The proposed project, Chongqing Fuyuan (High Pressure) N2O Abatement Project (hereafter, the Project), is developed by Chongqing Fuyuan Chemical Co. Ltd. and EcoSecurities Group PLC. The purpose of the Project is to reduce the current levels of N2O emissions at Chongqing Fuyuan Chemical’s nitric acid plant during the production of nitric acid (HNO3). o

Nitrous Oxide (N2O) is an undesired by-product emitted from the production of nitric acid (HNO3), which is formed during the catalytic oxidation of Ammonia. N2O is directly released into the atmosphere from nitric acid production plants without any treatment, as it does not have any economic value or toxicity. N2O is however recognised as a potent greenhouse gas with a Global Warming Potential (GWP) of 310 compared to carbon dioxide (CO2), and currently is responsible for approximately 6% of the greenhouse effect1. The production process of nitric acid typically generates N2O quantities of 2-22 kg per tonne of pure anhydrous nitric acid (100%)2, thus not removing N2O from the production of nitric acid has a large potential for global warming.

The Project will use the secondary N2O abatement catalyst technology which involves the installation of a secondary catalyst in the burner basket. The secondary catalyst will be located beneath the ammonia oxidation catalyst gauzes, and through a secondary catalyst N2O will be converted into Nitrogen (N2) and Oxygen (O2) which have no adverse environmental or human health impacts.

The Project will produce environmental and economic benefits, which will contribute to the sustainable development of the Host Country. The specific sustainable development benefits of the Project are as follows:

• A new technology transfer to the Host Country, reflected in the installation of a N2O abatementechnology, which will include a novel N2O abatement catalyst and monitoring system/equipment, furthermore, the local plant staff will be trained to operate this new equipment; • The awareness of local residents regarding environmental protection will enhance through a series of training sessions to plant staff whose family members are the local residents; • The applied monitoring system for N2O emissions will follow the European Standard EN 14181, which is not only new for Chongqing Fuyuan Chemical and for the Host Country, but also novel in Europe. By following the quality assurance of the automated measuring systems, the local employees will build capacity in these quality management techniques that are not yet widely spread in the Host Country;

• The commissioning and operation of monitoring equipments and catalyst will contribute to the creation of the technical and organisational capacity of domestic contractors.

Plant information

The nitric acid production facilities at the site were engineered by Linxi Yuanjing Chemical Technology Ltd. Co. in May of 2005. The supplier of the ammonia oxidation reactor was Chongqing Yongchuan General Machine Plant. The design capacity is 50,000 metric tonnes of NHO3 (100%) per year. The design operating time is 330 days a year.

The existing production unit at Chongqing Fuyuan Chemical’s nitric acid plant is a single pressure (high reaction pressure) plant which began commercial operations in November of 2005. Some key information about this plant is shown in Table 1.

Table 1. Key parameters of the nitric acid plant (subject to changes after verification)3

       Number of burners                                              1

Average production per day

       152 tonne per day (100% HNO3)                 in previous four campaigns

Average operating time per year

311 days (47200 per year)

in previous four campaigns

Average historical campaign length in previous four

91 days (or 13848 tonnes) per campaigns (normal operating time of a campaign) The 1st historical campaign November 25, 2005 to May 14, 2006 The 2nd historical campaign May 15, 2006 to August 28, 2006 The 3rd historical campaign August 29, 2006 to November 27, 2006 The 4th historical campaign November 28, 2006 to March 10, 2007

The training of the plant staff has been undertaken in order to ensure the proposed project is compliance with the methodology AM0034 VERSION 02. Details regarding the content and future plans of the training are described in the Monitoring Manual, which will be available for the verifying DOE during the verification. A summary of the training plan can be found in the monitoring plan in Annex 4.