform the public how much is being done in realiz-

ation? It had been expressed desire to have a next information meeting in Dom kulture Lukavac.

E.3. Report on how due account was taken of any comments received:

The comments received did not require any detailed reaction and could be easily answered by Gikil’s representatives during the meeting. No stakeholder or stakeholder group expressed opposi-tion to the project or voiced concerns. The following replies were given:

How long will the project last?Answer: 10 Years

Does the Fertilizer Plant have a valid permit for operation?Answer: Yes

Will the yellow smoke (NOx emissions) despair after the implementation of this project?Answer: NOx emissions are not covered by the CDM project. However, actions are planned in order to reduce NOx emissions

Is the N2O gas harmful in greater concentration? Answer: No



Will Gikil conduct further meetings to inform the public how much is being done in realiz-ation? Answer: It is planned to organize a future such meeting, so that public will stay informed about the status of this and other ecological projects at Gikil’s fertilizer plant.

Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY

Organization: GIKIL d.o.o.Street/P.O.Box: Zeljeznicka 1Building:City: LukavacState/Region: Tuzlanski ProvincePostfix/ZIP: 75300Country: Bosnia & HerzegovinaTelephone: +387 (35) 553-602FAX: +387 (35) 550-620E-Mail: [email protected]: http://www.gikil.ba/Represented by 1: Anisa AvdićTitle: SCM Department Director for chemical productsSalutation: MsLast Name: AvdicMiddle Name:First Name: AnisaDepartment: SCMMobile: + 387 61 179 998Direct FAX: +387 35 553 602Direct tel: + 387 35 553 602Personal E-Mail: [email protected] by 2: Ahmed ZonićTitle: ED for investment and developmentSalutation: Mr.Last Name: ZonićMiddle Name:First Name: AhmedDepartment: GIKIL ManagementMobile: + 387 61 896 547Direct FAX: + 387 35 553 583Direct tel: + 387 35 553 583Personal E-Mail: [email protected]

http://www.gikil.ba/

mailto:[email protected]



Organization: N.serve Environmental Services GmbHStreet/P.O.Box: Große Theaterstr. 14Building:City: HamburgState/Region: HamburgPostfix/ZIP: 20354Country: GermanyTelephone: +49 40 3099786-0 FAX: +49 40 3099786-10E-Mail:URL: www.nserve.netRepresented by: 1 Albrecht von Ruffer Title: Managing DirectorsSalutation: Mr.Last Name: Von Ruffer Middle Name:First Name: AlbrechtDepartment:Mobile: +49 177 65 15 964 Direct FAX: +49 40 3099786-10 Direct tel: +49 40 3099786-0Personal E-Mail: [email protected] Represented by: 2 Dr. Marten von Velsen-Zerweck Title: Managing DirectorSalutation: Mr.Last Name: von Velsen-ZerweckMiddle Name:First Name: MartenDepartment:Mobile: +49 163 613 4303Direct FAX: +49 40 3099786-10 Direct tel: +49 40 3099786-0Personal E-Mail: [email protected]

Organization: Johnson Matthey PlcStreet/P.O.Box: Orchard RoadBuilding:City: RoystonState/Region: HertfordshirePostfix/ZIP: SG8 5HECountry: United KingdomTelephone: + 44 (0) 1763 253000FAX: + 44 (0) 1763 253313E-Mail:URL: http://www.matthey.comRepresented by1 : Garry Crooks

http://www.matthey.com/



http://www.nserve.net/



Title: Sales & Marketing ManagerSalutation: Mr.Last Name: CrooksMiddle Name:First Name: GarryDepartment: Chemical ProductsMobile: +44 (7967) 278235Direct FAX: +44 (1763) 253313Direct tel: +44 (1763) 253656Personal E-Mail: [email protected] Represented by2 : Trevor GillinderTitle: Sales & Marketing DirectorSalutation: Mr.Last Name: GillinderMiddle Name:First Name: TrevorDepartment: Chemical ProductsMobile: +44 (0) 7967 278237Direct FAX: +44 (1763) 253313Direct tel: +44 (0) 1763 253856Personal E-Mail: [email protected]

Annex 2

INFORMATION REGARDING PUBLIC FUNDING

No public funding was received by the project participants for the development, implementation and operation of the project.

Annex 3

BASELINE INFORMATIONSo far, no baseline campaign has been conducted. For calculating the PDD emission reductions a factor of 7.00 kgN2O/tHNO3 is used. In the following it is explained why this factor is assumed to be realistic.





Measurements of one day are used for estimating the baseline emissions for calculating the emis-sion reductions in the PDD. On the 3rd of October 2011, a new campaign was started with a new batch of gauzes. The table be-low provides hourly monitoring of NCSG, VSG, TSG, PSG, OH and NAP values for 24 hours of the 5th of October (two days after start up).

Parameter NCSG VSG TSG PSG VSG OH NAP Unit mg/m3 m3/h deg C mbar Nm3/h h t/h05.10.2011 01:00 1,715.87 32,800.23 46.08 1,010.35 27,985.28 1.00 7.09 05.10.2011 02:00 1,725.22 32,810.88 45.88 1,010.33 28,011.36 1.00 6.95 05.10.2011 03:00 1,704.50 32,841.93 45.67 1,010.27 28,054.67 1.00 7.13 05.10.2011 04:00 1,722.60 32,811.13 45.71 1,010.12 28,020.68 1.00 7.01 05.10.2011 05:00 1,720.87 32,855.02 45.37 1,010.26 28,092.01 1.00 7.03 05.10.2011 06:00 1,708.02 32,828.10 45.47 1,010.36 28,062.96 1.00 7.14 05.10.2011 07:00 1,727.39 32,855.08 45.41 1,010.73 28,101.60 1.00 7.54 05.10.2011 08:00 1,731.74 32,862.54 45.51 1,011.16 28,111.11 1.00 7.23 05.10.2011 09:00 1,714.67 32,685.05 45.92 1,011.02 27,919.49 1.00 7.70 05.10.2011 10:00 1,712.60 32,744.07 46.31 1,011.19 27,940.46 1.00 7.43 05.10.2011 11:00 1,672.66 32,599.96 47.29 1,010.90 27,724.46 1.00 7.21 05.10.2011 12:00 1,631.15 32,521.24 48.00 1,010.55 27,586.82 1.00 7.39 05.10.2011 13:00 1,614.28 32,504.92 48.42 1,010.03 27,522.79 1.00 7.53 05.10.2011 14:00 1,601.17 32,502.31 48.42 1,009.47 27,505.32 1.00 7.87 05.10.2011 15:00 1,590.70 32,510.85 48.18 1,008.90 27,517.55 1.00 7.42 05.10.2011 16:00 1,582.56 32,509.13 48.06 1,008.43 27,513.55 1.00 7.21 05.10.2011 17:00 1,592.43 32,531.81 47.93 1,008.32 27,540.89 1.00 7.67 05.10.2011 18:00 1,589.23 32,505.01 47.90 1,008.23 27,518.32 1.00 6.99 05.10.2011 19:00 1,489.95 32,631.69 53.28 1,008.26 27,171.06 1.00 7.57 05.10.2011 20:00 1,422.87 32,788.03 58.83 1,008.88 26,861.33 1.00 6.96 05.10.2011 21:00 1,441.21 32,766.05 58.11 1,009.13 26,908.33 1.00 6.53 05.10.2011 22:00 1,450.41 32,875.20 57.32 1,009.34 27,068.14 1.00 6.47 05.10.2011 23:00 1,465.63 33,050.54 56.46 1,009.68 27,292.70 1.00 6.39 06.10.2011 00:00 1,475.17 32,707.05 56.34 1,009.50 27,014.07 1.00 6.27 Total/average 1,616.79 32,712.41 49.24 1,009.81 27,626.87 24.00 171.73

Table: hourly average values of the 5th of October 2011

For the 5th of October, taking into account the measurements of 24 hours, a baseline factor of 6.24 kgN2O/tHNO3 is assessed by applying the formulas introduced in chapter B.6.3:

Emissions of the 5th of October = VSG * NCSG * 10-6 * OH =1,072 kgN2OEmissions factor of the 5th of October = PE / NAP =6.24 kgN2O/tHNO3

Please note that this is a simple calculation which does not follow the full quality standard as re-quired in chapter B.6.3. E.g., no QAL2 factor and no statistical analysis are applied. The sole pur-pose of this simple calculation is the estimation (and not the measurement) of a baseline emissions factor. The measurements shown in the table above are conducted at the very beginning of a new cam-paign. At the beginning of campaign, N2O emissions are usually the lowest due to the good effi-ciency of fresh gauzes. In order to display an estimation of the baseline factor of one complete cam-



paign, a more conservative factor of 7.00 kgN2O/tHNO3 is used for calculating the emission reduc-tions in the PDD. The full baseline campaign and the correct calculation of the baseline factor will be verified during the first verification.

Annex 4

MONITORING INFORMATION

Background on EN14181The objective is to achieve the highest practically possible level of accuracy in conducting those measurements and transparency in the evaluation process.While EN14181 provides the most advanced procedures, its practical application is currently lim-ited for the following reasons:- Specific procedures for N2O are not yet defined in EN14181; - Only very limited experience exists with monitoring systems for N2O emissions;- No applicable regulatory N2O levels exist in the EU (or elsewhere) that are required to conduct

some of the calculations and tests of EN14181; andTherefore, it is currently not possible to fully comply with the letter of EN14181, neither in the EU, nor in a non-Annex 1 country to the Kyoto Protocol.Despite all this, EN14181 provides a very useful guidance in conducting a logical, step-by-step ap-proach to selecting, installing, adjusting and operating the N2O AMS for CDM projects.The monitoring procedures developed for this project under AM0034 aim at providing workable and practice orientated solutions that take into account national environmental standards and regu-lations, available monitoring and testing expertise in the country as well as the specific situation at each nitric acid plant. Wherever possible, EN14181 is applied as guidance for the development and implementation of the monitoring procedures for this CDM project in order to achieve highest pos -sible measuring accuracy and to implement a quality control system that assures transparency and credibility.Scope of EN 14181This European Standard specifies procedures for establishing quality assurance levels (QAL) for automated measuring systems (AMS) installed on industrial plants for the determination of the flue gas components and other flue gas parameters.This standard is designed to be used after the AMS has been accepted according to the procedures specified in EN ISO 14956 (QAL1).EN14181 specifies:- a procedure (QAL2) to calibrate the AMS and determine the variability of the measured values

obtained by it, so as to demonstrate the suitability of the AMS for its application, following its installation;

- a procedure (QAL3) to maintain and demonstrate the required quality of the measurement res-ults during the normal operation of an AMS, by checking that the zero and span characteristics are consistent with those determined during QAL1;



- a procedure for the annual surveillance tests (AST) of the AMS in order to evaluate (i) that it functions correctly and its performance remains valid and (ii) that its calibration function and variability remain as previously determined.

This standard is restricted to quality assurance (QA) of the AMS, and does not include the QA of the data collection and recording system of the plant.

Annex 5

DOCUMENTATION OF LOCAL STAKEHOLDER PROCESS

Publication of press release in the following local media29:

Medias Text Photo Date

Tuzlanski info portal – tip.baCDM Project on Certified Emission Reduction of green-house gasses in GIKIL

1 26.9.2011.

Tuzlarije – tuzlarije.net

Continuation of project Global Ispat Koksne Industrije Luka-vac - CDM project on Certi-fied Emission Reduction of greenhouse gasses in GIKIL

1 26.9.2011.

Lukavački info portal – so-dalive.ba

CDM Project on Certified Emission Reduction of green-house gasses in GIKIL

1 26.9.2011.

Moja Tuzla – mojatuzla.baCDM Project on Certified Emission Reduction of green-house gasses in GIKIL

1 26.9.2011.

Poster in order to inform the workers about the project and about the stakeholder meeting at Gikil’s plant

29 The press releases will be made available to the auditor during the onsite visit.







Translation of poster:

CDM-PROJECT IN GIKIL FERTILIZER PLANT(Certified reduction of „greenhouse“ gasses project)

Global Warming

The world appers to be getting warmer because of Greenhouse gas (GHG) emissions. These include carbon dioxide, methane, nitrous oxide and others.

Kyoto Agreement

The Kyoto Agreement is an importan international environmental agreement between most of industrial countries as well as Bosnia and Herzegovina.

Signatories to the agreement have undertaken to reduce GHG emissions before 2012, and at the same time it will assist economic growth in developing countries.

This is known as the Clean Development Mechanism, and carbon credits are known as „ Carbon Emission Reductions“ (CERs).

Nitrous Oxide (N2O) abatement project in Fertilizer Plant



Fertilizer Plant at facility for nitric acid production emit small amounts of nitrous oxide, which is a potent GHG.

Nitrous oxide is also used as an anaesthetic and in food packaging. Intent is to install secondary catalyst at GIKIL Fertilizer Plant in Lukavac, which will

reduce nitrous oxide emissions. Project will generate CERs to be traded on world carbon market. Installation of this catalyst will not require significant changes to the exisiting plant.

What it meand to GIKIL and you

The project will not introduce any new environmental contaminant. The project will not materially improve local atmosphere. But it will play a part in reducing Global warming.

If you would like to know more or want to become a registered Interested Party, please contact Team for project realization:

e-mail: [email protected] phone/fax: 035 553 583 [email protected] phone/fax: 035 553 583

Fotos of the local stakeholder meeting:



