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
CONTENTSA.

General description of project activity

B.

Application of a baseline and monitoring methodology

C.

Duration of the project activity / crediting periodD.

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 plan

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SECTION A. General description of project activity
A.1.
Title of the project activity:>>
A power generation project using waste heat from the Coke Dry Quenching (CDQ) equipment in China,
ver.02.2, Feb. 12, 2008.

A.2.

Description of the project activity:>>
Shanxi Antai Group Holding Co., Ltd. (hereafter referred to as the “Antai Group”), located in Jiexiu City,
Shanxi Province, China, was established in 1984. The group owns several companies dealing withvarious fields of industries including coke, steel, building material, etc. Judging from the volume ofcokes and pig iron production, it is a small or medium-sized private company comparing to other stateowned large companies.
Antai Group has a mechanical coke production plants (coke oven) construction plan which consists of
two phases. In 2005, Antai Group started the operation of two new mechanical coke ovens with annual
production capacity of 1.1 million tons (end of the first phase of the construction plan) and anothermechanical coke oven (0.65 million ton/year) is to start operation in early 2008 (second phase of theconstruction plan)1.
However, it did not install the Coke Dry Quenching (CDQ) equipment mainly because of its low
profitability and high initial investment cost. Instead of the CDQ, red-hot coke taken out of the abovementioned two mechanical coke ovens has been cooled with a water spray in a quench tower, which is aprocess known as wet quenching (Coke Wet Quenching: CWQ). Neither Shanxi nor Jiexiu government
has set a specific incentive/penalty scheme yet that would mandate the installation of the CDQ equipment
instead of the CWQ equipment.
This proposed CDM project activity is to install CDQ equipment near a coke oven, which would be thesecond case in Shanxi and be the first case without the foreign government’s Official Development
Assistance (ODA) in Shanxi. It will achieve the reduction of CO2 emissions by recovering sensible waste
heat from red-hot coke, which will lead to the avoidance of the CO2 emissions both from electricity
generation by fossil fuel power plants that presently supply the North China Power Grid and from captive
power plants. GHG emission reduction will be approximately 942,593 ton CO2 in total during sevenyears of the crediting period (from 2009 to 2016).
The cokes treated with the CDQ will be partly used internally for steel making and be partly sold toexternal buyers. All of the electricity generated by the CDQ will be used internally.

1

The starting date of the construction of another coke oven in the second phase and its precise cokes production
amount are not yet decided. Although the total cokes production amounts may be over 2 million ton after thecompletion of the second phase, the construction plan of the mechanical cokes oven is usually called as “2 millioncoke oven production plan”.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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page 3The specific goals of the project are to:· reduce greenhouse gas emissions in China compared to a business-as-usual scenario;· help to stimulate the dissemination of the CDQ installation in China;· create local employment for the operation of the CDQ and its auxiliary instruments.
Especially, the implementation of this project activity will improve not only global environment but also
local surroundings. In regards to the local surroundings, it can reduce the emissions of air pollutants,
such as SO2, NOX, and CO, in the flue gas generated from the combustion of fossil fuels. In addition, theintroduction of CDQ equipment will make it possible to avoid both the excess use of the water and theemissions of fine particles cokes generated from the quenching of cokes by CWQ with mass sprinkling ofchilled water in a quenching tower.
These benefits are summarized in the following Table 1 and all of these benefits will contribute to thesustainable development of China.

Table 1. Main benefits expected from the installation of CDQ
Type
1. Recovery of waste heatfrom coke

Benefits
Heat recovery: 2 GJ/t-coke
Electricity generation：85 kWh/ t-coke, 12 MW, 97.92 GWh/year
Emission reduction of GHG, SOx, NOx by reduction of fossil fuel consumption
in the grid and captive power plants

2. Improved surrounding
environment

Reduction of airborne particles (approx. 0.155 kg/t-coke) and vapour emission

Note1: There is a possibility that dust will be generated during the transportation of the CDQ-treated dry cokes from thecokes oven to the blast furnace through the belt conveyor compared with the case of the CWQ-treated wet cokes. We
will monitor the dust generation regularly and take necessary measures to avoid serious environmentally negative
impacts by, for example, covering of the connection part of the belt conveyer with soft dustproof cover. Please refer tothe section B.7.2.
Note2: There is an agreement between Antai and the electricity utility company as for the linkage which is specified by
the standard GB/T177883-1999 and DL/T614-1997 (Feb.2, 2001).

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A.3.
>>

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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)

China

Shanxi Antai Group Holding Co., Ltd

No

Japan

Tohoku University

No

Japan

Japan Carbon Finance, Ltd.

No

Note: Although the Tohoku University is one of the project participants, it will not claim the acquisition of the CER
generated with this proposed project activity.

A.4.

Technical description of the project activity:
A.4.1. Location of the project activity:>>
The project activity is to take place in the premise of the Antai Group in Jiexiu City in the existing site. It
is located next to the coke oven of the Antai Group.
A.4.1.1.

Host Party(ies):>>
People’s Republic of China
A.4.1.2.

Region/State/Province etc.:>>
Shanxi Province
A.4.1.3.
>>
Jiexiu City

City/Town/Community etc:

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page 5A.4.1.4. Detail of physical location, including information allowing the unique
identification of this project activity (maximum one page):>>
Shanxi Province is located in the northern part of China,
southwest of Beijing, and in the middle reaches of the Yellow
Inner Mongolia
River (Fig.1). Jiexiu City is located in the mid-south of Shanxi
Autonomous Region
Datong City
Province and at the south end of Jinzhong basin, with a surface
2
area of 743.7 km and population of 351 thousand (Fig.2).
Shuozhou City
Xinzhou City

Shanxi

Shaanxi
Province

Lishi
City

Hebei
Province

Taiyuan City
YangquanJinzhong City
City

Jiexiu City
Changzhi City

Beijing

Linfen City
Jincheng City

Shanghai

Yuncheng
City

HenianProvince

Fig. 2. Location of the Jiexiu cityin the Shanxi Province

Fig. 1. Location of the Shanxi Province

Fig.3 below shows the layouts of the facilities in Antai Group.

7
V5

6

3 1 4 5
V4
10

V3

P1

2
8
9
Coke plant II

P2

12
11 13

V2
P3
lant
Cement p

V1

Ironworks

Sintering plant

3# BF
2 BF
#

1# BF

g
Steelmakin
plant

Facilities of Antai
1 CDQ
2 CWQ
3 Coke oven
4 Coke stock
5 Coal supply
6 Chemical plant
7 Sewage disposal
8 Chemical testing
9 Office
10 Coke plant I
11 Coke & Coal
12 Chemical plant
13 Coal washing
P1 Power plant 1P2 Power plant 2P3 Power plant 3
Villages near Antai
V1 XicunV2 Yi’an
V3 Dongdaqi
V4 Xidaqi
V5 Liujiazhai

Fig. 3. Layout of the facilities of Antai Group

Note1: There are three captive power
plants that consist of seven captive
power units. Construction date of thecokes oven #4 (white part in the Fig.3)
is not yet decided.
Note2: Several residents from thevillages #1-#5 near Antai Group wereinterviewed as the stake-holders of
this project. Please refer to theSection E of this PDD.
Note3: Distance from Antai to near-byvillages is about 1-2 km.
Note4: BF means Blast Furnace.
Note5: Power plant 1 consists ofcaptive power unit #1 and # 2; Power
plant 2 consists of captive power unit
#3, # 4 and #5; Power plant 3 consistsof captive power unit #7 and # 8.

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page 6A.4.2. Category(ies) of project activity:>>
Sectoral scope: (1) Energy industries (renewable - / non-renewable sources).
A.4.3. Technology to be employed by the project activity:>>
Red-hot coke taken out of the coke oven is normally cooled with a water spray in a quench tower, which
is a process known as wet quenching (Coke Wet Quenching: CWQ). A dry quenching (Coke Dry
Quenching: CDQ) equipment, on the other hand, recovers sensible waste heat from red-hot coke, which
accounts for 40 to 50 % of heat loss in a coke oven, as steam, in order to recycle energy.
The proposed CDM project activity is to newly install CDQ equipment, in which the CDQ equipment
will be used in coke quenching, while existing CWQ equipment is used during the suspension of CDQ
equipment operation due to authorities’ inspection, and periodical maintenance works. The proposed
project activity involves a process to convert part of wasted heat to electricity generation2. Moreover, thisfacility allows less leak of particulate during the process of feeding red-hot coke in the oven and ofdischarging the quenched coke. Furthermore it does not produce a massive amount of vapour as CWQ
does.
Brief description of the CDQ technology
Fig. 4 below shows the process flow of a CDQ equipment.
Crane

Coke

Drum

Prechamber

TurbineGas

Cooling
chamber

Generator

HP LP

Primary
Dust Catcher~

Extracted
steam

Gas
Coke
BucketCondenser
BoilerGas Blower
Secondary
Dust Catcher

Fig. 4. Process flow of the CDQ

Coke coming out of coke ovens is commonly quenched with water and waste heat is emitted without any
use. Coke dry quenching is a process by which coke is cooled with low temperature inert gas in a shaftlike cooling unit called cooling chamber in a CDQ plant (max 150 ton-cokes/hour).
2

In this proposed project activity, part of the waste-heat is planned to be used for the steam which will replace
the steam generated elsewhere. In addition, the cokes treated with the CDQ will be used for the reduction of the ironore in the blast furnace of the Antai Group Company and it will improve the efficiency of iron making by decreased
coke/iron ratio, which will also lead to the GHG emission reduction. However we only claim the emission reduction
generated by the replacement of the North China Power grid electricity, which is conservative.

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As shown in the Fig. 4, a coke-bucket transfer car loaded with red-hot coke will be pulled by locomotive
to the bottom of a derrick. An elevator will then send the coke bucket to the top of the CDQ oven. Whenpushed out of the coke oven, the coke has a temperature of about 1,000 °C and with the CDQ it is cooled
to 200-250°C. The gas, through the process of heat exchanges (cooling coke), is heated to 900-950 °C
and expel from upside of cooling chamber. Though the primary dust catcher, thick dusts in the hot gas
are removed; then, the hot gas will be imported to the boiler. By the boiler, the hot gas exchanges its heatwith boiler water and produces steam, produced steam will be imbibed to use as to generate electricity.
The temperature of hot gas out of boiler will be cooled to 200°C, thin dusts in this gas can be collectedagain in the second dust catcher; then, the pressure of cooled and cleaned gas will be increased by thegas-flower, the gas will be insufflated into cooling chamber from chamber’s bottom once again. Between
gas-flower and cooling chamber, a water-pre-heater is set, therefore, the temperature of gas blown into
cool chamber will be decreased to 130°C, and it can increase the efficiency of cooling coke in the coolingchamber.
The hot coke will be unloaded into the CDQ oven by the coke-charging unit. The cooled coke will bedischarged to a conveyer belt and sent to the coke screening system.
Although the technology of the CDQ is quite advanced technology which is obvious from the low
penetration rate in the world, the manufacturer of the CDQ will be the Anshan institute of the coaltechnology which has already installed CDQ facilities to several steel plants in other provinces of China.
Therefore the installation is expected to be done without any technological problem.
Electricity generation by the CDQ
The heated gas is used to produce steam (volume: 74 t/hr, pressure: 4.14 MPa, temperature: 450°C) in aboiler to generate electricity (capacity: 12 MW, amounts: 97.9 GWh/year) with extraction-condensing
turbines.
Mechanical cokes oven plants construction plan in Antai
The plan has been divided into three phases (Table 2, Table 3, Table 4). First phase was the constructionof the two 0.55 million-ton/year capacity of mechanical coke ovens (unit #1 and unit #2 coke oven).
Second phase consists of the addition of two 0.65 million ton/year capacity each. The Antai Group has
already finished the first phase and started the operation of these two coke ovens (1.1 million ton/year in
total) in July 2005. One of the coke ovens in Phase 2 is close to its completion and to start operation inearly 2008. Now, the uncertainty of construction coke oven unit #4 and blast furnace #4 (Phase 3) isincreasing because of the change of coke market. BF and other instruments have been and will be
constructed with coke ovens and CDQ, which will increase the total electricity demand.

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Table 2. General description of coke oven and CDQ
Coke oven
Plant
Production Production
No. Unit
NumberChamber size
capacity
capacity
No. （height×width×length） of kettle（10,000t/y）
（t/h）

I

II

CDQ
Starting
date

1

2.8m×450mm×12m

35

12

40.0

Feb.19992

2.8m×450mm×12m

35

12

40.0

Feb.1999

3

2.8m×450mm×12m

35

12

40.0

Jan.2001

4

2.8m×450mm×12m

35

12

40.0

Jan.2001

1

6.3m×450mm×16m

55

55

62.8

Sep. 20042

6.3m×450mm×16m

55

55

62.8

July 2005

3

6.3m×450mm×16m

65

65

74.2

Jan. 20084

6.3m×450mm×16m

65

65

74.2

Undecided

Cooling
capacity(t/h)

Boilercapacity(t/h)

Generator
capacity(MW)

Starting
date

150 max

74(84max)12

June 2009(Scheduled)

Note: Plant I: existing old coke ovens, Plant II: new mechanical coke ovens.

Table 3. Construction plan of the new mechanical coke ovens, BF and other instruments
Project

Phase 1:
2003-2005

production capacity

Coke oven #1（height 6.3m, 55 kettles）

550,000 t/y

Sep. 2004

Coke oven #2（height 6.3m, 55 kettles）

550,001 t/yJuly 2005

BF #1（inner volume 450 m3）

568,000 t/y

Dec. 2005

BF #2 （inner volume 450 m3）

568,000 t/y

May 2004

Converter #1 （capacity 75t）

942,000 t/y

Jan. 2005

H-rolling （120,000t）

120,000 t/y

Dec. 2008 (Scheduled)

Oxygen production (10,000 m3）

Phase 2:
2007-

Phase 3:

Starting date

Sep. 2005

Coke oven #3 （height 6.3m, 65 kettles）

650,000 t/y

Jan. 2008

Coke oven #4 （height 6.3m, 65 kettles）

650,000 t/y

Undecided

BF #3 （inner volume 450 m3）

568,000 t/y

Dec. 2007

Convertor #2 （Capacity 90t）

1140,000 t/y

Dec. 2007

Rod rolling（800,000t）

800,000 t/y

Dec. 2008 (Scheduled)

BF #4 （inner volume 1080 m3）

Undecided

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Table 4. Output of Antai’s main products in past 3 years and projection of 2008 (as of Nov. 23, 2007)
Unit

2004

2005

2006

2008
(Projection)

10,000t61.56

108.87136.48219.68

Total of plantⅠ

10,000t

47.78

43.21

43.44

47.94

Started at Jan. 2001

Coke oven unit
#1 of plant II

10,000t

13.78

52.27

46.52

55.29

Started at Sep. 2004

Coke oven unit
#2 of plant II

10,000t

13.39

46.52

55.29

Coke oven unit
#3 of plant II

10,000t

Coke oven unit
#4 of plant II

10,000t

Project
Cokes

Milling steel

10,000t

Crude steel

10,000t

Captive power
generation

GWh

61.16

Note

Started at July 2005 and CDQ will
be installed for the cokes from cokeoven unit #2
Started at Jan. 2008 and CDQ will
be installed for the cokes from cokeoven unit #3
Undecided

20.91

100.67

43.26

85.24

168.04

3.68

60.88

174.91126.81258.04548.93

Convertor #1 started at Jan. 2005

Note1: Plant I: old coke ovens, Plant II: new mechanical coke ovens.
Note2: Although the generation of the captive power has increased and will increase in 2008, purchase from the Grid has also
increased and will increase drastically due to the expansion of the business. Total consumption of the electricity is expected toreach 720.15 GWh in 2008.

Existing Cokes Wet Quenching (CWQ) facility in AntaiIn the wet quenching process, red-hot coke from the coke furnace is quenched with water and the steam
generated from the quenching water is discharged to the atmosphere. Heat energy of the red-hot coke isvaporized, and this system releases coke particles in the air. There is a CWQ equipment quenching thecokes from the #1 new mechanical coke oven and #2 new mechanical coke oven (1.1 million ton
cokes/year). Antai cooperation has been building another CWQ for the cokes from #3 coke oven that is tostart its operation in early 2008.
Technology transfer elements of the CDQ installation
In Shanxi province, CWQ are being used in most of the cokes oven operation, which means that Shanxi
province has no past experience of introducing CDQ to cokes oven3. In other words, the above-mentioned
CDQ and power generation technologies are not in practical application in Shanxi province at all.
However, they have been commonly applied in Japan and other provinces such as Shanghai with publicfinancial support and have improved local/global environment and realizing effective energy use.
Therefore, although most of the part of the CDQ will be produced in China, when introducing suchtechnologies to Shanxi province, it will be necessary to provide appropriate training and education
opportunities such as the operation of the control system to realize proper operation. Moreover, Tohoku
University, one of the project participants of this CDM project activity, has been collaborating with the3

The first CDQ in Shanxi province has finalized its contract in 2006 and is planned to operate in 2008. Since
this first CDQ installation in the Province is financed by the Japanese Government’s ODA, the CDQ installation by
the Antai Group would be the first case in the Province under the commercial condition with CDM scheme.

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Antai Group since 2001 focusing on the various energy-related technologies that have contributed to thesignificant improvement of the energy efficiency. Tohoku University has transferred and will continue totransfer the knowledge about cokes/steel production including the CDQ through the use of the CDM
scheme. Moreover, since these technologies have reached a fairly advanced stage of maturation in recent
years, there is little likelihood they will be superseded by superior technology during the project period.
Existing captive power plants and electricity demand/supply in Antai
There are seven existing captive power units which are connected to the North China Grid (Fig.5). As forthe use of these existing captive power units, the Antai Group has been and will use, even with the power
generation from the CDQ.

North China Grid

Mianshan Substation
110kV Line

Antai Group Grid

35kV Line1

50MVA×2
Substation

35kV Line2

20MVA
Substation

31.5MVA×2
Substation

10MVA×2
Substation

CDQ
electricity generator(12MW)

unit #7
unit #8(50MW)

unit#1~ #5(24MW)

Project activity

Existing captive power plants

Fig. 5. Power system network between Antai and North China Grid

Use of steam in Antai
As for the use of the steam, the new coke ovens and other facilities will need 70 t/h of steam for operation
in total. To meet the demand, along with the existing gas boiler, the CDQ will provide 24 t/h of stream.

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Fig.6 below shows the project boundary, proposed project activity and baseline considering the situationof the Antai described above.

Baseline scenario (Current practice)

Proposed CDM project activity

Electricity Import, Captive and CWQElectricity Generation by CDQ

AntaiPower Grid

Hot cokeNorth China
Power Grid

AntaiPower Grid

Hot coke
CO2

North China
Power Grid
CWQ

Captive
Power plants

CWQ

CDQ + Generation

Captive
Power plants

Project boundary

Project boundary
Cooled coke

Cooled cokeFig. 6. Proposed CDM project activity, baseline and project boundary
Note1: This project activity utilizes waste heat from hot coke with the existing capacity and the heat capacity doesn’t change
between baseline scenario and the project activity.
Note2: CWQ operation in the proposed CDM project activity will be undertaken at the time when the CDQ operation issuspended for regular inspection.

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page 12A.4.4. Estimated amount of emission reductions over the chosen crediting period:>>

Table 5. Projection of the emission reduction by the proposed project activity
Years

Annual estimation of emission reductions in tonnes of CO2 e2009 (Jul - Dec)

54,585

2010

136,625

2011

136,625

2012

136,625

2013

136,625

2014

136,625

2015

136,6252016 (Jan - Jun)

68,258

Total estimated reduction (tonnes of CO2 e)
Total number of crediting years
Annual average over the crediting period of
estimated reductions (tonnes of CO2 e)

942,5937
134,656

A.4.5. Public funding of the project activity:>>
Official funding from the Annex I Parties in the Kyoto Protocol, including ODA, will not be allocated tothis project activity.

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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 theproject activity:>>
ACM 0004 “Consolidated baseline methodology for waste gas and/or heat and/or pressure for power
generation”, Version 02, Sectoral Scope: 01, 3 March 2006 (hereafter referred to as the “Version 02 of
ACM0004”), ACM 0004 “Consolidated monitoring methodology for waste gas and/or heat and/orpressure for power generation”, Version 02, Sectoral Scope: 01, 3 March 2006, ACM0002 “Consolidated
baseline methodology for grid connected electricity generation from renewable sources,Version 06 , 19 May
2006 (hereafter referred to as the “Version 06 of ACM0002”) ACM0002 “Consolidated monitoring
methodology for grid connected electricity generation from renewable sources,Version 06 , 19 May 2006 ,“Tool for the demonstration and assessment of additionality, Version 04 November 30, 2007” (hereafterreferred to as the “Version 04 of Additionality Tool”)
B.2.
Justification of the choice of the methodology and why it is applicable to the project
activity:>>
According to the Version 02 of ACM0004, it applies to the project activities that generate electricity fromwaste heat or the combustion of waste gases in industrial facilities.
The methodology applies to electricity generation project activities:• that displace electricity generation with fossil fuels in the electricity grid or displace captive
electricity generation from fossil fuels;• where no fuel switch is done in the process where the waste heat or pressure or the waste gas is
produced, after the implementation of the project activity
As described in the section A of this PDD, the installation of the CDQ in the proposed project activity by
Antai Group which uses the waste heat to generate electricity fits all applicability conditions mentioned
above and application is justified because:(a) CDQ installation with electricity generation is the project activities that displace electricity generation
with fossil fuels both in the North China Power grid and in the captive power plants.
(b) The North China Power Grid is dominated by coal-fired power generation. Captive power plants also
use fossil fuels. Generating sources with zero or low operating costs such as hydro, geothermal, wind,solar, nuclear, and low cost biomass only account for a small amount of the total capacity of the North
China Power Grid.
The methodology covers both new and existing facilities. For existing facilities, the methodology applies
to existing capacity, as well as to planned increases in capacity during the crediting period. If capacity
expansion is planned, the added capacity must be treated as a new facility. Expansion of the capacity forthe cokes treatment by the CDQ is not planned in this CDM project activity.
As mentioned in the footnote #2 (page 6) of this PDD, in this proposed project activity, a part of thewaste-heat is planned to be used for the steam which will replace the steam generated elsewhere.
However we only claim the emission reduction generated by the replacement of the electricity, which isconservative.

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B.3.
Description of the sources and gases included in the project boundary>>
Table 6 below shows the sources of the project boundary described previously in the section A4.3. andFig.6.
Table 6. Overview of emissions sources included in or excluded from the project boundary
SourceBaseline

Grid electricity
generation

Captive power
plants electricity
generation

Electricity
consumption by the
CWQ operation

Project
Activity

On-site cokes
consumption due tothe CDQ operation

Electricity
consumption by the
CDQ operation

Electricity
consumption by the
CWQ operation

Fuel consumption to
produce steam for
CDQ start-up

Gas

Included/
Excluded

CO2

IncludedMain emission source

CH4

Excluded

Excluded for simplification. This is conservative

N2O

Excluded

Excluded for simplification. This is conservative

CO2

IncludedMain emission source

CH4

Excluded

Excluded for simplification. This is conservative

N2O

Excluded

Excluded for simplification. This is conservative

CO2

Included

Minor emission source

CH4

Excluded

Excluded for simplification.

N2O

Excluded

Excluded for simplification.

CO2

Included

Minor emission source (Note1)

CH4

Excluded

Excluded for simplification.

N2O

Excluded

Excluded for simplification.

CO2

Included

Minor emission source

CH4

Excluded

Excluded for simplification.

N2O

Excluded

Excluded for simplification.

CO2

Included

Minor emission source

CH4

Excluded

Excluded for simplification.

N2O

Excluded

Excluded for simplification.

CO2

Included

Minor emission source

CH4

Excluded

Excluded for simplification.

N2O

Excluded

Excluded for simplification.

Justification/Explanation

Note1: A CDQ equipment could emit CO2 as approx. 0.3% of cokes treated with the CDQ due to the combustion depending on
the condition it is operated4. Since the amount of sensible heat to be recovered will be much larger than GHG emission fromcombusted powder coke, GHG reduction can be achieved through the project as a whole.
Note2: Since there are no utilization in the whole process, other type of GHGs (HFCs, PFCs, SF6) will not be emitted either inthe baseline nor project activity.
Note3: During the CWQ operation, there will be CO2 emission due to the reaction between cokes and quenching water. However,
we can dismiss the emission because we are conservative and will not claim it as a baseline emission.

4

Nakajima et al. “Installation and operation of the CDQ at the Fukuyama Cokes oven No.4”, NKK Technical
Report, No.115, p.48-56, 1986.

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B.4.
Description of how the baseline scenario is identified and description of the identified
baseline scenario:>>
As mentioned previously, the baseline is determined by using the Version 02 of ACM0004 as follows.
Version 02 of ACM0004 methodology specifies following conditions and options regarding the baseline
scenario and the proposed project activity.
The baseline scenario alternatives should include all possible options that provide or produce
electricity for in-house consumption and/or sale to grid and/or other consumers. The project
participant shall exclude baseline options that:• do not comply with legal and regulatory requirements; or• depend on key resources such as fuels, materials or technology that are not available at the projectsite
The project participant shall provide evidence and supporting documents to exclude baseline options
that meet the above-mentioned criteria.
Considering the Version 02 of ACM0004 methodology, possible alternative scenarios in absence of the
CDM project activity would be as follows:(a) The proposed project activity not undertaken as a CDM project activity;(b) Import of electricity from the grid;(c) Existing or new captive power generation on-site, using other energy sources than waste heat
and/or gas, such as coal, diesel, natural gas, hydro, wind, etc;(d) A mix of options (b) and (c), in which case the mix of grid and captive power should be specified(e) Other uses of the waste heat and waste gas;(f) The continuation of the current situation, whether this is captive or grid-based power supply (if notalready included in the options above).
Examination of the each baseline option candidate(a) The proposed project activity not undertaken as a CDM project activity;
This can be a candidate of the baseline option of the proposed CDM activity.
(b) Import of electricity from the grid;
The Antai Group has increased the demand of the electricity and has increased the import fromthe grid. In addition, Antai Group has been using the CWQ for quenching the cokes and will use
to meet the demand of the cokes quenching and to substitute the CDQ during its suspension due
to the maintenance check. Therefore this is status quo and it can be a candidate of the baseline
option.

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page 16(c) Existing or new captive power generation on-site, using other energy sources than waste heat
and/or gas, such as coal, diesel, natural gas, hydro, wind, etc;
As mentioned in the section A, there are seven existing captive power units. As for the use of
these existing captive power plants, the Antai Group has been and will use all existing captive
power plants, even with the power generation from the CDQ, to meet the increasing demand forthe electricity. Since the generation cost is much cheaper than price of the electricity imported
from the grid, it is rational to continue to use these captive power plants. Therefore, using
existing captive power plants is possible baseline scenario.
However, as for the possibility of building new captive power plant, the Chinese government has
been implementing a policy to reduce the number of the small coal-fired power plants since 1996.
Since there are no supply of natural gas and no possibility to introduce renewable energy such as
solar, wind, small hydro in the region, coal is the only energy source for the fugitive power plant.
Therefore building the new captive power plant is against the policy of the Chinese governmentand cannot be a candidate of the baseline option.
(d) A mix of options (b) and (c), in which case the mix of grid and captive power should be specified;This is possible baseline scenario. As for the weights, please refer to the section B.6.1.
(e) Other uses of the waste heat and waste gas;
As mentioned both in the footnote #1 and in the section B.2. of this PDD, in this proposed project
activity, a part of the waste-heat is planned to be used for the steam which will replace the steam
generated elsewhere. However we only claim the emission reduction generated by the
replacement of the North China Power Grid electricity, which is conservative. From this reason,
this option is not considered as a viable option in this PDD.
(f) The continuation of the current situation, whether this is captive or grid-based power supply (if notalready included in the options above).
This option can be included in (b) and (c).
Therefore, in view of CDQ installation in Antai Group, following two options are available for project
participants as investment options.
Option I：Installation of the CDQ equipment and auxiliary equipment such as turbines, in addition to
currently existing CWQ equipment5 ; corresponds to the scenario (a) above.
Option II：Import of the electricity from the grid and use of existing facility (CWQ and captive power
plants) which is the continuation of the current situation (current practice); corresponds to the scenario(d).
We have chosen the Option II as a baseline scenario considering the result of its additionality checkdescribed in B.5 below.
5

Coke ovens and quenching apparatus are generally operated continuously. Therefore, CWQ equipment must
be installed with CDQ equipment to back up CDQ equipment in case of operation suspension during its periodical
inspection or maintenance works, and for emergency.

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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 CDM project activity (assessment
and demonstration of additionality):>>
We use the ‘Tool for the demonstration and assessment of additionality, Version 04, November 30, 2007’(“Version 04 of Additionality Tool”) to demonstrate the additionality of the proposed project.
(1) Step 1: Identification of alternatives to the project activity consistent with current laws
and regulations(1-a) Sub-step 1a: Define alternatives to the project activity
We have already defined the alternatives in the previous section B.4 of this PDD.
(1-b) Sub-step 1b: Enforcement with applicable laws and regulations
Each of the above two options complies with the Chinese laws and regulations.
(2) Step 2: Investment Analysis
In the absence of CDM, alternative Option I is not economically attractive compared with alternative
Option II and is therefore considered to be less plausible. The construction of the proposed CDQ
project requires a large investment and the annual maintenance cost is high. Further information on thefinancial analysis and sensitivity analysis is provided below.
(2-a) Sub-step 2a: Determine appropriate analysis method
According to the Tool for the demonstration and assessment of additionality, the project may employ asimple cost analysis, investment comparison analysis, or benchmark analysis.
When the CDQ project is completed, the CWQ system will become standby equipment to back up the
CDQ ovens during repair and maintenance. The project can generate revenue from electricity sales, so
the simple cost analysis is not applicable. As there is more than one alternative baseline scenario,
option 2 in the Tool for the demonstration and assessment of additionality is not applicable. Therefore,
the project will undertake a benchmark analysis, identifying the internal rate of return (IRR) as theindicator to judge whether the proposed project is financially attractive.
(2-b) Sub-step 2b: Apply benchmark analysis
According to the Chinese government, the benchmark IRR for an investment project in the iron andsteel industry is 12% (Table 8).
(2-c) Sub-step 2c: Calculation and comparison of financial indicators
Table 7 shows the parameters used to calculate IRR and Table 8 show the result of the calculation.

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Table 7. Major parameters for financial analysis
Item

Quantity

Installed power capacity

12 MW

Total fixed investment

187.79 Million RMB

Annual operating cost

31.07 Million RMBElectricity generated

97.92 GWh/ year

Electricity consumed

5.68 GWh/ year

Price of electricity generated

284.62 RMB/MWh

Price of electricity consumed

538.43 RMB/MWh

Tax rate of value added

17%

Tax rate of income

33%

Lifetime of project

21 yearCrediting period of CERs

20 year

Expected price of CERs

10 $/t-CO2

Source: “Feasibility Study Report of CDQ and Cogeneration of Antai Group”, ACRE Coking & Engineering
Consulting Corporation, MCC. 2004. Both ‘period of CERs’ and ‘price of CERs’ are expected figure made forthis PDD.
Note: Amount of the electricity generated has increased from original 84 GWh/year (figures in the F/S report by
ACRE Coking & Engineering Consulting Corporation mentioned above) to 97.92 GWh/year due to the change ofthe specification of the CDQ. This change will make IRR without CERs from 8.21% to10.5% that is the number
still below the benchmark (Table 8, Table 9).

Table 8. Comparison of the IRR with and without CERs revenue
Item

Without CERs

BenchmarkWith CERs revenue

IRR of whole investment

8.21%

12%

13.25%

Note: Benchmark figure is from “Economic Evaluation Method and Parameters of Construction Project”, NDRC
and Ministry of Construction, China Planning Publishing, 2006, p.202. As for the detail on the IRR calculation,please refer to the Appendix of this PDD.

(2-d) Sub-step 2d: Sensitivity analysis
Sensitivity analysis will include the economic impact of the following three parameters:
1) Total fixed investment;2) Variable cost;3) Electricity and steam generated
When the parameters vary in the range of -10% to +10%, the IRR (without CER) will change
accordingly. Variations in IRR are shown in the following Table 9.

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Table 9. The impact of parameters changes on the IRR
Change of
Sensitivity factor

-10%

-5%

0

5%

10%

Total fixed investment

9.35

8.76

8.21

7.71

7.23

Electricity and steam generated

6.79

7.52

8.21

8.88

9.54

Variable cost

9.16

8.69

8.21

7.72

7.21

The above numbers show that the IRR is maintained to be less than the benchmark of 12% while thethree parameters fluctuate in the range of -10% to +10%. Since the project is not economicallyattractive without CER revenue, the project owner will not invest in the CDQ systems unless the
project is developed under the CDM. This demonstrates one aspect of the project’s additionality.

(3) Step 3: Barrier Analysis
Investment Barriers
Huge initial capital investment
Option I needs huge initial investment because of the construction of industrial facilities. These are theirreversible investment with a fair amount of unpredictable risk. On the other hand, for the Antai Group,
the grid electricity is not only the economically feasible power source in the long run but also requires
no capital investment at any time. This option, import of the electricity, also does not require any inhouse expertise to operate and maintain.
Further, the Antai Group meets all legal and regulatory requirements to be able to purchase electricity
on a continual basis. Agreement on purchase of electricity with the grid requires minimal formalities
and does not pose a barrier. Therefore, Option II, import of the electricity from the local grid would
have less preventive factors than Option I.
Low profitability
Recently there has been a tremendous increase of the coke price and there have been many more
attracting investing opportunities in Shanxi province such as cokes production which brings cash
revenue. Actually the Antai Group needs to have focused its investment on constructing the cokes
production facility because of the hike of the coke price. It is a common business practice to get the
low-hanging fruits first and not to diverse its investment money on other relatively lower profitability
project. Therefore, these factors prevent the Option I, the CDQ installation, from being actuallyrealized.
Negative incentive
One of the co-benefits of the CDQ installation is that the CDQ will reduce water contents in cokes thatwill make a positive economic impact on the steel production. However, in case of selling cokes fromthe CDQ directly to external buyers, there may be a negative economic impact. As the CDQ removes
water, it will make the specific gravity of the coke smaller and the weight less, so the sales price of thecoke will be less and the business less profitable. Since there is a possibility that the cokes treated with
the CDQ will not be used internally for steel making but be sold to external buyers, depending onchanges in the business environment of cokes production and steel making, drying the cokes works as a

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negative incentive for the installation of the CDQ. Therefore it can be said that the Antai Group hasless incentive to install the CDQ equipment compared to the other state-owned big companies
producing mass volume of steel which will consume all of the cokes treated with the CDQ internally.
Difficulty in obtaining the bank loan
The external investor to this project activity (such as bankers of financial institutes) may perceive risks
to their investment due to unfamiliarity of the technology that would be used to generate power fromwaste heat utilization. In addition, the management may also feel that the investment required for the
project activity has associated risks since the project activity is the “first of its kind” in the region.
Moreover, the coal industry sector in China is under reform. This has meant that it is difficult for
financial institutions to extend project finance loans for high-risk projects of coal industry in general.
Project developer, therefore, need to resort to balance sheet financing which limits their ability todevelop projects without additional revenue from CDM. Therefore, these factors prevent the Option I,
the CDQ installation, from being actually realized.
Technology barrier
The preparation and operation of the CDQ technology can be more complicated compared to the CWQ
equipment. It is also possible that CDQ installation that are located in China’s more remote areas,
especially in Shanxi province, will face technological barrier due to the more complicated civil works
and operation skills required, which prevents the Option I, the CDQ installation, from being actuallyrealized.
(4) Step 4: Common Practice Analysis
In China, from the year 1997, CDQ installation were started to be established and operated with the
public financial support. According to the information from several employees working for Japanese
steel companies, the operating state of the CDQ in the whole China is 29 units (currently in operation)in 2005, in which the installation without public financial support is less than half (Table 10).

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Table 10. Status of the CDQ installation in China (as of 2005)
Name of the steel
company

Name of the province

Company status

Number of units
in operation

Public financial
supportShougang

Beijing

State-owned

2

Yes

Wuhan

Hubei

State-owned

2

No

Xiangtan

Hunan

State-owned

1

Yes

Baoshang

ShanghaiState-owned

12

Yes

Maanshan

AnHei

State-owned

2Yes

Echeng

Hubei

State-owned

1

Yes

AnshanLiaoning

State-owned

2

unknown

Tangshan

Hebei

State-owned

2

unknown

Jiangsu Shagang

JiangsuState-owned

3

unknown

Benxi

Liaoning

State-owned

1

unknown

Tonghua

Jilin

State-owned

1

unknown

Source: Result of our survey made by interviewing employees working for Japanese and Chinese steel companies.

As shown in Table 10 above, the companies that have already installed or are now preparing the
installation are all state-owned big steel companies.
Currently, the Chinese government has a scheme to support the installation of the CDQ by providing
the subsidy. However only several companies have been eligible for this subsidy scheme and AntaiGroup is not supposed to receive this financial support in the near future mainly because it is not a big,state-owned company6.
Table 11 below shows the status of the CDQ penetration in China. Although larger companies have ahigher penetration rate, the penetration rate is very small (3%) in the case of small and medium-sizedcompanies (< 5 million ton annual steel production). Therefore, it is clear that, despite more than ten
years of governmental support, the CDQ installation is still in a nascent stage in the case of small to
medium-seized companies, such as the Antai Group which just currently completed the construction ofsteel furnace and started making the crude steel with annual production of just 1.5 million ton, and only
a tiny percentage of CDQ potentials has been successfully developed and explored in this category.

6

Strictly speaking, due to the privatization and reform ongoing in China, the relationship between the company
and the governments is changing and taking many different forms. Having said that, still almost all those big steel
companies are state-owned in the past and retain strong relationships with both local and central governments.

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Table 11. Penetration rate of the CDQ in China (as of 2005) *Steelproduction(mil.ton)

Number ofcompany

Total steel
production in 2004
(mil.ton/year)

>10

2

33

5-10

13

<5
Total

Estimated coke
consumption(mil.ton/year)

Estimated CDQ
treatment(mil.ton/year)***Estimated CDQ
penetration rate
(%)

13

9.8

76

90

35

12

35

NA**

150

69

2.2

3

NA

273

117

24.3

21

Source: Result of our survey made by interviewing employees working for Japanese and Chinese steel companies. Original datais quoted from China Steel Industry 2005 and Statistics of the China Steel Industry 2004.
Note: Coke consumption is estimated by using the following parameters.
Iron-steel ratio: 0.92 (Based on total production volume in China)
Coke-iron ratio for enterprises with production capacity exceeding 2 million ton: 0.43 (average of key enterprises)
Coke-iron ratio for enterprises with production is less than 2 million ton: 0.57 (average of all iron making enterprises)
Only CDQ facilities of iron and steel producers are counted. CDQ facilities of independent coke producer are not counted.
* CDQ facilities in operation as of August 2005.
** Total of 56 member companies and non-member companies of China Iron and Steel Association.
Number of non-member companies is not available.
*** CDQ capacity× number of facility× 0.95 (estimated average operating ratio)

Otherwise, in the recent report of IEA (International Energy Agency), it is said that the penetration rateof CDQ in China is about 25%. (IEA（2007）“Tracking Industrial Energy Efficiency and CO2
Emissions: In support of the G8 plan of Action”.)
Moreover, in Shanxi province, as previously mentioned in the Section A.2 and A.4.3, there exists only
one CDQ project planned with the use of Japanese Official Development Assistance (ODA), which
will start operation in 2008. Therefore, this proposed CDM project activity will become the second
CDQ installation in the Shanxi Province and the first one by a private small/medium size company
without public financial support, such as the Japanese ODA and Chinese government’s subsidy in theProvince.
(5) Additional information
The CER revenue represents a significant source of funds for the project implementation. Successful
registration of the project activity will contribute to installation of advanced technology of developed
countries to Antai, to acquisition of personnel such as managers and engineers at international level,
and to increase the level of energy efficiency improvement as well as environmental technology. The
approval and registration of the project activity would clearly alleviate the barriers discussed in the
Step 3 of the additionality test, which enables it to be undertaken as a CDM project activity. In addition,
CDM project activity could only be realized with the financial and technical help which would lower
the barriers. Especially expected revenue from CERs would facilitate large investment decision for theenergy efficiency measures not for the main production line.
Therefore the carbon finance is very important factor in the decision making of the Antai Group. With
regard to the CDM registration, we provide following information which describe: 1) Legal andRegulatory Requirement and 2) Policy additionality.

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Legal and Regulatory Requirement
In July 2005, The Chinese government published its policy on the CDQ, which say that newly
constructed coke oven should install the CDQ at the same time. However, these policies are noteffective enough to force the Antai Group to install the CDQ because of following reasons:(a) The Antai Group has been investigating the possibility of the CDM activity long before thegovernmental policy announcement in 2005.
(b) It is not the “law” but the “policy” which has been published just recently by the Chinese
government and, generally speaking, in China, the “policy” only provides principles andguidance but lacks clear detailed contents of the rule. In case of the “policy”, relevant
government departments need to formulate specific measures to ensure the policy can be carriedout.
(c) The Antai Group’s construction plan of the coke oven has been divided into two phases. First
phase was the construction of two 0.55 million-ton/year capacity of coke ovens. Second phaseconsists of the addition of 0.55 million ton/year capacity. The Antai Group has finished the firstphase (1.1 million ton/year in total) and has started the second phase. The local authority has
asked to install the CDQ with the construction of the cokes oven in the second phase. However,mainly due to the lack of capital needed and weak enforcement of the order by the local authority,
Antai Group will not install the CDQ without the CER revenue. In addition, there is a very large
uncertainty regarding the construction of another coke oven second phase.
(d) The Jiexiu City has no plan to implement concrete policies, such as favourable treatment
measures or penalties, to realize the CDQ introduction at the Antai Group.7(e) As mentioned previously, Antai Group is a purely private company and not the state owned
company. Therefore, the Antai Group makes own investment decision purely based on theeconomic rationale. Unlike many of other state-owned companies, the management of the AntaiGroup is quite independent from the local administration.
EB rule on the policy additionality
There is the CDM EB Decision that “national and/or sectoral policies or regulations that give
positive comparative advantages to less emissions-intensive technologies over more emissionsintensive technologies… that have been implemented since November 2001… may not be taken into
account in developing a baseline scenario” 8. Therefore it can be said that the current policy does not
influence the baseline determination of this CDM project activity.

7

From the interview with the Jiexiu City Economic and Trade Council (January 2003).

8

http://cdm.unfccc.int/EB/Meetings/0 /eb repan3.pdf

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Conclusion on the baseline scenario determination and additionality demonstration
The above analysis using the Version 02 of ACM0004 and Version 04 of Additionality Tool provides
clear evidence that the registration and approval as a CDM project activity allows the CDQ project toovercome barriers that are currently proving prohibitive to the installation of the CDQ. It is also clarified
that the current practice (import of the electricity from the grid) is to be considered as the baseline option.

B.6. Emission reduction
B.6.1. Explanation of methodological choices:>>
The following paragraphs describe the way in which the consolidated baseline methodology Version 02
of ACM0004 can be applied to the project.
1) Application of the Version 02 of ACM0004 to the project
According to the Version 02 of ACM0004, Baseline emissions are given as:
BEy = EGy × EFelectricit, y(1)where:
BEy:

Baseline GHG emissions (kt-CO2/y) during the year y

EGy:

Net quantity of electricity supplied by the project activity during the year yin GWh (This is the sum of the net electricity generation by the CDQ andelectricity self-consumption by the CWQ in the baseline scenario)

EFelectricity, y:

CO2 emission factor for the electricity displaced due to the project activity
during the year y (t-CO2/MWh).

In case of the proposed project activity, baseline scenario is determined to be grid power supply and theEmissions Factor for displaced electricity is calculated as in ACM0002 Version 06 , 19 May 2006
(hereafter referred to as the “Version 06 of ACM0002”) (please refer to B.4. of this PDD for thebaseline option determination).
In determining the net quantity of electricity replaced, it is necessary to add the net electricity
consumption by the CWQ. Therefore the Net quantity of electricity which can be equal to theelectricity replaced by the project activity is:
EGy = Net quantity of electricity supplied by the project activity= Net electricity generation by the CDQ + electricity self-consumption by the CWQ= [Wck, CDQ × (pCDQ - yCDQ) + (Wck, CDQ + Wck, CWQ) × yCWQ] × 10-3
= EGCDQ - ECDQ + ECWQ × (Wck, CDQ + Wck, CWQ)/Wck, CWQ
where:(2)

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Wck, CDQ:

Cokes amounts treated with the CDQ (kt-coke/y)Wck, CWQ:

Cokes amounts treated with the CWQ during the suspension and operation of
the CDQ (kt-coke/y)pCDQ:Electricity generation coefficient of CDQ equipment (kWh/t-coke)yCDQ:

Electricity self-consumption coefficient of CDQ equipment (kWh/t-coke)yCWQ:

Electricity self-consumption coefficient of CWQ equipment (kWh/t-coke)

EGCDQ

Electricity generated by the CDQ equipment (GWh/y)ECDQElectricity self-consumed by the CDQ equipment (GWh/y)ECWQElectricity self-consumed by the CWQ equipment (GWh/y)In the actual measurement through monitoring, the power consumption in the auxiliary equipment of
CWQ, such as circulation pumps, ventilation pumps, etc. is determined by the monitoring of CWQ
operation performance during the stoppage of CDQ9. Then, using the actual values obtained, theintensity of power consumption against coke production is calculated, which will be used along with
the GHG emission factor of baseline to calculate the GHG emissions.
As shown in Version 02 of ACM0004, when the baseline scenario includes both captive and grid
power, the emissions factors for the baseline are the weighted average of the emissions factors for bothgrid power and captive power:
EFelectricity,y = wgrid × EFgrid,y + wcaptive × EFcaptive,ywhere:

9

EFgrid,y

CO2 baseline emission factor for the grid electricity displaced due to theproject activity during the year y (t-CO2/MWh)

EFcaptive,yCO2 baseline emission factor for the captive electricity displaced due to theproject activity during the year y (t-CO2/MWh)wgrid

Share of facility electricity consumption supplied by grid importover the last 3 years(%)

wcaptive

Share of facility electricity consumption supplied by captive power plantover the last 3 years (%)

Strictly speaking, there are two kinds of yCWQ. First is the yCWQ in which the CWQ has been used without the
CDQ. Second is the yCWQ in which the CWQ will be used as a temporary substitute of the CDQ. Former yCWQ canbe monitored simultaneously with the operation of the CWQ. Since CWQ is being operated and will be operated
continuously due to the imbalance between the high cokes amounts to be quenched and low CDQ capacity in this
proposed project activity, we can use the existing data of the CWQ operation for the latter yCWQ.

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page 262) CO2 emission factor of the North China Power Grid
The CO2 emission factor of the North China Power Grid (EFgrid) was calculated based on Version 06 of
ACM0002. Baseline emission factors of operating margin (EFOM,y) and build margin (EFBM,y) were
calculated based on the data of the North China Power Grid, which include installed capacity,
electricity output and consumption of different fuels of all plants within the North China Power Grid.
Along with this calculation, the baseline emission factor (EFgrid, y) is calculated as a combined margin(CM) of EFOM,y and EFBM,y, according to the following three steps.
Step 1. Calculate the Operating Margin Emission Factor (EFOM,y)According to the Version 06 of ACM0002, calculation of the EFOM,y is based on the one of the four
following methods.
(a) Simple OM, or(b) Simple adjusted OM, or(c) Dispatch data analysis OM, or(d) Average OM
Each method is described and discussed as below.
Method (a): Simple OM
The simple OM method only can be used when low-cost/must-run resources constitute less than 50%
of total amount grid generating output 1) in the five most recent years, or 2) by taking into accountlongterm normal for hydroelectricity generation. According to the China Electric Power Yearbook
2004, among the total electricity generation in 2003, the grid where the proposed project connected
into has the amount of hydropower output accounting for about 1.17%, and others accounts for about
0.06 %, far less than 50%. Thus, the method (a) Simple OM can be used to calculate the baseline
emission factor of operating margin (EFOM,y) for the proposed project.
Method (b) : Simple adjusted OM
The simple adjusted OM needs the annual load duration curve of the grid. In China, the detailed data ofdispatch and fuel consumption are taken as confidential business information by the grid company andthe power plants, therefore those data are not publicly available. Therefore, it is difficult for this CDM
project activity to adopt Method (b) for the calculation of the baseline emission factor of operating
margin (EFOM,y).
Method (c): Dispatch data analysis OM
This method (c) cannot be adopted for the proposed project because of unavailability of the dispatch
data of the North China Power Grid, which is similar reason as method (b).
Method (d) : Average OM
Among the total amount of electricity output in 2003 of the North China Power Grid where theproposed project connected into, the hydropower accounts for far less than 50%, so method (d) is notsuitable for the proposed project.
In conclusion, Method (a) Simple OM is the only reasonable and feasible method among the four
methods for the calculation of the OM emission factor (EFOM,y) of the proposed project.

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In accordance with Version 06 of ACM0002, the Simple OM emission factor (EFOM, simple, y) is
calculated as the generation-weighted average emissions per electricity unit (t CO2/MWh) of all
generating sources serving the system, excluding those must-run power plants with lower-operating
costs.
For the convenience of developing qualified projects and projects in priority areas with high efficiency,
the Office of NCCCC, NDRC of the Chinese Government recently worked out China’s regional gridbaseline emission factors based on the EB approved consolidated methodology ACM0002 for CDM
project owners10. Based on this information, the Simple OM Emission Factor (EFOM, simple, y) of theNorth China Power Grid is calculated as 1.1208 t-CO2e/MWh.
Step 2. Calculate the Build Margin Emission Factor (EFBM,y)The Office of NCCCC, NDRC of the Chinese Government has also worked out China’s regional gridbaseline Build Margin emission factors based on the EB approved consolidated methodology
ACM0002 for CDM project owners. Based on this information, the Build Margin Emission Factor is0.9397 t-CO2e/MWh.
Step 3. Calculate the baseline emission factor EFgrid,y for the grid electricity
Based on Version 06 of ACM0002, the baseline emission factor EFy was calculated as the weighted
average of the OM emission factor (EFOM, y) and the BM emission factor (EFBM, y), where the weights
wOM and wBM, by default, were 50% (i.e., wOM = wBM = 0.5)11, and EFOM, y and EFBM, y were calculated
as described in Steps 1 and 2 above and were expressed in t-CO2e/MWh. This Step 3 means that, in theabsence of the proposed project activity, the electricity generation of the proposed project would be
provided by other generating sources in the grid through the operation and expansion of the electric
sector.
From the step 1 and step 2 above, the baseline combined emission factor= (1.1208 +0.9397) / 2 = 1.03025 (t-CO2e/MWh).
3) CO2 emission factor of the captive power plants
Table 12 below shows the caloric value and carbon factor of the fuel for power plants of Antai. By
using these numbers and fuel consumption pattern shown in Table 13 gives emission factor of thecaptive power plants as 2.0637 (t-CO2/MWh).

10

For the detailed information of calculation, data sources and explanation, please refer to the Bulletin Board in
the website of the Chinese CDM DNA (http://cdm.ccchina.gov.cn/WebSite/CDM/UpFile/File1364.pdf) (as of
Aug.9, 2007).

11

Although the Version 06 of ACM0002 allows alternative weight, we have chosen the 0.5 because theproposed project activity is neither Solar PV projects nor the project with suppressed demand of electricity.

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Table 12. Emission factor of the fuel for captive power plants
Fuel type

Carbon emission factor(t-CO2/kNm3, t)

COG (Coke Oven Gas)

0.7258BFG (Blast Furnace Gas)

0.7543

CW (Coal Waste)

1.3315

Source: Calculation by the Antai group with actual analysis of the carbon contents in each substance as follows;
EFCOG : Carbon emission factor of COG（t-CO2/kNm3）= (%CO + %CO2 + %CH4 + 2×%C2H4) /100×44/12
EFBFG :Carbon emission factor of BFG（t-CO2/kNm3）= (%CO + %CO2 ) /100 ×44/12
EFCW :Carbon emission factor of CW の CO2（t-CO2/t）= %C/100 ×44/12

Note: In the volatile, CO, CH4 and other carbon-containing material is contained, as the data of composition cannot
be obtained, they treated as zero carbon content, which is conservative.

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Table 13. Captive power plants generation in past 3 years of Antai (2004 - 2006)
Year

2004

Unit
No.

Capacity ofStarting date generator
(MW)

BFG
(kNm3)

CW(t)

Carbon emission
factor(kg-CO2/kWh)1998.043

22.28

24,46018,002

1.4064#2

1998.073

9.39

10,314

7,597

1.4069#3

2001.096

27.66

33,1911.5978#4

2002.01

6

41.34

49,602

1.597818

100.67

34,77425,60082,793

1.5376#1

1998.04

3

22.08

21,36029,3961.7061#2

1998.073

22.27

21,54429,6451.7060#3

2001.096

35.35

42,4191.5978#4

2002.01

6

45.75

54,9001.5978#5

2005.11

6

1.36

1,313

1,810

24

126.81

44,21760,850

Total

2006

COG
(kNm3)

#1

Total

2005

Fuel Consumption

Generated
electricity(GWh)1.706997,3191.6368#1

1998.04

3

22.21

9,801

75,9232.8988#2

1998.073

23.52

10,37980,4022.8988#3

2001.096

29.41

35,1101.5895#4

2002.01

6

35.02

41,9251.5940#5

2005.116

36.74

16,173

125,283

2.8916#7

2006.0425

111.1445,404

351,7152.683549

258.0481,758633,324

77,0352.4788161.8453,583239,925

85,7162.0637

Total
Average of 3 years(2004 – 2006)

Source: Calculation by the Antai group.
Note1: Carbon emission factor in Table 13 was calculated by using the number of carbon emission factor for thecaptive power plants in Table 12 and generated electricity & fuel consumption in Table 13.
Note2: As of Jan. 2008, there is another captive power unit #8 which started in 2007.

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4) CO2 emission factor of the baseline
As mentioned in previous section, when the baseline scenario includes both captive and grid power, theemissions factors for the baseline are the weighted average of the emissions factors for both grid
power and captive power. Using the data on the supply and demand of electricity in Antai (Table 14),weights can be calculated as shown in Table 15 below. Therefore, with these figures, emission factorof the baseline can be calculated as follows.
EFelectricity,y = wgrig × EFgrid,y + wcaptive × EFcaptive,y= 0.46 × 1.03025 + 0.54 × 2.06372= 1.5931

Table 14. Supply and demand of electricity (2004 - 2006)
Data
Capacity of captive power generation

unit

2004

2005

2006

Average

MW

18

24

74

38.70

Electricity from the Captive power plants

Ecaptive

GWh

100.67126.81258.04161.84

Electricity from Grid (Purchased electricity)

Egrid

GWh

41.08

112.90252.03135.34

Power consumption

Ecaptive+EgridGWh141.75239.71510.07297.18Weight of captive power generation

wcaptive

―

0.71

0.53

0.51

0.54

Note: wcaptive = Ecaptive/(Egrid + Ecaptive)

Table 15. Ratio of input and captive power and emission factor
WeightEmission factor（t-CO2/MWh）

North China Power Grid

0.46

1.03025

Captive power generation in Antai

0.54

2.06372

Note: Emission factor of North China Grid is the average of 2003-2005.

The emission reduction ERy by the project activity during a given year y is the difference between thebaseline emissions through substitution of electricity generation with fossil fuels (BEy) and projectemissions (PEy), as follows:
ERy = BEy – PEy(3)

where:
ERy:

Emissions reductions of the project activity
during the year y in kilotons of CO2

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BEy:

Baseline emissions due to displacement of electricity
during the year y in kilotons of CO2

PEy:

Project emissions during the year y in kilotons of CO2

PE can be calculated as follows:
PEy= Wck,CDQ × COEFCDQ /1000 + (Wck,CWQ × yCWQ) × EFelectricity,y /1000 + PEstart-up= Wck, CDQ × COEFCDQ, y /1000 + ECWQ × EFelectricity, y + PEstart-up(4)

where:
Wck, CDQ:

Cokes amount treated with the CDQ (kt-coke/y)

COEFCDQ, y:

CO2 emissions factor from powder cokes combustion
in CDQ equipment (kg-CO2/t-coke)

Wck, CWQ:

Cokes amounts treated with the CWQ during the suspension of the CDQ
operation (kt-coke/y)yCWQ:

Electricity self-consumption coefficient of CWQ equipment (kWh/t-coke)

EFelectricity, y:

CO2 emission factor for the electricity displaced due to the project activity
during the year y (t-CO2/MWh).

PEstart-up:

Project emission for CDQ start-up (kt-CO2/y)

ECWQ:Electricity self-consumed by the CWQ equipment (GWh/y)As for the PEstart-up, Antai is supposed to use the COG (Coke oven gas) for start-up of the CDQ. Therefore,
PEstart-up, can be calculated as follows.
PEstart-up = QCOG × EFCOG /1000
where:Q COG:

Coke oven gas for CDQ start-up (kNm3)

EFCOG:

Carbon emissions factor of coke oven gas (t-CO2/kNm3)(5)

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

Data / Parameter:

COEFCDQ

Data unit:

kg-CO2/t-coke

Description:

CO2 emissions factor from powder cokes combustion in CDQ equipment

Source of data used:

A CDQ equipment could emit CO2 as approx. 0.3% of cokes treated with the CDQ due
to the combustion depending on the condition it is operated. COEF can be calculatedwith this assumption (0.3%) and cokes amount treated with the CDQ.

Value applied:

9.9

Justification of the choiceof data or description of
measurement methods
and procedures actuallyapplied :Please refer to the section B.3.

Any comment:

NA

Data / Parameter:

EFelectricity

Data unit:

t-CO2/MWh

Description:

CO2 emission factor for the electricity displaced due to the project activity

Source of data used:

Calculated as a weighted sum of the emission factors of Grid and captive power plants

Value applied:

1.5931

Justification of the choiceof data or description of
measurement methods
and procedures actuallyapplied :Please refer to the section B.6.1.

Any comment:

NAPROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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Data / Parameter:

Q COG

Data unit:

kNm3

Description:

Coke oven gas for CDQ start-up

Source of data used:

Specific value of the type of the CDQ to be installed to Antai

Value applied:148

Justification of the choiceof data or description of
measurement methods
and procedures actuallyapplied :Please refer to the section B.6.3.

Any comment:

NA

Data / Parameter:

EFCOG

Data unit:

t-CO2/kNm3

Description:

Carbon emissions factor of coke oven gas

Source of data used:

Data calculated by the Antai

Value applied:

0.7258

Justification of the choiceof data or description of
measurement methods
and procedures actuallyapplied :Please refer to the section B.6.1 (Table.12) and B.6.3.

Any comment:

NAPROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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B.6.3. Ex-ante calculation of emission reductions:>>Ex-ante calculation of emission reductions consists of four parts: 1) calculation of the baseline emission,2) calculation of the project emission, 3) calculation of the leakage emission and 4) calculation of theemission reduction.
(1) Calculate the baseline emission: BEy(1-1) GHG emissions replaced by the net CDQ electricity generation BE1,y
BE1,y = (EGCDQ – ECDQ) × EFelectricity,y= (97.920 – 5.679) × 1.5931 = 146.946 kt-CO2(1-2) GHG emissions due to the CWQ treatment BE2,y
BE2,y = ECWQ ×(Wck,CDQ + Wck,CWQ) / Wck,CWQ× EFelectricity,y= 0.219 × (1090 + 660) / 660 × 1.5931 = 0.926 kt-CO2
BEy = BE1,y + BE2,y= 146.946 + 0.926 = 147.871 kt-CO2(2) Calculate the project emission: PEy(2-1) On-site powder cokes consumption due to the CDQ operation PE1,y
PE1,y = Wck,CDQ × COEFCDQ /1000= 1090 × 9.9 /1000 = 10.791 kt-CO2(2-2) Electricity consumption by the CWQ operation PE2,yPE2,y = ECWQ × EFelectricity,y= 0.219 × 1.5931 = 0.349 kt-CO2(2-3) Project emission for CDQ start-up PEstart-up
PEstart-up = QCOG × EFCOG /1000= 148 × 0.72580 /1000 = 0.107 kt-CO2
PEy = PE1,y + PE2,y + PEstart-up= 10.791 + 0.349 + 0.107 = 11.247 kt-CO2(3) Leakage: Ly
According to ACM0004, no leakage is considered, i.e. Ly = 0 kt-CO2

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
CDM – Executive Board(4) Emission reduction: ERy
ERy = BEy – PEy – Ly
= 147.871 – 11.247 – 0 = 136.624 kt-CO2

page 35PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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B.6.4. Summary of the ex-ante estimation of emission reductions:>>
Table 16. Data for the ex-ante estimation of emission reduction
Data/
Parameter

Description

Unit

1st year

One yearlast year

7 years

Wck, CDQ

Cokes amount treated with the CDQ

kt-coke

436

1,090

545

7,521

Wck, CWQ

Cokes amount treated with the CWQ
during the suspension of the CDQ
operation

kt-coke

439

660

330

4,729

COEFCDQ

CO2 emissions factor from powder
cokes combustion in CDQ equipment

kg-CO2/t-coke

9.9

9.9

9.9

9.9

kNm3

148.0

148.0

148.0

1,184.0

t-CO2/kNm3

0.72580.72580.72580.7258

QCOG

Coke oven gas for CDQ start-up

EFCOG

Carbon emissions factor of coke oven
gas

EGCDQ

Electricity generated by the CDQ
equipment

GWh

36.89697.92048.960675.648

ECDQElectricity self-consumed by the CDQ
equipment

GWh

2.272

5.679

2.840

39.188ECWQElectricity self-consumed by the CWQ
equipment

GWh

0.088

0.219

0.110

1.512

EF

CO2 emission factor for the electricity
displaced due to the project activity

t-CO2/MWh

1.59311.59311.59311.5931

1. GHG emissions replaced by the net
CDQ electricity generation

kt-CO258.778146.946

73.4731013.927

2. GHG emissions due to the CWQ
treatment

kt-CO2

0.370

0.926

0.463

6.389

1. On-site powder cokes consumption
due to the CDQ operation

kt-CO2

4.316

10.791

5.396

74.458

2. Electricity consumption by the
CWQ operation

kt-CO2

0.140

0.349

0.175

2.409

3. Project emission for CDQ
start-up

kt-CO2

0.107

0.107

0.107

0.856

CO2 emission reduction

kt-CO254.585

136.625

68.258942.593

Baseline
GHG
Emissions

Project
Activity
GHG
EmissionsER

Note: “one year” means emission per year from the second year to the seventh year. Operation rate of the 1st year is assumed
to be 80% of the normal year.

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Table 17. Summary of the ex-ante estimation of emission reduction

Year

Estimation ofproject activity
emission(tonnes of CO2e)

2009(July-Dec)

4,563

2010

Estimation of
baseline emission(tonnes of CO2e)

Estimation of
Leakage(tonnes of CO2e)

Estimation of
overall emission reduction(tonnes of CO2e)59,148054,585

11,247

147,8720

136,625

2011

11,247

147,8720

136,625

2012

11,247

147,8720

136,625

2013

11,247

147,8720

136,625

2014

11,247

147,8720

136,625

2015

11,247

147,8720

136,625

2016(Jan-Jun)

5,678

73,936

0

68,258

Total

77,723

1,020,316

0942,593PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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B.7. Application of the monitoring methodology and description of the monitoring plan:>>
B.7.1 Data and parameters monitored:

Data / Parameter:#1. Wck, CDQ

Data unit:

kt-coke/yDescription:

Cokes amounts treated with the CDQ

Source of data to be used:On-site measurement

Value of data applied for the
purpose of calculating
expected emission
reductions in section B.5

1st year: 436
2nd -7th year: 1090
8th year: 545

Description of measurement
methods and procedures tobe applied:Continuously measured with meter and electronically archived

QA/QC procedures to be
applied:Measurement results should be crosschecked with the quantity of the sales

Any comment:

Amount of the cokes treated with the CDQ in the 1st year is assumed to be 40% of
the average yearly amounts. Last year was 545. Amount of the cokes will bemeasured by the meter installed in the belt-conveyer system.

Data / Parameter:#2. Wck, CWQ

Data unit:

kt-coke/yDescription:

Cokes amounts treated with the CWQ during the suspension of the CDQ operation

Source of data to be used:On-site measurement

Value of data applied for the
purpose of calculating
expected emission
reductions in section B.5

1st year: 439
2nd -7th year: 660
8th year: 330

Description of measurement
methods and procedures tobe applied:Continuously measured with meter and electronically archived

QA/QC procedures to be
applied:Measurement results should be crosschecked with the quantity of the sales

Any comment:This Wck, CWQ is necessary to calculate the yCWQ (Electricity self-consumption
coefficient of CWQ equipment). Amount of the cokes will be measured by the meter
installed in the belt-conveyer system.

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Data / Parameter:#3. EGCDQ

Data unit:

GWh/yDescription:

Electricity generated by the CDQ equipment

Source of data to be used:On-site electricity meter

Value of data applied for the
purpose of calculating
expected emission
reductions in section B.5

1st year: 36.896
2nd -7th year: 97.920
8th year: 48.960

Description of measurement
methods and procedures tobe applied:Continuously measured with meter and electronically archived

QA/QC procedures to be
applied:Meter should be calibrated regularly. There are personnel responsible for making
periodic adjustments as needed.

Any comment:

There is an agreement between Antai and the utility company as for the linkage
which is specified by the standard GB/T177883-1999 and DL/T614-1997 (Feb.2,
2001).

Data / Parameter:#4. ECDQ

Data unit:

GWh/yDescription:

Electricity self-consumed by the CDQ equipment

Source of data to be used:On-site electricity meter

Value of data applied for the
purpose of calculating
expected emission
reductions in section B.5

1st year: 2.272
2nd -7th year: 5.679
8th year: 2.840

Description of measurement
methods and procedures tobe applied:Continuously measured with meter and electronically archived

QA/QC procedures to be
applied:Meter should be calibrated regularly. There are personnel responsible for making
periodic adjustments as needed.

Any comment:

There is an agreement between Antai and the utility company as for the linkage
which is specified by the standard GB/T177883-1999 and DL/T614-1997 (Feb.2,
2001).

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Data / Parameter:#5. ECWQ

Data unit:

GWh/yDescription:

Electricity self-consumed by the CWQ equipment

Source of data to be used:On-site electricity meter

Value of data applied for the
purpose of calculating
expected emission
reductions in section B.5

1st year: 0.088
2nd -7th year: 0.219
8th year: 0.110

Description of measurement
methods and procedures tobe applied:Continuously measured with meter and electronically archived

QA/QC procedures to be
applied:Meter should be calibrated regularly. There are personnel responsible for making
periodic adjustments as needed.

Any comment:

yCWQ can be calculated as: yCWQ = ECWQ/ Wck, CWQ ×1000. There are two CWQ
equipments. First CWQ is for the cokes oven #1 and #2. Second CWQ is now underconstruction and for the cokes oven #3 that is to start its operation form Apr.2007.
There is an agreement between Antai and the utility company as for the linkage
which is specified by the standard GB/T177883-1999 and DL/T614-1997 (Feb.2,
2001).

Data / Parameter:#6. Egrid

Data unit:

GWh/yDescription:

Electricity from the Grid

Source of data to be used:On-site measurement

Value of data applied for the
purpose of calculating
expected emission
reductions in section B.5

135.34 (please refer to B.6.1, Table 14)

Description of measurement
methods and procedures tobe applied:Continuously measured with meter and electronically archived

QA/QC procedures to be
applied:Measurement results should be crosschecked with the quantity of the sales.

Any comment:

Amounts of electricity imported from the grid will be used to compare the demandand supply of the electricity in the boundary of this project activity. There is anagreement between Antai and the utility company as for the linkage which is
specified by the standard GB/T177883-1999 and DL/T614-1997 (Feb.2, 2001).

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Data / Parameter:#7. Ecaptive

Data unit:

GWh/yDescription:

Electricity from the Captive power plants

Source of data to be used:On-site measurement

Value of data applied for the
purpose of calculating
expected emission
reductions in section B.5

161.84 (please refer to B.6.1, Table 14)

Description of measurement
methods and procedures tobe applied:Continuously measured with meter and electronically archived

QA/QC procedures to be
applied:Measurement results should be crosschecked with the quantity of the sales.

Any comment:

Amounts of electricity imported from the grid will be used to compare the demandand supply of the electricity in the boundary of this project activity. There is anagreement between Antai and the utility company as for the linkage which is
specified by the standard GB/T177883-1999 and DL/T614-1997 (Feb.2, 2001).

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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page 42B.7.2. Description of the monitoring plan:>>
We separate the monitoring items into the following two categories. Fig.7 below shows the flowchart ofthe monitoring plan for the CO2 emission reduction and Table 18 shows the information on themonitoring both for the CO2 emission reduction and for the other environmental impacts.
1. Monitoring for the CO2 emission reduction
Fig. 7 shows the flowchart of the monitoring plan for CO2 emission reduction. In the actual measurement
through monitoring, in addition to the cokes amount treated both with CDQ and CWQ, electricity
generation by CDQ, electricity consumed by CDQ, electricity import from the Grid, electricity generationby the captive power plants, steam for the CDQ start-up, the power consumption both by the CWQ andby the auxiliary equipments of CWQ, such as circulation pumps, ventilation pumps, etc. are determinedby the monitoring of CWQ operation performance. As for the CWQ, using the actual values obtained, theintensity of power consumption against cokes amount treated with the CWQ is calculated, which will be
used along with the GHG baseline emission factor to calculate the GHG emissions reduction.
AntaiPower Grid

Coke flow
Electricity flow
CO2 flow
Monitoring point
Project boundary

CO2

North China#6 Power Grid

#5

LegendHot coke

CWQ

CDQ + Generation#2#1

Monitoring data list
#3

#4

Captive#7 Power plants
Project boundary
Cooled coke

#1 Wck,CDQ#2 Wck,CWQ#3 EGCDQ#4 ECDQ#5 ECWQ#6 Egrid#7 Ecaptive

Fig. 7. Flowchart of the monitoring plan for CO2 emission reduction
Note1: There are two CWQ equipments. First CWQ is for the coke oven unit #1 and #2. Second CWQ is now underconstruction and for the coke oven unit #3 that is to start its operation form early 2007. Cokes amounts treated withthese two CWQ equipments will be measured together as one portion after being cooled, however each electricity
consumption will be measured separately.
Note2: This project activity utilizes waste heat from hot coke with the existing capacity and the heat capacity doesn’tchange between baseline scenario and the project activity.
Note3: CWQ operation in the proposed CDM project activity will be undertaken at the time when the CDQ
operation is suspended for regular inspection.

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Table 18. Monitoring data for the GHG emission reduction and other environment impacts
Data (description)

Monitoring
methodPerson/department inchargeComments/ Counter measures to betaken

1. Wck, CDQ(Cokes amounts treated with
the CDQ)

meter

General manager of the
CDM project activity

See section B.7.1. of this PDD

2. Wck,CWQ(Cokes amounts treated with
the CWQ)

meter

General manager of the
CDM project activity

See section B.7.1. of this PDD

3. EGCDQ, y(electricity generated by the
CDQ equipment)

Electric meter

General manager of the
CDM project activity

See section B.7.1. of this PDD

4. ECDQ(Electricity self-consumed by
the CDQ equipment)

Electric meter

General manager of the
CDM project activity

See section B.7.1. of this PDD

5. ECWQ(Electricity self-consumed by
the CWQ equipment)

Electric meter

General manager of the
CDM project activity

See section B.7.1. of this PDD

6. Egrid(Electricity imported from the
Grid)

Electric meter

General manager of the
CDM project activity

See section B.7.1. of this PDD

7. Ecaptive(Electricity generated by thecaptive power plants)

Electric meter

General manager of the
CDM project activity

See section B.7.1. of this PDD

8. Water consumption by the
CWQ

Electric meter

General manager of the
CDM project activity

Water consumption data of the CWQ
will be used as the baseline water
usage.

9. Dust generated by the cokes
transportation

Sighting
surveyGeneral manager of the
CDM project activity

If the generation of the dust is serious,
the dust collection by the collector
especially at the connection part of thebelt conveyers will be checked andnew measure will be taken, such as
improving the covering of belt
conveyer connection parts with hard
and thick cloth.

2. Monitoring for the other environmental impacts
As the other environmental impacts of this project activity, we will focus on generation of the dust during
the transportation of the cokes from the cokes oven to the blast furnace which may have environmentally
negative impacts. Below is the detailed description of two monitoring items mentioned above.
Generation of the dust
There is a possibility that the dust will be generated during the transportation of the cokes from thecokes oven to the blast furnace through the belt conveyors. Therefore it is very important to monitor
the generation of the dust and to reduce the amount of dust by taking the countermeasures such as the

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installation of the dust-collector if necessary. We will monitor the dust generation regularly and takenecessary measures to avoid serious environmentally negative impacts by, for example, covering of theconnection part of the belt conveyers with the hard and thick cloth.
To calculate the emission reductions, the Antai Group will monitor the amount of consumed steam aswell as the net electricity import. The monitoring could be achieved by means of installing flow meters inthe steam pipes. The net electricity import can be measured by the ammeter fixed on the power
distribution lines. The personnel in charge of the monitoring read the steam flow meters.
Vice-president of the Antai Group is responsible for the monitoring as the general manager of the CDM
project. Along with Mr. Wang who is the general manager of the CDM at present, several employees will
be nominated as the member of assisting group for the CDM project activity and they will take a
responsibility for the actual monitoring (Fig. 8).

General Managerof the Project
CDM group

Quality Supervisor

RecorderData Auditor

Fig. 8. Organization chart and responsibility for the monitoring in the Antai GroupPROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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B.8.
Date of completion of the application of the baseline study and monitoring methodology andthe name of the responsible person(s)/entity(ies)>>
Date of completing the final draft of the baseline section:
26/12/2007
Name of person/entity determining the baseline:
Jusen ASUKA, Professor, Tohoku University, Kawauchi, Aoba-ku, Sendai, 980-8576
Tel&Fax: +81-22-795-7557, asuka@cneas.tohoku.ac.jp
Xinghe ZHANG, Associate Professor, Asahikawa University, 3-21 Nagayama, Asahikawa, 079-8501
Tel&Fax: +81-166-48-3121, chokouwa@asahikawa-u.ac.jp

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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:>>
09/10/2004

C.1.2. Expected operational lifetime of the project activity:>>
21 years and 0 months
C.2.

Choice of the crediting period and related information:
C.2.1. Renewable crediting period
C.2.1.1. Starting date of the first crediting period:>>
01/07/2009
C.2.1.2. Length of the first crediting period:>>
7 years and 0 months
C.2.2. Fixed crediting period:
C.2.2.1.

Starting date:

C.2.2.2.

Length:

>>
N/A

>>
N/A

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page 47SECTION D. Environmental impacts>>
D.1.
Documentation on the analysis of the environmental impacts, including transboundary
impacts:>>
In this section D, we describe: 1) result and concrete procedure of the Environmental Impact Assessment(hereinafter referred to as EIA) of this project and 2) the quantification of the estimated impacts(pollutants reduction and water saving) using the data/parameter obtained from the statistics, data ofsimilar projects, etc.
1) Result and concrete procedure of the environmental impact analysis of this project
EIA of this CDQ project was conducted with two steps as follows.
Step1: EIA as a part of the EIA of the cokes oven plant construction project
The Coal Industrial Taiyuan Design Research Institute (License No.: State Environmental Assessment
Certificate Class 1, No. 1303, hereinafter referred to as Taiyuan Design Research Institute) has
conducted the EIA of the Cokes Oven Construction Project. Simultaneously, EIA of this CDQ
installation project was conducted as a part of the EIA of the cokes oven construction project.
The Environmental Protection Administration (EPA) of the Chinese government accepted the EIA
Report (license application version) of cokes oven plant construction project and approved theimplementation of the project in April 15, 2004 (No.2004-146).
The following describes the summary of the procedure of the EIA of the cokes oven plant construction
project.
The formal title of the assessment report is called “EIA Report on the Shanxi Antai Group
Corporation’s Project for Cokes Production Technology Improvement with Annual Production
Capacity of 2 Million Tons (for license application)”. The applicable laws and regulations include: 1)
Law of the People’s Republic of China on the Environmental Protection (Effective on December 26,1989), 2) Law of the People’s Republic of China on the Prevention and Control of Atmospheric
Pollution (Effective on April 29, 2000), 3) Law of the People's Republic of China on the Promotion of
Clean Production (Effective on June 29, 2002), 4) Law of the People's Republic of China on theEnvironmental Impact Assessment (Effective on October 28, 2002), and others.
The EIA was conducted under the following specific procedures.
First, the Taiyuan Design Research Institute, as an assessor, visited the construction site, implemented
the overall survey of the natural and physical environment, natural ecological environment, socioeconomic situation, and living conditions of the region where the construction project is located, andcollected relevant documents. After that, it prepared the “Outline of the EIA of the cokes production

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technology improvement project” (hereinafter referred to as the “Outline”), in accordance with therelevant laws and regulations of the State and the Shanxi Province. Next, the Environmental Process
Assessment Center of the State Environmental Protection Administration held the assessment meeting
to examine the “Outline” in Beijing on July 17, 2003. Furthermore, the Taiyuan Design ResearchInstitute implemented more detailed survey of the overall situation of natural and social environment
surrounding the planned construction project site, and studied the regional development plan as well as
possible pollution sources, based on the viewpoints expressed by the expert team and reviewers of this“Outline”. The Institute exchanged broad-ranged opinions with the Shanxi University, which is theregional environmental assessor of the Jiexiu City which is part of the Jinzhong City, while conducting
the populace participation survey to local residents. In addition, they requested the Environmental
Observation Station of the Jinzhong City, Shanxi Province to survey the environmental quality
situation. Based on the result of such survey, the institute completed the “EIA Report of the cokes
production technology improvement project with annual production capacity of 2 millions at the
Shanxi Antai Group Corporation” (hereinafter referred to as the “Report”). Later, the Environmental
Process Assessment Center of State Environmental Protection Administration held the review meetingof the “Report” on February 27-28, 2004, in Jiexiu City of Shanxi Province. Finally, as mentioned in
the beginning, the Government of China accepted this EIA Report (license application version) in April
15, 2004 and approved the implementation of the cokes oven plant construction project.
This EIA Report (license application version) clearly identified the advantages of CDQ equipment
introduction on page 49, 69, 82 including: 1) recovery of sensible heat from red hot cokes, 2) reductionof energy consumption, 3) reduction of pollutant emissions, and 4) improved quality of cokes. It alsomentions the use of CWQ during the CDQ equipment maintenance or breakdown.
Step 2: EIA of the CDQ project itself
On top of the EIA of the cokes oven plant construction project mentioned above, the Second Design
Research Institute of the Chemical Industry Department of the Chinese Government (License No.:State Environmental Assessment Certificate Class 2, No. 1331) has conducted the EIA of the CDQ
project and issued the EIA report in Apr. 2005.
With regard to the EIA report submitted by the Second Design Research Institute of the Chemical
Industry department of the Chinese government, the Environmental Protection Administration of the
Shanxi province (EPA of the Shanxi) issued the official letter (No.185, 2005), which approved the
CDQ installation by the Antai Group on June 20th, 2005. This approval was acknowledged officiallyagain by the EPA of Shanxi province on Nov.19, 2007 (Official letter No. 2007-711).
The letter from the EPA of the Shanxi mentioned above highlights the following points of the CDQ
implementation:
1) EIA report is complying with the official requirement and is suitable for the consideration regarding
the approval of the CDQ projects by the EPA of the Shanxi.

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2) EPA acknowledges the various benefits of the CDQ installation such as: a) energy conservation, b)
reduction of the emissions of air pollutants and c) avoidance both of the excess use of the water andof the emissions of fine particles cokes. Therefore the EPA agrees to the implementation of the CDQ
installation project.
3) EPA demands and checks that the Antai Group takes the environmental protection measures
mentioned in the EIA report, for example, covering of the connection part of the belt conveyer with
soft dustproof cover and realizing the improvement of the environment of the surrounding of the
Antai Group.
4) EPA expects that the implementation of the CDQ project will send a good signal to the cokes
industry in Shanxi province in terms of the environmental protection.
CDM application
In regards to the CDM application, two EIA Reports mentioned above do not directly refer to CDM,
but the Tohoku University Group has offered extensive explanation to the Antai Group and Shanxi
Province Government since 2001about the advantages and benefits of using CDM, leading to the AntaiGroup’s consideration on the possible use of CDM scheme. In fact, the Tohoku University Group
conducted the feasibility study of possible CDM usage to introduce CDQ for the Antai Group, with thesubsidy funds provided by the New Energy and Industrial Technology Development Organization(NEDO) of Japan. Moreover, when the Tohoku University personnel met with Mr. Du Wuan, the Vice
Governor of the Shanxi Province on October 8, 2002, the Vice Governor expressed his intention topromote CDM at the Shanxi Province, which was reported on the local paper of Shanxi Province thenext day (October 9, 2002, Shanxi Daily). At the time of the meeting with the Vice Governor, theTohoku University personnel held the seminar on CDM for the Shanxi Provincial Government officials.
In conclusion, the implementation of this project activity will improve not only global environment but
also local surroundings. In terms of improving global environment, first of all, the project will reduce
GHG emissions by the use of fossil fuel alternatives. In regards to the improvement of local
surroundings, on the other hand, it can reduce the emissions of air pollutants, such as SO2, NOx, andCO, in the flue gas generated from the combustion of fossil fuels, by the use of fossil fuel alternatives.
In addition, the introduction of CDQ equipment will make it possible to avoid the emissions of fineparticles cokes generated from the quenching of cokes with mass sprinkling of chilled water in aquenching tower12. Moreover, it can improve visual amenity as dry quenching can avoid the generationof massive water vapour containing fine particles of cokes.
Although there is a possibility that some amount of dust will be generated during the transportation of
the cokes from the CDQ to the blast furnace, we are going to take necessary measures to prevent it andminimize the negative impacts as much as possible by, for example, covering of the connection part ofthe belt conveyer with soft dustproof cover.
12

The fine particles included in cokes are either combusted and consumed in CDQ or recovered by dust
chambers placed in or out of CDQ.

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page 502) Quantification of the impacts estimated
Reduction of air pollutant emissions
The formula to calculate the reduction amount (saving amount) of each material and the cumulativevalues (estimate) are as follows:a. Replaced amount of fossil fuels
The amount of Chinese coal replaced by this project activity can be calculated from the amount of
power saved and the coal intensity of the project activity in comparison to baseline scenario.
First, the amount of power saved by the project activity can be calculated as follows:
Amount of power saved (GWh/y)= Net electric power generated by CDQ (GWh/y)+ Net electricity consumption reduction by the CWQ equipment
caused by the reduced operation time due to the CDQ installation (GWh/y)
Therefore, the amount of Chinese raw coal replaced (kt-coal/y) can be obtained by the following
formula:Amount of Chinese raw coal replaced (kt-coal/y)= Amount of power saved (GWh/y)× Chinese standard coal consumption rate (t-ce/GWh) /1000
× Conversion rate from Chinese standard coal to Chinese raw coal (t-coal/t-ce)
From the amount of power saved, amount of Chinese raw coal replaced and the production of cokes,
the reduction amount of air pollutants can be calculated as follows:b. SO2 emissions reduction
Reduction amount of SO2 emissions (t/y)= Amount of power saved (GWh/y)× SO2 discharge ratio from electricity generation (t/GWh)c. NOX emissions reduction
NOX emissions reduction (t/y)= Amount of Chinese raw coal replaced (kt-coal/y)× NOx discharge ratio from electricity generation (t/kt-coal）

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d. CO emissions reduction
CO emissions reduction (t/y)= Amount of Chinese raw coal replaced (kt-coal/y)× CO discharge ratio from electricity generation (t/kt-coal）+ Yearly cokes amounts treated with the CDQ (kt-coke/y)× CO discharge ratio from CWQ (t/kt-coke)e. Dust emissions reduction
Dust emissions reduction (t/y)= Amount of power saved (GWh/y)× Dust discharge ratio from electricity generation (t/GWh)+ Yearly cokes amounts treated with the CDQ (kt-coke/y)× [Dust discharge ratio from CWQ – Dust discharge ratio from CDQ] (t/kt-coke)
Table 19 below lists the data used for the calculation of air pollutants emissions reduction, and Table
20 shows the estimates of air pollutant emissions reduction by this project activity, estimated using
the data in Table 19.

Table 19. List of data used for the calculation of air pollutants emissions reduction
Item

Unit

Value

Reference

Conversion rate from Chinese
standard coal to Chinese raw coalt-coal/t-ce

1.176

Statistics Bureau of Shanxi Province ed.: Shanxi Statistical
Yearbook, China Statistics Press (2007), p.163.

Chinese standard coalconsumption rateof the North China power gridt-ce/GWh

372

Clean Development Mechanism in China, China's Regional
Grid Baseline Emission Factors 2007 (Chinese Version),
http://cdm.ccchina.gov.cn/, (2007).
Science and Technology Department of State Environmental
Protection Administration, Handbook of emission factors ofIndustrial Pollutants, China Environmental Science Publishing(1996, Chinese).

Dust discharge ratio
from electricity generation

t/GWh

8.21

SO2 discharge ratio
from electricity generation

t/GWh

10.4

NOx discharge ratio
from electricity generationt/kt-coal

5.77

CO discharge ratio
from electricity generationt/kt-coal

2.07

Dust discharge ratio from CDQ

t/kt-coke

0.045

Feasibility Study Report of CDQ and Cogeneration of AntaiGroup, ACRE Coking & Engineering Consulting Corporation,
MCC (2004).

Dust discharge ratio from CWQ

t/kt-coke

0.200

Same as above

CO discharge ratio from CWQ

t/kt-coke

2.31

NEDO Report: Feasibility Study of Coke Dry Quenching(CDQ) equipment model project in India, Consigned by
Nippon Steel Cooperation (2002).

Water consumption for CWQ

kt/kt-coke

0.4

Same as above

Same as above
Same as above
Same as above

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Table 20. Environmental improvement effects (estimated) of CDQ introduction
Year
Item

Unit

Cokes treated with theCDQ

kt-cokeYearly CDQ operation
day

1 st

Total
(7years)

2 nd

3 th

4 th

5 th

6 th

7 th

last

436

1,090

1,090

1,090

1,090

1,090

1,090

545

7,521

day

170

340

340

340

340

340

340

170

2,380

Net electric power
generated by CDQ

GWh

36.89692.24192.24192.24192.24192.24192.24146.120636.460

Reduction of power
consumption due to thesuspension of CWQ

GWh

0.145

0.362

0.362

0.362

0.362

0.362

0.362

0.181

2.497

Power saved

GWh

37.04192.60392.60392.60392.60392.60392.60346.301638.957

Amount of standard
coal usage substituted

kt

13.76334.40834.40834.40834.40834.40834.40817.204237

Amount of raw coalusage substituted

kt

16.24140.60140.60140.60140.60140.60140.60120.301280.

SO2 emission reduction

t

385

963

963

963

963

963

963

482

6,645

NOX emission
reduction

t

94

234

234

234

234

234

234

117

1,616

Reduction of CO
emissions from watergas reaction

t

1,041

2,602

2,602

2,602

2,602

2,602

2,602

1,301

17,953

Particle emissions
reduction

t

372

929

929

929

929

929

929

465

6,412

Water saving by introducing the CDQThis project activity’s water saving effects can be calculated by the following formula:Amount of water saved (kt/y)= Yearly cokes amounts treated with the CDQ (kt-coke/y)× Water consumption for CWQ (kt/kt-coke)
Table 21 below shows the calculation result using 0.4 kt/kt-coke (shown in Table 19) as the estimates ofquenching water intensity in CWQ and the date shown in Table 21.

Table 21. Estimated water saving volume by this project activity
Year
Item

Unit

1 st

2 nd

3 th

4 th

5 th

6 th

7 th

last

Total
(7years)

Amount ofwater saved

kt

174

436

436

436

436

436

436

218

3,008

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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:>>
Most of the environmental impacts are positive. As mentioned previously, although there is a possibility
that the some amount of the dust will be generated during the transportation of the cokes from the CDQ
equipment to the blast furnace, we are going to take the necessary measures to prevent it and minimize
the negative impacts as much as possible (please refer to the section A.4.3. of this PDD).

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SECTION E. Stakeholders’ comments>>
E.1.
Brief description how comments by local stakeholders have been invited and compiled:>>
On Sep.27, 2007 and Sep.28, 2007, the Antai Group conducted the survey (interviews with questinaaire
shown as Table 22) with individual stakeholders, with the resulting comments as summarized below. At
the moment, the Antai Group has requested the Taiyuan Cokes Industry Design Research Institutem
which is the agengy conducting EIA (ricence no. 1311 issued by the EPA of PRC on Dec.20, 2004) toorganize the environmental impacts assessment of this project, in order to obtain a building permit.
The stakeholder survey (interviews) was conducted to 51 people in total from groups of: residents
residing near the Antai Industrial Park; employees of Antai Group, government officials of Jiexiu City
and academic researchers. There were 48 male and 3 female with ages between 19 to 66 (Table 23). The
resisdents near the Antai were chosen from three villages because that: 1) the villages locates near the oldcoke oven and power plants ; 2) the village has received some environmental influences from the facilities
of Antai and 3) the village may receive some influences from the new coke ovens that locates upwind of
the village (Please refer to Fig.3 of this PDD, page 5).
The survey was made as follows: first, Mr. Wang Liduan, the Vice President of An Tai Group, explained
to individual subject of questionnaire about the outline of a plan to build mechanical cokes production
plant by Antai Group, as well as the significance of introducing CDQ equipment using the CDM scheme
introduced under the Kyoto protocol and its plan; then, each person was asked to write in simple
comments and opinions. Comments and opinions were collected by Sep.28, 2007. Each person was also
requested to write his/her name, occupation, age, date of response, and response contents (comments,
opinions, proposal etc.) as well as the name, occupation, and age of the person explained the plan.

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Table 22. Questionnaire of EIA about Antai Group’s CDQ project on residents and participations
Name

Sex

Education

Employment

Age

Occupation

Project Summary: Installation of the CDQ equipment which aims to use wasted-heat for electric generation (12 MW). The
technical process is as follows: First, the cooling inert gas will be insufflated into CDQ oven from bottom by gas-flower andexchange heat with red-hot coke. Second, through the primary dust catcher, heated inert gas will go through CDQ boiler toexchange heat. Third, with second dust catcher, inert gas is pressurized by gas-flower and sent into a heat exchanger to cool
down. Fourth, recycled cooled inert gas will be insufflated into CDQ oven. Coke dust which is separated by dust catcher will
be collected into a storage tanker by dedicated transmission equipment and loaded out when necessary. All smokes and dusts
emitted from installing, sending, storing and gas-flowering of CDQ will be dealt by dust catcher before emission. This projectis energy-saving and clean production. After operation of this project, enormous energy-saving and water-saving can be
expected. Although this project will take all possible measures to control air pollution, it is still probable that a small amount of
dust and noise will incur some environment impacts around the project location; therefore, this survey is conducted.
1. How do you evaluate air environment where you live?
A. Satisfied B. Not too bad

C. PoorFor Example:

D. Very poor

2. In daily life, which is the most serious environment problem do you think?
A. AirB. Water

C. Noise

D. Solid pollutants

3. How do you evaluate the pollution caused by Antai Group?
A. Serious

Why?

B. Not so serious C. No problem

4. How do you evaluate the effect of this project on local development?

Why?

A. Important B. Not so important C. No effects D. Bad effects
5. From environment viewpoint, which do you think is the most important
issue of this project?

Why?

A. Increase pollution control efforts B. Introduce advanced technology
C. Improve management
D. Others
6. This is an energy-saving and clean production project. Project had taken effective prevention and control measures to avoid
noise and dust pollutions, met emission standards. However, complete environmental protection cannot be ensured, what
do you think about this?
A. Understand and accept

B. Acceptable

C. Serious, cannot accept

7. Which is the most notable problem of this project do you think?
A. Pollution protecting measures B. Environment management

C. Others

8. Do you think there are environmental problems (list below) in your region recent years?
A. Rapid reduction of vegetation

B. Serious soil erosion

C. Reduction of crops and fruits

D. Others

9. What do you think about your life (income, living environment, welfare)?
A. Very good

B. Good

C. Normal

D. Bad

10. Do you have any opinions or suggestions on this project?
11. Do you have any opinions and suggestions on this EIA?
Note:
1. This table is designed for the aim of understanding the environmental awareness of residents. Please give an answer aboutpros and cons of this project. Your answer will become a basis of decision.
2. Please choose the answer which is most representing your opinion, and fill the number in brackets
3. For the question without choices please fill in your opinions about this project.
4.
This questionnaire will be distributed among residents living around CDQ project plant of Antai Group, employee ofcompany, communities, organizations and government staffs.

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Table 23. Description of commentators

Group

Sex

Age

Level ofeducation

Number%Remarks

Residents of the Antai Industrial Park
neighbourhood

33

64

Resident of Yian, Xidaqi, Dongdaqi,
Liujiazhai, Jiangjiazhai, and Xicun Village

Antai Group employees

1020

Employees of Coke factory ant Powergeneration factory

Officers of Jiexiu city government

3

6

Environmental Protection Dept., Power
Generation Dept. and Economy and Trade
Dept.

Officers of Yian town government

1

2

Eclectic power company in Jinzhong

2

4

Scholars

2

4

Male

48

94

Female3

619-30 years ole

122431-50 years old

27

52

51-66 years old

1224Middle school or below

21

41

High school

10

20College or above

20

39

Note: the total number of commentator is 51.

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Table 24. Summary of questionnaire of EIA
Content
Evaluation of the environment
nearbyThe most serious environment
problem

OptionNumber%A.

Satisfied

14

27.45

B.

Not too bad

34

66.67

C.

Poor

3

5.88

D.

Very poor

0

0

A.

Air

38

74.51

B.

Water

1

1.96

C.

Noise

1

1.96

D.

Solid Pollutant

1

1.96

A.

Serious00

B.

Not so serious

49

96.08

C.

No problem

2

3.92

A.

Important

51

100

B.

Not so Important

0

0

C.

No effects

0

0

D.

Bad effects

0

0

A.

Increase pollution control efforts

9

17.65

The most important environment
aspects of this project

B.

Introduce advantage technology

8

35.29

C.

Improve management

12

23.53

D.

Others11

21.57

Complete environment impacts
cannot be ensured, what do you think
about this?

A.

Understand and accept

43

84.31

B.

Acceptable

8

15.69

C.

Serious, cannot accept

0

0

A.

Pollution protecting measures

12

23.53

B.

Environment management

13

25.49

Evaluation of the pollution caused by
Antai Group

Evaluation the effect of this project
on local development

The most notable problem of thisproject

Eco-environment problems occurredin the region recent years

Evaluation of the condition of the life
in general

C.

Others

26

50.98

A.

Rapid reduction of vegetation

0

0

B.

Serious soil erosion

0

0

C.

Reduction of crops and fruits

4

7.84

D.

Others

45

88.24

A.

Very good

3

5.88

B.

Good

39

76.47

C.

Normal

8

15.69

D.

Bad

1

1.96

Note1: On the question “In daily life, which is most serious environment problem do you think?”, seven persons
answered “No”, 13.73% of total surveyed, 3 persons filled in A, B, 5.88% of total surveyed.
Note2: On “The most notable environment aspect of this project”, one person filled in “No”, 1.96% of total surveyed.
Note3: On “Do you think there are environmental problems in your region recent years?”, two persons answered“No”, 3.92% of total surveyed.

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E.2.
Summary of the comments received:>>
The response from the interview survey described above can be categorized and summarized as below:
1) Residents residing near the Antai Industrial ParkThe cokes production using beehive method certainly promoted the local economy in the areasurrounding Antai Industrial Park, but it did bring serious environmental pollution at the same time.
Looking up the sky, we could not see anything, and looking down the earth, we found black particles all
over. We had black phlegm day and night. Antai neighbourhood residents had suffered serious damages
in the past. We strongly anticipate that the abandoning of bee hive coke oven, and construction of large
scale mechanical cokes oven of 2 million tons capacity with the introduction of CDQ would significantly
contribute to the environmental improvement of Antai neighbourhood.
2) Antai Group employees
CDQ project would not only provide the benefits, such as the recovery of waste heat, saving coal andwater resource, comprehensive utilization of cokes oven gas, and cokes quality improvement, but also
improve our work environment. Although there might be financial difficulties, we would certainly
anticipate that Antai CDQ Project would be implemented with the introduction of CDM.
3) Officials of Jiexiu City Administration
Jiexiu City has had serious environmental pollution with many kinds of environmental pollutants
exceeding the standards. For the improvement of environmental pollution and sustainable development,
we would expect the Antai Group Company to adopt advanced technologies in new projects, and torealize energy saving, lower consumption, lower pollution and higher efficiency, thereby gradually
improving the quality of regional environment. When 2 million ton iron and steel project starts operation,
there would be about 80,000 kW power shortages in the area. The introduction of CDQ would realize theintegrated utilization of resources, improvement in environmental pollution, and better cokes quality,
while mitigating the power supply. This would be beneficial to the company, society, and environment.
By the introduction of CDM, we would hope that the Antai Group Company would be able to resolve its
financial difficulties. We would hope for the earliest introduction of CDQ.
4) Academic researchers
The elimination of beehive cokes oven and introduction of mechanical coke oven would significantly
contribute to the effective use of resources and environmental improvement. However, the conventional
mechanical cokes oven with CWQ would still result in the wasteful use of resources and polluting ofenvironment. By adopting CDQ technology, following two benefits would be expected:
Integrated use of resources.
With CDQ, it would be possible to recover about 80% of sensible heat from red-hot cokes. In
calculation, it would generate electricity from the heat recovered from the CDQ attached to a 1 million
capacity coke oven.
Reduction of the pollutions
By power generation from heat recovered from the CDQ connected to a 1 million ton capacity cokeoven, it would be possible to save 80 to 100 thousand tons per year of coal for power generation. So, itwould be possible to avoid the emissions of air pollutants from coal combustion, such as CO2 and SO2.
As seen here, CDQ could provide many benefits, but it has not been introduced to Shanxi Province,
because of the amount of investment required. If the Antai Group could introduce the CDQ, it would
certainly have significant influence over the cokes industry in Shanxi Province. Reality is that the

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Antai Group, as a private entity, does not have sufficient ability to procure funds, even if it wishes to
do so. We would hope that the Antai Group’s introduction of CDQ would be realized as soon as
possible through the utilization of CDM scheme under the Kyoto protocol.

E.3.
Report on how due account was taken of any comments received:>>
No negative comments have been received with regard to the proposed activity to date. The residents andlocal government are all supportive of the project and there is no need to modify the project due to thecomments received. These comments have already been sent to the executives of the Antai Group, andwould likely to have significant influence over their decision.

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Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY

Organization:
Street/P.O.Box:
Building:
City:
State/Region:
Postfix/ZIP:Country:
Telephone:
FAX:
E-Mail:URL:
Represented by:Title:
Salutation:
Last Name:
Middle Name:First Name:
Department:
Mobile:Direct FAX:
Direct tel:Personal E-Mail:

Shanxi Antai Group Holding Co., Ltd.
Antai Industrial Zone
OfficeJiexiuShanxi
031202
China+86 354 753-1011+86 354 753-6557
http://www.Antaigroup.com/index.htm
Vice President―
Wang―
LiduanHead Company―+86 354 753-6557+86 354 753-1001
ld_wang@antaigroup.com

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

Organization:
Street/P.O.Box:
Building:
City:
State/Region:
Postfix/ZIP:Country:
Telephone:
FAX:
E-Mail:URL:
Represented by:Title:
Salutation:
Last Name:
Middle Name:First Name:
Department:
Mobile:Direct FAX:
Direct tel:Personal E-Mail:

Tohoku University
Kawauchi 41, Aoba-ku
Sendai
Miyagi
980-8576
Japan+81-22-795-7557+81-22-795-7557

Professor
Asuka
―
Jusen
Center for Northeast Asian Studies―+81-22-795-7557+81-22-795-7557
asuka@cneas.tohoku.ac.jp

page 61PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
CDM – Executive Board

Organization:
Street/P.O.Box:
Building:
City:
State/Region:
Postfix/ZIP:Country:
Telephone:
FAX:
E-Mail:URL:
Represented by:Title:
Salutation:
Last Name:
Middle Name:First Name:
Department:
Mobile:Direct FAX:
Direct tel:Personal E-Mail:page 62

Japan Carbon Finance, Ltd.
1-3,Kudanshita 4-Chome, Chiyoda-ku
Tokyo
102-0073
Japan+81-3-5212-8870+81-3-5212-8886
http://www.jcarbon.co.jp/
Deal Manager
Mr.
Isone
―
Shuji
Carbon Finance Department―+81-3-5212-8886+81-3-5212-8875
s-isone@jcarbon.co.jp

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Annex 2
INFORMATION REGARDING PUBLIC FUNDING
There is no public funding for this project (please refer to the section A.4.5. of this PDD)PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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page 64Annex 3
BASELINE INFORMATION
For the convenience of developing qualified projects and projects in priority areas with high efficiency,
the Office of NCCCC, NDRC of the Chinese Government recently worked out China’s regional gridbaseline emission factors based on the EB approved consolidated methodology ACM0002 for CDM
project owners13. Table 25 below shows the OM and BM of national grids in China.

Table 25. OM and BM of the each national grid in China
Grid

OM (t-CO2/MWh)

BM (t-CO2/MWh)

North China

1.12080.9397

North east

1.24040.8631

East China

0.94210.8672

Middle China

1.28990.6592

North west

1.12570.5739South China

1.12570.5739

Hainan1.01190.6748Source: http://cdm.ccchina.gov.cn/WebSite/CDM/UpFile/File1364.pdf (As of Aug.9, 2007).

13

For the detailed information of calculation, data sources and explanation, please land in Bulletin Board in the
Chinese CDM DNA Webpage ( http://cdm.ccchina.gov.cn/web/index.asp ).

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Annex 4
MONITORING INFORMATION
Please refer to the section B.7.1 and B.7.2. of this PDD.