• Electrical India
  • Jan 5, 2017

Carbon Credits For Financing Renewable Projects

It is always useful to recycle the waste material. Recycling process consumes about half of the energy to produce same quantity of products, which would have been otherwise made from the virgin materials...

- Nidhi M J, Shaikh Shamser Ali


 Carbon credit is the tradable commodity and is equivalent to one ton of carbon dioxide reduced or sink from the atmosphere. There are six greenhouse gases and any of these gases if reduced/avoided/sunk from the atmosphere, carbon credits can be earned. These gases are carbon dioxide, methane, nitrous oxide, per fluoro carbons, hydro fluoro carbon and sulphur hexafluoride. Firms in European Union and in other developed countries are buying the carbon credits – called CER (Carbon Emission Reductions) form the Indian firms.

Carbon Emission Reduction

  CERs are registered and issued by the Executive Board of Clean Development Mechanism (CDM) of United Nations Framework Convention on Climate Change (UNFCCC). The Clean Development Mechanism (CDM), defined in Article 12 of the Protocol, allows a country with an emission-reduction or emission-limitation commitment under the Kyoto Protocol (Annex B Party) to implement an emission-reduction project in developing countries. Such projects can earn saleable certified emission reduction (CER) credits, each equivalent to one tonne of CO2, which can be counted towards meeting Kyoto targets.

  As of now 1094 CDM projects have been approved in India. Read Table 1 for details.

Chart 1

Ways To Get Carbon Credits

Carbon Credits Potentials Through Solid Waste Management.

  Solid waste management practices release high quantities of greenhouse gases in the atmosphere. This sector therefore creates significant opportunities for carbon mitigation, which could eventually become tradable carbon credits. Following procedures can be used to reduce/avoid GHG emissions from the waste materials.

a. Avoidance And Utilization Of Methane From The Landfill Side

  Methane (CH4) constitutes approximately 50% of landfill gases, with the remaining 50% being CO2 mixed with small quantities of other gases. If these gases are not collected, would escape to the atmosphere causing global warming. Mitigation/abatement option is available to capture and utilize the methane for energy generation.

b. Energy Generation Through The Process Of Pyrolysis Using Waste As A Raw Material

  Pyrolysis is a thermo chemical decomposition of organic material at elevated temperatures in the absence of oxygen. It creates combustible gases for further use by using organic waste.

c. Energy Efficiency/ Saving Through Recycling Of The Waste Material

  It is always useful to recycle the waste material. Recycling process consumes about half of the energy to produce same quantity of products which would have been otherwise made from the virgin material. As per the Energy Information Administration (EIA) website, a paper mill uses 40% less energy to make paper from recycled material than it does to make paper from fresh lumber.

  Greenhouse Gas emissions reduction by recovering metals and materials through Electronic Waste collection and recycling process performed at Attero Recycling Pvt Ltd plant located in Roorkee, Uttarakhand, India. ANNUAL CER: 4569
Composting Project at Coimbatore in Tamil Nadu, India. The project activity is to treat 600 Tons Per Day (TPD) of Municipal Solid Waste (MSW) in the city of Coimbatore. ANNUAL CER: 121376.

Carbon Credits Potentials Of Solar Power And Wind Power Plant

  From the pie chart 1, about 27% of the electricity is generated form thermal power plants and 13% is form renewable sources. Solar PV projects and Wind power plants are economic friendly and electricity is produced with less emission of Greenhouse gases. Solar or Wind power is used to inject power to the grid, this can replace the power generated from the conventional energy sources thereby reducing the carbon dioxide emissions. Such projects can earn carbon credits in the form of CDM projects.

  24 MW Wind Energy based Power Generation in Theni, Tamil Nadu. ANNUAL CER: 48089.
Grid Connected Solar PV Project by M/s. D. J. Malpani in Rajasthan. ANNUAL CER: 21209.

Carbon Credit Potential From Other Sources

a. Uisng Biogas/Improved Cooking Stoves

  Distribution of improved cooking stoves in the villages of Maharastra: The project activity plans to disseminate the improved cook stoves over a period of time amongst BPL and ST household in rural areas and includes 14250 numbers of cook stoves disseminated amongst the rural households who has signed tripartite agreement from 19 districts of Konkan, Nashik and Pune division in Maharashtra. ANNUAL CER: 14234

  Mahasakthi Women Cooperative Federation is a Community Based Organisation (CBO) and is an apex federation of four Mutually Aided Thrift Cooperative Societies of women. The Federation is registered as Mahasakthi MAC Samakya Ltd. The purpose of the project activity is to set up 6,000 biogas plants (digesters) of 2 m3 capacity each for single households having minimum of two cows and place to build biogas digester in 4 Mandals of Anantapur district where the CBOs is working, and in this way replace Non-Renewable Biomass with biogas for cooking and heating water. This will contribute strongly to sustainable development of the rural households involved in the project. A biogas plant of 2 m3 capacity is sufficient to provide cooking fuel to a family of four to five. Each household will install a 2 m3 biogas plant and feed cattle dung, into the anaerobic digester. The technology is tried and tested in India, and has been in use for many years. By utilizing cattle dung in a controlled anaerobic digestion and combustion system, biogas will be available for cooking energy and heat water for bath. Biogas will be used on a two-ring gas stove having 4" burner with a flame temperature of 870°C, supplied as part of the project activity. The biogas slurry will be used as bio-manure. Implementation of the project depends on the successful validation and registration of the project as a CDM project activity since the project will be financed completely from carbon revenues. After the project is registered as a CDM activity, carbon forward funding will enable the construction of domestic bio-digesters. An end user agreement will be signed between the NGO SUCHI and the end user after construction, wherein the end user is aware of emission reductions from the use of biogas, and are willing to give up their rights and transfer the credit ownership to Mahasakthi Federation. ANNUAL CER: 14570

b. Using Zero Emission Water Purification/ Air Purification Method

  Zero Energy Water Purifier CDM Project in India by Hindustan Unilever Limited: The project activity involves the sale of the zero energy water purifier, Pureit and its cleaning kits (Germ kill Processor) in India. The project activity results in the avoidance of the usage of conventional, energy intensive methods of water purification such as boiling or other thermal or electrical means for obtaining safe drinking water. Thus, the project activity contributes to the reduction in the GHG gas emissions due to conventional methods of water purification and also provides safe drinking water to the consumers of India at an affordable, subsidized price. ANNUAL CER: 1294678.

c. Using Waste Heat Recovery Mechanism

  Waste heat recovery from Circular cooler of Sinter Machine-3 of Rashtriya Ispat Nigam Limited in Visakapatanam, Andhra Pradesh: The project involves utilization of waste heat energy of hot sinter cooler gases. The hot gases coming out of sinter circular cooler will be recovered partially for use as process heat directly into sinter machine extended hood. The hot gases at 275oC are sucked by hot air fan, will be deducted in one multi cyclones to dust content of 200 mg/cum and will be supplied to extended hood at the rate of 315000 cum/hr. Further, hot gases are also supplied to ignition furnace. By supplying hot gases at 275oC as direct heat to sintering. The solid fuel (coke) requirement at sinter machine will be reduced accordingly. ANNUAL CER: 37047.

d. From Agricultural Lands

  Improvement in Energy Efficiency through Micro-Irrigation Systems (MIS) in cultivation of Banana Crop in Jalgaon, Dhule Nadurbar and Nashik districts, Maharastra State, India: The purpose of the project activity is reduction of carbon dioxide emissions associated with grid electricity consumption for pumping of water from bore wells/open wells for cultivation of banana crop. The proposed project will replace Flood Method of Irrigation (FMI) with Micro Irrigation Systems (MIS) that will reduce electricity consumption required for pumping of water. MIS comprises of Drip Method of Irrigation (DMI) that delivers water directly to the root zone of crops resulting in better water use efficiency. MIS reduces working hours in delivering water –and thus reduces the consumption of electricity. MIS also is stated to increase productivity and quality of agriculture product. The project offers a range of other environmental and social benefits. ANNUAL CER: 20448.

e. From Oil & Gas Industries

  Gas Flaring Reduction Project at GGS, Chariali, Sibasagar, ONGC, Assam: Oil and Natural Gas Corporation Limited (ONGC) is one of the largest oil and gas producer of India, engaged mainly in exploration and production of crude oil, natural gas and other value added products. The proposed CDM Project activity includes the installation of 2 gas compressors that recovers the natural gas otherwise being flared during the production and processing at the onshore platform. The project activity involves recovery of the natural gas being hitherto flared through capture and compression and putting it back to the production downstream. The process will lead to the “avoidance of gas flaring” and thereby protecting the environment. The recovery of the gas by compressing it back into the system would be achieved by installation of reciprocating gas compressor installation of pipeline network for drawing flared gas from the flare header to the compressor and from the compressor to the trunk pipeline for further processing. The project activity will thus recover and utilise about 12,266 scmd of natural gas. ANNUAL CER: 7511.

f. With Green Building

  Green Building at Kolkata: ONGC Limited new office building at New town area of Rajarhat in Kolkata is built with a consideration towards sustainable development, and to minimize the environmental impact due to the building construction and operation activity, ONGC Limited has decided to follow the New Construction (NC) standards under Indian Green Building Council - Leadership in Energy and Environmental Design (IGBC- LEED) Green Building Rating System. The building is being constructed as per the of the Platinum Rating standards & this is in spite of the fact that following the design standards for platinum rating significantly increases the capital cost of the building when compared to the cost of the building which would have been constructed otherwise. The benefit of the savings due to the reduction in energy consumption does not often adequate return on the incremental capital cost of the buildings. Thus, ONGC has decided to implement the project as CDM project. The proposed CDM project activity will assist the sustainable growth of West Bengal state by reducing the dependence on fossil fuel intensive power from Northern, Eastern, Western and North Eastern (NEWNE) grid. ANNUAL CER: 1756.

g. Using Energy Efficient Lighting

  Uttar Pradesh Lighting Energy Efficiency Project (ULEEP) in EDD I ALLAHABAD & EDD Kaushambhi & Fatehpur Divisions of Allahabad Zone, Uttar Pradesh, India: The purpose of this project is to distribute New self-ballasted Compact Florescent Lamps (CFLs), at a price comparable to that of Incandescent Lamp (ICL), to domestic consumers of EDD Allahabad and EDD Kaushambhi, Fatehpur divisions of Allahabad Zone of Purvanchal Vidyut Vitaran Nigam Limited (PUVVNL) in Allahabad District, Uttar Pradesh India. This project targets to discount & distribute approximately 255,791 New CFLs to the eligible consumers in the project area. The CFL would be distributed in exchange of a less energy efficient (i.e., higher wattage, equivalent luminosity) Incandescent Lamps (ICL). New CFLs will be distributed only to registered consumers of the PUVVNL who return operating ICLs in equal numbers. The ICLs will be collected and destroyed so as to ensure these less efficient ICLs are not used elsewhere. ANNUAL CER: 50952.


Reference for CDM projects: http://www.cdmindia.gov.in/

Nidhi M J
Energy Consultant
M/s. Technostrats Consulting Pvt. Ltd. Chennai

Shaikh Shamser Ali
Ex-Indian Naval Artificer

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