PDD Asahimas Fuel Switching Ancol Draft To DOE200907

PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03
CDM – Executive Board
CLEAN DEVELOPMENT MECHANISM

PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD)
Version 03 - in effect as of: 22 December 2006
CONTENTS
A. General description of the small-scale project activity
B. Application of a baseline and monitoring methodology
C. Duration of the project activity / crediting period
D. Environmental impacts
E. Stakeholders’ comments
Annexes
Annex 1: Contact information on participants in the proposed small-scale project activity
Annex 2: Information regarding public funding
Annex 3: Baseline information
Annex 4: Monitoring Information
1
Revision history of this document
Version Date Description and reason of revision

Number
01 21 January Initial adoption
2003
02 8 July 2005  The Board agreed to revise the CDM SSC PDD to reflect
guidance and clarifications provided by the Board since
version 01 of this document.
 As a consequence, the guidelines for completing CDM SSC
PDD have been revised accordingly to version 2. The latest
version can be found at
<http://cdm.unfccc.int/Reference/Documents>.
03 22 December  The Board agreed to revise the CDM project design document
2006 for small-scale activities (CDM-SSC-PDD), taking into
account CDM-PDD and CDM-NM.
2
SECTION A. General description of small-scale project activity
A.1 Title of the small-scale project activity:

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Fuel switching at Asahimas Ancol a flat glass manufacturing facility of PT. Asahimas Flat Glass Tbk.,
from fuel oil to natural gas.
Document version 1
21/08/07
A.2. Description of the small-scale project activity:

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The purpose of the project activity:
Asahimas Ancol, a glass manufacturing facility operated by PT Asahimas Flat Glass Tbk (AMFG), has
two unit flat glass production lines of which each is equipped with a glass furnace. These furnaces are
hereafter indicated as F3 and F4. The project activity involves installation of new burners in the glass
furnace F3 and F4 thereby improves the system in the manufacturing facilities by natural gas burners to the
existing burner enabling the glass furnace to mainly use gas while maintaining HFO burner for emergency
situation. The project activity is developed and operated by AMFG. Gas is supplied through a renewable
gas supply purchase contract with Perusahaan Gas Negara (state gas company).
Asahimas Ancol will start using natural gas as fuel in the furnace in August 2007. The project activity will
contribute to climate change mitigation efforts through the reduction of CO2 emissions from the fuel
substitution in glass furnaces. The estimated annual GHG emission reductions is estimated at 55,063 tCO2.
Contribution of the project activity to sustainable development:
The contribution of the project activity to sustainable development is delineated as follows:
1) In addition to reduction of CO2 emissions, the project activity will contribute to better air quality
since it will eliminate the use of HFO, carbon intense fuel causing noteworthy local air pollution
such as SO2, particulates and NOx. Apart from this, the project activity will reduce negative impact
on the environment locally as well as globally through reduction of greenhouse gas emissions
2) Natural gas has less safety issue in terms of transportation and storage. To date, natural gas is
transported from the source through pipeline which minimizes the risks of accidents and soil/water
contamination.
3) Encourage other industry in using natural gas instead of fossil fuel to participate in combating
climate change and reduce Indonesia’s dependence on liquid fossil fuel.
4) Increasing local capacity on usage of natural gas as cleaner fuel through training and coaching
A.3. Project participants:
3
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Table 1 Project participants of the CDM project activity
Name of party involved Private and/or public entity (ies) Kindly indicate if the party
((host) indicates a host project participants (as applicable) involved wishes to be
Party) considered as project
participants (Yes/No)
Indonesia (Host) PT Asahimas Flat Glass Tbk No
Japan Carbon Finance, Ltd No
Japan
Mitsubishi Corporation No
The contact information for project participants in the project activity is provided in Annex 1 in this PDD.
A.4. Technical description of the small-scale project activity:
A.4.1. Location of the small-scale project activity:

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A.4.1.1. Host Party(ies):

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The Republic of Indonesia
A.4.1.2. Region/State/Province etc.:

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Daerah Khusus Ibukota (DKI) Jakarta
A.4.1.3. City/Town/Community etc:

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Jakarta
A.4.1.4. Details of physical location, including information allowing the

unique identification of this small-scale project activity :
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Asahimas Asahimas Ancol is located in Jakarta, DKI Jakarta province. The site of Asahimas Ancol is
located on 6° 06’ South latitude and 106° 50’ East longitude. The map of the location of Asahimas Ancol is
presented in Figure 1.
JAKARTA MAP
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Project Location
PROJECT LOCATION
Figure 1: Map illustrating the location of the project activity, Asahimas Ancol
A.4.2. Type and category(ies) and technology/measure of the small-scale project activity:
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Type III: Other Project Activities
Category III. B. Switching fossil fuels
The project activity is a small-scale CDM project activity, which switches the use of HFO in furnaces to
natural gas in an existing glass manufacturing facility. As the total emission reduction of the proposed
project activity does not exceed the eligibility limit of 60 ktCO2, the project activity is qualified as a small-
scale CDM project activity to which simplified modalities and procedures indicated by UNFCCC can be
applied. Considering that the project activity involves switching of fossil fuel to natural gas and it is aimed
at reducing emissions through fuel switching, based on small-scale CDM modalities, the project activity
falls under Type III, Other Project Activities and Category IIIB. Switching fossil fuel.
5
Technology of the small-scale project activity

The project activity applies a system with dual burner that enables the system to run with natural gas and
HFO as fuels. In the development of the project activity, natural gas burners are added to the existing
burners. The HFO burners will still be available in case that emergency situation is occurred. The burner
installed in both AMFG manufacturing facilities is of Lance type burner. Other facilities that are also
supplemented to the new system include cooling tower, water tank, water pump, skid control and piping
system.
The diagram of the burner is given in Figure 2 below. The old burner for the Heavy oil burner is located in
the middle, while the holes for the new burner are located on the sides. Figure 3 demonstrates the location
where the fuel switch is conducted in the furnace.
Burner
Figure 2. Natural Gas (NG) burners
6
Fuel switch from HFO to

Natural gas
Figure 3. Fuel switching in flat glass manufacturing process
A.4.3 Estimated amount of emission reductions over the chosen crediting period:
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The project activity will have a total estimated natural gas consumption of 70,299,000 m3 annually, from
both F3 and F4. With regard to this fuel consumption, the annual estimated emission reduction of the
project activity is 55,063 t of CO2e without taking into account the cold repair conducted in 2012.
The fuel switching from HFO to natural gas in furnaces F3 and F4 of Asahimas Ancol is expected to be
operated by August 2007 and the expected registration date is in January 2008. The annual emission
reduction of the project activity is estimated to be 50,474 tonnes CO2e(Table 2) taking into account the
non-operation period of both furnaces in 2012 due to cold repair. The total GHG emission reductions over
the selected crediting periods (7 years) are estimated at 357,910 tCO2e.
Table 2: Estimated amount of emission reductions over the chosen crediting period
Annual estimation of emission
Year
reductions in tonnes of CO2 e
2008 55,063
2009 55,063
2010 55,063
2011 55,063
2012 27,532
2013 55,063
2014 55,063
Total estimated reductions (tonnes CO2 e) 357,910
Total number of crediting years 7
Annual average over the crediting period of 50,474
estimated reductions (tonnes CO2e)
A.4.4. Public funding of the small-scale project activity:

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There is no public funding involved for the financing of the project activity. As such it will not result in a
diversion of official development assistance.
7
A.4.5. Confirmation that the small-scale project activity is not a debundled component of a
large scale project activity:
Appendix C of the Simplified Modalities and Procedures for Small Scale CDM project activities state that
the criteria of a debundled project are as follows:
 With the same project participants;

 In the same project category and technology/measure; and
 Registered within the previous 2 years; and
 Whose project boundary is within 1 km of the project boundary of the proposed small-scale
activity at the closest point
The project is not a debundled component of a larger project activity since there are no other small scale
CDM project of the company to be registered within 1 km of the project boundary of the proposed project
activity.
SECTION B. Application of a baseline and monitoring methodology
B.1. Title and reference of the approved baseline and monitoring methodology applied to the
small-scale project activity:
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Type: TYPE III – OTHER PROJECT ACTIVITIES
Project category title: Category III. B. Switching fossil fuels

Reference: Appendix B of the Simplified Modalities and Procedures (hereinafter referred to as “Appendix
B”) for Small-Scale CDM project activities, Category III.B. taken from the document AMS-III.B., Version
11, Scope 1, EB 33.
Methodology AMS- III.B. – Switching Fossil Fuels
B.2 Justification of the choice of the project category:

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The project activity is categorized as a small-scale CDM project type III. B. Switching
fossil fuels, Methodology AMS- III.B. – Switching fossil fuels.
The project activity complies with all of the applicability requirements required by
AMS-III.B. This category comprises “Other Project Activity” sources such as fuel
switching from HFO to natural gas. The emission reduction of the project activity as
indicated in Table 2 does not exceed 60 ktCO 2 e.
Table 3: Methodology AMS-III-B. Requirements
Project Type Type III – Other Project Activities

Project Category III. B. Switching fossil fuels
Technology/Measure This category comprises fossil fuel switching in existing industrial,
residential, commercial, and institutional or electricity generation
applications.
8
Fuel switching may change efficiency as well. If the project activity

primarily aims at reducing emissions through fuel switching, it falls into
this category. If fuel switching is part of a project activity focused
primarily on energy efficiency, the project activity falls in category II.D
or II.E.
Measures are limited to those that result in emission reductions of less
than or equal to 60 kt CO2 equivalent annually.
Boundary The project boundary is the physical, geographical site where the fuel
combustion affected by the fuel-switching measure occurs.
Baseline The emission baseline is the current emissions of the facility expressed
as emissions per unit of output (e.g., kg CO 2 e/kWh). Emission
coefficients for the fuel used by the generating unit before and after the
fuel switch are also needed. IPCC default values for emission
coefficients may be used.
Leakage In case the project activity involves fossil fuel switching measures,
leakage resulting from fuel extraction, processing, liquefaction,
transportation, re-gasification and distribution of fossil fuels outside of
the project boundary shall be considered. The guidance provided in the
leakage section of ACM0009 as in annex of this document shall be
followed in this regard.
However, according to ACM009, to the extent that upstream emissions

occur in Annex I countries that have ratified the Kyoto Protocol, from 1
January 2008 onwards, these emissions should be excluded, if technically
possible, in the leakage calculations.
Considering that the crediting period proposed starts in 2008, the leakage
emissions are excluded.
Monitoring Monitoring shall involve:
a. Monitoring of the fuel use and output for an appropriate period
(e.g., a few years, but records of fuel use may be used) prior to the
fuel switch being implemented - e.g. coal use and heat output by a
district heating plant, liquid fuel oil use and electricity generated by
a generating unit (records of fuel used and output can be used in
lieu of actual monitoring);
b. Monitoring fuel use and output after the fuel switch has been
implemented - e.g. gas use and heat output by a district heating
plant, gas use and electricity generated by a generating unit.
c. Monitoring glass production
B.3. Description of the project boundary:

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The project boundary is the physical, geographical site where the fuel combustion affected by the fuel-
switching measure occurs, as stated by AMS - III.B. Therefore, the project boundary of the project activity
encompasses the physical, geographical area of the the Asahimas Ancol.
Project boundary encompasses furnace system of the Asahimas Ancol.
9
Description of the GHG emission sources included in this project boundary is shown in 3.
Table 3 GHG emission sources related to the project activity

Source Gas Included? Justification/Explanation
Baseline HFO combustion in the CO2 Included Main emission source
furnace CH4 Excluded Excluded for simplification and
conservativeness
N2O Excluded Excluded for simplification and
conservativeness
Project Natural gas combustion in CO2 Included Main emission source
Activity the furnace CH4 Excluded Excluded for simplification
N2O Excluded Excluded for simplification
B.4. Description of baseline and its development:
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Identification of possible baseline Scenario:
In the absence of this CDM project, AMFG Ancol has the following alternatives to provide heat:
Scenario 1) Continuous operation of furnace F3 and F4 on HFO

Scenario 2) Retrofit of the existing furnace operation by using natural gas as their fuel, but not as
CDM activity
Evaluation of each baseline scenario alternative
Scenario 1): The operation of the existing furnace with HFO will not create any new investment by AMFG.
AMFG has utilized the existing burners since the starting date of the company and the technology is well-
known and is a common practice in glass industry.
Scenario 2): Installation of a new additional burner enabling AMFG to burn natural gas in furnace F3 and
F4 would incur some investment. Natural gas is not commonly used in glass industry in Asia Region, Asahi
Glass Company (AGC) Group, and AMFG is unfamiliar with the technology.
Considering the additional investment and unfamiliarity with the technology, AMFG would likely maintain
its existing furnace set-up and continuously use HFO. Therefore, in the absence of the project, the baseline
scenario selected is the existing operation with burning of HFO in furnace F3 and F4.
B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below those
that would have occurred in the absence of the registered small-scale CDM project activity:
The propose project activity is additional since the project as overcome project barriers as describe below:
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Technological barrier
- Flat glass industry globally burns fossil fuel in their furnace due to its versatility in handling, as
well as its characteristics in distributing even heat in the furnace. The properties of natural gas
combustion are still a challenge to be continuously developed and adjusted to provide similar effect
in a glass furnace. Despite this challenge, AMFG decides to put its effort in installing the natural
gas burner, and also setting-up a technical operation team to deal with the switching from HFO to
natural gas.
- Though the project has not implemented a technology which is totally new, the operational aspects
are new to the Engineers / Supervisors who have adequate experience in running (operation and
maintenance) the furnace based on HFO. The operational staffs have to acclimatise to this new
operational environment and it may take some time for them to familiarize with the new system.
Also some spare parts for the new system have to be imported and hence involve additional
management effort to optimize the operational period.
Infrastructure and institutional barrier
Natural gas reserve in Indonesia is estimated at about 173 Trillion Cubic Feet (TCF) and ranks the
twelfth (12th) in the World1. Natural gas export, mainly Liquid Natural Gas (LNG) contributes
significant share of the country economy. Despite being advanced in exporting its natural gas, oil
has been the primary domestic energy supply for about three decades.
To diversify energy mix and reducing the country’s dependency on oil, the Government of
Indonesia has targeted that by 2025 natural gas would contribute more than 30% energy mix 2.
However, current gas transmission and distribution pipeline is still inadequate to reach this target
and significant investment is required to improve the domestic natural gas infrastructure. However,
most export-credit agencies remain cautious of domestic-oriented project in Indonesia because of
lack of creditworthiness.
Asahimas Flat Glass has take one step ahead to switch from fossil fuel to natural gas, and
promotes utilisation of cleaner fuel in its manufacturing process by agreeing with PGN (the state
gas company) to use an existing gas pipeline and a 2-year gas supply contract with the price of
US$ 0.2/Nm3. The gas supply contract shall be renewed with the 5-year contract. Nevertheless,
the company realizes that there is still risk of increased natural gas price in the future. Therefore,
CDM is expected to support the company in further continuing gas supply.
Barriers to prevailing practice
1
www.usembassyjakarta.org: Indonesia’s natural gas opportunities and challenges
2
Indonesia’s energy policy 2005-2025
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Utilisation of natural gas in flat glass industry furnace in Asia Pacific in AGC group, is still less
than utilisation of HFO. To produce 1 ton of glass, it requires more Natural gas than HFO creating
less efficiency of natural gas combustion3 . Therefore, the industry would have chosen HFO for a
better efficiency. AMFG takes one step ahead in taking the uncertainty risks of utilisation of
natural gas in its furnaces even though it has less efficiency than HFO. Table 4 below
demonstrates that among all flat glass industry in Asahimas Flat Glass in Asia Pacific, Indonesia is
the 2nd after the flat glass in Thailand.
Table 4. AGC Group Flat Glass Manufacturing in Asia Pacific
B.6. Emission reductions:
B.6.1. Explanation of methodological choices:

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As the project activity uses natural gas as a source of energy in the glass manufacturing, the project
emissions are calculated based on the consumption of natural gas required for the production of glass.
The formula used to calculate Project Emissions (PE) is:
PE = NG * EF NG (1)
Where:
PE is the Project activity emissions (in t CO2)
NG is the quantity of natural gas used in the project scenario (in m3)
EFNG is the CO2 emission factor per unit of natural gas associated with fuel combustion (e.g.,
tCO2/m³)
EFNG is obtained as:
3
International Course on Glass Technology and Manufacture Handbook
12
EFNG =NCVNG * EFCO2, NG (2)
Where:
NCVNG is the net calorific value (energy content) per volume unit of natural gas (TJ/m3) as determined from
the fuel supplier in BTU/SCF.
EFCO2,NG is the CO2 emission factor per unit of energy of natural gas (tCO 2/TJ) as determined from IPCC
default value and available in kgCO2/TJ
Since the project activity uses natural gas as a source of energy for melting raw material used in the glass
manufacturing facilities, the baseline emissions are calculated based on the amount of HFO that are
required for the production prior to implementing the fuel switch.
The formula used to calculate the Baseline Emissions is (BEi)
BEi = PG/RG_Oi (3)
Where:
BEi is the baseline emissions (in t CO2 e)
PG is the quantity of glass produced (in tonnes) per year
RG_Oi is the ratio of tonnes CO2 e per tonnes of glass produced in the furnaces (F3, F4 respectively) i in the
baseline (from historical data of AMFG’ facilities)
Ratio of tonnes CO2e per tonnes of glass produced calculated using the following equation:
n BL j ,i ,k * EF j

1 Pi ,k (4)
RG _ Oi 
n
Where:
BL j,i,k is the quantity of energy source j consumed in the equipment group i in month k
EFj is the emission factor of the energy source j
Pi,k is the quantity of glass produced in the equipment group i in month k
n is the number of months used to calculate the ratio
The formula used to estimate the Emission Reduction is:
Emission Reduction:
The emission reduction of the project activity is calculated by subtracting the baseline emissions with the
project emissions. For the calculation of the emission reductions the following equations are applied by the
project participant:
ER = BE – PE (5)
Where:
ER Emission reductions (in t CO2 e)
BE Is the baseline emissions (in t CO2 e)
PE Project activity emissions (in t CO2 e)
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B.6.2. Data and parameters that are available at validation:
Data / Parameter: BL heavy oil,y

Data unit: tonnes
Description: Quantity of heavy oil combusted in the project plant in year(s) ‘y’
Source of data used: This is as per actual metered readings from the facilities records in litres and
converted into tonnes using a density value of 0.990 kg/litre
Value applied: Refer to Annex 3 for details of diesel quantity heavy oil
combusted at project site from January 2006 through December
2006
Justification of the This is per requirements of AMS-III-B. The value has been determined based on
choice of data or three years recorded data of the facilities prior to the fuel switching from diesel to
description of natural gas
measurement methods
and procedures actually
applied :
Any comment: -
Data / Parameter: RG_O1

Data unit: Tonnes of CO2 e per tonnes of glass
Description: RG_O1 the ratio of tons CO2e per tonnes of glass produced in F3 in the baseline
(from historical AMFG data)
Source of data used: Based on the calculation of which the data is from the records of production and
heavy fuel oil of Asahimas Ancol , and the default IPCC 2006 emission factor
Value applied: 0.86 tCO2e/t glass
Justification of the This ratio was calculated based on the actual production and fuel consumption
choice of data or from at least one-year prior to the fuel switching to natural gas.
description of
measurement methods
applied :
Any comment:
Data / Parameter: RG_O2

Data unit: Tonnes of CO2 e per tonnes of glass
Description: RG_O2 is the ratio of tons CO2 e per tonnes of glass produced in F4 in the baseline
(from historical data of AMFG ’s facilities)
Source of data used: Based on the calculation of which the data is from the records of production and
heavy fuel oil of Asahimas Ancol , and the default IPCC 2006 emission factor
Value applied: 0.92 tCO2e/t glass
Justification of the This ratio was calculated based on the actual production and fuel consumption
choice of data or from at least one year prior to the fuel switching to natural gas.
description of
measurement methods
applied :
Any comment:
14
Data / Parameter: EF NG
Data unit: tCO2/m3
Description: Emission factor of the natural gas
Source of data used: PT PGN and IPCC 2006
Value applied: 0.00201 tCO2/m3
Justification of the This value was calculated as a net calorific value of the natural gas in TJ/m 3
choice of data or (source: PT PGN) times the carbon emission factor of the natural gas in tCO 2/TJ
description of (source: IPCC 2006) times the natural gas density in t/m³ (source: PT PGN).
measurement methods
applied :
Any comment: - Net calorific value of natural gas is calculated as 10% of Gross calorific
value which was obtained monthly from the fuel supplier (PGN)
- The carbon emission factor of natural gas based on IPCC 2006 is 56.1 t
of CO2/TJ
Data / Parameter: EF Oil

Data unit: tCO2/t
Description: Emission factor of the HFO
Source of data used: PERTAMINA 2003
Value applied: 3.0551 tCO2/t
Justification of the This value was calculated as net calorific value of the fuel oil in
choice of data or TJ/kt (source: PERTAMINA 2003) times the carbon emission
description of factor of the fuel oil in tCO2/TJ (source: IPCC 2006) divided by
measurement methods 1000.
applied :
Any comment:
Data / Parameter: P
Data unit: ton of glass
Description: quantity of glass produced in the equipment group i in month k
Source of data used: This is based on Asahimas ancol production record in 2006. The record is done is
CCS (converted case) unit, where 1 CCS is 46.45 kg.
Value applied: Date Production F3 Production
(tonnes) F4 (Tonnes)
Jan-06 12,214 10,401
Feb-06 9,525 11,192
Mar-06 10,511 12,002
Apr-06 8,988 5,765
May-06 10,433 9,748
Jun-06 7,115 7,083
Jul-06 4,615 8,047
Aug-06 9,275 7,083
Sep-06 9,740 9,405
Oct-06 12,366 8,512
Nov-06 10,345 8,252
Dec-06 10,422 7,653
Justification of the Estimated from the production quantity in terms of CCS. 1 CCS is 46.45 kg
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choice of data or
description of
measurement methods
applied :
Any comment:
B.6.3 Ex-ante calculation of emission reductions:

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Baseline:
The baseline emission is the current emissions of the facility expressed as emissions per unit of output (in
this case tCO2 e/tonne glass produced). Emission coefficients for the fuel used by the furnaces (F3 and F4)
before and after the fuel switch are also considered for emission calculation. IPCC default values for
emission coefficients are adopted for the project activity due to the limited data available.
The baseline emissions in the absence of the project activity are calculated as follows:
BEi = PG/RG_Oi
The baseline emission calculations for HFO is presented below:

Equipment group 1 2
Group name F3 F4
Fuel baseline Heavy oil Heavy oil
NCV 39.47 (TJ/kton) 39.47 (TJ/kton)
CEF 77.40 (tCO2e/TJ) 77.40 (tCO2e/TJ)
Density 990 kg/m3 990 kg/m3
Date Fuel Equivalent Baseline Fuel Equivalent Baseline
(Monthly) Consumption consumption emission Consumption consumption emission
unit (kiloliter) (TJ) (tCO2e) (kiloliter) (TJ) (tCO2e)
Jan-06 2,700 106 8,168 2,664 104 8,059
Feb-06 2,477 97 7,492 2,426 95 7,337
Mar-06 2,818 110 8,523 2,742 107 8,293
Apr-06 2,699 105 8,162 2,338 91 7,072
May-06 2,754 108 8,329 2,644 103 7,997
Jun-06 2,543 99 7,690 2,471 97 7,472
Jul-06 2,169 85 6,561 2,743 107 8,296
Aug-06 2,573 101 7,782 2,559 100 7,740
Sep-06 2,583 101 7,812 2,516 98 7,611
Oct-06 2,713 106 8,206 2,606 102 7,882
Nov-06 2,679 105 8,102 2,500 98 7,562
Dec-06 2,758 108 8,342 2,514 98 7,604
The emission reductions were calculated based on the calculation of ratios of tonnes of glass produced by 1
tonne of the energy source i used in the baseline (from historical data) for each equipment group. To
calculate the ratios used to determine the fuel amount that would be consumed in the baseline the following
method was used:
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n BL j ,i ,k * EF j

1 Pi ,k
RG _ Oi 
n
The results obtained when applying the formula above are in the table below:
Equipment Group Group name RG_Oi

1 F3 0.86
2 F4 0.92
Project Activity Emissions

Project activity emissions consist of those emissions related with the use of fossil fuel after the fuel switch.
IPCC default values for emission coefficients may be used.
The project activity is on-site combustion of natural gas to generate heat for the production of glass. The
project activity emissions (PE) are calculated as follows:
PE = NG * NCVNG * EFCO2, NG
The project activity emission calculations are presented below. The emission reduction in the year 2012 is
less due to cold repair of the furnaces.
Equipment group 1 2
Group name F3 F4
Fuel Natural gas Natural gas
Year Fuel Equivalent Project Fuel Equivalent Project
Consumption consumption emission Consumption consumption emission
(m3) (TJ) (tCO2e) (m3) (TJ) (tCO2e)
2008 36,062,000 1,290 72,350 34,237,000 1,224 68,689
2009 36,062,000 1,290 72,350 34,237,000 1,224 68,689
2010 36,062,000 1,290 72,350 34,237,000 1,224 68,689
2011 36,062,000 1,290 72,350 34,237,000 1,224 68,689
2012 18,031,000 645 36,175 17,118,500 612 34,344
2013 36,062,000 1,290 72,350 34,237,000 1,224 68,689
2014 36,062,000 1,290 72,350 34,237,000 1,224 68,689
B.6.4 Summary of the ex-ante estimation of emission reductions:

>> The estimated emission reductions for the proposed CDM project activity are presented in the following
Table.
Estimation for Estimation of Estimation of

Estimation of
Project Activity Baseline overall emission
Year Leakage
Emissions Emissions reductions
(tCO2 e)
(tCO2 e) (tCO2 e) (tCO2 e)
2008 141,039 196,102 N/A 55,063
2009 141,039 196,102 N/A 55,063
2010 141,039 196,102 N/A 55,063
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2011 141,039 196,102 N/A 55,063

2012 70,250 98,051 N/A 27,532
2013 141,039 196,102 N/A 55,063
2014 141,039 196,102 N/A 55,063
Total
916,755 1,274,665 N/A 357,910
(tonnes of CO2)
B.7 Application of a monitoring methodology and description of the monitoring plan:
B.7.1 Data and parameters monitored:
Data / Parameter: Quantity of natural gas consumed in each year of the project activity
Data unit: Nm3 (Normal meter cubic)
Description: Quantity of natural gas consumed in year j
Source of data to be A copy of record gas consumed in each melting furnace (F3 and F4) signed
used: by Manager Operation of AMFG
Value of data The expected emission reduction calculation was based on actual
consumption of the plant.
Description of All data will be monitored continuously and registered in monthly reports
measurement methods that will be kept for the crediting period plus two years.
and procedures to be
applied:
QA/QC procedures to The digital flow meter will undergo/maintenance/calibration subject to
be applied: appropriate industry standards.
Any comment:
Data / Parameter: Quantity of glass production in each year of the project activity
Data unit: tonnes of glass (t-glass)
Description: Quantity of glass production in year j
Source of data to be A copy of record of total amount of glass stored in Storehouse issued by
used: Head of Warehouse. Estimated from the production quantity in terms of
CCS. 1 CCS is 46.45 kg
Value of data Quantity of glass production in year j
Description of All data will be monitored continuously and registered in monthly reports
measurement methods that will be kept for the crediting period plus two years. Estimated from the
and procedures to be production quantity in terms of CCS. 1 CCS is 46.45 kg
applied:
QA/QC procedures to The digital weight of glass production willundergo/maintenance/calibration
be applied: subject to appropriate industry standards.
Any comment:
B.7.2 Description of the monitoring plan:

>>
Monitoring for the CDM project activity includes the monitoring of glass production and natural gas
consumption, in the equipment included in the project boundary.
18
AMFG obtains natural gas supply for its facilities from PT PGN. The specification of the gas such as
calorific value, its composition and its density is periodically measured every month by PT. PGN, a
supplier gas company.
Parties involved in monitoring

A gas flow meter installed by PGN for monitoring gas flow amount to AMFG and for reading amount of
total gas sold to AMFG from which determines an invoice to AMFG. Two gas flow meters are installed by
AMFG, one at the inflow gas to furnaces and the other at the inflow gas to cooling zone. These two flow
meters will determine the amount of gas being sent to furnaces. If discrepancies occur in the reading of the
amount of gas between the PGN and AMFG gas flow meters, the PGN gas flow meter will be the valid
flow meter.
The amount of emission reductions will be easily monitored through monitoring the natural gas supplied to
the furnaces (F3 and F4). The amount of the natural gas to each furnace is monitored in control room and
recorded by digital recorder that periodical confirmed every month by the operational manager of AMFG.
The amount of glass production to be monitored or being considered in the calculation of emission
reduction is the glass stored in the AMFG’s warehouse.
Quality Assurance and Quality Control

The quality assurance and quality control for recording, maintaining and archiving data shall be maintained
by AMFG. AMFG will provide personnel that are in charge of data collection. In order to maintain and
upgrade the ability and skill of the operator, training related to electrical and production engineering and
operation of furnace will be performed (Before the operation of the project, there will be training for
AMFG personnel in order to ensure that the persons in charged are competent in performing their duties).
On site procedures
A copy of the record of gas flow to each furnace (F3 and F4) confirmed and signed by Manager Operation
of AMFG every month will be used as the basis for determining the emission reductions for that month.
A copy of record of total glass production stored in a warehouse issued by the Head of warehouse of
AMFG is used as the basis for determining total amount glass production in one month. AMFG will keep
the copy of the invoice and the copy of selling receipts until two years after the crediting period.
19
DCS
flow meter installed by AMFG Furnace F3
PGN MRS DCS

port
flow meter installed by PGN Furnace F4
LEHR: cooling zone

F3
Note:
PGN: Perusahaan Gas Negara (Natural Gas supplier) F4
MRS: Metering regulator station
DCS: Distributed control system
Boiler
Figure 4: flowchart represents the situation of meters
Procedures for Calibrating of Equipment

The gas flow meters for natural gas consumption and the scales installed for measuring the AMFG’s glass
production will be of a digital type. The measurements tools to be used will be calibrated and periodically
recalibrated by a Metrology Office (once every two years to comply with the Ministerial Decree of Trade
and Industry of the Republic of Indonesia No: 731/MPP/Kep/10/2002 regarding Management of
Metrology and Management of Metrology Laboratory).
B.8 Date of completion of the application of the baseline and monitoring methodology and the
name of the responsible person(s)/entity(ies)
>>
Date of completing the final draft of this baseline section (DD/MM/YYYY)
3/1/2007
Name of person/entity of determining baseline:
Name : PT. Asia Carbon Indonesia

Address: Jl . Villa no. 7, Jakarta 12930, Indonesia
Tel : +62-21-5256619
Mobile : +62-21-52901140
E-mail : [email protected]
20
SECTION C. Duration of the project activity / crediting period
C.1 Duration of the project activity:
C.1.1. Starting date of the project activity:

>>
01-10-2006
C.1.2. Expected operational lifetime of the project activity:
>>
25 y-0m
C.2 Choice of the crediting period and related information:
C.2.1. Renewable crediting period
C.2.1.1. Starting date of the first crediting period:

>>
01-01-2008
C.2.1.2. Length of the first crediting period:

>>
7 years
C.2.2. Fixed crediting period:
C.2.2.1. Starting date:

>>
Not applicable
C.2.2.2. Length:
>>
Not applicable
SECTION D. Environmental impacts

>>
D.1. If required by the host Party, documentation on the analysis of the environmental impacts of
the project activity:
>>
Referring to the Decree of the Minister of the Environment The ministerial decree No. 86/2002 on the
guidelines of environmental monitoring and environmental management efforts of the Republic of
Indonesia, an “Environmental Impact Assessment (hereinafter referred to as AMDAL)” is not required for
a change in a process of an industry that does not expand its production capacity. This project activity still
requires submission of updating of ANDAL, RKL/RPL document according to the MENLH No.11/2006.
The RKL/RPL is the environmental monitoring report and environmental management report which is
reported regularly. This document is already revised and authorized by the related local authority. Since
21
there is no public activity involved in the project activity, no negative impact is identified in the
development and implementation of the project activity.
The scale of the proposed project activity is small.
D.2. If environmental impacts are considered significant by the project participants or the host
Party, please provide conclusions and all references to support documentation of an environmental
impact assessment undertaken in accordance with the procedures as required by the host Party:
>>
The project activity requires no AMDAL and will not result in significant impacts to the environment.
SECTION E. Stakeholders’ comments

>>
E.1. Brief description how comments by local stakeholders have been invited and compiled:
>>
Stakeholder consultation was held on the 8th of June 2007 at AMFG Ancol facility and was attended by
the representative from the local environmental agency, neighbouring facilities around AMFG Ancol
facility, the local community located close the AMFG Ancol facility, the non-governmental organisation,
and the state gas company. These are the stakeholders which would indirectly or directly related to the
project activity.
During the opening of the stakeholder consultation, the objective of the stakeholder consultation was
presented:
- To inform the stakeholders on the new project

- To explain the stakeholders about the benefits of the new project and the impact to their living
environment
- To receive comments from the stakeholder.
The objective of the project activity to switch from HFO to natural gas was then described and explained.
The environmental benefits were highlighted and a brief introduction to Clean Development Mechanism
was given by the AMFG.
The audiences were then given the opportunity to express their opinions and comment regarding the project
activity.
E.2. Summary of the comments received:
The comments taken from the audiences are listed hereafter:
- the local environmental agency and the representative from the local community express their
positive view about the project. They expect that the steps taken by AMFG will be examples for
other industries located around AMFG in Ancol area to use clean energy.
22
- The representatives of the neighbouring facilities (industry) have a great interest in switching their
use of liquid fossil fuel to natural gas. However, their main concern is the security of gas supply
taking into account that contract with State gas company last in three-five years only.
- Questions were asked about technology transfer and capacity building of the technology
implemented in the project activity
During the discussions, other comments were received but not related to the project activity:
- if degraded forest is taken into account
- the remarks of one of the neighbouring facilities for not only paying attention to Greenhouse gas
emissions but also to the industrial and municipal solid wastes, in terms of environmental
management
E.3. Report on how due account was taken of any comments received:
>>
- Regarding the concern of the security of gas supply, the comments are responded by the gas
supplier, the state gas company (PGN). PGN stated that at this stage, they mainly sourced their gas
through contracts with oil and gas companies and this would be renewed according to their
negotiation. However, PGN stated at for the next 5 years their supply can be secured for industries
in Ancol Area.
- AMFG responded to comments related to technology transfer and capacity building. It is stated
that the technology transfer and capacity building would be done in parallel by training the local
employment to master the technology applied in the project activity. It was also added that the
project activity will not create unemployment.
- Other remarks not related to the project activity were received and responded.
23
Annex 1
CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY
Organization: PT. Asahimas Flat Glass Tbk

Street/P.O.Box: Jl. Ancol IX/5, Ancol barat
Building:
City: Jakarta
State/Region:
Postfix/ZIP: 14430
Country: Indonesia
Telephone: +62-21-6904041
FAX: +62-21-6918820/6904128
E-Mail:
URL:
Represented by:
Title: Mr.
Salutation:
Last Name: Effendi
Middle Name:
First Name: Rustam
Department:
Mobile:
Direct FAX: +62-21-6918820/6904128
Direct tel: +62-21-6904041
Personal E-Mail: [email protected]
Organization: Japan Carbon Finance Ltd

Street/P.O.Box: 1-3 Kudankita, 4-Chome, Chiyoda-ku
Building:
City: Tokyo
State/Region:
Postfix/ZIP: 102-0073
Country: Japan
Telephone: +81 3 5212 8870
FAX: +81 3 5212 8886
E-Mail:
URL:
Represented by:
Title: Mr.
Salutation:
Last Name: Isone
Middle Name:
First Name: Shuji
Department:
Mobile:
Direct FAX: +81 3 5212 8886
Direct tel: +81 3 5212 8870
24
Organization: Mitsubishi Corporation

Street/P.O.Box 16-3, 2 –Chome, Minato-ku
Building:
City: Tokyo
State/Region:
Postfix/ZIP: 108-8228
Country: Japan
Telephone: +81-3-6405-7941
FAX: +81-3-6405-7708
E-Mail:
URL:
Represented by:
Title: Mr.
Salutation:
Last Name: Oka
Middle Name:
First Name: Hiroshi
Department:
Mobile:
Direct FAX: +81-3-6405-7708
Direct tel: +81-3-6405-7941
25
Annex 2
INFORMATION REGARDING PUBLIC FUNDING
NOT APPLICABLE
26
Annex 3
BASELINE INFORMATION
Table 1 Baseline Data
Equipment group 1 2
Group name F3 F4
Fuel baseline Heavy oil Heavy oil
NCV 39.47 (TJ/kton) 39.47 (TJ/kton)
CEF 77.40 (tCO2e/TJ) 77.40 (tCO2e/TJ)
Density 990 kg/m3 990 kg/m3
Date Fuel Equivalent Baseline Fuel Equivalent Baseline
(Monthly) Consumption consumption emission Consumption consumption emission
unit (kiloliter) (TJ) (tCO2e) (kiloliter) (TJ) (tCO2e)
Jan-06 2,700 106 8,168 2,664 104 8,059
Feb-06 2,477 97 7,492 2,426 95 7,337
Mar-06 2,818 110 8,523 2,742 107 8,293
Apr-06 2,699 105 8,162 2,338 91 7,072
May-06 2,754 108 8,329 2,644 103 7,997
Jun-06 2,543 99 7,690 2,471 97 7,472
Jul-06 2,169 85 6,561 2,743 107 8,296
Aug-06 2,573 101 7,782 2,559 100 7,740
Sep-06 2,583 101 7,812 2,516 98 7,611
Oct-06 2,713 106 8,206 2,606 102 7,882
Nov-06 2,679 105 8,102 2,500 98 7,562
Dec-06 2,758 108 8,342 2,514 98 7,604
Table 2 Natural gas consumption at each furnace (F3 and F4)

Furnace NG Consumption Operation NG consumption
(KNm3/day) (day/month) (m3/month)
F3 98.8 30.4 2,964,000
F4 93.8 30.4 2,814,000
Table 3 Fuel Data

Kind of Net Carbon
fuel Density Gross calorivic Source NCV Carbon Source Carbon Source emission Source
calorific
value value oxidation content factor
(kg/m3) (BTU/lb) (BTU/lb) (TJ/kton) (%) (tC/TJ) (tCO2e/TJ)
Heavy
oil 990 18,000 17,000 [1] 39.47 100% [2] 21.1 [2] 77.4 [2]
Natural
gas 100% [2] 15.3 [2] 56.1 [2]
source:
[1] Bahan Bakar Minyak, Elpiji dan BBG untuk kendaraan, rumah tangga industri dan perkapalan, PERTAMINA 2003
[2] IPCC, 2006
[3] PT Pertamina Persero Gas Analysis Report
27
Annex 4
28
MONITORING INFORMATION
Table 4 : Data to be monitored in the project activity

Measured How will the
ID (m), Proportion data be For how long is
Data type Data Recording
number Data variable calculated (c) of data to be archived? archived data to Comment
unit frequency
or estimated monitored (electronic/ be kept?
(e) paper)
1 Quantity of Natural Natural Gas
Gas in equipment consumed in
group 1 (F3) equipment group Meter is
1 (F 4) regularly
Electronic and Four years after
2 Quantity of Natural Natural Gas kNm3 m Monthly 100% calibrated by
Paper verification a Metrology
Gas in equipment consumed in
group 2 (F3) equipment group Office
2 (F 4)
29
30

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PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

CLEAN DEVELOPMENT MECHANISM

A. General description of the small-scale project activity

B. Application of a baseline and monitoring methodology

C. Duration of the project activity / crediting period

Annex 1: Contact information on participants in the proposed small-scale project activity

Annex 2: Information regarding public funding

Annex 3: Baseline information

Annex 4: Monitoring Information

CDM – Executive Board

Revision history of this document

Version Date Description and reason of revision

CDM – Executive Board

SECTION A. General description of small-scale project activity

A.1 Title of the small-scale project activity:

A.2. Description of the small-scale project activity:

The purpose of the project activity:

Contribution of the project activity to sustainable development:

The contribution of the project activity to sustainable development is delineated as follows:

A.3. Project participants:

CDM – Executive Board

A.4. Technical description of the small-scale project activity:

A.4.1. Location of the small-scale project activity:

A.4.1.1. Host Party(ies):

A.4.1.2. Region/State/Province etc.:

A.4.1.3. City/Town/Community etc:

A.4.1.4. Details of physical location, including information allowing the

CDM – Executive Board

CDM – Executive Board

Technology of the small-scale project activity

Figure 2. Natural Gas (NG) burners

CDM – Executive Board

Fuel switch from HFO to

Figure 3. Fuel switching in flat glass manufacturing process

A.4.4. Public funding of the small-scale project activity:

CDM – Executive Board

 With the same project participants;

SECTION B. Application of a baseline and monitoring methodology

Project category title: Category III. B. Switching fossil fuels

Methodology AMS- III.B. – Switching Fossil Fuels

B.2 Justification of the choice of the project category:

Table 3: Methodology AMS-III-B. Requirements

Project Type Type III – Other Project Activities

CDM – Executive Board

Fuel switching may change efficiency as well. If the project activity

However, according to ACM009, to the extent that upstream emissions

B.3. Description of the project boundary:

Project boundary encompasses furnace system of the Asahimas Ancol.

CDM – Executive Board

Table 3 GHG emission sources related to the project activity

B.4. Description of baseline and its development:

Identification of possible baseline Scenario:

Scenario 1) Continuous operation of furnace F3 and F4 on HFO

Evaluation of each baseline scenario alternative

CDM – Executive Board

Infrastructure and institutional barrier

Barriers to prevailing practice