JCM_SA_F_Vrf_Rep_ver02.0

JCM Verification Report Form
A. Summary of verification
A.1. General Information
Title of the projectIntroduction of High Efficiency Electrolyzer in
Chlor-Alkali Production Plant

Reference number

SA001

Monitoring period

25/01/2017 – 31/08/2018

Date of completion of the monitoring report

06/02/2019

Third-party entity (TPE)

Lloyd's Register Quality Assurance Limited(LRQA)

Project participant contracting the TPE

Kanematsu Corporation

Date of completion of this report

25/02/2019

A.2 Conclusion of verification and level of assurance
Overall verification opinion

Positive
Negative

Unqualified opinion

Based on the process and procedure conducted, Lloyd's
Register Quality Assurance Limited (LRQA) (TPE’s name)provides reasonable assurance that the emission reductions
for Introduction of High Efficiency Electrolyzer in ChlorAlkali Production Plant (project name)

Are free of material errors and are a fair representationof the GHG data and information, and

Are prepared in line with the related JCM rules,
procedure, guidelines, forms and other relevant

documents(If overall verification opinion is <State the reasons>negative, please check below and
Not applicablestate its reasons.)
Qualified Opinion
Adverse opinion
Disclaimer
A.3. Overview of the verification results
Item

Verification requirements

No CAR or CL
remainingThe

project The TPE determines the conformity of the actual
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B. Verification team and other experts

Mr.
Ms.

Name

Company

Function*

Michiaki
Chiba

LRQA Ltd.

Team
leaderSchemecompetence*

Mr.
Internal
Stewart Niu LRQA China
Ms.
reviewer
Mr.
Ms.
Mr.
Ms.
Please specify the following for each item.

Technical
competence*

Onsitevisit

Technical
competenceauthorised
N/A* 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 verification, findings and conclusions based on reporting requirements
C.1. Compliance of the project implementation and operation with the eligibility criteria of theapplied methodology<Means of verification>
LRQA has determined during the verification process that the actual implementation andoperation of the project has been conducted in conformance with the eligibility criteria of theapplied methodology.
The project applied the approved methodology: JCM_SA_AM001_ver01.0 Introduction ofHigh Efficiency Electrolyzer in Chlor-Alkali Processing Plant, Version 01.0.
LRQA assessed by means of an on-site visit that the physical features of the project are in place
and that the PPs have operated the project as per the eligibility criteria of the applied
methodology. The steps taken to verify each eligibility criterion and the conclusions about
implementation of the project are summarised as below.
Criterion 1: Project electrolyzer employs an ion-exchange membrane technology inelectrolyzers in the manufacturing process of chlor-alkali and the electrolyzer is the bipolar
type.
Justification in the PDD: The project installs the bipolar type ion exchange membrane (IEM)3

JCM_SA_F_Vrf_Rep_ver02.0

brine electrolyzers system in chlorine and caustic soda production process in Jubail Industrial
City.
Steps taken for assessment: The verification team assessed the project documentation, technicalspecification, the commissioning report, and conducted physical on site assessment.
Conclusion: The verification team confirmed that the project installs the bipolar type ion
exchange membrane brine electrolyzers in the chlorine and caustic soda production process ofJubail Chemical Industries Company (JANA) and the criterion is met.
Criterion 2: Specific electricity consumption (SEC) for project electrolyzer i under the standard
conditions, 32% NaOH and 90 degrees Celsius is less than threshold SEC values set in the tablebelow under the standard conditions, 32% NaOH and 90 degrees Celsius;
CD (Current density) [kA/m2]

Threshold SEC value of the electrolyzer[kWh(DC)/t-NaOH]

4.0 ≤ CD < 4.5

2,045

4.5 ≤ CD < 5.02,088

5.0 ≤ CD < 5.52,131

5.5 ≤ CD < 6.02,174

5.5 ≤ CD < 6.0

2,217

Project specific electricity consumption is derived from specifications based on initial
performance test by manufacturer.
Justification in the PDD: The project SEC derived from the specification of the projectelectrolyzer is 1990 kWh(DC)/t-NaOH when CD is between 4.5 and 5.0, and is less than thethreshold SEC value (2,088 kWh(DC)/t-NaOH).
Steps taken for assessment: The verification team assessed the project documentation, technicalspecification, the commissioning report, and conducted physical on site assessment.
Conclusion: The verification team confirmed that the project SEC derived from thespecification is 1990 kWh (DC)/t-NaOH when CD is between 4.5 and 5.0 that is less than thethreshold SEC value of 2,088 kWh(DC)/t-NaOH and the criterion is met by the project.
The verification team confirmed that the eligibility conditions are satisfied by the project byreviewing the supporting documents and the on site assessment.
The details of the persons interviewed and the documents reviewed are shown in the Section Fof this report.
<Findings>
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Please state if CARs, CLs, or FARs are raised, and how they are resolved.
No issue was raised to the requirements of this section.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
The verification team confirmed that the project has been implemented in conformity with theeligibility criteria of the applied methodology.
C.2. Assessment of the project implementation against the registered PDD or any approved
revised PDD<Means of verification>
The project upgrades the existing elements of ion exchange membrane (IEM) brineelectrolyzers to the latest model which will contribute to reducing energy consumption inchlorine and caustic soda production process of JANA in Jubail Industrial City, Eastern
Province, the Kingdom of Saudi Arabia. The bipolar electrolyzer consists of multiple elements,
which have cathode and anode chambers, and IEMs are installed between each element. The
latest high efficiency model is developed for optimum performance design by optimizing
elements' inner structures and electrode shape, reducing resistance (lowering the voltage) ofvarious components and preventing the mechanical damage for IEM thus achieving lower
power consumption and contributing to energy saving.
The project is implemented by JANA from the The Kingdom of Saudi Arabia and Kanematsu
Corporation from Japan. The start date of project operation is on 25/01/2017 and the expected
operational lifetime of the project is for 5 years.
The project receives financial support for JCM model projects from the Ministry of theEnvironment, Japan (MOE).
The verification team assessed the Monitoring Report (MR) that consists of Monitoring Report
Sheet (MRS) parts of the Monitoring Spreadsheet and the supporting documents, conducted aphysical site visit to assess the status of the actual project and its operation in accordance withthe registered PDD. No revision to the registered PDD was requested.
The verification team determined through the verification process that the implementation andoperation of the project has been in accordance with the description contained in the registered
PDD. The verification team, by means of a desk review and an on-site visit, assessed that:- all physical features of the JCM project described in the registered PDD are in place, and- the PPs have operated the JCM project as per the registered PDD.
The MR follows the Monitoring Plan (MP) of the registered PDD that has been establishedbased on the approved methodology. The parameters to be monitored ex-post is (1) EC_PJ,i,pPower consumption of project electrolyzer during the period p (in MWh/p). Electricity (DC)consumption of the 4 electrolyzer units upgraded by the project is directly and continuously
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measured by cell voltage meters and electric current meters.
The roles and responsibilities of the persons are described in the Monitoring Structure Sheet(MSS) in accordance with the requirements of the applied methodology. There was no change
in the organizational structure during the monitoring period.
Through the processes taken, CAR 1 and CL 1 were raised as the resolution detailed below.
The details of the persons interviewed and the documents reviewed are shown in the Section Fof this report.
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
Grade / Ref: CAR 1
Nature of the issue raised: The measurement methods and procedures including the details of
calculation and QA/QC procedures needed to be described in the monitoring report sheet that
includes the description of the measuring equipment, details on accuracy level and thecalibration information (frequency, date of calibration and validity).
In doing this, the PPs should clarify:1) How the PPs conduct checking of data measured and transferred for calculation,2) Procedures to correct the measured data under irregular operations and confirm relevanceand conservativeness if applicable, and
3) The details of the measurement equipment for electric current (kA) and QA/QC procedures
applied.
Nature of responses provided by the PPs: The PPs submitted the revised MR including thedetails of calculation and QA/QC procedures with supporting documentation.
Assessment of the responses: The verification team reviewed the revised MR and the
supporting documentation and confirmed implementation of the monitoring during themonitoring period in accordance with the registered MP. The PPs applied conservative
calculation of the ERs by assuming the data during the days under irregular operational
conditions, e.g. stop and re-start of the plant unit, as zero. As the result, the ERs were reduced
from 3,027 tCO2 to 3,000 tCO2 in year 2017 and from 2,325 tCO2 to 2,300 tCO2 in year 2018.
The CAR was closed.
Grade / Ref: CL 1
Nature of the issue raised: The PPs were requested to clarify implementation of the procedures
to keep the relevant data and information required for the verification and issuance be kept andarchived electronically for two years after the final issuance of the credits.
Nature of responses provided by the PPs: The PPs submitted the revised MR that was addedreference to the monitoring procedures applied for clarification.
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Assessment of the responses: The verification team reviewed the revised MR with themonitoring procedures being applied by the PPs and confirmed implementation of theprocedures including the required data keeping as appropriate.
The CL was closed.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
The verification team confirmed that the project was implemented and operated in accordancewith the registered PDD and no revision to the same was requested for the monitoring period.
C.3. Compliance of calibration frequency and correction of measured values with related
requirements<Means of verification>
The parameter No. (1) EC_PJ,i,p applies the monitoring Option C and the monitoring of theparameter uses cell voltage meters and electric current meters as the measuring equipment. The
measurement of electricity consumption by the project electrolyzers is not a trade measurement
and the regulations of the host country on measurement and calibration are not applicable.
The PPs apply calibration of the measuring equipment in the monitoring procedures based onrecommendation of the equipment suppliers. In resolution of CAR 1 in the above Section C.2.,
the PPs revised the monitoring procedures and applied calibration frequency of every year forboth cell voltage meters and electric current meters. The calibration was conducted on
22/12/2016 and 02/01/2018 for cell voltage meters. The monitoring period is from 25/01/2017
to 30/09/2018 and the period from 22/12/2017 to 01/01/2018 was not covered by the valid
calibration. The calibration was conducted on 24/01/2019 for the electric current meters that
was after the monitoring period. The results of all the delayed calibration confirmed that theerrors were within the standard of permissible errors and there was no error exceeding +/- 5%
to which correction of measured data is required by the JCM Guidelines.
The details of the persons interviewed and the documents reviewed are shown in the Section Fof this report.
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
Please refer to CAR 1 and the resolution details in the above Section C.2.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
The verification team confirmed that delayed calibrations were applied to the measuring
equipment and no correction was required to the measured values during the monitoring period.
C.4. Assessment of data and calculation of GHG emission reductions
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JCM_SA_F_Vrf_Rep_ver02.0<Means of verification>
The MR is developed using the MRS applied to the registered JCM project that is confirmed
fulfilment of the requirements of the MRS of the applied methodology.
LRQA has determined that:
1. a complete set of data for the specified monitoring period is available,
2. information provided in the MR has been cross-checked with other sources such as plant log
books, inventories, purchase records, laboratory analysis,
3. calculations of reference emissions (REs) and project emissions (PEs), as appropriate, havebeen carried out in accordance with the formulae and methods described in the MP and theapplied methodology,
4. any assumptions used in emission calculations have been justified, and5. appropriate emission factors, default values and other reference values have been correctly
applied.
The sources of GHG emissions are electricity consumption and CO2 emissions by the referenceelectrolyzers to determine the reference emissions (REs) and electricity consumption and CO2
emissions by the project electrolyzers to determine the project emissions (PEs) in accordancewith the applied methodology.
The REs are calculated by electricity consumption of the project electrolyzers, ratio of specificelectricity consumption (SEC) of the project and the reference electrolyzers, and CO2 emission
factor of the consumed electricity. The CO2 emission factor of the consumed electricity is
0.654 tCO2/MWh as fixed ex-ante at the validation.
SEC of the reference electrolyzers is applied from the default value as 2,088 kWh(DC)/t-NaOH
at the current density between 4.5 and 5.0 kA/m2 and SEC of the project electrolyzers are fixed
ex-ante as 1,990 kWh(DC)/t-NaOH at the validation based on the manufacturer’s performance
guarantee.
The GHG emission reductions during the monitoring period (each for year 2017 and 2018) arecalculated as: ERp = REp - PEp = ∑_i EC_PJ,i,p × SEC_RE,i ÷ SEC_PJ,i × EF_elec - ∑_i
EC_PJ,i,p × EF_elec
From 25/01/2017 to 31/12/2017(23,191.35+23,176.48+23,410.88+23,387.98) x 2,088 / 1,990 x 0.654 tCO2/MWh –(23,191.35+23,176.48+23,410.88+23387.98) x 0.654 tCO2/MWh= 97,754.80 x 0.654 tCO2/MWh – 93,166.69 x 0.654 tCO2/MWh= 63,931.64 – 60,931.02 = 3,000.62 tCO2e
From 01/01/2018 to 31/08/2018(17,786.62+17,771.16+17,938.14+17,922.03) x 2,088 / 1,990 x 0.654 tCO2/MWh –(17,786.62+17,771.16+17,938.14+17,922.03) x 0.654 tCO2/MWh= 74,935.01 x 0.654 tCO2/MWh – 71,417.95 x 0.654 tCO2/MWh8

JCM_SA_F_Vrf_Rep_ver02.0= 49,007.49 – 46,707.33 = 2,300.16 tCO2e
Total electricity consumption in first monitoring period of 20 months (584 days) is 164,584.64
MWh that is 102,865.40 MWh in a year (164,584.64 x 365/584 = 102,936.96) and is 100.7%
of ex-ante estimate in the PDD.
The verification team assessed the reported data with documented evidence and by means ofon site visit.
The details of the persons interviewed and the documents reviewed are shown in the Section Fof this report.

Parameters

Monitored

Method to check values in the monitoring report withvaluessources

EC_PJ,i,pi = 1: 23,191.35 Assessment was conducted based on records of meter(2017)

MWh/preadings and on site assessment.

i = 2: 23,176.48
MWh/p
i = 3: 23,410.88
MWh/p
i = 4: 23,387.98
MWh/p
EC_PJ,i,pi = 1: 17,786.62 Assessment was conducted based on records of meter(2018)

MWh/preadings and on site assessment.

i = 2: 17,771.16
MWh/p
i = 3: 17,938.14
MWh/p
i = 4: 17,922.03
MWh/p<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
Please refer to CAR 1 and the resolution details in the above Section C.2. and below Section
C.6. on the corrections of the monitored data.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
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The verification team confirmed that appropriate methods and formulae for calculating REs
and PEs have been followed. The verification team is of the opinion that all assumptions,emissions factors and default values that were applied in calculations have been justified.
C.5. Assessment of avoidance of double registration<Means of verification>
The verification team assessed and confirmed relevance of the written confirmation from thePPs that the project is not registered under the other international climate mitigation
mechanisms.
The team, in addition to the interviews with the PPs, checked publicly accessible informationof Clean Development Mechanism (CDM), Joint Implementation (JI), Verified Carbon
Standard (VCS) and Gold Standard (GS) and found no identical project as the proposed JCM
project in terms of the name of entities, applied technology, scale and the location. The resultof researches confirmed that the proposed project was not registered under the otherinternational climate mitigation mechanisms than JCM and it will not result in a double
counting of GHG emission reductions.
The details of the persons interviewed and the documents reviewed are shown in the Section Fof this report.
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
No issue was raised to the requirements of this section.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
The verification team confirmed that the project is not registered under other international
climate mitigation programs.
C.6. Post registration changes<Means of verification>
The verification team identified that the parameter EC_PJ,i,p was not monitored in accordancewith the registered MP in some days during the monitoring period when the electrolyzers
stopped operation and re-started and cell voltage measurement showed abnormal values. The
PPs were requested in resolution of CAR 1 in above Section C.2. to justify means of correctionof the abnormal data monitored for assessment of the post registration changes by theverification team. The verification team assessed the project documentation, conducted the onsite visit and confirmed that the post registration changes from the registered MP do not prevent
application of the approved methodology since the PPs assumed that the data is zero if it ismonitored from the days the operation of the project electrolyzers stopped to the days the10

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operation re-started for calculation of the ERs in the revised MR and the verification teamconfirmed that the treatment is conservative as the data is used for calculation of both REs andPEs.
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
Please refer to CAR 1 and its resolution details in the above Section C.2.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
The verification team through the verification processes determined that there was no post
registration change from the registered PDD or approved methodology which prevent from useof the applied methodology.

D. Assessment of response to remaining issues
An assessment of response to the remaining issues including FARs from the validation and/or
previous verification period, if appropriate
No FAR was issued in the validation and this is the first verification of the project.

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E. Verified amount of emission reductions achieved
Year

Verified
Reference Verified Project Emissions Verified
Emission
Emissions (tCO2e)(tCO2e)Reductions (tCO2e)

2013
2014
2015
2016
2017

63,931.64

60,931.02

3,000

2018

49,007.49

46,707.33

2,300

2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Total (tCO2e)

5,300

F. List of interviewees and documents received
F.1. List of interviewees
Jubail Chemical Industries Company (JANA)
B.G. Krishnanand, Lead Process Engineer
Tariq Farooq, Senior Process Engineer
M. Ali Akbar, Lab Section Manager
Muhammad Saleem, Mechanical Section Manager
J. Harikrishnakumar, Section Manager - Operation
Abdul Wajib, Instrument Supervisor-DCS, CVMS & Instrument
G. Anwar Habys, Electrical Supervisor

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Anil Somaiya, Electrical Engineer
Environmental Resource Management (ERM) Japan Ltd.
Tsuyoshi Nakao, Team Leader, Sustainability Management TeamF.2. List of documents received
Category A documents (documents prepared by the PPs)
- Monitoring Report submitted on 20/11/2018- Revised Monitoring Report completed on 25/01/2019 and 06/02/2019- Calculation spreadsheets and the revisions- Technical specification of project electrolyzer- Power supply system diagram- General specification for Cell Voltage Monitoring System- Calibration certificates for Cell Voltage Monitoring System dated 21/12/2017- Calibration certificates for Cell Voltage Monitoring System dated 03/01/2018- Sales contract for bi-polar electrolyzer unit for 44,467 TPY-Chlorine (50,000 TPY-CausticSoda) Chlor-Alkali Plant- Certificate of performance guarantee acceptance dated 25/01/2017- Technical appendix for cell room package- Acceptance certificate dated 25/01/2017- Company profile and project overview- MV&LV single line diagram- Single line diagram - power circuits, measurement – controls, overvoltage protections, DC
site measurements- MX100/MW100 Main unit specifications- Calibration Procedure for Rosemount Smart Transmittes (Pressure, Flow, Level andTemperature)- Calibration Verification Procedure for CVMS System and the revision- Monitoring of Electrolyzers Performance in Chlor Alkali Plant and the revision- Training records dated 20 & 21/12/2016- Preventive Maintenance Report DCS & ESD System dated 12-14/12/2017- Declaration letter from the project participants on avoidance of double registration dated
26/11/2018- Electrolyzer Monitoring Report13

JCM_SA_F_Vrf_Rep_ver02.0- Calibration Procedure for GEFRAN Meter (kA meter)- Calibration Certificate for Current Meters
Category B documents (other documents referenced)- PDD Version 02.0 dated 5/3/2018 including the annexes- Validation Report dated 20/03/2018- JCM_SA_AM001_ver01.0 Introduction of High Efficiency Electrolyzer in Chlor-Alkali
Processing Plant, Version 01.0
- Additional information to the Proposed Methodology “Introduction of High Efficiency
Electrolyzer in Chlor-Alkali Processing Plant”- JCM Project Cycle Procedure JCM_SA_PCP_ver02.0- JCM Guidelines for Validation and Verification JCM_SA_GL_VV_ver01.0- JCM Guidelines for Developing PDD and MR JCM_SA_GL_PDD_MR_ver02.0- JCM Glossary of Terms JCM_SA_Glossary_ver01.0- Approved Small Scale Methodology AMS II.C. Demand-side energy efficiency activities for
specific technologies- Proposed and registered projects under CDM, VCS, Gold Standard, and the other international
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Annex Certificates or curricula vitae of TPE’s verification team members, technicalexperts and internal technical reviewers
Please attach certificates or curricula vitae of TPE’s validation team members, technical experts
and internal technical reviewers.
Certificate of Appointment is attached to this report.

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Joint Crediting Mechanism Certificate of Appointment
Title of Project: Introduction of High Efficiency Electrolyzer in Chlor-Alkali
Production Plant (Ref# SA001)
Verification for the first monitoring period: 25/01/2017 –
31/08/2018
We hereby certify that the following personnel have engaged in the verification process thathas fully satisfied the competence requirements of the verification of the JCM project.

Name of Person

Assigned Roles

Michiaki Chiba

Team Leader

Stewart Niu

Technical Reviewer

Signed byMichiaki Chiba
Climate Change Manager – Asia & Pacific07/12/2018

Lloyd's Register Group Limited, its affiliates and subsidiaries, including Lloyd’s Register Quality Assurance Limited (LRQA), and their respective
officers, employees or agents are, individually and collectively, referred to in this Legal Section as 'Lloyd’s Register'. Lloyd’s Register assumes noresponsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in thisdocument or howsoever provided, unless that person has signed a contract with the relevant Lloyd’s Register entity for the provision of thisinformation or advice and in that case any responsibility or liability is exclusively on the terms and conditions set out in that contract.

MSBSF43618

Revision 0, 20 November 2014