Purpose of the Project Activity:

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Alkyl Amines Chemicals Ltd. (AACL), Pune, India proposes to expand its activities in the area of energy conservation by promoting a Captive Co-Generation Power Plant (CPP) primarily based on Biomass (Bagasse, a renewable energy source) for serving the heat and power needs of the chemical unit in Kurkumbh, Pune. Steam from the extraction cum backpressure turbine will meet the needs of process thermal requirement.

The proposed cogeneration power plant at AACL will be operated for 330 days in a year, and will be operated on bagasse for a minimum of 270 days in a year because of seasonality in sugarcane production where ‘bagasse’ is a biomass by-product

During non-availability of bagasse the plant will operate using coal as a fuel for a maximum period of 60 days.

Before the implementation of the project activity, AACL Kurkumbh unit had a package type smoke tube furnace oil fired boiler for meeting the low pressure and medium pressure processteam requirements.

In absence of the project activity, the plant would meets it’s electricity requirement partly from MSEB Supply and partly from stand by DG sets (in case of MSEB failure) and it’steam (thermal energy) requirement for all the 330 days from the combustion of furnace oil. So, this co-generation project will help the proponents in conserving energy, cutting down on GHG emissions, as biomass is a carbon neutral fuel.

Contribution of Project Activity to Sustainable Development: •

Indian economy is highly dependent on “Coal” as fuel to generate energy and for production processes. Thermal power plants are the major consumers of coal in India and yet the basic electricity needs of a large section of population are not being met. This results in excessive demands for electricity and place immense stress on thenvironment. Changing coal consumption patterns will require a multi-pronged strategy focusing on demand, reducing wastage of energy and the optimum use of Renewable Energy (RE) sources.

Government of India has stipulated the following indicators for sustainable development in the interim approval guidelines1 for CDM projects. 1. Social well-being

1. Economic well-being
2. Environmental well-being
3. Technological well-being
4. Social well being:

The plant site is an isolated rural area where unemployment, poverty and other economic •

backwardness are prevailing; the project would lead to the development of the region. During civil works, a lot of construction work is to be taken place, which will generate •

      employment for local people around the plant site.       Other than these, there are various kinds of mechanical work, which would generate •

      employment opportunity on regular and permanent basis.       Since, the biomass resources are to be collected and transported to the plant site from the •

fields, opportunities are being generated for the rural people to collect and transport biomass. This will result in the enhanced employment of the people.

1. Economic well being:

      The project activity generates employment in the local area.       The project will also provide economic value to biomass, agricultural biomass etc.       It would provide stable and quality power to industry and aid in hassle free manufacturing of       products, also lead to reduced cost of production.       The project will create a business opportunity for local stakeholders such as bankers,       consultants, suppliers, manufacturers, contractors etc.

The main resources for power generation are bagasse/biomass which are collected from the sugarcane industries/farmers brought to the project, thus generate an additional revenue on account of supply of these to the project, which are otherwise being under-utilized / burnt so far with little or no commercial value. In other words, the plant is generating commercial value to agricultural residues enabling the farmers to get better price out of their produce augmenting their income. The above benefits due to project activity ensure that the project would contribute to the social and economic well being in the region.

Hence, the project contributes to the economic sustainability around the plant site, which is promotion of decentralization of economic power.

2. Environmental well being:

A cogeneration power plant based on renewable energy sources (bagasse) as fuel, does not affect the ecology, provided a few precautions are taken in the design of the plant. Project also reduces pollution in general. All the necessary measures are planned to be taken in the plant’s design for minimizing the impact on the ecology of the environment. ESP is proposed for the cogeneration plant steam generator, to contain the dust emission from the plant to a level of 150 mg/Nm³ during bagasse firing. The proposed project ensures the resource sustainability, which has been used. The biomassessment survey conducted for the assessment of supply of biomass / bagasse is positive and ensures that any sort of resource degradation is not taking place. The fuel bagasse is a by- product of sugar industry and hence the project is friendly for biodiversity.

Technological well being:

In view of the above the project participant consider that the project activity profoundly contributes to the sustainable development.