Become Our Partner in CDM Project Development
There is a huge sector to be served related to the GHG reduction goals in each country. Collaboration between Polar Design Studio and your business venture will be highly beneficial in realizing the full financial potential of this emerging market. Your business venture will perform a preliminary screening and identify potential projects at its end and provide project details to Polar Design Studio.
Polar Design Studio team will review the project for GHG reduction potential and request more details from your business venture to compile a baseline emission and projected reduction in the next 10 or 21 year cycle.
In collaboration with your business venture, Polar Design Studio will develop a preliminary economic analysis providing project development, validation and verification cost and potential saving from carbon dioxide credits and to determine economic viability of the project.
Your business venture will share the preliminary project cost-benefit analysis of the project with the project developer and obtain their consent to proceed with the project for CDM mechanism. Your business venture will inform about the project to the Designated National Authority (DNA) of the host country such as Ministry of Environment to facilitate a letter of no objection.
In consultation with your business venture and the project developer, Polar Design Studio will develop ‘Project Information/Idea Notes’ (PIN) for registration with UNFCCC.
If the PIN is acceptable to UNFCCC CDM, Polar Design Studio will solicit a project sponsor to support the project development. A preliminary understanding will be developed with the sponsor for investing in the project development and owning the carbon reduction credits for a specified period and agreed rate.
The following steps will be completed for project initiation and commissioning in collaboration with (1) project sponsor, (2) Polar Design Studio, (3) designated validation and verification body (4) project developer and (5) your business venture:
1. Project Information/Idea Notes’ (PIN)
2. Letter of Intent (LoI)
3. CDM Project Due Diligence
4. Baseline Study (BLS) and Monitoring Plan (MP)
5. Letter of Approval (LoA)
6. Project Design Document (PDD)
7. Validation and Registration
8. Initial Validation and project commissioning
9. Monitoring, Verification and Certification
10. Transfer of emission reduction (carbon credits)
Our CDM Project Development Experience
S. Fazalilahi & Sons (Pvt) Ltd., Fuel Switch CDM Project
Polar Design Studio and its subsidiary Silica Solar LLC developed CDM PDD for S. Fazalilahi & Sons (Pvt) Ltd., Karachi, Pakistan in 2011 and arranged a buyer from Italy to purchase all CER (carbon credits) for a period of 10 years:
The CDM project comprised of Fuel Switch from furnace oil to natural gas, a Waste Heat Recovery System and a Biomass boiler at the manufacturing facilities located in Karachi and Lahore. In 2005 the S. Fazalilahi & Sons Pvt. Ltd (SFSPL) management board decided to switch both facilities to a less carbon intensive fuel, natural gas for electricity generation needs and to reduce greenhouse gas emissions in the manufacturing of recycled textile products. The project activity involves the installation of two GE Jenbacher Gas Engines of 1064 kW capacity each at Unit I in Karachi and one GE Jenbacher Gas Engine of 1064 kW capacity at Unit II, Lahore and retrofitting Thermax Two (Thompson Cochran) Steam Boilers of 7.5 TPH (tons/hr) steam pressure of 10 (bar) and a temperature of 175° C at Unit II in Lahore.
Polar Design Studio services included gathering data for determining project baseline and estimation of CER generation; assessment and determination of project additionality, Documenting supporting annex, Developing the Project Design Document (PDD) on standard UNFCCC format using the applicable methodology for CER estimation and project validation; Facilitating buyer for direct purchase of primary CERs, negotiating the CER price and the Pre- ERPA terms for the final ERPA with the buyers on behalf of the project owner, S. Fazalilahi & Sons Private Limited. Conducting project Due Diligence, DOE Validation support for project registration with CDM Executive Board, developing and implementation of project Monitoring plan, yearly monitoring report writing for CER verification and release by the CDM Board
LalPir Thermal Power Energy Efficiency Improvement CDM Project
Energy Efficiency Improvement Project Through Retrofitting of Steam Turbines at LalPir Thermal Power Plants, Muzaffergarh , Pakistan
The Lalpir Power and Pakgen Power Plant consists of two oil-fired steam turbine generator units with designed gross capacities of 362 MW and 365 MW respectively . Each unit is a steam-turbine, heavy-fuel-oil (HFO) fired electric generating unit. The project involved replacing existing steam turbine rotor assembly with a high performance and high reliability steam turbine rotor assembly for High and Intermediate pressure (HIP) and Low Pressure (LP) turbines. Lalpir Power and Pakgen power retained Mitsubishi Heavy Industries, Limited for the project implementation.
The two existing turbines built on 1990s technology in Japan started their operation in November, 1997 (1). The low-energy efficiencies of the turbines are responsible for a decrease in the generation efficiency of the power plant. The project activity aimed at increasing the efficiency rate of the turbines by approximately 1.5%, relative to the baseline. As a result ofthe power plants will achieve lower heavy fuel oil consumption rates and CO2 emissions from the power plant will be reduced. The rotor retrofit project of turbines boosted steam efficiency of Unit 1 and Unit 2 with a combined net heat rate improvement calculated to be 147 kJ/kWh. The turbine retrofit project reduced emissions by 49,083 tCO2e per year and reduce heavy fuel oil consumption by 15,697 tons per year.
Conducted Carbon Offset Potential Project Preliminary Analysis for the Companies
Brothers Sugar Mills Limited, 13 MW Bagasse Fired Co-generation Plant CDM CER Potential Analysis
|Preliminary CER estimate for Sugar Mills Cogeneration Plant|
|■ For a 13 MW generation capacity and if a crushing season lasts for 120 days, then MWh generated are||37,440|
|■ For an average Wapda grid combined margin factor (based on Pakistan Energy Book 2005-2006) of 0.48 tCO2e/MWH, carbon credits generation/year=||17,971|
|■ At the current market price of primary CER in Euros of € 10, the CDM revenue potential per year in €||179,712|
|■ The CDM revenue potential during 21 years of project cycle in €||3,773,952|
Haseeb Waqas Group, Pakistan Distillery Plant Effluent Methane Recovery Biogas Generation Project, CDM CER Potential Analysis
|Preliminary estimation of CER generation from Distillery Plant Effluent Methane Recovery Biogas Generation Plant|
|Distillery capacity, alcohol in liters per day||125,000|
|For distillery operation of 120 days/year, spent wash production @ 1600-1875 m3/day in m3||192,000|
|For an inlet COD of 100,000 mg/l and a 65% removal efficiency, methane gas recovered per year in tons carbon dioxide equivalent (tCO2e)||57,284|
|Carbon credits (CERs) generation potential per year||57,284|
|At an average CER market price of € 10, CDM revenue potential per year, €||572,840|
|The CDM CER revenue potential during 10 years of project cycle, €||5,728,400|
JDW Group (formally United) Sugar Mill Bagasse Boiler and JDW Trash Boiler CDM Project
1) High pressure boiler at United Sugar Mills: installing a 65 bar high-pressure boiler that will produce an additional 15 MW of electricity from the same amount of bagasse. This electricity will be exported to the national grid.
2) Trash boiler at JDW Sugar Mills: installing a trash boiler that will produce up to 10 MW of additional electricity to be fed to the national grid
In additional to carbon credits from 10 MW trash boiler turbine generator system, additional CER may be generated from sugar cane trash burned in the boiler if it is determined that existing sugar cane trash disposal practice cause methane gas generation which is 21 times more potent in global warming than carbon dioxide
|Preliminary Estimation of CER for the Sugar Mills Cogeneration|
|■ For a 15 MW generation capacity and if a crushing season lasts for 120 days, then MWh generated are||43,200|
|■ For an average Wapda grid combined margin factor (based on Pakistan Energy Book 2005-2006) of 0.48 tCO2e/MWH, carbon credits generation/year=||20,736|
|■ At the current market price of primary CER in Euros of € 10, the CDM revenue potential per year in €||207,360|
|■ The CDM revenue potential during 21 years of project cycle in €||4,354,560|
|Preliminary Estimation of CER from trash boiler based 10 MW capacity power generation at JDW Sugar Mills|
|■ For a 10 MW generation system on trash boiler, MWh generation for 120 days per year operation||28,800|
|■ For an average Wapda grid combined margin factor (based on Pakistan Energy Book 2005-2006) of 0.48 tCO2e/MWH, carbon credits generation/year=||13,824|
|■ At the current market price of primary CER in Euros of € 10, the CDM revenue potential per year in €||138,240|
|■ The CDM revenue potential during 21 years of project cycle in €||2,903,040|
Sachal Engineering Works (Pvt) Limited CDM Project Development for 4.8 MW Riali-II Hydropower Project, Muzaffarabad, Pakistan
To develop CDM Project for 4.8 MW Riali-II Run-of- the-River without Reservoir Hydropower Project, on River Ghoriwala Nullah about 10 kms upstream of Muzaffarabad
|Preliminary estimation of CER 4.8 MW Riali-II Hydropower Project|
|Annual generation (Net) of 4.8 MW Riali-II Hydropower Project, accoding to feasibility||26,910 MWh|
|Mode of operation Grid interconnection||PESCO, Wapda Grid|
|■ For an average Wapda grid combined margin factor (based on Pakistan Energy Book 2005-2006) of 0.48 tCO2e/MWH, carbon credits generation/year||12,917|
|■ The CDM revenue potential during 21 years of project cycle in €||2,712,528|
Sana Industries, Karachi Waste to Energy CDM Project
|Project Activity Description||$|
|Power generation at 2 MW with 75% CF, MWh|
|Total bill saving at KESC existing Tariif, $/kWh||1,051,200|
|Carbon credit from grid electricity offsetCarbon credit saving from CER sale||39,157|
|Carbon offset from methane avoidance Carbon credit saving from CER sale||8,951|
|Total saving per year||1,099,308|
|Total waste required per day, tons/day||40|
|Plant capital investment for 2 MW WtoE project||3,000,000|
|Operating cost at rate of 5% of capital cost||150,000|
|Waste collection waste for 40 tons waste/day||131,400|
|Cost of financing @12% for 10 years||($530,952)|
|Total cost per year||812,352|
|pay back If we include waste heat recovery for steam, MWh In mmbtu||286,955|
|NG saving at rate of Rs 480 per mmBtu||258,426|
|Total saving including heat recovery||1,357,734|
Tuwairqi Steel Mills Limited, CDM Project Development for Gas Turbine Exhaust Waste Heat Recovery Boiler Steam Turbine Generator
|Preliminary estimation of CER for the Heat Recovery exhaust energy Steam Boiler turbine generator|
|■ For 90% availability of Heat Recovery exhaust energy Steam Boiler turbine generator= 12 x 8760 x 0.90||94,608|
|■ For an average KESC combined margin grid factor of 0.70 tCO2/MWh CER/year||66,226|
|■ The CDM revenue potential during 21 years of project cycle in €||13,907,376|
|Preliminary estimation of CER for the DRI Waste Heat Recovery Steam Boiler turbine generator|
|■ For 90% capacity factor of DRI Waste Heat Recovery Steam Boiler turbine generator= 3 x 8760 x 0.90||23,652|
|■ For an average KESC combined margin grid factor of 0.70 tCO2/MWh CER/year||16,556|
|■ The CDM revenue potential during 21 years of project cycle in €||3,476,844|
Renewable Resources (Pvt) Ltd 49.5 MW Wind Power Project, Jhimpir Sindh‐ Pakistan
CDM services for 49.5 MW Wind Power Project, Jhimpir Sindh‐ Pakistan in response to your RFP (Doc. RE2‐161‐104‐002 Issue: 01) for consultancy services for development of CDM project.