Monitoring and Verification Plan - cdm.unfccc.int · 4.2.2 Using the MGM_MVP_NGP_EM.xls electronic...

Monitoring and Verification Plan Graneros Plant Fuel Switching Project

June 2003

Prepared by MGM International, Inc. Ayacucho 1435, 9 B C1111AAM Buenos Aires Argentina

Graneros Plant Fuel Switching Project 2 MGM International, Ltda. © Copyright (May 2003) All Rights Reserved

Table of Contents

1. Introduction 3

2. Summary of the project 4

3. Project boundaries 4

4. Estimation and monitoring of GHG emissions reductions 6

4.1 Data required for monitoring of project and baseline emissions 6

4.2 Graneros GHG emissions calculation electronic workbook (MGM_MVP_NGP_EM.xls) 9

4.2.1 Description of the MGM_MVP_NGP_EM_010703.xls electronic workbook 9

4.2.2 Using the MGM_MVP_NGP_EM.xls electronic workbook 10

5. Quality control (QC) and quality assurance (QA) procedures are being undertaken for data monitored. 20

6. Information management system for data monitoring 21

Graneros Plant Fuel Switching Project

Graneros Plant Fuel Switching Project 3 MGM International, Ltda. © Copyright ( 2003) All Rights Reserved

MONITORING AND VERIFICATION PLAN 1. Introduction The Monitoring and Verification Plan describes the procedures for data collection, and auditing required for the project, in order to determine and verify emissions reductions achieved by the project. This project will require only very straightforward collection of

data, described below, most of which is already collected routinely by the staff of Nestlé’s Graneros Plant, where the proposed CDM project is to be implemented.

The Monitoring and Verification Plan (MVP) document fulfills the CDM Executive Board

requirement that CDM projects have a clear, credible, and accurate set of monitoring and verification procedures. The purpose of these procedures is to direct and support

continuous monitoring of project performance and periodic auditing, verification and certification activities to determine project outcomes, in particular in terms of greenhouse gas (GHG) emission reductions. The MVP is a vital component of project design, and as such is subject to a formal third-party validation process —along with the project baseline

and other project design features.

Managers of the Project must maintain credible, transparent, and adequate data estimation, measurement, collection, and tracking systems to successfully develop and maintain the

proper set of information to undergo an audit for a greenhouse gas (GHG) emission reduction investment. These records and monitoring systems are needed to subsequently

allow an Operational Entity to verify project performance as part of the verification and certification process. In particular, this process reinforces the fact that GHG reductions are real and credible to the buyers of the Certified Emissions Reductions (CERs). This set of information will be needed to meet the evolving international reporting standards

developed by the UNFCCC.

The document must be used by the project implementers and operators of the Technical Department of Nestlé’s Graneros plant. Strict adherence to the guidelines set out in this

monitoring plan is necessary for the project managers and operators to successfully measure and track project impacts for audit purposes. MGM International will provide

capacity building to the Technical Department of Nestlé’s Graneros Plant in order to meet the requirements presented in this MVP.



2. Summary of the project The Graneros Plant Fuel Switching Project (Project) activity primarily aims at reducing GHG emissions through fuel switching. The project consists of investment to replace the

use of coal and other fossil fuels by natural gas, partially funded through the sale of carbon credits in the context of the Clean Development Mechanism (CDM) of the Kyoto Protocol.

Currently, coal (and, to a lesser extent, other fossil fuels) is used to generate steam and process heat, with a consumption of 11,400 t/year. The extra income derived from the sale

of carbon credits will allow Nestlé to pay for part of the conversion, keeping in mind the low prices of coal in comparison with natural gas. The project has the capacity to produce 348,090 tonnes of CO2-equivalent emissions reduction over a 21-year time frame. The Project also brings social (employment, health, and labour conditions), environmental (air

quality) and economic benefits, and contributes to sustainable development objectives of the Chilean Government.

3. Project boundaries The project boundaries define the technical extent to which the effects of the project must

be measured, monitored and verified. These boundaries determine which environmental impact arising as a result of project implementation should be monitored, the criteria used to judge adequate performance, and the design of indicators.



Table 3.1: Direct and indirect emissions on - and off -site in the project and baseline scenarios

Emissions Project Scenario Baseline Scenario

Direct

on-site There are emissions of CO2 associated with use of natural gas for the production of heat on site. Methane (CH4) and nitrous oxide (N2O) emissions from natural gas combustion at plant site. Methane (CH4) emissions from natural gas leakage at plant site.

CO2 emissions from coal and petroleum fuel combustion at plant site in the baseline. Methane (CH4) and nitrous oxide (N2O) emissions from coal and petroleum fuel combustion at plant site in the baseline.

Direct

off-site Methane (CH4) emissions from natural gas production, pipeline leakage (natural gas pipeline outside project site). If the source of natural gas is an Annex 1 country, then methane emissions in gas production and the part of the transmission pipeline in that country should be excluded.

Methane (CH4) emissions related to coal mining, provided the coal originates in an non-Annex 1 party.

CO2 emissions from coal transport within the country of the project and in other non-Annex 1 parties.

Indirect

on-site Power plant CO2 emissions from electricity use at the plant site – excluded, since there is no change, with respect to the baseline, as a result of the project

Power plant CO2 emissions from electricity use at the plant site – excluded, since there is no change, with respect to the baseline, as a result of the project.

Indirect

off-site This would include, e.g. the emissions associated with gas pipeline construction to bring natural gas to the project site area. This is not included, since there are likely to be many other users as well, and in each case there will be reduced CO2 emissions from fuel switching. Excluded.

Not applicable.



4. Estimation and monitoring of GHG emissions reductions

This section presents the methods for collecting data, estimating GHG emission reduction, and maintaining the documents to support and verification of the Project´s GHG emissions. A customized procedure was developed in the form of the Project’s GHG emission electronic worksheets (MGM_MVP_NGP_EM_010703.xls), which must be used by project implementers and operators of the Technical Department of Nestlé’s Graneros plant, complement the instructions presented in this section.

GHG emission impacts for the project are estimated by comparing emissions “with project” (project emission scenario) to emissions “without project” (baseline emission scenario). The emission reductions equal the baseline emissions minus the project emissions.

4.1 Data required for monitoring of project and baseline emissions This is divided into project’s GHG and non-GHG related data, as well as baseline monitoring data, as follows:

• m3 of natural gas used for the plant • Quantities of any other fossil fuels still used in the plant, e.g. coal, diesel, LPG. (if

applicable) • Survey of the technology used at the Nestlé Graneros plant, including inventory of

all fossil fuel using equipment; this survey will be conducted annually; • Production of the plant



Table 4.1. Data to be collected in order to monitor emissions from the project activity, and how these data will be archived:

ID number Data type

Data variable

Data unit

Measured (m), calculated (c) or

estimated (e)

Recording frequency

Proportion of data to be monitored

How will the data be archived? (electronic/

paper)

For how long is archived data to be

kept? Comment

D.3.1 Volume of natural gas consumed

MFCNG m3 m Month 100% Paper (field record) Electronic (spreadsheet)

Paper:1 year, Electronic: 7 years

D.3.2

Quantity of coal used, if any after project implementation

MFCCoal kg m Month 100% Paper (field record) Electronic (spreadsheet)


D.3.3

Quantity of diesel used, if any after project implementation

MFCDiesel liter m Month 100% Paper (field record) Electronic (spreadsheet)


D.3.4

Quantity of LPG used, if any after project implementation

MFCLPG kg m Month 100% Paper (field record) Electronic (spreadsheet)


D.3.5 Equipment survey N.A. m Year N.A. Electronic Electronic: 7 years

Not to be considered for emission reduction calculations

D.3.6 Volume of production VP tonnes m Month 100% Electronic

(spreadsheet) Paper: 1 year Electronic: 7 years

Not to be considered for emission reduction calculations



Project non GHG-related data The following non GHG-related data are also required:

• Company’s internal health record: the company will monitor occupational health in order to detect if the company has substantially improved the health condition of its employees. This program will be based on internal health records; and records of absenteeism due to sickness

• In addition, the company will aim at maintaining its existing internal programs related to social and environmental quality, which also serve as indicators of the company’s commitment to social and environmental quality.

The following table shows where relevant data will be collected and kept.

Data How often generated

Format of data (paper / electronic)

Team/individual responsible for

its management

How long data records stored

Social:

Company’s internal health records

Daily

Paper (field record) Electronic (spreadsheet)

HR manager Project lifetime

Records of absenteeism due to sickness

Daily

Paper (field record) Electronic (spreadsheet)

HR manager Project lifetime

Regulatory and other:

Host Country approval and other regulatory documents

Once Electronic / paper

Technical Department

Project lifetime

Baseline assessment, MGM_CO2Model outputs

Once, and yearly Electronic Technical

Department Project lifetime

Validation and other documents related to the Operation Entity

Every 7 years Electronic Technical

Department Project lifet ime



4.2 Graneros GHG emissions calculation electronic workbook (MGM_MVP_NGP_EM.xls) All the project specific GHG-related data collected, as described above, will be fed into the

MGM_MVP_NGP_EM_010703.xls spreadsheet. This model was developed for use by Nestlé’s Graneros Plant as its electronic GHG monitoring and calculation workbook. The

electronic workbook serves as the data management system for the project managers and operators of the Technical Department of Graneros plant, and will be used throughout the

lifetime of the project.

The MGM_MVP_NGP_EM_010703.xls spreadsheet is similar to that used in order to determine baseline emissions and estimate project emissions (see PDD). The assumptions

regarding heating value and emissions factors of fuels are the same in each case, and are unchanged throughout the project (see in the PDD). The baseline emissions are estimated in a

dynamic manner from data entered into the MGM_MVP_NGP_EM_010703.xls spreadsheet. The spreadsheet thus determines emissions reductions as a result of project implementation.

The staff responsible for Project monitoring must complete the electronic worksheets on a

monthly basis. Given that some of these data may be collected more frequently, data need to be aggregated to allow monthly inputs into the spreadsheet. The spreadsheet, automatically

provides annual totals in terms of GHG reductions achieved through the substitution of coal, diesel and LPG by natural gas in the production of Nestlé Graneros Plant operations.

4.2.1 Description of the MGM_MVP_NGP_EM_010703.xls electronic workbook

The MGM_MVP_NGP_EM_010703.xls analyses the emissions associated with fuel switching. The model contains a series of worksheets with different functions:

• Data entry sheet (Fuel consumption)

• Calculation sheets for each fuel type (Natural gas, Coal, Diesel, LPG); • Result sheet (Emiss. Red.)



4.2.2 Using the MGM_MVP_NGP_EM.xls electronic workbook The only worksheet where the user (Nestlé Graneros Plant, NGP, staff) is allowed to enter

data is the ‘Fuel consumption’ data entry sheet. Even in this sheet, only those cells where NGP staff are required to enter data have been left unblocked. All other cells contain model fixed parameters or computed values which cannot be modified by NGP staff.

A color-coded key is used to facilitate data input. The key for the code is as follows:

• Input Fields: Pale yellow fields indicate cells where project operators are required to

supply data input, as is needed to run the model;

• Result Fields: Green fields display key result lines as calculated by the model.

A printout of the data entry sheet “Fuel consumption” is shown in the following page.

Other sheets are shown in subsequent pages. All fields in these sheets include fixed values, or

values that are computed from data in the data entry sheet. The last sheet shows the results, comparing year-by-year GHG emissions with the project with baseline values in order to

determine annual emissions reductions, shown in the last column.



5. Quality control (QC) and quality assurance (QA) procedures are being undertaken for data monitored.

Nestlé Chile S.A. has a series of internal procedures with respect to quality control and rigorous calibration procedures for its instruments. Nestlé S.A. will use these procedures to ensure that data collected for the project are subject to the most rigid quality control procedures.

Data Uncertainty level of data (High/Medium/Low)

Are QA/QC procedures planned for these data? Outline explanation why QA/QC procedures are or are not being planned.

D.3.1 Low Yes These data will be directly used for calculation of emissions reductions

D.3.2 Low Yes These data will be used as supporting information to calculate emission reductions by project activity



D.3.5 Low No Not to be considered for emission reduction calculations D.3.6 Low No Not to be considered for emission reduction calculations



6. Information management system for data monitoring All electronic data will be backed up on a monthly basis, and two electronic copies of each

document will be kept in different locations. These locations are: Graneros Plant and Head Office in Santiago.

Monitoring and Verification Plan - cdm.unfccc.int · 4.2.2 Using the MGM_MVP_NGP_EM.xls electronic...

Documents

Transcript of Monitoring and Verification Plan - cdm.unfccc.int · 4.2.2 Using the MGM_MVP_NGP_EM.xls electronic...