JCM_VN_F_Val_Rep_ver01.0

JCM Validation Report Form
A. Summary of validation
A.1. General Information
Title of the project

Installation of Container Formation Facility at
Lead Acid Battery Factory of Hitachi Chemical
Energy Technology (Vietnam) Co., Ltd.

Reference number

VN010

Third-party entity (TPE)

Japan Quality Assurance Organization (TPEVN-002)

Project participant contracting the TPE

Hitachi Chemical Co., Ltd.

Date of completion of this report

06/11/2018

A.2 Conclusion of validation
Overall validation opinion

Positive
Negative

A.3. Overview of final validation conclusion
Only when all of the checkboxes are checked, overall validation opinion is positive.
Item
Validation requirements
No CAR or
CLremaining
Project design The TPE determines whether the PDD was completed using
document form
the latest version of the PDD forms appropriate to the typeof project and drafted in line with the Guidelines forDeveloping the Joint Crediting Mechanism (JCM) Project
Design Document, Monitoring Plan and Monitoring Report.
Project
The description of the proposed JCM project in the PDD is
description
accurate, complete, and provides comprehension of the
proposed JCM project.
Application of The project is eligible for applying applied methodology andapproved JCM that the applied version is valid at the time of submission of
methodology
the proposed JCM project for validation.
(ies)
Emission
All relevant GHG emission sources covered in thesourcesand methodology are addressed for the purpose of calculating
calculationof project emissions and reference emissions for the proposedemission
JCM project.
reductions
The values for project specific parameters to be fixed ex ante
listed in the Monitoring Plan Sheet are appropriate, if
applicable.
Environmental
The project participants conducted an environmental impact
impactassessment, if required by the Socialist Republic of Vietassessment
Nam, in line with Vietnamese procedures.
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B. Validation team and other experts

Name

Company

Function*

Schemecompetence*

Mr.
Sachiko
Team
JQA
Ms.
Hashizume
LeaderMr.
Koichiro
Team
JQA
Ms.
TanabeMemberMr.
TadashiInternal
JQA
Ms.
Yoshida
Reviewer
Please specify the following for each item.

Technical
competence*

Onsitevisit

Authorized
Authorized
Authorized* Function: Indicate the role of the personnel in the validation activity such as team leader, teammember, technical expert, or internal reviewer.
* Scheme competence: Check the boxes if the personnel have sufficient knowledge on the JCM.
* Technical competence: Indicate if the personnel have sufficient technical competence related
to the project under validation.

C. Means of validation, findings, and conclusion based on reporting requirements
C.1. Project design document form
<Means of validation>
Through a review of the draft PDD, it was checked and confirmed that the PDD wascompleted using the latest version of the PDD form (JCM_VN_F_PDD_ver02.0)
appropriate to the type of project and drafted in line with JCM Guidelines forDeveloping PDD and MR (JCM_VN_GL_PDD_MR_ver02.0).
<Findings>
No outstanding issue was raised.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
The validation team concluded that the PDD was complete using the valid form inline with the JCM Guidelines for Developing PDD and MR.

C.2. Project description<Means of validation>
The purpose of the proposed JCM project is to reduce CO2 emission emitted by the3

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national grid system in Viet Nam by reducing energy consumption of the existing
factory of Hitachi Chemical Energy Technology (Vietnam) Co., Ltd, located in Dong
Nai Province, Socialist Republic of Vietnam. The proposed JCM project replace theexisting tank formation facility to higher energy-efficient container formation facility.
The newly installed container formation facility of the proposed JCM project consist of
production Line 1, 2, 3 and 4 with the corresponding cooling system.
The expected emission reductions that would be achieved by the proposed JCM
project in its operation are estimated to be 3,825 tCO2e annually. The emission
reductions of the period from 2018 through 2020 are estimated to be 10,519 tCO2e in
the PDD.
The validation team conducted document review and one-day on-site assessment,
dated 01/02/2018, for this proposed JCM project, subject to the PDD. The on-site
assessment included follow-up interviews with the following project participants (PPs)at the project site.


Hitachi Chemical Energy Technology (Vietnam) Co., Ltd.



Hitachi Chemical Co., Ltd.

The location information of the proposed JCM project and the other description
stated in Section A (Project description) of the PDD were cross-checked through thephysical inspection. Regarding the duration of the proposed JCM project, it isconfirmed that the starting date of project operation is 01/04/2018, and it is reasonable
for starting date of monitoring. The expected operational lifetime of the proposed JCM
project is defined as nine years, which is in compliance with legal useful life of theoperational equipment under Japanese tax regulation. Contribution from Japan is also
described in the PDD.

<Findings>
No outstanding issue was raised.

<Conclusion based on reporting requirements>
In conclusion, the team determines that the description of the proposed JCM projectin the PDD is accurate, complete, and provided an understanding of the proposed
JCM project.

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C.3. Application of approved methodology(ies)<Means of validation>
Selection of methodology(ies)
The approved methodology VN_AM009 “Installation of Container Formation Facility
at Lead Acid Battery Factory, Version 01.1” is applied to the proposed JCM project.
Eligibility criteria
The assessment results of the eligibility criteria in the approved methodology aresummarized as below:(Criterion 1)
Descriptions specified in the methodology:
Container formation facility is newly installed or installed to replace tank formation
facilities at lead acid battery production line.
Project information in the PDD:
Container formation facility is installed to replace tank formation facilities atconventional lead acid battery production line at the factory of Hitachi Chemical Energy
Technology (Vietnam) Co., Ltd.
Assessment and conclusion:
The validation team conducted a physical inspection of the acid battery productionlines at the project site, and interviewed with the PPs directly to understand the projectboundary. As a result, it is confirmed that the project container formation facility has
been installed to replace the existing tank formation facilities. Therefore, the validationteam concludes that the Criterion 1 is satisfied.

<Findings>
No outstanding issue was raised.
<Conclusion based on reporting requirements>
The validation team reached the conclusion that the relevant information containedin the PDD is in compliance with the eligibility criterion listed in the approved
methodology applied.
C.4. Emission sources and calculation of emission reductions
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JCM_VN_F_Val_Rep_ver01.0<Means of validation>
It was confirmed through desk review that all emission sources and their associatedGHGs relevant to the proposed JCM project were in line with the applied methodology,
and those were clearly stated in the PDD. For cross-check, the validation teamconducted an on-site inspection and a follow-up interview with the PPs, and confirm
the following project aspects.
 As illustrated in the figure C.2 of the PDD, the proposed JCM project consists offour container formation lines and the corresponding packing lines, and one
cooling system including chillers and cooling towers.
 Three monitoring points (No.1, No.2, and No.3) have been identified tomeasure/collect data and calculate emission reductions achieved by this
proposed JCM project.
 Electricity consumed by the container formation facilities, including chillers andcooling towers, is directly measured by the corresponding electricity meter.
Production output of lead acid battery per type is monitored. Production output
data is automatically collected by Product Information Management Device.
As a fuel consumption, only LPG was used for the existed tank formation process
in the past, and it is in line with the applied methodology, which does not allow the
PPs to choose fuels other than LPG. For the project container formation process,
LPG is not used as a container formation process does not have Plate Drying
process, which uses LPG. In addition, a captive power generator using diesel fuelexists in the factory. It is for emergency use only, therefore, it is excluded from theboundary of the proposed JCM project.
As a result, it was considered that the PDD was in line with the approved

methodology, as well as current conditions of the project site.
For parameters to be monitored, the estimated values are confirmed through thevalidation. Annual production output of lead acid battery (Nj,k,p) is estimated to be
800,000 units per battery type, according to target production volume of each battery
type, which is based on the production results of the factory. Capacity of each leadacid battery type (AHi) is based on the relevant values described in the battery productcatalog. Electricity consumption by the container formation facilities (ECPJ,k,p) is
estimated by sum of electricity consumed by electricity chargers and cooling system.
As for the project-specific parameters to be fixed ex ante, CO2 emission factor for
grid electricity (EFelec,k) is 0.8154 tCO2/MWh, which is the latest national grid emission
factor issued by Ministry of Natural Resources and Environment of Vietnam. CO2
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emission factor for fuel (EFfuel,k) is 0.0616 tCO2/GJ (= 61,600 kg/TJ), which is lower
limit default value of effective CO2 emission factor for Liquefied Petroleum Gases
stated in IPCC 2006.

<Findings>
No outstanding issue was raised.
<Conclusion based on reporting requirements>
The validation team reached the conclusion through the validation that the selected
emission sources and GHG types were justified for the JCM project. The validationteam assessed the estimated values for project-specific parameters to be fixed ex
ante, as well as parameters to be monitored ex post stated in the MPS, throughchecking intermediate calculation processes to derive them. As a result, those wereconsidered reasonable in the context of the proposed JCM project.

C.5. Environmental impact assessment<Means of validation>
It was confirmed that “Construction projects for battery and cell factories”, withcapacity at least 50,000 kWh per year or at least 100 metric tons of products per year,
was required to conduct environmental impact assessment (EIA) subject to legal
requirements of EIA in Socialist Republic of Viet Nam. The validation team reviewed
the EIA approval letter, No.1988/QD-BTNMT, dated 17/08/2017, issued by MONRE.
Through document review and interviews with PPs, it was confirmed that theconclusion of the assessment was positive.
<Findings>
No outstanding issue was raised.
<Conclusion based on reporting requirements>
The validation team concludes that the project design of the proposed JCM projectis in accordance with the local EIA regulation.

C.6. Local stakeholder consultation<Means of validation>
Through review of the PDD and the supplemental documents relevant to local
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stakeholder consultation (LSC) meeting, it was confirmed that the LSC was
successfully implemented as below.
(a) Comments were invited from local stakeholders that are relevant for the proposed
project.
 The relevant local stakeholders were identified by the PPs, and the LSC meeting
was held on 07/12/2017, in which management and employees of Hitachi
Chemical Energy Technology (Vietnam) Co., Ltd were mainly participated.
(b) The summary of the comments received as provided in the PDD is complete.
 The summary of the comment received has been described in the PDD. Throughinterview with the PPs, it is confirmed that the comment has been described in the
PDD appropriately.
(c) The PPs have taken due account of all comments received and have described
this process in the PDD.
The validation team determines that the relevant local stakeholders have been
identified appropriate and the information on the LSC meeting has been described in
the PDD appropriately. As a result, it is concluded that no further action is required forthe comment received.

<Findings>
No outstanding issue was raised.
<Conclusion based on reporting requirements>
The validation team concluded that the local stakeholder consultation of the
proposed JCM project was adequate.

C.7. Monitoring<Means of validation>
Through document review and interviews with the PPs, the following information
was confirmed.
(a) Assessment of compliance of the monitoring plan with the approved methodology
and/or PDD and Monitoring Guidelines
The parameters to be monitored ex-post are determined in accordance with

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Monitoring Plan Spreadsheet (MPS) of the applied methodology as below
 Nj,k,p (Production output of lead acid battery type i in the project factory k during
the period p) AHi (Capacity of each lead acid battery type) ECPJ,i,p (Electricity consumption by the container formation facilities including
chillers and cooling tower in the project factory k during the period p)(b) Assessment of the implementation of the plan
Through document review and interview with the PPs, the validation team raised a
CL. This CL was resolved in “Findings” below.

<Findings>
CL01
For Monitoring Point No.3 (whatthour meter for ECPJ,i,p), it is requested to clarify
calibration procedures of the measuring equipment for electricity consumption
accordingly.

Resolution by the PPs
Monitoring equipment already calibrated by the manufacturer is installed for thisproject. Monitoring equipment will be replaced with calibrated new one based onrecommendation by the manufacturer.

<Conclusion based on reporting requirements>
The validation team concluded that Monitoring Plan of the proposed JCM projectcomplied with the requirements of the methodology and/or PDD and Monitoring
Guidelines, and the project participants have ability to implement the defined
Monitoring Plan Sheet. It is also confirmed that the Monitoring Structure is feasible as
for the means of monitoring.
C.8. Modalities of Communication<Means of validation>
Through document review, it is confirmed that the Modalities of Communication(MoC), dated 19/09/2018, have applied the applicable version of MoC form. The
validation team also conducted interviews with some of the signatories of the MoC,
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and then identified the personnel and their employment status, including the specimen
signatures. Therefore, the validation team determines that the information of all project
participants, including the focal point provided in the MoC and its correctness ofauthority, is appropriate.
<Findings>
No outstanding issue was raised.
<Conclusion based on reporting requirements>
The validation team concluded that the MoC complied with all relevant forms andrequirements.

C.9. Avoidance of double registration<Means of validation>
It was confirmed through review of the relevant website (e.g. UNFCCC website) thatthe proposed JCM project has not been registered under other international climate
mitigation mechanisms. Also, the written confirmation of the avoidance of double
registration was provided through the signed MoC, and was cross-checked throughinterview with the project participant, with a satisfactory result.
<Findings>
No outstanding issue was raised.
<Conclusion based on reporting requirements>
The validation team concluded that the proposed JCM project was not registeredunder the other international climate mitigation mechanisms at the stage of validation.

C.10. Start of operation<Means of validation>
Through interview with the PPs, it was confirmed that the starting date of project
operation is 01/04/2018 stated in the PDD, and it was clarified that the PPs were
determined to set the date as the first date of Japanese fiscal year 2018. It was also
observed during the on-site assessment conducted in February that the main facilitiesof the project container formation process had been running and the project site wasready to start monitoring activities for the proposed JCM project. Therefore, thevalidation team considers that it is reasonable to set the starting date of project10

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operation to be 01/04/2018<Findings>
No outstanding issue was raised.
<Conclusion based on reporting requirements>
The validation team concludes that the start of the operating date of the proposed
JCM project has been defined appropriately.

C.11. Other issues<Means of validation>
No other issue was identified.
<Findings>
No outstanding issue was raised.
<Conclusion based on reporting requirements>
Not applicable.

D. Information on public inputs
D.1. Summary of public inputs
The PDD of the proposed JCM project, which was submitted in line with the Project
Cycle Procedure, was made publicly available through the JCM website for public
inputs. The call for public comments was opened from 20/09/2018 to 19/10/2018(24:00 GMT). The specific JCM website is as below, and as a result, no comment wasreceived.


https://www.jcm.go.jp/vn-jp/projects/52

D.2. Summary of how inputs received have been taken into account by the project participants
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E. List of interviewees and documents received
E.1. List of interviewees Akira Ishiguro, Assistant Manager, Hitachi Chemical Co., Ltd.
 Wang Tsung Ming, Manufactory Director, Hitachi Chemical Energy Technology(Vietnam) Co., Ltd.
 Lee Chun Sheng, Deputy Manufactory Director, Hitachi Chemical Energy
Technology (Vietnam) Co., Ltd.
 Wang Tien Sheng, Deputy Section Manager, Maintenance Section, Hitachi
Chemical Energy Technology (Vietnam) Co., Ltd.
 Paul Huang, Supervisor, Manufacture Department, Hitachi Chemical Energy
Technology (Vietnam) Co., Ltd.
 Shinichiro Sano, Chief Consultant, Mitsubishi UFJ Research and Consulting Co.,Ltd.
 Kei Sato, Associate, Mitsubishi UFJ Research and Consulting Co., Ltd.

E.2. List of documents received
1.

Project Design Document for publication (JCM_VN010_PDD_draft.pdf)

2.

Monitoring Plan Sheet and Monitoring Structure Sheet for publication(JCM_VN010_MPS_draft.xlsx)

3.

Modalities of communications statement for publication ([English]MoC_Hitachi
Chemical.pdf)

4.

JCM Approved Methodology VN_AM009 (JCM_VN_AM009_ver01.1.pdf)

5.

Monitoring Plan Sheet and Monitoring Structure Sheet VN_AM007(JCM_VN_AM009_ver01.1.xlsx)

6.

JCM Modalities of Communication Statement Form
(JCM_VN_F_MoC_ver02.0.pdf)

7.

JCM Project Design Document Form (JCM_VN_F_PDD_ver02.0.pdf)

8.

JCM Validation Report Form (JCM_VN_F_Val_Rep_ver01.0.docx)

9.

JCM Guidelines for Developing Project Design Document and Monitoring Report(JCM_VN_GL_PDD_MR_ver02.0)

10. JCM Guidelines for Validation and Verification (JCM_VN_GL_VV_ver01.0.pdf)
11. JCM Glossary of Terms (JCM_VN_Glossary_ver01.0.pdf)
12. JCM Project Cycle Procedure (JCM_VN_PCP_ver03.0.pdf)
13. Product catalog sheet of lead acid battery
14. Conversion formula to calculate the rated capacity of lead acid battery
15. Presentation materials for introducing Hitachi Chemical Energy Technology
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16. Website of Hitachi Chemical Energy Technology (Vietnam) Co., Ltd.
17. Website of Hitachi Chemical Co., Ltd.
18. Report on Completion of M7 Formation Slot's Electric Data Acquisition, dated on
30/11/2017
19. Legal useful life of the operational equipment under Japanese tax regulation
20. layout drawing of lead acid battery production line
23. Calculation summary of the estimated reference emissions of Year 2018,
achieved by the proposed JCM project
24. Guideline for legal requirement of environmental impact assessment in Viet Nam
25. The minutes of the local stakeholder consultation meeting, including theinvitation letter and the attendees' list
26. Presentation materials for the local stakeholder consultation
27. Energy consumption monitoring data of the production management system(example) for the project container formation facitilies
28. Production catalogues or specifications of lead acid battery, including
identification number and the capacity of lead acid battery type
29. Production catalogues or specifications of measuring equipment (WHM) for
electricity consumption in the project factory
32. IGES List of Grid Emission Factors (Update version 9.2: Database updated withmost recent available data as of July 2017)
33. Ch.1 Vol.2 of 2006 IPCC Guidelines
35. Calculation report on effect of CO2 emission reductions
36. EIA report
37. EIA approval letter, No.1988/QD-BTNMT, dated 17/08/2017, issued by MONRE
38. Project Design Document for registration(JCM_VN010_PDD_draft_rev181031.docx)
39. Monitoring Plan Sheet and Monitoring Structure Sheet for registration(JCM_VN_AM009_ver01.1_HirachiChemical_rev181031.xlsx)

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Annex Certificates or curricula vitae of TPE’s validation team members, technicalexperts and internal technical reviewers
Statement of competence
Name:

Ms. Sachiko Hashizume

Qualified and authorized by Japan Quality Assurance Organization.

Function
Date of qualification
Validator

2015/11/20

Verifier

2015/11/20

Team leader

2018/6/22

Technical area within sectoral scopes
Date of qualification
TA 1.1. Thermal energy generation

2015/11/20

TA 1.2. Renewables

2015/11/20

TA 3.1. Energy demand

2015/11/20

TA 4.1. Cement and lime production-

TA 4.6. Other manufacturing industries-

TA 5.1. Chemical industry-

TA 10.1. Fugitive emissions from oil and gas
TA 13.1. Solid waste and wastewater
TA 14.1. Afforestation and reforestation

2015/11/20-

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