Sterlite LPG Reduction Project

PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03
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CLEAN DEVELOPMENT MECHANISM
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD)
Version 03 - in effect as of: 22 December 2006

CONTENTS

A. General description of the small scale 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 proposed small scale project activity

Annex 2: Information regarding public funding

Annex 3: Baseline information

Annex 4: Monitoring Information

Attachments

Attachment1. Baseline Calculations.
Attachment2. References
Attachment3. Abbreviations


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Revision history of this document

Version
Number
Date Description and reason of revision
01 21 January
2003
Initial adoption
02 8 July 2005 The Board agreed to revise the CDM SSC PDD to reflect
guidance and clarifications provided by the Board since
version 01 of this document.
As a consequence, the guidelines for completing CDM SSC
PDD have been revised accordingly to version 2. The latest
version can be found at
<http://cdm.unfccc.int/Reference/Documents>.
03 22 December
2006
The Board agreed to revise the CDM project design
document for small-scale activities (CDM-SSC-PDD), taking
into account CDM-PDD and CDM-NM.

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SECTION A. General description of small-scale project activity

A.1 Title of the small-scale project activity:
>>
Title : LPG Reduction in Anode Refining and Casting Plant at Sterlite Industries India Limited,
Tuticorin, Tamilnadu, India
Version: 01
Date of Document: 25/03/08.

A.2. Description of the small-scale project activity:
>>
Background
Sterlite Industries (India) Ltd. (SIIL) is the principal subsidiary of the Vedanta Resources Group. It was
the first company in India to set up a Copper Smelter and Refinery in the Private Sector and operate the
largest capacity Continuous Cast Copper Wire and Rod Plant. SIILs main products are Copper Cathodes
and Copper Rods of global quality standards. SIIL have manufacturing facilities all over India and copper
mines in Australia.
Purpose of the project activity
LPG is used in copper smelter Anode Casting Plants to supplement heat for maintaining the temperature
of molten metal, in order to produce quality castings. The project activity aims to reduce LPG
consumption in the Casting process. This is an energy efficiency program, which involves the application
of Twin Caster Wheels in an Anode Furnace to achieve higher thermal efficiency and, thereby, reduce
LPG consumption. The technology, supplied by SMS DEMAG Hamburg, Germany, was installed in
December 2004. Earlier, the Copper Anode Casting was carried out in a Single Caster Wheel, which
consumed more heat and, hence, more LPG consumption per unit of production in the copper anode
casting plant.

The main purposes of the project activity are to reduce LPG consumption, which conserves a fossil fuel that is
rapidly being depleted in India, and to reduce greenhouse-gas emissions into the atmosphere. The decision to
undertake the high-cost investment in twin-caster technology was made with the dual objectives of
reducing fossil fuel consumption and acting in accordance with the companys commitment to
contributing to sustainable development in the country and GHG mitigation.

At its maximum capacity the project will result in 3.84 kt of LPG savings and an energy equivalent of 48.40
GWh / year. The LPG savings in the anode casting and refining process will result in total emission reductions
of about 113,650 tonnes of CO2 during crediting period.

View of project participant about the project activitys contribution to sustainable development

The Ministry of Environment and Forests, Govt. of India has stipulated the following sustainable
development indicators in the interim approval guidelines for CDM projects:


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Social well-being. The CDM project activity should lead to alleviate poverty by generating
additional employment, removing social disparities and contributing to the provision of basic
amenities and leading to improvements in the quality of life of the people.

Economic well-being. The CDM project activity should attract additional investment consistent
with the needs of the people.

Environmental well-being. This should include a discussion of impact of the project activity on
resource sustainability and resource degradation, if any, due to proposed activity; bio-diversity
friendliness; and reduction of levels of pollution in general.

Technological well-being. The CDM project activity should lead to transfer of
environmentally safe and sound technologies, prioritizing the renewable sector or energy
efficiency projects that are comparable to best practices, in order to assist in upgrading the
technological base.

The project activity contributes to the above indicators in the following manner.

Social well-being
The project activity generated employment in the area during installation and commissioning. Training was
imparted by equipment suppliers, which improved the technical skills of manpower required for operating the
twin caster.

Economic well-being
LPG is a valuable fossil fuel for which domestic sources are being rapidly depleted in India. By avoiding
wasteful LPG consumption, the project frees up this resource to be used for other productive purposes in the
host country. The project also reduces the variable cost of production. In addition, the project has attracted an
investment of Rs.101 Million, thereby contributing to economic well being.

Technological well-being
The Project activity involves transferring state-of-the art Twin Caster technology to the host country, supplied
by world renowned SMS DEMAG of Germany. The technology is energy efficient and environmentally
friendly. At the time of decision making for installing Twin Caster technology at SIIL, no company in the
world had installed a Twin Caster of the production capacity being used in this project (100 TPH). The
maximum-capacity twin caster commissioned was 85 TPH (at Norddeutsche Affinerie, Hamburg
Germany). Furthermore, no company in India had applied Twin Caster technology. Since then, only one
other company in India has applied twin caster technology (Birla Copper, with a rated production
capacity of 65 TPH). The project activity will further contribute to technological well being by
promoting the use of state-of-the-art energy-efficient technology in other metallurgical industries across
the country.

Environmental well-being
The project activity reduces GHG emissions by reducing LPG consumption in an anode casting plant. The
project activity provides energy security and environmental well being by reducing the use of fossil fuels.


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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)
India (Host)

Sterlite Industries (India)
Limited
No

A.4. Technical description of the small-scale project activity:

A.4.1. Location of the small-scale project activity:
>>

A.4.1.1. Host Party(ies):
>>
India

A.4.1.2. Region/State/Province etc.:
>>
Tamil Nadu State

A.4.1.3. City/Town/Community etc:
>>
SIPCOT Industrial complex, Tuticorin

A.4.1.4. Details of physical location, including information allowing the
unique identification of this small-scale project activity :
>>
The project activity is being implemented at Sterlite Industries (India) Limited (Copper Smelter), and is
located in State Industries Promotion Corporation of Tamil Nadu (SIPCOT) industrial complex of
Tuticorin, on the National High way (N .H.) 45 B, about 10 kilometers from Tuticorin.

The geographical location of the project is furnished below.


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Map 1 Location of Tamil Nadu State in India
Map 2 Location of Tuticorin District in Tamil Nadu
Map 3 Location of project site in Tuticorin district

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A.4.2. Type and category (ies) and technology/measure of the small-scale project activity:
>>
The project meets the applicability criteria of the small scale CDM project activity category, Type II:
Energy Efficiency Improvement Projects (D: Energy efficiency and fuel switching measures for
industrial facilities) of the Indicative baseline and monitoring methodologies for selected CDM small
scale project activities.

Project Type: Type II Energy Efficiency Improvement Projects
Category II D. Energy efficiency and fuel switching measures for industrial
facilities

Technology
The project activity involves replacement of a single caster wheel with twin caster wheels in an anode
furnace, to achieve higher thermal efficiency and, thereby, reduce LPG consumption. Twin-caster
technology and equipment has been supplied by SMS DEMAG. The technology is energy efficient and
environmentally friendly.

The main features of the twin caster are as follows:

The twin wheel of an anode casting plant makes use of two casting wheels. Each of the casting wheels
has been designed to be suitable for 16 casting moulds, enabling more convenient operation, minimum
fuel consumption, better performance and better utilization of the following assemblies:

Common dual pouring-in and dosing stations.
Casting wheel VVVF drive system.
Mould and anode spray cooling system.
Anode take-off systems from moulds to bosh tanks.
Bosh tanks with transport chain conveyor on rails.
Anode take-out system bosh tanks onto staking.
Anode staking facilities with individual anode weighing.
Barite preparation / spray coating system.

The other peripheral plant components.

Water-cooling system.
Fume-exhaust system.
Hydraulic power pack unit.

For each cast wheel, a ball bearing slewing ring (B.B.S.R) is provided. The B.B.S.R ensures perfect
frictionless rotational behaviour owing to its integrated internal toothing, to the stable wheel dimensions
and to the precise starting characteristics of both rotational drives for uniform surfaces of anode.

The ball bearing slewing ring, with its integrated toothing and re-greasing feature, constitutes a compact
type of construction and provides a technical solution that also meets stringent servicing and maintenance
requirements. Furthermore, reliability is enhanced by placing the protected arrangement outside the melt
pouring range.

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The moulds are aligned on the casting wheels in such a way that equal distances between the ejector
(pusher) and the take-out facility and a constantly exact angular pitch are ensured. The anodes in all
systems are stacked in a special unit arranged in line with the cooling basin. The anodes are lifted out of
the cooling basins (bosh tanks). Then each anode is weighed and then placed in stacks of maximum 15
units.

Technical data for anode casting wheel
Casting capacity of casting wheel : 100 TPH (Rated), normal-90 TPH
Anode weight : 346 kg
Cycle time maximum : 25 seconds
Wheel diameter : 8.5 M
Capacity of intermediate ladle : 3000 kg
Moulds / casting wheel : 16 Nos.
Mould weight : 3600 kg (each)
Bosh tanks : 2 Nos.
Distance between axes : 3.4 m
Tank dimensions (L x W x H) : 4.3 x 2.0 x 1.75 m
Ball bearing slewing rings outer diameter : 3200 mm
Power Consumption : 3.299 GWh/yr
Functional description of the plant
The main control desk has been divided into the following three main groups, for the purpose of allowing
easy identification of operating devices and convenient operation of the twin wheel anode casting plant.

Control for plant peripheral equipment and common pouring station
Control for casting wheel-1
Control for casting wheel-2

In the main control desk, each section has been provided with required components to control the various
functions of the anode caster to meet the process requirements. Two sets of Rockwell Automation
RSView32 PC-based operator stations are provided for controlling and monitoring various plant
parameters.

A special feature of the twin caster is that its weight accuracy is 96.3%, compared to the old wheel
weight accuracy of only 80%.

The block diagram for the twin caster wheel is furnished in Figure-1


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Launder
LPG burners
Old caster Twin caster
Anode take off machine
Anode plates
Fig 1: Anode furnace Casting operation - Block diagram
A/F-3
AF-1
AF-2

AF1 Anode Furnace 1
AF2 Anode Furnace 2
AF3 Anode Furnace 3

A.4.3 Estimated amount of emission reductions over the chosen crediting period:
>>
The project activity will generate about 113,650 CERs during the entire crediting period, starting from
the date of registration of the project as a CDM project activity with UNFCCC, which is expected to be
from August 2008.


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Annual estimated anticipated emission reductions from the project activity are furnished below.

Years Annual estimation of
emission reductions in
tCO
2
e
2008 11365
2009 11365
2010 11365
2011 11365
2012 11365
2013 11365
2014 11365
2015 11365
2016 11365
2017
11365
Total Emission reductions (tCO
2
e) 113650
Total number of crediting years 10
Annual average over the crediting
period of estimated reductions
(tCO
2
e) 11365

In the above table the year 2008 corresponds to the period starting from 01.08.2008 to 31.07.2009.
Similar interpretation shall apply for the remaining years.

A.4.4. Public funding of the small-scale project activity:
>>
The project activity does not involve any public funding from Annex 1 countries. See also statement in
Annex 2.

A.4.5. Confirmation that the small-scale project activity is not a debundled component of a
large scale project activity:

The project proponent hereby confirms that the project activity is neither a debundled component of a
larger project activity nor bundled to form a large scale project activity (>180 GWh
th
). The annual LPG
savings by the project activity are 3.840 kt, with an energy equivalent of 48.40 GWh
th
/ year, which is well
below 180 GWh
th
thermal savings. Hence, UNFCCC indicative simplified modalities and procedures can
be applied

The project proponent further confirms that they have not registered any small scale CDM activity or
applied to register another small scale CDM project activity within 1 km of the project boundary, in the
same project category and technology/measure in the previous 2 years.


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SECTION B. Application of a baseline and monitoring methodology

B.1. Title and reference of the approved baseline and monitoring methodology applied to the
small-scale project activity:
>>
Project type : Type II Energy Efficiency Improvement Projects
Category : II D Energy Efficiency and Fuel Switching Measures for Industrial Facilities
Reference
1
: AMS II D., Version: 11, Scope: 4, EB 35

B.2 Justification of the choice of the project category:
>>
The project activity is an energy efficiency improvement project which reduces LPG consumption in a
single industrial facility i.e., at Sterlite Industries (India) Limited. The efficiency improvement is
achieved by replacing an old single caster with new twin caster. The project activity falls under Type-
AMS II D Energy Efficiency and Fuel switching measures in Industrial Facilities.

Demonstration for being with in the limits of SSC throughout the crediting period
The estimated LPG savings from replacing a single caster with twin caster, at 100% production capacity,
is 3.840 kt which is equivalent to 48.40 GWh
th
per year.

This is well below the SSC limit of 180 GWh
th

per year.

Hence, UNFCCC indicative simplified modalities and procedures can be applied. The LPG
savings are estimated for 100% production capacity and cannot be enhanced due to limitations in design.
Hence, the project promoters hereby confirm that the project activity will not exceed the small scale limit
of 180 GWh
th
of thermal energy saving during the crediting period.

The average lifetime of single casters is 30 years. Given this equipment lifetime, the existing single
caster would be expected to require replacement during the year 2022 in the absence of the project
activity. Hence, the project does not claim carbon credits beyond the year 2022.

B.3. Description of the project boundary:
>>
As per the guidelines mentioned in Type II D of the simplified modalities and procedures for small-scale
CDM project activities, the project boundary is the physical, geographical site of the industrial facility
and processes and equipments that are affected by the project activity.

The project boundary encompasses the Twin Caster wheel in the anode casting plant and the associated
equipment, including common dual pouring-in and dosing stations, casting wheel VVVF drive system,
anode take off systems from moulds to bosh tanks, bosh tanks with transport chain conveyor on rails,
anode take out system, anode staking facilities with individual anode weighing, barite preparation,
cooling water system, fume exhaust system and hydraulic power pack unit.

1
http://cdm.unfccc.int/methodologies/SSCmethodologies/approved.html

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Anode Furnace-1 Anode Furnace-2
Dual poring
Anode take off
machine
Cooling Tower
LPG Storage
Molten Copper Molten Copper
LPG Flowmeter
Molten Copper
Twin Caster
Cooling water
Copper Plates
LPG by physical level
measurement (Roto Dial Guage)
Anode Copper Measurement by
Weighment (Weigh Scale)
Anode Furnace-1 Anode Furnace-2
Dual poring
Anode take off
machine
Cooling Tower
LPG Storage
Molten Copper Molten Copper
LPG Flowmeter
Molten Copper
Twin Caster
Cooling water
Copper Plates
LPG by physical level
measurement (Roto Dial Guage)
Anode Copper Measurement by
Weighment (Weigh Scale)

Project Boundary

B.4. Description of baseline and its development:

>>

The baseline methodology for projects under para 5 of AMS II.D states that:

In the case of replacement, modification or retrofit measures, the baseline consists of the energy
baseline of the existing facility or sub-system that is replaced, modified or retrofitted. In the case
of a new facility the energy baseline consists of the facility that would otherwise be built.

The project activity involves replacement of existing equipment with a new efficient system. Hence, the
baseline consists of the LPG consumption of the existing equipment being replaced.


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In the absence of the project activity, the existing facilities would continue to consume energy at
a historical average level, until the facility would likely to be replaced, modified or retrofitted in
the absence of the of the CDM project activity. From that point in time on, the baseline is
assumed to correspond to the project activity, and no emission reductions are assumed to occur.

Each energy form in the emission baseline is multiplied by an emission coefficient (in kg
CO2e/kWh). For the electricity displaced, the emission coefficient is calculated in accordance
with provisions under category I.D. For fossil fuels, the IPCC default values for emission
coefficients may be used.

The project activity is reducing LPG consumption. The IPCC default value for the emission coefficient
for LPG has been used.

S.No Parameter Value Notation Source
1 Net Calorific
value of LPG
47.3 TJ/kt NCVL Revised 2006 IPCC Guidelines for
National Greenhouse Gas
Inventories)

2 Emission Factor
of LPG
63.100 tCO
2
/TJ EF Revised 2006 IPCC Guidelines for
National Greenhouse Gas
Inventories

3. Quantity of LPG
consumed
Monitored value FCi,j,y From plant log books, records and
purchase receipts
4 Carbon to
Carbon-dioxide
conversion factor
44/12 Stiochiometry.

B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below
those that would have occurred in the absence of the registered small-scale CDM project activity:

According to Attachment A to Appendix B, small-scale modalities and procedures of CDM, project
participants shall demonstrate that the project activity would not have occurred anyway due to at least
one of the barriers mentioned in Attachment C which are as follows:

Investment barrier
Technological barrier
Barrier due to prevailing practice
Other barriers

The project activity is subject to both prevailing practice and technological barriers.

Central State and Government Policy
The Bureau of Energy Efficiency (BEE) is a statutory body working under the Ministry of Power,
Government of India. It was established to promote energy efficiency and its conservation, and was primarily
aimed to encourage (rather than making mandatory) energy efficiency in the industrial and commercial sectors
of the country. The Tamil Nadu State Electricity Board (TNEB) also encourages, but does not mandate,
energy efficiency improvements.

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The project activity was implemented voluntarily by the project promoter, SIIL. The measure adopted was
not required by any legal mandate or State/National policies.

Social and environmental responsibility
The main factors that influenced the project promoters decision to implement this climate change initiative
are:

- Reduced fossil fuel consumption through improved energy efficiency, and
- GHG emission reductions due to reduced use of fossil fuels.

The company started operations during the year 1994. Since then, as a part of the companys commitment to
social and environmental responsibility, the management has been continuously striving to reduce its
greenhouse-gas emissions by identifying various energy-efficient technologies in their industrial facility, and
aims to be the most energy efficient industry in the sector. The project proponent has undertaken energy
audits by an internal team of engineers and by external agencies on a continuous basis. Although a number of
measures were identified for reducing energy consumption, management could not initiate implementation of
them due to high investment costs for adopting technologies, unavailability of local technologies, and risks
associated with adopting practices that were new to the industry.

The LPG consumption in the Anode Casting plant is one of the most energy intensive areas in the SIIL. A
detailed analysis of the energy consumption was done, and it was found that significant energy-efficiency
improvements could be achieved by replacing the single caster wheel with a twin caster. There are only two
twin caster technology suppliers in the international market. They are: SMS DeMag, West Germany and
Autokumpu, Finland. No Indian company had installed twin caster technology with a capacity of 100 TPH
prior to the installation of the twin caster at SIIL.

In considering the investment in this energy-efficiency measure, the project proponent was faced with both
prevailing practice and technological barriers associated with project implementation. However, it was
perceived that the availability of carbon financing through the sale of carbon credits (generated by the project
activity) would help to alleviate the severity of these barriers.

In accordance with the applied methodology, as the project activity involves the replacement of existing
equipment, the baseline consists of the energy baseline of the existing facility or sub-system that is
replaced, i.e. the plant with the continued use of the existing single caster, with no reduction in the LPG
consumption and its associated greenhouse-gas reductions.

The key barriers faced by the project proponent for the project activity are discussed below.

Barriers due to prevailing practices
Adoption of state-of-the-art twin-caster technology
Single-caster technology is widely used in Indian ferrous-alloy and non-ferrous-metal industries for
manufacturing anode and continuous castings. The project activity, i.e., the replacement of a single-caster
system with twin-caster technology, has not penetrated Indian industry due to the unavailability of local
technology/equipment suppliers, the complexity of the technology, high investments, and unavailability
of trained manpower for maintenance and operation of the equipment.

At the time of decision making for installing twin-caster technology at SIIL, no company in the world
had installed a twin caster of 100 TPH production capacity. The maximum-capacity twin caster

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commissioned was only 85 TPH, at Norddeutsche Affinerie, Hamburg Germany. Since then, only one
company in India has adopted twin-caster technology (Birla Copper, which has a rated production
capacity of only 65 TPH). No other company has installed a twin caster in India. Documentation
supporting this fact will be made available to the validator. Source: equipment suppliers client list.

The adoption of twin-caster technology is not a common practice in India.

Implementing high-cost measures for reducing energy consumption
In Indian industries, energy-efficiency measures will be implemented for reducing energy consumption
in large-scale and energy-intensive industries like aluminum, fertilizers, pulp and paper, petrochemicals,
chemical industries, chloro alkali, tyre manufacturing industries, automobile, cement, iron and steel etc.
The Bureau of Energy Efficiency (BEE) is an agency working under the Ministry of Power. BEE
encourages industries to reduce their energy consumption. Awards are distributed, but it is not mandatory
to implement energy-efficiency measures. The majority of Indian companies will present papers
demonstrating various measures implemented in their respective industries in order to compete for BEE
awards.

The common practice in Indian industries is to invest in low-cost measures, where the investment is less
than 20 million rupees in a given year for implementing energy-efficiency measures. Very few energy-
intensive industries in the country will implement measures where the investment for reducing energy
consumption costs more than 50 million rupees in a given year. Sterlite Industries India Ltd is one of
only two companies in the country that invested more than Rs.100 million in a single year for
implementing various energy efficiency measures.


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The details of various industries (selected) investing in energy-efficiency measures are presented below:

S.No Name of the Industry Sector Investment made in a
year
In million Rs.
1 Hindalco Industries Limited
Belur works, West Bengal
Aluminium 9.916
2 Mahindra & Mahindra Limited
Zaheerabad unit, Medak,
Andhra Pradesh
Automobile 6.223
3 Chettinad Cement Corporation
Limited Puliyur
Cement 10.25
4 Jubilant Organosys Ltd. Chemicals 19.9
5 Jubilant Organosys Ltd,
Nanjangud
(Drugs and Pharmaceutical
Div)
Drugs &
pharmaceuticals
0.77
6 Mother dairy(A unit of KMF
GKKV.post, Yelahanka,
Bangalore ( Karnataka )
Dairy 0.22
7 Coromandel Fertilisers Limited,
Visakhapatnam
Fertilisers 12.8
8 GlaxosmithKline Consumer
Healthcare Ltd. Sonepat Plant
Food processing 3.485
9 Brakes India Limited, Foundry
Division, Sholinghur
Foundries 1.35
10 Nagaon Paper Mill Pulp&paper 21.7
11 Asian Paints Limited
Ankleshwar
Paints & allied
products
10.398
12 Castrol India Limited
Tondiarpet Plant, Chennai,
Tamilnadu.
Petrochemicals 1.735
Source: http://www.bee-india.nic.in/sidelinks/EC%20Award/eca06/Award2006_CD/list.htm#21

The details presented in the table above are for sample industries. Details of many other industries are
available at: http://www.bee-india.nic.in/sidelinks/EC%20Award/eca06/Award2006_CD/list.htm#21.

The implementation of energy-efficiency measures with investment costs on a scale comparable with this
project activity is not a common practice in India.


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Technological barriers
Skilled and trained manpower
As per the Additionality Tool, lack of skilled and trained manpower is defined as a technological barrier:
Skilled and/or properly trained labour to operate and maintain the technology is not available, which leads
to an unacceptably high risk of equipment disrepair and malfunctioning or other underperformance.

The new technology adopted under this project activity does not have a pronounced presence in India
because of its advanced features and electronic controls, which require skilled personnel for operation &
maintenance. Such skilled personnel were not available locally, as there are no technology providers or
twin caster equipment suppliers in India. As a result, the project proponent is totally dependent on the
foreign technology provider and equipment supplier (SMS DEMAG). This situation presents an
unacceptably high risk to the project proponent in adopting the twin caster technology without the
support of the CDM.

Risks pertaining to technological failures
As per the Additionality Tool, the risk of technological failures is a barrier when the process/technology
failure risk in the local circumstances is significantly greater than for other technologies that provide services
or outputs comparable to those of the proposed CDM project activity, as demonstrated by relevant scientific
literature or technology manufacturer information.

Twin caster design presents a number of risks related to technological failure that are significantly
greater than the standard single-caster technology that is normally adopted in this industry in India. The
major risks of technological failure associated with implementation of project activity are as follows:

Dimensional accuracy
The dimensional accuracy of copper anode plates (98% accuracy and above) is critical in copper smelter
anode casting, as per customer requirements and for satisfactory refining of the metal into cathode plates.
If the required dimensional accuracy is not achieved, the product needs chipping before refining and
requires additional manpower and machine time. Otherwise the machine needs to be operated at less than
its rated capacity. The dimensional accuracy of twin-caster technology is unproven under local
circumstances.

Possibility of fire hazards due to its design
Twin casters are designed with the instrument cables, load shell and hydraulic systems which are easily
flammable due to their physical properties located very near to hot metal and exposed to very high
temperatures. With any human error leading to spillage of molten metal, there is a high risk of fire that
can damage the entire plant and cause injury to the workmen. Hence, the adoption of twin-caster
technology requires that workers must be given extensive additional training for operating the plant for
avoiding molten metal spillages.

Effect of furnace elevation
Twin caster design requires that the furnace and launders be placed high enough to allow sufficient slope
for metal to flow from the furnace to the caster. To provide sufficient slope for launder, the caster needs
to be installed below ground level and all of the cables for the casting ladles and other valve cables must
be laid close to the hot metal zone. Due to high temperatures in this zone, there is a high risk of fire that
can result in equipment damage and injury to the workers.


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Lubrication system for wheel bearing and pinions
Twin casters are designed with the ball bearing slewing rings and the slewing drive for each casting
wheel lubricated from a centralised automatic lubrication system. Additionally, as a procedure, initially
the feed line needs to be connected to the main manifold and then to individual lubricating points. As per
the design, about 12 lubrication points are located around each wheel in a concealed manner. Inability to
physically inspect the lubrication points is a major constraint of the twin caster. There is a risk of the
monitor indicating that the lubrication system is functioning normally, when in reality the lubrication
system may have malfunctioned. This can cause damage to various costly components of the twin caster
or breakdown of the machine. In a single caster, there is no comparable risk related to malfunctioning of
lubrication system, as physical inspection is simple and close monitoring of the lubrication system is
possible.

Monitoring of air and oil pressure
The twin caster machine wheel operates using a hydraulic and pneumatic system. For smooth and
trouble-free operation, it is critical that the hydraulic and air pressures are monitored. With any
uncertainty about the hydraulic and air pressures, the whole casting operation needs to be stopped. This
is due to a pressure-interlocking system for rotation of the wheels. Resumption of operations takes a long
time.

Furthermore, any leakage in the oil or air lines may lead to pressure drops and, subsequently, cause
breakdowns of the entire plant. With a single caster wheel, there is no oil and air pressure interlocking
system for rotation of the wheel.

Inventory of twin caster components
The anode take-off machines are equipped with separate hydraulic rotation drives. The units serve to take
the anodes out of the bosh tank and put them on the racks of the stacking facility. These hydro motors are
specially designed and coupled with encoders with gear arrangements. Lubrication oil leakages and gear
failures are common in this type of special equipment, and frequently cause equipment damage. There
are no local twin caster equipment suppliers. Therefore, maintaining inventory for motors and other
components is critical. Lack of available replacement components to repair machine breakdowns can
cause heavy production losses.

These characteristics of twin-caster technology represent risks related to technological failure that are
significantly greater than the standard single-caster technology that is normally adopted in this industry
in India.

B.6. Emission reductions:

B.6.1. Explanation of methodological choices:
>>
The project activity involves an energy-efficiency improvement in a single existing industrial facility that
reduces fossil fuel consumption i.e., LPG. Hence, the applicable baseline methodology is of the methodology
of AMS IID, version 11, EB 35.

In accordance with the methodology, in the absence of the CDM project activity, the existing facility
would continue to consume energy at historical average levels, until the time at which the industrial or
mining and mineral production facility would be likely to be replaced, modified or retrofitted in the
absence of the CDM project activity.

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19
The energy baseline is calculated as the average consumption of LPG per unit of production over the three
years prior to implementation of the project activity, multiplied by total production of the project activity.
Baseline emission reductions are calculated as the quantity of LPG reduced by the project activity multiplied
by the emission co-efficient of LPG. IPCC default values for LPG related emission coefficients are used
for calculating baseline emissions.

The detailed calculations of the historical specific energy consumption per ton of production (SEC
by
) are
presented in Annex 3. The emissions in the baseline scenario are calculated as follows:

BEy = [SEC
by
* P
y
]* NCV
L
*CEF
L

Where,
BE
y
= Baseline emissions during the year y (t CO
2
)
SEC
by
= Historical Specific Energy consumption of the baseline equipment prior to project
implementation, in tons per ton production (t LPG/ ton of production)
P
y
= Total production after implementation of project activity during the year (y)
NCV
L
= Net Calorific Value of fossil fuel LPG used (TJ/kt LPG)
CEF
L
= IPCC default value for carbon emission factor for LPG (tCO
2
/TJ)

SEC
by
= (LPG
by
/P
by
)/3

SEC
by
= Average Specific Energy consumption for the 3 years prior to implementation of the
project activity, in tons per unit production (t LPG/t of Production)
LPG
by
= Sum of the total quantity of LPG consumed during each of the 3 years (y) prior to
implementation of the project activity (tons)
P
by
= Sum of the total production achieved during each of the three years (y) prior to
implementation of the project activity (tons/year)

Historical baseline and date of retrofitting
As per the methodology applied, the baseline is the historical consumption of energy until the time at
which the facilities would be likely to be retrofitted or replaced in the absence of this project activity
(DateBaselineRetrofit). From that point of time onwards, the baseline scenario is assumed to correspond
to the project activity, and the baseline energy consumption is equal the project energy consumption, and
no emission reductions occur.

Baseline energy consumption = Historical energy consumption until DateBaselineRetrofit
Baseline energy consumption = Project energy consumption after DateBaselineRetrofit

DateBaselineRetrofit
The typical average technical lifetime of the baseline equipment, i.e. the single caster, is 30 years. The
baseline equipment was installed in 1992. Therefore, it is likely that the baseline equipment would have
been replaced during the year 2022. Hence, we assume that after the year 2022 the baseline equipment
corresponds to the project activity. After 2022 the baseline energy consumption is assumed to equal
project activity energy consumption. No emission reductions occur beyond 2022 and the crediting period
chosen is for 10 years starting from the year 2008 to 2018 for the project activity and can claim emissions
reduction during the entire crediting period.. Documentation indicating the average lifetime of single
casters and the date of installation of the single caster at the facility will be provided to the DOE.


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20
Project Emissions
Project emissions are calculated as follows:

PE
y
= [SEC
py
* P
y
]* NCV
L
*CEF
L
+ EEq
y
Where,
PE
y
= Project emissions during the year y (t CO
2
)
SEC
by
= Specific Energy Consumption after implementation of the project activity in tons per
unit production (t LPG/t of production)
P
y
= Total production achieved after implementation of project activity during the year (y)
NCV
L
CEF
L
2
/TJ)
EEq
y =
Project emissions from the baseline equipment (single caster) during the year y (t CO
2
)

SECy = LPGy/Py

SEC
y
= Specific Energy Consumption after implementation of the project activity during the
year y, in tons per unit production (t LPG/t of production)
LPG
y
= Total Quantity of LPG consumption after implementation of the project activity during
the year y (t LPG)
P
y
= Total production after implementation of the project activity achieved during the year
y (tons)

The baseline (single caster) equipment will remain installed and may be used in emergency situations. If
this occurs, project emissions from the use of the single caster (EEq
y
) will be calculated as per the
following formula:

EEq
y
= [(SEC
be
- SEC
y
)* P
SC
]* NCV
L
*CEF
L

Where,
EEq
y
= Project emissions from the baseline equipment (single caster) during the year y (t CO
2
)
SEC
be
= Specific Energy Consumption of the baseline equipment used in emergency after
implementation of the project activity, in tons per unit production (t LPG/t of
production)
SEC
y
= Specific Energy Consumption after implementation of the project activity during the
year y, in tons per unit production (t LPG/t of production)
P
be
= Total production achieved using the baseline equipment after implementing the
project activity during the year (y)
NCV
L
CEF
L
2
/TJ)

SEC
be
= LPG
be
/P
be

SEC
be
= Specific Energy consumption of the baseline equipment used after implementation of the
project activity, in tons per unit production (t LPG/t of production)

LPG
be
= Quantity of LPG consumed using the baseline equipment after implementation of the project
activity during the year y (tons/year)

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P
be
= Total production using the baseline equipment after implementation of the project
activity achieved during the year y (tons/year)

The project emissions due to electricity consumption for operating twin caster are not quantified. The
power consumption per ton copper anode production is lower in the project activity case than in the
baseline (i.e. with single caster). The details documenting this fact are furnished in Attachment 2. This is
a conservative assumption.

Leakage
AMS II D., Version 11, Scope 4, requires that leakage be considered, If the energy efficiency
technology is equipment transferred from another activity or if the existing equipment is transferred to
another activity.

The energy efficiency equipment (twin caster) for the proposed project activity is new and is not
transferred from another activity. The existing equipment (single caster) will not be transferred to another
activity. Hence, the consideration of leakage is not required and we assume that no leakage emissions
will occur.

L
y
= 0 Leakage quantity during the year y (t CO
2
)

EMISSION REDUCTIONS

For each year of the crediting period the emission reductions are calculated as:

ER
y
= BE
y
PE
y
L
y

Where
ER
y
= Emission reductions during the year y (t CO
2
)
BE
y
2
)
PE
y
2
)
L
y
= Leakage quantity during the year y ((t CO
2
)

Since leakage (L
y
) is not anticipated, the emission reductions are the difference between baseline
emissions and project emissions.


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

Data / Parameter: P
by

Data unit: Mt
Description: Quantity of production in tons achieved during the fiscal years 2002-03 through
2004-2005, prior to the implementation of the project activity

Source of data used: Production records of SIIL plant using single caster
Value applied: 158457 Mt (2002-03), 175242 Mt(2003-04) and 111920 Mt (2004-05)
Justification of the
choice of data or
description of
measurement methods
and procedures
actually applied :
The SIIL production plant monitors and records production on an hourly/daily
basis as per their standard practices.

Any comment: Data item used for calculation of baseline emissions in anode casting

plant.

Data / Parameter: LPG
by

Data unit: Mt
Description: Quantity LPG consumed during the fiscal years 2002-03 through 2004-2005,
prior to implementation of the project activity

Source of data used: Fuel consumption records of the single caster anode plant or purchase receipts.
Value applied: 3459Mt (2002-03), 3223 Mt(2003-04) and 2405 Mt (2004-05)Mt
choice of data or
description of
measurement methods
and procedures
actually applied :
The SIIL production plant records and monitors LPG consumption on an
hourly/daily basis as per their standard practices.
Any comment: Data item used for ex-ante calculation of baseline emissions in anode casting

plant.

Data / Parameter: CEF
L

Data unit: t CO
2
/TJ
Description: Emission Factor for LPG used in the anode casting plant.
Source of data used: Revised 2006 IPCC Guidelines For National Greenhouse Gas Inventories :
Workbook
Value applied: 63.100 tCO
2
/kt
choice of data or
description of
measurement methods
and procedures actually
applied :
As per the methodology applied, the IPCC default value for the emission
coefficient of the avoided fossil fuel is used.
Any comment: Data item used for calculation of baseline emissions in anode casting plant.

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23

B.6.3 Ex-ante calculation of emission reductions:
>>

Baseline Emission Calculations

The energy baseline consists of the energy use of existing equipment that will be replaced or retrofitted
under the project activity. The emissions in the baseline scenario are calculated as follows:

BE
y
= [SEC
by
* P
by
]* NCV
L
*CEF
L

Where,
BE
y
2
)
SEC
by
= Historical Specific Energy consumption of the baseline equipment prior to project
activity implementation in tons per ton production (tons of fuel/ton of production) =
0.02065
P
y
= Production capacity in year (y) = 400000 Tons per annum
NCV
L
= Net Calorific Value of fossil fuel LPG used = 47.3 TJ/Kt
CEF
L
= IPCC default value for carbon emission factor for LPG (tC O
2
/TJ) = 63.10 tCO
2
/TJ

= 0.02057 * 400000*47.3*63.10/1000 =

= 24557 t CO
2

Assuming,
SEC
by
= (LPG
by
/P
by
)/3

SEC
by
= Average Specific Energy consumption for the 3 years prior to implementation of the
project activity, in tons per unit production (kt LPG/t of production)
LPG
by
= Sum of the total quantity of LPG consumed during each of the 3 years (y) prior to
implementation of the project activity (tons)
P
by
= Sum of the total production achieved during each of the three years (y) prior to
implementation of the project activity (tons/year)

Calculation of Project Emissions

The project emissions is calculated as energy consumption (LPG) after implementation of the project
activity ie., twin caster multiplied by carbon emission coefficient of LPG.

PEy = [SEC
py
* P
py
]* NCV
L
*CEF
L

Where,
PE
y
2
)
SEC
by
= Specific Energy consumption after implementation of the project activity in tons per
unit production (t LPG/t of production) = 11.50 kg/ton of copper anode production or
0.01105 tons LPG/ton of copper anode production
P
by
= Total production of project activity during the year (y) = 400000 tons
NCV
L
= Net Calorific Value of fossil fuel LPG used in the baseline = 47.3 TJ/kt

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CEF
L
= IPCC default value for carbon emission factor for LPG (tC O
2
/TJ) = 63.10 tCO
2
/TJ

= 0.01105 * 400000*47.3*63.100/1000

= 13192 t CO
2

Leakage

Not Applicable

Emission reductions

Emission reductions from the project activity are estimated as the difference between baseline emissions,
project emissions and leakage.

y y y y
L PE BE ER =

= 24557 13192 0

= 11,365 tCO
2

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

Year
Estimation of
project activity
emissions
(tCO
2
e)
Estimation
of baseline
emissions
(tCO
2
e)
Estimation of
leakage

(tCO
2
e)
Estimation of
overall emission
reductions
(tCO
2
e)
2008 13192 24557 0 11365
2009 13192 24557 0 11365
2010 13192 24557 0 11365
2011 13192 24557 0 11365
2012 13192 24557 0 11365
2013 13192 24557 0 11365
2014 13192 24557 0 11365
2015 13192 24557 0 11365
2016 13192 24557 0 11365
2017 13192 24557 0 11365
Total (tCO
2
e) 131920 245570 0 113650


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25
B.7 Application of a monitoring methodology and description of the monitoring plan:

B.7.1 Data and parameters monitored:

Data / Parameter: Py
Data unit: Tons
Description: Quantity of production achieved during the year y in twin caster anode
plant i.e., after implementation of the project activity, measured using a
weigh bridge meter.
Source of data to be used: On-site measurements.
Value of data Anticipated annual production level: 400000 tons per year

Description of measurement
methods and procedures to be
applied:
The total quantity of production achieved is weighed on a continuous
basis and will be recorded in the log books.

QA/QC procedures to be
applied:
The weigh bridge meter undergoes calibration/maintenance as per the
industrial standards of India. The data recorded at the weigh bridge will
be stored in log books can be cross checked against the sale receipts or
internal records.
Any comment:

Data / Parameter: LPGy
Data unit: Tons
Description: Quantity of LPG consumed in twin caster plant during year y
Source of data to be used: On-site measurements and LPG on line flow meter is installed for the
purpose of monitoring and cross verified with fuel purchase records.
Value of data Anticipated level of annual LPG consumption: 4420 MT

applied:
The total quantity of LPG supplied to the plant will be monitored on a
continuous basis and will be recorded in the log books.

applied:
The LPG flow meter under goes calibration/maintenance as per the
industrial standards of India. The data recorded at the flow meter will
be stored in log books can be cross checked against the LPG purchase
receipts.
Any comment: The data of LPG consumption for Twin caster plant will be maintained
separately in log books.


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Data / Parameter: SEC
y

Data unit: tons/MT
Description: Average quantity of LPG consumed in tons per ton of copper anode production
in twin caster plant during year y, i.e., after implementation of the project
activity.

Source of data to be
used:
On site measurements and plant records will be used in the calculation.
Value of data Anticipated level: 0.01105
Description of
measurement methods
and procedures to be
applied:
The specific LPG consumption per ton of production in Twin Caster plant is
calculated as the ratio of LPG consumption to copper anode production in the
twin caster plant. The input parameters to the calculation are monitored on a
continuous basis and aggregated to monthly and yearly values.
QA/QC procedures to
be applied:
The parameter is calculated value and hence no quality control measures are
required
Any comment: Records are maintained and archived electronically for monitoring purposes.

Data / Parameter: NCV
gas

Data unit: kcal/kg
Description: Net calorific value of the LPG used in the twin-caster plant.
Source of data used: Determined by lab analysis reports.
Value applied: 10900
Justification of the choice of
data or description of
measurement methods and
procedures actually applied :
Samples of LPG gas will be collected according to the procedures of
sample collection for analysis and will be sent to external reputed
Laboratories.
applied:
Project participants have no control over the parameter. Hence, No
QA/QC procedures are applicable.
Any comment: The net calorific value will be determined on a monthly basis by a
reputed external laboratory.

Data / Parameter: P
be

Data unit: Tons
Description: Quantity of production achieved during the year y using the baseline
equipment in emergencies, after implementation of the project activity.
Source of data to be used: On-site measurements.
Value of data Anticipated level: Nil tons per year

applied:
The total quantity of production achieved will be weighed on
continuous basis and will be recorded in the log books.

applied:
The weigh bridge meter undergoes calibration/maintenance as per the
industrial standards of India. The data recorded at weigh bridge in log
books can be cross checked against the sale receipts or internal records.
Any comment: The parameter is monitored for calculating project emissions.

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Data / Parameter: LPG
be

Data unit: Tons
Description: Quantity of LPG consumed in the baseline equipment used in
emergency situations during year y
Source of data to be used: On-site measurements and on line flow meter is installed for the
purpose and recorded in log books
Value of data Anticipated level: Nil

applied:
The total quantity of LPG supplied to the baseline equipment will be
measured on a continuous basis and will be recorded in the log books.

applied:
The flow meter will undergo calibration/maintenance as per the
industrial standards of India. The data is recorded in log books.
Any comment: The parameter is monitored for calculating project emissions.

Data / Parameter: SEC
be

Data unit: ton/Mt
Description: Average quantity of LPG consumed in ton per ton of copper anode production in
baseline equipment operated in emergency during year y, i.e., after
implementation of the project activity.

Source of data to be
used:
Plant records will be used to provide input data to the calculation.
Value of data Anticipated value: Nil
Description of
measurement methods
and procedures to be
applied:
The specific LPG consumption per ton of production using baseline equipment is
calculated as the ratio of LPG consumption and copper anode production using
the single caster. The parameter will be monitored on continuous basis and
aggregated to monthly and yearly values.
QA/QC procedures to
be applied:
The parameter is a calculated value. Hence, no quality control measures are
required.
Any comment: Records are maintained and it is archived electronically for monitoring purpose
and is used for estimating leakage emissions

All data will be archived for two years after issuance of CERs and during the entire crediting
period.

B.7.2 Description of the monitoring plan:
>>
This monitoring plan is developed in accordance with the modalities and procedures for small-scale
CDM project activities and is implemented for the twin caster plant at Sterlite Industries Limited,
Tuticorin, Tamilnadu State of India. The monitoring plan, which will be implemented by the project
proponent, describes how the monitoring will be managed, the parameters to be monitored, monitoring
practices, quality assurance, quality control procedures, data storage and archiving.

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28

Project Management
The authority and responsibility for registration, monitoring, measurement, reporting and reviewing of
the data rests with the CEO for Sterlite Industries India Ltd. The CEO may delegate the same to a
competent person identified for the purpose. The identified person will be in charge of GHG monitoring
activities and necessary reports will be submitted to the management, i.e. CEO or Committee, for review.
The designated manager will be assisted by a team of experienced personnel in disciplines such as
mechanical and electrical engineering with experience in plant operation, measurements and
management. The primary responsibility of the team is to measure, monitor, record, and report the
information on various data items to the Vice President (operations), in accordance with the applicable
standards. Periodic calibration of various instruments used in the monitoring and record keeping of GHG
related data will also be the responsibility of the team. The responsibility for review, storage and
archiving of information in good condition lies with the designated manager. The concerned manager
will undertake periodic verifications and onsite inspections to ensure the quality of the data collected by
the team and initiate corrective steps in case of any abnormal conditions.

The company will introduce an internal auditing system for CDM monitoring compliance. Internal
auditing will be carried out as per the monitoring schedule and whenever necessary. An internal audit
report will be prepared for review by the CEO, which will subsequently be submitted to an independent
Designated Operational Entity (DOE) for verification. The CEO will examine the internal audit reports
and will take particular note of any deviations in data over the norms, and will monitor that any
corrective actions required have resulted in adherence to the standards.

Monitoring Requirements
The monitoring plan includes monitoring of the quantity of LPG consumed under the project activity,
calorific values of LPG used, production of copper anode castings from the twin-caster plant and
calculation of specific LPG consumption per ton of production in the twin-caster plant. Emission
reductions resulting from the project activity will be calculated using the formulae as illuminated in
Section B.6.1 of the PDD. Emission reductions generated by the project shall be monitored at regular
intervals. The crediting period chosen for the project activity is 10 years. Monitoring equipment is
comprised of weigh bridge meters and LPG flow meters. External laboratories will measure the calorific
value of the LPG consumed. Project proponent will appoint a Designated Operational Entity (DOE) for
verification of emission reductions resulting from the project activity at regular intervals.


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Operational and management structure
The proposed operational and management structure for the project activity for the purpose of monitoring
of emission reductions is shown below (may undergo changes if the situation demands):

Since the project activity will not consume more electricity than the baseline case for the same quantity
of production, project emissions due to electricity consumption are not considered. If the baseline
equipment i.e., the single caster, is used during the crediting period, emissions will be calculated as per
the formulae provided in section B 6 of this PDD.

Leakage Monitoring
The equipment installed under the proposed project activity is new and not transferred from another
activity. The existing equipment will not be transferred to another activity. Hence, leakage is not
considered for the project activity. Hence, no parameters or variables are to be monitored under leakage.

Uncertainties
Any uncertainty like inconsistency/discrepancy of data parameters will be dealt with by instituting
corrective actions. These will be reported along with the time of occurrence, possible reasons and
duration. Corrective actions will be undertaken after identifying the reason for such uncertainty.

Data Recording and Storage
All of the data monitored under the monitoring plan will be kept in electronic form and hard copy format
for 2 years after the end of crediting period or the last issuance of CERs for this project activity,
whichever occurs later. The monitored data will be presented to the verification agency or DOE to whom
verification of emission reductions is assigned.
CEO
Vice President -
operationons
Copper Anode Casting - Manager
Shift in charge
(Maintenance)
Shift in charge
(Production)
Shift Engineer

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The technology and equipment supplier has provided operating manuals, procedures and training for the
SIIL personnel as per their agreement signed with the Project Participants. The operating manual
provides procedures for monitoring the thermal energy generation, emergency preparedness, calibration
of monitoring equipment, the companys operation and maintenance responsibilities etc. The same will
be adopted for GHG audits and will form part of the monitoring plan. Hence, no separate procedures for
QA/QC are provided in this monitoring plan.

B.8 Date of completion of the application of the baseline and monitoring methodology and the
name of the responsible person(s)/entity(ies)
>>
The baseline for the project activity was constructed accordance with the indicative simplified baseline
and monitoring methodologies for selected small-scale CDM project activity categories, AMS II D.,
Version 11, Scope 4, EB 35. As such, for the case of equipment replacement measures, the baseline
consists of the energy baseline of the existing facility or sub system that is replaced. The project activity
reduces LPG consumption in a copper anode casting plant by replacing a single caster with a twin caster.
Hence, the simplified baseline is the energy baseline of the single caster and the baseline emissions are
the quantity of LPG reduced by the project activity times the emission coefficient of LPG. IPCC default
values for the emission coefficients will be used.

Date of completion of the baseline : 20/03/2008
Name of the person / entity determining the baseline : Zenith Energy Services (P) Ltd.

Contact information of the above entity furnished below:

Organization: ZENITH ENERGY SERVICES (P) LTD.
Street/P.O. Box, Building: 10-5-6/B, MYHOME PLAZA, MASABTANK,
City: HYDERABAD
State/Region: ANDHRA PRADESH
Postfix/ZIP: 500028
Country: INDIA
Telephone: +91 40 2337 6630, 2337 6631
FAX: +91 40 2332 2517
E-Mail: zenithenergy@sancharnet.in
URL: www.zenithenergy.com
Represented by:
Title: DIRECTOR
Salutation: MR.
Last Name: REDDY
Middle Name: MOHAN
First Name: ATTIPALLI


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SECTION C. Duration of the project activity / crediting period

C.1 Duration of the project activity:

C.1.1. Starting date of the project activity:
>>
28/10/2002

C.1.2. Expected operational lifetime of the project activity:
>> 30 years

C.2 Choice of the crediting period and related information:

C.2.1. Renewable crediting period

Not chosen

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:

The project proponent wishes to select the fixed crediting period

C.2.2.1. Starting date:
>>
01/08/08

C.2.2.2. Length:
>>
10 years


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SECTION D. Environmental impacts
>>

D.1. If required by the host Party, documentation on the analysis of the environmental impacts
of the project activity:
>>
As per the Environmental Impact Assessment (EIA) notification S.O.60 (E), dated 27/01/1994, and
subsequent amendments to the notification until 2002, the project falls under category 19 (Thermal
Power Plants) of Schedule I. As per Clause 3.b of the notification, projects under category 19 need not
obtain/conduct any environmental clearance and Environmental Impact Assessment, if the investment is
less than Rs. 1000 millions. Since the total cost of the project activity is Rs. 100 millions, the project
activity does not call for an EIA. However, the project activity is required to obtain permission from the
Tamilnadu State Pollution Control Board for implementing the project activity. The project proponents
have obtained necessary clearance in this regard and will be made available for the validator.

There is no negative impact on the environment due to project activity either during the installation phase
or post project implementation.

D.2. If environmental impacts are considered significant by the project participants or the host
Party, please provide conclusions and all references to support documentation of an environmental
impact assessment undertaken in accordance with the procedures as required by the host Party:
>>
No significant impacts are possible as a result of project implementation. Hence not applicable.

SECTION E. Stakeholders comments
>>

E.1. Brief description how comments by local stakeholders have been invited and compiled:
>>
Identification of Stakeholders

The project activity involves the installation of a twin caster wheel in order to reduce LPG consumption
in copper anode production. It is relatively small scale with no significant negative impacts such as noise,
air or water pollution outside the plant facility. Therefore, comments from the local population are not
necessary.

However, the stakeholders listed below have been identified. They include government and non-
government parties, which have been involved in the project activity at various stages.

- SIIL Employees and Statutory Bodies like, Tamil Nadu Pollution Control Board (TNPCB)

SIIL communicated all relevant information to the stakeholders listed above.


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The SIIL Copper Anode Casting Plant engineer presented the project activity to the project team, which
is comprised of all employees of the twin caster copper anode production section. The twin caster plant
operators and other shop flow employees provided complete support.

E.2. Summary of the comments received:
>>
Stakeholders Involvement
SIIL Employees:
One of the most important stakeholders of the project activity is the employees of SIIL. The project
activity has positive environmental impacts locally as well as globally by reducing fossil fuel
consumption in copper anode production and reducing GHG emissions. SIIL employees appreciated their
managements contribution towards energy conservation and reducing greenhouse-gas emissions, which
contribute to global warming.

Tamil Nadu Pollution Control Board:
As mentioned above, the Tamil Nadu Pollution Control Board (TNPCB) does not require SIIL to submit
an Environmental Impact Assessment for the project activity. However SIIL is required to send a
communication to the pollution control authorities about any major modification in their facilities. SIIL
has provided the TNPCB authorities with the project activity details for their information. No comments
have been received from them.

E.3. Report on how due account was taken of any comments received:
>>
The project activity has received positive comments from the stakeholders. The CDM-PDD will be
posted on the UNFCCC or validators web site for public viewing and comments.

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34
Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY

Organization: Sterlite Industries (I) Limited
Street/P.O.Box: SIPCOT Industrial Complex, T.V. Puram P.O
Building:
City: Tuticorin
State/Region: Tamil Nadu
Postfix/ZIP: 628 002
Country: India
Telephone: 91- 461-6612591 (10 lines)
FAX: +91-461-2340203, 2340036
E-Mail:
URL: www.vedantaresources.co.in
Represented by:
Title: Chief Executive Officer
Salutation: Mr.
Last Name: Kumar
Middle Name:
First Name: Kishore
Department:
Mobile: +91 9892327641
Direct FAX: +91 461 2340129
Direct tel: +91 461 661 2115
Personal E-Mail: Kishore.kumar@vedanta.co.in


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35
Annex 2

INFORMATION REGARDING PUBLIC FUNDING

No public funding is envisaged from countries listed in Annex 1 of Kyoto Protocol


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36

Annex 3

BASELINE INFORMATION

Baseline Calculations

For establishing the baseline LPG consumption per ton of copper anode production with the single caster,
i.e. before implementation of the project activity, and achievable LPG savings, historical data for the last
three fiscal years have been considered for LPG consumption, copper anode production. Specific LPG
consumption is calculated using this data for last three years prior to project implementation. The data
and calculation results are furnished below:

Year LPG consumption
(Mt)
Copper Anode
production (Mt)
Specific LPG consumption per
ton of copper anode
production (kg/ton)
2002-03 3459.00 158457 21.83
2003-04 3223.00 175242 18.39
2004-05 2405.00 111920 21.49
Average 3029.00 148540 20.57
Year 2002-03 and 2003-04 corresponds to April March
Year 2004-05 corresponds to April 04 - November 05

The average specific LPG consumption for last three fiscal years is 20.57 kg/Mt.or 0.02057 tonne/MT of
anode production. This value has been used for the baseline specific LPG consumption per ton of copper
anode production.


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Annex 4

MONITORING INFORMATION
As provided in section B.7.2 of the PDD


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Attachment 1
Calculation for TJ to GWh conversion
1 TJ = 0.2777 GWh
1GWh = 10
9
Watt hour
1 GWh = 10
9
*Joule/second * 3600 seconds
= 3600 * 10
9
*Joule
= 3.6 * 10
12
Joule
1 GWh = 3.6 TJ
1 TJ = 1/3.6 GWh
1 TJ = 0.2777 GWh.

Direct Power Consumption Savings by Twin Caster

Sl.No Equipment name
Connected
load (Kw)
1 CASTER-2 MAIN DRIVE 3
3 LIME TANK AGITATOR 5.5
4 TWINCASTER HYDRAULIC RECIRCULATION PUMP 4
5 RE-CIRCULATION TANK AGITATOR 5.5
6 TWIN CASTER ID FAN 18.5
7 TWINCASTER BARYTE STIRRER 3.7
8 TWINCASTER RETURN WATER PUMP - A 45
9 TWINCASTER RETURN WATER PUMP - B 45
10 TWINCASTER SUPPLY WATER PUMP - A 75
11 TWINCASTER SUPPLY WATER PUMP - B 75
12 LPG BLOWER - A 45
13 LPG BLOWER - B 45
14 MOULD DRILLING MACHINE 0
15 SPINDLE MOTOR 5.5
16 UP/DOWN MOTOR 0
17 LUBRICATION MOTOR 0.37
18 COOLANT PUMP 0.075
19 TWINCASTER HYDRAULIC PUMP - 1 37
Total load 490.145
Motor list in Twin caster


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Sl.No Equipment name
Connected
load (Kw)
2 CASTER-3 ATM 1 RECIR.PUMP 3.7
3 CASTER-3 ATM 2 RECIR.PUMP 3.7
4 CASTER-3 SUPPLY WATER PUMP - B 75
5 CASTER-3 SUPPLY WATER PUMP - A 75
6 CASTER - 3 RETURN PUMP - B 37
7 CASTER - 3 RETURN PUMP - A 37
8 CASTER-3 ATM 2 HYD PUMP -1 37
12 CASTER-3 SUPPLY WATER PUMP - A 75
13 CASTER-3 SUPPLY WATER PUMP - B 75
14 CASTER-3 SERVO PUMP-1 5.5
15 CASTER-3 SERVO PUMP-2 5.5
16 CASTER-3 AUX PUMP - 1 3.7
17 CASTER-3 AUX PUMP - 2 3.7
18 CASTER 3 AUTO BARRYTE MOTOR 3.7
19 HYDRAULIC PUMP FOR MOULD TRAVEL 3.7
20 BARRYTE SOLUTION DEWATERING PUMP 2.2
21 MOULD PRESS(NEW) 3.7
22 MOULD PRESS(OLD) 3.7
Total load 567.8
Motor list in old cast wheel

Power consumption by Twin caster = 3.30 Gwh/year

Power Consumption by Single Caster = 3.82 Gwh/year

Power Savings attributed by Twin Caster = 3.82-3.30 Gwh
= 0.52 Gwh/year

Southern Region Combined Margin Emission
Factor = 858 tCO
2/
Gwh

Emission reductions due to power savings = 0.52 Gwh/year* 858 tCO
2/
Gwh
= 446.16 tCO
2
/year.


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Attachment 2

References
References for Base Line Data

The methodology adopted for the calculation of the baseline is as per EB 32 Report Annex 9, Tool to
calculate project or leakage CO
2
emissions from fossil fuel combustion.
http://cdm.unfccc.int/Reference/Guidclarif/index.html

References for completing the PDD

1. Website of United Nations Framework Convention on Climate Change (UNFCCC),
http://unfccc.int
2. UNFCCC document: Clean Development Mechanism, Simplified Project Design Document For
Small Scale Project Activities (SSC-PDD), Version 03
3. UNFCCC document: Simplified modalities and procedures for smallscale clean development
mechanism project activities
4. UNFCCC document: Indicative simplified baseline and monitoring methodologies for selected
small-scale CDM project activity categories, Version 10, 23
rd
December 2006.
5. Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories: Workbook, Section
1.6. http://www.ipcc-nggip.iges.or.jp/public/gl/invs5a.htm
6. Data Records obtained from SIIL through Electronic Mail.


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Attachment 3
Abbreviations
CEA Central Electricity Authority
CO
2
Carbon dioxide
EIA Environment Impact Assessment
GHG Greenhouse gas
GoI Government of India
GWh Giga Watt hour
IPCC Inter Governmental Panel On Climate Change
kWh Kilo watt hour
LPG Liquefied Petroleum Gas
MoEF Ministry of Environmental and Forestry
PDD Project Design Document
SIIL Sterlite Industries India Limited
TNPCB Tamil Nadu Pollution Control Board
TNEB Tamil Nadu Electricity Board
UNFCCC United Nations Framework Convention on Climate
Change

Sterlite LPG Reduction Project

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