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PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board 1 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 Annex 5: Brick making technologies in Bangladesh Annex 6: Abbreviations Annex 7: Reference

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Page 1: CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN … · 2013. 6. 21. · contrast to the seasonal production operations in the clay brick industry, HHK plants have the advantage of continuous

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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 Annex 5: Brick making technologies in Bangladesh Annex 6: Abbreviations Annex 7: Reference

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Revision history of this document Version Number

Date Description and reason of revision

01 21 January 2003

Initial adoption

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 2006

• The Board agreed to revise the CDM project design document for small-scale activities (CDM-SSC-PDD), taking into account CDM-PDD and CDM-NM.

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SECTION A. General description of small-scale project activity A.1 Title of the small-scale project activity: >> Title: Improving Kiln Efficiency of the Brick Making Industry in Bangladesh Date: 24/10/2007 Version: 02 A.2. Description of the small-scale project activity: >> Purpose: The purpose of the project activity is to construct new kilns and improve the kiln efficiency of the brick making industry in Bangladesh by introducing a new technology called Hybrid Hoffman Kiln (HHK). The project activity is to bundle twenty-two 18-door HHKs or eleven 36-door HHKs or any combination thereof located in Savar, Gazipur, Demra and surrounding areas of Dhaka and Comilla cities. Brick making in Bangladesh is a highly energy-intensive and carbon-emitting activity. It is one of the largest sources of greenhouse gas emissions in the country, which is estimated to be in the order of 3.0 million tonnes of CO2 annually. By introducing the HHK, the project activity aims to transfer, adopt and disseminate this technology on a wider scale. It would result in energy savings and reduced pollution. The schedule of the proposed HHK activity is given in Table 1:

Table 1: Schedule of the project activity

Number of 18-door HHKs Construction Start up Dates Starting Dates for Brick Production

1st HHK October 2006 August 2007 2nd HHK February 2007 December 2007 3rd HHK May 2007 February 2008

4th, 5th and 6th HHKs September 2007 February 2008 7th and 8th HHKs November 2007 April 2007

9th and 10th HHKs December 2007 May 2008 11th and 12th HHKs February 2008 June 2008 13th and 14th HHKs March 2008 August 2008 15th and 16th HHKs April 2008 October 2008 17th and 18th HHKs June 2008 November 2008 19th and 20th HHKs August 2008 December 2008 21st and 22nd HHKs October 2008 February 2009

The HHK, developed and widely used in China, is a hybrid version of the Hoffman technology, which was developed in Germany. In addition to improving kiln efficiency, the process also reduces CO2 and other emissions since it employs a direct fuel injection technique to create better thermal bonding, reducing fuel usage. The HHK technology improves energy efficiency through internal combustion of injected fuel through the application of heat optimization techniques in a minimum heat-loss chamber in the combustion zone of the kiln.

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The design capacity of one proposed 18-door Hybrid Hoffman kiln1 will enable production of 15 million bricks of the size commonly used in Bangladesh whereas the traditional tall Fixed Chimney kiln produces about 2 million on the average. This means that each new HHK will replace 7.5 of the older Energy Inefficient Kilns in equivalence. The fuel, coal, consumed in the HHK is about 10 to 12 tons per hundred thousand bricks compared to 24 to 26 tons in the traditional kilns. It follows, therefore, that the new kilns are about 50% more energy efficient. The comparatively low energy intensity of the HHK results in about annual average CO2 emission reductions of 58,819 tonnes per year. The proposed project brings together a bundling agency and a local financial institution, a project developer and private company, as well as a number of entrepreneurs and private companies. Contribution to Sustainable Development: The project combines development with sound ecological practices. A number of benefits accrue from it, which range from improved working conditions to improved practices in natural resources management. The specific benefits include:

• Significant reduction in air pollution, particularly SOx, NOx and SPMs emissions. This will occur

through the reduced use of coal (reductions of up to 50%).

• Reduced incidence of respiratory ailments in urban populations from reduced air pollution.

• Improvements in work environment and employee health.

• On the economic front, the project creates business opportunities for small and micro enterprises. In

contrast to the seasonal production operations in the clay brick industry, HHK plants have the

advantage of continuous year-wide operation, and hence provide yearlong employment opportunity.

• Better fuel efficiency reduces the need for fuel imports and decreases the strain on the country’s

foreign exchange reserves.

• The demonstration of energy efficiency will serve as a model for industry transformation.

• Reducing the rates of land degradation through improved management of clay sourcing. Clay is

often sourced from valuable agricultural land. Through improved techniques, clay could instead

be sourced from riverbeds, reducing land degradation, collaterally, also contributing to flood

control. Volumes of clay extraction can also be reduced through the manufacture of hollow bricks

made possible through brick making process of the HHK. Hence, the amount of clay used per

100,000 bricks produced will be reduced and place less strain on available clay resources.

On a global scale, transforming the currently energy-intensive brick industry to cleaner-burning, less carbon-intensive technology will have significant long-term impacts on Green House Gas (GHG) emissions. The project interventions are also expected to have significant additional impacts from reductions in wood fuel usage.

1 One brick manufacturing “project” consists of two 18-door Hybrid Hoffman Kilns or one 36-door HHK.

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A.3. Project participants: >>

Name of Party involved (host) indicates a host party

Private and/or public entity(ies) project participants (as

applicable)

Kindly indicate if the Party involved wishes to be considered as project participate (Yes/No)

Bangladesh (host)

Project Proponent: Industrial and Infrastructure

Development Finance Company (IIDFCL)

No

Bangladesh (Host) Clean Energy Alternatives (CEA) No

The Netherlands

International Bank for Reconstruction and Development as the Trustee for the Community

Development Carbon Fund (CDCF)

No

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): >> Bangladesh A.4.1.2. Region/State/Province etc.: >> Various regions throughout Bangladesh A.4.1.3. City/Town/Community etc: >> Savar, Gazipur, surroundings areas of Dhaka, Chittagong and Comilla cities A.4.1.4. Details of physical location, including information allowing the unique identification of this small-scale project activity: >> The plant locations for implementing 20 new HHKs in nine brick manufacturing projects have been finalised: Dhamrai (2 projects), Savar (1 project), Gazipur (3 projects), Narayanganj (2 projects), Manikganj (1 project) and Noakhali (1 project). It is expected that the remaining 1 HHK brick kilns will be established with special focus in areas where inefficient brick kilns are clustered2. Some locations of the HHK facilities are shown in the table below and also a map indicating the distribution of brick making activities in Bangladesh is shown in the figure below.

Name of Entrepreneur Location of HHK Facility

2 The remaining 4 projects (8 HHK) will be located in the surroundings of Dhaka and Comilla cities.

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District Latitude Longitude Universal Bricks Dhamrai 23°58'52.00"N 90°11'28.00"E Haair Bricks Savar 23°56'11.00"N 90°14'5.00"E BK Ceramic Bricks Gazipur 24°10'51.00"N 90°23'19.00"E Sun and Rahman Bricks Dhamrai 23°53'5.00"N 90° 8'58.00"E Modern Rotor Bricks Narayanganj 23°45'35.00"N 90°32'43.00"E Uttara Bricks Gazipur 24° 1'47.00"N 90°16'23.00"E Comfort Creation Bricks Gazipur 24°12'33.00"N 90°24'50.00"E Azad Auto Bricks Ltd Noakhali 22*38’46” N 90*06’00”E Kapita Bricks Ltd. Manikganj 23*54’46” N 90*10’22”E Diamond Auto Bricks Ltd. Narayanganj 23*48’00” N 90*34’50”E

Fig: Map Showing Distribution of Brick Making Activities throughout BangA.4.2. Type and category(ies) and technology/measure of the small-scale project activity:

3 in Gazipur

2 in Dhamrai

1 in Manikganj

2 in Narayanganj

1 in Noakhali

1 in Savar

ladesh

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>> According to Appendix B to the Simplified Modalities and Procedures for Small-scale CDM Project Activities, the proposed project activity falls under the following type and category: Project Type : Type II – Energy Efficiency Improvement Projects Category : II.D – Energy Efficiency and Fuel Switching Measures for Industrial Facilities Reference : AMS II.D., Version: 9, Sectoral Scope: 4 This methodology is most applicable as it covers “efficiency measures for specific industrial processes” that “may replace existing facilities”. The project deals only with energy efficiency measures, not fuel switching, for industrial facilities. Description of Technology/Measure: The lead technology to be employed is the energy efficient HHK firing process developed and widely used in China. The HHK is a hybrid version of the Hoffman technology developed in Germany. In addition to kiln efficiency, the process technology employs a direct fuel injection technique to create better thermal bonding and reducing fuel usage and thereby lowers CO2 and other emissions.3 Structurally, the HHK is like the Hoffman kiln, but, unlike the traditional Hoffman, the fuel used is coal. The kiln can be made from firebricks or from green bricks. In the latter event, the green bricks get “cooked” during kiln operation. The inner kiln lining is made from standard bricks and then plastered over by refractory cement. The firing chamber can be filled manually or automatically with green bricks, usually about 5,000 to 6,000 units at a time, in line stacks of around 1,000. Thus, there are five -six line stacks; and the firing time for each line stack is about half an hour. The fuel, granulated coal, is fed into the firing zone in the kiln through stoke holes on the roof. Air required for the combustion process is forced from behind; and, as it reaches the line to be fired, it is already preheated from the previous firing zone thus reducing firing time and energy usage. The temperature in the firing zone is about 900˚ C. The process is extremely simple and is carried out manually. In addition to kiln efficiency, green bricks will be injected with pulverized coal, a technique commonly used in China to make bricks. This technique enables improved thermal bonding and reduces fuel usage, and hence CO2 and other emissions. Clay is premixed with granulated coal and then extruded to produce the green bricks. This is a unique process that is fundamental to the energy efficiency achieved in brick making in China. Almost 80% of the total energy required is injected into the bricks and only about 20% is fed externally into the firing chamber. Most of the fuel mixed into the bricks is almost completely burnt during firing. The design capacity of the proposed 18-door HHK technology will enable production of 15 million bricks (per kiln) of the brick size commonly used in Bangladesh whereas the traditional tall Chimney kiln produces about 2 million on the average. This means that each new 18-door HHK plant will replace 7.5 of the older Energy Inefficient Kilns (EIKs). The fuel, coal, consumed in the 18-door HHK is about 10 to 12 tons per hundred thousand bricks compared to 24 to 26 tons in the traditional kilns. Some entrepreneurs are considering construction of one 36-door HHK instead of two 18-door HHKs due to the configuration of their owned or leased land. Emission factors and production costs of the 36-door 3 Refer Annex 5

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HHK are expected to be equivalent to two 18-door HHKs. The schematic diagram for the brick making process using HHK is shown in figure below: The Production Process

Artificial Cart

Storage Bin

Box Feeder

Crushing Roller Mill

Double Shaft Mixer

Vacuum Extruder

Cutter for Clay Columns

Cutter for Green Bricks

Manual Loading of Drying Car

Tunnel Dryer

Manual Unloading of Drying Car

Manually Loading Kin

Kiln Firing

Unloading manually

Fuel Stack

Coal Pulverization

Stacking Yard

Clay Stack

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Clay Extraction, Transport and Preparation - The clay is excavated by hydraulic excavator or by hand from nearby riverbeds and transported to the plant-stacking yard by trucks. The clay is then crushed by means of roller mills, followed by a double-shaft mixer, where water is added in such a manner as to ensure moisture content of 15%. Brick Shaping - The tempered material is fed into a vacuum extruder for continuous column production. The column is then cut with a cutter column and a cutter green to the required size. The green brick is then manually loaded on to a drying car for drying. Brick Drying - The drying car is then transported into the drying tunnel by means of a hydraulic pusher. Hot air for drying is funneled into the tunnel from the annular kiln. The drying cycle lasts for about 26 hours. Brick Firing - The dried green bricks are unloaded manually into the annular HHK kiln. The speed of the firing is 1.25m/h at a sintering temperature of about 950 oC–1050 oC. The fired bricks are unloaded and conveyed manually in carts to the stacking yard. Main technical data includes: Particle size after roll mill: < 2mm Moisture content for shaping: 18%–20% The rate of dried green bricks: 95% The rate of sintering bricks: 95% Sintering temperature: 950 o C –1050 oC

A.4.3 Estimated amount of emission reductions over the chosen crediting period: >>

Years Annual estimation of emission reductions in tonnes of CO2e

2007 5,941 2008 59,414 2009 65,355 2010 65,355 2011 65,355 2012 65,355 2013 65,355 2014 65,355 2015 65,355 2016 65,355 Total estimated reductions tCO2e 588,194 Total number of crediting years 10 Annual average over the crediting period tCO2e

58,819

A.4.4. Public funding of the small-scale project activity: >> There is no public funding from Annex I party in this project activity.

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A.4.5. Confirmation that the small-scale project activity is not a debundled component of a large scale project activity: In accordance with Appendix C4 of the Simplified Modalities and Procedures for Small-Scale CDM Project Activities “Determining the Occurrence of Debundling”, it can be confirmed that this project activity is not a debundled component of a larger CDM project. There are no other project activities registered or for which registration is sought as small-scale CDM projects with the same project participants and in the same project category and technology/measure of HHK. All the HHK plants included in the project are independently owned and operated by different entrepreneurs. 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: >> Title : Type II – Energy Efficiency Improvements Projects Reference : AMS II.D - Energy Efficiency and Fuel Switching Measures for Industrial Facilities,

Version: 10, Sectoral Scope: 4 B.2 Justification of the choice of the project category: >> The approved methodology, AMS-II.D, states that activities involving efficiency measures for specific industrial processes (such as steel furnaces, paper drying, tobacco curing, etc.) fall into Category II.D. It also states that the measures may replace existing equipment or be installed at new facilities. Manufacturing of burnt clay bricks is an industrial activity that requires thermal energy inputs for the purpose of sintering. Fossil fuel and/or biomass are primarily combusted to provide the required amount of thermal energy for sintering the clay bricks, which results in CO2 emissions. The project design combines a highly efficient kiln technology, the HHK, with a unique technique of forming green bricks, wherein granulated coal is injected for internal combustion. This approach results in lower energy usage, higher quality bricks and reduced pollution. Bricks of any size, shape and pigmentation can be produced at the plant with minor modifications. All bricks will be of uniform quality and will meet international standards for strength, quality and appearance. Use of AMS II.D is therefore considered appropriate. 2) Demonstration for project activity will not exceed 180 GWth: The project introduces energy efficiency measure in form of energy efficient HHK technology in brick making. The measure is proposed to be introduced at 11 new brick production facilities. With full capacity utilization, the total energy savings to be achieved from the project is estimated to be about 177

4 http://cdm.unfccc.int/EB/Meetings/007/eb7ra07.pdf

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GWhth per year. This saving is less than the threshold of 180 GWhth per year applicable to this category of activities as defined in AMS II.D. 3) Demonstration for being with in the limits of SSC through out the crediting period: The project activity is the introduction of HHK technology to 11 new brick production facilities. The project activity will save an energy amounting 161 GWhth. Thus there is no possibility of exceeding the limits of small-scale CDM project activities during the crediting period and the project activity will remain as a small scale project activity. B.3. Description of the project boundary: >> AMS II.D defines the project boundary as the physical and geographical site of the industrial facility, processes and equipment that are affected by the project activity. In the case of the proposed project, the HHK technology will be operationalized inside the kiln premises. The affected process is the brick firing process of a brick making plant. The HHK plant will be installed within the brick kiln premises. The project boundary is thus defined as the physical, geographical area of each of the ten brick production facilities where HHK technology will be installed. The sources of anthropogenic GHGs outside the project boundary include CO2 emissions associated with the transport of raw material and finished product and emissions associated with the transport of fuel. The emissions occurring outside the project boundary are ignored in the approved methodology as they occur both in the baseline as well as in the project. The amount of transport of raw materials such as soil, sand and water, are unaffected by the project and possibly even reduced as the process of making green bricks becomes more efficient. Each 18-door HHK facility will produce 7.5 times more bricks than the conventional brick facilities and at a centralized location close to good transport routes. The HHK being an energy efficient technology, the requirement of fuel in case of the project is lower compared to the baseline. Therefore, emissions due to transport of fuel in the project is lower compared to the baseline. However, to achieve conservative estimates, the lower GHG emissions associated with transport of lower quantity of fuel required in the project is not considered. B.4. Description of baseline and its development: >> As per AMS II.D, “the energy baseline consists of the energy use of the existing equipment that is replaced in the case of retrofit measures and of the facility that would otherwise be built in the case of a new facility”. The proposed project establishes new and more efficient brick making facilities. Therefore, the energy use and corresponding emissions from the brick making facilities that would otherwise have been built and operated in the absence of the project activity, is considered to be the baseline scenario technology. Currently, the brick making sector in Bangladesh uses four types of technologies: Fixed Chimney Kilns (FCK), Bull’s Trench Kilns (BTK), Zigzag Kilns, and traditional Hoffman Kilns. Prior to 2004, most of the kilns in Bangladesh used the BTK design, a relatively primitive design that is over 150 years old. It is highly polluting and exceedingly inefficient in terms of fuel use because its poor design results in crevices forming in the kiln walls. These leaks allow excessive air intake, which results in poor combustion; moreover, there is considerable heat loss from the system.

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The market share for BTKs, in 1995, was 95%5. After promulgation of the Brick Burning (Control) Act in 2004, almost all of the BTKs have been converted to FCKs. This is due, in part, to the requirement that brick kilns have a fixed chimney with a minimum height of 120 feet—a condition that is impractical for BTKs. The FCK design is slightly better than the BTK one in terms of combustion and reduced heat losses but almost the same as far as pollution is concerned. The present market share of different technologies prevalent in Bangladesh is presented in Table 2. Additional information about the different types of technologies used in brick making is provided in Annex 5.

Table 2: Current market share of technologies in the brick making sector

Kiln type Number Percentage of

total Annual brick production (billions)

Percentage of total production

FCK 3,138 76 6,276 75.9 BTK 797 19 1.59 19.3 Zigzag 198 5 0.40 4.79 Total 4,133 100 8.27 100 Source: Improving Kiln Efficiency for the Brick Making Industry - PDF B Phase (UNDP-GEF-BGD/04/014) Some attempts to introduce intermediary kiln technologies have been made in Bangladesh. However, these have been sporadic and based mainly on intermediate technologies such as the FCK and the Zigzag Kiln from India, where the industry is still in a transitional state. The poor adoption rate of the Zigzag Kiln over last five years is due to its marginal efficiency improvement over FCKs, making insufficient justification for any additional investment. The present conditions leave the entrepreneurs little option but to use the FCK technology. Hence FCK is considered as the baseline scenario. However, to be conservative, the baseline reflects the presence of the existing BTKs which are still in operation (about 10% of total). However, for the reasons stated above, this analysis assumes that no new BTKs will be constructed in the future. Energy baseline Based on the justifications provided in the preceding paragraph, energy use of FCK technology brick making facilities is considered the energy baseline. The energy consumption of FCK technology is reported to be 4.0E -6 TJ/ brick6 (see Table 3).

Table 3: Energy consumption of FCK technology

Calorific value of coal 4000 Kcal/Kg Coal consumption per 100,000 bricks 24.00 Tons Brick weight 3.5 Kg Specific fuel consumption 4.0E -6 TJ/brick

5 Energy Saving Brick Kilns, Swiss Development Corporation, 1994. 6 Improving Kiln Efficiency for the Brick Making Industry - PDF B Phase (UNDP-GEF-BGD/04/014)

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The “annual output of each 18-door HHK plant” is multiplied with the above “specific fuel consumption” (of FCK) to arrive at the annual energy consumption in the baseline scenario. Emission baseline The emissions baseline is the historic fuel consumption times the CO2 emission coefficient for the fuel displaced. In Bangladesh, the coal used is sourced from India. An Inter-governmental Panel on Climate Change (IPCC) default value of Indian coal for emission coefficients is used. To derive the CO2 emissions per kiln, the inputs shown in Table 4 have been used.

Table 4: Parameters used to derive CO2 emissions per kiln

Calorific value of coal 4000 Kcal/Kg Coal consumption per 100,000 bricks 24.00 Tons Brick weight 3.5 Kg Specific fuel consumption 4.0E -6 TJ/brick Carbon emission factor for fuel 25.8 tC/TJ Carbon to CO2 conversion factor 3.66

Date of completing the final draft of this baseline section: 24/10/2007 Name of person/entity determining the baseline: Mr Nishant Bhardwaj, [email protected]. IT Power India Pvt. Ltd, 6&8 Romain Rolland St., Pondicherry, 605 001 India, Tel: +91 11 65640687, +919811717687. 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 activity7: The project activity faces one or more barriers as defined in Attachment A to Appendix B of the Simplified Modalities and Procedures for Small-scale CDM Project Activities. A detailed barrier analysis is carried out in the following sections, which reinforces the fact that a number of barriers exists for adoption of HHK technology. In the absence of the project activity, it is expected that the brick manufacturing using conventional energy in-efficient technologies will continue to meet the brick demand in Bangladesh, resulting in substantial CO2 emissions. The project activity is therefore considered additional and would result in emission reductions below those that would have occurred if the conventional brick making technology were to be used. Technical Barrier The major technical barriers to the adoption of energy efficient kiln technologies and in the way energy is utilized in making bricks are the: 7 Improving Kiln Efficiency for the Brick Making Industry - PDF B Phase (UNDP-GEF-BGD/04/014)

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1. Lack of ability to design and construct brick making facilities that utilize energy including process

heat in the most efficient way to lower the energy intensity of brick making; 2. Lack of R&D and training facilities; 3. Lack of capacity in terms of technical skills at the enterprise level to bring about even small changes

that could have made production more efficient and less polluting; 4. Lack of worker and management capacity to enhance productive efficiency. In this context a barrier removal project that aims at introducing a new technology, the Hybrid Hoffmann Kiln, to reduce the energy intensity of kilns-in-use in Bangladesh and consequentially, GHG emissions and local pollution was proposed to GEF. In July 2005, the GEF funded a PDF B Exercise. During the PDF B Phase the project proponents carried out a number of exercises that provided the contextual background for a full blown Project. The findings of the PDF B Exercise were incorporated into a GEF Project Document that has now been formally approved. The lead technology being employed in the kiln is the Hybrid Hoffman Kiln (HHK) firing process adapted and widely used in China. The HHK is a hybrid version of the Hoffman technology developed in Germany. In addition to kiln efficiency, the process technology employs a direct fuel injection technique to create better thermal bonding and to reduce fuel usage and hence CO2 and other emissions. Clay is pre-mixed with granulated coal and then extruded to produce green bricks. This is a unique process and is crucial to achieving energy efficiency. There is a complete dearth of capacity in terms of technical skills at the enterprise level to operate a HHK system. While the conventional brick industry relies on relatively unskilled labor, an HHK brick industry will require more skill-oriented personnel involving an organized production process. This, as been pointed out earlier, is perceived as a significant barrier. In response to this need, the project intends to capitalize on the long-term presence of the Xian Institute of Wall Building Materials (XIAN), a Chinese institute mandated to assisting in capacity building of new brick industries in emerging economies. XIAN is committed to be in Bangladesh even beyond 2012 to provide the necessary technical assistance including planning, design, construction, operations, maintenance, brick molding, accounting and management. As a consequence of this long-term presence of XIAN, it is expected that the brick industry’s capacity to absorb the HHK technology will increase as will their willingness to adopt the cleaner and more profitable brick making technologies. Another objective of the long-term presence of XIAN is to develop and sustain a local service industry to provide backstop engineering and technical services to the emerging industry. XIAN has been present in Bangladesh since early 2006 providing technical assistance and transferring technical knowledge during the construction of the first HHK that is scheduled to start operations in August 2007. It is noteworthy that during this period over 50 Bangladeshi personnel consisting of engineers, technicians, foremen, firemen and laborers were trained by XIAN. It is expected that through continual on-the-job training and retraining by XIAN, a critical mass of trainers will be developed who will be housed in a “center of excellence” in the Bangladesh Brick Makers and Owners Association (BBMOA). Commencing October 2007, the UNDP-GEF project (“Improving Kiln Efficiency for the Brick Industry in Bangladesh”) will also provide support for the sustaining and strengthening of the “center of excellence”. With regard to technology transfer, the strategy is to implement the transfer in two clearly identified and distinct ways:

• Through capacity building of local manufacturers and consulting firms to design, engineer, construct and commission HHKs; and

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• By “training of trainers” who will train enterprise level staff and workers in the use of the HHK production process.

Investment Barrier It is a challenge in Bangladesh to mobilize finance for implementing new technology projects, especially in the brick making sector because the financial sector has rarely engaged in lending to this sector. This is due to the ‘footloose’ nature of the brick manufacturing industry, which is highly unorganized in terms of management and financial matters. There is no access to liquidity to finance modernization of brick making operations. The brick making industries are considered high-risk due to the seasonal, itinerant nature of their operations and their lack of collateral. The commercial lending agencies in Bangladesh have very limited experience with Small and Medium Enterprises (SMEs) and in particular brick making enterprises. The investment requirement for the conventional brick making industry is very less when compared to new technologies like HHKs.8 The existing conventional brick kilns like BTK, FCK and the Zigzag Kiln, all have approximately the same production capacity of 2 to 2.5 million bricks per season, but in terms of initial investment, a BTK is the cheapest requiring Taka 2.5 million compared to Taka 4 million for a FCK or a Zigzag Kiln9. However, because of the yearly rebuilding requirement of the BTK and the fuel savings of the FCK and Zigzag Kiln, on a life-cycle costing basis, the cost of bricks is nearly the same for the three types of kilns. The HHK, which has a capacity of up to 15 million bricks, is clearly the most expensive, requiring an initial investment of at least Taka 30 million. Building a HHK requires special expertise and thus involves engaging engineering consultants. Working capital requirement for a BTK, FCK and Zigzag Kiln is approximately Taka 1 million, but for a HHK it can go up to Taka 7.5 million because of higher inventory, maintenance and overhead costs. Profitability in the current brick business largely depends on the sales volume as the profit margin per brick is low. Given limited capital resources, the manufacturers generally prefer to increase production capacity by setting up a new plant in a new location over investing in cleaner and efficient technologies. The appreciation of energy saving and related savings in the operational cost continues to be low among the brick manufacturers. Given this reality and the current lack of specific regulatory pressure, current brick manufacturers are likely to be reluctant to invest in the more costly HHK technology unless investment returns are improved. Institutional and Regulatory Barriers In Bangladesh, there is a lack of supporting regulations, fiscal incentives and standards to encourage more energy efficient practices and technologies. Except for some sporadic efforts to regulate the industry, government has made little effort to establish effective boundary-limit emission standards. There is very little or no governmental activity to assist the brick industry to undertake comprehensive programs to transform the industry and make it less polluting and more profitable. Brick makers have been left to bring in changes on their own, which they have failed to do since they are locked into a vicious cycle of a

8 Improving Kiln Efficiency for the Brick Making Industry - PDF B Phase (UNDP-GEF-BGD/04/014) 9 Gomes, Edmond and Ijaz Hossain, “Transition from traditional brick manufacturing to more sustainable practices.” Energy for Sustainable Development, Vol. VII, No. 2. June, 2003

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low efficiency/low income trap.10 A few initiatives that have taken place in the past have come from new entrants and not from traditional brick makers. Other Barriers Total brick production in Bangladesh is estimated to be over 8.66 billion bricks annually with an estimated sale value of around US$450 million, almost 1% of Bangladesh’s GDP. The average brickfield employs about 123 skilled and unskilled workers. Apart from 6 to 10 permanent employees, most are employed for only six months during the production season. These seasonal employees, mostly migrant workers from northern Bangladesh, are compelled to seek employment elsewhere during the ‘off-season’, in agriculture and in other casual work. So there exists a precarious situation for the brick manufacturers in finding workers. Other than the modifications done in the FCK, kiln technology in Bangladesh has not changed in any significant way in the last 150 years; neither regulatory requirements nor market imperatives have made change a necessity. Consequently, age-old practices and doing things the old way have been the hallmark of the brick industry. The recent addition of the 120-foot chimney was readily adopted because it retained the essence of the earlier BTK technology, allowing brick owners to continue with their usual business practices. Other attempts to introduce modern kiln technologies have also been sporadic and based mainly on intermediate technologies such as the Zigzag and Vertical Shaft Brick Kiln (VSBK Kilns) from India, where the industry is still in a transitional state. An attempt was made to introduce the latter in the mid 1990s to introduce a less polluting and more energy efficient version of the VSBK; at that time, the VSBK was popular in China. However, a Swiss Development Agency study concluded that the effort was a sole source effort lacking the multi-dimensional and holistic methodology that is necessary to transform entrenched ways of doing business. Moreover, the failure of this VSBK demonstration was mainly due to lack of stakeholder outreach, inadequate management and training of personnel, lack of credit for the brick manufacturers from financial institutions, and a high rate of brick spoilage during the demonstration. In this type of a business environment, the introduction of new technologies like HHK, contractual arrangements with government agencies and suppliers, and long-term financial commitments are extremely challenging. The risks for project developers, investors and promoters are very high. B.6. Emission reductions: B.6.1. Explanation of methodological choices: >> Type II – Energy Efficiency Improvement Projects. Type AMS II.D: Energy efficiency and fuel switching measures for industrial facilities. Version 09, EB 31. For new facilities, the approved methodology requires the following:

1. Documenting the specifications of the equipment replaced; 2. Metering the energy use of the industrial or mining and mineral production facility, processes or

the equipment affected by the project activity; 3. Calculating the energy savings using the metered energy due to the equipment installed or

alternate technology adopted.

10 BUET, 2002, “Fuel Substitution in Brick Manufacturing”, Report prepared for the TERI-Canada Energy Efficiency Project, www.pembina.org.

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The project involves implementation of energy efficiency measures in the form of HHK technology at the brick manufacturing facilities to reduce thermal energy inputs to brick firing. As per the approved methodology AMS-II.D (Version 09: EB 31): Energy efficiency and fuel switching measures for industrial facilities, the critical parameter that needs to be monitored is the energy use in the equipment installed. In the case of the proposed project, the critical parameter is the thermal energy use in the HHK brick kiln. The method proposed in the project is exactly similar to that described in the type II.D of the small-scale projects. Therefore, the methodology for monitoring proposed in project type II.D is applicable to the project. Metering the energy use of the equipment installed The approved methodology AMS-II.D (Version 09: EB 31): Energy efficiency and fuel switching measures for industrial facilities, requires metering of the energy use of the equipment installed. In case of the project, the equipment is HHK, which consumes thermal energy. Metering is an easy and appropriate way of measuring the energy consumption in electrical systems. In case of the project, where energy is used in thermal form, it is proposed to measure the energy use through monitoring of quantity of fuel (coal) used along with their calorific values. The calorific values will be monitored once in every six months. This seems a reasonable frequency, as the calorific value of the coal from the same source (coal mines) is similar and these sources are not expected to change in six months. The additional parameter that needs to be monitored to enable the estimation of energy savings is the output of the plants in terms of the number of bricks produced. Calculating the energy savings due to the equipment installed The energy savings achieved through the introduction of HHKs will be calculated by subtracting the amount of energy used in HHK from the amount of energy that would have been used if the amount of bricks produced in the project were to be produced using FCK technology. The following equations will be applied for the estimation of emission reductions for the project activity: A. Description of formulae used to estimate project emissions Total Emissions, E HHK , by operations of 22 HHK plants are given by 22 E HHK = ∑ E HHK y y=1 Where, E HHK y - Project emissions per year from operation of yth plant, ranges from 1 to 22 E HHK y = SFC y * Q Bricks y * EF * CF Where, SFC y = Specific Fuel (energy) Consumption in kiln y (TJ/brick) Q Bricks y = Total brick production per year in kiln y EF = IPCC default Carbon Emission Factor for fuel used (tC/TJ) CF = Carbon to CO2 Conversion Factor

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From the monitored data, the specific energy consumption for the individual kilns is estimated using the following formulae: SFC y = Q Coal y * CV Coal y / Q Bricks y Where, Q Coal y = Total coal consumption per year for Kiln y CV Coal y = Calorific Value of coal used in yth Kiln ny Q Coal y = ∑ q coal n y n=1 Where, q n y = daily coal consumption in Kiln y ny Q Bricks y = ∑ q bricks n y * M Bricks y n=1 Where, q bricks n y = Daily production of bricks in Kiln X (bricks/day) ny = Total no. of production days for Kiln y in a year M Bricks y = Weight of the bricks in kiln y (kg/brick) B. Description of formulae used to estimate baseline emissions The emissions E FCK from the baseline activity are calculated as follows: 22 E FCK = ∑ E FCK y y=1 Where E FCK y - Baseline emissions per year corresponding to the yth Kiln E FCK y = SFC FCK y * Q Bricks y * EF * CF Where, SFC FCK y = Specific Fuel (energy) Consumption in FCK kiln y (TJ/brick) Q Bricks y = Total brick production per year in kiln y EF = IPCC default Carbon Emission Factor for fuel used (tC/TJ) CF = Carbon to CO2 Conversion Factor C. Description of formulae used to estimate emission reductions for the project activity Emission reduction achieved by each HHK plant is calculated by using the formula ER y = E FCK y - E HHK y

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Total emission reduction achieved by all the plants is thus calculated as m ER Total = ∑ E FCK y - E HHK y y =1 Where, m = number of plants included in the project = 22 B.6.2. Data and parameters that are available at validation: Data / Parameter: EF Data unit: tC/TJ Description: Carbon Emission Factor for Coal Source of data used: IPCC default value Value applied: 25.80 Justification of the choice of data or description of measurement methods and procedures actually applied :

Authenticated data from IPCC

Any comment: Data / Parameter: CF Data unit: tCO2e/tC Description: Carbon to CO2 conversion factor Source of data used: Not Applicable Value applied: 3.67 Justification of the choice of data or description of measurement methods and procedures actually applied :

Not Applicable

Any comment:

B.6.3 Ex-ante calculation of emission reductions: >> The Ex-ante emission reductions are calculated using the following method: 1. Calculations for Baseline Emissions:

Specific fuel consumption FCK Parameter Value Unit Quantity of coal 0.0002400 coal (tonne/brick) Quantity of coal 0.24 kg/brick Specific coal consumption 960.00 kcal/brick Specific coal consumption 4,019,520.00 Joules/brick

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Specific coal consumption 0.0000040 TJ/ brick Emission calculation per FCK (baseline)

Parameter Value Unit Calorific value of coal 4,000.00 Kcal/Kg 16,748.00 kJ/kg Coal consumption per 1,00,000 bricks 24.00 tonnes Brick weight 3.50 Kg Specific fuel consumption 0.0000040 TJ/brick Carbon emission factor for fuel 25.80 tC/TJ Carbon to CO2 conversion 3.67 tCO2e/tC Avg. bricks manufactured per kiln 2,000,000.00 100 % oxidation Emission per FCK per year 760.49 tCO2e Emission per 15,000,000 5,703.70 tCO2e 2. Calculations for Project Emissions: Specific fuel consumption for HHK

Parameter Value Unit Quantity of coal 0.0001150 tonne/brick Quantity of coal 0.12 kg/brick Specific coal consumption 460.00 kcal/brick Specific coal consumption 1,926,020.00 Joules/brick

Specific coal consumption 0.00000193 TJ/ brick Emission calculation per HHK

Parameter Value Unit Calorific value of coal 4,000.00 Kcal/Kg 16,748.00 kJ/kg Coal consumption per 1,00,000 Bricks 11.50 tonnes Brick weight, 3.50 Kg Specific fuel consumption 0.00000193 TJ/brick Carbon emission factor for fuel 25.80 tC/TJ Carbon to CO2 conversion 3.67 tCO2e/tC Avg. bricks manufactured per kiln 15,000,000.00 Avg. emissions per HHK per year 2,733.02 tCO2e Total emission reductions per year per HHK 2,970.68 tCO2e 3. Calculations for Emission Reductions:

Year New HHK installation

Cumulative Installations

Number of Bricks Produced

Emission Reductions,

tCO2e 2,007 2 2 30,000,000 5,941 2,008 18 20 300,000,000 59,414 2,009 2 22 330,000,000 65,355 2,010 22 330,000,000 65,355 2,011 22 330,000,000 65,355

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2,012 22 330,000,000 65,355 2,013 22 330,000,000 65,355 2,014 22 330,000,000 65,355 2,015 22 330,000,000 65,355 2,016 22 330,000,000 65,355

Total Estimated Reductions(tCO2e) 588,194 Annual Average of Estimated Reductions Over 10 year Crediting Period (tCO2e)

58,819

B.6.4 Summary of the ex-ante estimation of emission reductions: >>

Year Estimation of project activity

emissions (tCO2 e)

Estimation of baseline

emissions (tCO2 e)

Estimation of leakage (tCO2 e)

Estimation of overall emission

reductions (tCO2 e)

2007 5,466.04 11,407.40 0 5,941.35 2008 54,660.45 114,073.98 0 59,413.53 2009 60,126.49 125,481.38 0 65,354.88 2010 60,126.49 125,481.38 0 65,354.88 2011 60,126.49 125,481.38 0 65,354.88 2012 60,126.49 125,481.38 0 65,354.88 2013 60,126.49 125,481.38 0 65,354.88 2014 60,126.49 125,481.38 0 65,354.88 2015 60,126.49 125,481.38 0 65,354.88 2016 60,126.49 125,481.38 0 65,354.88

Total (tonnes of tCO2 e) 588,193.95 B.7 Application of a monitoring methodology and description of the monitoring plan: B.7.1 Data and parameters monitored: Data / Parameter: Q Coal

Data unit: Tonnes/year Description: Quantity of coal consumed per year for brick making Source of data to be used:

On-site measurements by the kiln owner

Value of data Description of measurement methods and procedures to be applied:

The actual weight of coal consumed will be measured on-site using a weighing scale. The data recording will be done continuously. The entire data will be monitored and will be archived

QA/QC procedures to be applied:

Consumption data will be verified with on-site measurement records supported by vouchers for quantity of coal purchased and corresponding changes in the stock.

Any comment: The data will be archived two years after the end of the crediting period.

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Data / Parameter: CV Coal

Data unit: Kcal/Kg Description: Calorific value of coal consumed for brick making Source of data to be used:

As per the data provided by the supplier

Value of data Description of measurement methods and procedures to be applied:

The actual calorific value of coal consumed at the plant will be obtained twice a year from the coal supplier. The entire data will be monitored and will be archived on paper.

QA/QC procedures to be applied:

Calorific value data will be verified with the country-specific data.

Any comment: The data will be archived two years after the end of the crediting period. Data / Parameter: Q Bricks

Data unit: Number of bricks/year Description: Total number of bricks produced per year Source of data to be used:

On-site measurements by the kiln owner

Value of data Description of measurement methods and procedures to be applied:

The total quantity of bricks produced at the plant will be recorded on a daily basis by the kiln owner. The entire data will be monitored and will be archived on paper.

QA/QC procedures to be applied:

The data can be cross checked by comparing it with the quantity of bricks sold based on the sale receipts.

Any comment: The data will be archived two years after the end of the crediting period.

Data / Parameter: M Bricks

Data unit: Kg Description: Weight of bricks Source of data to be used:

On-site measurements by the kiln owner

Value of data Description of measurement methods and procedures to be applied:

Every month 100 fired bricks will be weighed to calculate the average weight of the brick. The entire data will be monitored and will be archived on paper.

QA/QC procedures to be applied:

The kiln owner will carry out the actual measurement, and record the data.

Any comment: The data will be archived two years after the end of the crediting period.

Data / Parameter: SFC Data unit: Kg/brick

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Description: Specific fuel consumption per brick Source of data to be used:

Calculated by the kiln owner

Value of data Description of measurement methods and procedures to be applied:

The specific fuel consumption per brick will be calculated twice a year based on the data for coal consumed and bricks produced during the corresponding period.

QA/QC procedures to be applied:

The data can be cross checked by comparing it with the quantity of bricks sold and coal purchased based on the sale/purchase receipts.

Any comment: The data will be archived two years at the end of the crediting period.

Data / Parameter: N Days

Data unit: Number Description: Number of operational days of the kiln in a year Source of data to be used:

Recorded by the kiln owner

Value of data Description of measurement methods and procedures to be applied:

The kiln owner will keep a record of the number of operational days of the kiln during the year.

QA/QC procedures to be applied:

The kiln owner will record the data.

Any comment: The data will be archived two years after the end of crediting period.

B.7.2 Description of the monitoring plan: >> The data relevant to the project are proposed to be monitored and recorded manually by the plant operators. The following quality control measures will be adopted to increase the reliability of the data monitored. The plant owners (entrepreneurs) will monitor the data for their respective plants based on batch-wise coal consumption, daily brick production and weight of the bricks once in a month and record the information in the plant register. Additionally, the calorific value of the coal will be monitored once in every six months. The above data will be submitted to Clean Energy Alternatives (CEA) for archiving purposes. In case the data reported by the entrepreneurs exceed the values corresponding to the installed capacity of the plants, the values corresponding to the installed capacity will only be used for the purpose of estimation of emission reductions. In such cases, the higher value on brick production (compared to the plant capacity) reported by the entrepreneurs will be replaced by the figure corresponding to the maximum plant capacity. In order to improve the reliability of data recorded by the plant operators, CEA will carry out an audit of the plants on an annual basis. Ten percent of the plants are proposed to be covered under the audit. The audit will be carried out at least for three consecutive days, and CEA’s auditors will verify the data on brick production as well as fuel consumption.

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The annual coal consumption data reported by the plant operators will be cross-checked against the data recorded in the coal purchase register of the plant, and the higher value after adjusting for the closing stock at the plant will be considered against annual coal consumption. Similarly, the annual brick production data reported by the plant operators will be cross-checked against the raw materials used, especially against the annual coal consumption data (as determined above) using the typical HHK performance data. The lowest specific consumption reported for HHK will be considered to back-calculate the brick production. The brick production figure calculated will be compared with the brick production figure reported by the entrepreneurs, and the lower one will be considered for the purpose of emission reductions. B.8 Date of completion of the application of the baseline and monitoring methodology and the name of the responsible person(s)/entity(ies) >> Final version completed: 24/10/2007. Name of persons determining the baseline: Mr Nishant Bhardwaj, [email protected]. IT Power India Pvt. Ltd, 6&8 Romain Rolland St., Pondicherry, 605 001 India, Tel: +91 11 65640687, +919811717687. 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: >> 15th June 2007 C.1.2. Expected operational lifetime of the project activity: >> 30 Years C.2 Choice of the crediting period and related information: Fixed Crediting Period C.2.1. Renewable crediting period Not Chosen C.2.1.1. Starting date of the first crediting period: >> Not Applicable C.2.1.2. Length of the first crediting period: >> Not Applicable

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C.2.2. Fixed crediting period: C.2.2.1. Starting date: >> Date of registration of the project activity C.2.2.2. Length: >> 10 y -0m SECTION D. Environmental impacts >> D.1. If required by the host Party, documentation on the analysis of the environmental impacts of the project activity: >> (To be completed later as soon as we receive the Environment Assessment Report) This project is designed to support Bangladesh’s drive towards a sustainable energy sector. The National Energy Policy of 1996 and the draft National Energy Policy of 2005 emphasize energy efficiency and conservation as the key to pushing the energy envelope throughout Bangladesh. The Government of Bangladesh’s (GoB) commitment to energy efficiency is shown in the recent formation of the Sustainable Energy Development Agency (SEDA), housed under the Ministry of Power Energy and Mineral Resources. SEDA are the National Executing Agency for this project. The project will have a net positive impact on the balance of payments and contribute to the energy security goal of the government. The project will also contribute to macroeconomic stabilization policies and poverty alleviation targets enshrined in the Millennium Development Goals (MDG). Furthermore, improvement of Bangladesh’s environmental conditions has been a top priority of the GoB. In the early 1990s, the National Environment Management Action Plan (NEMAP) afforded an opportunity for civil society to provide inputs to develop the country’s environment policies. One of NEMAPs environmental priorities was reducing pollution from brick kilns. GoB’s response to NEMAP was to promulgate the Environmental Conservation Act (1995) and Rules (1997) that included legislation to control brick kiln emissions. More recently, the Ministry of Environment and Forests (MoEF) issued a directive requiring brick kilns to construct 120-feet (36.6 m) high chimneys. Despite these efforts, external assistance was clearly required to fund a concentrated effort to transform the industry towards cleaner brick-making technologies to reduce air pollution. The project will mitigate these negative impacts and contribute to attaining MDG goals and further the efforts to integrate environmental conservation and poverty alleviation strategies contained in the 2003 I-PRSP, the Dhaka Declaration and the Declaration of the World Summit on Sustainable Development 2002. It will also assist in achieving United Nations Development Assistance Framework (UNDAF) outcomes, specifically UNDAF 4.1 and 4.2. The project is also a strategic focus of the CPAP formulated recently. 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: >>

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(To be completed later as soon as we receive the Environment Assessment Report) SECTION E. Stakeholders’ comments >> E.1. Brief description how comments by local stakeholders have been invited and compiled: >> Stakeholders’ involvement in elements of project design has been sought through:

Frequent consultations, which commenced in May 2002 with members of the BBMOA; Their participation in the Logical Framework Analysis (LFA) workshops of July 2003 and July

2005; Their participation in the UNDP-GEF sponsored study tours to Xian, China to view the HHK

technology; and Numerous market surveys, interviews, and round table discussions.

Local stakeholders included the BBMOA, BUET, IIDFCL, DoE and the Ministry of Power Energy and Mineral Resources (MoPEMR). All stakeholders participated in the aforementioned activities. They also provided suggestions and ideas on all potential issues including:

HHK technology details and possible adoptions in the country’s environment; Financing arrangements for SMEs for larger investments; Commercial bank concerns of risk towards SMEs; and Government policies that would create an enabling environment for investors towards cleaner

technologies for brick production E.2. Summary of the comments received: >>

A national participatory workshop was conducted on July 21, 2005 to solicit stakeholder comments and inputs on strategies to facilitate investments into cleaner brick making technologies in Bangladesh. The workshop was successful considering the wide range of participants and the high level of interest on the topic. Stakeholder’s comments included strong support for developing a program for setting up and operating demonstration Energy Efficient Kilns (EEKs), and sustaining a market transformation program towards a cleaner brick industry. Their comments also included the type of technologies to be demonstrated including the HHK, and providing adequate support for capacity building, knowledge transfers and technical assistance for the planning, finance, design, construction operation and maintenance of EEK facilities throughout Bangladesh. Support for the HHK, however, was reserved pending their visit to Xian, China to observe an operational HHK;

A visit to XIAN facilities in Xian, China was conducted in November 2005 to provide

stakeholders the opportunity to observe operational HHKs. Stakeholder concerns included the higher costs of the HHK and its functionality in a Bangladeshi environment. The visit, however, reinforced positive stakeholder views of the HHKs and provided key information of the actual costs and anticipated performance of such a plant under Bangladeshi conditions. Stakeholders comments included positive impressions on the efficiency and the significant reduction of emissions from the Chinese HHKs, and urgent need to be able to observe an HHK in Bangladesh;

A second national participatory workshop was conducted on 28 March 2007. Comments from

BBMOA membership, prospective investors and government officials on the HHK program were

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received. A field trip was incorporated as a part of the workshop to showcase the completed demo HHK in Dhamrai, west of Dhaka City. Though the HHK was not yet operational at that time, several BBMOA members and interested entrepreneurs were able to observe the energy conservation features of the HHK and were sufficiently impressed to inform project promoters of their plans to commence construction of HHKs as soon as they could observe the operations of the demonstration HHK (expected to be in July 2007).

Informal consultations were conducted throughout 2007 by all entrepreneurs with residents from

adjacent areas of the proposed HHK sites. In all cases, support for the HHKs was strongly supported by adjacent residents as they viewed the new HHK plants as significant job opportunities for the communities.

E.3. Report on how due account was taken of any comments received: >> For the program to build the 11 HHK projects on this PDD, project promoters incorporated the following program features as a response to stakeholder comments and inputs:

They have made arrangements for the Xian Institute of Wall Building Materials to be resident in Bangladesh during the 2007 to 2011 period to technically support and build the capacity of a new and cleaner brick industry through the construction and operation of new HHKs. The role of XIAN will be to provide knowledge transfers, capacity building and technical assistance to entrepreneurs, engineers, and vocational level personnel in the planning, financing, design, construction, operation and maintenance of HHKs in Bangladesh for this program;

IIDFCL will provide financing advice for new entrants to the new HHK brick industry. IIDFCL

is support by 11 commercial banks in Bangladesh;

Technical advice on optimizing energy efficiency in HHK operations will be provided through the long-term involvement of XIAN and Clean Energy Alternatives, the project promoters. This advice is important if the industry is to maximize its profitability an rate of return on investment into cleaner technologies and production methods;

All entrepreneurs are intending to employ local personnel to the extent possible as a means of engaging the local community on the project and reducing their investment risks.

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Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY Organization: World Bank Carbon Finance Unit Street/P.O.Box: 1818 H Street, NW Building: MC4-414 City: Washington DC State/Region: DC Postcode/ZIP: 20433 Country: USA Telephone: 1 202 473 9189 FAX: 1 202 522 7432 E-Mail: [email protected] URL: www.carbonfinance.org Represented by: Title: Manager Salutation: Ms. Last Name: Chassard Middle Name: First Name: Joelle Department: ENVCF Mobile: Direct FAX: Direct tel: Personal E-Mail: Organization: Clean Energy Alternatives Street/P.O.Box: Road 13/A, Building: House 90, Block D City: Banani State/Region: Dhaka Postcode/ZIP: 1213 Country: Bangladesh Telephone: 88 2 9882022, 88 2 9881028 FAX: E-Mail: URL: Represented by: Title: Chief Executive Officer Salutation: Dr. Last Name: Hussain Middle Name: First Name: Sabu Department: Mobile: Direct FAX: Direct tel: 88 2 9882022, 88 2 9881028

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Personal E-Mail: [email protected]

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Annex 2

INFORMATION REGARDING PUBLIC FUNDING

NO PUBLIC FUNDING FOR THE PROJECT ACTIVITY

Annex 3

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BASELINE INFORMATION

Annex 4

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MONITORING INFORMATION The detailed monitoring information has been provided in section B.7

Annex 5

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Brick making technologies in Bangladesh – why is this here?

Bull’s Trench Kiln (9% of total)

Prior to 2004, most of the kilns in Bangladesh used the Bull’s Trench kiln (BTK) technology, a primitive technology that is over 150 years old, and exceedingly inefficient in terms of fuel use because they are poorly constructed; as the leaks through the kiln walls cause excessive air and heat loss from the system.

A BTK is essentially an elliptical shaped trench in an open field. The kiln is about 250 ft long and 57 ft wide and has two 32 ft high moveable chimneys. The bottom and the sidewalls of the kiln are lined with bricks with the top left open. Sun-dried bricks are stacked in the kiln in an orderly fashion, leaving enough room for fuel stoking and air circulation. After arranging the bricks in the kiln, the top of the kiln is covered with fired bricks and pebbles. The bricks are fired from the top and the fire moves forward towards the chimney. The air entrance opening (air hole) and the chimney are located at the two ends in such a way that combustion air is preheated by taking heat from the fired bricks, and the green bricks to be fired are preheated by the flue gas on its way out of the chimney. The bricks are fired all around the kiln, which means that the chimney and the air hole must be progressively moved forward, until all bricks in the trench are fired. The chimneys are made of iron sheets and during a typical season of five months these need to be replaced two to three times because the corrosive flue gases eat away the chimneys very fast. Rain and floodwater destroy the kiln every year because of which BTKs need to be constructed almost from scratch every year.

Fixed Chimney Kiln (88% of total)

The chimney in a Fixed Chimney Kiln (FCK) is fixed and is approximately 130 ft high. This tall chimney creates a stronger draft, thereby improving the combustion process, and releases the flue gas at a height 130 feet above the ground, thus providing faster and better dispersion. The kiln has underground piping to divert the flue gas from anywhere in the kiln to the fixed chimney. Its length is same as that of the BTK, but its width is greater to accommodate the underground piping. The FCK also has better insulation in the sidewalls, which reduces heat loss to the surroundings.

Zigzag ( 0.6% of total)

The Zigzag Kiln is rectangular in shape and measures 250 ft by 80 ft. It has a 55 ft-high fixed chimney located on one side of the kiln. At the bottom of the chimney there is a blower, which draws the flue gas from the kiln and discharges it to the atmosphere. The kiln is divided into 44 to 52 chambers, which are separated from each other in such a way that the hot gases move in a zigzag path through the kiln. The Zigzag Kiln is reported to be 10%–15% more fuel-efficient than the FCK. It is expensive to construct and costs approximately the same as a FCK. There are about 30 such kilns in operation, mainly in the Comilla region. The construction technology is not easily available and expertise has to be procured from the neighbouring states of India.

Hoffman (2.4% of the total)

A Hoffman Kiln is rectangular in shape and measures 300–400 ft by 60 ft. Its construction and operation is very similar to the FCK. The predominant difference between the Hoffman Kiln and the others described above is the fixed roof, which enables bricks to be fired throughout the year although during the rainy season, which is called ‘off-season’, the production decreases significantly because of frequent rain, high humidity and greatly reduced availability of sunlight. Some manufacturers overproduce green bricks during the dry season and store them for the rainy season but to do that adequate storage facility must be made available. Also, for off-season production, clay has to be stored, as harvesting of clay becomes impossible due to widespread floods during the rainy season.

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The inside roof of the kiln is arched and has a firebrick lining on the inside surface. The thick walls of the kiln and good insulation minimize heat loss to the surrounding. The chimney is 76 ft high with a blower at the bottom. Green bricks are stacked in the kiln in more or less the same fashion as in the FCK. The bricks are fired from the top by introducing the fuel (natural gas) into the combustion zone through pipe-type burners. The burners are shifted forward from section to section as the fire progresses – fired bricks are unloaded at the back while green bricks are stacked in front of the firing zone. The flue gas is conveyed towards the chimney through a network of channels just below the kiln. Fire is controlled without the aid of any instrumentation or controllers by merely adjusting the gas flow rate and the opening and closing of dampers located at selected points in the flue gas network. Controlling the fire is the trickiest part of the whole operation. Since there is no institutional arrangement to learn the firing technique, several years of on-the-job training as an apprentice is needed to master the technique.

Annex 6 List of Abbreviations: BBMOA Bangaldesh Brick Manufacturing Owners Association

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BTK Bull’s Trench Kiln

BUET Bangladesh University of Engineering and Technology

CDCF Community Development Carbon Fund

CDM Clean Development Mechanism

CEA Clean Energy Alternative

CER Certified Emission Reduction `

CO2 Carbon dioxide

DoE Designated operational Entity

EB Executive Board

EIA Environmental Impact Assessment

FCK Fixed Chimney Kiln

GHG Green House Gases

GDP Gross Domestic Product

GoB Government of Bangladesh

GWh Giga Watt Hour

HHK Hybrid Hoffman Kiln

IIDFCL Industrial and Infrastructure Development Finance Company

IMF International Monetary Fund

IPCC Inter Governmental Panel on Climate Change

kWh Kilo watt hour

MDG Millennium Development Goals

MoEF Ministry of Environment and Forests

MoPEMR Ministry of Power Energy and Mineral Resources

MWh Mega watt hour

NEMAP National Environment Management Action Plan

NGO Non-government organization

PDD Project Design Document

SEDA Sustainable Energy Development Agency

SME Small and Medium Enterprises

SPM Suspended Particulate Matter

UNFCCC United Nations Framework Convention on Climate Change

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VSBK Vertical Shaft Brick Kiln

Annex 7

REFERENCE

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2) http://cdm.unfccc.int/EB/Meetings/007/eb7ra07.pdf ,

Annex 7: Appendix C1 of the Simplified Modalities and Procedures for Small-Scale CDM Project

Activities

3) “Energy Saving Brick Kilns”, Swiss Development Corporation, 1994.

4) “Improving Kiln Efficiency for the Brick Making Industry” - PDF B Phase (UNDP-GEF-

BGD/04/014)

5) Gomes, Edmond and Ijaz Hossain, “Transition from traditional brick manufacturing to more

sustainable practices.” Energy for Sustainable Development, Vol. VII, No. 2. June, 2003

6) BUET, 2002, “Fuel Substitution in Brick Manufacturing”, Report prepared for the TERI-Canada

Energy Efficiency Project, www.pembina.org.

7) BCAS, 1997, “Energy Savings in Brick Units of Bangladesh”, a report prepared by Bangladesh

Centre for Advanced Studies, Dhaka.